Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,781,020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 133,874 | $ 259,872 |
Federal funds sold and reverse repurchase agreements | 63,994 | 210,536 |
Interest-bearing deposits in financial institutions | 1,122,083 | 556,644 |
Cash and cash equivalents | 1,319,951 | 1,027,052 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,471,005 | 1,471,186 |
Equity securities, at fair value | 3,059 | 2,990 |
Federal Home Loan Bank stock, at cost | 43,369 | 58,641 |
Loans held for sale (includes $61,987 and $113,240 at fair value, respectively) | 82,515 | 139,451 |
Loans held for investment | 9,365,996 | 9,298,212 |
Less: allowance for credit losses | 138,809 | 134,192 |
Net loans held for investment | 9,227,187 | 9,164,020 |
Premises and equipment, net | 153,397 | 146,316 |
Other real estate owned, net | 4,085 | 5,794 |
Operating lease right-of-use assets | 57,054 | 60,043 |
Interest receivable | 44,737 | 45,684 |
Mortgage servicing rights, at fair value | 164,879 | 168,365 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 11,378 | 12,368 |
Bank-owned life insurance | 74,963 | 75,329 |
Other assets | 201,007 | 227,956 |
Total assets | 13,101,147 | 12,847,756 |
Deposits | ||
Noninterest-bearing | 2,489,149 | 2,676,631 |
Interest-bearing checking | 3,292,883 | 3,059,984 |
Money market and savings | 3,904,013 | 3,697,245 |
Customer time deposits | 1,496,024 | 1,420,131 |
Brokered and internet time deposits | 846 | 1,843 |
Total deposits | 11,182,915 | 10,855,834 |
Borrowings | 312,131 | 415,677 |
Operating lease liabilities | 67,345 | 69,754 |
Accrued expenses and other liabilities | 168,967 | 180,973 |
Total liabilities | 11,731,358 | 11,522,238 |
Commitments and contingencies (Note 8) | ||
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 46,762,626 and 46,737,912 shares issued and outstanding, respectively | 46,763 | 46,738 |
Additional paid-in capital | 856,628 | 861,588 |
Retained earnings | 615,871 | 586,532 |
Accumulated other comprehensive loss, net | (149,566) | (169,433) |
Total FB Financial Corporation common shareholders' equity | 1,369,696 | 1,325,425 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,369,789 | 1,325,518 |
Total liabilities and shareholders' equity | $ 13,101,147 | $ 12,847,756 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair value of loan held for sale | $ 82,515 | $ 139,451 |
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) | 46,762,626 | 46,737,912 |
Common stock, shares outstanding (in shares) | 46,762,626 | 46,737,912 |
Fair Value | ||
Fair value of loan held for sale | $ 61,987 | $ 113,240 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Interest and fees on loans | $ 140,356 | $ 86,864 |
Interest on securities | ||
Taxable | 6,570 | 5,420 |
Tax-exempt | 1,804 | 1,866 |
Other | 10,750 | 977 |
Total interest income | 159,480 | 95,127 |
Interest expense: | ||
Interest (expense) income on deposits | 52,863 | 5,462 |
Interest (expense) income on borrowings | 2,957 | 1,483 |
Total interest expense | 55,820 | 6,945 |
Net interest income | 103,660 | 88,182 |
Provision for credit losses | 4,997 | (6,129) |
Provision for credit losses on unfunded commitments | (4,506) | 1,882 |
Net interest income after provisions for credit losses | 103,169 | 92,429 |
Noninterest income: | ||
Gain (loss) from securities, net | 69 | (152) |
Loss on sales or write-downs of other real estate owned and other assets | (183) | (434) |
Other income | 3,550 | 2,314 |
Total noninterest income | 23,349 | 41,392 |
Noninterest expenses: | ||
Salaries, commissions and employee benefits | 48,788 | 59,443 |
Occupancy and equipment expense | 5,909 | 5,403 |
Legal and professional fees | 3,108 | 2,607 |
Data processing | 2,113 | 2,481 |
Amortization of core deposit and other intangibles | 990 | 1,244 |
Advertising | 2,133 | 4,033 |
Other expense | 17,399 | 14,061 |
Total noninterest expense | 80,440 | 89,272 |
Income before income taxes | 46,078 | 44,549 |
Income tax expense | 9,697 | 9,313 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 36,381 | 35,236 |
Net income applicable to noncontrolling interest | 0 | 0 |
Net income applicable to FB Financial Corporation | $ 36,381 | $ 35,236 |
Earnings per common share | ||
Basic (in dollars per share) | $ 0.78 | $ 0.74 |
Diluted (in dollars per share) | $ 0.78 | $ 0.74 |
Mortgage banking income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 12,086 | $ 29,531 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 3,053 | 2,914 |
ATM and interchange fees | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 2,396 | 5,087 |
Investment services and trust income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 2,378 | $ 2,132 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 36,381 | $ 35,236 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized gain (loss) in available-for-sale securities, net of tax expenses (benefits) of $7,059 and $(27,483) | 20,064 | (78,175) |
Reclassification adjustment for gain on sale of securities included in net income, net of tax expenses of $— and $1 | 0 | (1) |
Net unrealized (loss) gain in hedging activities, net of tax (benefits) expenses of $(70) and $273 | (197) | 774 |
Total other comprehensive income (loss), net of tax | 19,867 | (77,402) |
Comprehensive income (loss) applicable to FB Financial Corporation and noncontrolling interest | 56,248 | (42,166) |
Comprehensive income applicable to noncontrolling interest | 0 | 0 |
Comprehensive income (loss) applicable to FB Financial Corporation | $ 56,248 | $ (42,166) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net tax (benefits) expenses on net change in unrealized gain (loss) on available-for-sale securities | $ 7,059 | $ (27,483) |
Net tax expense (benefit) on reclassification adjustment for gain on sale of securities included in net income | 0 | (1) |
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | $ (70) | $ 273 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | RSUs | PSUs | Total common shareholders' equity | Total common shareholders' equity RSUs | Total common shareholders' equity PSUs | Common stock | Common stock RSUs | Common stock PSUs | Additional paid-in capital | Additional paid-in capital RSUs | Additional paid-in capital PSUs | Retained earnings | Accumulated other comprehensive income (loss), net | Noncontrolling interest |
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 | 35,236 | 35,236 | 35,236 | 0 | |||||||||||
Other comprehensive income (loss), net of taxes | (77,402) | (77,402) | (77,402) | ||||||||||||
Repurchase of common stock | (6,203) | (6,203) | (145) | (6,058) | |||||||||||
Stock based compensation expense | 2,582 | 2,582 | 1 | 2,581 | |||||||||||
Restricted stock units vested and distributed, net of shares withheld | $ (1,488) | $ (1,488) | $ 68 | $ (1,556) | |||||||||||
Shares issued under employee stock purchase program | 687 | 687 | 15 | 672 | |||||||||||
Dividends declared | (6,238) | (6,238) | (6,238) | ||||||||||||
Ending balance at Mar. 31, 2022 | 1,379,869 | 1,379,776 | 47,488 | 888,168 | 515,664 | (71,544) | 93 | ||||||||
Beginning balance at Dec. 31, 2022 | 1,325,518 | 1,325,425 | 46,738 | 861,588 | 586,532 | (169,433) | 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 36,381 | 36,381 | 36,381 | 0 | |||||||||||
Other comprehensive income (loss), net of taxes | 19,867 | 19,867 | 19,867 | ||||||||||||
Repurchase of common stock | (4,944) | (4,944) | (136) | (4,808) | |||||||||||
Stock based compensation expense | 2,285 | 2,285 | 1 | 2,284 | |||||||||||
Restricted stock units vested and distributed, net of shares withheld | (1,452) | $ (1,145) | (1,452) | $ (1,145) | 92 | $ 60 | (1,544) | $ (1,205) | |||||||
Shares issued under employee stock purchase program | $ 321 | $ 321 | $ 8 | $ 313 | |||||||||||
Dividends declared | (7,042) | (7,042) | (7,042) | ||||||||||||
Ending balance at Mar. 31, 2023 | $ 1,369,789 | $ 1,369,696 | $ 46,763 | $ 856,628 | $ 615,871 | $ (149,566) | $ 93 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.15 | $ 0.13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income attributable to FB Financial Corporation and noncontrolling interest | $ 36,381,000 | $ 35,236,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of fixed assets and software | 2,228,000 | 2,036,000 |
Amortization of core deposit and other intangibles | 990,000 | 1,244,000 |
Amortization of issuance costs on subordinated debt | 97,000 | 97,000 |
Capitalization of mortgage servicing rights | (1,788,000) | (9,812,000) |
Net change in fair value of mortgage servicing rights | 5,274,000 | (19,351,000) |
Stock-based compensation expense | 2,285,000 | 2,582,000 |
Provision for credit losses | 4,997,000 | (6,129,000) |
Provision for credit losses on unfunded commitments | (4,506,000) | 1,882,000 |
Provision for mortgage loan repurchases | (250,000) | (389,000) |
(Accretion) amortization of discounts and premiums on acquired loans, net | (319,000) | 2,352,000 |
Amortization of premiums and accretion of discounts on securities, net | 1,382,000 | 1,992,000 |
(Gain) loss from securities, net | (69,000) | 152,000 |
Originations of loans held for sale | (295,760,000) | (993,733,000) |
Proceeds from sale of loans held for sale | 340,108,000 | 1,330,701,000 |
Gain on sale and change in fair value of loans held for sale | (8,635,000) | (21,675,000) |
Net loss on write-downs of other real estate owned and other assets | 183,000 | 434,000 |
Provision for deferred income taxes | 1,396,000 | 9,313,000 |
Earnings on bank-owned life insurance | (605,000) | (354,000) |
Changes in: | ||
Operating lease assets and liabilities, net | 580,000 | (190,000) |
Other assets and interest receivable | 62,512,000 | (62,043,000) |
Accrued expenses and other liabilities | (48,099,000) | 13,900,000 |
Net cash provided by operating activities | 98,382,000 | 288,245,000 |
Activity in available-for-sale securities: | ||
Maturities, prepayments and calls | 26,827,000 | 57,443,000 |
Purchases | (660,000) | (170,093,000) |
Net change in loans | (52,540,000) | (362,408,000) |
Sales of FHLB stock | 21,637,000 | 0 |
Purchases of FHLB stock | (6,365,000) | (2,216,000) |
Purchases of premises and equipment | (9,450,000) | (601,000) |
Proceeds from the sale of other real estate owned and other assets | 2,031,000 | 121,000 |
Proceeds from bank-owned life insurance | 236,000 | 0 |
Net cash used in investing activities | (18,284,000) | (477,754,000) |
Cash flows from financing activities: | ||
Net increase in demand deposits | 251,069,000 | 238,893,000 |
Net increase (decrease) in time deposits | 74,896,000 | (75,765,000) |
Net decrease in securities sold under agreements to repurchase and federal funds purchased | (48,815,000) | (14,779,000) |
Net decrease in short-term FHLB advances | (50,000,000) | 0 |
Share based compensation withholding payments | (2,597,000) | (1,488,000) |
Net proceeds from sale of common stock under employee stock purchase program | 321,000 | 687,000 |
Repurchase of common stock | (4,944,000) | (6,203,000) |
Dividends paid on common stock | (6,994,000) | (6,194,000) |
Dividend equivalent payments made upon vesting of equity compensation | (135,000) | (71,000) |
Net cash provided by financing activities | 212,801,000 | 135,080,000 |
Net change in cash and cash equivalents | 292,899,000 | (54,429,000) |
Cash and cash equivalents at beginning of the period | 1,027,052,000 | 1,797,740,000 |
Cash and cash equivalents at end of the period | 1,319,951,000 | 1,743,311,000 |
Supplemental cash flow information: | ||
Interest paid | 52,634,000 | 8,631,000 |
Taxes (refunded) paid, net | (904,000) | 72,000 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate owned | 235,000 | 563,000 |
Transfers from loans to loans held for sale | 7,126,000 | 8,700,000 |
Transfers from loans held for sale to loans | 776,000 | 47,956,000 |
Decrease in rebooked GNMA loans under optional repurchase program | (5,683,000) | 0 |
Trade date payable - securities | 245,000 | 0 |
Dividends declared not paid on restricted stock units | 48,000 | 60,000 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 3,375,000 | $ 283,000 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
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 primarily through its wholly-owned subsidiary, FirstBank (the "Bank"). As of March 31, 2023, the Bank had 82 full-service branches throughout Tennessee, Alabama, southern Kentucky and north Georgia, and a 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 calculations for each of the periods presented: Three Months Ended March 31, 2023 2022 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 36,381 $ 35,236 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 36,381 $ 35,236 Weighted average basic shares outstanding 46,679,618 47,530,520 Basic earnings per common share $ 0.78 $ 0.74 Diluted earnings per common share: Earnings available to common shareholders $ 36,381 $ 35,236 Weighted average basic shares outstanding 46,679,618 47,530,520 Weighted average diluted shares contingently issuable (1) 85,536 193,382 Weighted average diluted shares outstanding 46,765,154 47,723,902 Diluted earnings per common share $ 0.78 $ 0.74 (1) Excludes 159,946 and 123,709 restricted stock units outstanding considered to be antidilutive for the three months ended March 31, 2023 and 2022, respectively. Recently adopted accounting standards: 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. The Company adopted the update effective January 1, 2023. The adoption of this standard did not have an impact on the consolidated financial statements or 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 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 prospectively adopted the amendment effective January 1, 2023 and updated its disclosures for the first quarter of 2023. Refer to Note 3 for further information. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Newly issued not yet effective accounting standards: In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” as part of the Post-Implementation Review process of Topic 842 around related party arrangements between entities under common control. Under previous guidance, a lessee is generally required to amortize leasehold improvements that it owns over the shorter of the useful life of those improvements or the lease term. However, due to the nature of leasehold improvements made under leases between entities under common control, ASU 2023-01 requires a lessee in a common-control arrangement to amortize such leasehold improvements that it owns over the improvements' useful life to the common control group, regardless of the lease term. The ASU becomes effective January 1, 2024 and is not expected to have a material impact on the Company's consolidated financial statements and related disclosures. Additionally, in March 2023, the FASB issued ASU 2023-02, "Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method". The amendments in this update permit reporting entities to elect to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. 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 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 issued 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 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 one-time 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. In December 2022, the FASB issued ASU 2022-06, "Reference rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" to extend the date to December 31, 2024 for companies to apply the relief in Topic 848. The Company's 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, the Company ceased utilization of LIBOR as an index in newly originated loans or loans that are refinanced. Additionally, the Company identified existing products that utilize LIBOR and are implementing contract modifications to facilitate the transition to alternative reference rates. ASU 2020-04 and ASU 2021-01 are not expected to have a material impact on the Company's 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 March 31, 2023, 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 loss at March 31, 2023 and December 31, 2022: March 31, 2023 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 $ 45,176 $ — $ (4,248) $ — $ 40,928 Mortgage-backed securities - residential 1,197,702 — (172,314) — 1,025,388 Mortgage-backed securities - commercial 18,979 — (1,256) — 17,723 Municipal securities 295,010 967 (24,983) — 270,994 U.S. Treasury securities 113,403 — (4,580) — 108,823 Corporate securities 8,000 — (851) — 7,149 Total $ 1,678,270 $ 967 $ (208,232) $ — $ 1,471,005 December 31, 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 $ 45,167 $ — $ (5,105) $ — $ 40,062 Mortgage-backed securities - residential 1,224,522 — (190,329) — 1,034,193 Mortgage-backed securities - commercial 19,209 — (1,565) — 17,644 Municipal securities 295,375 458 (31,413) — 264,420 U.S. Treasury securities 113,301 — (5,621) — 107,680 Corporate securities 8,000 — (813) — 7,187 Total $ 1,705,574 $ 458 $ (234,846) $ — $ 1,471,186 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 March 31, 2023 and December 31, 2022, total accrued interest receivable on debt securities was $5,399 and $5,470, respectively. Securities pledged at March 31, 2023 and December 31, 2022 had carrying amounts of $1,184,836 and $1,191,021, respectively, and were pledged to secure a Federal Reserve Bank line of credit, public deposits and repurchase agreements. There were no holdings of debt 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. As of March 31, 2023, there were $245 in trade date payables that related to purchases settled after period end. There were no such trade date payables as of December 31, 2022. The amortized cost and fair value of debt securities by contractual maturity as of March 31, 2023 and December 31, 2022 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. March 31, December 31, 2023 2022 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 34,965 $ 34,270 $ 4,277 $ 4,225 Due in one to five years 138,189 130,585 161,556 152,181 Due in five to ten years 58,876 56,982 61,290 57,859 Due in over ten years 229,559 206,057 234,720 205,084 461,589 427,894 461,843 419,349 Mortgage-backed securities - residential 1,197,702 1,025,388 1,224,522 1,034,193 Mortgage-backed securities - commercial 18,979 17,723 19,209 17,644 Total debt securities $ 1,678,270 $ 1,471,005 $ 1,705,574 $ 1,471,186 Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended March 31, 2023 2022 Proceeds from sales $ — $ — Proceeds from maturities, prepayments and calls 26,827 57,443 Gross realized gains — 2 Gross realized losses — — The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2023 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 $ 4,014 $ (94) $ 36,913 $ (4,154) $ 40,927 $ (4,248) Mortgage-backed securities - residential 101,194 (4,425) 924,189 (167,889) 1,025,383 (172,314) Mortgage-backed securities - commercial 11,311 (740) 6,415 (516) 17,726 (1,256) Municipal securities 43,100 (1,872) 161,743 (23,111) 204,843 (24,983) U.S. Treasury securities 60,669 (1,276) 48,154 (3,304) 108,823 (4,580) Corporate securities 946 (55) 6,281 (796) 7,227 (851) Total $ 221,234 $ (8,462) $ 1,183,695 $ (199,770) $ 1,404,929 $ (208,232) December 31, 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 $ 23,791 $ (2,802) $ 16,271 $ (2,303) $ 40,062 $ (5,105) Mortgage-backed securities - residential 316,656 (32,470) 717,533 (157,859) 1,034,189 (190,329) Mortgage-backed securities - commercial 11,104 (968) 6,541 (597) 17,645 (1,565) Municipal securities 196,419 (26,811) 36,726 (4,602) 233,145 (31,413) U.S. Treasury securities 94,248 (4,122) 13,434 (1,499) 107,682 (5,621) Corporate securities 4,008 (492) 3,270 (321) 7,278 (813) Total $ 646,226 $ (67,665) $ 793,775 $ (167,181) $ 1,440,001 $ (234,846) As of March 31, 2023 and December 31, 2022, the Company’s debt securities portfolio consisted of 506 and 503 securities, 409 and 454 of which were in an unrealized loss position, respectively. During the three months ended March 31, 2023, the Company's available-for-sale debt securities portfolio unrealized value increased $27,123 to an unrealized loss position of $207,265 from an unrealized loss position of $234,388 as of December 31, 2022. During the three months ended March 31, 2022, the Company's available-for-sale debt securities portfolio unrealized value declined $105,660 to an unrealized loss position of $100,933 from an unrealized gain position of $4,727 as of December 31, 2021. The majority of the investment portfolio was either government guaranteed, an issuance of a government sponsored entity or highly rated by major credit rating agencies and the Company has historically not recorded any losses associated with these investments. Municipal securities with market values below amortized cost at March 31, 2023 were reviewed for material credit events and/or rating downgrades with individual credit reviews performed. