Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37875 | |
Entity Registrant Name | FB FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-1216058 | |
Entity Address, Address Line One | 211 Commerce Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37201 | |
City Area Code | 615 | |
Local Phone Number | 564-1212 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,929,958 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 193,301 | $ 91,333 |
Federal funds sold and reverse repurchase agreements | 115,140 | 128,087 |
Interest-bearing deposits in financial institutions | 309,849 | 1,578,320 |
Cash and cash equivalents | 618,290 | 1,797,740 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,482,171 | 1,678,525 |
Equity securities, at fair value | 2,962 | 3,367 |
Federal Home Loan Bank stock, at cost | 58,587 | 32,217 |
Loans held for sale, at fair value | 130,733 | 752,223 |
Loans | 9,105,016 | 7,604,662 |
Less: allowance for credit losses | 134,476 | 125,559 |
Net loans | 8,970,540 | 7,479,103 |
Premises and equipment, net | 143,277 | 143,739 |
Other real estate owned, net | 5,919 | 9,777 |
Operating lease right-of-use assets | 61,444 | 41,686 |
Interest receivable | 39,034 | 38,528 |
Mortgage servicing rights, at fair value | 171,427 | 115,512 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 13,407 | 16,953 |
Bank-owned life insurance | 74,976 | 73,519 |
Other assets | 242,754 | 172,236 |
Total assets | 12,258,082 | 12,597,686 |
Deposits | ||
Noninterest-bearing | 2,966,514 | 2,740,214 |
Interest-bearing checking | 2,648,161 | 3,418,666 |
Money market and savings | 3,228,337 | 3,546,936 |
Customer time deposits | 1,160,726 | 1,103,594 |
Brokered and internet time deposits | 2,344 | 27,487 |
Total deposits | 10,006,082 | 10,836,897 |
Borrowings | 722,940 | 171,778 |
Operating lease liabilities | 70,610 | 46,367 |
Accrued expenses and other liabilities | 177,196 | 109,949 |
Total liabilities | 10,976,828 | 11,164,991 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 46,926,377 and 47,549,241 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 46,926 | 47,549 |
Additional paid-in capital | 867,139 | 892,529 |
Retained earnings | 554,536 | 486,666 |
Accumulated other comprehensive (loss) income, net | (187,440) | 5,858 |
Total FB Financial Corporation common shareholders' equity | 1,281,161 | 1,432,602 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,281,254 | 1,432,695 |
Total liabilities and shareholders' equity | $ 12,258,082 | $ 12,597,686 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 46,926,377 | 47,549,241 |
Common stock, shares outstanding (in shares) | 46,926,377 | 47,549,241 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income: | ||||
Interest and fees on loans | $ 116,664 | $ 89,993 | $ 303,183 | $ 269,266 |
Interest on securities | ||||
Taxable | 6,843 | 3,989 | 18,762 | 10,652 |
Tax-exempt | 1,818 | 1,883 | 5,526 | 5,772 |
Other | 3,158 | 800 | 6,353 | 2,089 |
Total interest income | 128,483 | 96,665 | 333,824 | 287,779 |
Interest expense: | ||||
Interest expense on deposits | 13,133 | 6,596 | 25,186 | 24,341 |
Interest expense on borrowings | 3,966 | 1,593 | 6,901 | 5,823 |
Total interest expense | 17,099 | 8,189 | 32,087 | 30,164 |
Net interest income | 111,384 | 88,476 | 301,737 | 257,615 |
Provision for credit losses | 8,189 | (2,832) | 10,241 | (27,349) |
Provision for credit losses on unfunded commitments | 3,178 | 301 | 9,197 | (2,875) |
Net interest income after provisions for credit losses | 100,017 | 91,007 | 282,299 | 287,839 |
Noninterest income: | ||||
(Loss) gain from securities, net | (140) | 51 | (401) | 278 |
Gain (loss) on sales or write-downs of other real estate owned | 435 | 2,005 | (89) | 2,478 |
(Loss) gain from other assets | (6) | 177 | 76 | 162 |
Other income | 1,870 | 1,398 | 4,420 | 6,578 |
Total noninterest income | 22,592 | 59,006 | 97,198 | 175,036 |
Noninterest expenses: | ||||
Salaries, commissions and employee benefits | 51,028 | 62,818 | 165,652 | 189,756 |
Occupancy and equipment expense | 6,011 | 5,979 | 17,267 | 17,184 |
Legal and professional fees | 4,448 | 2,177 | 10,171 | 6,701 |
Data processing | 2,334 | 2,595 | 7,219 | 7,456 |
Amortization of core deposit and other intangibles | 1,108 | 1,344 | 3,546 | 4,178 |
Advertising | 2,050 | 4,200 | 8,114 | 10,012 |
Mortgage restructuring expense | 0 | 0 | 12,458 | 0 |
Other expense | 14,868 | 15,894 | 43,689 | 47,378 |
Total noninterest expense | 81,847 | 95,007 | 268,116 | 282,665 |
Income before income taxes | 40,762 | 55,006 | 111,381 | 180,210 |
Income tax expense | 8,931 | 9,716 | 24,961 | 38,744 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 31,831 | 45,290 | 86,420 | 141,466 |
Net income applicable to noncontrolling interest | 0 | 0 | 8 | 8 |
Net income applicable to FB Financial Corporation | $ 31,831 | $ 45,290 | $ 86,412 | $ 141,458 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.96 | $ 1.83 | $ 2.99 |
Diluted (in dollars per share) | $ 0.68 | $ 0.94 | $ 1.83 | $ 2.95 |
Mortgage banking income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 12,384 | $ 45,384 | $ 64,474 | $ 136,215 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 3,208 | 2,612 | 9,030 | 7,217 |
ATM and interchange fees | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 2,614 | 4,868 | 13,054 | 14,590 |
Investment services and trust income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 2,227 | $ 2,511 | $ 6,634 | $ 7,518 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 31,831 | $ 45,290 | $ 86,420 | $ 141,466 |
Other comprehensive loss, net of tax: | ||||
Net change in unrealized loss in available-for-sale securities, net of tax benefits of $(23,750), $(2,054), $(68,576) and $(4,708) | (67,353) | (5,818) | (194,761) | (15,380) |
Reclassification adjustment for gain on sale of securities included in net income, net of tax expenses of $0, $19, $1 and $23 | (1) | (56) | (3) | (67) |
Net change in unrealized gain in hedging activities, net of tax expenses of $145, $38, $517 and $173 | 409 | 106 | 1,466 | 489 |
Total other comprehensive loss, net of tax | (66,945) | (5,768) | (193,298) | (14,958) |
Comprehensive (loss) income applicable to FB Financial Corporation and noncontrolling interest | (35,114) | 39,522 | (106,878) | 126,508 |
Comprehensive income applicable to noncontrolling interest | 0 | 0 | 8 | 8 |
Comprehensive (loss) income applicable to FB Financial Corporation | $ (35,114) | $ 39,522 | $ (106,886) | $ 126,500 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net tax (benefits) expenses on net change in unrealized gain (loss) on available-for-sale securities | $ (23,750) | $ (2,054) | $ (68,576) | $ (4,708) |
Net tax expense (benefit) on reclassification adjustment for gain on sale of securities included in net income | 0 | (19) | (1) | (23) |
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | $ 145 | $ 38 | $ 517 | $ 173 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Total common shareholders' equity | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss, net | Noncontrolling interest |
Beginning balance at Dec. 31, 2020 | $ 1,291,382 | $ 1,291,289 | $ 47,222 | $ 898,847 | $ 317,625 | $ 27,595 | $ 93 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 141,466 | 141,458 | 141,458 | 8 | |||
Other comprehensive income (loss), net of taxes | (14,958) | (14,958) | (14,958) | ||||
Repurchase of common stock | (436) | (436) | (11) | (425) | |||
Stock based compensation expense | 8,065 | 8,065 | 6 | 8,059 | |||
Restricted stock units vested and distributed, net of shares withheld | (10,042) | (10,042) | 454 | (10,496) | |||
Shares issued under employee stock purchase program | 1,480 | 1,480 | 37 | 1,443 | |||
Dividends declared | (15,943) | (15,943) | (15,943) | ||||
Noncontrolling interest distribution | (8) | (8) | |||||
Ending balance at Sep. 30, 2021 | 1,401,006 | 1,400,913 | 47,708 | 897,428 | 443,140 | 12,637 | 93 |
Beginning balance at Jun. 30, 2021 | 1,371,814 | 1,371,721 | 47,361 | 902,782 | 403,173 | 18,405 | 93 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 45,290 | 45,290 | 45,290 | 0 | |||
Other comprehensive income (loss), net of taxes | (5,768) | (5,768) | (5,768) | ||||
Repurchase of common stock | (436) | (436) | (11) | (425) | |||
Stock based compensation expense | 2,884 | 2,884 | 1 | 2,883 | |||
Restricted stock units vested and distributed, net of shares withheld | (8,102) | (8,102) | 342 | (8,444) | |||
Shares issued under employee stock purchase program | 647 | 647 | 15 | 632 | |||
Dividends declared | (5,323) | (5,323) | (5,323) | ||||
Ending balance at Sep. 30, 2021 | 1,401,006 | 1,400,913 | 47,708 | 897,428 | 443,140 | 12,637 | 93 |
Beginning balance at Dec. 31, 2021 | 1,432,695 | 1,432,602 | 47,549 | 892,529 | 486,666 | 5,858 | 93 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 86,420 | 86,412 | 86,412 | 8 | |||
Other comprehensive income (loss), net of taxes | (193,298) | (193,298) | (193,298) | ||||
Repurchase of common stock | (32,743) | (32,743) | (795) | (31,948) | |||
Stock based compensation expense | 8,153 | 8,153 | 3 | 8,150 | |||
Restricted stock units vested and distributed, net of shares withheld | (2,635) | (2,635) | 142 | (2,777) | |||
Shares issued under employee stock purchase program | 1,212 | 1,212 | 27 | 1,185 | |||
Dividends declared | (18,542) | (18,542) | (18,542) | ||||
Noncontrolling interest distribution | (8) | (8) | |||||
Ending balance at Sep. 30, 2022 | 1,281,254 | 1,281,161 | 46,926 | 867,139 | 554,536 | (187,440) | 93 |
Beginning balance at Jun. 30, 2022 | 1,319,945 | 1,319,852 | 46,882 | 864,614 | 528,851 | (120,495) | 93 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 31,831 | 31,831 | 31,831 | 0 | |||
Other comprehensive income (loss), net of taxes | (66,945) | (66,945) | (66,945) | ||||
Stock based compensation expense | 2,533 | 2,533 | 1 | 2,532 | |||
Restricted stock units vested and distributed, net of shares withheld | (489) | (489) | 31 | (520) | |||
Shares issued under employee stock purchase program | 525 | 525 | 12 | 513 | |||
Dividends declared | (6,146) | (6,146) | (6,146) | ||||
Ending balance at Sep. 30, 2022 | $ 1,281,254 | $ 1,281,161 | $ 46,926 | $ 867,139 | $ 554,536 | $ (187,440) | $ 93 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.39 | $ 0.33 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||||
Net income attributable to FB Financial Corporation and noncontrolling interest | $ 31,831 | $ 45,290 | $ 86,420 | $ 141,466 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization of fixed assets and software | 6,105 | 6,288 | ||
Amortization of core deposit and other intangibles | 3,546 | 4,178 | ||
Capitalization of mortgage servicing rights | (19,523) | (31,382) | ||
Net change in fair value of mortgage servicing rights | (8,296) | 239 | (36,392) | 788 |
Stock-based compensation expense | 8,153 | 8,065 | ||
Provision for credit losses | 8,189 | (2,832) | 10,241 | (27,349) |
Provision for credit losses on unfunded commitments | 3,178 | 301 | 9,197 | (2,875) |
Provision for mortgage loan repurchases | (800) | 0 | (1,989) | (266) |
Amortization of premiums and accretion of discounts on acquired loans, net | 1,339 | 127 | ||
Amortization of premiums and accretion of discounts on securities, net | 5,178 | 6,521 | ||
Loss (gain) from securities, net | 140 | (51) | 401 | (278) |
Originations of loans held for sale | (2,129,129) | (4,926,390) | ||
Repurchases of loans held for sale | (194) | (384) | ||
Proceeds from sale of loans held for sale | 2,796,313 | 4,939,323 | ||
Gain on sale and change in fair value of loans held for sale | (43,648) | (126,983) | ||
Net loss (gain) or write-downs of other real estate owned | (435) | (2,005) | 89 | (2,478) |
Gain on other assets | 6 | (177) | (76) | (162) |
Provision for deferred income taxes | 3,418 | 7,366 | 15,879 | 20,904 |
Earnings on bank-owned life insurance | (1,099) | (1,156) | ||
Changes in: | ||||
Operating leases | 4,485 | (781) | ||
Other assets and interest receivable | (23,220) | (1,352) | ||
Accrued expenses and other liabilities | 51,583 | (46,867) | ||
Net cash provided by (used in) operating activities | 743,659 | (41,043) | ||
Activity in available-for-sale securities: | ||||
Sales | 1,218 | 8,855 | ||
Maturities, prepayments and calls | 44,352 | 68,126 | 170,701 | 216,032 |
Purchases | (242,639) | (645,658) | ||
Net change in loans | (1,523,815) | (177,953) | ||
Net change in commercial loans held for sale | 43,006 | 116,158 | ||
Sales of FHLB stock | 0 | 4,294 | ||
Purchases of FHLB stock | (26,370) | (663) | ||
Purchases of premises and equipment | (6,060) | (5,193) | ||
Proceeds from the sale of premises and equipment | 875 | 0 | ||
Proceeds from the sale of other real estate owned | 4,335 | 4,173 | 4,753 | 8,834 |
Proceeds from the sale of other assets | 4 | 0 | ||
Net cash used in investing activities | (1,578,327) | (475,294) | ||
Cash flows from financing activities: | ||||
Net (decrease) increase in demand deposits | (852,629) | 863,646 | ||
Net increase (decrease) in time deposits | 31,989 | (249,765) | ||
Net (decrease) increase in securities sold under agreements to repurchase | (11,708) | 9,531 | ||
Net increase in short-term FHLB advances | 540,000 | 0 | ||
Payments on subordinated debt | 0 | (60,000) | ||
Amortization of issuance costs and (accretion) of subordinated debt fair value premium, net | 291 | (79) | ||
Payments on other borrowings | 0 | (15,000) | ||
Share based compensation withholding payments | (2,635) | (10,042) | ||
Net proceeds from sale of common stock under employee stock purchase program | 1,212 | 1,480 | ||
Repurchase of common stock | (32,743) | (436) | ||
Dividends paid on common stock | (18,401) | (15,617) | ||
Dividend equivalent payments made upon vesting of equity compensation | (150) | (707) | ||
Noncontrolling interest distribution | (8) | (8) | ||
Net cash (used in) provided by financing activities | (344,782) | 523,003 | ||
Net change in cash and cash equivalents | (1,179,450) | 6,666 | ||
Cash and cash equivalents at beginning of the period | 1,797,740 | 1,317,898 | ||
Cash and cash equivalents at end of the period | 618,290 | 1,324,564 | 618,290 | 1,324,564 |
Supplemental cash flow information: | ||||
Interest paid | 31,322 | 34,542 | ||
Taxes paid | 808 | 55,609 | ||
Supplemental noncash disclosures: | ||||
Transfers from loans to other real estate owned | 421 | 349 | 984 | 4,945 |
Loans provided for sales of other real estate owned | 0 | 152 | 0 | 685 |
Transfers from loans to loans held for sale | 42,997 | 10,408 | ||
Transfers from loans held for sale to loans | 23,183 | 52,151 | ||
Rebooked GNMA loans under optional repurchase program | 26,485 | 0 | ||
Trade date payable - securities | 0 | 5,996 | ||
Dividends declared not paid on restricted stock units | $ 173 | $ 340 | 173 | 340 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 24,605 | $ 839 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: Overview and presentation FB Financial Corporation (the “Company”) is a financial holding company headquartered in Nashville, Tennessee. The Company operates through its wholly-owned subsidiaries, FirstBank (the "Bank") and FirstBank Risk Management, Inc. As of September 30, 2022, the Bank had 82 full-service branches throughout Tennessee, Alabama, southern Kentucky and north Georgia, and a national mortgage business with office locations across the Southeast, which primarily originates loans to be sold in the secondary market. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with U.S. GAAP interim reporting requirements and general banking industry guidelines, and therefore, do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported results of operations for the reporting periods and the related disclosures. Although management's estimates contemplate current conditions and how they are expected to change in the future, it is reasonably possible that actual conditions could vary from those anticipated, which could affect the Company's financial condition and results of operations. Actual results could differ significantly from those estimates. Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity. Earnings per share Basic EPS excludes dilution and is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic earnings per common share calculation: Net income applicable to FB Financial Corporation $ 31,831 $ 45,290 $ 86,412 $ 141,458 Dividends paid on and undistributed earnings allocated to participating securities — — — — Earnings available to common shareholders $ 31,831 $ 45,290 $ 86,412 $ 141,458 Weighted average basic shares outstanding 46,908,520 47,412,214 47,181,853 47,345,984 Basic earnings per common share $ 0.68 $ 0.96 $ 1.83 $ 2.99 Diluted earnings per common share: Earnings available to common shareholders $ 31,831 $ 45,290 $ 86,412 $ 141,458 Weighted average basic shares outstanding 46,908,520 47,412,214 47,181,853 47,345,984 Weighted average diluted shares contingently issuable (1) 116,091 594,933 133,247 637,510 Weighted average diluted shares outstanding 47,024,611 48,007,147 47,315,100 47,983,494 Diluted earnings per common share $ 0.68 $ 0.94 $ 1.83 $ 2.95 (1) Excludes 15,408 and 11,888 restricted stock units outstanding considered to be antidilutive for the three and nine months ended September 30, 2022 and 15,974 and 20,448 restricted stock units outstanding considered to be antidilutive for three and nine months ended September 30, 2021. Recently modified accounting policies: The Company did not modify or adopt any new accounting policies during the three and nine months ended September 30, 2022 that were not disclosed in the Company's 2021 audited consolidated financial statements included on Form 10-K, other than as described below. During the three months ended March 31, 2022, the Company appended the following language to the below referenced existing accounting policy related to derivative financial instruments and hedging activities described in Note 1 of the Company's 2021 Annual Report on Form 10-K as a result of entering into designated fair value hedges during the period. (A) Derivative financial instruments and hedging activities: The Company enters into fair value hedge relationships to mitigate the effect of changing interest rates on the fair values of fixed rate securities and loans. The gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. During the three months ended September 30, 2022, the Company modified the below referenced existing accounting policy. (B) Loans held for sale: Mortgage loans held for sale Mortgage loans originated and intended for sale in the secondary market are carried at fair value as permitted under the guidance in ASC 825, “Financial Instruments” (“ASC 825”). The change in fair value of both mortgage loans held for sale and the related derivative instruments used to hedge exposure to market related risks are recorded in “Mortgage banking income” in the Consolidated Statements of Income. Gains and losses on sale are recognized at the time the loan is closed. Pass through origination costs and related loan fees are also included in “Mortgage banking income”. Periodically, the Company transfers mortgage loans originated for sale in the secondary markets into the loan HFI portfolio based on current market conditions, overall secondary marketability and status of the loan. The loans are transferred into the portfolio at fair value at the date of transfer. Additionally, occasionally the Company will transfer loans from the held for investment portfolio into loans held for sale. At the time of the transfer, loans are marked to fair value through the allowance for credit losses and reclassified to loans held for sale. The Company sells mortgage loans originated for sale on the secondary market to GNMA and retains servicing rights after sale. Under the GNMA optional repurchase program, financial institutions are permitted to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be recorded on the balance sheet, regardless of whether the Company intends to exercise the buy-back option if the buyback options provides the transferor a more-than-trivial benefit. Prior to September 30, 2022, the Company deemed there was not a more than trivial benefit associated with repurchasing these loans based on quarterly analyses and as such, these were not rebooked to the balance sheet. During the quarter ended September 30, 2022, the Company revised its accounting estimate by applying the removal of accounts provision regardless of whether the transferor is provided a more-than-trivial benefit to align with developing industry best practice and regulatory expectations. Upon application of the change, as of September 30, 2022 the Company recorded $26,485 of optional rights to repurchase delinquent GNMA loans. The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825. These loans are reported at current unpaid principal balance in LHFS on the consolidated balance sheets with the offsetting liability being reported in borrowings. These are considered nonperforming assets as the Company does not earn any interest on the unexercised option to repurchase these loans. This change in accounting estimate was applied prospectively without modification to prior periods. Recently adopted accounting standards: The Company did not adopt any new accounting standards that were not disclosed in the Company's 2021 audited consolidated financial statements included on Form 10-K. Newly issued not yet effective accounting standards: In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The FASB is issuing this update to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, to amend a related illustrative example, and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The ASU becomes effective January 1, 2024 and the Company is evaluating the potential impact of this standard on its consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method", to expand the current single-layer method of electing hedge accounting to allow multiple hedged layers of a single closed portfolio under the method. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted on any date on or after the issuance of ASU No. 2022-01 for any entity that has adopted the amendments in ASU No.2017-12 for the corresponding period. Adoption of this update will not have an impact on the Company's consolidated financial statements or related disclosures. Additionally, in March 2022, the FASB issued ASU 2022-02, "'Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the effect that ASU 2022-02 will have on its consolidated financial statements and related disclosures. In March 2022, the SEC released SAB 121 to add interpretive guidance for entities to consider when they have obligations to safeguard crypto-assets held for clients. The new guidance requires reporting entities who allow clients to transact in crypto-assets and act as a custodian to record a liability with a corresponding asset regardless of whether they control the crypto-asset. The crypto-asset will need to be marked at fair value for each reporting period. The new guidance requires disclosures in the footnotes to address the amount of crypto-assets reported, and the safeguarding and recordkeeping of the assets. The guidance in this update requires that reporting companies implement SAB 121 no later than the financial statements covering the first interim or annual period ending after June 15, 2022, with retrospective application back to the beginning of the fiscal year. During the three months ended March 31, 2022, the Company became a founding member of the USDF Consortium (the "Consortium"), which plans to utilize blockchain and technology to streamline peer-to-peer financial transactions. The USDF Consortium is a membership-based association of insured depository institutions with a mission to build a network of banks to further the adoption and interoperability of a bank-minted tokenized deposit. While the Company does not currently hold or facilitate transactions with crypto-assets, the Company is evaluating the potential future financial statement and disclosure impact from adopting this guidance when it becomes applicable based on the Company's crypto-asset activities. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide relief for companies preparing for discontinuation of interest rates based on LIBOR. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued. ASU 2020-04 also provides for a onetime sale and/or transfer to AFS or trading to be made for HTM debt securities that both reference an eligible reference rate and were classified as HTM before January 1, 2020. ASU 2020-04 was effective for all entities as of March 12, 2020 and through December 31, 2022. Companies can apply the ASU as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The guidance requires companies to apply the guidance prospectively to contract modifications and hedging relationships while the one-time election to sell and/or transfer debt securities classified as HTM may be made any time after March 12, 2020. Our LIBOR Transition Committee was established to transition from LIBOR to alternative rates and has continued its efforts consistent with industry timelines. As part of these efforts, during the fourth quarter of 2021, we ceased utilization of LIBOR as an index in newly originated loans or loans that are refinanced. Additionally, we identified existing products that utilize LIBOR and are reviewing contractual language to facilitate the transition to alternative reference rates. ASU 2020-04 and ASU 2021-01 are not expected to have a material impact on our consolidated financial statements. Subsequent events The Company has evaluated, for consideration of recognition or disclosure, subsequent events that occurred through the date of issuance of these financial statements. The Company has determined that there were no subsequent events that occurred after September 30, 2022, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment securities: The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income at September 30, 2022 and December 31, 2021: September 30, 2022 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 45,161 $ — $ (5,330) $ — $ 39,831 Mortgage-backed securities - residential 1,257,521 — (199,758) — 1,057,763 Mortgage-backed securities - commercial 19,453 — (1,606) — 17,847 Municipal securities 297,451 100 (45,408) — 252,143 U.S. Treasury securities 113,198 — (5,901) — 107,297 Corporate securities 8,001 — (711) — 7,290 Total $ 1,740,785 $ 100 $ (258,714) $ — $ 1,482,171 December 31, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 34,023 $ 18 $ (171) $ — $ 33,870 Mortgage-backed securities - residential 1,281,285 6,072 (17,985) — 1,269,372 Mortgage-backed securities - commercial 15,024 272 (46) — 15,250 Municipal securities 322,052 16,718 (160) — 338,610 U.S. Treasury securities 14,914 — (6) — 14,908 Corporate securities 6,500 40 (25) — 6,515 Total $ 1,673,798 $ 23,120 $ (18,393) $ — $ 1,678,525 The components of amortized cost for debt securities on the consolidated balance sheets excludes accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of September 30, 2022 and December 31, 2021, total accrued interest receivable on debt securities was $5,535 and $5,051, respectively. As of September 30, 2022 and December 31, 2021, the Company had $2,962 and $3,367, in marketable equity securities recorded at fair value, respectively. Securities pledged at September 30, 2022 and December 31, 2021 had carrying amounts of $1,213,747 and $1,226,646, respectively, and were pledged to secure a Federal Reserve Bank line of credit, public deposits and repurchase agreements. There were no holdings of securities of any one issuer, other than U.S. Government sponsored enterprises, in an amount greater than 10% of shareholders' equity during any period presented. Investment securities transactions are recorded as of the trade date. At September 30, 2022 and December 31, 2021, there were no trade date receivables nor payables that related to sales or purchases settled after period end. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2022 and December 31, 2021 are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgage underlying the security may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following summary. September 30, December 31, 2022 2021 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 4,011 $ 3,962 $ 21,851 $ 21,884 Due in one to five years 155,637 146,428 54,847 55,307 Due in five to ten years 62,157 56,759 45,714 46,975 Due in over ten years 242,006 199,412 255,077 269,737 463,811 406,561 377,489 393,903 Mortgage-backed securities - residential 1,257,521 1,057,763 1,281,285 1,269,372 Mortgage-backed securities - commercial 19,453 17,847 15,024 15,250 Total debt securities $ 1,740,785 $ 1,482,171 $ 1,673,798 $ 1,678,525 Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Proceeds from sales $ — $ 8,855 $ 1,218 $ 8,855 Proceeds from maturities, prepayments and calls 44,352 68,126 170,701 216,032 Gross realized gains 1 76 4 91 Gross realized losses — 1 — 1 Additionally, changes in fair value and the sale of equity securities with readily determinable fair values resulted in a net loss of $141 and of $24 for the three months ended September 30, 2022 and 2021, respectively, and in a net loss of $405 and gain of $188 for the nine months ended September 30, 2022 and 2021, respectively. The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: September 30, 2022 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. government agency securities $ 33,269 $ (4,207) $ 6,562 $ (1,123) $ 39,831 $ (5,330) Mortgage-backed securities - residential 570,554 (84,615) 487,209 (115,143) 1,057,763 (199,758) Mortgage-backed securities - commercial 16,709 (1,354) 1,138 (252) 17,847 (1,606) Municipal securities 238,067 (42,452) 8,533 (2,956) 246,600 (45,408) U.S. Treasury securities 107,297 (5,901) — — 107,297 (5,901) Corporate securities 7,290 (711) — — 7,290 (711) Total $ 973,186 $ (139,240) $ 503,442 $ (119,474) $ 1,476,628 $ (258,714) December 31, 2021 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 18,360 $ (171) $ — $ — $ 18,360 $ (171) Mortgage-backed securities - residential $ 871,368 $ (14,295) $ 102,799 $ (3,690) $ 974,167 $ (17,985) Mortgage-backed securities - commercial 7,946 (46) — — 7,946 (46) Municipal securities 11,414 (160) — — 11,414 (160) U.S. Treasury securities 14,908 (6) — — 14,908 (6) Corporate securities 4,119 (25) — — 4,119 (25) Total $ 928,115 $ (14,703) $ 102,799 $ (3,690) $ 1,030,914 $ (18,393) As of September 30, 2022 and December 31, 2021, the Company’s securities portfolio consisted of 504 and 511 securities, 487 and 80 of which were in an unrealized loss position, respectively. During the three months ended September 30, 2022, the Company's available-for-sale debt securities portfolio unrealized value declined $91,104 to an unrealized loss position of $258,614 as of September 30, 2022 from an unrealized loss position of $167,510 as of June 30, 2022. During the nine months ended September 30, 2022, the Company's available-for-sale debt securities portfolio unrealized value declined $263,341 from an unrealized gain position of $4,727 as of December 31, 2021. During the three months ended September 30, 2021, the Company's available-for-sale debt securities portfolio unrealized value decreased $7,947 to an unrealized gain position of $14,374 as of September 30, 2021 from an unrealized gain position of $22,321 as of June 30, 2021. During the nine months ended September 30, 2021, the Company's available-for-sale debt securities portfolio unrealized value declined $20,178 from an unrealized gain position of $34,552 as of December 31, 2020. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Loans and allowance for credit losses: Loans outstanding as of September 30, 2022 and December 31, 2021, by class of financing receivable are as follows: September 30, December 31, 2022 2021 Commercial and industrial (1) $ 1,534,159 $ 1,290,565 Construction 1,679,497 1,327,659 Residential real estate: 1-to-4 family mortgage 1,545,252 1,270,467 Residential line of credit 460,774 383,039 Multi-family mortgage 394,366 326,551 Commercial real estate: Owner-occupied 1,158,343 951,582 Non-owner occupied 1,954,219 1,730,165 Consumer and other 378,406 324,634 Gross loans 9,105,016 7,604,662 Less: Allowance for credit losses (134,476) (125,559) Net loans $ 8,970,540 $ 7,479,103 (1) Includes $851 and $3,990 of loans originated as part of the Paycheck Protection Program as of September 30, 2022 and December 31, 2021, respectively. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans. As of September 30, 2022 and December 31, 2021, $865,616 and $1,136,294, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,665,345 and $1,581,673, respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line of credit. Additionally, as of September 30, 2022 and December 31, 2021, qualifying loans of $3,012,814 and $2,440,097, respectively, were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. The components of amortized cost for loans on the consolidated balance sheets exclude accrued interest receivable as the Company presents accrued interest receivable separately on the balance sheet. As of September 30, 2022 and December 31, 2021, accrued interest receivable on loans held for investment was $32,247 and $31,676, respectively. Allowance for Credit Losses The Company calculates its expected credit loss using a lifetime loss rate methodology. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. The Company's loss rate models estimate the lifetime loss rate for pools of loans by combining the calculated loss rate based on each variable within the model (including the macroeconomic variables). The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; and loans with other unique risk characteristics. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. Reasonably expected TDRs and TDRs use the same methodology. In cases where the expected credit loss can only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance is measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. The Company performed qualitative evaluations within the Company's established qualitative framework, assessing the impact of the current economic outlook (including uncertainty due to inflation, negative economic forecasts, predicted Federal Reserve rate increases, status of federal government stimulus programs, and other considerations). The increase in estimated required reserve during the three and nine months ended September 30, 2022 was a result of increased loan growth and a tightening monetary policy environment both of which were incorporated into the Company's reasonable and supportable forecasts. Qualitative adjustments increased the reserve on loans with commercial exposure to address elevated risk in these assets not covered by the model. Loss rates on residential backed loans were qualitatively adjusted downwards, addressing the relative strength of asset values in the Company's predominant markets. Qualitative factors also included weighted projections that the economy may be nearing a recession. The following tables provide the changes in the allowance for credit losses by class of financing receivable for the three and nine months ended September 30, 2022 and 2021: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three months ended September 30, 2022 Beginning balance - June 30, 2022 $ 10,191 $ 38,383 $ 21,398 $ 6,875 $ 6,503 $ 7,329 $ 22,536 $ 13,057 $ 126,272 Provision for credit losses 5 3,044 3,975 77 (629) 688 247 782 8,189 Recoveries of loans previously charged-off 342 — 13 — — 51 — 70 476 Loans charged off — — (20) — — — — (441) (461) Ending balance - September 30, 2022 $ 10,538 $ 41,427 $ 25,366 $ 6,952 $ 5,874 $ 8,068 $ 22,783 $ 13,468 $ 134,476 Nine Months Ended September 30, 2022 Beginning balance - December 31, 2021 $ 15,751 $ 28,576 $ 19,104 $ 5,903 $ 6,976 $ 12,593 $ 25,768 $ 10,888 $ 125,559 Provision for credit losses (4,784) 12,840 6,266 1,032 (1,102) (4,601) (2,985) 3,575 10,241 Recoveries of loans previously charged-off 1,326 11 39 17 — 76 — 635 2,104 Loans charged off (1,755) — (43) — — — — (1,630) (3,428) Ending balance - September 30, 2022 $ 10,538 $ 41,427 $ 25,366 $ 6,952 $ 5,874 $ 8,068 $ 22,783 $ 13,468 $ 134,476 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended September 30, 2021 Beginning balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 Provision for loan losses 3,203 (3,080) (2,677) (952) (1,462) 7,665 (6,450) 921 (2,832) Recoveries of loans previously charged-off 19 3 33 1 — 4 — 169 229 Loans charged off (2,175) (1) — — — — — (438) (2,614) Ending balance - September 30, 2021 $ 14,838 $ 29,760 $ 17,028 $ 5,765 $ 12,013 $ 12,376 $ 36,406 $ 11,260 $ 139,446 Nine Months Ended September 30, 2021 Beginning balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 Provision for credit losses 2,667 (28,690) (2,141) (4,767) 4,839 7,384 (7,741) 1,100 (27,349) Recoveries of loans previously charged-off 235 3 98 16 — 143 — 554 1,049 Loans charged off (2,812) (30) (149) (18) — — — (1,634) (4,643) Ending balance - $ 14,838 $ 29,760 $ 17,028 $ 5,765 $ 12,013 $ 12,376 $ 36,406 $ 11,260 $ 139,446 Credit Quality - Commercial Loans The Company categorizes commercial loan types into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes commercial loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category. Special Mention. Loans rated Special Mention are those that have potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk. Classified. Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans classified as Doubtful, which have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes. During the nine months ended September 30, 2022, the Company revised the presentation of the below credit quality vintage tables without change to accounting or credit policies. The updated presentation disaggregates between commercial and consumer loan types with consumer loans reported as either performing or nonperforming based on their delinquency and accrual status. As such, the tables presented below as of December 31, 2021 have been revised to align with current period presentation. The following tables present the credit quality of our commercial loan portfolio by year of origination as of September 30, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. As of September 30, 2022 Commercial Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 284,399 $ 220,172 $ 83,831 $ 96,337 $ 40,939 $ 63,998 $ 718,260 $ 1,507,936 Special Mention 26 355 — 375 151 — 2,732 3,639 Classified 65 1,220 2,106 1,593 451 9,015 8,134 22,584 Total 284,490 221,747 85,937 98,305 41,541 73,013 729,126 1,534,159 Construction Pass 570,166 569,425 215,636 71,706 18,027 46,794 183,738 1,675,492 Special Mention 428 — 18 — 7 2,530 — 2,983 Classified — 822 — — — — 200 1,022 Total 570,594 570,247 215,654 71,706 18,034 49,324 183,938 1,679,497 Residential real estate: Multi-family mortgage Pass 117,654 163,283 33,326 30,470 4,201 35,279 8,966 393,179 Special Mention — — — — — — — — Classified — — — — — 1,187 — 1,187 Total 117,654 163,283 33,326 30,470 4,201 36,466 8,966 394,366 Commercial real estate: Owner occupied Pass 215,250 231,038 117,751 159,546 78,881 266,021 66,718 1,135,205 Special Mention 103 1,293 — 1,470 2,294 390 — 5,550 Classified — — 241 5,992 1,282 9,418 655 17,588 Total 215,353 232,331 117,992 167,008 82,457 275,829 67,373 1,158,343 Non-owner occupied Pass 411,612 428,087 138,590 171,747 225,519 505,370 56,718 1,937,643 Special Mention — 1,015 — — 82 — — 1,097 Classified — — — 150 3,329 12,000 — 15,479 Total 411,612 429,102 138,590 171,897 228,930 517,370 56,718 1,954,219 Total commercial loans Pass 1,599,081 1,612,005 589,134 529,806 367,567 917,462 1,034,400 6,649,455 Special Mention 557 2,663 18 1,845 2,534 2,920 2,732 13,269 Classified 65 2,042 2,347 7,735 5,062 31,620 8,989 57,860 Total commercial loans $ 1,599,703 $ 1,616,710 $ 591,499 $ 539,386 $ 375,163 $ 952,002 $ 1,046,121 $ 6,720,584 As of December 31, 2021 Commercial Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 273,232 $ 95,279 $ 140,938 $ 52,162 $ 33,997 $ 57,020 $ 596,667 $ 1,249,295 Special Mention 79 9 949 632 3 1,519 12,367 15,558 Classified 918 2,391 2,376 3,089 3,370 6,425 7,143 25,712 Total 274,229 97,679 144,263 55,883 37,370 64,964 616,177 1,290,565 Construction Pass 677,258 280,828 135,768 23,916 15,313 67,818 117,176 1,318,077 Special Mention 62 184 — — 1,208 1,384 — 2,838 Classified — — 2,922 2,882 3 737 200 6,744 Total 677,320 281,012 138,690 26,798 16,524 69,939 117,376 1,327,659 Residential real estate: Multi-family mortgage Pass 166,576 32,242 64,345 7,124 5,602 38,526 10,891 325,306 Special Mention — — — — — — — — Classified — — — — — 1,245 — 1,245 Total 166,576 32,242 64,345 7,124 5,602 39,771 10,891 326,551 Commercial real estate: Owner occupied Pass 170,773 131,471 174,257 83,698 69,939 236,998 57,123 924,259 Special Mention — — 1,502 3,541 885 2,555 213 8,696 Classified — — 3,102 768 3,295 9,616 1,846 18,627 Total 170,773 131,471 178,861 88,007 74,119 249,169 59,182 951,582 Non-owner occupied Pass 462,478 154,048 165,917 264,855 170,602 414,859 46,541 1,679,300 Special Mention — — 3,747 3,388 — 969 — 8,104 Classified — — 1,898 23,849 1,506 15,508 — 42,761 Total 462,478 154,048 171,562 292,092 172,108 431,336 46,541 1,730,165 Total commercial loans Pass 1,750,317 693,868 681,225 431,755 295,453 815,221 828,398 5,496,237 Special Mention 141 193 6,198 7,561 2,096 6,427 12,580 35,196 Classified 918 2,391 10,298 30,588 8,174 33,531 9,189 95,089 Total commercial loans $ 1,751,376 $ 696,452 $ 697,721 $ 469,904 $ 305,723 $ 855,179 $ 850,167 $ 5,626,522 Credit Quality - Consumer Loans For consumer and residential loan classes, the company primarily evaluates credit quality based on delinquency and accrual status of the loan, credit documentation and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following tables present the credit quality by classification (performing or nonperforming) of our consumer loan portfolio by year of origination as of September 30, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. As of September 30, 2022 Consumer Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing 507,621 454,839 166,905 96,216 72,019 228,305 — 1,525,905 Nonperforming 1,039 4,379 3,940 2,020 1,731 6,238 — 19,347 Total 508,660 459,218 170,845 98,236 73,750 234,543 — 1,545,252 Residential line of credit Performing — — — — — — 458,894 458,894 Nonperforming — — — — — — 1,880 1,880 Total — — — — — — 460,774 460,774 Consumer and other Performing 107,264 61,291 44,898 32,694 28,416 86,524 9,564 370,651 Nonperforming 81 1,061 1,365 936 1,591 2,720 1 7,755 Total 107,345 62,352 46,263 33,630 30,007 89,244 9,565 378,406 Total consumer loans Performing 614,885 516,130 211,803 128,910 100,435 314,829 468,458 2,355,450 Nonperforming 1,120 5,440 5,305 2,956 3,322 8,958 1,881 28,982 Total consumer loans $ 616,005 $ 521,570 $ 217,108 $ 131,866 $ 103,757 $ 323,787 $ 470,339 $ 2,384,432 As of December 31, 2021 Consumer Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing 521,533 204,690 121,775 100,164 109,087 199,262 — 1,256,511 Nonperforming 1,232 3,734 977 2,429 1,765 3,819 — 13,956 Total 522,765 208,424 122,752 102,593 110,852 203,081 — 1,270,467 Residential line of credit Performing — — — — — — 381,303 381,303 Nonperforming — — — — — — 1,736 1,736 Total — — — — — — 383,039 383,039 Consumer and other Performing 82,910 55,123 38,281 32,893 21,856 74,248 14,478 319,789 Nonperforming 199 345 545 1,352 861 1,496 47 4,845 Total 83,109 55,468 38,826 34,245 22,717 75,744 14,525 324,634 Total consumer loans Performing 604,443 259,813 160,056 133,057 130,943 273,510 395,781 1,957,603 Nonperforming 1,431 4,079 1,522 3,781 2,626 5,315 1,783 20,537 Total consumer loans $ 605,874 $ 263,892 $ 161,578 $ 136,838 $ 133,569 $ 278,825 $ 397,564 $ 1,978,140 Non-accrual and Past Due Loans Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. The following tables represent an analysis of the aging by class of financing receivable as of September 30, 2022 and December 31, 2021: September 30, 2022 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 1,812 $ 38 $ 1,730 $ 1,530,579 $ 1,534,159 Construction 1,916 — — 1,677,581 1,679,497 Residential real estate: 1-to-4 family mortgage 16,994 13,767 5,580 1,508,911 1,545,252 Residential line of credit 542 209 1,671 458,352 460,774 Multi-family mortgage — — 44 394,322 394,366 Commercial real estate: Owner occupied 982 — 4,873 1,152,488 1,158,343 Non-owner occupied 293 — 6,960 1,946,966 1,954,219 Consumer and other 8,057 1,988 5,767 362,594 378,406 Total $ 30,596 $ 16,002 $ 26,625 $ 9,031,793 $ 9,105,016 December 31, 2021 30-89 days 90 days or Non-accrual Loans current on payments and accruing interest Total Commercial and industrial $ 1,030 $ 63 $ 1,520 $ 1,287,952 $ 1,290,565 Construction 4,852 718 3,622 1,318,467 1,327,659 Residential real estate: 1-to-4 family mortgage 11,007 9,363 4,593 1,245,504 1,270,467 Residential line of credit 319 — 1,736 380,984 383,039 Multi-family mortgage — — 49 326,502 326,551 Commercial real estate: Owner occupied 1,417 — 6,710 943,455 951,582 Non-owner occupied 427 — 14,084 1,715,654 1,730,165 Consumer and other 7,398 1,591 3,254 312,391 324,634 Total $ 26,450 $ 11,735 $ 35,568 $ 7,530,909 $ 7,604,662 The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of September 30, 2022 and December 31, 2021 by class of financing receivable. September 30, 2022 Non-accrual Non-accrual Related Commercial and industrial $ 1,228 $ 502 $ 3 Residential real estate: 1-to-4 family mortgage 1,537 4,043 73 Residential line of credit 1,070 601 9 Multi-family mortgage — 44 1 Commercial real estate: Owner occupied 4,710 163 1 Non-owner occupied 6,751 209 4 Consumer and other — 5,767 291 Total $ 15,296 $ 11,329 $ 382 December 31, 2021 Non-accrual Non-accrual Related Commercial and industrial $ 1,085 $ 435 $ 6 Construction 2,882 740 99 Residential real estate: 1-to-4 family mortgage 378 4,215 60 Residential line of credit 797 939 11 Multi-family mortgage — 49 2 Commercial real estate: Owner occupied 5,346 1,364 206 Non-owner occupied 13,898 186 7 Consumer and other — 3,254 164 Total $ 24,386 $ 11,182 $ 555 The following presents interest income recognized on non-accrual loans for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Commercial and industrial $ 26 $ 190 $ 163 $ 523 Construction 5 75 31 105 Residential real estate: 1-to-4 family mortgage 78 114 185 199 Residential line of credit 37 197 98 242 Multi-family mortgage — — 2 2 Commercial real estate: Owner occupied 61 187 149 419 Non-owner occupied 89 123 235 353 Consumer and other 113 75 182 130 Total $ 409 $ 961 $ 1,045 $ 1,973 Accrued interest receivable written off as an adjustment to interest income amounted to $151 and $63 for the three months ended September 30, 2022 and 2021, respectively, and $458 and $660 for the nine months ended September 30, 2022 and 2021, respectively. Troubled debt restructurings As of September 30, 2022 and December 31, 2021, the Company had a recorded investment in TDRs of $14,959 and $32,435, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate to borrowers experiencing financial difficulty. Of these loans, $7,592 and $11,084 were classified as non-accrual loans as of September 30, 2022 and December 31, 2021, respectively. The Company has calculated $258 and $1,245 in allowances for credit losses on TDRs as of September 30, 2022 and December 31, 2021, respectively. There were no significant unfunded loan commitments to extend additional funds on troubled debt restructurings as of September 30, 2022 or December 31, 2021. The following tables present the financial effect of TDRs recorded during the periods indicated: Three Months Ended September 30, 2022 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 207 $ 117 $ — Residential real estate: 1-to-4 family mortgage 1 $ 252 $ 568 $ — Total 2 $ 459 $ 685 $ — Nine Months Ended September 30, 2022 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 262 $ 172 $ — Residential real estate: 1-to-4 family mortgage 2 332 648 — Residential line of credit 1 49 49 — Consumer and other 1 22 22 — Total 6 $ 665 $ 891 $ — Three Months Ended September 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 134 134 — Total 1 $ 134 $ 134 $ — Nine Months Ended September 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 5 $ 13,162 $ 13,162 $ — Commercial real estate: Owner occupied 4 3,550 3,550 — Non-owner occupied 1 11,997 11,997 — Residential real estate: 1-4 family mortgage 3 945 945 — Residential line of credit 1 11 11 — Total 14 $ 29,665 $ 29,665 $ — Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the nine months ended September 30, 2022. Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the three and nine months ended September 30, 2022. Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $305 during the three and nine months ended September 30, 2021. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The terms of certain other loans were modified during the three and nine months ended September 30, 2022 and 2021 that did not meet the definition of a TDR. The modification of these loans usually involve either a modification of the terms of a loan to borrowers who are not experiencing financial difficulties or an insignificant delay in payments. Collateral Dependent Loans For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status. September 30, 2022 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 1,228 $ 787 $ 2,015 $ — Residential real estate: 1-to-4 family mortgage 1,192 — 1,192 205 Residential line of credit 1,069 — 1,069 — Commercial real estate: Owner occupied 5,823 — 5,823 — Non-owner occupied 6,751 — 6,751 — Consumer and other 139 — 139 — Total $ 16,202 $ 787 $ 16,989 $ 205 December 31, 2021 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 799 $ 1,090 $ 1,889 $ — Construction 3,580 — 3,580 92 Residential real estate: 1-to-4 family mortgage 338 — 338 — Residential line of credit 1,400 — 1,400 10 Commercial real estate: Owner occupied 8,117 71 8,188 200 Non-owner occupied 13,899 — 13,899 — Consumer and other 25 — 25 1 Total $ 28,158 $ 1,161 $ 29,319 $ 303 |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Other real estate owned The amount reported as other real estate owned includes property acquired through foreclosure in addition to excess facilities held for sale and is carried at fair value less estimated cost to sell the property. The following table summarizes the other real estate owned for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Balance at beginning of period $ 9,398 $ 11,986 $ 9,777 $ 12,111 Transfers from loans 421 349 984 4,945 Proceeds from sale of other real estate (4,335) (4,173) (4,753) (8,834) Gain (loss) on sale of other real estate owned 483 2,090 353 3,190 Loans provided for sales of other real — (152) — (685) Write-downs and partial liquidations (48) (85) (442) (712) Balance at end of period $ 5,919 $ 10,015 $ 5,919 $ 10,015 Foreclosed residential real estate properties totaled $614 and $775 as of September 30, 2022 and December 31, 2021, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $755 at September 30, 2022. As of December 31, 2021, there were no such residential foreclosure proceedings in process. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases: As of September 30, 2022, the Company was the lessee in 59 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 45 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 33 years. Leases with initial terms of less than one year and equipment leases are not included on the consolidated balance sheets as these are insignificant. Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. As previously disclosed, during the year ended December 31, 2020, the Company entered into an operating lease for a new corporate headquarters building located in downtown Nashville. During the three months ended September 30, 2022, construction of the exterior of the building was completed and the Company took possession of the leased space and began the build-out of the interior space. On August 1, 2022, the Company recorded an ROU asset and operating lease liability of $22,082 and $26,100, respectively, in connection with the initial term of this lease. Information related to the Company's leases is presented below as of September 30, 2022 and December 31, 2021: September 30, December 31, Classification 2022 2021 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 61,444 $ 41,686 Finance leases Premises and equipment, net 1,394 1,487 Total right-of-use assets $ 62,838 $ 43,173 Lease liabilities: Operating leases Operating lease liabilities $ 70,610 $ 46,367 Finance leases Borrowings 1,443 1,518 Total lease liabilities $ 72,053 $ 47,885 Weighted average remaining lease term (in years) - 12.2 12.4 Weighted average remaining lease term (in years) - 12.6 13.4 Weighted average discount rate - operating 3.05 % 2.73 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Three Months Ended Nine Months Ended September 30, September 30, Classification 2022 2021 2022 2021 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 2,269 $ 1,838 $ 5,830 $ 5,948 Short-term lease cost Occupancy and equipment 132 107 387 296 Variable lease cost Occupancy and equipment 215 284 764 760 Lease impairment Mortgage restructuring expense — — 364 — Gain on lease modifications and Occupancy and equipment — (14) (18) (801) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 7 7 22 21 Amortization of right-of-use asset Occupancy and equipment 27 28 92 83 Total lease cost $ 2,650 $ 2,250 $ 7,441 $ 6,307 During the nine months ended September 30, 2022, the Company recorded $364 of lease impairment related to vacating two locations associated with the Mortgage restructuring and recorded gains of $18 related to early lease terminations and modifications on other vacated locations. During the three and nine months ended September 30, 2021, the Company recorded $14 and $801, respectively, in gains on lease modifications and terminations on certain vacated locations that were consolidated as a result of previous acquisitions. The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of September 30, 2022 is as follows: Operating Finance Leases Lease Lease payments due: September 30, 2023 $ 7,508 $ 29 September 30, 2024 8,257 118 September 30, 2025 7,797 120 September 30, 2026 7,650 121 September 30, 2027 7,449 123 Thereafter 48,089 1,102 Total undiscounted future minimum lease payments 86,750 1,613 Less: imputed interest (16,140) (170) Lease liability $ 70,610 $ 1,443 |
Leases | Leases: As of September 30, 2022, the Company was the lessee in 59 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 45 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 33 years. Leases with initial terms of less than one year and equipment leases are not included on the consolidated balance sheets as these are insignificant. Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. As previously disclosed, during the year ended December 31, 2020, the Company entered into an operating lease for a new corporate headquarters building located in downtown Nashville. During the three months ended September 30, 2022, construction of the exterior of the building was completed and the Company took possession of the leased space and began the build-out of the interior space. On August 1, 2022, the Company recorded an ROU asset and operating lease liability of $22,082 and $26,100, respectively, in connection with the initial term of this lease. Information related to the Company's leases is presented below as of September 30, 2022 and December 31, 2021: September 30, December 31, Classification 2022 2021 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 61,444 $ 41,686 Finance leases Premises and equipment, net 1,394 1,487 Total right-of-use assets $ 62,838 $ 43,173 Lease liabilities: Operating leases Operating lease liabilities $ 70,610 $ 46,367 Finance leases Borrowings 1,443 1,518 Total lease liabilities $ 72,053 $ 47,885 Weighted average remaining lease term (in years) - 12.2 12.4 Weighted average remaining lease term (in years) - 12.6 13.4 Weighted average discount rate - operating 3.05 % 2.73 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Three Months Ended Nine Months Ended September 30, September 30, Classification 2022 2021 2022 2021 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 2,269 $ 1,838 $ 5,830 $ 5,948 Short-term lease cost Occupancy and equipment 132 107 387 296 Variable lease cost Occupancy and equipment 215 284 764 760 Lease impairment Mortgage restructuring expense — — 364 — Gain on lease modifications and Occupancy and equipment — (14) (18) (801) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 7 7 22 21 Amortization of right-of-use asset Occupancy and equipment 27 28 92 83 Total lease cost $ 2,650 $ 2,250 $ 7,441 $ 6,307 During the nine months ended September 30, 2022, the Company recorded $364 of lease impairment related to vacating two locations associated with the Mortgage restructuring and recorded gains of $18 related to early lease terminations and modifications on other vacated locations. During the three and nine months ended September 30, 2021, the Company recorded $14 and $801, respectively, in gains on lease modifications and terminations on certain vacated locations that were consolidated as a result of previous acquisitions. The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of September 30, 2022 is as follows: Operating Finance Leases Lease Lease payments due: September 30, 2023 $ 7,508 $ 29 September 30, 2024 8,257 118 September 30, 2025 7,797 120 September 30, 2026 7,650 121 September 30, 2027 7,449 123 Thereafter 48,089 1,102 Total undiscounted future minimum lease payments 86,750 1,613 Less: imputed interest (16,140) (170) Lease liability $ 70,610 $ 1,443 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Mortgage Servicing Rights | Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Carrying value at beginning of period $ 158,678 $ 101,615 $ 115,512 $ 79,997 Capitalization 4,453 9,215 19,523 31,382 Change in fair value: Due to pay-offs/pay-downs (3,670) (7,302) (13,165) (24,488) Due to change in valuation inputs or assumptions 11,966 7,063 49,557 23,700 Carrying value at end of period $ 171,427 $ 110,591 $ 171,427 $ 110,591 The following table summarizes servicing income and expense, which are included in 'Mortgage banking income' and 'Other noninterest expense', respectively, within the Mortgage segment operating results for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Servicing income: Servicing income $ 8,104 $ 7,539 $ 23,499 $ 21,258 Change in fair value of mortgage servicing rights 8,296 (239) 36,392 (788) Change in fair value of derivative hedging instruments (12,641) (2,128) (41,636) (9,987) Servicing income 3,759 5,172 18,255 10,483 Servicing expenses 1,923 2,156 7,848 7,381 Net servicing income (1) $ 1,836 $ 3,016 $ 10,407 $ 3,102 (1) Excludes benefit of custodial servicing related noninterest-bearing deposits held by the Bank. Data and key economic assumptions related to the Company’s mortgage servicing rights as of September 30, 2022 and December 31, 2021 are as follows: September 30, December 31, 2022 2021 Unpaid principal balance $ 11,233,249 $ 10,759,286 Weighted-average prepayment speed (CPR) 5.40 % 9.31 % Estimated impact on fair value of a 10% increase $ (4,751) $ (4,905) Estimated impact on fair value of a 20% increase $ (9,191) $ (9,429) Discount rate 9.6 % 9.81 % Estimated impact on fair value of a 100 bp increase $ (8,164) $ (4,785) Estimated impact on fair value of a 200 bp increase $ (15,623) $ (9,198) Weighted-average coupon interest rate 3.29 % 3.23 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 331 330 The Company economically hedges the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. See Note 9, "Derivatives" for additional