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities and the issuers will continue to be observed as a part of the Company’s ongoing credit monitoring. As such, as of March 31, 2023 and December 31, 2022, it was determined that all available-for-sale debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Further, the Company does not intend to sell those available-for-sale securities that have an unrealized loss as of March 31, 2023, and it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis. Therefore, there was no provision for credit losses recognized on available-for-sale debt securities during the three months ended March 31, 2023 or 2022. Equity Securities As of March 31, 2023 and December 31, 2022, the Company had $3,059 and $2,990, in marketable equity securities recorded at fair value, respectively. The Company had equity securities without readily determinable market value included in other assets on the consolidated balance sheets with carrying amounts of $22,483 and $22,496 at March 31, 2023 and December 31, 2022, respectively. Additionally, the Company had $43,369 and $58,641 of Federal Home Loan Bank stock carried at cost at March 31, 2023 and December 31, 2022, respectively, included separately from the other equity securities discussed above. The change in the fair value of equity securities and sale of equity securities with readily determinable fair values resulted in a net gain of $69 and a net loss of $154 for the three months ended March 31, 2023 and 2022, respectively. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Loans and allowance for credit losses: Loans outstanding as of March 31, 2023 and December 31, 2022, by class of financing receivable are as follows: March 31, December 31, 2023 2022 Commercial and industrial $ 1,671,398 $ 1,645,783 Construction 1,697,513 1,657,488 Residential real estate: 1-to-4 family mortgage 1,562,503 1,573,121 Residential line of credit 497,391 496,660 Multi-family mortgage 489,379 479,572 Commercial real estate: Owner-occupied 1,136,978 1,114,580 Non-owner occupied 1,939,517 1,964,010 Consumer and other 371,317 366,998 Gross loans 9,365,996 9,298,212 Less: Allowance for credit losses (138,809) (134,192) Net loans $ 9,227,187 $ 9,164,020 As of March 31, 2023 and December 31, 2022, $849,349 and $909,734, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,709,763 and $1,763,730, 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 March 31, 2023 and December 31, 2022, qualifying loans of $3,164,317 and $3,118,172, 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 March 31, 2023 and December 31, 2022, accrued interest receivable on loans held for investment amounted to $37,005 and $38,507, 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 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. 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 Company performed qualitative evaluations within the Company's established qualitative framework, assessing the impact of the current economic outlook (including uncertainty due to inflation, recent bank failures, 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 months ended March 31, 2023 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. These forecasts included weighted projections that the economy may be nearing a recession, reflected through deterioration in asset quality projected over life of the loan portfolio. Loss rates on residential loans and HELOC were qualitatively adjusted downwards, addressing the relative strength of asset values in the Company's predominant markets. The Company calculates its allowance for credit losses using a lifetime loss rate methodology and disaggregates the loan portfolio into three pools. The following presents a summary of quantitative and qualitative factors considered as of March 31, 2023, which resulted in changes in the allowance for credit losses compared to December 31, 2022 as described below. Pool Source of repayment Quantitative and Qualitative factors considered Commercial and Industrial Repayment is largely dependent Quantitative: Prepayment speeds are modeled in the form of a prepayment benchmarking that directly impacts the ACL output for all C&I loans and lines of credit. Loss rates incorporate a peer scaling factor. Qualitative: An uncertain economic outlook including the effects of inflation and the interest rate environment are driving a qualitative increase in the ACL. Retail Repayment is primarily dependent on the personal cash flow of the borrower. Quantitative: Average FICO scores, remaining life of the portfolio, delinquency composition, prepayment speeds leveraging Equifax and Moody's data Qualitative: High modeled loss rates and the relatively strong housing market within the bank’s footprint are driving a qualitative decrease in the ACL. Commercial Real Estate Repayment is primarily dependent on lease income generated from the underlying collateral. Quantitative: Prepayment speeds leverage a reverse-compounding formula. Loss rates incorporate a peer scaling factor. Qualitative: Changes in asset quality are driving a minor qualitative increase in the ACL. 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. Effective January 1, 2023, the Company prospectively adopted the accounting guidance in ASU 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures", which eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, the Company no longer measures an allowance for credit losses for TDRs it reasonably expects will occur, and it evaluates all loan modifications according to the accounting guidance for loan refinancing and modifications to determine whether the modification should be accounted for as a new loan or a continuation of the existing loan. After adoption, the Company now derecognizes the existing loan and accounts for the modified loan as a new loan if the effective yield on the modified loan is at least equal to the effective yield for comparable loans with similar collection risks and the modifications to the original loan are more than minor. If a loan modification does not meet these conditions, it extends the existing loan’s amortized cost basis and accounts for the modified loan as a continuation of the existing loan. Prior to January 1, 2023, 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 used 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 was measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. As a result of the difference in methodology between periods, disclosures related to loan modifications made to borrowers experiencing financial difficulty and TDRs may not be comparative in nature. The following tables provide the changes in the allowance for credit losses by class of financing receivable for the three months ended March 31, 2023 and 2022: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2023 Beginning balance - December 31, 2022 $ 11,106 $ 39,808 $ 26,141 $ 7,494 $ 6,490 $ 7,783 $ 21,916 $ 13,454 $ 134,192 Provision for credit losses (10) 1,217 1,073 1,540 129 103 (48) 993 4,997 Recoveries of loans previously charged-off 67 — 15 — — 66 — 239 387 Loans charged off (46) — (16) — — — — (705) (767) Ending balance - March 31, 2023 $ 11,117 $ 41,025 $ 27,213 $ 9,034 $ 6,619 $ 7,952 $ 21,868 $ 13,981 $ 138,809 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 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 (4,006) 3,206 1,908 641 (578) (4,187) (4,478) 1,365 (6,129) Recoveries of loans previously charged-off 958 — 12 1 — 10 — 217 1,198 Loans charged off (4) — — — — — — (575) (579) Ending balance - $ 12,699 $ 31,782 $ 21,024 $ 6,545 $ 6,398 $ 8,416 $ 21,290 $ 11,895 $ 120,049 Credit Quality - Commercial Type 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. The following tables present the credit quality of the Company's commercial type loan portfolio as of March 31, 2023 and December 31, 2022 and the gross charge-offs for the three months ended March 31, 2023 by year of origination. 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. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period activity of gross charge-offs by year of origination are not included in the below tables. As of and for the three months ended March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 40,396 $ 383,606 $ 193,605 $ 53,715 $ 83,158 $ 92,586 $ 785,130 $ 1,632,196 Special Mention — 2,625 4 — 159 891 7,040 10,719 Classified 457 2,692 647 1,939 1,476 6,818 14,454 28,483 Total 40,853 388,923 194,256 55,654 84,793 100,295 806,624 1,671,398 Current-period gross — 46 — — — — — 46 Construction Pass 41,824 769,011 430,782 110,280 77,147 56,628 207,940 1,693,612 Special Mention — 2,797 — 6 — 698 — 3,501 Classified — 78 322 — — — — 400 Total 41,824 771,886 431,104 110,286 77,147 57,326 207,940 1,697,513 Current-period gross — — — — — — — — Residential real estate: Multi-family mortgage Pass 10,827 144,897 147,358 95,536 33,362 42,701 13,557 488,238 Special Mention — — — — — — — — Classified — — — — — 1,141 — 1,141 Total 10,827 144,897 147,358 95,536 33,362 43,842 13,557 489,379 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 24,353 227,787 229,910 114,965 158,969 310,138 43,682 1,109,804 Special Mention — 6,295 677 — 165 3,397 5,100 15,634 Classified — — 1,293 — 3,501 6,646 100 11,540 Total 24,353 234,082 231,880 114,965 162,635 320,181 48,882 1,136,978 Current-period gross — — — — — — — — Non-owner occupied Pass 7,627 464,026 460,997 125,499 161,560 652,952 44,748 1,917,409 Special Mention — — 1,032 — — 2,507 — 3,539 Classified — — 1,960 — 143 16,466 — 18,569 Total 7,627 464,026 463,989 125,499 161,703 671,925 44,748 1,939,517 Current-period gross — — — — — — — — Total commercial loan types Pass 125,027 1,989,327 1,462,652 499,995 514,196 1,155,005 1,095,057 6,841,259 Special Mention — 11,717 1,713 6 324 7,493 12,140 33,393 Classified 457 2,770 4,222 1,939 5,120 31,071 14,554 60,133 Total $ 125,484 $ 2,003,814 $ 1,468,587 $ 501,940 $ 519,640 $ 1,193,569 $ 1,121,751 $ 6,934,785 Current-period gross $ — $ 46 $ — $ — $ — $ — $ — $ 46 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 396,643 $ 204,000 $ 67,231 $ 90,894 $ 39,780 $ 62,816 $ 762,717 $ 1,624,081 Special Mention 125 7 — 160 143 771 2,520 3,726 Classified 65 823 1,916 1,651 273 6,913 6,335 17,976 Total 396,833 204,830 69,147 92,705 40,196 70,500 771,572 1,645,783 Construction Pass 682,885 495,723 142,233 84,599 17,360 44,326 188,906 1,656,032 Special Mention — — 15 — — 707 — 722 Classified 80 309 — — — 345 — 734 Total 682,965 496,032 142,248 84,599 17,360 45,378 188,906 1,657,488 Residential real estate: Multi-family mortgage Pass 142,912 147,168 96,819 33,547 6,971 37,385 13,604 478,406 Special Mention — — — — — — — — Classified — — — — — 1,166 — 1,166 Total 142,912 147,168 96,819 33,547 6,971 38,551 13,604 479,572 Commercial real estate: Owner occupied Pass 237,862 223,883 110,748 148,405 66,101 246,414 57,220 1,090,633 Special Mention 101 683 — 168 2,225 1,258 5,000 9,435 Classified — 1,293 224 4,589 1,276 7,018 112 14,512 Total 237,963 225,859 110,972 153,162 69,602 254,690 62,332 1,114,580 Non-owner occupied Pass 467,360 440,319 131,497 159,205 210,752 473,607 60,908 1,943,648 Special Mention — — — — 82 2,459 — 2,541 Classified — 2,258 — 146 3,270 12,147 — 17,821 Total 467,360 442,577 131,497 159,351 214,104 488,213 60,908 1,964,010 Total commercial loan types Pass 1,927,662 1,511,093 548,528 516,650 340,964 864,548 1,083,355 6,792,800 Special Mention 226 690 15 328 2,450 5,195 7,520 16,424 Classified 145 4,683 2,140 6,386 4,819 27,589 6,447 52,209 Total $ 1,928,033 $ 1,516,466 $ 550,683 $ 523,364 $ 348,233 $ 897,332 $ 1,097,322 $ 6,861,433 Credit Quality - Consumer Type 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 the Company's consumer type loan portfolio as of March 31, 2023 and December 31, 2022 and the gross charge-offs for the three months ended March 31, 2023 by year of origination. 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. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period balances for gross charge-offs by year of origination are not included below. As of and for the three months ended March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 36,402 $ 550,052 $ 439,949 $ 157,470 $ 88,489 $ 269,548 $ — $ 1,541,910 Nonperforming — 1,945 4,671 4,834 1,115 8,028 — 20,593 Total 36,402 551,997 444,620 162,304 89,604 277,576 — 1,562,503 Current-period gross — — — — — 16 — 16 Residential line of credit Performing — — — — — — 496,309 496,309 Nonperforming — — — — — — 1,082 1,082 Total — — — — — — 497,391 497,391 Current-period gross — — — — — — — — Consumer and other Performing 24,159 108,985 53,452 39,098 27,758 105,751 4,198 363,401 Nonperforming — 233 1,536 1,481 966 3,700 — 7,916 Total 24,159 109,218 54,988 40,579 28,724 109,451 4,198 371,317 Current-period gross 171 339 38 81 9 65 2 705 Total consumer type loans Performing 60,561 659,037 493,401 196,568 116,247 375,299 500,507 2,401,620 Nonperforming — 2,178 6,207 6,315 2,081 11,728 1,082 29,591 Total $ 60,561 $ 661,215 $ 499,608 $ 202,883 $ 118,328 $ 387,027 $ 501,589 $ 2,431,211 Current-period gross $ 171 $ 339 $ 38 $ 81 $ 9 $ 81 $ 2 $ 721 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 568,210 $ 448,401 $ 160,715 $ 93,548 $ 68,113 $ 211,019 $ — $ 1,550,006 Nonperforming 1,227 5,163 5,472 1,778 2,044 7,431 — 23,115 Total 569,437 453,564 166,187 95,326 70,157 218,450 — 1,573,121 Residential line of credit Performing — — — — — — 495,129 495,129 Nonperforming — — — — — — 1,531 1,531 Total — — — — — — 496,660 496,660 Consumer and other Performing 118,637 56,779 41,008 29,139 26,982 82,318 4,175 359,038 Nonperforming 166 1,396 1,460 906 1,507 2,525 — 7,960 Total 118,803 58,175 42,468 30,045 28,489 84,843 4,175 366,998 Total consumer type loans Performing 686,847 505,180 201,723 122,687 95,095 293,337 499,304 2,404,173 Nonperforming 1,393 6,559 6,932 2,684 3,551 9,956 1,531 32,606 Total $ 688,240 $ 511,739 $ 208,655 $ 125,371 $ 98,646 $ 303,293 $ 500,835 $ 2,436,779 Nonaccrual 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 March 31, 2023 and December 31, 2022: March 31, 2023 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 574 $ 42 $ 2,413 $ 1,668,369 $ 1,671,398 Construction 2,708 — 382 1,694,423 1,697,513 Residential real estate: 1-to-4 family mortgage 13,348 11,505 9,088 1,528,562 1,562,503 Residential line of credit 678 158 924 495,631 497,391 Multi-family mortgage — — 39 489,340 489,379 Commercial real estate: Owner occupied 851 — 7,211 1,128,916 1,136,978 Non-owner occupied — — 5,802 1,933,715 1,939,517 Consumer and other 6,918 875 7,041 356,483 371,317 Total $ 25,077 $ 12,580 $ 32,900 $ 9,295,439 $ 9,365,996 December 31, 2022 30-89 days 90 days or Nonaccrual Loans current on payments and accruing interest Total Commercial and industrial $ 1,650 $ 136 $ 1,307 $ 1,642,690 $ 1,645,783 Construction 1,246 — 389 1,655,853 1,657,488 Residential real estate: 1-to-4 family mortgage 15,470 16,639 6,476 1,534,536 1,573,121 Residential line of credit 772 131 1,400 494,357 496,660 Multi-family mortgage — — 42 479,530 479,572 Commercial real estate: Owner occupied 1,948 — 5,410 1,107,222 1,114,580 Non-owner occupied 102 — 5,956 1,957,952 1,964,010 Consumer and other 10,108 1,509 6,451 348,930 366,998 Total $ 31,296 $ 18,415 $ 27,431 $ 9,221,070 $ 9,298,212 The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of March 31, 2023 and December 31, 2022 by class of financing receivable. March 31, 2023 Nonaccrual Nonaccrual Related Commercial and industrial $ 1,804 $ 609 $ 11 Construction — 382 7 Residential real estate: 1-to-4 family mortgage 1,955 7,133 143 Residential line of credit 842 82 1 Multi-family mortgage — 39 1 Commercial real estate: Owner occupied 7,008 203 12 Non-owner occupied 5,610 192 4 Consumer and other 110 6,931 354 Total $ 17,329 $ 15,571 $ 533 December 31, 2022 Nonaccrual Nonaccrual Related Commercial and industrial $ 790 $ 517 $ 10 Construction — 389 7 Residential real estate: 1-to-4 family mortgage 2,834 3,642 78 Residential line of credit 1,134 266 4 Multi-family mortgage 1 41 1 Commercial real estate: Owner occupied 5,200 210 1 Non-owner occupied 5,755 201 5 Consumer and other — 6,451 327 Total $ 15,714 $ 11,717 $ 433 The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Commercial and industrial $ 20 $ 54 Construction 6 19 Residential real estate: 1-to-4 family mortgage 79 52 Residential line of credit 24 40 Multi-family mortgage 1 — Commercial real estate: Owner occupied 58 25 Non-owner occupied 82 70 Consumer and other 173 15 Total $ 443 $ 275 Accrued interest receivable written off as an adjustment to interest income amounted to $181 and $184 for the three months ended March 31, 2023 and 2022, respectively. Loan Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company may make certain modifications of loans to borrowers experiencing financial difficulty. These modifications typically include an interest rate reduction, a term extension or a combination thereof. Upon the Company's determination that a modified loan has subsequently been deemed uncollectible, the portion of the loan deemed uncollectible is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. There were no modifications of loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023. Troubled debt restructurings The following disclosure is presented in accordance with GAAP in effect prior to the adoption of ASU 2022-02 . The Company has included this disclosure as of December 31, 2022 or for the three months ended March 31, 2022. Prior to the Company's adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Loans that were restructured in a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the historical TDR accounting until the loan is paid off, liquidated or subsequently modified. See Note 1, "Basis of presentation" for more information on the Company's adoption of ASU 2022-02. As of December 31, 2022, the Company had a recorded investment in TDRs of $13,854. 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, $7,321 were classified as nonaccrual loans as of December 31, 2022. The Company has calculated $253 in allowances for credit losses on TDRs as of December 31, 2022. As of December 31, 2022, unfunded loan commitments to extend additional funds on troubled debt restructurings were not meaningful. The following table presents the financial effect of TDRs recorded during the three months ended March 31, 2022: 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 80 80 — Consumer and other 1 22 22 — Total 2 $ 102 $ 102 $ — Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the three months ended March 31, 2022. 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 months ended March 31, 2022 that did not meet the definition of a TDR. The modification of these loans usually involves 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. March 31, 2023 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 2,597 $ 800 $ 3,397 $ — Residential real estate: 1-to-4 family mortgage 5,332 — 5,332 169 Residential line of credit 1,109 — 1,109 5 Commercial real estate: Owner occupied 7,651 — 7,651 4 Non-owner occupied 5,610 — 5,610 — Consumer and other 132 — 132 — Total $ 22,431 $ 800 $ 23,231 $ 178 December 31, 2022 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 2,596 $ — $ 2,596 $ — Residential real estate: 1-to-4 family mortgage 4,467 — 4,467 194 Residential line of credit 1,135 — 1,135 — Commercial real estate: Owner occupied 5,424 — 5,424 — Non-owner occupied 5,755 — 5,755 — Consumer and other 134 — 134 — Total $ 19,511 $ — $ 19,511 $ 194 |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2023 | |
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 the lower of the carrying amount of the underlying loan or the fair value of the real estate less costs to sell. The following table summarizes the other real estate owned for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 5,794 $ 9,777 Transfers from loans 235 563 Proceeds from sale of other real estate owned (2,031) (121) Gain (loss) on sale of other real estate owned 87 (104) Write-downs and partial liquidations — (394) Balance at end of period $ 4,085 $ 9,721 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases: As of March 31, 2023, the Company was the lessee in 60 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Leases with initial terms of less than one year and equipment leases are not included on the consolidated balance sheets in accordance with U.S. GAAP. 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. Information related to the Company's leases is presented below as of March 31, 2023 and December 31, 2022: March 31, December 31, Classification 2023 2022 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 57,054 $ 60,043 Finance leases Premises and equipment, net 1,339 1,367 Total right-of-use assets $ 58,393 $ 61,410 Lease liabilities: Operating leases Operating lease liabilities $ 67,345 $ 69,754 Finance leases Borrowings 1,397 1,420 Total lease liabilities $ 68,742 $ 71,174 Weighted average remaining lease term (in years) - 11.9 12.1 Weighted average remaining lease term (in years) - 12.1 12.4 Weighted average discount rate - operating 3.21 % 3.08 % 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 March 31, Classification 2023 2022 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,815 $ 1,710 Short-term lease cost Occupancy and equipment 121 111 Variable lease cost Occupancy and equipment 298 256 Gain on lease modifications and terminations Occupancy and equipment (72) (18) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 6 9 Amortization of right-of-use asset Occupancy and equipment 28 37 Sublease income Occupancy and equipment (281) (195) Total lease cost $ 1,915 $ 1,910 During the three months ended March 31, 2023 and 2022, the Company recorded $72 and $18 in gains on lease modifications and terminations on certain vacated locations that were consolidated as a result of previous business combinations, respectively. 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 March 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2024 $ 6,596 $ 89 March 31, 2025 7,956 120 March 31, 2026 7,885 121 March 31, 2027 7,715 123 March 31, 2028 7,326 125 Thereafter 45,839 977 Total undiscounted future minimum lease payments 83,317 1,555 Less: imputed interest (15,972) (158) Lease liability $ 67,345 $ 1,397 |
Leases | Leases: As of March 31, 2023, the Company was the lessee in 60 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Leases with initial terms of less than one year and equipment leases are not included on the consolidated balance sheets in accordance with U.S. GAAP. 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. Information related to the Company's leases is presented below as of March 31, 2023 and December 31, 2022: March 31, December 31, Classification 2023 2022 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 57,054 $ 60,043 Finance leases Premises and equipment, net 1,339 1,367 Total right-of-use assets $ 58,393 $ 61,410 Lease liabilities: Operating leases Operating lease liabilities $ 67,345 $ 69,754 Finance leases Borrowings 1,397 1,420 Total lease liabilities $ 68,742 $ 71,174 Weighted average remaining lease term (in years) - 11.9 12.1 Weighted average remaining lease term (in years) - 12.1 12.4 Weighted average discount rate - operating 3.21 % 3.08 % 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 March 31, Classification 2023 2022 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,815 $ 1,710 Short-term lease cost Occupancy and equipment 121 111 Variable lease cost Occupancy and equipment 298 256 Gain on lease modifications and terminations Occupancy and equipment (72) (18) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 6 9 Amortization of right-of-use asset Occupancy and equipment 28 37 Sublease income Occupancy and equipment (281) (195) Total lease cost $ 1,915 $ 1,910 During the three months ended March 31, 2023 and 2022, the Company recorded $72 and $18 in gains on lease modifications and terminations on certain vacated locations that were consolidated as a result of previous business combinations, respectively. 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 March 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2024 $ 6,596 $ 89 March 31, 2025 7,956 120 March 31, 2026 7,885 121 March 31, 2027 7,715 123 March 31, 2028 7,326 125 Thereafter 45,839 977 Total undiscounted future minimum lease payments 83,317 1,555 Less: imputed interest (15,972) (158) Lease liability $ 67,345 $ 1,397 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Carrying value at beginning of period $ 168,365 $ 115,512 Capitalization 1,788 9,812 Change in fair value: Due to pay-offs/pay-downs (2,520) (4,471) Due to change in valuation inputs or assumptions (2,754) 23,822 Carrying value at end of period $ 164,879 $ 144,675 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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Servicing income: Servicing income $ 7,768 $ 7,429 Change in fair value of mortgage servicing rights (5,274) 19,351 Change in fair value of derivative hedging instruments 1,867 (19,098) Servicing income 4,361 7,682 Servicing expenses 1,883 2,548 Net servicing income $ 2,478 $ 5,134 Data and key economic assumptions related to the Company’s mortgage servicing rights as of March 31, 2023 and December 31, 2022 are as follows: March 31, December 31, 2023 2022 Unpaid principal balance $ 11,028,420 $ 11,086,582 Weighted-average prepayment speed (CPR) 5.96 % 5.55 % Estimated impact on fair value of a 10% increase $ (5,017) $ (4,886) Estimated impact on fair value of a 20% increase $ (9,695) $ (9,447) Discount rate 8.97 % 9.10 % Estimated impact on fair value of a 100 bp increase $ (7,924) $ (8,087) Estimated impact on fair value of a 200 bp increase $ (15,163) $ (15,475) Weighted-average coupon interest rate 3.35 % 3.31 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 333 332 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 March 31, 2023 and December 31, 2022, mortgage escrow deposits totaled to $92,947 and $75,612, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes: The following table presents a reconciliation of income taxes for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Federal taxes calculated at statutory rate $ 9,676 21.0 % $ 9,355 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 251 0.6 % 951 2.1 % Expense (benefit) from equity based compensation 115 0.3 % (291) (0.7) % Municipal interest income, net of interest disallowance (456) (1.0) % (444) (1.0) % Bank-owned life insurance (127) (0.3) % (74) (0.2) % Section 162(m) limitation 127 0.2 % 122 0.3 % Other 111 0.2 % (306) (0.6) % Income tax expense, as reported $ 9,697 21.0 % $ 9,313 20.9 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies: Commitments to extend credit & letters of credit Some financial instruments, such as loan commitments, credit lines and letters of credit, 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. The same credit and underwriting policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Many commitments expire without being used and are only recorded in the consolidated financial statements when drawn upon. The Company's maximum off-balance sheet exposure to credit loss is represented by the contractual amount of these instruments. March 31, December 31, 2023 2022 Commitments to extend credit, excluding interest rate lock commitments $ 3,341,445 $ 3,563,982 Letters of credit 68,422 71,250 Balance at end of period $ 3,409,867 $ 3,635,232 As of March 31, 2023 and December 31, 2022, loan commitments included above with floating interest rates totaled $2.87 billion and $2.96 billion, respectively. The Company estimates expected credit losses on off-balance sheet loan commitments 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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 22,969 $ 14,380 Provision for credit losses on unfunded commitments (4,506) 1,882 Balance at end of period $ 18,463 $ 16,262 Loan repurchases or indemnifications 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 recorded valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $3,326 and $1,348 for the three months ended March 31, 2023 and 2022, 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 March 31, 2023 2022 Balance at beginning of period $ 1,621 $ 4,802 Provision for loan repurchases or indemnifications (250) (389) Losses on loans repurchased or indemnified (13) (96) Balance at end of period $ 1,358 $ 4,317 Legal Proceedings Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on the Company’s consolidated financial statements. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
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 interest rate-lock commitments to originate loans whereby the interest rate on the loan is determined prior to funding. 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 interest 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 also 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: March 31, 2023 Notional Amount Asset Liability Interest rate contracts $ 567,594 $ 36,068 $ 36,087 Forward commitments 268,000 — 691 Interest rate-lock commitments 157,213 2,640 — Futures contracts 495,500 103 — Total $ 1,488,307 $ 38,811 $ 36,778 December 31, 2022 Notional Amount Asset Liability Interest rate contracts $ 560,310 $ 45,775 $ 45,762 Forward commitments 207,000 306 — Interest rate-lock commitments 118,313 1,433 — Futures contracts 494,300 — 3,790 Total $ 1,379,923 $ 47,514 $ 49,552 Gains (losses) included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Three Months Ended March 31, 2023 2022 Included in mortgage banking income: Interest rate lock commitments $ 1,207 $ (5,446) Forward commitments (295) 37,903 Futures contracts 1,937 (16,535) Option contracts (664) 36 Total $ 2,185 $ 15,958 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: March 31, 2023 December 31, 2022 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 988 Other assets $ 1,255 Other Assets The Company's consolidated statements of income included a gain of $197 and a loss of $139 for the three months ended March 31, 2023 and 2022, 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 into earnings during either period presented. The following discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2023 2022 Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(70) and $273 $ (197) $ 774 Derivatives designated as fair value hedges The Company utilizes 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 March 31, 2023 and December 31, 2022, the fair value hedges were deemed effective. March 31, 2023 December 31, 2022 Remaining Maturity (In Years) Receive Fixed Rate Pay Floating Rate Notional Amount Estimated fair value Notional Amount Estimated fair value Derivatives included in other liabilities: Interest rate swap 0.92 1.46% SOFR $ 100,000 $ (2,952) $ 100,000 $ (3,830) Interest rate swap 1.39 1.50% SOFR 75,000 (3,274) 75,000 (3,693) Interest rate swap 1.39 1.50% SOFR 125,000 (5,457) 125,000 (6,154) Total 1.23 1.48% $ 300,000 $ (11,683) $ 300,000 $ (13,677) 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 March 31, 2023 2022 Designated fair value hedge: Interest (expense) income on deposits $ (1,508) $ 313 Interest (expense) income on borrowings (760) 162 Total $ (2,268) $ 475 The following amounts were recorded on the balance sheet related to cumulative adjustments of fair value hedges as of the dates presented: Carrying Amount of the Hedged Item Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item Line item on the balance sheet March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Borrowings $ 96,146 $ 95,171 (1) $ (2,952) $ (3,830) Money market and savings deposits 196,704 196,520 (2) (8,731) (9,847) (1) The carrying value also includes unamortized subordinated debt issuance costs of $902 and $999 as of March 31, 2023 and December 31, 2022, respectively. (2) The carrying value also includes an unaccreted purchase accounting fair value premium of $5,435 and $6,367 as of March 31, 2023 and December 31, 2022, respectively. 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: Gross amounts not offset in the consolidated balance sheets Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount March 31, 2023 Derivative financial assets $ 35,641 $ — $ 35,641 $ 12,771 $ — $ 22,870 Derivative financial liabilities $ 18,528 $ — $ 18,528 $ 12,771 $ 5,757 $ — December 31, 2022 Derivative financial assets $ 44,273 $ — $ 44,273 $ 14,229 $ — $ 30,044 Derivative financial liabilities $ 20,251 $ — $ 20,251 $ 14,229 $ 6,022 $ — 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 March 31, 2023 and December 31, 2022, the Company had minimum collateral posting thresholds with certain derivative counterparties and had collateral posted of $18,590 and $23,325, 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 | 3 Months Ended |
Mar. 31, 2023 | |
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. The fair value of commercial loans held for sale 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. The guaranteed GNMA optional repurchase loans are excluded from the fair value option. 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 March 31, 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,319,951 $ 1,319,951 $ — $ — $ 1,319,951 Investment securities 1,474,064 — 1,474,064 — 1,474,064 Net loans held for investment 9,227,187 — — 9,090,899 9,090,899 Loans held for sale, at fair value 61,987 — 52,477 9,510 61,987 Interest receivable 44,737 1,027 6,705 37,005 44,737 Mortgage servicing rights 164,879 — — 164,879 164,879 Derivatives 39,799 — 39,799 — 39,799 Financial liabilities: Deposits: Without stated maturities $ 9,686,045 $ 9,686,045 $ — $ — $ 9,686,045 With stated maturities 1,496,870 — 1,485,091 — 1,485,091 Securities sold under agreements to repurchase and federal funds purchased 38,130 38,130 — — 38,130 Federal Home Loan Bank advances 125,000 — 125,000 — 125,000 Subordinated debt, net 127,076 — — 120,584 120,584 Interest payable 11,834 3,731 7,704 399 11,834 Derivatives 48,461 — 48,461 — 48,461 Fair Value December 31, 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,027,052 $ 1,027,052 $ — $ — $ 1,027,052 Investment securities 1,474,176 — 1,474,176 — 1,474,176 Net loans held for investment 9,164,020 — — 9,048,943 9,048,943 Loans held for sale, at fair value 113,240 — 82,750 30,490 113,240 Interest receivable 45,684 126 6,961 38,597 45,684 Mortgage servicing rights 168,365 — — 168,365 168,365 Derivatives 48,769 — 48,769 — 48,769 Financial liabilities: Deposits: Without stated maturities $ 9,433,860 $ 9,433,860 $ — $ — $ 9,433,860 With stated maturities 1,421,974 — 1,422,544 — 1,422,544 Securities sold under agreements to repurchase and federal funds purchased 86,945 86,945 — — 86,945 Federal Home Loan Bank advances 175,000 — 175,000 — 175,000 Subordinated debt, net 126,101 — — 118,817 118,817 Interest payable 8,648 2,571 4,559 1,518 8,648 Derivatives 63,229 — 63,229 — 63,229 The balances and levels of the assets measured at fair value on a recurring basis at March 31, 2023 are presented in the following table: At March 31, 2023 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 40,928 $ — $ 40,928 Mortgage-backed securities - residential — 1,025,388 — 1,025,388 Mortgage-backed securities - commercial — 17,723 — 17,723 Municipal securities — 270,994 — 270,994 U.S. Treasury securities — 108,823 — 108,823 Corporate securities — 7,149 — 7,149 Equity securities, at fair value — 3,059 — 3,059 Total securities $ — $ 1,474,064 $ — $ 1,474,064 Loans held for sale, at fair value $ — $ 52,477 $ 9,510 $ 61,987 Mortgage servicing rights — — 164,879 164,879 Derivatives — 39,799 — 39,799 Financial Liabilities: Derivatives — 48,461 — 48,461 The balances and levels of the assets measured at fair value on a non-recurring basis at March 31, 2023 are presented in the following table: At March 31, 2023 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 224 $ 224 Collateral dependent net loans held for Residential real estate: 1-4 family mortgage $ — $ — $ 389 $ 389 Total collateral dependent loans $ — $ — $ 389 $ 389 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2022 are presented in the following table: At December 31, 2022 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 40,062 $ — $ 40,062 Mortgage-backed securities - residential — 1,034,193 — 1,034,193 Mortgage-backed securities - commercial — 17,644 — 17,644 Municipal securities — 264,420 — 264,420 U.S. Treasury securities — 107,680 — 107,680 Corporate securities — 7,187 — 7,187 Equity securities, at fair value — 2,990 — 2,990 Total securities $ — $ 1,474,176 $ — $ 1,474,176 Loans held for sale, at fair value $ — $ 82,750 $ 30,490 $ 113,240 Mortgage servicing rights — — 168,365 168,365 Derivatives — 48,769 — 48,769 Financial Liabilities: Derivatives — 63,229 — 63,229 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2022 are presented in the following table: At December 31, 2022 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,497 $ 2,497 Residential real estate: 1-4 family mortgage $ — $ — $ 366 $ 366 Commercial real estate: Non-owner occupied — — 2,494 2,494 Total collateral dependent loans $ — $ — $ 2,860 $ 2,860 The following tables present information as of March 31, 2023 and December 31, 2022 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: As of March 31, 2023 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent net loans $ 389 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 224 Appraised value of property less costs to sell Discount for costs to sell 0%-15% As of December 31, 2022 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 2,860 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 2,497 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 March 31, 2023 and December 31, 2022, total amortized cost of collateral dependent loans measured on a non-recurring basis amounted to $558 and $3,054, 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 appraisers 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: March 31, December 31, 2023 2022 Loans held for sale under a fair value option: Commercial loans held for sale $ 9,510 $ 30,490 Mortgage loans held for sale 52,477 82,750 Total loans held for sale, at fair value 61,987 113,240 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 20,528 26,211 Total loans held for sale $ 82,515 $ 139,451 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 $51 and $16,874 resulting from fair value changes of mortgage loans were recorded in income during the three months ended March 31, 2023 and 2022, 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 net change in fair value of these loans held for sale and derivatives resulted in net losses of $421 and $7,548 for the three months ended March 31, 2023 and 2022, respectively. 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. 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. Commercial loans held for sale The Company also has a portfolio of shared institutional healthcare loans that were acquired during a 2020 business combination. 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 set forth the changes in fair value associated with this portfolio for the three months ended March 31, 2023 and 2022. Three Months Ended March 31, 2023 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 34,357 $ (3,867) $ 30,490 Change in fair value: Pay-downs and pay-offs (21,890) — (21,890) Changes in valuation included in other noninterest income — 910 910 Carrying value at end of period $ 12,467 $ (2,957) $ 9,510 Three Months Ended March 31, 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 (946) — (946) Changes in valuation included in other noninterest income — (174) (174) Carrying value at end of period $ 85,816 $ (7,637) $ 78,179 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 March 31, 2023 and December 31, 2022: March 31, 2023 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 52,477 $ 51,298 $ 1,179 Commercial loans held for sale measured at fair value 232 236 (4) Nonaccrual commercial loans held for sale 9,278 12,231 (2,953) December 31, 2022 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 82,750 $ 81,520 $ 1,230 Commercial loans held for sale measured at fair value 21,201 22,126 (925) Nonaccrual commercial loans held for sale 9,289 12,231 (2,942) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