information on these hedging instruments. As of September 30, 2022 and December 31, 2021, mortgage escrow deposits totaled to $140,768 and $127,617, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes: An allocation of federal and state income taxes between current and deferred portions is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Current $ 5,513 $ 2,350 $ 9,082 $ 17,840 Deferred 3,418 7,366 15,879 20,904 Total $ 8,931 $ 9,716 $ 24,961 $ 38,744 The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Federal taxes calculated at statutory rate $ 8,560 21.0 % $ 11,551 21.0 % $ 23,390 21.0 % $ 37,844 21.0 % Increase (decrease) resulting from: State taxes, net of federal 1,018 2.5 % 3,279 6.0 % 3,551 3.2 % 6,908 3.8 % Benefit from equity based (82) (0.2) % (1,784) (3.2) % (388) (0.3) % (2,129) (1.2) % Municipal interest income, (443) (1.1) % (416) (0.8) % (1,331) (1.2) % (1,259) (0.7) % Bank-owned life insurance (78) (0.2) % (74) (0.1) % (231) (0.2) % (240) (0.1) % NOL Carryback provision — — % (3,424) (6.2) % — — % (3,424) (1.9) % Offering costs — — % — — % — — % 127 0.1 % Section 162(m) limitation 39 0.1 % 1,065 1.9 % 201 0.2 % 1,313 0.7 % Other (83) (0.2) % (481) (0.9) % (231) (0.3) % (396) (0.2) % Income tax expense, as $ 8,931 21.9 % $ 9,716 17.7 % $ 24,961 22.4 % $ 38,744 21.5 % The Company is subject to Internal Revenue Code Section 162(m), which limits the deductibility of compensation paid to certain individuals. It is the Company’s policy to apply the Section 162(m) limitations to stock-based compensation first and then followed by cash compensation. As a result of the vesting of these units and cash compensation paid to date, the Company has disallowed a portion of its compensation paid to the applicable individuals. The components of the net deferred tax assets (liabilities) at September 30, 2022 and December 31, 2021, are as follows: September 30, December 31, 2022 2021 Deferred tax assets: Allowance for credit losses $ 39,064 $ 35,233 Operating lease liabilities 18,774 12,478 Net operating loss 1,158 1,370 Amortization of core deposit intangibles 403 — Deferred compensation 4,390 5,484 Unrealized loss on debt securities 67,253 — Unrealized loss on cash flow hedges — 205 Other assets 4,891 8,301 Subtotal 135,933 63,071 Deferred tax liabilities: FHLB stock dividends $ (484) $ (484) Operating leases - right of use assets (17,386) (11,287) Depreciation (7,335) (7,938) Amortization of core deposit intangibles — (116) Unrealized gain on equity securities (2,297) (2,407) Unrealized gain on cash flow hedges (313) — Unrealized gain on debt securities — (1,324) Mortgage servicing rights (44,667) (30,098) Goodwill (15,338) (13,743) Other liabilities (2,753) (2,494) Subtotal (90,573) (69,891) Net deferred tax assets (liabilities) $ 45,360 $ (6,820) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies: Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. September 30, December 31, 2022 2021 Commitments to extend credit, excluding interest rate lock commitments $ 3,686,559 $ 3,106,594 Letters of credit 64,692 77,427 Balance at end of period $ 3,751,251 $ 3,184,021 As of September 30, 2022 and December 31, 2021, loan commitments included above with floating interest rates totaled $2.97 billion and $2.26 billion, respectively. The Company estimates expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives under the CECL methodology. When applying this methodology, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. The table below presents activity within the allowance for credit losses on unfunded commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Balance at beginning of period $ 20,399 $ 13,202 $ 14,380 $ 16,378 Provision for credit losses on unfunded commitments 3,178 301 9,197 (2,875) Balance at end of period $ 23,577 $ 13,503 $ 23,577 $ 13,503 In connection with the sale of mortgage loans to third party investors, the Company makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Company to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $4,442 and $5,988 for the three and nine months ended September 30, 2022, respectively, and $2,917 and $4,386 for the three and nine months ended September 30, 2021, respectively. The Company has established a reserve associated with loan repurchases. The following table summarizes the activity in the repurchase reserve included in accrued expenses and other liabilities on the Company's consolidated balance sheets: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Balance at beginning of period $ 3,445 $ 5,489 $ 4,802 $ 5,928 Provision for loan repurchases or indemnifications (800) — (1,989) (266) Losses on loans repurchased or indemnified 16 (120) (152) (293) Balance at end of period $ 2,661 $ 5,369 $ 2,661 $ 5,369 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives: The Company utilizes derivative financial instruments as part of its ongoing efforts to manage its interest rate risk exposure as well as the exposure for its customers. Derivative financial instruments are included in the consolidated balance sheets line items “Other assets” or “Other liabilities” at fair value in accordance with ASC 815, “Derivatives and Hedging.” Derivatives not designated as hedging instruments The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Under such commitments, interest rates for mortgage loans are typically locked in for between 45 to 90 days with the customer. These interest rate lock commitments are recorded at fair value in the Company’s consolidated balance sheets. The Company also enters into best effort or mandatory delivery forward commitments to sell residential mortgage loans to secondary market investors. Gains and losses arising from changes in the valuation of the rate-lock commitments and forward commitments are recognized currently in earnings and are reflected under the line item “Mortgage banking income” on the consolidated statements of income. The Company enters into forward commitments, futures and options contracts as economic hedges to offset the changes in fair value of Mortgage servicing rights. Gains and losses associated with these instruments are included in earnings and are reflected under the line item “Mortgage banking income” on the consolidated statements of income. Additionally, the Company enters into derivative instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with customer contracts, the Company enters into an offsetting derivative contract. The Company manages its credit risk, or potential risk of default by its commercial customers through credit limit approval and monitoring procedures. The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: September 30, 2022 Notional Amount Asset Liability Interest rate contracts $ 529,801 $ 45,775 $ 45,762 Forward commitments 294,000 7,017 — Interest rate-lock commitments 188,430 — 222 Futures contracts 484,700 — 3,542 Total $ 1,496,931 $ 52,792 $ 49,526 December 31, 2021 Notional Amount Asset Liability Interest rate contracts $ 600,048 $ 19,265 $ 19,138 Forward commitments 1,180,000 — 1,077 Interest rate-lock commitments 487,396 7,197 — Futures contracts 429,000 922 — Total $ 2,696,444 $ 27,384 $ 20,215 (Losses) gains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Included in mortgage banking income: Interest rate lock commitments $ (3,980) $ (3,316) $ (7,419) $ (24,587) Forward commitments 4,795 (806) 57,130 23,252 Futures contracts (10,105) (2,152) (35,805) (9,380) Option contracts — — 36 — Total $ (9,290) $ (6,274) $ 13,942 $ (10,715) Derivatives designated as cash flow hedges The Company also maintains two interest rate swap agreements with notional amounts totaling $30,000 used to hedge interest rate exposure on outstanding subordinated debentures included in long-term debt totaling $30,930. Under these agreements, the Company receives a variable rate of interest equal to 3-month LIBOR and pays a weighted average fixed rate of interest of 2.08%. Upon the cessation of LIBOR in June 2023, the rate will convert to SOFR plus an adjustment in accordance with market standards. The interest rate swap contracts, which mature in June of 2024, are designated as cash flow hedges with the objective of reducing the variability in cash flows resulting from changes in interest rates. The following presents a summary of the Company's designated cash flow hedges as of the dates presented: September 30, 2022 December 31, 2021 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 1,198 Other assets $ (785) Accrued expenses and other liabilities The Company's consolidated statements of income included a gain of $26 and loss of $214 for the three and nine months ended September 30, 2022, respectively, and losses of $148 and $428 for the three and nine months ended September 30, 2021, respectively, in interest expense on borrowings related to these cash flow hedges. The cash flow hedges were effective during the periods presented and as a result qualified for hedge accounting treatment. As such, no amounts were reclassified from accumulated other comprehensive (loss) income into earnings during either period presented. The following discloses the amount included in other comprehensive loss, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amount of gain recognized in other comprehensive loss, net of tax expense of $145, $38, $517 and $173 $ 409 $ 106 $ 1,466 $ 489 Derivatives designated as fair value hedges During the first quarter of 2022, the Company entered into three designated fair value hedges to mitigate the effect of changing rates on the fair value of various fixed rate liabilities, including certain money market deposits and subordinated debt. The hedging strategy converts the fixed interest rates of the hedged items to the daily compounded SOFR in arrears paid monthly. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. As of September 30, 2022, the fair value hedges were deemed effective. September 30, 2022 Notional Amount Remaining Maturity (In Years) Receive Fixed Rate Pay Floating Rate Estimated fair value Derivatives included in other liabilities: Interest rate swap $ 100,000 1.42 1.46% SOFR $ (3,831) Interest rate swap 75,000 1.89 1.50% SOFR (3,816) Interest rate swap 125,000 1.89 1.50% SOFR (6,359) Total $ 300,000 1.73 1.48% $ (14,006) The following discloses the amount of (expense) income included in interest expense on borrowings and deposits, related to these fair value hedging instruments: Three Months Ended September 30, Nine Months Ended September 30, 2022 2022 Designated fair value hedge: Interest expense on deposits $ (331) $ 377 Interest expense on borrowings (181) 167 Total $ (512) $ 544 The following amounts were recorded on the balance sheet related to cumulative adjustments for fair value hedges as of September 30, 2022: Line item on the balance sheet Carrying Amount of the Hedged Item Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item Borrowings $ 95,074 (1) $ (3,831) Money market and savings deposits 197,124 (2) (10,175) (1) The carrying value also includes unamortized subordinated debt issuance costs of $1,095. (2) The carrying value also includes an unaccreted purchase accounting fair value premium of $7,299. Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheets when the “right of offset” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements, however the Company has not elected to offset such financial instruments in the consolidated balance sheets. The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Gross amounts recognized $ 46,973 $ 4,990 $ 20,272 $ 15,733 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 46,973 4,990 20,272 15,733 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 14,100 4,297 14,100 4,297 Less: financial collateral pledged — — 6,172 11,436 Net amounts $ 32,873 $ 693 $ — $ — Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, the Company may be required to post margin to these counterparties. As of September 30, 2022 and December 31, 2021, the Company had minimum collateral posting thresholds with certain derivative counterparties and had collateral posted of $19,169 and $57,868, respectively, against its obligations under these agreements. Cash pledged as collateral on derivative contracts is recorded in other assets on the consolidated balance sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair value of financial instruments: FASB ASC 820-10 defines fair value as 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. ASC 820-10 also establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The hierarchy is broken down into the following three levels, based on the reliability of inputs: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at 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 for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. The Company records the fair values of financial assets and liabilities on a recurring and non-recurring basis using the following methods and assumptions: Investment Securities Investment securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by 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 pricing relationship or correlation among other benchmark quoted securities. Investment securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale securities are classified within Level 3 of the fair value hierarchy. Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high-risk securities. Loans held for sale Loans held for sale are carried at fair value. Fair value is determined using current secondary market prices for loans with similar characteristics for the mortgage portfolio, that is, using Level 2 inputs. Commercial loans held for sale's fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. Derivatives The fair value of the Company's interest rate swap agreements to facilitate customer transactions are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. The fair value of interest rate lock commitments associated with the mortgage pipeline is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The fair values of the Company's designated cash flow and fair value hedges are determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair values of both the Company's hedges, including designated cash flow hedges and designated fair value hedges are based on pricing models that utilize observable market inputs. These financial instruments are classified as Level 2. OREO OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. OREO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3. Mortgage servicing rights MSRs are carried at fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. As such, MSRs are considered Level 3. Collateral dependent loans Collateral dependent loans are loans for which, based on current information and events, the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral and it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collateral dependent loans are classified as Level 3. The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Fair Value September 30, 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 618,290 $ 618,290 $ — $ — $ 618,290 Investment securities 1,485,133 — 1,485,133 — 1,485,133 Loans, net 8,970,540 — — 8,859,226 8,859,226 Loans held for sale 130,733 — 97,011 33,722 130,733 Interest receivable 39,034 107 6,546 32,381 39,034 Mortgage servicing rights 171,427 — — 171,427 171,427 Derivatives 53,990 — 53,990 — 53,990 Financial liabilities: Deposits: Without stated maturities $ 8,843,012 $ 8,843,012 $ — $ — $ 8,843,012 With stated maturities 1,163,070 — 1,158,686 — 1,158,686 Securities sold under agreement to repurchase and federal funds sold 29,008 29,008 — — 29,008 Federal Home Loan Bank advances 540,000 — 540,000 — 540,000 Subordinated debt 126,004 — — 117,263 117,263 Interest payable 3,927 730 2,822 375 3,927 Derivatives 63,532 — 63,532 — 63,532 Fair Value December 31, 2021 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,797,740 $ 1,797,740 $ — $ — $ 1,797,740 Investment securities 1,681,892 — 1,681,892 — 1,681,892 Loans, net 7,479,103 — — 7,566,717 7,566,717 Loans held for sale 752,223 — 672,924 79,299 752,223 Interest receivable 38,528 36 6,461 32,031 38,528 Mortgage servicing rights 115,512 — — 115,512 115,512 Derivatives 27,384 — 27,384 — 27,384 Financial liabilities: Deposits: Without stated maturities $ 9,705,816 $ 9,705,816 $ — $ — $ 9,705,816 With stated maturities 1,131,081 — 1,137,647 — 1,137,647 Securities sold under agreement to repurchase and federal funds sold 40,716 40,716 — — 40,716 Subordinated debt 129,544 — — 133,021 133,021 Interest payable 3,162 140 1,510 1,512 3,162 Derivatives 21,000 — 21,000 — 21,000 The balances and levels of the assets measured at fair value on a recurring basis at September 30, 2022 are presented in the following table: At September 30, 2022 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 39,831 $ — $ 39,831 Mortgage-backed securities - residential — 1,057,763 — 1,057,763 Mortgage-backed securities - commercial — 17,847 — 17,847 Municipal securities — 252,143 — 252,143 Treasury securities — 107,297 — 107,297 Corporate securities — 7,290 — 7,290 Equity securities, at fair value — 2,962 — 2,962 Total securities $ — $ 1,485,133 $ — $ 1,485,133 Loans held for sale $ — $ 97,011 $ 33,722 $ 130,733 Mortgage servicing rights — — 171,427 171,427 Derivatives — 53,990 — 53,990 Financial Liabilities: Derivatives — 63,532 — 63,532 The balances and levels of the assets measured at fair value on a non-recurring basis at September 30, 2022 are presented in the following table: At September 30, 2022 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,193 $ 2,193 Collateral dependent loans: Commercial and industrial $ — $ — $ 12 $ 12 Residential real estate: 1-4 family mortgage — — 362 362 Total collateral dependent loans $ — $ — $ 374 $ 374 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2021 are presented in the following table: At December 31, 2021 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 33,870 $ — $ 33,870 Mortgage-backed securities - residential — 1,269,372 — 1,269,372 Mortgage-backed securities - commercial — 15,250 — 15,250 Municipal securities — 338,610 — 338,610 Treasury securities — 14,908 — 14,908 Corporate securities — 6,515 — 6,515 Equity securities, at fair value — 3,367 — 3,367 Total securities $ — $ 1,681,892 $ — $ 1,681,892 Loans held for sale $ — $ 672,924 $ 79,299 $ 752,223 Mortgage servicing rights — — 115,512 115,512 Derivatives — 27,384 — 27,384 Financial Liabilities: Derivatives — 21,000 — 21,000 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2021 are presented in the following table: At December 31, 2021 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 6,308 $ 6,308 Collateral dependent loans: Construction — — 606 606 Residential real estate: Residential line of credit — — 592 592 Commercial real estate: Owner occupied — — 729 729 Non-owner occupied — — 3,526 3,526 Consumer and other — — 24 24 Total collateral dependent loans $ — $ — $ 5,477 $ 5,477 The following tables present information as of September 30, 2022 and December 31, 2021 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: As of September 30, 2022 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 374 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 2,193 Appraised value of property less costs to sell Discount for costs to sell 0%-15% As of December 31, 2021 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 5,477 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 6,308 Appraised value of property less costs to sell Discount for costs to sell 0%-15% For collateral dependent loans, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan's collateral is determined by third-party appraisals, which are then adjusted for estimated selling and closing costs related to liquidation of the collateral. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on changes in market conditions from the time of valuation and management's knowledge of the borrower and borrower's business. As of September 30, 2022 and December 31, 2021, total amortized cost of collateral dependent loans measured on a non-recurring basis amounted to $578 and $5,781, respectively. Other real estate owned acquired in settlement of indebtedness is recorded at fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Any write-downs based on the asset's fair value at the date of foreclosure are charged to the allowance for credit losses. Appraisals for both collateral dependent loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics. Collateral dependent loans that are dependent on recovery through sale of equipment, such as farm equipment, automobiles and aircrafts are generally valued based on public source pricing or subscription services while more complex assets are valued through leveraging brokers who have expertise in the collateral involved. Fair value option The following table summarizes the Company's loans held for sale as of the dates presented: September 30, December 31, 2022 2021 Commercial loans held for sale, at fair value $ 33,722 $ 79,299 Mortgage loans held for sale: Mortgage loans held for sale, at fair value 70,526 672,924 Mortgage loans held for sale - guaranteed GNMA repurchase option 26,485 — Total loans held for sale $ 130,733 $ 752,223 Mortgage loans held for sale The Company measures mortgage loans originated for sale at fair value under the fair value option as permitted under ASC 825, "Financial Instruments" ("ASC 825"). Electing to measure these assets at fair value reduces certain timing differences and more accurately matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. Net losses of $4,276 and $16,479 resulting from fair value changes of mortgage loans were recorded in income during the three and nine months ended September 30, 2022, respectively, compared to net losses of $3,908 and $14,894 during the three and nine months ended September 30, 2021, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both loans held for sale and the related derivative instruments are recorded in Mortgage Banking Income in the consolidated statements of income. Election of the fair value option allows the Company to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value. The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these mortgage loans held for sale, valuation adjustments attributable to instrument-specific credit risk is nominal. During the three months ended September 30, 2022, the Company revised its accounting estimate with regard to GNMA loans previously sold that are contractually delinquent greater than 90 days and began recording this guaranteed repurchase option on the balance sheet on a prospective basis without impact to prior periods. See Note 1, "Basis of presentation" for additional information regarding the Company's change in accounting estimate. Rebooked GNMA optional repurchase loans do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option. As such, these loans are excluded from the below disclosures. As of December 31, 2021, there were $94,648 of delinquent GNMA loans previously sold that the Company did not record on its consolidated balance sheets as the Company determined there not to be a more-than-trivial benefit based on an analysis of interest rates and an assessment of potential reputational risk associated with these loans. Commercial loans held for sale The Company also has a portfolio of shared national credits and institutional healthcare loans that were acquired during 2020 in the acquisition of Franklin. These commercial loans are also being measured under the fair value option. As such, these loans are excluded from the allowance for credit losses. The following tables sets forth the changes in fair value associated with this portfolio for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, 2022 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 47,462 $ (9,647) $ 37,815 Change in fair value: Pay-downs and pay-offs (3,706) — (3,706) Write-offs to discount (8,729) 8,729 — Changes in valuation included in other noninterest income — (387) (387) Carrying value at end of period $ 35,027 $ (1,305) $ 33,722 Nine Months Ended September 30, 2022 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 86,762 $ (7,463) $ 79,299 Change in fair value: Pay-downs and pay-offs (43,006) (43,006) Write-offs to discount (8,729) 8,729 — Changes in valuation included in other noninterest income — (2,571) (2,571) Carrying value at end of period $ 35,027 $ (1,305) $ 33,722 Three Months Ended September 30, 2021 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 135,972 $ (11,850) $ 124,122 Change in fair value: Pay-downs and pay-offs (24,366) — (24,366) Changes in valuation included in other noninterest income — 740 740 Carrying value at end of period $ 111,606 $ (11,110) $ 100,496 Nine Months Ended September 30, 2021 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 239,063 $ (23,660) $ 215,403 Change in fair value: Pay-downs and pay-offs (116,158) — (116,158) Write-offs to discount (11,299) 11,299 — Changes in valuation included in other noninterest income — 1,251 1,251 Carrying value at end of period $ 111,606 $ (11,110) $ 100,496 Interest income on loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in interest income in the consolidated statements of income. The following table summarizes the differences between the fair value and the principal balance for loans held for sale and nonaccrual loans measured at fair value as of September 30, 2022 and December 31, 2021: September 30, 2022 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 70,526 $ 72,098 $ (1,572) Commercial loans held for sale measured at fair value 33,722 35,027 (1,305) Nonaccrual commercial loans held for sale — — — December 31, 2021 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 672,924 $ 658,017 $ 14,907 Commercial loans held for sale measured at fair value 74,082 76,863 (2,781) Nonaccrual commercial loans held for sale 5,217 9,899 (4,682) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment reporting: The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Company determines reportable segments based on the significance of the segment’s operating results to the overall Company, the products and services offered, customer characteristics, processes and service delivery of the segments and the regular financial performance review and allocation of resources by the Chief Executive Officer, the Company’s chief operating decision maker. The Company has identified two distinct reportable segments—Banking and Mortgage. The Company’s primary segment is Banking, which provides a full range of deposit and lending products and services to corporate, commercial and consumer customers. The Company also offers conforming residential mortgage loans through the Mortgage segment, which activities also include the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking. The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance, the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore, these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. Additionally, the Banking segment includes the results of the Company's specialty lending group, which is concentrated in manufactured housing lending. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market and uses proceeds from loan sales to repay obligations due to the Banking segment. On May 10, 2022, the Company announced the restructuring of its Mortgage segment, including the exit from the direct-to-consumer delivery channel, which is one of two delivery channels in the Mortgage segment. As a result of exiting this channel, the Company incurred $12,458 of restructuring expenses during the second quarter of 2022. No such expenses were incurred during the first or third quarter of 2022. The repositioning of our Mortgage segment does not qualify to be reported as discontinued operations. The Company plans to continue originating and selling residential mortgage loans within its Mortgage segment through its traditional mortgage retail channel, retain mortgage servicing rights and continue holding residential 1-4 family mortgage loans in the loan portfolio. The Mortgage segment's interest rate lock commitment volume and sales volume by line of business for the three and nine months ended September 30, 2022 and 2021 is as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Interest rate lock commitment volume by line of Direct-to-consumer $ — $ 1,085,180 $ 663,848 $ 2,948,530 Retail 408,879 926,723 1,755,008 2,726,956 Total $ 408,879 $ 2,011,903 $ 2,418,856 $ 5,675,486 Interest rate lock commitment volume % by line of Direct-to-consumer — % 53.9 % 27.4 % 52.0 % Retail 100.0 % 46.1 % 72.6 % 48.0 % Mortgage sales by line of business: Direct-to-consumer $ 48,490 $ 809,887 $ 1,024,838 $ 2,562,681 Retail 521,165 726,010 1,698,987 2,226,795 Total $ 569,655 $ 1,535,897 $ 2,723,825 $ 4,789,476 Mortgage sales % by line of business: Direct-to-consumer 8.5 % 52.7 % 37.6 % 53.5 % Retail 91.5 % 47.3 % 62.4 % 46.5 % The following tables provide segment financial information for the periods indicated: Three Months Ended September 30, 2022 Banking (4) Mortgage Consolidated Net interest income $ 111,384 $ — $ 111,384 Provisions for credit losses (1) 11,367 — 11,367 Mortgage banking income (2) — 16,729 16,729 Change in fair value of mortgage servicing rights, net of hedging (2) — (4,345) (4,345) Other noninterest income 10,293 (85) 10,208 Depreciation and amortization 1,867 190 2,057 Amortization of intangibles 1,108 — 1,108 Other noninterest expense 62,911 15,771 78,682 Income (loss) before income taxes $ 44,424 $ (3,662) $ 40,762 Income tax expense 8,931 Net income applicable to FB Financial Corporation and noncontrolling interest 31,831 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 31,831 Total assets $ 11,648,610 $ 609,472 $ 12,258,082 Goodwill 242,561 — 242,561 (1) Includes $3,178 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Three Months Ended September 30, 2021 Banking (3) Mortgage Consolidated Net interest income $ 88,576 $ (100) $ 88,476 Provisions for credit losses (1) (2,531) — (2,531) Mortgage banking income (2) — 47,751 47,751 Change in fair value of mortgage servicing rights, net of hedging (2) — (2,367) (2,367) Other noninterest income 13,823 (201) 13,622 Depreciation and amortization 1,791 349 2,140 Amortization of intangibles 1,344 — 1,344 Other noninterest expense 55,642 35,881 91,523 Income before income taxes $ 46,153 $ 8,853 $ 55,006 Income tax expense 9,716 Net income applicable to FB Financial Corporation and noncontrolling 45,290 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 45,290 Total assets $ 10,712,281 $ 1,098,009 $ 11,810,290 Goodwill 242,561 — 242,561 (1) Includes $301 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Nine Months Ended September 30, 2022 Banking (4) Mortgage Consolidated Net interest income $ 301,739 $ (2) $ 301,737 Provisions for credit losses (1) 19,438 — 19,438 Mortgage banking income (2) — 69,718 69,718 Change in fair value of mortgage servicing rights, net of hedging (2) — (5,244) (5,244) Other noninterest income 32,975 (251) 32,724 Depreciation and amortization 5,308 797 6,105 Amortization of intangibles 3,546 — 3,546 Other noninterest expense (3) 175,936 82,529 258,465 Income (loss) before income taxes $ 130,486 $ (19,105) $ 111,381 Income tax expense 24,961 Net income applicable to FB Financial Corporation and noncontrolling interest 86,420 Net income applicable to noncontrolling interest (4) 8 Net income applicable to FB Financial Corporation $ 86,412 Total assets $ 11,648,610 $ 609,472 $ 12,258,082 Goodwill 242,561 — 242,561 (1) Includes $9,197 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Includes $12,458 in Mortgage restructuring expenses in the Mortgage segment related to the exit from the direct-to-consumer delivery channel. (4) Banking segment includes noncontrolling interest. Nine Months Ended September 30, 2021 Banking (3) Mortgage Consolidated Net interest income $ 257,726 $ (111) $ 257,615 Provisions for credit losses (1) (30,224) — (30,224) Mortgage banking income (2) — 146,990 146,990 Change in fair value of mortgage servicing rights, net of hedging (2) — (10,775) (10,775) Other noninterest income 39,223 (402) 38,821 Depreciation and amortization 5,267 1,021 6,288 Amortization of intangibles 4,178 — 4,178 Other noninterest expense (3) 163,261 108,938 272,199 Income before income taxes $ 154,467 $ 25,743 $ 180,210 Income tax expense 38,744 Net income applicable to FB Financial Corporation and noncontrolling interest 141,466 Net income applicable to noncontrolling interest (3) 8 Net income applicable to FB Financial Corporation $ 141,458 Total assets $ 10,712,281 $ 1,098,009 $ 11,810,290 Goodwill 242,561 — 242,561 (1) Includes $(2,875) in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. |