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 originates 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. During the second quarter of 2022, the Company exited the direct-to-consumer internet delivery channel, which was one of two delivery channels in the Mortgage segment. The repositioning of the Mortgage segment did not qualify to be reported as discontinued operations. The Company continues to originate and sell residential mortgage loans within its Mortgage segment through its traditional mortgage retail channel, retain mortgage servicing rights and continues to hold residential mortgage loans in the loan HFI portfolio. Interest rate lock commitment volume and sales volume included in the Mortgage segment are as follows for the periods indicated: Three Months Ended March 31, 2023 2022 Interest rate lock commitment volume by delivery channel: Direct-to-consumer $ — $ 568,092 Retail 375,042 741,015 Total $ 375,042 $ 1,309,107 Mortgage loan sales $ 332,307 $ 1,284,482 The following tables provide segment financial information for the periods indicated: Three Months Ended March 31, 2023 Banking (3) Mortgage Consolidated Net interest income $ 103,660 $ — $ 103,660 Provisions for credit losses (1) 491 — 491 Mortgage banking income (2) — 15,493 15,493 Change in fair value of mortgage servicing rights, net of hedging (2) — (3,407) (3,407) Other noninterest income 11,493 (230) 11,263 Depreciation and amortization 2,049 179 2,228 Amortization of intangibles 990 — 990 Other noninterest expense 65,311 11,911 77,222 Income (loss) before income taxes $ 46,312 $ (234) $ 46,078 Income tax expense 9,697 Net income applicable to FB Financial Corporation and noncontrolling interest 36,381 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 36,381 Total assets $ 12,530,039 $ 571,108 $ 13,101,147 Goodwill 242,561 — 242,561 (1) Includes $4,997 in provision for credit losses on loans and $(4,506) 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 March 31, 2022 Banking (3) Mortgage Consolidated Net interest income $ 88,184 $ (2) $ 88,182 Provisions for credit losses (1) (4,247) — (4,247) Mortgage banking income (2) — 29,278 29,278 Change in fair value of mortgage servicing rights, net of hedging (2) — 253 253 Other noninterest income 11,983 (122) 11,861 Depreciation and amortization 1,710 326 2,036 Amortization of intangibles 1,244 — 1,244 Other noninterest expense 56,630 29,362 85,992 Income (loss) before income taxes $ 44,830 $ (281) $ 44,549 Income tax expense 9,313 Net income applicable to FB Financial Corporation and noncontrolling interest 35,236 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 35,236 Total assets $ 11,890,847 $ 783,344 $ 12,674,191 Goodwill 242,561 — 242,561 (1) Includes $(6,129) in provision for credit losses on loans and $1,882 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 approach 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 Bank and Company opted out of including accumulated other comprehensive income in regulatory capital. As of March 31, 2023 and December 31, 2022, 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 in the first two years after adoption. Beginning on 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 of March 31, 2023 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,557,049 13.6 % $ 1,205,137 10.5 % N/A N/A FirstBank 1,524,500 13.3 % 1,204,213 10.5 % $ 1,146,869 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,331,158 11.6 % $ 975,587 8.5 % N/A N/A FirstBank 1,298,609 11.3 % 974,839 8.5 % $ 917,495 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,331,158 10.4 % $ 512,344 4.0 % N/A N/A FirstBank 1,298,609 10.2 % 511,666 4.0 % $ 639,583 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,301,158 11.3 % $ 803,424 7.0 % N/A N/A FirstBank 1,298,609 11.3 % 802,808 7.0 % $ 745,465 6.5 % As of December 31, 2022 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,528,344 13.1 % $ 1,225,161 10.5 % N/A N/A FirstBank 1,506,543 12.9 % 1,222,922 10.5 % $ 1,164,688 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,315,386 11.3 % $ 991,797 8.5 % N/A N/A FirstBank 1,293,585 11.1 % 989,985 8.5 % $ 931,750 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,315,386 10.5 % $ 499,648 4.0 % N/A N/A FirstBank 1,293,585 10.4 % 499,194 4.0 % $ 623,992 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,285,386 11.0 % $ 816,774 7.0 % N/A N/A FirstBank 1,293,585 11.1 % 815,281 7.0 % $ 757,047 6.5 % |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
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 changes in restricted stock units for the three months ended March 31, 2023. Restricted Stock Weighted Balance at beginning of period (unvested) 365,155 $ 39.02 Granted 144,578 37.17 Vested (134,601) 34.11 Forfeited (1,428) 43.62 Balance at end of period (unvested) 373,704 $ 39.05 The total fair value of restricted stock units vested and released was $4,591 and $3,397 for the three months ended March 31, 2023 and 2022, respectively. The compensation cost related to stock grants and vesting of restricted stock units was $1,706 and $1,856 for the three months ended March 31, 2023 and 2022, respectively. This included amounts paid related to director grants and compensation elected to be settled in stock amounting to $175 and $166 during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, there was $12,523 of total unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.9 years. Additionally, as of March 31, 2023, there were 1,571,098 shares available for issuance under the Company's stock compensation plans. As of March 31, 2023 and December 31, 2022, there were $205 and $292, 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 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 The following table summarizes information about the changes in PSUs as of and for the three months ended March 31, 2023. Performance Stock Weighted Balance at beginning of period (unvested) 161,667 $ 41.73 Granted 86,010 37.17 Performance adjustment (1) 44,319 37.17 Vested (90,583) 36.21 Forfeited or expired (1,153) 44.25 Balance at end of period (unvested) 200,260 $ 40.98 (1) PSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. PSU awards are settled with payouts ranging from 0% and 200% of the target award value based on the Company's performance relative to a predefined peer group over a fixed three performance attainment above or below target. The following table summarizes data related to the Company's outstanding PSUs as of March 31, 2023: Grant Year Grant Price Vest Year PSUs Outstanding 2021 (1) $ 43.20 2024 54,922 2022 (2) $ 44.44 2025 59,328 2023 (2) $ 37.17 2026 86,010 (1) Vesting factor will be either at 0%, 25%, 100%, or 200% of PSUs outstanding based on the Company's performance relative to a predefined peer group over a fixed three (2) Vesting factor will be interpolated between 0% and 200% of PSUs outstanding based on the Company's performance relative to a predefined peer group over a fixed three The Company recorded compensation cost of $579 and $726 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $14,182, and the weighted average remaining performance period over which the cost could be recognized was 2.50 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 shares and a participant may not purchase more than 725 shares during any offering period (and, in any event, no more than $25 worth of common stock in any calendar year). There were 8,214 and 15,152 shares of common stock issued under the ESPP with proceeds from employee payroll withholdings of $305 and $588 during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, there were 2,306,532 shares available for issuance under the ESPP. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 $ 82,559 New loans and advances 23,098 Repayments (2,365) Loans outstanding at March 31, 2023 $ 103,292 Unfunded commitments to certain executive officers, certain management and directors and their related interests totaled $34,089 and $31,564 at March 31, 2023 and December 31, 2022, respectively. (B) Deposits: The Bank held deposits from related parties tota ling $336,448 a nd $347,660 as of March 31, 2023 and December 31, 2022, respectively. (C) Leases: The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. Lease expense for these properties totaled $90 and $101 for the three months ended March 31, 2023 and 2022. (D) Aviation lease: 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 months ended March 31, 2023 and 2022, the Company recognized income amounting to $7 and $11, respectively, under this agreement. (E) Equity investment in preferred stock: During the year ended December 31, 2022, the Company invested in preferred stock of a privately held entity of which an executive officer of the Company is on the Board of directors of the investee. This investment is included in other assets on the consolidated balance sheets with a carrying amount of $10,000 as of both March 31, 2023 and December 31, 2022, and is being accounted for as an equity security without readily determinable market value. No gains or losses have been recognized to date associated with this investment. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of 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 common 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 adopted accounting standards and Newly issued not yet effective accounting standards | Recently adopted accounting standards: 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. The Company adopted the update effective January 1, 2023. The adoption of this standard did not have an impact on the consolidated financial statements or 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 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 prospectively adopted the amendment effective January 1, 2023 and updated its disclosures for the first quarter of 2023. Refer to Note 3 for further information. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Newly issued not yet effective accounting standards: In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” as part of the Post-Implementation Review process of Topic 842 around related party arrangements between entities under common control. Under previous guidance, a lessee is generally required to amortize leasehold improvements that it owns over the shorter of the useful life of those improvements or the lease term. However, due to the nature of leasehold improvements made under leases between entities under common control, ASU 2023-01 requires a lessee in a common-control arrangement to amortize such leasehold improvements that it owns over the improvements' useful life to the common control group, regardless of the lease term. The ASU becomes effective January 1, 2024 and is not expected to have a material impact on the Company's consolidated financial statements and related disclosures. Additionally, in March 2023, the FASB issued ASU 2023-02, "Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method". The amendments in this update permit reporting entities to elect to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. 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 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 issued 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 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 one-time 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. In December 2022, the FASB issued ASU 2022-06, "Reference rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" to extend the date to December 31, 2024 for companies to apply the relief in Topic 848. The Company's 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, the Company ceased utilization of LIBOR as an index in newly originated loans or loans that are refinanced. Additionally, the Company identified existing products that utilize LIBOR and are implementing contract modifications to facilitate the transition to alternative reference rates. ASU 2020-04 and ASU 2021-01 are not expected to have a material impact on the Company's consolidated financial statements. |
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 March 31, 2023, but prior to the issuance of these financial statements that would have a material impact on the Company’s 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 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. 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 Company performed qualitative evaluations within the Company's established qualitative framework, assessing the impact of the current economic outlook (including uncertainty due to inflation, recent bank failures, 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 months ended March 31, 2023 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. These forecasts included weighted projections that the economy may be nearing a recession, reflected through deterioration in asset quality projected over life of the loan portfolio. Loss rates on residential loans and HELOC were qualitatively adjusted downwards, addressing the relative strength of asset values in the Company's predominant markets. The Company calculates its allowance for credit losses using a lifetime loss rate methodology and disaggregates the loan portfolio into three pools. The following presents a summary of quantitative and qualitative factors considered as of March 31, 2023, which resulted in changes in the allowance for credit losses compared to December 31, 2022 as described below. Pool Source of repayment Quantitative and Qualitative factors considered Commercial and Industrial Repayment is largely dependent Quantitative: Prepayment speeds are modeled in the form of a prepayment benchmarking that directly impacts the ACL output for all C&I loans and lines of credit. Loss rates incorporate a peer scaling factor. Qualitative: An uncertain economic outlook including the effects of inflation and the interest rate environment are driving a qualitative increase in the ACL. Retail Repayment is primarily dependent on the personal cash flow of the borrower. Quantitative: Average FICO scores, remaining life of the portfolio, delinquency composition, prepayment speeds leveraging Equifax and Moody's data Qualitative: High modeled loss rates and the relatively strong housing market within the bank’s footprint are driving a qualitative decrease in the ACL. Commercial Real Estate Repayment is primarily dependent on lease income generated from the underlying collateral. Quantitative: Prepayment speeds leverage a reverse-compounding formula. Loss rates incorporate a peer scaling factor. Qualitative: Changes in asset quality are driving a minor qualitative increase in the ACL. 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. Effective January 1, 2023, the Company prospectively adopted the accounting guidance in ASU 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures", which eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, the Company no longer measures an allowance for credit losses for TDRs it reasonably expects will occur, and it evaluates all loan modifications according to the accounting guidance for loan refinancing and modifications to determine whether the modification should be accounted for as a new loan or a continuation of the existing loan. After adoption, the Company now derecognizes the existing loan and accounts for the modified loan as a new loan if the effective yield on the modified loan is at least equal to the effective yield for comparable loans with similar collection risks and the modifications to the original loan are more than minor. If a loan modification does not meet these conditions, it extends the existing loan’s amortized cost basis and accounts for the modified loan as a continuation of the existing loan. Prior to January 1, 2023, 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 used 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 was measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. As a result of the difference in methodology between periods, disclosures related to loan modifications made to borrowers experiencing financial difficulty and TDRs may not be comparative in nature. |
Loans (excluding purchased credit deteriorated loans) | Credit Quality - Commercial Type 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. The fair value of commercial loans held for sale 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. The guaranteed GNMA optional repurchase loans are excluded from the fair value option. 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 March 31, 2023 and December 31, 2022, total amortized cost of collateral dependent loans measured on a non-recurring basis amounted to $558 and $3,054, 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 appraisers 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 calculations for each of the periods presented: Three Months Ended March 31, 2023 2022 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 36,381 $ 35,236 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 36,381 $ 35,236 Weighted average basic shares outstanding 46,679,618 47,530,520 Basic earnings per common share $ 0.78 $ 0.74 Diluted earnings per common share: Earnings available to common shareholders $ 36,381 $ 35,236 Weighted average basic shares outstanding 46,679,618 47,530,520 Weighted average diluted shares contingently issuable (1) 85,536 193,382 Weighted average diluted shares outstanding 46,765,154 47,723,902 Diluted earnings per common share $ 0.78 $ 0.74 (1) Excludes 159,946 and 123,709 restricted stock units outstanding considered to be antidilutive for the three months ended March 31, 2023 and 2022, respectively. |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 loss at March 31, 2023 and December 31, 2022: March 31, 2023 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 $ 45,176 $ — $ (4,248) $ — $ 40,928 Mortgage-backed securities - residential 1,197,702 — (172,314) — 1,025,388 Mortgage-backed securities - commercial 18,979 — (1,256) — 17,723 Municipal securities 295,010 967 (24,983) — 270,994 U.S. Treasury securities 113,403 — (4,580) — 108,823 Corporate securities 8,000 — (851) — 7,149 Total $ 1,678,270 $ 967 $ (208,232) $ — $ 1,471,005 December 31, 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 $ 45,167 $ — $ (5,105) $ — $ 40,062 Mortgage-backed securities - residential 1,224,522 — (190,329) — 1,034,193 Mortgage-backed securities - commercial 19,209 — (1,565) — 17,644 Municipal securities 295,375 458 (31,413) — 264,420 U.S. Treasury securities 113,301 — (5,621) — 107,680 Corporate securities 8,000 — (813) — 7,187 Total $ 1,705,574 $ 458 $ (234,846) $ — $ 1,471,186 |
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. March 31, December 31, 2023 2022 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 34,965 $ 34,270 $ 4,277 $ 4,225 Due in one to five years 138,189 130,585 161,556 152,181 Due in five to ten years 58,876 56,982 61,290 57,859 Due in over ten years 229,559 206,057 234,720 205,084 461,589 427,894 461,843 419,349 Mortgage-backed securities - residential 1,197,702 1,025,388 1,224,522 1,034,193 Mortgage-backed securities - commercial 18,979 17,723 19,209 17,644 Total debt securities $ 1,678,270 $ 1,471,005 $ 1,705,574 $ 1,471,186 |
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 March 31, 2023 2022 Proceeds from sales $ — $ — Proceeds from maturities, prepayments and calls 26,827 57,443 Gross realized gains — 2 Gross realized losses — — |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2023 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 $ 4,014 $ (94) $ 36,913 $ (4,154) $ 40,927 $ (4,248) Mortgage-backed securities - residential 101,194 (4,425) 924,189 (167,889) 1,025,383 (172,314) Mortgage-backed securities - commercial 11,311 (740) 6,415 (516) 17,726 (1,256) Municipal securities 43,100 (1,872) 161,743 (23,111) 204,843 (24,983) U.S. Treasury securities 60,669 (1,276) 48,154 (3,304) 108,823 (4,580) Corporate securities 946 (55) 6,281 (796) 7,227 (851) Total $ 221,234 $ (8,462) $ 1,183,695 $ (199,770) $ 1,404,929 $ (208,232) December 31, 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 $ 23,791 $ (2,802) $ 16,271 $ (2,303) $ 40,062 $ (5,105) Mortgage-backed securities - residential 316,656 (32,470) 717,533 (157,859) 1,034,189 (190,329) Mortgage-backed securities - commercial 11,104 (968) 6,541 (597) 17,645 (1,565) Municipal securities 196,419 (26,811) 36,726 (4,602) 233,145 (31,413) U.S. Treasury securities 94,248 (4,122) 13,434 (1,499) 107,682 (5,621) Corporate securities 4,008 (492) 3,270 (321) 7,278 (813) Total $ 646,226 $ (67,665) $ 793,775 $ (167,181) $ 1,440,001 $ (234,846) |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding as of March 31, 2023 and December 31, 2022, by class of financing receivable are as follows: March 31, December 31, 2023 2022 Commercial and industrial $ 1,671,398 $ 1,645,783 Construction 1,697,513 1,657,488 Residential real estate: 1-to-4 family mortgage 1,562,503 1,573,121 Residential line of credit 497,391 496,660 Multi-family mortgage 489,379 479,572 Commercial real estate: Owner-occupied 1,136,978 1,114,580 Non-owner occupied 1,939,517 1,964,010 Consumer and other 371,317 366,998 Gross loans 9,365,996 9,298,212 Less: Allowance for credit losses (138,809) (134,192) Net loans $ 9,227,187 $ 9,164,020 |
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 months ended March 31, 2023 and 2022: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2023 Beginning balance - December 31, 2022 $ 11,106 $ 39,808 $ 26,141 $ 7,494 $ 6,490 $ 7,783 $ 21,916 $ 13,454 $ 134,192 Provision for credit losses (10) 1,217 1,073 1,540 129 103 (48) 993 4,997 Recoveries of loans previously charged-off 67 — 15 — — 66 — 239 387 Loans charged off (46) — (16) — — — — (705) (767) Ending balance - March 31, 2023 $ 11,117 $ 41,025 $ 27,213 $ 9,034 $ 6,619 $ 7,952 $ 21,868 $ 13,981 $ 138,809 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 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 (4,006) 3,206 1,908 641 (578) (4,187) (4,478) 1,365 (6,129) Recoveries of loans previously charged-off 958 — 12 1 — 10 — 217 1,198 Loans charged off (4) — — — — — — (575) (579) Ending balance - $ 12,699 $ 31,782 $ 21,024 $ 6,545 $ 6,398 $ 8,416 $ 21,290 $ 11,895 $ 120,049 |