Minimum Capital Requirements
Minimum Capital Requirements | 9 Months Ended |
Sep. 30, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Minimum Capital Requirements | Minimum capital requirements: Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under regulatory guidance for non-advanced approaches institutions, the Bank and Company are required to maintain minimum capital ratios as outlined in the table below. Additionally, under U.S. Basel III Capital Rules, the decision was made to opt out of including accumulated other comprehensive income in regulatory capital. As of September 30, 2022 and December 31, 2021, the Bank and Company met all capital adequacy requirements to which they are subject. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced a final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The final rule maintained the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period and delayed the initial impact of CECL adoption plus 25% of the quarterly increases in ACL through December 31, 2021. As of January 1, 2022, the cumulative amount of the transition adjustments became fixed and are being phased out of regulatory capital calculations evenly over a three year period, with 75% of the transition provision’s impact being recognized in 2022, 50% recognized in 2023, and 25% recognized in 2024. Actual and required capital amounts and ratios are included below as of the dates indicated. As oAs of September 30, 2022 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,501,110 13.0 % $ 1,210,236 10.5 % N/A N/A FirstBank 1,472,955 12.8 % 1,208,502 10.5 % $ 1,150,954 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,287,489 11.2 % $ 979,715 8.5 % N/A N/A FirstBank 1,259,334 10.9 % 978,311 8.5 % $ 920,764 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,287,489 10.7 % $ 479,489 4.0 % N/A N/A FirstBank 1,259,334 10.5 % 479,290 4.0 % $ 599,113 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,257,489 10.9 % $ 806,824 7.0 % N/A N/A FirstBank 1,259,334 10.9 % 805,668 7.0 % $ 748,120 6.5 % As of December 31, 2021 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,434,581 14.5 % $ 1,039,984 10.5 % N/A N/A FirstBank 1,396,407 14.1 % 1,038,760 10.5 % $ 989,295 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,251,874 12.6 % $ 841,892 8.5 % N/A N/A FirstBank 1,213,700 12.3 % 840,901 8.5 % $ 791,436 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,251,874 10.5 % $ 474,831 4.0 % N/A N/A FirstBank 1,213,700 10.2 % 474,044 4.0 % $ 592,555 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,221,874 12.3 % $ 693,322 7.0 % N/A N/A FirstBank 1,213,700 12.3 % 692,507 7.0 % $ 643,042 6.5 % |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation: Restricted Stock Units The Company grants RSUs under compensation arrangements for the benefit of employees, executive officers, and directors. RSU grants are subject to time-based vesting. The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the service conditions set forth in the grant agreements. The following table summarizes information about the changes in restricted stock units for the nine months ended September 30, 2022. Restricted Stock Weighted Balance at beginning of period (unvested) 492,320 $ 36.06 Granted 143,036 43.74 Vested (202,652) 36.12 Forfeited (46,496) 34.51 Balance at end of period (unvested) 386,208 $ 38.99 The total fair value of restricted stock units vested and released was $1,474 and $7,320 for the three and nine months ended September 30, 2022, respectively, and $10,749 and $15,941 for the three and nine months ended September 30, 2021, respectively. The compensation cost related to stock grants and vesting of restricted stock units was $1,701 and $5,753 for the three and nine months ended September 30, 2022, respectively, and $2,365 and $7,024 for the three and nine months ended September 30, 2021, respectively. This included amounts paid related to director grants and compensation elected to be settled in stock amounting to $171 and $485 during the three and nine months ended September 30, 2022, respectively, and $168 and $467 during the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, there was $10,686 of total unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.3 years. Additionally, as of September 30, 2022, there were 1,737,539 shares available for issuance under the Company's stock compensation plans. As of September 30, 2022 and December 31, 2021, there were $265 and $274, respectively, accrued in other liabilities related to dividend equivalent units declared to be paid upon vesting and distribution of the underlying restricted stock units. Performance Based Restricted Stock Units The following table summarizes information about the changes in PSUs as of and for the nine months ended September 30, 2022. Performance Stock Weighted Balance at beginning of period (unvested) 115,750 $ 40.13 Granted 69,291 44.44 Vested — — Forfeited or expired (10,659) 42.76 Balance at end of period (unvested) 174,382 $ 41.68 The Company awards performance-based restricted stock units to executives and other officers and employees. Under the terms of the awards, the number of units that will vest and convert to shares of common stock will be based on the Company's performance relative to a predefined peer group over a fixed three-year performance period. The number of shares issued upon vesting will range from 0% to 200% of the PSUs granted. The Company's performance relative to the peer group will be measured based on calculated non-GAAP adjusted return on average tangible common equity, adjusted for unusual gains/losses, merger expenses, and other items as approved by the compensation committee of the Company's board of directors. Compensation expense for PSUs is estimated each period based on the fair value of the Company's stock at the grant date and the most probable outcome of the performance condition, adjusted for the passage of time within the vesting period of the awards. As of September 30, 2022, the Company determined the probability of meeting the performance criteria for each grant and recorded compensation cost associated when factoring in the conversion of PSUs to shares of common stock. Grant Year Vest Year Shares Outstanding 2020 2023 49,964 2021 2024 59,496 2022 2025 64,922 The Company recorded compensation cost of $832 and $2,400 during the three and nine months ended September 30, 2022 respectively, and $551 and $1,041 for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $9,753, and the remaining performance period over which the cost could be recognized was 2.0 years. Employee Stock Purchase Plan: The Company maintains an employee stock purchase plan under which employees, through payroll deductions, are able to purchase shares of Company common stock. The employee purchase price is 95% of the lower of the market price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related party transactions: (A) Loans: The Bank has made and expects to continue to make loans to the directors, certain management, significant shareholders, and executive officers of the Company and their related interests in the ordinary course of business, in compliance with regulatory requirements. An analysis of loans to executive officers, certain management, and directors of the Bank and their related interests is presented below: Loans outstanding at January 1, 2022 $ 29,010 New loans and advances 55,428 Change in related party status (9,939) Repayments (2,345) Loans outstanding at September 30, 2022 $ 72,154 Unfunded commitments to certain executive officers, certain management and directors and their related interests totaled $34,875 and $10,994 at September 30, 2022 and December 31, 2021, respectively. (B) Deposits: The Bank held deposits from related parties tota ling $311,197 a nd $312,956 as of September 30, 2022 and December 31, 2021, respectively. (C) Leases: The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $1 and $6 in unamortized leasehold improvements related to these leases at September 30, 2022 and December 31, 2021, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $96 and $297 for the three and nine months ended September 30, 2022, respectively, and $128 and $388 for the three and nine months ended September 30, 2021. (D) Aviation lease and time sharing agreement: During the year ended December 31, 2021, the Bank formed a subsidiary, FBK Aviation, LLC and purchased an aircraft under this entity. FBK Aviation, LLC also maintains a non-exclusive aircraft lease agreement with an entity owned by one of the Company's directors. During the three and nine months ended September 30, 2022, the Company recognized income amounting to $17 and $36, respectively, under this agreement. No such income was recognized during the three and nine months ended September 30, 2021. Additionally, the Company is a participant to an aviation time sharing agreement for an aircraft owned by an entity that is owned by one of the Company's directors and one of the Company's former directors. During the nine months ended September 30, 2021, the Company made payments of $32 under this agreement. No such payments were made during the three months ended September 30, 2021 nor the three and nine months ended September 30, 2022. (E) Registration rights agreement: The Company is party to a registration rights agreement with its former majority shareholder entered into in connection with the 2016 IPO, under which the Company is responsible for payment of expenses (other than underwriting discounts and commissions) relating to sales to the public by the shareholder of shares of the Company’s common stock beneficially owned by him. Such expenses include registration fees, legal and accounting fees, and printing costs payable by the Company and expensed when incurred. During the nine months ended September 30, 2021, the Company paid $605 under this agreement related to the secondary offering completed during the second quarter of 2021. No such expenses were incurred during the three months ended September 30, 2021 nor three and nine months ended September 30, 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Overview and Presentation | The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with U.S. GAAP interim reporting requirements and general banking industry guidelines, and therefore, do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity. |
Earnings Per Share | Earnings per share Basic EPS excludes dilution and is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. |
Recently Modified Accounting Policies, Recently Adopted Accounting Standards and Newly Issued Not Yet Effective Accounting Standards | Recently modified accounting policies: The Company did not modify or adopt any new accounting policies during the three and nine months ended September 30, 2022 that were not disclosed in the Company's 2021 audited consolidated financial statements included on Form 10-K, other than as described below. During the three months ended March 31, 2022, the Company appended the following language to the below referenced existing accounting policy related to derivative financial instruments and hedging activities described in Note 1 of the Company's 2021 Annual Report on Form 10-K as a result of entering into designated fair value hedges during the period. (A) Derivative financial instruments and hedging activities: The Company enters into fair value hedge relationships to mitigate the effect of changing interest rates on the fair values of fixed rate securities and loans. The gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. During the three months ended September 30, 2022, the Company modified the below referenced existing accounting policy. (B) Loans held for sale: Mortgage loans held for sale Mortgage loans originated and intended for sale in the secondary market are carried at fair value as permitted under the guidance in ASC 825, “Financial Instruments” (“ASC 825”). The change in fair value of both mortgage loans held for sale and the related derivative instruments used to hedge exposure to market related risks are recorded in “Mortgage banking income” in the Consolidated Statements of Income. Gains and losses on sale are recognized at the time the loan is closed. Pass through origination costs and related loan fees are also included in “Mortgage banking income”. Periodically, the Company transfers mortgage loans originated for sale in the secondary markets into the loan HFI portfolio based on current market conditions, overall secondary marketability and status of the loan. The loans are transferred into the portfolio at fair value at the date of transfer. Additionally, occasionally the Company will transfer loans from the held for investment portfolio into loans held for sale. At the time of the transfer, loans are marked to fair value through the allowance for credit losses and reclassified to loans held for sale. The Company sells mortgage loans originated for sale on the secondary market to GNMA and retains servicing rights after sale. Under the GNMA optional repurchase program, financial institutions are permitted to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be recorded on the balance sheet, regardless of whether the Company intends to exercise the buy-back option if the buyback options provides the transferor a more-than-trivial benefit. Prior to September 30, 2022, the Company deemed there was not a more than trivial benefit associated with repurchasing these loans based on quarterly analyses and as such, these were not rebooked to the balance sheet. During the quarter ended September 30, 2022, the Company revised its accounting estimate by applying the removal of accounts provision regardless of whether the transferor is provided a more-than-trivial benefit to align with developing industry best practice and regulatory expectations. Upon application of the change, as of September 30, 2022 the Company recorded $26,485 of optional rights to repurchase delinquent GNMA loans. The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825. These loans are reported at current unpaid principal balance in LHFS on the consolidated balance sheets with the offsetting liability being reported in borrowings. These are considered nonperforming assets as the Company does not earn any interest on the unexercised option to repurchase these loans. This change in accounting estimate was applied prospectively without modification to prior periods. Recently adopted accounting standards: The Company did not adopt any new accounting standards that were not disclosed in the Company's 2021 audited consolidated financial statements included on Form 10-K. Newly issued not yet effective accounting standards: In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The FASB is issuing this update to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, to amend a related illustrative example, and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The ASU becomes effective January 1, 2024 and the Company is evaluating the potential impact of this standard on its consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method", to expand the current single-layer method of electing hedge accounting to allow multiple hedged layers of a single closed portfolio under the method. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted on any date on or after the issuance of ASU No. 2022-01 for any entity that has adopted the amendments in ASU No.2017-12 for the corresponding period. Adoption of this update will not have an impact on the Company's consolidated financial statements or related disclosures. Additionally, in March 2022, the FASB issued ASU 2022-02, "'Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the effect that ASU 2022-02 will have on its consolidated financial statements and related disclosures. In March 2022, the SEC released SAB 121 to add interpretive guidance for entities to consider when they have obligations to safeguard crypto-assets held for clients. The new guidance requires reporting entities who allow clients to transact in crypto-assets and act as a custodian to record a liability with a corresponding asset regardless of whether they control the crypto-asset. The crypto-asset will need to be marked at fair value for each reporting period. The new guidance requires disclosures in the footnotes to address the amount of crypto-assets reported, and the safeguarding and recordkeeping of the assets. The guidance in this update requires that reporting companies implement SAB 121 no later than the financial statements covering the first interim or annual period ending after June 15, 2022, with retrospective application back to the beginning of the fiscal year. During the three months ended March 31, 2022, the Company became a founding member of the USDF Consortium (the "Consortium"), which plans to utilize blockchain and technology to streamline peer-to-peer financial transactions. The USDF Consortium is a membership-based association of insured depository institutions with a mission to build a network of banks to further the adoption and interoperability of a bank-minted tokenized deposit. While the Company does not currently hold or facilitate transactions with crypto-assets, the Company is evaluating the potential future financial statement and disclosure impact from adopting this guidance when it becomes applicable based on the Company's crypto-asset activities. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide relief for companies preparing for discontinuation of interest rates based on LIBOR. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued. ASU 2020-04 also provides for a onetime sale and/or transfer to AFS or trading to be made for HTM debt securities that both reference an eligible reference rate and were classified as HTM before January 1, 2020. ASU 2020-04 was effective for all entities as of March 12, 2020 and through December 31, 2022. Companies can apply the ASU as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The guidance requires companies to apply the guidance prospectively to contract modifications and hedging relationships while the one-time election to sell and/or transfer debt securities classified as HTM may be made any time after March 12, 2020. Our LIBOR Transition Committee was established to transition from LIBOR to alternative rates and has continued its efforts consistent with industry timelines. As part of these efforts, during the fourth quarter of 2021, we ceased utilization of LIBOR as an index in newly originated loans or loans that are refinanced. Additionally, we identified existing products that utilize LIBOR and are reviewing contractual language to facilitate the transition to alternative reference rates. ASU 2020-04 and ASU 2021-01 are not expected to have a material impact on our consolidated financial statements. |
Allowance for Credit Losses | Allowance for Credit Losses The Company calculates its expected credit loss using a lifetime loss rate methodology. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. The Company's loss rate models estimate the lifetime loss rate for pools of loans by combining the calculated loss rate based on each variable within the model (including the macroeconomic variables). The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; and loans with other unique risk characteristics. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. |
Loans (Credit Quality - Commercial Loans) | Credit Quality - Commercial Loans The Company categorizes commercial loan types into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes commercial loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category. Special Mention. Loans rated Special Mention are those that have potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk. Classified. Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans classified as Doubtful, which have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. |
Fair Value of Financial Instruments | Fair value of financial instruments: FASB ASC 820-10 defines fair value as 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. ASC 820-10 also establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The hierarchy is broken down into the following three levels, based on the reliability of inputs: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at 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 for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. The Company records the fair values of financial assets and liabilities on a recurring and non-recurring basis using the following methods and assumptions: Investment Securities Investment securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by 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 pricing relationship or correlation among other benchmark quoted securities. Investment securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale securities are classified within Level 3 of the fair value hierarchy. Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high-risk securities. Loans held for sale Loans held for sale are carried at fair value. Fair value is determined using current secondary market prices for loans with similar characteristics for the mortgage portfolio, that is, using Level 2 inputs. Commercial loans held for sale's fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. Derivatives The fair value of the Company's interest rate swap agreements to facilitate customer transactions are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. The fair value of interest rate lock commitments associated with the mortgage pipeline is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The fair values of the Company's designated cash flow and fair value hedges are determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair values of both the Company's hedges, including designated cash flow hedges and designated fair value hedges are based on pricing models that utilize observable market inputs. These financial instruments are classified as Level 2. OREO OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. OREO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3. Mortgage servicing rights MSRs are carried at fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. As such, MSRs are considered Level 3. Collateral dependent loans Collateral dependent loans are loans for which, based on current information and events, the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral and it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collateral dependent loans are classified as Level 3. For collateral dependent loans, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan's collateral is determined by third-party appraisals, which are then adjusted for estimated selling and closing costs related to liquidation of the collateral. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on changes in market conditions from the time of valuation and management's knowledge of the borrower and borrower's business. As of September 30, 2022 and December 31, 2021, total amortized cost of collateral dependent loans measured on a non-recurring basis amounted to $578 and $5,781, respectively. Other real estate owned acquired in settlement of indebtedness is recorded at fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Any write-downs based on the asset's fair value at the date of foreclosure are charged to the allowance for credit losses. Appraisals for both collateral dependent loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics. Collateral dependent loans that are dependent on recovery through sale of equipment, such as farm equipment, automobiles and aircrafts are generally valued based on public source pricing or subscription services while more complex assets are valued through leveraging brokers who have expertise in the collateral involved. |
Subsequent events | Subsequent events The Company has evaluated, for consideration of recognition or disclosure, subsequent events that occurred through the date of issuance of these financial statements. The Company has determined that there were no subsequent events that occurred after September 30, 2022, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share Calculation | The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic earnings per common share calculation: Net income applicable to FB Financial Corporation $ 31,831 $ 45,290 $ 86,412 $ 141,458 Dividends paid on and undistributed earnings allocated to participating securities — — — — Earnings available to common shareholders $ 31,831 $ 45,290 $ 86,412 $ 141,458 Weighted average basic shares outstanding 46,908,520 47,412,214 47,181,853 47,345,984 Basic earnings per common share $ 0.68 $ 0.96 $ 1.83 $ 2.99 Diluted earnings per common share: Earnings available to common shareholders $ 31,831 $ 45,290 $ 86,412 $ 141,458 Weighted average basic shares outstanding 46,908,520 47,412,214 47,181,853 47,345,984 Weighted average diluted shares contingently issuable (1) 116,091 594,933 133,247 637,510 Weighted average diluted shares outstanding 47,024,611 48,007,147 47,315,100 47,983,494 Diluted earnings per common share $ 0.68 $ 0.94 $ 1.83 $ 2.95 (1) Excludes 15,408 and 11,888 restricted stock units outstanding considered to be antidilutive for the three and nine months ended September 30, 2022 and 15,974 and 20,448 restricted stock units outstanding considered to be antidilutive for three and nine months ended September 30, 2021. |
Investment securities (Tables)
Investment securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost of Securities and Fair Values | The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income at September 30, 2022 and December 31, 2021: September 30, 2022 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 45,161 $ — $ (5,330) $ — $ 39,831 Mortgage-backed securities - residential 1,257,521 — (199,758) — 1,057,763 Mortgage-backed securities - commercial 19,453 — (1,606) — 17,847 Municipal securities 297,451 100 (45,408) — 252,143 U.S. Treasury securities 113,198 — (5,901) — 107,297 Corporate securities 8,001 — (711) — 7,290 Total $ 1,740,785 $ 100 $ (258,714) $ — $ 1,482,171 December 31, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 34,023 $ 18 $ (171) $ — $ 33,870 Mortgage-backed securities - residential 1,281,285 6,072 (17,985) — 1,269,372 Mortgage-backed securities - commercial 15,024 272 (46) — 15,250 Municipal securities 322,052 16,718 (160) — 338,610 U.S. Treasury securities 14,914 — (6) — 14,908 Corporate securities 6,500 40 (25) — 6,515 Total $ 1,673,798 $ 23,120 $ (18,393) $ — $ 1,678,525 |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Therefore, mortgage-backed securities are not included in the maturity categories in the following summary. September 30, December 31, 2022 2021 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 4,011 $ 3,962 $ 21,851 $ 21,884 Due in one to five years 155,637 146,428 54,847 55,307 Due in five to ten years 62,157 56,759 45,714 46,975 Due in over ten years 242,006 199,412 255,077 269,737 463,811 406,561 377,489 393,903 Mortgage-backed securities - residential 1,257,521 1,057,763 1,281,285 1,269,372 Mortgage-backed securities - commercial 19,453 17,847 15,024 15,250 Total debt securities $ 1,740,785 $ 1,482,171 $ 1,673,798 $ 1,678,525 |
Schedule of Sales and Other Dispositions of Available-for-Sale Securities | Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Proceeds from sales $ — $ 8,855 $ 1,218 $ 8,855 Proceeds from maturities, prepayments and calls 44,352 68,126 170,701 216,032 Gross realized gains 1 76 4 91 Gross realized losses — 1 — 1 |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: September 30, 2022 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. government agency securities $ 33,269 $ (4,207) $ 6,562 $ (1,123) $ 39,831 $ (5,330) Mortgage-backed securities - residential 570,554 (84,615) 487,209 (115,143) 1,057,763 (199,758) Mortgage-backed securities - commercial 16,709 (1,354) 1,138 (252) 17,847 (1,606) Municipal securities 238,067 (42,452) 8,533 (2,956) 246,600 (45,408) U.S. Treasury securities 107,297 (5,901) — — 107,297 (5,901) Corporate securities 7,290 (711) — — 7,290 (711) Total $ 973,186 $ (139,240) $ 503,442 $ (119,474) $ 1,476,628 $ (258,714) December 31, 2021 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 18,360 $ (171) $ — $ — $ 18,360 $ (171) Mortgage-backed securities - residential $ 871,368 $ (14,295) $ 102,799 $ (3,690) $ 974,167 $ (17,985) Mortgage-backed securities - commercial 7,946 (46) — — 7,946 (46) Municipal securities 11,414 (160) — — 11,414 (160) U.S. Treasury securities 14,908 (6) — — 14,908 (6) Corporate securities 4,119 (25) — — 4,119 (25) Total $ 928,115 $ (14,703) $ 102,799 $ (3,690) $ 1,030,914 $ (18,393) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding as of September 30, 2022 and December 31, 2021, by class of financing receivable are as follows: September 30, December 31, 2022 2021 Commercial and industrial (1) $ 1,534,159 $ 1,290,565 Construction 1,679,497 1,327,659 Residential real estate: 1-to-4 family mortgage 1,545,252 1,270,467 Residential line of credit 460,774 383,039 Multi-family mortgage 394,366 326,551 Commercial real estate: Owner-occupied 1,158,343 951,582 Non-owner occupied 1,954,219 1,730,165 Consumer and other 378,406 324,634 Gross loans 9,105,016 7,604,662 Less: Allowance for credit losses (134,476) (125,559) Net loans $ 8,970,540 $ 7,479,103 (1) Includes $851 and $3,990 of loans originated as part of the Paycheck Protection Program as of September 30, 2022 and December 31, 2021, respectively. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans. |
Schedule of Changes in Allowance for Credit Losses by Class of Financing Receivable | The following tables provide the changes in the allowance for credit losses by class of financing receivable for the three and nine months ended September 30, 2022 and 2021: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three months ended September 30, 2022 Beginning balance - June 30, 2022 $ 10,191 $ 38,383 $ 21,398 $ 6,875 $ 6,503 $ 7,329 $ 22,536 $ 13,057 $ 126,272 Provision for credit losses 5 3,044 3,975 77 (629) 688 247 782 8,189 Recoveries of loans previously charged-off 342 — 13 — — 51 — 70 476 Loans charged off — — (20) — — — — (441) (461) Ending balance - September 30, 2022 $ 10,538 $ 41,427 $ 25,366 $ 6,952 $ 5,874 $ 8,068 $ 22,783 $ 13,468 $ 134,476 Nine Months Ended September 30, 2022 Beginning balance - December 31, 2021 $ 15,751 $ 28,576 $ 19,104 $ 5,903 $ 6,976 $ 12,593 $ 25,768 $ 10,888 $ 125,559 Provision for credit losses (4,784) 12,840 6,266 1,032 (1,102) (4,601) (2,985) 3,575 10,241 Recoveries of loans previously charged-off 1,326 11 39 17 — 76 — 635 2,104 Loans charged off (1,755) — (43) — — — — (1,630) (3,428) Ending balance - September 30, 2022 $ 10,538 $ 41,427 $ 25,366 $ 6,952 $ 5,874 $ 8,068 $ 22,783 $ 13,468 $ 134,476 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended September 30, 2021 Beginning balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 Provision for loan losses 3,203 (3,080) (2,677) (952) (1,462) 7,665 (6,450) 921 (2,832) Recoveries of loans previously charged-off 19 3 33 1 — 4 — 169 229 Loans charged off (2,175) (1) — — — — — (438) (2,614) Ending balance - September 30, 2021 $ 14,838 $ 29,760 $ 17,028 $ 5,765 $ 12,013 $ 12,376 $ 36,406 $ 11,260 $ 139,446 Nine Months Ended September 30, 2021 Beginning balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 Provision for credit losses 2,667 (28,690) (2,141) (4,767) 4,839 7,384 (7,741) 1,100 (27,349) Recoveries of loans previously charged-off 235 3 98 16 — 143 — 554 1,049 Loans charged off (2,812) (30) (149) (18) — — — (1,634) (4,643) Ending balance - $ 14,838 $ 29,760 $ 17,028 $ 5,765 $ 12,013 $ 12,376 $ 36,406 $ 11,260 $ 139,446 |
Schedule of Credit Quality of Loan Portfolio by Year of Origination | The following tables present the credit quality of our commercial loan portfolio by year of origination as of September 30, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. As of September 30, 2022 Commercial Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 284,399 $ 220,172 $ 83,831 $ 96,337 $ 40,939 $ 63,998 $ 718,260 $ 1,507,936 Special Mention 26 355 — 375 151 — 2,732 3,639 Classified 65 1,220 2,106 1,593 451 9,015 8,134 22,584 Total 284,490 221,747 85,937 98,305 41,541 73,013 729,126 1,534,159 Construction Pass 570,166 569,425 215,636 71,706 18,027 46,794 183,738 1,675,492 Special Mention 428 — 18 — 7 2,530 — 2,983 Classified — 822 — — — — 200 1,022 Total 570,594 570,247 215,654 71,706 18,034 49,324 183,938 1,679,497 Residential real estate: Multi-family mortgage Pass 117,654 163,283 33,326 30,470 4,201 35,279 8,966 393,179 Special Mention — — — — — — — — Classified — — — — — 1,187 — 1,187 Total 117,654 163,283 33,326 30,470 4,201 36,466 8,966 394,366 Commercial real estate: Owner occupied Pass 215,250 231,038 117,751 159,546 78,881 266,021 66,718 1,135,205 Special Mention 103 1,293 — 1,470 2,294 390 — 5,550 Classified — — 241 5,992 1,282 9,418 655 17,588 Total 215,353 232,331 117,992 167,008 82,457 275,829 67,373 1,158,343 Non-owner occupied Pass 411,612 428,087 138,590 171,747 225,519 505,370 56,718 1,937,643 Special Mention — 1,015 — — 82 — — 1,097 Classified — — — 150 3,329 12,000 — 15,479 Total 411,612 429,102 138,590 171,897 228,930 517,370 56,718 1,954,219 Total commercial loans Pass 1,599,081 1,612,005 589,134 529,806 367,567 917,462 1,034,400 6,649,455 Special Mention 557 2,663 18 1,845 2,534 2,920 2,732 13,269 Classified 65 2,042 2,347 7,735 5,062 31,620 8,989 57,860 Total commercial loans $ 1,599,703 $ 1,616,710 $ 591,499 $ 539,386 $ 375,163 $ 952,002 $ 1,046,121 $ 6,720,584 As of December 31, 2021 Commercial Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 273,232 $ 95,279 $ 140,938 $ 52,162 $ 33,997 $ 57,020 $ 596,667 $ 1,249,295 Special Mention 79 9 949 632 3 1,519 12,367 15,558 Classified 918 2,391 2,376 3,089 3,370 6,425 7,143 25,712 Total 274,229 97,679 144,263 55,883 37,370 64,964 616,177 1,290,565 Construction Pass 677,258 280,828 135,768 23,916 15,313 67,818 117,176 1,318,077 Special Mention 62 184 — — 1,208 1,384 — 2,838 Classified — — 2,922 2,882 3 737 200 6,744 Total 677,320 281,012 138,690 26,798 16,524 69,939 117,376 1,327,659 Residential real estate: Multi-family mortgage Pass 166,576 32,242 64,345 7,124 5,602 38,526 10,891 325,306 Special Mention — — — — — — — — Classified — — — — — 1,245 — 1,245 Total 166,576 32,242 64,345 7,124 5,602 39,771 10,891 326,551 Commercial real estate: Owner occupied Pass 170,773 131,471 174,257 83,698 69,939 236,998 57,123 924,259 Special Mention — — 1,502 3,541 885 2,555 213 8,696 Classified — — 3,102 768 3,295 9,616 1,846 18,627 Total 170,773 131,471 178,861 88,007 74,119 249,169 59,182 951,582 Non-owner occupied Pass 462,478 154,048 165,917 264,855 170,602 414,859 46,541 1,679,300 Special Mention — — 3,747 3,388 — 969 — 8,104 Classified — — 1,898 23,849 1,506 15,508 — 42,761 Total 462,478 154,048 171,562 292,092 172,108 431,336 46,541 1,730,165 Total commercial loans Pass 1,750,317 693,868 681,225 431,755 295,453 815,221 828,398 5,496,237 Special Mention 141 193 6,198 7,561 2,096 6,427 12,580 35,196 Classified 918 2,391 10,298 30,588 8,174 33,531 9,189 95,089 Total commercial loans $ 1,751,376 $ 696,452 $ 697,721 $ 469,904 $ 305,723 $ 855,179 $ 850,167 $ 5,626,522 The following tables present the credit quality by classification (performing or nonperforming) of our consumer loan portfolio by year of origination as of September 30, 2022 and December 31, 2021. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. As of September 30, 2022 Consumer Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing 507,621 454,839 166,905 96,216 72,019 228,305 — 1,525,905 Nonperforming 1,039 4,379 3,940 2,020 1,731 6,238 — 19,347 Total 508,660 459,218 170,845 98,236 73,750 234,543 — 1,545,252 Residential line of credit Performing — — — — — — 458,894 458,894 Nonperforming — — — — — — 1,880 1,880 Total — — — — — — 460,774 460,774 Consumer and other Performing 107,264 61,291 44,898 32,694 28,416 86,524 9,564 370,651 Nonperforming 81 1,061 1,365 936 1,591 2,720 1 7,755 Total 107,345 62,352 46,263 33,630 30,007 89,244 9,565 378,406 Total consumer loans Performing 614,885 516,130 211,803 128,910 100,435 314,829 468,458 2,355,450 Nonperforming 1,120 5,440 5,305 2,956 3,322 8,958 1,881 28,982 Total consumer loans $ 616,005 $ 521,570 $ 217,108 $ 131,866 $ 103,757 $ 323,787 $ 470,339 $ 2,384,432 As of December 31, 2021 Consumer Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing 521,533 204,690 121,775 100,164 109,087 199,262 — 1,256,511 Nonperforming 1,232 3,734 977 2,429 1,765 3,819 — 13,956 Total 522,765 208,424 122,752 102,593 110,852 203,081 — 1,270,467 Residential line of credit Performing — — — — — — 381,303 381,303 Nonperforming — — — — — — 1,736 1,736 Total — — — — — — 383,039 383,039 Consumer and other Performing 82,910 55,123 38,281 32,893 21,856 74,248 14,478 319,789 Nonperforming 199 345 545 1,352 861 1,496 47 4,845 Total 83,109 55,468 38,826 34,245 22,717 75,744 14,525 324,634 Total consumer loans Performing 604,443 259,813 160,056 133,057 130,943 273,510 395,781 1,957,603 Nonperforming 1,431 4,079 1,522 3,781 2,626 5,315 1,783 20,537 Total consumer loans $ 605,874 $ 263,892 $ 161,578 $ 136,838 $ 133,569 $ 278,825 $ 397,564 $ 1,978,140 |
Schedule of Analysis of Aging by Class of Financing Receivable | The following tables represent an analysis of the aging by class of financing receivable as of September 30, 2022 and December 31, 2021: September 30, 2022 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 1,812 $ 38 $ 1,730 $ 1,530,579 $ 1,534,159 Construction 1,916 — — 1,677,581 1,679,497 Residential real estate: 1-to-4 family mortgage 16,994 13,767 5,580 1,508,911 1,545,252 Residential line of credit 542 209 1,671 458,352 460,774 Multi-family mortgage — — 44 394,322 394,366 Commercial real estate: Owner occupied 982 — 4,873 1,152,488 1,158,343 Non-owner occupied 293 — 6,960 1,946,966 1,954,219 Consumer and other 8,057 1,988 5,767 362,594 378,406 Total $ 30,596 $ 16,002 $ 26,625 $ 9,031,793 $ 9,105,016 December 31, 2021 30-89 days 90 days or Non-accrual Loans current on payments and accruing interest Total Commercial and industrial $ 1,030 $ 63 $ 1,520 $ 1,287,952 $ 1,290,565 Construction 4,852 718 3,622 1,318,467 1,327,659 Residential real estate: 1-to-4 family mortgage 11,007 9,363 4,593 1,245,504 1,270,467 Residential line of credit 319 — 1,736 380,984 383,039 Multi-family mortgage — — 49 326,502 326,551 Commercial real estate: Owner occupied 1,417 — 6,710 943,455 951,582 Non-owner occupied 427 — 14,084 1,715,654 1,730,165 Consumer and other 7,398 1,591 3,254 312,391 324,634 Total $ 26,450 $ 11,735 $ 35,568 $ 7,530,909 $ 7,604,662 |
Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans | The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of September 30, 2022 and December 31, 2021 by class of financing receivable. September 30, 2022 Non-accrual Non-accrual Related Commercial and industrial $ 1,228 $ 502 $ 3 Residential real estate: 1-to-4 family mortgage 1,537 4,043 73 Residential line of credit 1,070 601 9 Multi-family mortgage — 44 1 Commercial real estate: Owner occupied 4,710 163 1 Non-owner occupied 6,751 209 4 Consumer and other — 5,767 291 Total $ 15,296 $ 11,329 $ 382 December 31, 2021 Non-accrual Non-accrual Related Commercial and industrial $ 1,085 $ 435 $ 6 Construction 2,882 740 99 Residential real estate: 1-to-4 family mortgage 378 4,215 60 Residential line of credit 797 939 11 Multi-family mortgage — 49 2 Commercial real estate: Owner occupied 5,346 1,364 206 Non-owner occupied 13,898 186 7 Consumer and other — 3,254 164 Total $ 24,386 $ 11,182 $ 555 The following presents interest income recognized on non-accrual loans for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Commercial and industrial $ 26 $ 190 $ 163 $ 523 Construction 5 75 31 105 Residential real estate: 1-to-4 family mortgage 78 114 185 199 Residential line of credit 37 197 98 242 Multi-family mortgage — — 2 2 Commercial real estate: Owner occupied 61 187 149 419 Non-owner occupied 89 123 235 353 Consumer and other 113 75 182 130 Total $ 409 $ 961 $ 1,045 $ 1,973 |
Schedule of Financial Effect of TDRs | The following tables present the financial effect of TDRs recorded during the periods indicated: Three Months Ended September 30, 2022 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 207 $ 117 $ — Residential real estate: 1-to-4 family mortgage 1 $ 252 $ 568 $ — Total 2 $ 459 $ 685 $ — Nine Months Ended September 30, 2022 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 262 $ 172 $ — Residential real estate: 1-to-4 family mortgage 2 332 648 — Residential line of credit 1 49 49 — Consumer and other 1 22 22 — Total 6 $ 665 $ 891 $ — Three Months Ended September 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 134 134 — Total 1 $ 134 $ 134 $ — Nine Months Ended September 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 5 $ 13,162 $ 13,162 $ — Commercial real estate: Owner occupied 4 3,550 3,550 — Non-owner occupied 1 11,997 11,997 — Residential real estate: 1-4 family mortgage 3 945 945 — Residential line of credit 1 11 11 — Total 14 $ 29,665 $ 29,665 $ — |
Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans | For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status. September 30, 2022 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 1,228 $ 787 $ 2,015 $ — Residential real estate: 1-to-4 family mortgage 1,192 — 1,192 205 Residential line of credit 1,069 — 1,069 — Commercial real estate: Owner occupied 5,823 — 5,823 — Non-owner occupied 6,751 — 6,751 — Consumer and other 139 — 139 — Total $ 16,202 $ 787 $ 16,989 $ 205 December 31, 2021 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 799 $ 1,090 $ 1,889 $ — Construction 3,580 — 3,580 92 Residential real estate: 1-to-4 family mortgage 338 — 338 — Residential line of credit 1,400 — 1,400 10 Commercial real estate: Owner occupied 8,117 71 8,188 200 Non-owner occupied 13,899 — 13,899 — Consumer and other 25 — 25 1 Total $ 28,158 $ 1,161 $ 29,319 $ 303 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Other Real Estate Owned | The following table summarizes the other real estate owned for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Balance at beginning of period $ 9,398 $ 11,986 $ 9,777 $ 12,111 Transfers from loans 421 349 984 4,945 Proceeds from sale of other real estate (4,335) (4,173) (4,753) (8,834) Gain (loss) on sale of other real estate owned 483 2,090 353 3,190 Loans provided for sales of other real — (152) — (685) Write-downs and partial liquidations (48) (85) (442) (712) Balance at end of period $ 5,919 $ 10,015 $ 5,919 $ 10,015 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Information Related to Company's Leases and Lease Expense | Information related to the Company's leases is presented below as of September 30, 2022 and December 31, 2021: September 30, December 31, Classification 2022 2021 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 61,444 $ 41,686 Finance leases Premises and equipment, net 1,394 1,487 Total right-of-use assets $ 62,838 $ 43,173 Lease liabilities: Operating leases Operating lease liabilities $ 70,610 $ 46,367 Finance leases Borrowings 1,443 1,518 Total lease liabilities $ 72,053 $ 47,885 Weighted average remaining lease term (in years) - 12.2 12.4 Weighted average remaining lease term (in years) - 12.6 13.4 Weighted average discount rate - operating 3.05 % 2.73 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Three Months Ended Nine Months Ended September 30, September 30, Classification 2022 2021 2022 2021 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 2,269 $ 1,838 $ 5,830 $ 5,948 Short-term lease cost Occupancy and equipment 132 107 387 296 Variable lease cost Occupancy and equipment 215 284 764 760 Lease impairment Mortgage restructuring expense — — 364 — Gain on lease modifications and Occupancy and equipment — (14) (18) (801) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 7 7 22 21 Amortization of right-of-use asset Occupancy and equipment 27 28 92 83 Total lease cost $ 2,650 $ 2,250 $ 7,441 $ 6,307 |
Schedule of Maturity Analysis of Operating Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of September 30, 2022 is as follows: Operating Finance Leases Lease Lease payments due: September 30, 2023 $ 7,508 $ 29 September 30, 2024 8,257 118 September 30, 2025 7,797 120 September 30, 2026 7,650 121 September 30, 2027 7,449 123 Thereafter 48,089 1,102 Total undiscounted future minimum lease payments 86,750 1,613 Less: imputed interest (16,140) (170) Lease liability $ 70,610 $ 1,443 |
Schedule of Maturity of Finance Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of September 30, 2022 is as follows: Operating Finance Leases Lease Lease payments due: September 30, 2023 $ 7,508 $ 29 September 30, 2024 8,257 118 September 30, 2025 7,797 120 September 30, 2026 7,650 121 September 30, 2027 7,449 123 Thereafter 48,089 1,102 Total undiscounted future minimum lease payments 86,750 1,613 Less: imputed interest (16,140) (170) Lease liability $ 70,610 $ 1,443 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Changes in Mortgage Servicing Rights | Changes in the Company’s mortgage servicing rights were as follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Carrying value at beginning of period $ 158,678 $ 101,615 $ 115,512 $ 79,997 Capitalization 4,453 9,215 19,523 31,382 Change in fair value: Due to pay-offs/pay-downs (3,670) (7,302) (13,165) (24,488) Due to change in valuation inputs or assumptions 11,966 7,063 49,557 23,700 Carrying value at end of period $ 171,427 $ 110,591 $ 171,427 $ 110,591 |
Schedule of Servicing Income and Expense Included in Mortgage Banking Income | The following table summarizes servicing income and expense, which are included in 'Mortgage banking income' and 'Other noninterest expense', respectively, within the Mortgage segment operating results for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Servicing income: Servicing income $ 8,104 $ 7,539 $ 23,499 $ 21,258 Change in fair value of mortgage servicing rights 8,296 (239) 36,392 (788) Change in fair value of derivative hedging instruments (12,641) (2,128) (41,636) (9,987) Servicing income 3,759 5,172 18,255 10,483 Servicing expenses 1,923 2,156 7,848 7,381 Net servicing income (1) $ 1,836 $ 3,016 $ 10,407 $ 3,102 (1) Excludes benefit of custodial servicing related noninterest-bearing deposits held by the Bank. |
Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights | Data and key economic assumptions related to the Company’s mortgage servicing rights as of September 30, 2022 and December 31, 2021 are as follows: September 30, December 31, 2022 2021 Unpaid principal balance $ 11,233,249 $ 10,759,286 Weighted-average prepayment speed (CPR) 5.40 % 9.31 % Estimated impact on fair value of a 10% increase $ (4,751) $ (4,905) Estimated impact on fair value of a 20% increase $ (9,191) $ (9,429) Discount rate 9.6 % 9.81 % Estimated impact on fair value of a 100 bp increase $ (8,164) $ (4,785) Estimated impact on fair value of a 200 bp increase $ (15,623) $ (9,198) Weighted-average coupon interest rate 3.29 % 3.23 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 331 330 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | An allocation of federal and state income taxes between current and deferred portions is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Current $ 5,513 $ 2,350 $ 9,082 $ 17,840 Deferred 3,418 7,366 15,879 20,904 Total $ 8,931 $ 9,716 $ 24,961 $ 38,744 |
Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes | The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Federal taxes calculated at statutory rate $ 8,560 21.0 % $ 11,551 21.0 % $ 23,390 21.0 % $ 37,844 21.0 % Increase (decrease) resulting from: State taxes, net of federal 1,018 2.5 % 3,279 6.0 % 3,551 3.2 % 6,908 3.8 % Benefit from equity based (82) (0.2) % (1,784) (3.2) % (388) (0.3) % (2,129) (1.2) % Municipal interest income, (443) (1.1) % (416) (0.8) % (1,331) (1.2) % (1,259) (0.7) % Bank-owned life insurance (78) (0.2) % (74) (0.1) % (231) (0.2) % (240) (0.1) % NOL Carryback provision — — % (3,424) (6.2) % — — % (3,424) (1.9) % Offering costs — — % — — % — — % 127 0.1 % Section 162(m) limitation 39 0.1 % 1,065 1.9 % 201 0.2 % 1,313 0.7 % Other (83) (0.2) % (481) (0.9) % (231) (0.3) % (396) (0.2) % Income tax expense, as $ 8,931 21.9 % $ 9,716 17.7 % $ 24,961 22.4 % $ 38,744 21.5 % |
Schedule of Net Deferred Tax Assets (Liabilities) | The components of the net deferred tax assets (liabilities) at September 30, 2022 and December 31, 2021, are as follows: September 30, December 31, 2022 2021 Deferred tax assets: Allowance for credit losses $ 39,064 $ 35,233 Operating lease liabilities 18,774 12,478 Net operating loss 1,158 1,370 Amortization of core deposit intangibles 403 — Deferred compensation 4,390 5,484 Unrealized loss on debt securities 67,253 — Unrealized loss on cash flow hedges — 205 Other assets 4,891 8,301 Subtotal 135,933 63,071 Deferred tax liabilities: FHLB stock dividends $ (484) $ (484) Operating leases - right of use assets (17,386) (11,287) Depreciation (7,335) (7,938) Amortization of core deposit intangibles — (116) Unrealized gain on equity securities (2,297) (2,407) Unrealized gain on cash flow hedges (313) — Unrealized gain on debt securities — (1,324) Mortgage servicing rights (44,667) (30,098) Goodwill (15,338) (13,743) Other liabilities (2,753) (2,494) Subtotal (90,573) (69,891) Net deferred tax assets (liabilities) $ 45,360 $ (6,820) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | September 30, December 31, 2022 2021 Commitments to extend credit, excluding interest rate lock commitments $ 3,686,559 $ 3,106,594 Letters of credit 64,692 77,427 Balance at end of period $ 3,751,251 $ 3,184,021 |
Schedule of Allowance of Credit Losses on Unfunded Commitments | The table below presents activity within the allowance for credit losses on unfunded commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Balance at beginning of period $ 20,399 $ 13,202 $ 14,380 $ 16,378 Provision for credit losses on unfunded commitments 3,178 301 9,197 (2,875) Balance at end of period $ 23,577 $ 13,503 $ 23,577 $ 13,503 |
Schedule of Activity in the Repurchase Reserve | The following table summarizes the activity in the repurchase reserve included in accrued expenses and other liabilities on the Company's consolidated balance sheets: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Balance at beginning of period $ 3,445 $ 5,489 $ 4,802 $ 5,928 Provision for loan repurchases or indemnifications (800) — (1,989) (266) Losses on loans repurchased or indemnified 16 (120) (152) (293) Balance at end of period $ 2,661 $ 5,369 $ 2,661 $ 5,369 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: September 30, 2022 Notional Amount Asset Liability Interest rate contracts $ 529,801 $ 45,775 $ 45,762 Forward commitments 294,000 7,017 — Interest rate-lock commitments 188,430 — 222 Futures contracts 484,700 — 3,542 Total $ 1,496,931 $ 52,792 $ 49,526 December 31, 2021 Notional Amount Asset Liability Interest rate contracts $ 600,048 $ 19,265 $ 19,138 Forward commitments 1,180,000 — 1,077 Interest rate-lock commitments 487,396 7,197 — Futures contracts 429,000 922 — Total $ 2,696,444 $ 27,384 $ 20,215 The following presents a summary of the Company's designated cash flow hedges as of the dates presented: September 30, 2022 December 31, 2021 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 1,198 Other assets $ (785) Accrued expenses and other liabilities September 30, 2022 Notional Amount Remaining Maturity (In Years) Receive Fixed Rate Pay Floating Rate Estimated fair value Derivatives included in other liabilities: Interest rate swap $ 100,000 1.42 1.46% SOFR $ (3,831) Interest rate swap 75,000 1.89 1.50% SOFR (3,816) Interest rate swap 125,000 1.89 1.50% SOFR (6,359) Total $ 300,000 1.73 1.48% $ (14,006) |
Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments | ains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Included in mortgage banking income: Interest rate lock commitments $ (3,980) $ (3,316) $ (7,419) $ (24,587) Forward commitments 4,795 (806) 57,130 23,252 Futures contracts (10,105) (2,152) (35,805) (9,380) Option contracts — — 36 — Total $ (9,290) $ (6,274) $ 13,942 $ (10,715) The following discloses the amount included in other comprehensive loss, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amount of gain recognized in other comprehensive loss, net of tax expense of $145, $38, $517 and $173 $ 409 $ 106 $ 1,466 $ 489 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following discloses the amount of (expense) income included in interest expense on borrowings and deposits, related to these fair value hedging instruments: Three Months Ended September 30, Nine Months Ended September 30, 2022 2022 Designated fair value hedge: Interest expense on deposits $ (331) $ 377 Interest expense on borrowings (181) 167 Total $ (512) $ 544 |
Schedule of Derivative Liabilities at Fair Value | The following amounts were recorded on the balance sheet related to cumulative adjustments for fair value hedges as of September 30, 2022: Line item on the balance sheet Carrying Amount of the Hedged Item Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item Borrowings $ 95,074 (1) $ (3,831) Money market and savings deposits 197,124 (2) (10,175) (1) The carrying value also includes unamortized subordinated debt issuance costs of $1,095. (2) The carrying value also includes an unaccreted purchase accounting fair value premium of $7,299. |
Schedule of Offsetting Assets | The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Gross amounts recognized $ 46,973 $ 4,990 $ 20,272 $ 15,733 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 46,973 4,990 20,272 15,733 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 14,100 4,297 14,100 4,297 Less: financial collateral pledged — — 6,172 11,436 Net amounts $ 32,873 $ 693 $ — $ — |
Schedule of Offsetting Liabilities | The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Gross amounts recognized $ 46,973 $ 4,990 $ 20,272 $ 15,733 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 46,973 4,990 20,272 15,733 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 14,100 4,297 14,100 4,297 Less: financial collateral pledged — — 6,172 11,436 Net amounts $ 32,873 $ 693 $ — $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values and Carrying Values of Financial Instruments | The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Fair Value September 30, 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 618,290 $ 618,290 $ — $ — $ 618,290 Investment securities 1,485,133 — 1,485,133 — 1,485,133 Loans, net 8,970,540 — — 8,859,226 8,859,226 Loans held for sale 130,733 — 97,011 33,722 130,733 Interest receivable 39,034 107 6,546 32,381 39,034 Mortgage servicing rights 171,427 — — 171,427 171,427 Derivatives 53,990 — 53,990 — 53,990 Financial liabilities: Deposits: Without stated maturities $ 8,843,012 $ 8,843,012 $ — $ — $ 8,843,012 With stated maturities 1,163,070 — 1,158,686 — 1,158,686 Securities sold under agreement to repurchase and federal funds sold 29,008 29,008 — — 29,008 Federal Home Loan Bank advances 540,000 — 540,000 — 540,000 Subordinated debt 126,004 — — 117,263 117,263 Interest payable 3,927 730 2,822 375 3,927 Derivatives 63,532 — 63,532 — 63,532 Fair Value December 31, 2021 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,797,740 $ 1,797,740 $ — $ — $ 1,797,740 Investment securities 1,681,892 — 1,681,892 — 1,681,892 Loans, net 7,479,103 — — 7,566,717 7,566,717 Loans held for sale 752,223 — 672,924 79,299 752,223 Interest receivable 38,528 36 6,461 32,031 38,528 Mortgage servicing rights 115,512 — — 115,512 115,512 Derivatives 27,384 — 27,384 — 27,384 Financial liabilities: Deposits: Without stated maturities $ 9,705,816 $ 9,705,816 $ — $ — $ 9,705,816 With stated maturities 1,131,081 — 1,137,647 — 1,137,647 Securities sold under agreement to repurchase and federal funds sold 40,716 40,716 — — 40,716 Subordinated debt 129,544 — — 133,021 133,021 Interest payable 3,162 140 1,510 1,512 3,162 Derivatives 21,000 — 21,000 — 21,000 |
Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets measured at fair value on a recurring basis at September 30, 2022 are presented in the following table: At September 30, 2022 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 39,831 $ — $ 39,831 Mortgage-backed securities - residential — 1,057,763 — 1,057,763 Mortgage-backed securities - commercial — 17,847 — 17,847 Municipal securities — 252,143 — 252,143 Treasury securities — 107,297 — 107,297 Corporate securities — 7,290 — 7,290 Equity securities, at fair value — 2,962 — 2,962 Total securities $ — $ 1,485,133 $ — $ 1,485,133 Loans held for sale $ — $ 97,011 $ 33,722 $ 130,733 Mortgage servicing rights — — 171,427 171,427 Derivatives — 53,990 — 53,990 Financial Liabilities: Derivatives — 63,532 — 63,532 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2021 are presented in the following table: At December 31, 2021 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 33,870 $ — $ 33,870 Mortgage-backed securities - residential — 1,269,372 — 1,269,372 Mortgage-backed securities - commercial — 15,250 — 15,250 Municipal securities — 338,610 — 338,610 Treasury securities — 14,908 — 14,908 Corporate securities — 6,515 — 6,515 Equity securities, at fair value — 3,367 — 3,367 Total securities $ — $ 1,681,892 $ — $ 1,681,892 Loans held for sale $ — $ 672,924 $ 79,299 $ 752,223 Mortgage servicing rights — — 115,512 115,512 Derivatives — 27,384 — 27,384 Financial Liabilities: Derivatives — 21,000 — 21,000 |
Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis | The balances and levels of the assets measured at fair value on a non-recurring basis at September 30, 2022 are presented in the following table: At September 30, 2022 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,193 $ 2,193 Collateral dependent loans: Commercial and industrial $ — $ — $ 12 $ 12 Residential real estate: 1-4 family mortgage — — 362 362 Total collateral dependent loans $ — $ — $ 374 $ 374 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2021 are presented in the following table: At December 31, 2021 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 6,308 $ 6,308 Collateral dependent loans: Construction — — 606 606 Residential real estate: Residential line of credit — — 592 592 Commercial real estate: Owner occupied — — 729 729 Non-owner occupied — — 3,526 3,526 Consumer and other — — 24 24 Total collateral dependent loans $ — $ — $ 5,477 $ 5,477 |
Schedule of Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis | The following tables present information as of September 30, 2022 and December 31, 2021 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: As of September 30, 2022 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 374 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 2,193 Appraised value of property less costs to sell Discount for costs to sell 0%-15% As of December 31, 2021 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 5,477 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 6,308 Appraised value of property less costs to sell Discount for costs to sell 0%-15% |
Schedule of Loans Held For Sale at Fair Value | The following table summarizes the Company's loans held for sale as of the dates presented: September 30, December 31, 2022 2021 Commercial loans held for sale, at fair value $ 33,722 $ 79,299 Mortgage loans held for sale: Mortgage loans held for sale, at fair value 70,526 672,924 Mortgage loans held for sale - guaranteed GNMA repurchase option 26,485 — Total loans held for sale $ 130,733 $ 752,223 |
Schedule of Changes in Associated with Commercial Loans Held For Sale | The following tables sets forth the changes in fair value associated with this portfolio for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, 2022 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 47,462 $ (9,647) $ 37,815 Change in fair value: Pay-downs and pay-offs (3,706) — (3,706) Write-offs to discount (8,729) 8,729 — Changes in valuation included in other noninterest income — (387) (387) Carrying value at end of period $ 35,027 $ (1,305) $ 33,722 Nine Months Ended September 30, 2022 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 86,762 $ (7,463) $ 79,299 Change in fair value: Pay-downs and pay-offs (43,006) (43,006) Write-offs to discount (8,729) 8,729 — Changes in valuation included in other noninterest income — (2,571) (2,571) Carrying value at end of period $ 35,027 $ (1,305) $ 33,722 Three Months Ended September 30, 2021 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 135,972 $ (11,850) $ 124,122 Change in fair value: Pay-downs and pay-offs (24,366) — (24,366) Changes in valuation included in other noninterest income — 740 740 Carrying value at end of period $ 111,606 $ (11,110) $ 100,496 Nine Months Ended September 30, 2021 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 239,063 $ (23,660) $ 215,403 Change in fair value: Pay-downs and pay-offs (116,158) — (116,158) Write-offs to discount (11,299) 11,299 — Changes in valuation included in other noninterest income — 1,251 1,251 Carrying value at end of period $ 111,606 $ (11,110) $ 100,496 |
Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value | The following table summarizes the differences between the fair value and the principal balance for loans held for sale and nonaccrual loans measured at fair value as of September 30, 2022 and December 31, 2021: September 30, 2022 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 70,526 $ 72,098 $ (1,572) Commercial loans held for sale measured at fair value 33,722 35,027 (1,305) Nonaccrual commercial loans held for sale — — — December 31, 2021 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 672,924 $ 658,017 $ 14,907 Commercial loans held for sale measured at fair value 74,082 76,863 (2,781) Nonaccrual commercial loans held for sale 5,217 9,899 (4,682) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Direct-to-Consumer Channel Volume | nterest rate lock commitment volume and sales volume by line of business for the three and nine months ended September 30, 2022 and 2021 is as follows: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Interest rate lock commitment volume by line of Direct-to-consumer $ — $ 1,085,180 $ 663,848 $ 2,948,530 Retail 408,879 926,723 1,755,008 2,726,956 Total $ 408,879 $ 2,011,903 $ 2,418,856 $ 5,675,486 Interest rate lock commitment volume % by line of Direct-to-consumer — % 53.9 % 27.4 % 52.0 % Retail 100.0 % 46.1 % 72.6 % 48.0 % Mortgage sales by line of business: Direct-to-consumer $ 48,490 $ 809,887 $ 1,024,838 $ 2,562,681 Retail 521,165 726,010 1,698,987 2,226,795 Total $ 569,655 $ 1,535,897 $ 2,723,825 $ 4,789,476 Mortgage sales % by line of business: Direct-to-consumer 8.5 % 52.7 % 37.6 % 53.5 % Retail 91.5 % 47.3 % 62.4 % 46.5 % |
Schedule of Segment Financial Information | The following tables provide segment financial information for the periods indicated: Three Months Ended September 30, 2022 Banking (4) Mortgage Consolidated Net interest income $ 111,384 $ — $ 111,384 Provisions for credit losses (1) 11,367 — 11,367 Mortgage banking income (2) — 16,729 16,729 Change in fair value of mortgage servicing rights, net of hedging (2) — (4,345) (4,345) Other noninterest income 10,293 (85) 10,208 Depreciation and amortization 1,867 190 2,057 Amortization of intangibles 1,108 — 1,108 Other noninterest expense 62,911 15,771 78,682 Income (loss) before income taxes $ 44,424 $ (3,662) $ 40,762 Income tax expense 8,931 Net income applicable to FB Financial Corporation and noncontrolling interest 31,831 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 31,831 Total assets $ 11,648,610 $ 609,472 $ 12,258,082 Goodwill 242,561 — 242,561 (1) Includes $3,178 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Three Months Ended September 30, 2021 Banking (3) Mortgage Consolidated Net interest income $ 88,576 $ (100) $ 88,476 Provisions for credit losses (1) (2,531) — (2,531) Mortgage banking income (2) — 47,751 47,751 Change in fair value of mortgage servicing rights, net of hedging (2) — (2,367) (2,367) Other noninterest income 13,823 (201) 13,622 Depreciation and amortization 1,791 349 2,140 Amortization of intangibles 1,344 — 1,344 Other noninterest expense 55,642 35,881 91,523 Income before income taxes $ 46,153 $ 8,853 $ 55,006 Income tax expense 9,716 Net income applicable to FB Financial Corporation and noncontrolling 45,290 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 45,290 Total assets $ 10,712,281 $ 1,098,009 $ 11,810,290 Goodwill 242,561 — 242,561 (1) Includes $301 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Nine Months Ended September 30, 2022 Banking (4) Mortgage Consolidated Net interest income $ 301,739 $ (2) $ 301,737 Provisions for credit losses (1) 19,438 — 19,438 Mortgage banking income (2) — 69,718 69,718 Change in fair value of mortgage servicing rights, net of hedging (2) — (5,244) (5,244) Other noninterest income 32,975 (251) 32,724 Depreciation and amortization 5,308 797 6,105 Amortization of intangibles 3,546 — 3,546 Other noninterest expense (3) 175,936 82,529 258,465 Income (loss) before income taxes $ 130,486 $ (19,105) $ 111,381 Income tax expense 24,961 Net income applicable to FB Financial Corporation and noncontrolling interest 86,420 Net income applicable to noncontrolling interest (4) 8 Net income applicable to FB Financial Corporation $ 86,412 Total assets $ 11,648,610 $ 609,472 $ 12,258,082 Goodwill 242,561 — 242,561 (1) Includes $9,197 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Includes $12,458 in Mortgage restructuring expenses in the Mortgage segment related to the exit from the direct-to-consumer delivery channel. (4) Banking segment includes noncontrolling interest. Nine Months Ended September 30, 2021 Banking (3) Mortgage Consolidated Net interest income $ 257,726 $ (111) $ 257,615 Provisions for credit losses (1) (30,224) — (30,224) Mortgage banking income (2) — 146,990 146,990 Change in fair value of mortgage servicing rights, net of hedging (2) — (10,775) (10,775) Other noninterest income 39,223 (402) 38,821 Depreciation and amortization 5,267 1,021 6,288 Amortization of intangibles 4,178 — 4,178 Other noninterest expense (3) 163,261 108,938 272,199 Income before income taxes $ 154,467 $ 25,743 $ 180,210 Income tax expense 38,744 Net income applicable to FB Financial Corporation and noncontrolling interest 141,466 Net income applicable to noncontrolling interest (3) 8 Net income applicable to FB Financial Corporation $ 141,458 Total assets $ 10,712,281 $ 1,098,009 $ 11,810,290 Goodwill 242,561 — 242,561 (1) Includes $(2,875) in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are included below as of the dates indicated. As oAs of September 30, 2022 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,501,110 13.0 % $ 1,210,236 10.5 % N/A N/A FirstBank 1,472,955 12.8 % 1,208,502 10.5 % $ 1,150,954 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,287,489 11.2 % $ 979,715 8.5 % N/A N/A FirstBank 1,259,334 10.9 % 978,311 8.5 % $ 920,764 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,287,489 10.7 % $ 479,489 4.0 % N/A N/A FirstBank 1,259,334 10.5 % 479,290 4.0 % $ 599,113 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,257,489 10.9 % $ 806,824 7.0 % N/A N/A FirstBank 1,259,334 10.9 % 805,668 7.0 % $ 748,120 6.5 % As of December 31, 2021 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,434,581 14.5 % $ 1,039,984 10.5 % N/A N/A FirstBank 1,396,407 14.1 % 1,038,760 10.5 % $ 989,295 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,251,874 12.6 % $ 841,892 8.5 % N/A N/A FirstBank 1,213,700 12.3 % 840,901 8.5 % $ 791,436 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,251,874 10.5 % $ 474,831 4.0 % N/A N/A FirstBank 1,213,700 10.2 % 474,044 4.0 % $ 592,555 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,221,874 12.3 % $ 693,322 7.0 % N/A N/A FirstBank 1,213,700 12.3 % 692,507 7.0 % $ 643,042 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock Units | The following table summarizes information about the changes in restricted stock units for the nine months ended September 30, 2022. Restricted Stock Weighted Balance at beginning of period (unvested) 492,320 $ 36.06 Granted 143,036 43.74 Vested (202,652) 36.12 Forfeited (46,496) 34.51 Balance at end of period (unvested) 386,208 $ 38.99 |
Schedule of Changes in Performance Stock Units | The following table summarizes information about the changes in PSUs as of and for the nine months ended September 30, 2022. Performance Stock Weighted Balance at beginning of period (unvested) 115,750 $ 40.13 Granted 69,291 44.44 Vested — — Forfeited or expired (10,659) 42.76 Balance at end of period (unvested) 174,382 $ 41.68 |
Share-Based Payment Arrangement, Performance Shares, Activity | As of September 30, 2022, the Company determined the probability of meeting the performance criteria for each grant and recorded compensation cost associated when factoring in the conversion of PSUs to shares of common stock. Grant Year Vest Year Shares Outstanding 2020 2023 49,964 2021 2024 59,496 2022 2025 64,922 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests | An analysis of loans to executive officers, certain management, and directors of the Bank and their related interests is presented below: Loans outstanding at January 1, 2022 $ 29,010 New loans and advances 55,428 Change in related party status (9,939) Repayments (2,345) Loans outstanding at September 30, 2022 $ 72,154 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) branch | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Number of full-service branches | branch | 82 |
Percent of remaining principal allowed to buy back under GNMA optional repurchase programs | 100% |
GNMA | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Optional rights to repurchase loans | $ | $ 26,485 |
Basis of Presentation - Basic a
Basis of Presentation - Basic and Diluted Earnings Per Common Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic earnings per common share calculation: | ||||
Net income applicable to FB Financial Corporation | $ 31,831 | $ 45,290 | $ 86,412 | $ 141,458 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 |
Earnings available to common shareholders | $ 31,831 | $ 45,290 | $ 86,412 | $ 141,458 |
Weighted average basic shares outstanding (in shares) | 46,908,520 | 47,412,214 | 47,181,853 | 47,345,984 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.68 | $ 0.96 | $ 1.83 | $ 2.99 |
Diluted earnings per common share: | ||||
Earnings available to common shareholders | $ 31,831 | $ 45,290 | $ 86,412 | $ 141,458 |
Weighted average basic shares outstanding (in shares) | 46,908,520 | 47,412,214 | 47,181,853 | 47,345,984 |
Weighted average diluted shares contingently issuable (in shares) | 116,091 | 594,933 | 133,247 | 637,510 |
Weighted average diluted shares outstanding (in shares) | 47,024,611 | 48,007,147 | 47,315,100 | 47,983,494 |
Diluted (loss) earnings per common share (in dollars per share) | $ 0.68 | $ 0.94 | $ 1.83 | $ 2.95 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Restricted stock units outstanding considered to be antidilutive (in shares) | 15,408 | 15,974 | 11,888 | 20,448 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of Securities (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 1,740,785,000 | $ 1,673,798,000 |
Gross unrealized gains | 100,000 | 23,120,000 |
Gross unrealized losses | (258,714,000) | (18,393,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 1,482,171,000 | 1,678,525,000 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 45,161,000 | 34,023,000 |
Gross unrealized gains | 0 | 18,000 |
Gross unrealized losses | (5,330,000) | (171,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 39,831,000 | 33,870,000 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 1,257,521,000 | 1,281,285,000 |
Gross unrealized gains | 0 | 6,072,000 |
Gross unrealized losses | (199,758,000) | (17,985,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 1,057,763,000 | 1,269,372,000 |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 19,453,000 | 15,024,000 |
Gross unrealized gains | 0 | 272,000 |
Gross unrealized losses | (1,606,000) | (46,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 17,847,000 | 15,250,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 297,451,000 | 322,052,000 |
Gross unrealized gains | 100,000 | 16,718,000 |
Gross unrealized losses | (45,408,000) | (160,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 252,143,000 | 338,610,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 113,198,000 | 14,914,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (5,901,000) | (6,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 107,297,000 | 14,908,000 |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 8,001,000 | 6,500,000 |
Gross unrealized gains | 0 | 40,000 |
Gross unrealized losses | (711,000) | (25,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | $ 7,290,000 | $ 6,515,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) security | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) security | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Accrued interest receivable | $ 39,034,000 | $ 39,034,000 | $ 38,528,000 | |||||
Marketable securities at fair value | 2,962,000 | 2,962,000 | 3,367,000 | |||||
Trade date receivable - securities | 0 | 0 | ||||||
Net (loss) gain on change in fair value and sale of equity securities | (141,000) | $ (24,000) | (405,000) | $ 188,000 | ||||
Allowance for credit losses for investments | $ 0 | $ 0 | $ 0 | |||||
Number of securities in securities portfolio | security | 504 | 504 | 511 | |||||
Number of securities in securities portfolio, unrealized loss position | security | 487 | 487 | 80 | |||||
Unrealized loss position | $ 1,476,628,000 | $ 1,476,628,000 | $ 1,030,914,000 | |||||
Collateral Pledged | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Securities pledged | 1,213,747,000 | 1,213,747,000 | 1,226,646,000 | |||||
Debt Securities | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Accrued interest receivable | 5,535,000 | 5,535,000 | 5,051,000 | |||||
Increase (decrease) in debt securities, available for sale | (91,104,000) | 7,947,000 | (263,341,000) | 20,178,000 | ||||
Unrealized loss position | $ 258,614,000 | $ 258,614,000 | ||||||
Unrealized gain position | $ (14,374,000) | $ (14,374,000) | $ (4,727,000) | $ (167,510,000) | $ (22,321,000) | $ (34,552,000) |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized cost | ||
Due in one year or less | $ 4,011 | $ 21,851 |
Due in one to five years | 155,637 | 54,847 |
Due in five to ten years | 62,157 | 45,714 |
Due in over ten years | 242,006 | 255,077 |
Amortized cost, sub-total | 463,811 | 377,489 |
Total debt securities | 1,740,785 | 1,673,798 |
Fair value | ||
Due in one year or less | 3,962 | 21,884 |
Due in one to five years | 146,428 | 55,307 |
Due in five to ten years | 56,759 | 46,975 |
Due in over ten years | 199,412 | 269,737 |
Fair value, sub-total | 406,561 | 393,903 |
Total debt securities | 1,482,171 | 1,678,525 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 1,257,521 | 1,281,285 |
Total debt securities | 1,257,521 | 1,281,285 |
Fair value | ||
Mortgage-backed securities | 1,057,763 | 1,269,372 |
Total debt securities | 1,057,763 | 1,269,372 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 19,453 | 15,024 |
Total debt securities | 19,453 | 15,024 |
Fair value | ||
Mortgage-backed securities | 17,847 | 15,250 |
Total debt securities | $ 17,847 | $ 15,250 |
Investment Securities - Summa_2
Investment Securities - Summary of Sales and Other Dispositions of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 0 | $ 8,855 | $ 1,218 | $ 8,855 |
Proceeds from maturities, prepayments and calls | 44,352 | 68,126 | 170,701 | 216,032 |
Gross realized gains | 1 | 76 | 4 | 91 |
Gross realized losses | $ 0 | $ 1 | $ 0 | $ 1 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Unrealized Losses on Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 973,186 | $ 928,115 |
Unrealized Loss, Less than 12 months | (139,240) | (14,703) |
Fair Value, 12 months or more | 503,442 | 102,799 |
Unrealized Loss, 12 months or more | (119,474) | (3,690) |
Fair Value, Total | 1,476,628 | 1,030,914 |
Unrealized Loss, Total | (258,714) | (18,393) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 33,269 | 18,360 |
Unrealized Loss, Less than 12 months | (4,207) | (171) |
Fair Value, 12 months or more | 6,562 | 0 |
Unrealized Loss, 12 months or more | (1,123) | 0 |
Fair Value, Total | 39,831 | 18,360 |
Unrealized Loss, Total | (5,330) | (171) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 570,554 | 871,368 |
Unrealized Loss, Less than 12 months | (84,615) | (14,295) |
Fair Value, 12 months or more | 487,209 | 102,799 |
Unrealized Loss, 12 months or more | (115,143) | (3,690) |
Fair Value, Total | 1,057,763 | 974,167 |
Unrealized Loss, Total | (199,758) | (17,985) |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 16,709 | 7,946 |
Unrealized Loss, Less than 12 months | (1,354) | (46) |
Fair Value, 12 months or more | 1,138 | 0 |
Unrealized Loss, 12 months or more | (252) | 0 |
Fair Value, Total | 17,847 | 7,946 |
Unrealized Loss, Total | (1,606) | (46) |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 238,067 | 11,414 |
Unrealized Loss, Less than 12 months | (42,452) | (160) |
Fair Value, 12 months or more | 8,533 | 0 |
Unrealized Loss, 12 months or more | (2,956) | 0 |
Fair Value, Total | 246,600 | 11,414 |
Unrealized Loss, Total | (45,408) | (160) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 107,297 | 14,908 |
Unrealized Loss, Less than 12 months | (5,901) | (6) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 107,297 | 14,908 |
Unrealized Loss, Total | (5,901) | (6) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 7,290 | 4,119 |
Unrealized Loss, Less than 12 months | (711) | (25) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 7,290 | 4,119 |
Unrealized Loss, Total | $ (711) | $ (25) |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans Outstanding by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | $ 9,105,016 | $ 7,604,662 | ||||
Less: Allowance for credit losses | (134,476) | $ (126,272) | (125,559) | $ (139,446) | $ (144,663) | $ (170,389) |
Net loans | 8,970,540 | 7,479,103 | ||||
Paycheck Protection Program | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans originated as part of PPP program | 851 | 3,990 | ||||
Commercial and industrial | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,534,159 | 1,290,565 | ||||
Less: Allowance for credit losses | (10,538) | (10,191) | (15,751) | (14,838) | (13,791) | (14,748) |
Construction | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,679,497 | 1,327,659 | ||||
Less: Allowance for credit losses | (41,427) | (38,383) | (28,576) | (29,760) | (32,838) | (58,477) |
Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,545,252 | 1,270,467 | ||||
Less: Allowance for credit losses | (25,366) | (21,398) | (19,104) | (17,028) | (19,672) | (19,220) |
Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 460,774 | 383,039 | ||||
Less: Allowance for credit losses | (6,952) | (6,875) | (5,903) | (5,765) | (6,716) | (10,534) |
Residential real estate: | Multi-family mortgage | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 394,366 | 326,551 | ||||
Less: Allowance for credit losses | (5,874) | (6,503) | (6,976) | (12,013) | (13,475) | (7,174) |
Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,158,343 | 951,582 | ||||
Less: Allowance for credit losses | (8,068) | (7,329) | (12,593) | (12,376) | (4,707) | (4,849) |
Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,954,219 | 1,730,165 | ||||
Less: Allowance for credit losses | (22,783) | (22,536) | (25,768) | (36,406) | (42,856) | (44,147) |
Consumer and other | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 378,406 | 324,634 | ||||
Less: Allowance for credit losses | $ (13,468) | $ (13,057) | $ (10,888) | $ (11,260) | $ (10,608) | $ (11,240) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | |||||
Accrued interest receivable on loans | $ 32,247 | $ 32,247 | $ 31,676 | ||
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | 151 | $ 63 | 458 | $ 660 | |
Recorded investment in TDRs | 14,959 | 14,959 | 32,435 | ||
TDRs classified as non-accruals | 7,592 | 7,592 | 11,084 | ||
Allocation to specific reserves | 258 | 258 | 1,245 | ||
Payment default for loans modified as troubled debt restructurings | 304 | $ 305 | 304 | $ 305 | |
Federal Reserve Bank | |||||
Financing Receivable, Past Due [Line Items] | |||||
Deposit liabilities, collateral issued, financial instruments | 3,012,814 | 3,012,814 | 2,440,097 | ||
FHLB Cincinnati | Residential Mortgage Loans | |||||
Financing Receivable, Past Due [Line Items] | |||||
Collateral securing line of credit | 865,616 | 865,616 | 1,136,294 | ||
FHLB Cincinnati | Commercial Loan | |||||
Financing Receivable, Past Due [Line Items] | |||||
Collateral securing line of credit | $ 1,665,345 | $ 1,665,345 | $ 1,581,673 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Changes in Allowance for Credit Losses by Class of Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 126,272 | $ 144,663 | $ 125,559 | $ 170,389 |
Provision for credit losses | 8,189 | (2,832) | 10,241 | (27,349) |
Recoveries of loans previously charged-off | 476 | 229 | 2,104 | 1,049 |
Loans charged off | (461) | (2,614) | (3,428) | (4,643) |
Balance at end of period | 134,476 | 139,446 | 134,476 | 139,446 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 10,191 | 13,791 | 15,751 | 14,748 |
Provision for credit losses | 5 | 3,203 | (4,784) | 2,667 |
Recoveries of loans previously charged-off | 342 | 19 | 1,326 | 235 |
Loans charged off | 0 | (2,175) | (1,755) | (2,812) |
Balance at end of period | 10,538 | 14,838 | 10,538 | 14,838 |
Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 38,383 | 32,838 | 28,576 | 58,477 |
Provision for credit losses | 3,044 | (3,080) | 12,840 | (28,690) |
Recoveries of loans previously charged-off | 0 | 3 | 11 | 3 |
Loans charged off | 0 | (1) | 0 | (30) |
Balance at end of period | 41,427 | 29,760 | 41,427 | 29,760 |
Residential real estate: | 1-to-4 family mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 21,398 | 19,672 | 19,104 | 19,220 |
Provision for credit losses | 3,975 | (2,677) | 6,266 | (2,141) |
Recoveries of loans previously charged-off | 13 | 33 | 39 | 98 |
Loans charged off | (20) | 0 | (43) | (149) |
Balance at end of period | 25,366 | 17,028 | 25,366 | 17,028 |
Residential real estate: | Residential line of credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6,875 | 6,716 | 5,903 | 10,534 |
Provision for credit losses | 77 | (952) | 1,032 | (4,767) |
Recoveries of loans previously charged-off | 0 | 1 | 17 | 16 |
Loans charged off | 0 | 0 | 0 | (18) |
Balance at end of period | 6,952 | 5,765 | 6,952 | 5,765 |
Residential real estate: | Multi-family mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6,503 | 13,475 | 6,976 | 7,174 |
Provision for credit losses | (629) | (1,462) | (1,102) | 4,839 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Balance at end of period | 5,874 | 12,013 | 5,874 | 12,013 |
Commercial real estate: | Owner-occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 7,329 | 4,707 | 12,593 | 4,849 |
Provision for credit losses | 688 | 7,665 | (4,601) | 7,384 |
Recoveries of loans previously charged-off | 51 | 4 | 76 | 143 |
Loans charged off | 0 | 0 | 0 | 0 |
Balance at end of period | 8,068 | 12,376 | 8,068 | 12,376 |
Commercial real estate: | Non-owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 22,536 | 42,856 | 25,768 | 44,147 |
Provision for credit losses | 247 | (6,450) | (2,985) | (7,741) |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Balance at end of period | 22,783 | 36,406 | 22,783 | 36,406 |
Consumer and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 13,057 | 10,608 | 10,888 | 11,240 |
Provision for credit losses | 782 | 921 | 3,575 | 1,100 |
Recoveries of loans previously charged-off | 70 | 169 | 635 | 554 |
Loans charged off | (441) | (438) | (1,630) | (1,634) |
Balance at end of period | $ 13,468 | $ 11,260 | $ 13,468 | $ 11,260 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Credit Quality of Loan Portfolio by Year of Origination (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 9,105,016 | $ 7,604,662 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 284,490 | 274,229 |
2021-2020 | 221,747 | 97,679 |
2020-2019 | 85,937 | 144,263 |
2019-2018 | 98,305 | 55,883 |
2018-2017 | 41,541 | 37,370 |
Prior | 73,013 | 64,964 |
Revolving Loans Amortized Cost Basis | 729,126 | 616,177 |
Total | 1,534,159 | 1,290,565 |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 284,399 | 273,232 |
2021-2020 | 220,172 | 95,279 |
2020-2019 | 83,831 | 140,938 |
2019-2018 | 96,337 | 52,162 |
2018-2017 | 40,939 | 33,997 |
Prior | 63,998 | 57,020 |
Revolving Loans Amortized Cost Basis | 718,260 | 596,667 |
Total | 1,507,936 | 1,249,295 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 26 | 79 |
2021-2020 | 355 | 9 |
2020-2019 | 0 | 949 |
2019-2018 | 375 | 632 |
2018-2017 | 151 | 3 |
Prior | 0 | 1,519 |
Revolving Loans Amortized Cost Basis | 2,732 | 12,367 |
Total | 3,639 | 15,558 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 65 | 918 |
2021-2020 | 1,220 | 2,391 |
2020-2019 | 2,106 | 2,376 |
2019-2018 | 1,593 | 3,089 |
2018-2017 | 451 | 3,370 |
Prior | 9,015 | 6,425 |
Revolving Loans Amortized Cost Basis | 8,134 | 7,143 |
Total | 22,584 | 25,712 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 570,594 | 677,320 |
2021-2020 | 570,247 | 281,012 |
2020-2019 | 215,654 | 138,690 |
2019-2018 | 71,706 | 26,798 |
2018-2017 | 18,034 | 16,524 |
Prior | 49,324 | 69,939 |
Revolving Loans Amortized Cost Basis | 183,938 | 117,376 |
Total | 1,679,497 | 1,327,659 |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 570,166 | 677,258 |
2021-2020 | 569,425 | 280,828 |
2020-2019 | 215,636 | 135,768 |
2019-2018 | 71,706 | 23,916 |
2018-2017 | 18,027 | 15,313 |
Prior | 46,794 | 67,818 |
Revolving Loans Amortized Cost Basis | 183,738 | 117,176 |
Total | 1,675,492 | 1,318,077 |
Construction | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 428 | 62 |
2021-2020 | 0 | 184 |
2020-2019 | 18 | 0 |
2019-2018 | 0 | 0 |
2018-2017 | 7 | 1,208 |
Prior | 2,530 | 1,384 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 2,983 | 2,838 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 822 | 0 |
2020-2019 | 0 | 2,922 |
2019-2018 | 0 | 2,882 |
2018-2017 | 0 | 3 |
Prior | 0 | 737 |
Revolving Loans Amortized Cost Basis | 200 | 200 |
Total | 1,022 | 6,744 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 117,654 | 166,576 |
2021-2020 | 163,283 | 32,242 |
2020-2019 | 33,326 | 64,345 |
2019-2018 | 30,470 | 7,124 |
2018-2017 | 4,201 | 5,602 |
Prior | 36,466 | 39,771 |