Schedule of Credit Quality of Loan Portfolio by Year of Origination | The following tables present the credit quality of the Company's commercial type loan portfolio as of March 31, 2023 and December 31, 2022 and the gross charge-offs for the three months ended March 31, 2023 by year of origination. 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. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period activity of gross charge-offs by year of origination are not included in the below tables. As of and for the three months ended March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 40,396 $ 383,606 $ 193,605 $ 53,715 $ 83,158 $ 92,586 $ 785,130 $ 1,632,196 Special Mention — 2,625 4 — 159 891 7,040 10,719 Classified 457 2,692 647 1,939 1,476 6,818 14,454 28,483 Total 40,853 388,923 194,256 55,654 84,793 100,295 806,624 1,671,398 Current-period gross — 46 — — — — — 46 Construction Pass 41,824 769,011 430,782 110,280 77,147 56,628 207,940 1,693,612 Special Mention — 2,797 — 6 — 698 — 3,501 Classified — 78 322 — — — — 400 Total 41,824 771,886 431,104 110,286 77,147 57,326 207,940 1,697,513 Current-period gross — — — — — — — — Residential real estate: Multi-family mortgage Pass 10,827 144,897 147,358 95,536 33,362 42,701 13,557 488,238 Special Mention — — — — — — — — Classified — — — — — 1,141 — 1,141 Total 10,827 144,897 147,358 95,536 33,362 43,842 13,557 489,379 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 24,353 227,787 229,910 114,965 158,969 310,138 43,682 1,109,804 Special Mention — 6,295 677 — 165 3,397 5,100 15,634 Classified — — 1,293 — 3,501 6,646 100 11,540 Total 24,353 234,082 231,880 114,965 162,635 320,181 48,882 1,136,978 Current-period gross — — — — — — — — Non-owner occupied Pass 7,627 464,026 460,997 125,499 161,560 652,952 44,748 1,917,409 Special Mention — — 1,032 — — 2,507 — 3,539 Classified — — 1,960 — 143 16,466 — 18,569 Total 7,627 464,026 463,989 125,499 161,703 671,925 44,748 1,939,517 Current-period gross — — — — — — — — Total commercial loan types Pass 125,027 1,989,327 1,462,652 499,995 514,196 1,155,005 1,095,057 6,841,259 Special Mention — 11,717 1,713 6 324 7,493 12,140 33,393 Classified 457 2,770 4,222 1,939 5,120 31,071 14,554 60,133 Total $ 125,484 $ 2,003,814 $ 1,468,587 $ 501,940 $ 519,640 $ 1,193,569 $ 1,121,751 $ 6,934,785 Current-period gross $ — $ 46 $ — $ — $ — $ — $ — $ 46 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 396,643 $ 204,000 $ 67,231 $ 90,894 $ 39,780 $ 62,816 $ 762,717 $ 1,624,081 Special Mention 125 7 — 160 143 771 2,520 3,726 Classified 65 823 1,916 1,651 273 6,913 6,335 17,976 Total 396,833 204,830 69,147 92,705 40,196 70,500 771,572 1,645,783 Construction Pass 682,885 495,723 142,233 84,599 17,360 44,326 188,906 1,656,032 Special Mention — — 15 — — 707 — 722 Classified 80 309 — — — 345 — 734 Total 682,965 496,032 142,248 84,599 17,360 45,378 188,906 1,657,488 Residential real estate: Multi-family mortgage Pass 142,912 147,168 96,819 33,547 6,971 37,385 13,604 478,406 Special Mention — — — — — — — — Classified — — — — — 1,166 — 1,166 Total 142,912 147,168 96,819 33,547 6,971 38,551 13,604 479,572 Commercial real estate: Owner occupied Pass 237,862 223,883 110,748 148,405 66,101 246,414 57,220 1,090,633 Special Mention 101 683 — 168 2,225 1,258 5,000 9,435 Classified — 1,293 224 4,589 1,276 7,018 112 14,512 Total 237,963 225,859 110,972 153,162 69,602 254,690 62,332 1,114,580 Non-owner occupied Pass 467,360 440,319 131,497 159,205 210,752 473,607 60,908 1,943,648 Special Mention — — — — 82 2,459 — 2,541 Classified — 2,258 — 146 3,270 12,147 — 17,821 Total 467,360 442,577 131,497 159,351 214,104 488,213 60,908 1,964,010 Total commercial loan types Pass 1,927,662 1,511,093 548,528 516,650 340,964 864,548 1,083,355 6,792,800 Special Mention 226 690 15 328 2,450 5,195 7,520 16,424 Classified 145 4,683 2,140 6,386 4,819 27,589 6,447 52,209 Total $ 1,928,033 $ 1,516,466 $ 550,683 $ 523,364 $ 348,233 $ 897,332 $ 1,097,322 $ 6,861,433 The following tables present the credit quality by classification (performing or nonperforming) of the Company's consumer type loan portfolio as of March 31, 2023 and December 31, 2022 and the gross charge-offs for the three months ended March 31, 2023 by year of origination. 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. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period balances for gross charge-offs by year of origination are not included below. As of and for the three months ended March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 36,402 $ 550,052 $ 439,949 $ 157,470 $ 88,489 $ 269,548 $ — $ 1,541,910 Nonperforming — 1,945 4,671 4,834 1,115 8,028 — 20,593 Total 36,402 551,997 444,620 162,304 89,604 277,576 — 1,562,503 Current-period gross — — — — — 16 — 16 Residential line of credit Performing — — — — — — 496,309 496,309 Nonperforming — — — — — — 1,082 1,082 Total — — — — — — 497,391 497,391 Current-period gross — — — — — — — — Consumer and other Performing 24,159 108,985 53,452 39,098 27,758 105,751 4,198 363,401 Nonperforming — 233 1,536 1,481 966 3,700 — 7,916 Total 24,159 109,218 54,988 40,579 28,724 109,451 4,198 371,317 Current-period gross 171 339 38 81 9 65 2 705 Total consumer type loans Performing 60,561 659,037 493,401 196,568 116,247 375,299 500,507 2,401,620 Nonperforming — 2,178 6,207 6,315 2,081 11,728 1,082 29,591 Total $ 60,561 $ 661,215 $ 499,608 $ 202,883 $ 118,328 $ 387,027 $ 501,589 $ 2,431,211 Current-period gross $ 171 $ 339 $ 38 $ 81 $ 9 $ 81 $ 2 $ 721 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 568,210 $ 448,401 $ 160,715 $ 93,548 $ 68,113 $ 211,019 $ — $ 1,550,006 Nonperforming 1,227 5,163 5,472 1,778 2,044 7,431 — 23,115 Total 569,437 453,564 166,187 95,326 70,157 218,450 — 1,573,121 Residential line of credit Performing — — — — — — 495,129 495,129 Nonperforming — — — — — — 1,531 1,531 Total — — — — — — 496,660 496,660 Consumer and other Performing 118,637 56,779 41,008 29,139 26,982 82,318 4,175 359,038 Nonperforming 166 1,396 1,460 906 1,507 2,525 — 7,960 Total 118,803 58,175 42,468 30,045 28,489 84,843 4,175 366,998 Total consumer type loans Performing 686,847 505,180 201,723 122,687 95,095 293,337 499,304 2,404,173 Nonperforming 1,393 6,559 6,932 2,684 3,551 9,956 1,531 32,606 Total $ 688,240 $ 511,739 $ 208,655 $ 125,371 $ 98,646 $ 303,293 $ 500,835 $ 2,436,779 |
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 March 31, 2023 and December 31, 2022: March 31, 2023 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 574 $ 42 $ 2,413 $ 1,668,369 $ 1,671,398 Construction 2,708 — 382 1,694,423 1,697,513 Residential real estate: 1-to-4 family mortgage 13,348 11,505 9,088 1,528,562 1,562,503 Residential line of credit 678 158 924 495,631 497,391 Multi-family mortgage — — 39 489,340 489,379 Commercial real estate: Owner occupied 851 — 7,211 1,128,916 1,136,978 Non-owner occupied — — 5,802 1,933,715 1,939,517 Consumer and other 6,918 875 7,041 356,483 371,317 Total $ 25,077 $ 12,580 $ 32,900 $ 9,295,439 $ 9,365,996 December 31, 2022 30-89 days 90 days or Nonaccrual Loans current on payments and accruing interest Total Commercial and industrial $ 1,650 $ 136 $ 1,307 $ 1,642,690 $ 1,645,783 Construction 1,246 — 389 1,655,853 1,657,488 Residential real estate: 1-to-4 family mortgage 15,470 16,639 6,476 1,534,536 1,573,121 Residential line of credit 772 131 1,400 494,357 496,660 Multi-family mortgage — — 42 479,530 479,572 Commercial real estate: Owner occupied 1,948 — 5,410 1,107,222 1,114,580 Non-owner occupied 102 — 5,956 1,957,952 1,964,010 Consumer and other 10,108 1,509 6,451 348,930 366,998 Total $ 31,296 $ 18,415 $ 27,431 $ 9,221,070 $ 9,298,212 |
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 March 31, 2023 and December 31, 2022 by class of financing receivable. March 31, 2023 Nonaccrual Nonaccrual Related Commercial and industrial $ 1,804 $ 609 $ 11 Construction — 382 7 Residential real estate: 1-to-4 family mortgage 1,955 7,133 143 Residential line of credit 842 82 1 Multi-family mortgage — 39 1 Commercial real estate: Owner occupied 7,008 203 12 Non-owner occupied 5,610 192 4 Consumer and other 110 6,931 354 Total $ 17,329 $ 15,571 $ 533 December 31, 2022 Nonaccrual Nonaccrual Related Commercial and industrial $ 790 $ 517 $ 10 Construction — 389 7 Residential real estate: 1-to-4 family mortgage 2,834 3,642 78 Residential line of credit 1,134 266 4 Multi-family mortgage 1 41 1 Commercial real estate: Owner occupied 5,200 210 1 Non-owner occupied 5,755 201 5 Consumer and other — 6,451 327 Total $ 15,714 $ 11,717 $ 433 The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Commercial and industrial $ 20 $ 54 Construction 6 19 Residential real estate: 1-to-4 family mortgage 79 52 Residential line of credit 24 40 Multi-family mortgage 1 — Commercial real estate: Owner occupied 58 25 Non-owner occupied 82 70 Consumer and other 173 15 Total $ 443 $ 275 |
Schedule of Financial Effect of TDRs | The following table presents the financial effect of TDRs recorded during the three months ended March 31, 2022: 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 80 80 — Consumer and other 1 22 22 — Total 2 $ 102 $ 102 $ — |
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. March 31, 2023 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 2,597 $ 800 $ 3,397 $ — Residential real estate: 1-to-4 family mortgage 5,332 — 5,332 169 Residential line of credit 1,109 — 1,109 5 Commercial real estate: Owner occupied 7,651 — 7,651 4 Non-owner occupied 5,610 — 5,610 — Consumer and other 132 — 132 — Total $ 22,431 $ 800 $ 23,231 $ 178 December 31, 2022 Type of Collateral Real Estate Financial Assets and Equipment Total Individually assessed allowance for credit loss Commercial and industrial $ 2,596 $ — $ 2,596 $ — Residential real estate: 1-to-4 family mortgage 4,467 — 4,467 194 Residential line of credit 1,135 — 1,135 — Commercial real estate: Owner occupied 5,424 — 5,424 — Non-owner occupied 5,755 — 5,755 — Consumer and other 134 — 134 — Total $ 19,511 $ — $ 19,511 $ 194 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Other Real Estate Owned | The following table summarizes the other real estate owned for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 5,794 $ 9,777 Transfers from loans 235 563 Proceeds from sale of other real estate owned (2,031) (121) Gain (loss) on sale of other real estate owned 87 (104) Write-downs and partial liquidations — (394) Balance at end of period $ 4,085 $ 9,721 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, December 31, Classification 2023 2022 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 57,054 $ 60,043 Finance leases Premises and equipment, net 1,339 1,367 Total right-of-use assets $ 58,393 $ 61,410 Lease liabilities: Operating leases Operating lease liabilities $ 67,345 $ 69,754 Finance leases Borrowings 1,397 1,420 Total lease liabilities $ 68,742 $ 71,174 Weighted average remaining lease term (in years) - 11.9 12.1 Weighted average remaining lease term (in years) - 12.1 12.4 Weighted average discount rate - operating 3.21 % 3.08 % 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 March 31, Classification 2023 2022 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,815 $ 1,710 Short-term lease cost Occupancy and equipment 121 111 Variable lease cost Occupancy and equipment 298 256 Gain on lease modifications and terminations Occupancy and equipment (72) (18) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 6 9 Amortization of right-of-use asset Occupancy and equipment 28 37 Sublease income Occupancy and equipment (281) (195) Total lease cost $ 1,915 $ 1,910 |
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 March 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2024 $ 6,596 $ 89 March 31, 2025 7,956 120 March 31, 2026 7,885 121 March 31, 2027 7,715 123 March 31, 2028 7,326 125 Thereafter 45,839 977 Total undiscounted future minimum lease payments 83,317 1,555 Less: imputed interest (15,972) (158) Lease liability $ 67,345 $ 1,397 |
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 March 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2024 $ 6,596 $ 89 March 31, 2025 7,956 120 March 31, 2026 7,885 121 March 31, 2027 7,715 123 March 31, 2028 7,326 125 Thereafter 45,839 977 Total undiscounted future minimum lease payments 83,317 1,555 Less: imputed interest (15,972) (158) Lease liability $ 67,345 $ 1,397 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Carrying value at beginning of period $ 168,365 $ 115,512 Capitalization 1,788 9,812 Change in fair value: Due to pay-offs/pay-downs (2,520) (4,471) Due to change in valuation inputs or assumptions (2,754) 23,822 Carrying value at end of period $ 164,879 $ 144,675 |
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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Servicing income: Servicing income $ 7,768 $ 7,429 Change in fair value of mortgage servicing rights (5,274) 19,351 Change in fair value of derivative hedging instruments 1,867 (19,098) Servicing income 4,361 7,682 Servicing expenses 1,883 2,548 Net servicing income $ 2,478 $ 5,134 |
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 March 31, 2023 and December 31, 2022 are as follows: March 31, December 31, 2023 2022 Unpaid principal balance $ 11,028,420 $ 11,086,582 Weighted-average prepayment speed (CPR) 5.96 % 5.55 % Estimated impact on fair value of a 10% increase $ (5,017) $ (4,886) Estimated impact on fair value of a 20% increase $ (9,695) $ (9,447) Discount rate 8.97 % 9.10 % Estimated impact on fair value of a 100 bp increase $ (7,924) $ (8,087) Estimated impact on fair value of a 200 bp increase $ (15,163) $ (15,475) Weighted-average coupon interest rate 3.35 % 3.31 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 333 332 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
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 income taxes for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Federal taxes calculated at statutory rate $ 9,676 21.0 % $ 9,355 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 251 0.6 % 951 2.1 % Expense (benefit) from equity based compensation 115 0.3 % (291) (0.7) % Municipal interest income, net of interest disallowance (456) (1.0) % (444) (1.0) % Bank-owned life insurance (127) (0.3) % (74) (0.2) % Section 162(m) limitation 127 0.2 % 122 0.3 % Other 111 0.2 % (306) (0.6) % Income tax expense, as reported $ 9,697 21.0 % $ 9,313 20.9 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | March 31, December 31, 2023 2022 Commitments to extend credit, excluding interest rate lock commitments $ 3,341,445 $ 3,563,982 Letters of credit 68,422 71,250 Balance at end of period $ 3,409,867 $ 3,635,232 |
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 months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 22,969 $ 14,380 Provision for credit losses on unfunded commitments (4,506) 1,882 Balance at end of period $ 18,463 $ 16,262 |
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 March 31, 2023 2022 Balance at beginning of period $ 1,621 $ 4,802 Provision for loan repurchases or indemnifications (250) (389) Losses on loans repurchased or indemnified (13) (96) Balance at end of period $ 1,358 $ 4,317 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 Notional Amount Asset Liability Interest rate contracts $ 567,594 $ 36,068 $ 36,087 Forward commitments 268,000 — 691 Interest rate-lock commitments 157,213 2,640 — Futures contracts 495,500 103 — Total $ 1,488,307 $ 38,811 $ 36,778 December 31, 2022 Notional Amount Asset Liability Interest rate contracts $ 560,310 $ 45,775 $ 45,762 Forward commitments 207,000 306 — Interest rate-lock commitments 118,313 1,433 — Futures contracts 494,300 — 3,790 Total $ 1,379,923 $ 47,514 $ 49,552 The following presents a summary of the Company's designated cash flow hedges as of the dates presented: March 31, 2023 December 31, 2022 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 988 Other assets $ 1,255 Other Assets March 31, 2023 December 31, 2022 Remaining Maturity (In Years) Receive Fixed Rate Pay Floating Rate Notional Amount Estimated fair value Notional Amount Estimated fair value Derivatives included in other liabilities: Interest rate swap 0.92 1.46% SOFR $ 100,000 $ (2,952) $ 100,000 $ (3,830) Interest rate swap 1.39 1.50% SOFR 75,000 (3,274) 75,000 (3,693) Interest rate swap 1.39 1.50% SOFR 125,000 (5,457) 125,000 (6,154) Total 1.23 1.48% $ 300,000 $ (11,683) $ 300,000 $ (13,677) |
Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments | Gains (losses) included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Three Months Ended March 31, 2023 2022 Included in mortgage banking income: Interest rate lock commitments $ 1,207 $ (5,446) Forward commitments (295) 37,903 Futures contracts 1,937 (16,535) Option contracts (664) 36 Total $ 2,185 $ 15,958 The following discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2023 2022 Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(70) and $273 $ (197) $ 774 |
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 March 31, 2023 2022 Designated fair value hedge: Interest (expense) income on deposits $ (1,508) $ 313 Interest (expense) income on borrowings (760) 162 Total $ (2,268) $ 475 |
Schedule of Derivative Liabilities at Fair Value | The following amounts were recorded on the balance sheet related to cumulative adjustments of fair value hedges as of the dates presented: Carrying Amount of the Hedged Item Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item Line item on the balance sheet March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Borrowings $ 96,146 $ 95,171 (1) $ (2,952) $ (3,830) Money market and savings deposits 196,704 196,520 (2) (8,731) (9,847) (1) The carrying value also includes unamortized subordinated debt issuance costs of $902 and $999 as of March 31, 2023 and December 31, 2022, respectively. (2) The carrying value also includes an unaccreted purchase accounting fair value premium of $5,435 and $6,367 as of March 31, 2023 and December 31, 2022, respectively. |
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: Gross amounts not offset in the consolidated balance sheets Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount March 31, 2023 Derivative financial assets $ 35,641 $ — $ 35,641 $ 12,771 $ — $ 22,870 Derivative financial liabilities $ 18,528 $ — $ 18,528 $ 12,771 $ 5,757 $ — December 31, 2022 Derivative financial assets $ 44,273 $ — $ 44,273 $ 14,229 $ — $ 30,044 Derivative financial liabilities $ 20,251 $ — $ 20,251 $ 14,229 $ 6,022 $ — |
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: Gross amounts not offset in the consolidated balance sheets Gross amounts recognized Gross amounts offset in the consolidated balance sheets Net amounts presented in the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount March 31, 2023 Derivative financial assets $ 35,641 $ — $ 35,641 $ 12,771 $ — $ 22,870 Derivative financial liabilities $ 18,528 $ — $ 18,528 $ 12,771 $ 5,757 $ — December 31, 2022 Derivative financial assets $ 44,273 $ — $ 44,273 $ 14,229 $ — $ 30,044 Derivative financial liabilities $ 20,251 $ — $ 20,251 $ 14,229 $ 6,022 $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,319,951 $ 1,319,951 $ — $ — $ 1,319,951 Investment securities 1,474,064 — 1,474,064 — 1,474,064 Net loans held for investment 9,227,187 — — 9,090,899 9,090,899 Loans held for sale, at fair value 61,987 — 52,477 9,510 61,987 Interest receivable 44,737 1,027 6,705 37,005 44,737 Mortgage servicing rights 164,879 — — 164,879 164,879 Derivatives 39,799 — 39,799 — 39,799 Financial liabilities: Deposits: Without stated maturities $ 9,686,045 $ 9,686,045 $ — $ — $ 9,686,045 With stated maturities 1,496,870 — 1,485,091 — 1,485,091 Securities sold under agreements to repurchase and federal funds purchased 38,130 38,130 — — 38,130 Federal Home Loan Bank advances 125,000 — 125,000 — 125,000 Subordinated debt, net 127,076 — — 120,584 120,584 Interest payable 11,834 3,731 7,704 399 11,834 Derivatives 48,461 — 48,461 — 48,461 Fair Value December 31, 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,027,052 $ 1,027,052 $ — $ — $ 1,027,052 Investment securities 1,474,176 — 1,474,176 — 1,474,176 Net loans held for investment 9,164,020 — — 9,048,943 9,048,943 Loans held for sale, at fair value 113,240 — 82,750 30,490 113,240 Interest receivable 45,684 126 6,961 38,597 45,684 Mortgage servicing rights 168,365 — — 168,365 168,365 Derivatives 48,769 — 48,769 — 48,769 Financial liabilities: Deposits: Without stated maturities $ 9,433,860 $ 9,433,860 $ — $ — $ 9,433,860 With stated maturities 1,421,974 — 1,422,544 — 1,422,544 Securities sold under agreements to repurchase and federal funds purchased 86,945 86,945 — — 86,945 Federal Home Loan Bank advances 175,000 — 175,000 — 175,000 Subordinated debt, net 126,101 — — 118,817 118,817 Interest payable 8,648 2,571 4,559 1,518 8,648 Derivatives 63,229 — 63,229 — 63,229 |
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 March 31, 2023 are presented in the following table: At March 31, 2023 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 40,928 $ — $ 40,928 Mortgage-backed securities - residential — 1,025,388 — 1,025,388 Mortgage-backed securities - commercial — 17,723 — 17,723 Municipal securities — 270,994 — 270,994 U.S. Treasury securities — 108,823 — 108,823 Corporate securities — 7,149 — 7,149 Equity securities, at fair value — 3,059 — 3,059 Total securities $ — $ 1,474,064 $ — $ 1,474,064 Loans held for sale, at fair value $ — $ 52,477 $ 9,510 $ 61,987 Mortgage servicing rights — — 164,879 164,879 Derivatives — 39,799 — 39,799 Financial Liabilities: Derivatives — 48,461 — 48,461 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2022 are presented in the following table: At December 31, 2022 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 40,062 $ — $ 40,062 Mortgage-backed securities - residential — 1,034,193 — 1,034,193 Mortgage-backed securities - commercial — 17,644 — 17,644 Municipal securities — 264,420 — 264,420 U.S. Treasury securities — 107,680 — 107,680 Corporate securities — 7,187 — 7,187 Equity securities, at fair value — 2,990 — 2,990 Total securities $ — $ 1,474,176 $ — $ 1,474,176 Loans held for sale, at fair value $ — $ 82,750 $ 30,490 $ 113,240 Mortgage servicing rights — — 168,365 168,365 Derivatives — 48,769 — 48,769 Financial Liabilities: Derivatives — 63,229 — 63,229 |
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 March 31, 2023 are presented in the following table: At March 31, 2023 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 224 $ 224 Collateral dependent net loans held for Residential real estate: 1-4 family mortgage $ — $ — $ 389 $ 389 Total collateral dependent loans $ — $ — $ 389 $ 389 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2022 are presented in the following table: At December 31, 2022 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,497 $ 2,497 Residential real estate: 1-4 family mortgage $ — $ — $ 366 $ 366 Commercial real estate: Non-owner occupied — — 2,494 2,494 Total collateral dependent loans $ — $ — $ 2,860 $ 2,860 |
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 March 31, 2023 and December 31, 2022 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: As of March 31, 2023 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent net loans $ 389 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 224 Appraised value of property less costs to sell Discount for costs to sell 0%-15% As of December 31, 2022 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 2,860 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 2,497 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: March 31, December 31, 2023 2022 Loans held for sale under a fair value option: Commercial loans held for sale $ 9,510 $ 30,490 Mortgage loans held for sale 52,477 82,750 Total loans held for sale, at fair value 61,987 113,240 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 20,528 26,211 Total loans held for sale $ 82,515 $ 139,451 |
Schedule of Changes in Associated with Commercial Loans Held For Sale | The following tables set forth the changes in fair value associated with this portfolio for the three months ended March 31, 2023 and 2022. Three Months Ended March 31, 2023 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 34,357 $ (3,867) $ 30,490 Change in fair value: Pay-downs and pay-offs (21,890) — (21,890) Changes in valuation included in other noninterest income — 910 910 Carrying value at end of period $ 12,467 $ (2,957) $ 9,510 Three Months Ended March 31, 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 (946) — (946) Changes in valuation included in other noninterest income — (174) (174) Carrying value at end of period $ 85,816 $ (7,637) $ 78,179 |
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 March 31, 2023 and December 31, 2022: March 31, 2023 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 52,477 $ 51,298 $ 1,179 Commercial loans held for sale measured at fair value 232 236 (4) Nonaccrual commercial loans held for sale 9,278 12,231 (2,953) December 31, 2022 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 82,750 $ 81,520 $ 1,230 Commercial loans held for sale measured at fair value 21,201 22,126 (925) Nonaccrual commercial loans held for sale 9,289 12,231 (2,942) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Direct-to-Consumer Channel Volume | nterest rate lock commitment volume and sales volume included in the Mortgage segment are as follows for the periods indicated: Three Months Ended March 31, 2023 2022 Interest rate lock commitment volume by delivery channel: Direct-to-consumer $ — $ 568,092 Retail 375,042 741,015 Total $ 375,042 $ 1,309,107 Mortgage loan sales $ 332,307 $ 1,284,482 |
Schedule of Segment Financial Information | he following tables provide segment financial information for the periods indicated: Three Months Ended March 31, 2023 Banking (3) Mortgage Consolidated Net interest income $ 103,660 $ — $ 103,660 Provisions for credit losses (1) 491 — 491 Mortgage banking income (2) — 15,493 15,493 Change in fair value of mortgage servicing rights, net of hedging (2) — (3,407) (3,407) Other noninterest income 11,493 (230) 11,263 Depreciation and amortization 2,049 179 2,228 Amortization of intangibles 990 — 990 Other noninterest expense 65,311 11,911 77,222 Income (loss) before income taxes $ 46,312 $ (234) $ 46,078 Income tax expense 9,697 Net income applicable to FB Financial Corporation and noncontrolling interest 36,381 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 36,381 Total assets $ 12,530,039 $ 571,108 $ 13,101,147 Goodwill 242,561 — 242,561 (1) Includes $4,997 in provision for credit losses on loans and $(4,506) 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 March 31, 2022 Banking (3) Mortgage Consolidated Net interest income $ 88,184 $ (2) $ 88,182 Provisions for credit losses (1) (4,247) — (4,247) Mortgage banking income (2) — 29,278 29,278 Change in fair value of mortgage servicing rights, net of hedging (2) — 253 253 Other noninterest income 11,983 (122) 11,861 Depreciation and amortization 1,710 326 2,036 Amortization of intangibles 1,244 — 1,244 Other noninterest expense 56,630 29,362 85,992 Income (loss) before income taxes $ 44,830 $ (281) $ 44,549 Income tax expense 9,313 Net income applicable to FB Financial Corporation and noncontrolling interest 35,236 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 35,236 Total assets $ 11,890,847 $ 783,344 $ 12,674,191 Goodwill 242,561 — 242,561 (1) Includes $(6,129) in provision for credit losses on loans and $1,882 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) | 3 Months Ended |
Mar. 31, 2023 | |
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 of March 31, 2023 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,557,049 13.6 % $ 1,205,137 10.5 % N/A N/A FirstBank 1,524,500 13.3 % 1,204,213 10.5 % $ 1,146,869 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,331,158 11.6 % $ 975,587 8.5 % N/A N/A FirstBank 1,298,609 11.3 % 974,839 8.5 % $ 917,495 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,331,158 10.4 % $ 512,344 4.0 % N/A N/A FirstBank 1,298,609 10.2 % 511,666 4.0 % $ 639,583 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,301,158 11.3 % $ 803,424 7.0 % N/A N/A FirstBank 1,298,609 11.3 % 802,808 7.0 % $ 745,465 6.5 % As of December 31, 2022 Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,528,344 13.1 % $ 1,225,161 10.5 % N/A N/A FirstBank 1,506,543 12.9 % 1,222,922 10.5 % $ 1,164,688 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,315,386 11.3 % $ 991,797 8.5 % N/A N/A FirstBank 1,293,585 11.1 % 989,985 8.5 % $ 931,750 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,315,386 10.5 % $ 499,648 4.0 % N/A N/A FirstBank 1,293,585 10.4 % 499,194 4.0 % $ 623,992 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,285,386 11.0 % $ 816,774 7.0 % N/A N/A FirstBank 1,293,585 11.1 % 815,281 7.0 % $ 757,047 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock Units | The following table summarizes changes in restricted stock units for the three months ended March 31, 2023. Restricted Stock Weighted Balance at beginning of period (unvested) 365,155 $ 39.02 Granted 144,578 37.17 Vested (134,601) 34.11 Forfeited (1,428) 43.62 Balance at end of period (unvested) 373,704 $ 39.05 |
Schedule of Changes in Performance Stock Units | The following table summarizes information about the changes in PSUs as of and for the three months ended March 31, 2023. Performance Stock Weighted Balance at beginning of period (unvested) 161,667 $ 41.73 Granted 86,010 37.17 Performance adjustment (1) 44,319 37.17 Vested (90,583) 36.21 Forfeited or expired (1,153) 44.25 Balance at end of period (unvested) 200,260 $ 40.98 (1) PSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. PSU awards are settled with payouts ranging from 0% and 200% of the target award value based on the Company's performance relative to a predefined peer group over a fixed three performance attainment above or below target. |
Share-Based Payment Arrangement, Performance Shares, Activity | The following table summarizes data related to the Company's outstanding PSUs as of March 31, 2023: Grant Year Grant Price Vest Year PSUs Outstanding 2021 (1) $ 43.20 2024 54,922 2022 (2) $ 44.44 2025 59,328 2023 (2) $ 37.17 2026 86,010 (1) Vesting factor will be either at 0%, 25%, 100%, or 200% of PSUs outstanding based on the Company's performance relative to a predefined peer group over a fixed three (2) Vesting factor will be interpolated between 0% and 200% of PSUs outstanding based on the Company's performance relative to a predefined peer group over a fixed three |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 $ 82,559 New loans and advances 23,098 Repayments (2,365) Loans outstanding at March 31, 2023 $ 103,292 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands | Mar. 31, 2023 branch | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | ||
Number of full-service branches | branch | 82 | |
Recorded investment in TDRs | $ | $ 13,854 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic earnings per common share: | ||
Net income applicable to FB Financial Corporation | $ 36,381 | $ 35,236 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 |
Earnings available to common shareholders | $ 36,381 | $ 35,236 |
Weighted average basic shares outstanding (in shares) | 46,679,618 | 47,530,520 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.78 | $ 0.74 |
Diluted earnings per common share: | ||
Earnings available to common shareholders | $ 36,381 | $ 35,236 |
Weighted average basic shares outstanding (in shares) | 46,679,618 | 47,530,520 |
Weighted average diluted shares contingently issuable (in shares) | 85,536 | 193,382 |
Weighted average diluted shares outstanding (in shares) | 46,765,154 | 47,723,902 |
Diluted (loss) earnings per common share (in dollars per share) | $ 0.78 | $ 0.74 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted stock units outstanding considered to be antidilutive (in shares) | 159,946 | 123,709 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of Securities (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 1,678,270,000 | $ 1,705,574,000 |
Gross unrealized gains | 967,000 | 458,000 |
Gross unrealized losses | (208,232,000) | (234,846,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 1,471,005,000 | 1,471,186,000 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 45,176,000 | 45,167,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4,248,000) | (5,105,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 40,928,000 | 40,062,000 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 1,197,702,000 | 1,224,522,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (172,314,000) | (190,329,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 1,025,388,000 | 1,034,193,000 |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 18,979,000 | 19,209,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,256,000) | (1,565,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 17,723,000 | 17,644,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 295,010,000 | 295,375,000 |
Gross unrealized gains | 967,000 | 458,000 |
Gross unrealized losses | (24,983,000) | (31,413,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 270,994,000 | 264,420,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 113,403,000 | 113,301,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4,580,000) | (5,621,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 108,823,000 | 107,680,000 |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 8,000,000 | 8,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (851,000) | (813,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | $ 7,149,000 | $ 7,187,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2023 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Accrued interest receivable | $ 44,737,000 | $ 45,684,000 | ||
Trade date payable - securities | 245,000 | $ 0 | 0 | |
Allowance for credit losses for investments | $ 0 | $ 0 | ||
Number of securities in securities portfolio | security | 506 | 503 | ||
Number of securities in securities portfolio, unrealized loss position | security | 409 | 454 | ||
Unrealized loss position | $ 1,404,929,000 | $ 1,440,001,000 | ||
Marketable securities at fair value | 3,059,000 | 2,990,000 | ||
Equity securities without readily determinable market value | 22,483,000 | 22,496,000 | ||
Federal Home Loan Bank stock, at cost | 43,369,000 | 58,641,000 | ||
Net (loss) gain on change in fair value and sale of equity securities | 69,000 | (154,000) | ||
Collateral Pledged | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities pledged | 1,184,836,000 | 1,191,021,000 | ||
Debt Securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Accrued interest receivable | 5,399,000 | 5,470,000 | ||
Increase (decrease) in debt securities, available for sale | 27,123,000 | (105,660,000) | ||
Unrealized loss position | $ 207,265,000 | $ 100,933,000 | $ 234,388,000 | |
Unrealized gain position | $ 4,727,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due in one year or less | $ 34,965 | $ 4,277 |
Due in one to five years | 138,189 | 161,556 |
Due in five to ten years | 58,876 | 61,290 |
Due in over ten years | 229,559 | 234,720 |
Amortized cost, sub-total | 461,589 | 461,843 |
Total debt securities | 1,678,270 | 1,705,574 |
Fair value | ||
Due in one year or less | 34,270 | 4,225 |
Due in one to five years | 130,585 | 152,181 |
Due in five to ten years | 56,982 | 57,859 |
Due in over ten years | 206,057 | 205,084 |
Fair value, sub-total | 427,894 | 419,349 |
Total debt securities | 1,471,005 | 1,471,186 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 1,197,702 | 1,224,522 |
Total debt securities | 1,197,702 | 1,224,522 |
Fair value | ||
Mortgage-backed securities | 1,025,388 | 1,034,193 |
Total debt securities | 1,025,388 | 1,034,193 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 18,979 | 19,209 |
Total debt securities | 18,979 | 19,209 |
Fair value | ||
Mortgage-backed securities | 17,723 | 17,644 |
Total debt securities | $ 17,723 | $ 17,644 |
Investment Securities - Summa_2
Investment Securities - Summary of Sales and Other Dispositions of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 0 | $ 0 |
Proceeds from maturities, prepayments and calls | 26,827 | 57,443 |
Gross realized gains | 0 | 2 |
Gross realized losses | $ 0 | $ 0 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Unrealized Losses on Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 221,234 | $ 646,226 |
Unrealized Loss, Less than 12 months | (8,462) | (67,665) |
Fair Value, 12 months or more | 1,183,695 | 793,775 |
Unrealized Loss, 12 months or more | (199,770) | (167,181) |
Fair Value, Total | 1,404,929 | 1,440,001 |
Unrealized Loss, Total | (208,232) | (234,846) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 4,014 | 23,791 |
Unrealized Loss, Less than 12 months | (94) | (2,802) |
Fair Value, 12 months or more | 36,913 | 16,271 |
Unrealized Loss, 12 months or more | (4,154) | (2,303) |
Fair Value, Total | 40,927 | 40,062 |
Unrealized Loss, Total | (4,248) | (5,105) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 101,194 | 316,656 |
Unrealized Loss, Less than 12 months | (4,425) | (32,470) |
Fair Value, 12 months or more | 924,189 | 717,533 |
Unrealized Loss, 12 months or more | (167,889) | (157,859) |
Fair Value, Total | 1,025,383 | 1,034,189 |
Unrealized Loss, Total | (172,314) | (190,329) |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 11,311 | 11,104 |
Unrealized Loss, Less than 12 months | (740) | (968) |
Fair Value, 12 months or more | 6,415 | 6,541 |
Unrealized Loss, 12 months or more | (516) | (597) |
Fair Value, Total | 17,726 | 17,645 |
Unrealized Loss, Total | (1,256) | (1,565) |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 43,100 | 196,419 |
Unrealized Loss, Less than 12 months | (1,872) | (26,811) |
Fair Value, 12 months or more | 161,743 | 36,726 |
Unrealized Loss, 12 months or more | (23,111) | (4,602) |
Fair Value, Total | 204,843 | 233,145 |
Unrealized Loss, Total | (24,983) | (31,413) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 60,669 | 94,248 |
Unrealized Loss, Less than 12 months | (1,276) | (4,122) |
Fair Value, 12 months or more | 48,154 | 13,434 |
Unrealized Loss, 12 months or more | (3,304) | (1,499) |
Fair Value, Total | 108,823 | 107,682 |
Unrealized Loss, Total | (4,580) | (5,621) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 946 | 4,008 |
Unrealized Loss, Less than 12 months | (55) | (492) |
Fair Value, 12 months or more | 6,281 | 3,270 |
Unrealized Loss, 12 months or more | (796) | (321) |
Fair Value, Total | 7,227 | 7,278 |
Unrealized Loss, Total | $ (851) | $ (813) |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans Outstanding by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | $ 9,365,996 | $ 9,298,212 | ||
Less: Allowance for credit losses | (138,809) | (134,192) | $ (120,049) | $ (125,559) |
Net loans held for investment | 9,227,187 | 9,164,020 | ||
Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,671,398 | 1,645,783 | ||
Less: Allowance for credit losses | (11,117) | (11,106) | (12,699) | (15,751) |
Construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,697,513 | 1,657,488 | ||
Less: Allowance for credit losses | (41,025) | (39,808) | (31,782) | (28,576) |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,562,503 | 1,573,121 | ||
Less: Allowance for credit losses | (27,213) | (26,141) | (21,024) | (19,104) |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 497,391 | 496,660 | ||
Less: Allowance for credit losses | (9,034) | (7,494) | (6,545) | (5,903) |
Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 489,379 | 479,572 | ||
Less: Allowance for credit losses | (6,619) | (6,490) | (6,398) | (6,976) |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,136,978 | 1,114,580 | ||
Less: Allowance for credit losses | (7,952) | (7,783) | (8,416) | (12,593) |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,939,517 | 1,964,010 | ||
Less: Allowance for credit losses | (21,868) | (21,916) | (21,290) | (25,768) |
Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 371,317 | 366,998 | ||
Less: Allowance for credit losses | $ (13,981) | $ (13,454) | $ (11,895) | $ (10,888) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) loanPortfolioPool | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||
Accrued interest receivable on loans | $ 37,005 | $ 38,507 | |
Number of loan portfolio pools | loanPortfolioPool | 3 | ||
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | $ 181 | $ 184 | |
Recorded investment in TDRs | 13,854 | ||
TDRs classified as non-accruals | 7,321 | ||
Allocation to specific reserves | 253 | ||
Payment default for loans modified as troubled debt restructurings | $ 304 | ||
Federal Reserve Bank | |||
Financing Receivable, Past Due [Line Items] | |||
Deposit liabilities, collateral issued, financial instruments | 3,164,317 | 3,118,172 | |
FHLB Cincinnati | Residential Mortgage Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | 849,349 | 909,734 | |
FHLB Cincinnati | Commercial Loan | |||
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | $ 1,709,763 | $ 1,763,730 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 134,192 | $ 125,559 |
Provision for credit losses | 4,997 | (6,129) |
Recoveries of loans previously charged-off | 387 | 1,198 |
Loans charged off | (767) | (579) |
Balance at end of period | 138,809 | 120,049 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 11,106 | 15,751 |
Provision for credit losses | (10) | (4,006) |
Recoveries of loans previously charged-off | 67 | 958 |
Loans charged off | (46) | (4) |
Balance at end of period | 11,117 | 12,699 |
Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 39,808 | 28,576 |
Provision for credit losses | 1,217 | 3,206 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Balance at end of period | 41,025 | 31,782 |
Residential real estate: | 1-to-4 family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 26,141 | 19,104 |
Provision for credit losses | 1,073 | 1,908 |
Recoveries of loans previously charged-off | 15 | 12 |
Loans charged off | (16) | 0 |
Balance at end of period | 27,213 | 21,024 |
Residential real estate: | Residential line of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 7,494 | 5,903 |
Provision for credit losses | 1,540 | 641 |
Recoveries of loans previously charged-off | 0 | 1 |
Loans charged off | 0 | 0 |
Balance at end of period | 9,034 | 6,545 |