Revolving Loans Amortized Cost Basis | 8,966 | 10,891 |
Total | 394,366 | 326,551 |
Residential real estate: | Multi-family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 117,654 | 166,576 |
2021-2020 | 163,283 | 32,242 |
2020-2019 | 33,326 | 64,345 |
2019-2018 | 30,470 | 7,124 |
2018-2017 | 4,201 | 5,602 |
Prior | 35,279 | 38,526 |
Revolving Loans Amortized Cost Basis | 8,966 | 10,891 |
Total | 393,179 | 325,306 |
Residential real estate: | Multi-family mortgage | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
2018-2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Residential real estate: | Multi-family mortgage | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
2018-2017 | 0 | 0 |
Prior | 1,187 | 1,245 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,187 | 1,245 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 508,660 | 522,765 |
2021-2020 | 459,218 | 208,424 |
2020-2019 | 170,845 | 122,752 |
2019-2018 | 98,236 | 102,593 |
2018-2017 | 73,750 | 110,852 |
Prior | 234,543 | 203,081 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,545,252 | 1,270,467 |
Residential real estate: | 1-to-4 family mortgage | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 507,621 | 521,533 |
2021-2020 | 454,839 | 204,690 |
2020-2019 | 166,905 | 121,775 |
2019-2018 | 96,216 | 100,164 |
2018-2017 | 72,019 | 109,087 |
Prior | 228,305 | 199,262 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,525,905 | 1,256,511 |
Residential real estate: | 1-to-4 family mortgage | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 1,039 | 1,232 |
2021-2020 | 4,379 | 3,734 |
2020-2019 | 3,940 | 977 |
2019-2018 | 2,020 | 2,429 |
2018-2017 | 1,731 | 1,765 |
Prior | 6,238 | 3,819 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 19,347 | 13,956 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
2018-2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 460,774 | 383,039 |
Total | 460,774 | 383,039 |
Residential real estate: | Residential line of credit | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
2018-2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 458,894 | 381,303 |
Total | 458,894 | 381,303 |
Residential real estate: | Residential line of credit | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
2018-2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 1,880 | 1,736 |
Total | 1,880 | 1,736 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 215,353 | 170,773 |
2021-2020 | 232,331 | 131,471 |
2020-2019 | 117,992 | 178,861 |
2019-2018 | 167,008 | 88,007 |
2018-2017 | 82,457 | 74,119 |
Prior | 275,829 | 249,169 |
Revolving Loans Amortized Cost Basis | 67,373 | 59,182 |
Total | 1,158,343 | 951,582 |
Commercial real estate: | Owner-occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 215,250 | 170,773 |
2021-2020 | 231,038 | 131,471 |
2020-2019 | 117,751 | 174,257 |
2019-2018 | 159,546 | 83,698 |
2018-2017 | 78,881 | 69,939 |
Prior | 266,021 | 236,998 |
Revolving Loans Amortized Cost Basis | 66,718 | 57,123 |
Total | 1,135,205 | 924,259 |
Commercial real estate: | Owner-occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 103 | 0 |
2021-2020 | 1,293 | 0 |
2020-2019 | 0 | 1,502 |
2019-2018 | 1,470 | 3,541 |
2018-2017 | 2,294 | 885 |
Prior | 390 | 2,555 |
Revolving Loans Amortized Cost Basis | 0 | 213 |
Total | 5,550 | 8,696 |
Commercial real estate: | Owner-occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 241 | 3,102 |
2019-2018 | 5,992 | 768 |
2018-2017 | 1,282 | 3,295 |
Prior | 9,418 | 9,616 |
Revolving Loans Amortized Cost Basis | 655 | 1,846 |
Total | 17,588 | 18,627 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 411,612 | 462,478 |
2021-2020 | 429,102 | 154,048 |
2020-2019 | 138,590 | 171,562 |
2019-2018 | 171,897 | 292,092 |
2018-2017 | 228,930 | 172,108 |
Prior | 517,370 | 431,336 |
Revolving Loans Amortized Cost Basis | 56,718 | 46,541 |
Total | 1,954,219 | 1,730,165 |
Commercial real estate: | Non-owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 411,612 | 462,478 |
2021-2020 | 428,087 | 154,048 |
2020-2019 | 138,590 | 165,917 |
2019-2018 | 171,747 | 264,855 |
2018-2017 | 225,519 | 170,602 |
Prior | 505,370 | 414,859 |
Revolving Loans Amortized Cost Basis | 56,718 | 46,541 |
Total | 1,937,643 | 1,679,300 |
Commercial real estate: | Non-owner occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 1,015 | 0 |
2020-2019 | 0 | 3,747 |
2019-2018 | 0 | 3,388 |
2018-2017 | 82 | 0 |
Prior | 0 | 969 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,097 | 8,104 |
Commercial real estate: | Non-owner occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 1,898 |
2019-2018 | 150 | 23,849 |
2018-2017 | 3,329 | 1,506 |
Prior | 12,000 | 15,508 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 15,479 | 42,761 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 107,345 | 83,109 |
2021-2020 | 62,352 | 55,468 |
2020-2019 | 46,263 | 38,826 |
2019-2018 | 33,630 | 34,245 |
2018-2017 | 30,007 | 22,717 |
Prior | 89,244 | 75,744 |
Revolving Loans Amortized Cost Basis | 9,565 | 14,525 |
Total | 378,406 | 324,634 |
Consumer and other | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 107,264 | 82,910 |
2021-2020 | 61,291 | 55,123 |
2020-2019 | 44,898 | 38,281 |
2019-2018 | 32,694 | 32,893 |
2018-2017 | 28,416 | 21,856 |
Prior | 86,524 | 74,248 |
Revolving Loans Amortized Cost Basis | 9,564 | 14,478 |
Total | 370,651 | 319,789 |
Consumer and other | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 81 | 199 |
2021-2020 | 1,061 | 345 |
2020-2019 | 1,365 | 545 |
2019-2018 | 936 | 1,352 |
2018-2017 | 1,591 | 861 |
Prior | 2,720 | 1,496 |
Revolving Loans Amortized Cost Basis | 1 | 47 |
Total | 7,755 | 4,845 |
Total consumer loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 616,005 | 605,874 |
2021-2020 | 521,570 | 263,892 |
2020-2019 | 217,108 | 161,578 |
2019-2018 | 131,866 | 136,838 |
2018-2017 | 103,757 | 133,569 |
Prior | 323,787 | 278,825 |
Revolving Loans Amortized Cost Basis | 470,339 | 397,564 |
Total | 2,384,432 | 1,978,140 |
Total consumer loans | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 614,885 | 604,443 |
2021-2020 | 516,130 | 259,813 |
2020-2019 | 211,803 | 160,056 |
2019-2018 | 128,910 | 133,057 |
2018-2017 | 100,435 | 130,943 |
Prior | 314,829 | 273,510 |
Revolving Loans Amortized Cost Basis | 468,458 | 395,781 |
Total | 2,355,450 | 1,957,603 |
Total consumer loans | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 1,120 | 1,431 |
2021-2020 | 5,440 | 4,079 |
2020-2019 | 5,305 | 1,522 |
2019-2018 | 2,956 | 3,781 |
2018-2017 | 3,322 | 2,626 |
Prior | 8,958 | 5,315 |
Revolving Loans Amortized Cost Basis | 1,881 | 1,783 |
Total | 28,982 | 20,537 |
Total Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 1,599,703 | 1,751,376 |
2021-2020 | 1,616,710 | 696,452 |
2020-2019 | 591,499 | 697,721 |
2019-2018 | 539,386 | 469,904 |
2018-2017 | 375,163 | 305,723 |
Prior | 952,002 | 855,179 |
Revolving Loans Amortized Cost Basis | 1,046,121 | 850,167 |
Total | 6,720,584 | 5,626,522 |
Total Commercial Loans | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 1,599,081 | 1,750,317 |
2021-2020 | 1,612,005 | 693,868 |
2020-2019 | 589,134 | 681,225 |
2019-2018 | 529,806 | 431,755 |
2018-2017 | 367,567 | 295,453 |
Prior | 917,462 | 815,221 |
Revolving Loans Amortized Cost Basis | 1,034,400 | 828,398 |
Total | 6,649,455 | 5,496,237 |
Total Commercial Loans | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 557 | 141 |
2021-2020 | 2,663 | 193 |
2020-2019 | 18 | 6,198 |
2019-2018 | 1,845 | 7,561 |
2018-2017 | 2,534 | 2,096 |
Prior | 2,920 | 6,427 |
Revolving Loans Amortized Cost Basis | 2,732 | 12,580 |
Total | 13,269 | 35,196 |
Total Commercial Loans | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022-2021 | 65 | 918 |
2021-2020 | 2,042 | 2,391 |
2020-2019 | 2,347 | 10,298 |
2019-2018 | 7,735 | 30,588 |
2018-2017 | 5,062 | 8,174 |
Prior | 31,620 | 33,531 |
Revolving Loans Amortized Cost Basis | 8,989 | 9,189 |
Total | $ 57,860 | $ 95,089 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Analysis of Aging by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 9,105,016 | $ 7,604,662 |
90 days or more and accruing interest | 16,002 | 11,735 |
Non-accrual loans | 26,625 | 35,568 |
30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 30,596 | 26,450 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,031,793 | 7,530,909 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,534,159 | 1,290,565 |
90 days or more and accruing interest | 38 | 63 |
Non-accrual loans | 1,730 | 1,520 |
Commercial and industrial | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,812 | 1,030 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,530,579 | 1,287,952 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,679,497 | 1,327,659 |
90 days or more and accruing interest | 0 | 718 |
Non-accrual loans | 0 | 3,622 |
Construction | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,916 | 4,852 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,677,581 | 1,318,467 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,545,252 | 1,270,467 |
90 days or more and accruing interest | 13,767 | 9,363 |
Non-accrual loans | 5,580 | 4,593 |
Residential real estate: | 1-to-4 family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 16,994 | 11,007 |
Residential real estate: | 1-to-4 family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,508,911 | 1,245,504 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 460,774 | 383,039 |
90 days or more and accruing interest | 209 | 0 |
Non-accrual loans | 1,671 | 1,736 |
Residential real estate: | Residential line of credit | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 542 | 319 |
Residential real estate: | Residential line of credit | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 458,352 | 380,984 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 394,366 | 326,551 |
90 days or more and accruing interest | 0 | 0 |
Non-accrual loans | 44 | 49 |
Residential real estate: | Multi-family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate: | Multi-family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 394,322 | 326,502 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,158,343 | 951,582 |
90 days or more and accruing interest | 0 | 0 |
Non-accrual loans | 4,873 | 6,710 |
Commercial real estate: | Owner-occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 982 | 1,417 |
Commercial real estate: | Owner-occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,152,488 | 943,455 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,954,219 | 1,730,165 |
90 days or more and accruing interest | 0 | 0 |
Non-accrual loans | 6,960 | 14,084 |
Commercial real estate: | Non-owner occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 293 | 427 |
Commercial real estate: | Non-owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,946,966 | 1,715,654 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 378,406 | 324,634 |
90 days or more and accruing interest | 1,988 | 1,591 |
Non-accrual loans | 5,767 | 3,254 |
Consumer and other | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 8,057 | 7,398 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 362,594 | $ 312,391 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Amortized Cost and Related Allowance of Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | $ 15,296 | $ 15,296 | $ 24,386 | ||
Non-accrual with related allowance | 11,329 | 11,329 | 11,182 | ||
Related allowance | 382 | 382 | 555 | ||
Year to date Interest Income | 409 | $ 961 | 1,045 | $ 1,973 | |
Commercial and industrial | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 1,228 | 1,228 | 1,085 | ||
Non-accrual with related allowance | 502 | 502 | 435 | ||
Related allowance | 3 | 3 | 6 | ||
Year to date Interest Income | 26 | 190 | 163 | 523 | |
Construction | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 2,882 | ||||
Non-accrual with related allowance | 740 | ||||
Related allowance | 99 | ||||
Year to date Interest Income | 5 | 75 | 31 | 105 | |
Residential real estate: | 1-to-4 family mortgage | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 1,537 | 1,537 | 378 | ||
Non-accrual with related allowance | 4,043 | 4,043 | 4,215 | ||
Related allowance | 73 | 73 | 60 | ||
Year to date Interest Income | 78 | 114 | 185 | 199 | |
Residential real estate: | Residential line of credit | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 1,070 | 1,070 | 797 | ||
Non-accrual with related allowance | 601 | 601 | 939 | ||
Related allowance | 9 | 9 | 11 | ||
Year to date Interest Income | 37 | 197 | 98 | 242 | |
Residential real estate: | Multi-family mortgage | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 0 | 0 | 0 | ||
Non-accrual with related allowance | 44 | 44 | 49 | ||
Related allowance | 1 | 1 | 2 | ||
Year to date Interest Income | 0 | 0 | 2 | 2 | |
Commercial real estate: | Owner-occupied | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 4,710 | 4,710 | 5,346 | ||
Non-accrual with related allowance | 163 | 163 | 1,364 | ||
Related allowance | 1 | 1 | 206 | ||
Year to date Interest Income | 61 | 187 | 149 | 419 | |
Commercial real estate: | Non-owner occupied | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 6,751 | 6,751 | 13,898 | ||
Non-accrual with related allowance | 209 | 209 | 186 | ||
Related allowance | 4 | 4 | 7 | ||
Year to date Interest Income | 89 | 123 | 235 | 353 | |
Consumer and other | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual with no related allowance | 0 | 0 | 0 | ||
Non-accrual with related allowance | 5,767 | 5,767 | 3,254 | ||
Related allowance | 291 | 291 | $ 164 | ||
Year to date Interest Income | $ 113 | $ 75 | $ 182 | $ 130 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 2 | 1 | 6 | 14 |
Pre-modification outstanding recorded investment | $ 459 | $ 134 | $ 665 | $ 29,665 |
Post-modification outstanding recorded investment | 685 | 134 | 891 | 29,665 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 1 | 2 | 5 | |
Pre-modification outstanding recorded investment | $ 207 | $ 262 | $ 13,162 | |
Post-modification outstanding recorded investment | 117 | 172 | 13,162 | |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 4 | |||
Pre-modification outstanding recorded investment | $ 3,550 | |||
Post-modification outstanding recorded investment | 3,550 | |||
Charge offs and specific reserves | $ 0 | |||
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 1 | |||
Pre-modification outstanding recorded investment | $ 11,997 | |||
Post-modification outstanding recorded investment | 11,997 | |||
Charge offs and specific reserves | $ 0 | |||
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 1 | 1 | 2 | 3 |
Pre-modification outstanding recorded investment | $ 252 | $ 134 | $ 332 | $ 945 |
Post-modification outstanding recorded investment | 568 | 134 | 648 | 945 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 1 | 1 | ||
Pre-modification outstanding recorded investment | $ 49 | $ 11 | ||
Post-modification outstanding recorded investment | 49 | 11 | ||
Charge offs and specific reserves | $ 0 | $ 0 | ||
Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 1 | |||
Pre-modification outstanding recorded investment | $ 22 | |||
Post-modification outstanding recorded investment | 22 | |||
Charge offs and specific reserves | $ 0 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | $ 134,476 | $ 126,272 | $ 125,559 | $ 139,446 | $ 144,663 | $ 170,389 |
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 10,538 | 10,191 | 15,751 | 14,838 | 13,791 | 14,748 |
Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 41,427 | 38,383 | 28,576 | 29,760 | 32,838 | 58,477 |
Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 25,366 | 21,398 | 19,104 | 17,028 | 19,672 | 19,220 |
Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 6,952 | 6,875 | 5,903 | 5,765 | 6,716 | 10,534 |
Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 8,068 | 7,329 | 12,593 | 12,376 | 4,707 | 4,849 |
Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 22,783 | 22,536 | 25,768 | 36,406 | 42,856 | 44,147 |
Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 13,468 | $ 13,057 | 10,888 | $ 11,260 | $ 10,608 | $ 11,240 |
Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 16,202 | 28,158 | ||||
Real Estate | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,228 | 799 | ||||
Real Estate | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 3,580 | |||||
Real Estate | Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,192 | 338 | ||||
Real Estate | Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,069 | 1,400 | ||||
Real Estate | Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 5,823 | 8,117 | ||||
Real Estate | Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 6,751 | 13,899 | ||||
Real Estate | Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 139 | 25 | ||||
Financial Assets and Equipment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 787 | 1,161 | ||||
Financial Assets and Equipment | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 787 | 1,090 | ||||
Financial Assets and Equipment | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 0 | |||||
Financial Assets and Equipment | Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 0 | 0 | ||||
Financial Assets and Equipment | Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 0 | 0 | ||||
Financial Assets and Equipment | Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 0 | 71 | ||||
Financial Assets and Equipment | Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 0 | 0 | ||||
Financial Assets and Equipment | Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 0 | 0 | ||||
Total | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 16,989 | 29,319 | ||||
Individually assessed allowance for credit loss | 205 | 303 | ||||
Total | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 2,015 | 1,889 | ||||
Individually assessed allowance for credit loss | 0 | 0 | ||||
Total | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 3,580 | |||||
Individually assessed allowance for credit loss | 92 | |||||
Total | Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,192 | 338 | ||||
Individually assessed allowance for credit loss | 205 | 0 | ||||
Total | Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,069 | 1,400 | ||||
Individually assessed allowance for credit loss | 0 | 10 | ||||
Total | Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 5,823 | 8,188 | ||||
Individually assessed allowance for credit loss | 0 | 200 | ||||
Total | Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 6,751 | 13,899 | ||||
Individually assessed allowance for credit loss | 0 | 0 | ||||
Total | Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 139 | 25 | ||||
Individually assessed allowance for credit loss | $ 0 | $ 1 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 9,398 | $ 11,986 | $ 9,777 | $ 12,111 |
Transfers from loans | 421 | 349 | 984 | 4,945 |
Proceeds from sale of other real estate owned | (4,335) | (4,173) | (4,753) | (8,834) |
Gain (loss) on sale of other real estate owned | 483 | 2,090 | 353 | 3,190 |
Loans provided for sales of other real estate owned | 0 | (152) | 0 | (685) |
Write-downs and partial liquidations | (48) | (85) | (442) | (712) |
Balance at end of period | $ 5,919 | $ 10,015 | $ 5,919 | $ 10,015 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | ||
Other real estate owned included excess land and facilities held for sale | $ 2,467,000 | $ 3,348,000 |
Residential Real Estate Properties | ||
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | 614,000 | 775,000 |
Total foreclosure proceedings in process | $ 755,000 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) lease lease_renewal_option | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) lease lease_renewal_option | Sep. 30, 2021 USD ($) | Aug. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||
Lessee, number of operating leases | lease | 59 | 59 | ||||
Lessee, number of finance leases | lease | 1 | 1 | ||||
Lessee, number of total operating leases, noncurrent | lease | 45 | 45 | ||||
Lessee, number of total finance leases, noncurrent | lease | 1 | 1 | ||||
Lessee, operating and finance lease, number of options to renew | lease_renewal_option | 1 | 1 | ||||
Operating lease right-of-use assets | $ 61,444 | $ 61,444 | $ 41,686 | |||
Operating lease liabilities | 70,610 | 70,610 | $ 46,367 | |||
Gain on lease modifications and terminations | $ 0 | $ 14 | $ 18 | $ 801 | ||
Building | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease right-of-use assets | $ 22,082 | |||||
Operating lease liabilities | $ 26,100 | |||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, operating and finance lease, term of contract | 1 year | |||||
Lessee, operating and finance lease, renewal term | 20 years | |||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, operating and finance lease, term of contract | 33 years |
Leases - Information Related to
Leases - Information Related to Company's Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating leases | $ 61,444 | $ 41,686 |
Finance leases | 1,394 | 1,487 |
Total right-of-use assets | 62,838 | 43,173 |
Operating leases | 70,610 | 46,367 |
Finance leases | 1,443 | 1,518 |
Total lease liabilities | $ 72,053 | $ 47,885 |
Weighted average remaining lease term (in years) - operating | 12 years 2 months 12 days | 12 years 4 months 24 days |
Weighted average remaining lease term (in years) - finance | 12 years 7 months 6 days | 13 years 4 months 24 days |
Weighted average discount rate - operating | 3.05% | 2.73% |
Weighted average discount rate - finance | 1.76% | 1.76% |
Right-of-use asset - finance [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Lease liabilities - finance [Extensible Enumeration] | Borrowings | Borrowings |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Amortization of right-of-use asset | $ 2,269 | $ 1,838 | $ 5,830 | $ 5,948 |
Short-term lease cost | 132 | 107 | 387 | 296 |
Variable lease cost | 215 | 284 | 764 | 760 |
Lease impairment | 0 | 0 | 364 | 0 |
Gain on lease modifications and terminations | 0 | (14) | (18) | (801) |
Interest on lease liabilities | 7 | 7 | 22 | 21 |
Amortization of right-of-use asset | 27 | 28 | 92 | 83 |
Total lease cost | $ 2,650 | $ 2,250 | $ 7,441 | $ 6,307 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
September 30, 2023 | $ 7,508 | |
September 30, 2024 | 8,257 | |
September 30, 2025 | 7,797 | |
September 30, 2023 | 7,650 | |
September 30, 2027 | 7,449 | |
Thereafter | 48,089 | |
Total undiscounted future minimum lease payments | 86,750 | |
Less: imputed interest | (16,140) | |
Operating leases | 70,610 | $ 46,367 |
Finance Lease | ||
September 30, 2023 | 29 | |
September 30, 2024 | 118 | |
September 30, 2025 | 120 | |
September 30, 2026 | 121 | |
September 30, 2027 | 123 | |
Thereafter | 1,102 | |
Total undiscounted future minimum lease payments | 1,613 | |
Less: imputed interest | (170) | |
Finance leases | $ 1,443 | $ 1,518 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Carrying value at beginning of period | $ 158,678 | $ 101,615 | $ 115,512 | $ 79,997 |
Capitalization | 4,453 | 9,215 | 19,523 | 31,382 |
Change in fair value: | ||||
Due to pay-offs/pay-downs | (3,670) | (7,302) | (13,165) | (24,488) |
Due to change in valuation inputs or assumptions | 11,966 | 7,063 | 49,557 | 23,700 |
Carrying value at end of period | $ 171,427 | $ 110,591 | $ 171,427 | $ 110,591 |
Mortgage Servicing Rights - Ser
Mortgage Servicing Rights - Servicing Income and Expense Included in Mortgage Banking Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Servicing income: | ||||
Servicing income | $ 8,104 | $ 7,539 | $ 23,499 | $ 21,258 |
Change in fair value of mortgage servicing rights | 8,296 | (239) | 36,392 | (788) |
Change in fair value of derivative hedging instruments | (12,641) | (2,128) | (41,636) | (9,987) |
Servicing income | 3,759 | 5,172 | 18,255 | 10,483 |
Servicing expenses | 1,923 | 2,156 | 7,848 | 7,381 |
Net servicing income (loss) | $ 1,836 | $ 3,016 | $ 10,407 | $ 3,102 |
Mortgage Servicing Rights - Dat
Mortgage Servicing Rights - Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance | $ 11,233,249 | $ 10,759,286 |
Weighted-average prepayment speed (CPR) | 5.40% | 9.31% |
Estimated impact on fair value of a 10% increase | $ (4,751) | $ (4,905) |
Estimated impact on fair value of a 20% increase | $ (9,191) | $ (9,429) |
Discount rate | 9.60% | 9.81% |
Estimated impact on fair value of a 100 bp increase | $ (8,164) | $ (4,785) |
Estimated impact on fair value of a 200 bp increase | $ (15,623) | $ (9,198) |
Weighted-average coupon interest rate | 3.29% | 3.23% |
Weighted-average servicing fee (basis points) | 0.27% | 0.27% |
Weighted-average remaining maturity (in months) | 331 months | 330 months |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 140,768 | $ 127,617 |
Income Taxes - Allocation of Fe
Income Taxes - Allocation of Federal and State Income Taxes between Current and Deferred Portions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 5,513 | $ 2,350 | $ 9,082 | $ 17,840 |
Deferred | 3,418 | 7,366 | 15,879 | 20,904 |
Income tax expense, as reported | $ 8,931 | $ 9,716 | $ 24,961 | $ 38,744 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Federal taxes calculated at statutory rate, percent | 21% | 21% | 21% | 21% | |
Acquired net operating losses | $ 1,158 | $ 1,158 | $ 1,370 | ||
Franklin Financial Network, Inc. | |||||
Business Acquisition [Line Items] | |||||
Acquired net operating losses | $ 5,515 | $ 5,515 | $ 6,523 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
State taxes, net of federal benefit | $ 8,560 | $ 11,551 | $ 23,390 | $ 37,844 |
Increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 1,018 | 3,279 | 3,551 | 6,908 |
Benefit from equity based compensation | (82) | (1,784) | (388) | (2,129) |
Municipal interest income, net of interest disallowance | (443) | (416) | (1,331) | (1,259) |
Bank-owned life insurance | (78) | (74) | (231) | (240) |
NOL Carryback provision under CARES Act | 0 | (3,424) | 0 | (3,424) |
Offering costs | 0 | 0 | 0 | 127 |
Section 162(m) limitation | 39 | 1,065 | 201 | 1,313 |
Other | (83) | (481) | (231) | (396) |
Income tax expense, as reported | $ 8,931 | $ 9,716 | $ 24,961 | $ 38,744 |
Federal taxes calculated at statutory rate, percent | 21% | 21% | 21% | 21% |
Percentage increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 2.50% | 6% | 3.20% | 3.80% |
Benefit from equity based compensation | (0.20%) | (3.20%) | (0.30%) | (1.20%) |
Municipal interest income, net of interest disallowance | (1.10%) | (0.80%) | (1.20%) | (0.70%) |
Bank-owned life insurance | (0.20%) | (0.10%) | (0.20%) | (0.10%) |
NOL Carryback provision under CARES Act | 0% | (6.20%) | 0% | (1.90%) |
Offering costs | 0% | 0% | 0% | 0.10% |
Section 162(m) limitation | 0.10% | 1.90% | 0.20% | 0.70% |
Other | (0.20%) | (0.90%) | (0.30%) | (0.20%) |
Total | 21.90% | 17.70% | 22.40% | 21.50% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for credit losses | $ 39,064 | $ 35,233 |
Operating lease liabilities | 18,774 | 12,478 |
Net operating loss | 1,158 | 1,370 |
Amortization of core deposit intangibles | 403 | 0 |
Deferred compensation | 4,390 | 5,484 |
Unrealized loss on debt securities | 67,253 | 0 |
Unrealized loss on cash flow hedges | 0 | 205 |
Other assets | 4,891 | 8,301 |
Subtotal | 135,933 | 63,071 |
Deferred tax liabilities: | ||
FHLB stock dividends | (484) | (484) |
Operating leases - right of use assets | (17,386) | (11,287) |
Depreciation | (7,335) | (7,938) |
Amortization of core deposit intangibles | 0 | (116) |
Unrealized gain on equity securities | (2,297) | (2,407) |
Unrealized gain on cash flow hedges | (313) | 0 |
Unrealized gain on debt securities | 0 | (1,324) |
Mortgage servicing rights | (44,667) | (30,098) |
Goodwill | (15,338) | (13,743) |
Other liabilities | (2,753) | (2,494) |
Subtotal | (90,573) | (69,891) |
Net deferred tax assets | $ 45,360 | |
Net deferred tax liability | $ (6,820) |
Commitments and Contingencies -
Commitments and Contingencies - Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 3,751,251 | $ 3,184,021 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 3,686,559 | 3,106,594 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 64,692 | $ 77,427 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Floating interest rate loan commitments | $ 2,970,000 | $ 2,260,000 | |||
Total principal amount of loans repurchased or indemnified | $ 4,442 | $ 2,917 | $ 5,988 | $ 4,386 |
Commitments and Contingencies_3
Commitments and Contingencies - Allowance for Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 126,272 | $ 144,663 | $ 125,559 | $ 170,389 |
Balance at end of period | 134,476 | 139,446 | 134,476 | 139,446 |
Unfunded Commitments | ||||
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | 20,399 | 13,202 | 14,380 | 16,378 |
Provision for credit losses on unfunded commitments | 3,178 | 301 | 9,197 | (2,875) |
Balance at end of period | $ 23,577 | $ 13,503 | $ 23,577 | $ 13,503 |
Commitments and Contingencies_4
Commitments and Contingencies - Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 3,445 | $ 5,489 | $ 4,802 | $ 5,928 |
Provision for loan repurchases or indemnifications | (800) | 0 | (1,989) | (266) |
Losses on loans repurchased or indemnified | 16 | (120) | (152) | (293) |
Balance at end of period | $ 2,661 | $ 5,369 | $ 2,661 | $ 5,369 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) agreement | Mar. 31, 2022 instrument | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) agreement | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | ||||||
Number of designated fair value hedges | instrument | 3 | |||||
Net liability position | $ 0 | $ 0 | $ 0 | |||
Cash collateral pledged on derivatives | 19,169,000 | 19,169,000 | $ 57,868,000 | |||
Designated as hedging | Interest Expense on Borrowings | ||||||
Derivative [Line Items] | ||||||
Gain (loss) included in income statement | $ 26,000 | $ (148,000) | $ (214,000) | $ (428,000) | ||