Residential real estate: | Multi-family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 6,490 | 6,976 |
Provision for credit losses | 129 | (578) |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Balance at end of period | 6,619 | 6,398 |
Commercial real estate: | Owner-occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 7,783 | 12,593 |
Provision for credit losses | 103 | (4,187) |
Recoveries of loans previously charged-off | 66 | 10 |
Loans charged off | 0 | 0 |
Balance at end of period | 7,952 | 8,416 |
Commercial real estate: | Non-owner occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 21,916 | 25,768 |
Provision for credit losses | (48) | (4,478) |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Balance at end of period | 21,868 | 21,290 |
Consumer and other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 13,454 | 10,888 |
Provision for credit losses | 993 | 1,365 |
Recoveries of loans previously charged-off | 239 | 217 |
Loans charged off | (705) | (575) |
Balance at end of period | $ 13,981 | $ 11,895 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 9,365,996 | $ 9,298,212 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 40,853 | 396,833 |
2022-2021 | 388,923 | 204,830 |
2021-2020 | 194,256 | 69,147 |
2020-2019 | 55,654 | 92,705 |
2019-2018 | 84,793 | 40,196 |
Prior | 100,295 | 70,500 |
Revolving Loans Amortized Cost Basis | 806,624 | 771,572 |
Total | 1,671,398 | 1,645,783 |
Year one | 0 | |
Year two | 46 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 46 | |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 40,396 | 396,643 |
2022-2021 | 383,606 | 204,000 |
2021-2020 | 193,605 | 67,231 |
2020-2019 | 53,715 | 90,894 |
2019-2018 | 83,158 | 39,780 |
Prior | 92,586 | 62,816 |
Revolving Loans Amortized Cost Basis | 785,130 | 762,717 |
Total | 1,632,196 | 1,624,081 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 125 |
2022-2021 | 2,625 | 7 |
2021-2020 | 4 | 0 |
2020-2019 | 0 | 160 |
2019-2018 | 159 | 143 |
Prior | 891 | 771 |
Revolving Loans Amortized Cost Basis | 7,040 | 2,520 |
Total | 10,719 | 3,726 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 457 | 65 |
2022-2021 | 2,692 | 823 |
2021-2020 | 647 | 1,916 |
2020-2019 | 1,939 | 1,651 |
2019-2018 | 1,476 | 273 |
Prior | 6,818 | 6,913 |
Revolving Loans Amortized Cost Basis | 14,454 | 6,335 |
Total | 28,483 | 17,976 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 41,824 | 682,965 |
2022-2021 | 771,886 | 496,032 |
2021-2020 | 431,104 | 142,248 |
2020-2019 | 110,286 | 84,599 |
2019-2018 | 77,147 | 17,360 |
Prior | 57,326 | 45,378 |
Revolving Loans Amortized Cost Basis | 207,940 | 188,906 |
Total | 1,697,513 | 1,657,488 |
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 41,824 | 682,885 |
2022-2021 | 769,011 | 495,723 |
2021-2020 | 430,782 | 142,233 |
2020-2019 | 110,280 | 84,599 |
2019-2018 | 77,147 | 17,360 |
Prior | 56,628 | 44,326 |
Revolving Loans Amortized Cost Basis | 207,940 | 188,906 |
Total | 1,693,612 | 1,656,032 |
Construction | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 2,797 | 0 |
2021-2020 | 0 | 15 |
2020-2019 | 6 | 0 |
2019-2018 | 0 | 0 |
Prior | 698 | 707 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 3,501 | 722 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 80 |
2022-2021 | 78 | 309 |
2021-2020 | 322 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 345 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 400 | 734 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 10,827 | 142,912 |
2022-2021 | 144,897 | 147,168 |
2021-2020 | 147,358 | 96,819 |
2020-2019 | 95,536 | 33,547 |
2019-2018 | 33,362 | 6,971 |
Prior | 43,842 | 38,551 |
Revolving Loans Amortized Cost Basis | 13,557 | 13,604 |
Total | 489,379 | 479,572 |
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Residential real estate: | Multi-family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 10,827 | 142,912 |
2022-2021 | 144,897 | 147,168 |
2021-2020 | 147,358 | 96,819 |
2020-2019 | 95,536 | 33,547 |
2019-2018 | 33,362 | 6,971 |
Prior | 42,701 | 37,385 |
Revolving Loans Amortized Cost Basis | 13,557 | 13,604 |
Total | 488,238 | 478,406 |
Residential real estate: | Multi-family mortgage | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 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] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 1,141 | 1,166 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,141 | 1,166 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 36,402 | 569,437 |
2022-2021 | 551,997 | 453,564 |
2021-2020 | 444,620 | 166,187 |
2020-2019 | 162,304 | 95,326 |
2019-2018 | 89,604 | 70,157 |
Prior | 277,576 | 218,450 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,562,503 | 1,573,121 |
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 16 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 16 | |
Residential real estate: | 1-to-4 family mortgage | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 36,402 | 568,210 |
2022-2021 | 550,052 | 448,401 |
2021-2020 | 439,949 | 160,715 |
2020-2019 | 157,470 | 93,548 |
2019-2018 | 88,489 | 68,113 |
Prior | 269,548 | 211,019 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,541,910 | 1,550,006 |
Residential real estate: | 1-to-4 family mortgage | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 1,227 |
2022-2021 | 1,945 | 5,163 |
2021-2020 | 4,671 | 5,472 |
2020-2019 | 4,834 | 1,778 |
2019-2018 | 1,115 | 2,044 |
Prior | 8,028 | 7,431 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 20,593 | 23,115 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 497,391 | 496,660 |
Total | 497,391 | 496,660 |
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Residential real estate: | Residential line of credit | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 496,309 | 495,129 |
Total | 496,309 | 495,129 |
Residential real estate: | Residential line of credit | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 1,082 | 1,531 |
Total | 1,082 | 1,531 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 24,353 | 237,963 |
2022-2021 | 234,082 | 225,859 |
2021-2020 | 231,880 | 110,972 |
2020-2019 | 114,965 | 153,162 |
2019-2018 | 162,635 | 69,602 |
Prior | 320,181 | 254,690 |
Revolving Loans Amortized Cost Basis | 48,882 | 62,332 |
Total | 1,136,978 | 1,114,580 |
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Commercial real estate: | Owner-occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 24,353 | 237,862 |
2022-2021 | 227,787 | 223,883 |
2021-2020 | 229,910 | 110,748 |
2020-2019 | 114,965 | 148,405 |
2019-2018 | 158,969 | 66,101 |
Prior | 310,138 | 246,414 |
Revolving Loans Amortized Cost Basis | 43,682 | 57,220 |
Total | 1,109,804 | 1,090,633 |
Commercial real estate: | Owner-occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 101 |
2022-2021 | 6,295 | 683 |
2021-2020 | 677 | 0 |
2020-2019 | 0 | 168 |
2019-2018 | 165 | 2,225 |
Prior | 3,397 | 1,258 |
Revolving Loans Amortized Cost Basis | 5,100 | 5,000 |
Total | 15,634 | 9,435 |
Commercial real estate: | Owner-occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 1,293 |
2021-2020 | 1,293 | 224 |
2020-2019 | 0 | 4,589 |
2019-2018 | 3,501 | 1,276 |
Prior | 6,646 | 7,018 |
Revolving Loans Amortized Cost Basis | 100 | 112 |
Total | 11,540 | 14,512 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 7,627 | 467,360 |
2022-2021 | 464,026 | 442,577 |
2021-2020 | 463,989 | 131,497 |
2020-2019 | 125,499 | 159,351 |
2019-2018 | 161,703 | 214,104 |
Prior | 671,925 | 488,213 |
Revolving Loans Amortized Cost Basis | 44,748 | 60,908 |
Total | 1,939,517 | 1,964,010 |
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Commercial real estate: | Non-owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 7,627 | 467,360 |
2022-2021 | 464,026 | 440,319 |
2021-2020 | 460,997 | 131,497 |
2020-2019 | 125,499 | 159,205 |
2019-2018 | 161,560 | 210,752 |
Prior | 652,952 | 473,607 |
Revolving Loans Amortized Cost Basis | 44,748 | 60,908 |
Total | 1,917,409 | 1,943,648 |
Commercial real estate: | Non-owner occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 1,032 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 82 |
Prior | 2,507 | 2,459 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 3,539 | 2,541 |
Commercial real estate: | Non-owner occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 2,258 |
2021-2020 | 1,960 | 0 |
2020-2019 | 0 | 146 |
2019-2018 | 143 | 3,270 |
Prior | 16,466 | 12,147 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 18,569 | 17,821 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 24,159 | 118,803 |
2022-2021 | 109,218 | 58,175 |
2021-2020 | 54,988 | 42,468 |
2020-2019 | 40,579 | 30,045 |
2019-2018 | 28,724 | 28,489 |
Prior | 109,451 | 84,843 |
Revolving Loans Amortized Cost Basis | 4,198 | 4,175 |
Total | 371,317 | 366,998 |
Year one | 171 | |
Year two | 339 | |
Year three | 38 | |
Year four | 81 | |
Year five | 9 | |
Prior | 65 | |
Revolving Loans Amortized Cost Basis | 2 | |
Total | 705 | |
Consumer and other | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 24,159 | 118,637 |
2022-2021 | 108,985 | 56,779 |
2021-2020 | 53,452 | 41,008 |
2020-2019 | 39,098 | 29,139 |
2019-2018 | 27,758 | 26,982 |
Prior | 105,751 | 82,318 |
Revolving Loans Amortized Cost Basis | 4,198 | 4,175 |
Total | 363,401 | 359,038 |
Consumer and other | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 166 |
2022-2021 | 233 | 1,396 |
2021-2020 | 1,536 | 1,460 |
2020-2019 | 1,481 | 906 |
2019-2018 | 966 | 1,507 |
Prior | 3,700 | 2,525 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 7,916 | 7,960 |
Total consumer type loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 60,561 | 688,240 |
2022-2021 | 661,215 | 511,739 |
2021-2020 | 499,608 | 208,655 |
2020-2019 | 202,883 | 125,371 |
2019-2018 | 118,328 | 98,646 |
Prior | 387,027 | 303,293 |
Revolving Loans Amortized Cost Basis | 501,589 | 500,835 |
Total | 2,431,211 | 2,436,779 |
Year one | 171 | |
Year two | 339 | |
Year three | 38 | |
Year four | 81 | |
Year five | 9 | |
Prior | 81 | |
Revolving Loans Amortized Cost Basis | 2 | |
Total | 721 | |
Total consumer type loans | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 60,561 | 686,847 |
2022-2021 | 659,037 | 505,180 |
2021-2020 | 493,401 | 201,723 |
2020-2019 | 196,568 | 122,687 |
2019-2018 | 116,247 | 95,095 |
Prior | 375,299 | 293,337 |
Revolving Loans Amortized Cost Basis | 500,507 | 499,304 |
Total | 2,401,620 | 2,404,173 |
Total consumer type loans | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 1,393 |
2022-2021 | 2,178 | 6,559 |
2021-2020 | 6,207 | 6,932 |
2020-2019 | 6,315 | 2,684 |
2019-2018 | 2,081 | 3,551 |
Prior | 11,728 | 9,956 |
Revolving Loans Amortized Cost Basis | 1,082 | 1,531 |
Total | 29,591 | 32,606 |
Total Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 125,484 | 1,928,033 |
2022-2021 | 2,003,814 | 1,516,466 |
2021-2020 | 1,468,587 | 550,683 |
2020-2019 | 501,940 | 523,364 |
2019-2018 | 519,640 | 348,233 |
Prior | 1,193,569 | 897,332 |
Revolving Loans Amortized Cost Basis | 1,121,751 | 1,097,322 |
Total | 6,934,785 | 6,861,433 |
Year one | 0 | |
Year two | 46 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 46 | |
Total Commercial Loans | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 125,027 | 1,927,662 |
2022-2021 | 1,989,327 | 1,511,093 |
2021-2020 | 1,462,652 | 548,528 |
2020-2019 | 499,995 | 516,650 |
2019-2018 | 514,196 | 340,964 |
Prior | 1,155,005 | 864,548 |
Revolving Loans Amortized Cost Basis | 1,095,057 | 1,083,355 |
Total | 6,841,259 | 6,792,800 |
Total Commercial Loans | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 226 |
2022-2021 | 11,717 | 690 |
2021-2020 | 1,713 | 15 |
2020-2019 | 6 | 328 |
2019-2018 | 324 | 2,450 |
Prior | 7,493 | 5,195 |
Revolving Loans Amortized Cost Basis | 12,140 | 7,520 |
Total | 33,393 | 16,424 |
Total Commercial Loans | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 457 | 145 |
2022-2021 | 2,770 | 4,683 |
2021-2020 | 4,222 | 2,140 |
2020-2019 | 1,939 | 6,386 |
2019-2018 | 5,120 | 4,819 |
Prior | 31,071 | 27,589 |
Revolving Loans Amortized Cost Basis | 14,554 | 6,447 |
Total | $ 60,133 | $ 52,209 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Analysis of Aging by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 9,365,996 | $ 9,298,212 |
90 days or more and accruing interest | 12,580 | 18,415 |
Nonaccrual loans | 32,900 | 27,431 |
30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 25,077 | 31,296 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 9,295,439 | 9,221,070 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,671,398 | 1,645,783 |
90 days or more and accruing interest | 42 | 136 |
Nonaccrual loans | 2,413 | 1,307 |
Commercial and industrial | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 574 | 1,650 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,668,369 | 1,642,690 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,697,513 | 1,657,488 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 382 | 389 |
Construction | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 2,708 | 1,246 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,694,423 | 1,655,853 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,562,503 | 1,573,121 |
90 days or more and accruing interest | 11,505 | 16,639 |
Nonaccrual loans | 9,088 | 6,476 |
Residential real estate: | 1-to-4 family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 13,348 | 15,470 |
Residential real estate: | 1-to-4 family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,528,562 | 1,534,536 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 497,391 | 496,660 |
90 days or more and accruing interest | 158 | 131 |
Nonaccrual loans | 924 | 1,400 |
Residential real estate: | Residential line of credit | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 678 | 772 |
Residential real estate: | Residential line of credit | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 495,631 | 494,357 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 489,379 | 479,572 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 39 | 42 |
Residential real estate: | Multi-family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 0 | 0 |
Residential real estate: | Multi-family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 489,340 | 479,530 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,136,978 | 1,114,580 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 7,211 | 5,410 |
Commercial real estate: | Owner-occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 851 | 1,948 |
Commercial real estate: | Owner-occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,128,916 | 1,107,222 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,939,517 | 1,964,010 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 5,802 | 5,956 |
Commercial real estate: | Non-owner occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 0 | 102 |
Commercial real estate: | Non-owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,933,715 | 1,957,952 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 371,317 | 366,998 |
90 days or more and accruing interest | 875 | 1,509 |
Nonaccrual loans | 7,041 | 6,451 |
Consumer and other | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 6,918 | 10,108 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 356,483 | $ 348,930 |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | $ 17,329 | $ 15,714 | |
Nonaccrual with related allowance | 15,571 | 11,717 | |
Related allowance | 533 | 433 | |
Year to date Interest Income | 443 | $ 275 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 1,804 | 790 | |
Nonaccrual with related allowance | 609 | 517 | |
Related allowance | 11 | 10 | |
Year to date Interest Income | 20 | 54 | |
Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 0 | 0 | |
Nonaccrual with related allowance | 382 | 389 | |
Related allowance | 7 | 7 | |
Year to date Interest Income | 6 | 19 | |
Residential real estate: | 1-to-4 family mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 1,955 | 2,834 | |
Nonaccrual with related allowance | 7,133 | 3,642 | |
Related allowance | 143 | 78 | |
Year to date Interest Income | 79 | 52 | |
Residential real estate: | Residential line of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 842 | 1,134 | |
Nonaccrual with related allowance | 82 | 266 | |
Related allowance | 1 | 4 | |
Year to date Interest Income | 24 | 40 | |
Residential real estate: | Multi-family mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 0 | 1 | |
Nonaccrual with related allowance | 39 | 41 | |
Related allowance | 1 | 1 | |
Year to date Interest Income | 1 | 0 | |
Commercial real estate: | Owner-occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 7,008 | 5,200 | |
Nonaccrual with related allowance | 203 | 210 | |
Related allowance | 12 | 1 | |
Year to date Interest Income | 58 | 25 | |
Commercial real estate: | Non-owner occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 5,610 | 5,755 | |
Nonaccrual with related allowance | 192 | 201 | |
Related allowance | 4 | 5 | |
Year to date Interest Income | 82 | 70 | |
Consumer and other | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 110 | 0 | |
Nonaccrual with related allowance | 6,931 | 6,451 | |
Related allowance | 354 | $ 327 | |
Year to date Interest Income | $ 173 | $ 15 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Performance Of Loans That has been Modified (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 9,365,996 | $ 9,298,212 |
90 days or more and accruing interest | 12,580 | 18,415 |
Nonaccrual loans | 32,900 | 27,431 |
30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 25,077 | 31,296 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 9,295,439 | 9,221,070 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,671,398 | 1,645,783 |
90 days or more and accruing interest | 42 | 136 |
Nonaccrual loans | 2,413 | 1,307 |
Commercial and industrial | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 574 | 1,650 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,668,369 | 1,642,690 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,697,513 | 1,657,488 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 382 | 389 |
Construction | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 2,708 | 1,246 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,694,423 | 1,655,853 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,562,503 | 1,573,121 |
90 days or more and accruing interest | 11,505 | 16,639 |
Nonaccrual loans | 9,088 | 6,476 |
Residential real estate: | 1-to-4 family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 13,348 | 15,470 |
Residential real estate: | 1-to-4 family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,528,562 | 1,534,536 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 497,391 | 496,660 |
90 days or more and accruing interest | 158 | 131 |
Nonaccrual loans | 924 | 1,400 |
Residential real estate: | Residential line of credit | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 678 | 772 |
Residential real estate: | Residential line of credit | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 495,631 | 494,357 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 489,379 | 479,572 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 39 | 42 |
Residential real estate: | Multi-family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 0 | 0 |
Residential real estate: | Multi-family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 489,340 | 479,530 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,136,978 | 1,114,580 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 7,211 | 5,410 |
Commercial real estate: | Owner-occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 851 | 1,948 |
Commercial real estate: | Owner-occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,128,916 | 1,107,222 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,939,517 | 1,964,010 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 5,802 | 5,956 |
Commercial real estate: | Non-owner occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 0 | 102 |
Commercial real estate: | Non-owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,933,715 | 1,957,952 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 371,317 | 366,998 |
90 days or more and accruing interest | 875 | 1,509 |
Nonaccrual loans | 7,041 | 6,451 |
Consumer and other | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 6,918 | 10,108 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 356,483 | $ 348,930 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of loans | loan | 2 |
Pre-modification outstanding recorded investment | $ 102 |
Post-modification outstanding recorded investment | 102 |
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 |
Pre-modification outstanding recorded investment | $ 80 |
Post-modification outstanding recorded investment | 80 |
Charge offs and specific reserves | $ 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_11