Subordinated debt | ||||||
Derivative [Line Items] | ||||||
Number of derivative instruments | agreement | 2 | 2 | ||||
Borrowings | $ 30,930,000 | $ 30,930,000 | ||||
Interest Rate Swap | Designated as hedging | ||||||
Derivative [Line Items] | ||||||
Notional amount | 300,000,000 | 300,000,000 | ||||
Interest Rate Swap | Subordinated debt | ||||||
Derivative [Line Items] | ||||||
Notional amount | 30,000,000 | 30,000,000 | ||||
Interest Rate Swap | Subordinated debt | Designated as hedging | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 30,000,000 | $ 30,000,000 | ||||
Interest Rate Swap | LIBOR | Subordinated debt | ||||||
Derivative [Line Items] | ||||||
Derivative variable interest rate | 2.08% | 2.08% | ||||
Minimum | ||||||
Derivative [Line Items] | ||||||
Period to lock interest rate on mortgage loan commitments | 45 days | |||||
Maximum | ||||||
Derivative [Line Items] | ||||||
Period to lock interest rate on mortgage loan commitments | 90 days |
Derivatives - Derivative Financ
Derivatives - Derivative Financial Instruments (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Interest Rate Swap | Subordinated debt | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 30,000,000 | |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,496,931,000 | $ 2,696,444,000 |
Asset | 52,792,000 | 27,384,000 |
Liability | (49,526,000) | (20,215,000) |
Not designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 529,801,000 | 600,048,000 |
Asset | 45,775,000 | 19,265,000 |
Liability | (45,762,000) | (19,138,000) |
Not designated as hedging | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 294,000,000 | 1,180,000,000 |
Asset | 7,017,000 | 0 |
Liability | 0 | (1,077,000) |
Not designated as hedging | Interest rate-lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 188,430,000 | 487,396,000 |
Asset | 0 | 7,197,000 |
Liability | (222,000) | 0 |
Not designated as hedging | Futures contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 484,700,000 | 429,000,000 |
Asset | 0 | 922,000 |
Liability | (3,542,000) | 0 |
Designated as hedging | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 300,000,000 | |
Designated as hedging | Interest Rate Swap | Subordinated debt | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 30,000,000 | |
Asset | $ 1,198,000 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Liability | $ (785,000) | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities |
Derivatives - Gains (Losses) In
Derivatives - Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivatives, Fair Value [Line Items] | ||||
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | $ 145 | $ 38 | $ 517 | $ 173 |
Amount of gain recognized in other comprehensive loss, net of tax expense of $145, $38, $517 and $173 | 409 | 106 | 1,466 | 489 |
Not designated as hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (9,290) | (6,274) | 13,942 | (10,715) |
Not designated as hedging | Interest rate-lock commitments | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (3,980) | (3,316) | (7,419) | (24,587) |
Not designated as hedging | Forward commitments | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 4,795 | (806) | 57,130 | 23,252 |
Not designated as hedging | Futures contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (10,105) | (2,152) | (35,805) | (9,380) |
Not designated as hedging | Option contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 0 | 0 | 36 | 0 |
Designated as hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain recognized in other comprehensive loss, net of tax expense of $145, $38, $517 and $173 | $ 409 | $ 106 | $ 1,466 | $ 489 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges (Details) - Interest Rate Swap - Designated as Hedging Instrument | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 300,000,000 |
Remaining Maturity (In Years) | 1 year 8 months 23 days |
Receive Fixed Rate | 1.48% |
Estimated fair value | $ (14,006,000) |
Subordinated debt | |
Derivative [Line Items] | |
Notional Amount | $ 100,000,000 |
Remaining Maturity (In Years) | 1 year 5 months 1 day |
Receive Fixed Rate | 1.46% |
Estimated fair value | $ (3,831,000) |
Fixed Rate Money Market Deposits One | |
Derivative [Line Items] | |
Notional Amount | $ 75,000,000 |
Remaining Maturity (In Years) | 1 year 10 months 20 days |
Receive Fixed Rate | 1.50% |
Estimated fair value | $ (3,816,000) |
Fixed Rate Money Market Deposits Two | |
Derivative [Line Items] | |
Notional Amount | $ 125,000,000 |
Remaining Maturity (In Years) | 1 year 10 months 20 days |
Receive Fixed Rate | 1.50% |
Estimated fair value | $ (6,359,000) |
Derivatives - Income Included I
Derivatives - Income Included In Interest Expense On Borrowings And Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivatives, Fair Value [Line Items] | ||||
Interest expense on deposits | $ 13,133 | $ 6,596 | $ 25,186 | $ 24,341 |
Interest expense on borrowings | 3,966 | 1,593 | 6,901 | 5,823 |
Total interest expense | 17,099 | $ 8,189 | 32,087 | $ 30,164 |
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest expense on deposits | (331) | 377 | ||
Interest expense on borrowings | (181) | 167 | ||
Total interest expense | $ (512) | $ 544 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - Interest Rate Swap $ in Thousands | Sep. 30, 2022 USD ($) |
Borrowings | |
Derivative [Line Items] | |
Carrying Amount of the Hedged Item | $ 95,074 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (3,831) |
Borrowings | Subordinated debt | |
Derivative [Line Items] | |
Unamortized subordinated debt issuance costs | 1,095 |
Money market and savings deposits | |
Derivative [Line Items] | |
Carrying Amount of the Hedged Item | 197,124 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (10,175) |
Purchase accounting fair value premium | $ 7,299 |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 46,973,000 | $ 4,990,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 46,973,000 | 4,990,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 14,100,000 | 4,297,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 32,873,000 | 693,000 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 20,272,000 | 15,733,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 20,272,000 | 15,733,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 14,100,000 | 4,297,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 6,172,000 | 11,436,000 |
Net amounts | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Fair Values and Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Loans, net | $ 8,970,540 | $ 7,479,103 |
Interest receivable | 39,034 | 38,528 |
Level 1 | ||
Financial liabilities: | ||
Federal Home Loan Bank advances | 0 | |
Level 2 | ||
Financial liabilities: | ||
Federal Home Loan Bank advances | 540,000 | |
Level 3 | ||
Financial liabilities: | ||
Federal Home Loan Bank advances | 0 | |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 618,290 | 1,797,740 |
Investment securities | 1,485,133 | 1,681,892 |
Loans, net | 8,970,540 | 7,479,103 |
Loans held for sale | 130,733 | 752,223 |
Interest receivable | 39,034 | 38,528 |
Mortgage servicing rights | 171,427 | 115,512 |
Derivatives | 53,990 | 27,384 |
Financial liabilities: | ||
Deposits, Without stated maturities | 8,843,012 | 9,705,816 |
Deposits, With stated maturities | 1,163,070 | 1,131,081 |
Securities sold under agreement to repurchase and federal funds sold | 29,008 | 40,716 |
Federal Home Loan Bank advances | 540,000 | |
Subordinated debt | 126,004 | 129,544 |
Interest payable | 3,927 | 3,162 |
Derivatives | 63,532 | 21,000 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 618,290 | 1,797,740 |
Investment securities | 1,485,133 | 1,681,892 |
Loans, net | 8,859,226 | 7,566,717 |
Loans held for sale | 130,733 | 752,223 |
Interest receivable | 39,034 | 38,528 |
Mortgage servicing rights | 171,427 | 115,512 |
Derivatives | 53,990 | 27,384 |
Financial liabilities: | ||
Deposits, Without stated maturities | 8,843,012 | 9,705,816 |
Deposits, With stated maturities | 1,158,686 | 1,137,647 |
Securities sold under agreement to repurchase and federal funds sold | 29,008 | 40,716 |
Federal Home Loan Bank advances | 540,000 | |
Subordinated debt | 117,263 | 133,021 |
Interest payable | 3,927 | 3,162 |
Derivatives | 63,532 | 21,000 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 618,290 | 1,797,740 |
Investment securities | 0 | 0 |
Loans, net | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest receivable | 107 | 36 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 8,843,012 | 9,705,816 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreement to repurchase and federal funds sold | 29,008 | 40,716 |
Subordinated debt | 0 | 0 |
Interest payable | 730 | 140 |
Derivatives | 0 | 0 |
Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 1,485,133 | 1,681,892 |
Loans, net | 0 | 0 |
Loans held for sale | 97,011 | 672,924 |
Interest receivable | 6,546 | 6,461 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 53,990 | 27,384 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 1,158,686 | 1,137,647 |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest payable | 2,822 | 1,510 |
Derivatives | 63,532 | 21,000 |
Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Loans, net | 8,859,226 | 7,566,717 |
Loans held for sale | 33,722 | 79,299 |
Interest receivable | 32,381 | 32,031 |
Mortgage servicing rights | 171,427 | 115,512 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 |
Subordinated debt | 117,263 | 133,021 |
Interest payable | 375 | 1,512 |
Derivatives | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Balances and Levels of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Available-for-sale securities: | $ 1,482,171 | $ 1,678,525 |
Equity securities, at fair value | 2,962 | 3,367 |
Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 1,057,763 | 1,269,372 |
Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 17,847 | 15,250 |
Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 252,143 | 338,610 |
Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 107,297 | 14,908 |
Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 7,290 | 6,515 |
Recurring Basis | ||
Financial assets: | ||
Equity securities, at fair value | 2,962 | 3,367 |
Total securities | 1,485,133 | 1,681,892 |
Loans held for sale | 130,733 | 752,223 |
Mortgage servicing rights | 171,427 | 115,512 |
Derivatives | 53,990 | 27,384 |
Financial liabilities: | ||
Derivatives | 63,532 | 21,000 |
Recurring Basis | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 39,831 | 33,870 |
Recurring Basis | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 1,057,763 | 1,269,372 |
Recurring Basis | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 17,847 | 15,250 |
Recurring Basis | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 252,143 | 338,610 |
Recurring Basis | Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 107,297 | 14,908 |
Recurring Basis | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 7,290 | 6,515 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Total securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant other observable inputs (level 2) | ||
Financial assets: | ||
Equity securities, at fair value | 2,962 | 3,367 |
Total securities | 1,485,133 | 1,681,892 |
Loans held for sale | 97,011 | 672,924 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 53,990 | 27,384 |
Financial liabilities: | ||
Derivatives | 63,532 | 21,000 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 39,831 | 33,870 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 1,057,763 | 1,269,372 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 17,847 | 15,250 |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 252,143 | 338,610 |
Recurring Basis | Significant other observable inputs (level 2) | Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 107,297 | 14,908 |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 7,290 | 6,515 |
Recurring Basis | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Total securities | 0 | 0 |
Loans held for sale | 33,722 | 79,299 |
Mortgage servicing rights | 171,427 | 115,512 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis (Details) - Non-recurring Basis - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Other real estate owned | $ 2,193 | $ 6,308 |
Collateral dependent loans | 374 | 5,477 |
Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 12 | |
Construction | ||
Financial assets: | ||
Collateral dependent loans | 606 | |
Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 592 | |
Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 362 | |
Commercial real estate: | Owner-occupied | ||
Financial assets: | ||
Collateral dependent loans | 729 | |
Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 3,526 | |
Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 24 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate: | Owner-occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Commercial real estate: | Owner-occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 2,193 | 6,308 |
Collateral dependent loans | 374 | 5,477 |
Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 12 | |
Significant unobservable inputs (level 3) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 606 | |
Significant unobservable inputs (level 3) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 592 | |
Significant unobservable inputs (level 3) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | $ 362 | |
Significant unobservable inputs (level 3) | Commercial real estate: | Owner-occupied | ||
Financial assets: | ||
Collateral dependent loans | 729 | |
Significant unobservable inputs (level 3) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 3,526 | |
Significant unobservable inputs (level 3) | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | $ 24 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring Basis $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | $ 374 | $ 5,477 |
Other real estate owned | 2,193 | 6,308 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | 374 | 5,477 |
Other real estate owned | $ 2,193 | $ 6,308 |
Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.10 | 0.10 |
Other real estate owned, measurement input | 0 | 0 |
Significant unobservable inputs (level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.35 | 0.35 |
Other real estate owned, measurement input | 0.15 | 0.15 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Mortgage Loans | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Net (losses) gains from fair value changes of mortgage loans held for sale recorded in income | $ (4,276) | $ (3,908) | $ (16,479) | $ (14,894) | |
GNMA | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Delinquent GNMA loans that had been previously sold | $ 94,648 | ||||
Level 3 | Non-recurring Basis | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Amortized costs of collateral dependent loans | $ 578 | $ 578 | $ 5,781 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Loans Held for Sale at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | $ 130,733 | $ 752,223 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale, at fair value | 70,526 | 672,924 |
GNMA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale, at fair value | 26,485 | 0 |
Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | $ 33,722 | $ 79,299 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Changes in Fair Value Associated with Commercial Loans Held for Sale (Details) - Franklin Financial Network, Inc. - Commercial and industrial - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Aggregate Unpaid Principal Balance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Carrying value at beginning of period | $ 47,462 | $ 135,972 | $ 86,762 | $ 239,063 |
Change in fair value: | ||||
Pay-downs and pay-offs | (3,706) | (24,366) | (43,006) | (116,158) |
Write-offs to discount | (8,729) | (8,729) | (11,299) | |
Changes in valuation included in other noninterest income | 0 | 0 | 0 | 0 |
Carrying value at end of period | 35,027 | 111,606 | 35,027 | 111,606 |
Fair Value Discount | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Carrying value at beginning of period | (9,647) | (11,850) | (7,463) | (23,660) |
Change in fair value: | ||||
Pay-downs and pay-offs | 0 | 0 | 0 | |
Write-offs to discount | 8,729 | 8,729 | 11,299 | |
Changes in valuation included in other noninterest income | (387) | 740 | (2,571) | 1,251 |
Carrying value at end of period | (1,305) | (11,110) | (1,305) | (11,110) |
Fair Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Carrying value at beginning of period | 37,815 | 124,122 | 79,299 | 215,403 |
Change in fair value: | ||||
Pay-downs and pay-offs | (3,706) | (24,366) | (43,006) | (116,158) |
Write-offs to discount | 0 | 0 | 0 | |
Changes in valuation included in other noninterest income | (387) | 740 | (2,571) | 1,251 |
Carrying value at end of period | $ 33,722 | $ 100,496 | $ 33,722 | $ 100,496 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Differences Between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Aggregate fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 70,526 | $ 672,924 |
Nonaccrual commercial loans held for sale | 0 | 5,217 |
Aggregate fair value | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 33,722 | 74,082 |
Aggregate Unpaid Principal Balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 72,098 | 658,017 |
Nonaccrual commercial loans held for sale | 0 | 9,899 |
Aggregate Unpaid Principal Balance | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 35,027 | 76,863 |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | (1,572) | 14,907 |
Nonaccrual commercial loans held for sale | 0 | (4,682) |
Difference | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ (1,305) | $ (2,781) |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 10, 2022 channel | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment channel | Sep. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of distinct reportable segments | segment | 2 | |||||
Number of delivery channels, discontinued | channel | 1 | |||||
Number of distinct delivery channels | channel | 2 | |||||
Mortgage | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring charges | $ | $ 12,458 | $ 0 | ||||
Interest paid | $ | $ 4,143 | $ 6,075 | $ 14,659 | $ 17,585 |
Segment Reporting - Direct-to-c
Segment Reporting - Direct-to-consumer Channel Volume (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest Rate Lock Commitment | ||||
Revenue, Major Customer [Line Items] | ||||
Direct-to-consumer | $ 0 | $ 1,085,180,000 | $ 663,848,000 | $ 2,948,530,000 |
Retail | 408,879,000 | 926,723,000 | 1,755,008,000 | 2,726,956,000 |
Mortgage loan, sales volume | $ 408,879,000 | $ 2,011,903,000 | $ 2,418,856,000 | $ 5,675,486,000 |
Interest Rate Lock Commitment | Revenue Benchmark | Direct-to-consumer | ||||
Revenue, Major Customer [Line Items] | ||||
Volume/Sale % by line of business | 0% | 53.90% | 27.40% | 52% |
Interest Rate Lock Commitment | Revenue Benchmark | Retail | ||||
Revenue, Major Customer [Line Items] | ||||
Volume/Sale % by line of business | 100% | 46.10% | 72.60% | 48% |
Mortgage | ||||
Revenue, Major Customer [Line Items] | ||||
Direct-to-consumer | $ 48,490,000 | $ 809,887,000 | $ 1,024,838,000 | $ 2,562,681,000 |
Retail | 521,165,000 | 726,010,000 | 1,698,987,000 | 2,226,795,000 |
Mortgage loan, sales volume | $ 569,655,000 | $ 1,535,897,000 | $ 2,723,825,000 | $ 4,789,476,000 |
Mortgage | Revenue Benchmark | Direct-to-consumer | ||||
Revenue, Major Customer [Line Items] | ||||
Volume/Sale % by line of business | 8.50% | 52.70% | 37.60% | 53.50% |
Mortgage | Revenue Benchmark | Retail | ||||
Revenue, Major Customer [Line Items] | ||||
Volume/Sale % by line of business | 91.50% | 47.30% | 62.40% | 46.50% |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 111,384 | $ 88,476 | $ 301,737 | $ 257,615 | |
Provision for credit losses | 11,367 | (2,531) | 19,438 | (30,224) | |
Mortgage banking income | 16,729 | 47,751 | 69,718 | 146,990 | |
Change in fair value of mortgage servicing rights, net of hedging | (4,345) | (2,367) | (5,244) | (10,775) | |
Other noninterest income | 10,208 | 13,622 | 32,724 | 38,821 | |
Depreciation and amortization | 2,057 | 2,140 | 6,105 | 6,288 | |
Amortization of intangibles | 1,108 | 1,344 | 3,546 | 4,178 | |
Other noninterest expense | 78,682 | 91,523 | 258,465 | 272,199 | |
Income before income taxes | 40,762 | 55,006 | 111,381 | 180,210 | |
Income tax expense | 8,931 | 9,716 | 24,961 | 38,744 | |
Net income applicable to FB Financial Corporation and noncontrolling interest | 31,831 | 45,290 | 86,420 | 141,466 | |
Net income applicable to noncontrolling interest | 0 | 0 | 8 | 8 | |
Net income applicable to FB Financial Corporation | 31,831 | 45,290 | 86,412 | 141,458 | |
Assets | 12,258,082 | 11,810,290 | 12,258,082 | 11,810,290 | $ 12,597,686 |
Goodwill | 242,561 | 242,561 | 242,561 | 242,561 | $ 242,561 |
Provision (reversal) for credit losses on unfunded commitments | 3,178 | 301 | 9,197 | (2,875) | |
Mortgage restructuring expense | 0 | 0 | 12,458 | 0 | |
Banking(4) | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 111,384 | 88,576 | 301,739 | 257,726 | |
Provision for credit losses | 11,367 | (2,531) | 19,438 | (30,224) | |
Mortgage banking income | 0 | 0 | 0 | 0 | |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | 0 | 0 | |
Other noninterest income | 10,293 | 13,823 | 32,975 | 39,223 | |
Depreciation and amortization | 1,867 | 1,791 | 5,308 | 5,267 | |
Amortization of intangibles | 1,108 | 1,344 | 3,546 | 4,178 | |
Other noninterest expense | 62,911 | 55,642 | 175,936 | 163,261 | |
Income before income taxes | 44,424 | 46,153 | 130,486 | 154,467 | |
Assets | 11,648,610 | 10,712,281 | 11,648,610 | 10,712,281 | |
Goodwill | 242,561 | 242,561 | 242,561 | 242,561 | |
Mortgage | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 0 | (100) | (2) | (111) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Mortgage banking income | 16,729 | 47,751 | 69,718 | 146,990 | |
Change in fair value of mortgage servicing rights, net of hedging | (4,345) | (2,367) | (5,244) | (10,775) | |
Other noninterest income | (85) | (201) | (251) | (402) | |
Depreciation and amortization | 190 | 349 | 797 | 1,021 | |
Amortization of intangibles | 0 | 0 | 0 | 0 | |
Other noninterest expense | 15,771 | 35,881 | 82,529 | 108,938 | |
Income before income taxes | (3,662) | 8,853 | (19,105) | 25,743 | |
Assets | 609,472 | 1,098,009 | 609,472 | 1,098,009 | |
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum Capital Requirements (D
Minimum Capital Requirements (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,501,110 | $ 1,434,581 |
Actual, Ratio | 0.130 | 0.145 |
Minimum Capital adequacy with capital buffer, Amount | $ 1,210,236 | $ 1,039,984 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,287,489 | $ 1,251,874 |
Actual, Ratio | 0.112 | 0.126 |
Minimum Capital adequacy with capital buffer, Amount | $ 979,715 | $ 841,892 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,287,489 | $ 1,251,874 |
Actual, Ratio | 0.107 | 0.105 |
Minimum Capital adequacy with capital buffer, Amount | $ 479,489 | $ 474,831 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,257,489 | $ 1,221,874 |
Actual Ratio | 10.90% | 12.30% |
Minimum Capital adequacy with capital buffer, Amount | $ 806,824 | $ 693,322 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,472,955 | $ 1,396,407 |
Actual, Ratio | 0.128 | 0.141 |
Minimum Capital adequacy with capital buffer, Amount | $ 1,208,502 | $ 1,038,760 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
To be well capitalized under prompt corrective action provisions, Amount | $ 1,150,954 | $ 989,295 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,259,334 | $ 1,213,700 |
Actual, Ratio | 0.109 | 0.123 |
Minimum Capital adequacy with capital buffer, Amount | $ 978,311 | $ 840,901 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
To be well capitalized under prompt corrective action provisions, Amount | $ 920,764 | $ 791,436 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,259,334 | $ 1,213,700 |
Actual, Ratio | 0.105 | 0.102 |
Minimum Capital adequacy with capital buffer, Amount | $ 479,290 | $ 474,044 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
To be well capitalized under prompt corrective action provisions, Amount | $ 599,113 | $ 592,555 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,259,334 | $ 1,213,700 |
Actual Ratio | 10.90% | 12.30% |
Minimum Capital adequacy with capital buffer, Amount | $ 805,668 | $ 692,507 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
To be well capitalized under prompt corrective action provisions, Amount | $ 748,120 | $ 643,042 |
To be well capitalized under prompt corrective action provisions, Ratio | 6.50% | 6.50% |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Restricted Stock Units (Details) - RSUs | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Restricted Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 492,320,000 |
Granted (in shares) | shares | 143,036,000 |
Vested (in shares) | shares | (202,652,000) |
Forfeited (in shares) | shares | (46,496,000) |
Balance at end of period (in shares) | shares | 386,208,000 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 36.06 |
Granted (in dollars per share) | $ / shares | 43.74 |
Vested (in dollars per share) | $ / shares | 36.12 |
Forfeited (in dollars per share) | $ / shares | 34.51 |
Balance at end of period (in dollars per share) | $ / shares | $ 38.99 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | $ 8,153 | $ 8,065 | |||
Dividends declared not paid on restricted stock units | $ 173 | $ 340 | 173 | 340 | |
Proceeds from employee payroll withholdings | 499 | 632 | 1,087 | 1,443 | |
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of restricted stock units vested and released | 1,474 | 10,749 | 7,320 | 15,941 | |
Compensation cost related to nonvested awards | 1,701 | 2,365 | 5,753 | 7,024 | |
Unrecognized compensation cost related to nonvested awards | 10,686 | $ 10,686 | |||
Expected weighted-average period to be recognized | 2 years 3 months 18 days | ||||
Dividends declared not paid on restricted stock units | $ 265 | $ 265 | $ 274 | ||
RSUs | 2016-LTIP Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuable (in shares) | 1,737,539 | 1,737,539 | |||
RSUs | Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | $ 171 | 168 | $ 485 | 467 | |
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | 832 | $ 551 | 2,400 | $ 1,041 | |
Unrecognized compensation cost related to nonvested awards | $ 9,753 | $ 9,753 | |||
Expected weighted-average period to be recognized | 2 years | ||||
Maximum unrecognized compensation cost, payout percentage | 200% | 200% | |||
PSUs | Executives and Other Officers and Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Criteria period | 3 years | ||||
PSUs | Executives and Other Officers and Employees | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Core return threshold percentages | 0% | ||||
PSUs | Executives and Other Officers and Employees | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Core return threshold percentages | 200% | ||||
Employee Stock | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuable (in shares) | 200,000 | 200,000 | |||
Purchase price percentage of subsequent offering periods | 95% | ||||
Maximum number of shares per participant (in shares) | 725 | ||||
Maximum worth of award per participant | $ 25 | ||||
Shares issued under plan (in shares) | 11,798 | 15,744 | 26,950 | 37,310 | |
Number of shares reserved for issuance (in shares) | 2,314,746 | 2,314,746 |
Stock-Based Compensation - Ch_2
Stock-Based Compensation - Changes in Performance Stock Units (Details) - PSUs | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Performance Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 115,750 |
Granted (in shares) | shares | 69,291 |
Vested (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | (10,659) |
Balance at end of period (in shares) | shares | 174,382 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 40.13 |
Granted (in dollars per share) | $ / shares | 44.44 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 42.76 |
Balance at end of period (in dollars per share) | $ / shares | $ 41.68 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares, Activity (Details) - PSUs | Sep. 30, 2022 shares |
Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Outstanding | 49,964 |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Outstanding | 59,496 |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Outstanding | 64,922 |
Related Party Transactions - Lo
Related Party Transactions - Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2022 | $ 29,010 |
New loans and advances | 55,428 |
Change in related party status | (9,939) |
Repayments | (2,345) |
Loans outstanding at September 30, 2022 | $ 72,154 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Deposits from related parties | $ 311,197,000 | $ 311,197,000 | $ 312,956,000 | ||
Aviation Time Sharing Agreements | |||||
Related Party Transaction [Line Items] | |||||
Payments to related party | 0 | $ 0 | 0 | $ 32,000 | |
Directors | |||||
Related Party Transaction [Line Items] | |||||
Unamortized leasehold improvements | 1,000 | 1,000 | 6,000 | ||
Operating lease expense | 96,000 | 128,000 | 297,000 | 388,000 | |
Directors | Aviation Time Sharing Agreements | FBK Aviation, LLC | |||||
Related Party Transaction [Line Items] | |||||
Income from related party | 17,000 | 0 | 36,000 | 0 | |
Former Majority Shareholder | Registration Rights Agreement | |||||
Related Party Transaction [Line Items] | |||||
Share registration expenses | 0 | $ 0 | 0 | $ 605,000 | |
Unfunded Loan Commitment | Certain Executive Officers, Certain Management and Directors and Their Associates | |||||
Related Party Transaction [Line Items] | |||||
Unfunded commitments | $ 34,875,000 | $ 34,875,000 | $ 10,994,000 |