Loans and Allowance for Credit Losses - Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | $ 138,809 | $ 134,192 | $ 120,049 | $ 125,559 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 11,117 | 11,106 | 12,699 | 15,751 |
Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 41,025 | 39,808 | 31,782 | 28,576 |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 27,213 | 26,141 | 21,024 | 19,104 |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 9,034 | 7,494 | 6,545 | 5,903 |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 7,952 | 7,783 | 8,416 | 12,593 |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 21,868 | 21,916 | 21,290 | 25,768 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 13,981 | 13,454 | $ 11,895 | $ 10,888 |
Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 22,431 | 19,511 | ||
Real Estate | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 2,597 | 2,596 | ||
Real Estate | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,332 | 4,467 | ||
Real Estate | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,109 | 1,135 | ||
Real Estate | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 7,651 | 5,424 | ||
Real Estate | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,610 | 5,755 | ||
Real Estate | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 132 | 134 | ||
Financial Assets and Equipment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 800 | 0 | ||
Financial Assets and Equipment | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 800 | 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 | 0 | ||
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 | 23,231 | 19,511 | ||
Individually assessed allowance for credit loss | 178 | 194 | ||
Total | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,397 | 2,596 | ||
Individually assessed allowance for credit loss | 0 | 0 | ||
Total | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,332 | 4,467 | ||
Individually assessed allowance for credit loss | 169 | 194 | ||
Total | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,109 | 1,135 | ||
Individually assessed allowance for credit loss | 5 | 0 | ||
Total | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 7,651 | 5,424 | ||
Individually assessed allowance for credit loss | 4 | 0 | ||
Total | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,610 | 5,755 | ||
Individually assessed allowance for credit loss | 0 | 0 | ||
Total | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 132 | 134 | ||
Individually assessed allowance for credit loss | $ 0 | $ 0 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 5,794 | $ 9,777 |
Transfers from loans | 235 | 563 |
Proceeds from sale of other real estate owned | (2,031) | (121) |
Gain (loss) on sale of other real estate owned | 87 | (104) |
Write-downs and partial liquidations | 0 | (394) |
Balance at end of period | $ 4,085 | $ 9,721 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 798 | $ 840 |
Total foreclosure proceedings in process | $ 4,769 | $ 2,653 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) lease lease_renewal_option | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Lessee, number of operating leases | lease | 60 | ||
Lessee, number of finance leases | lease | 1 | ||
Lessee, operating and finance lease, number of options to renew | lease_renewal_option | 1 | ||
Operating lease right-of-use assets | $ 57,054 | $ 60,043 | |
Operating lease liabilities | 67,345 | $ 69,754 | |
Gain on lease modifications and terminations | $ 72 | $ 18 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating and finance lease, renewal term | 20 years |
Leases - Information Related to
Leases - Information Related to Company's Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating leases | $ 57,054 | $ 60,043 |
Finance leases | 1,339 | 1,367 |
Total right-of-use assets | 58,393 | 61,410 |
Operating leases | 67,345 | 69,754 |
Finance leases | 1,397 | 1,420 |
Total lease liabilities | $ 68,742 | $ 71,174 |
Weighted average remaining lease term (in years) - operating | 11 years 10 months 24 days | 12 years 1 month 6 days |
Weighted average remaining lease term (in years) - finance | 12 years 1 month 6 days | 12 years 4 months 24 days |
Weighted average discount rate - operating | 3.21% | 3.08% |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Amortization of right-of-use asset | $ 1,815 | $ 1,710 |
Short-term lease cost | 121 | 111 |
Variable lease cost | 298 | 256 |
Gain on lease modifications and terminations | (72) | (18) |
Interest on lease liabilities | 6 | 9 |
Amortization of right-of-use asset | 28 | 37 |
Sublease income | (281) | (195) |
Total lease cost | $ 1,915 | $ 1,910 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
March 31, 2024 | $ 6,596 | |
March 31, 2025 | 7,956 | |
March 31, 2026 | 7,885 | |
March 31, 2027 | 7,715 | |
March 31, 2028 | 7,326 | |
Thereafter | 45,839 | |
Total undiscounted future minimum lease payments | 83,317 | |
Less: imputed interest | (15,972) | |
Operating leases | 67,345 | $ 69,754 |
Finance Lease | ||
March 31, 2024 | 89 | |
March 31, 2025 | 120 | |
March 31, 2026 | 121 | |
March 31, 2027 | 123 | |
March 31, 2028 | 125 | |
Thereafter | 977 | |
Total undiscounted future minimum lease payments | 1,555 | |
Less: imputed interest | (158) | |
Finance leases | $ 1,397 | $ 1,420 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Carrying value at beginning of period | $ 168,365 | $ 115,512 |
Capitalization | 1,788 | 9,812 |
Change in fair value: | ||
Due to pay-offs/pay-downs | (2,520) | (4,471) |
Due to change in valuation inputs or assumptions | (2,754) | 23,822 |
Carrying value at end of period | $ 164,879 | $ 144,675 |
Mortgage Servicing Rights - Ser
Mortgage Servicing Rights - Servicing Income and Expense Included in Mortgage Banking Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing income: | ||
Servicing income | $ 7,768 | $ 7,429 |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income, Other expense | Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income, Other expense |
Change in fair value of mortgage servicing rights | $ (5,274) | $ 19,351 |
Change in fair value of derivative hedging instruments | 1,867 | (19,098) |
Servicing income | 4,361 | 7,682 |
Servicing expenses | 1,883 | 2,548 |
Net servicing income (loss) | $ 2,478 | $ 5,134 |
Mortgage Servicing Rights - Dat
Mortgage Servicing Rights - Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance | $ 11,028,420 | $ 11,086,582 |
Weighted-average prepayment speed (CPR) | 5.96% | 5.55% |
Estimated impact on fair value of a 10% increase | $ (5,017) | $ (4,886) |
Estimated impact on fair value of a 20% increase | $ (9,695) | $ (9,447) |
Discount rate | 8.97% | 9.10% |
Estimated impact on fair value of a 100 bp increase | $ (7,924) | $ (8,087) |
Estimated impact on fair value of a 200 bp increase | $ (15,163) | $ (15,475) |
Weighted-average coupon interest rate | 3.35% | 3.31% |
Weighted-average servicing fee (basis points) | 0.27% | 0.27% |
Weighted-average remaining maturity (in months) | 333 months | 332 months |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 92,947 | $ 75,612 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal taxes calculated at statutory rate | $ 9,676 | $ 9,355 |
Increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 251 | 951 |
Expense (benefit) from equity based compensation | 115 | (291) |
Municipal interest income, net of interest disallowance | (456) | (444) |
Bank-owned life insurance | (127) | (74) |
Section 162(m) limitation | 127 | 122 |
Other | 111 | (306) |
Income tax expense, as reported | $ 9,697 | $ 9,313 |
Federal taxes calculated at statutory rate, percent | 21% | 21% |
Percentage increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 0.60% | 2.10% |
Expense (benefit) from equity based compensation | 0.30% | (0.70%) |
Municipal interest income, net of interest disallowance | (1.00%) | (1.00%) |
Bank-owned life insurance | (0.30%) | (0.20%) |
Section 162(m) limitation | 0.20% | 0.30% |
Other | 0.20% | (0.60%) |
Total | 21% | 20.90% |
Commitments and Contingencies -
Commitments and Contingencies - Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 3,409,867 | $ 3,635,232 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 3,341,445 | 3,563,982 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 68,422 | $ 71,250 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Floating interest rate loan commitments | $ 2,870,000 | $ 2,960,000 | |
Total principal amount of loans repurchased or indemnified | $ 3,326 | $ 1,348 |
Commitments and Contingencies_3
Commitments and Contingencies - Allowance for Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 134,192 | $ 125,559 |
Balance at end of period | 138,809 | 120,049 |
Unfunded Commitments | ||
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | 22,969 | 14,380 |
Provision for credit losses on unfunded commitments | (4,506) | 1,882 |
Balance at end of period | $ 18,463 | $ 16,262 |
Commitments and Contingencies_4
Commitments and Contingencies - Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 1,621 | $ 4,802 |
Provision for loan repurchases or indemnifications | (250) | (389) |
Losses on loans repurchased or indemnified | (13) | (96) |
Balance at end of period | $ 1,358 | $ 4,317 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) agreement | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |||
Net tax expenses on reclassification adjustment on gain on hedging activities | $ 0 | $ 0 | |
Net liability position | 0 | $ 0 | |
Cash collateral pledged on derivatives | 18,590,000 | 23,325,000 | |
Designated as hedging | Interest Expense on Borrowings | |||
Derivative [Line Items] | |||
Gain (loss) included in income statement | 197,000 | $ (139,000) | |
Interest Rate Swap | Designated as hedging | |||
Derivative [Line Items] | |||
Notional amount | $ 300,000,000 | $ 300,000,000 | |
Subordinated debt, net | |||
Derivative [Line Items] | |||
Number of derivative instruments | agreement | 2 | ||
Borrowings | $ 30,930,000 | ||
Subordinated debt, net | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | 30,000,000 | ||
Subordinated debt, net | Interest Rate Swap | Designated as hedging | |||
Derivative [Line Items] | |||
Notional amount | $ 30,000,000 | ||
Subordinated debt, net | Interest Rate Swap | LIBOR | |||
Derivative [Line Items] | |||
Derivative variable interest rate | 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 ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Interest Rate Swap | Subordinated debt, net | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 30,000,000 | |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,488,307,000 | $ 1,379,923,000 |
Asset | 38,811,000 | 47,514,000 |
Liability | (36,778,000) | (49,552,000) |
Not designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 567,594,000 | 560,310,000 |
Asset | 36,068,000 | 45,775,000 |
Liability | (36,087,000) | (45,762,000) |
Not designated as hedging | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 268,000,000 | 207,000,000 |
Asset | 0 | 306,000 |
Liability | (691,000) | 0 |
Not designated as hedging | Interest rate-lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 157,213,000 | 118,313,000 |
Asset | 2,640,000 | 1,433,000 |
Liability | 0 | 0 |
Not designated as hedging | Futures contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 495,500,000 | 494,300,000 |
Asset | 103,000 | 0 |
Liability | 0 | (3,790,000) |
Designated as hedging | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 300,000,000 | 300,000,000 |
Designated as hedging | Interest Rate Swap | Subordinated debt, net | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 30,000,000 | |
Asset | $ 988,000 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Liability | $ 1,255,000 | |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(70) and $273 | $ (197) | $ 774 |
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | (70) | 273 |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 2,185 | 15,958 |
Not designated as hedging | Interest rate-lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 1,207 | (5,446) |
Not designated as hedging | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (295) | 37,903 |
Not designated as hedging | Futures contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 1,937 | (16,535) |
Not designated as hedging | Option contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (664) | 36 |
Designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(70) and $273 | $ (197) | $ 774 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges (Details) - Interest Rate Swap - Designated as Hedging Instrument - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Notional Amount | $ 300,000,000 | $ 300,000,000 |
Remaining Maturity (In Years) | 1 year 2 months 23 days | |
Receive Fixed Rate | 1.48% | |
Estimated fair value | $ (11,683,000) | (13,677,000) |
Subordinated debt, net | ||
Derivative [Line Items] | ||
Notional Amount | $ 100,000,000 | 100,000,000 |
Remaining Maturity (In Years) | 11 months 1 day | |
Receive Fixed Rate | 1.46% | |
Estimated fair value | $ (2,952,000) | (3,830,000) |
Fixed Rate Money Market Deposits One | ||
Derivative [Line Items] | ||
Notional Amount | $ 75,000,000 | 75,000,000 |
Remaining Maturity (In Years) | 1 year 4 months 20 days | |
Receive Fixed Rate | 1.50% | |
Estimated fair value | $ (3,274,000) | (3,693,000) |
Fixed Rate Money Market Deposits Two | ||
Derivative [Line Items] | ||
Notional Amount | $ 125,000,000 | 125,000,000 |
Remaining Maturity (In Years) | 1 year 4 months 20 days | |
Receive Fixed Rate | 1.50% | |
Estimated fair value | $ (5,457,000) | $ (6,154,000) |
Derivatives - Income Included I
Derivatives - Income Included In Interest Expense On Borrowings And Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | $ 103,660 | $ 88,182 |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | (2,268) | 475 |
Interest Rate Swap | Designated as Hedging Instrument | Subordinated debt, net | ||
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | (760) | 162 |
Interest Rate Swap | Designated as Hedging Instrument | Fixed Rate Money Market Deposits | ||
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | $ (1,508) | $ 313 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Borrowings | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Item | $ 96,146 | $ 95,171 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (2,952) | (3,830) |
Borrowings | Subordinated debt, net | ||
Derivative [Line Items] | ||
Unamortized subordinated debt issuance costs | 902 | 999 |
Money market and savings deposits | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Item | 196,704 | 196,520 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (8,731) | (9,847) |
Purchase accounting fair value premium | $ 5,435 | $ 6,367 |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 35,641,000 | $ 44,273,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 35,641,000 | 44,273,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 12,771,000 | 14,229,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 22,870,000 | 30,044,000 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 18,528,000 | 20,251,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 18,528,000 | 20,251,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 12,771,000 | 14,229,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 5,757,000 | 6,022,000 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Net loans held for investment | $ 9,227,187 | $ 9,164,020 |
Interest receivable | 44,737 | 45,684 |
Level 1 | ||
Financial liabilities: | ||
Federal Home Loan Bank advances | 0 | |
Level 2 | ||
Financial liabilities: | ||
Federal Home Loan Bank advances | 125,000 | |
Level 3 | ||
Financial liabilities: | ||
Federal Home Loan Bank advances | 0 | |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 1,319,951 | 1,027,052 |
Investment securities | 1,474,064 | 1,474,176 |
Net loans held for investment | 9,227,187 | 9,164,020 |
Loans held for sale, at fair value | 61,987 | 113,240 |
Interest receivable | 44,737 | 45,684 |
Mortgage servicing rights | 164,879 | 168,365 |
Derivatives | 39,799 | 48,769 |
Financial liabilities: | ||
Deposits, Without stated maturities | 9,686,045 | 9,433,860 |
Deposits, With stated maturities | 1,496,870 | 1,421,974 |
Securities sold under agreements to repurchase and federal funds purchased | 38,130 | 86,945 |
Federal Home Loan Bank advances | 125,000 | 175,000 |
Subordinated debt, net | 127,076 | 126,101 |
Interest payable | 11,834 | 8,648 |
Derivatives | 48,461 | 63,229 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,319,951 | 1,027,052 |
Investment securities | 1,474,064 | 1,474,176 |
Net loans held for investment | 9,090,899 | 9,048,943 |
Loans held for sale, at fair value | 61,987 | 113,240 |
Interest receivable | 44,737 | 45,684 |
Mortgage servicing rights | 164,879 | 168,365 |
Derivatives | 39,799 | 48,769 |
Financial liabilities: | ||
Deposits, Without stated maturities | 9,686,045 | 9,433,860 |
Deposits, With stated maturities | 1,485,091 | 1,422,544 |
Securities sold under agreements to repurchase and federal funds purchased | 38,130 | 86,945 |
Federal Home Loan Bank advances | 125,000 | 175,000 |
Subordinated debt, net | 120,584 | 118,817 |
Interest payable | 11,834 | 8,648 |
Derivatives | 48,461 | 63,229 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 1,319,951 | 1,027,052 |
Investment securities | 0 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Interest receivable | 1,027 | 126 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 9,686,045 | 9,433,860 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 38,130 | 86,945 |
Federal Home Loan Bank advances | 0 | |
Subordinated debt, net | 0 | 0 |
Interest payable | 3,731 | 2,571 |
Derivatives | 0 | 0 |
Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 1,474,064 | 1,474,176 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 52,477 | 82,750 |
Interest receivable | 6,705 | 6,961 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 39,799 | 48,769 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 1,485,091 | 1,422,544 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Federal Home Loan Bank advances | 175,000 | |
Subordinated debt, net | 0 | 0 |
Interest payable | 7,704 | 4,559 |
Derivatives | 48,461 | 63,229 |
Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Net loans held for investment | 9,090,899 | 9,048,943 |
Loans held for sale, at fair value | 9,510 | 30,490 |
Interest receivable | 37,005 | 38,597 |
Mortgage servicing rights | 164,879 | 168,365 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Federal Home Loan Bank advances | 0 | |
Subordinated debt, net | 120,584 | 118,817 |
Interest payable | 399 | 1,518 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Available-for-sale securities: | $ 1,471,005 | $ 1,471,186 |
Equity securities, at fair value | 3,059 | 2,990 |
Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 1,025,388 | 1,034,193 |
Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 17,723 | 17,644 |
Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 270,994 | 264,420 |
U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,823 | 107,680 |
Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 7,149 | 7,187 |
Recurring Basis | ||
Financial assets: | ||
Equity securities, at fair value | 3,059 | 2,990 |
Total securities | 1,474,064 | 1,474,176 |
Total loans held for sale | 61,987 | 113,240 |
Mortgage servicing rights | 164,879 | 168,365 |
Derivatives | 39,799 | 48,769 |
Financial liabilities: | ||
Derivatives | 48,461 | 63,229 |
Recurring Basis | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 40,928 | 40,062 |
Recurring Basis | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 1,025,388 | 1,034,193 |
Recurring Basis | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 17,723 | 17,644 |
Recurring Basis | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 270,994 | 264,420 |
Recurring Basis | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,823 | 107,680 |
Recurring Basis | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 7,149 | 7,187 |
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 |
Total 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) | U.S. 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 | 3,059 | 2,990 |
Total securities | 1,474,064 | 1,474,176 |
Total loans held for sale | 52,477 | 82,750 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 39,799 | 48,769 |
Financial liabilities: | ||
Derivatives | 48,461 | 63,229 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 40,928 | 40,062 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 1,025,388 | 1,034,193 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 17,723 | 17,644 |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 270,994 | 264,420 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,823 | 107,680 |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 7,149 | 7,187 |
Recurring Basis | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Total securities | 0 | 0 |
Total loans held for sale | 9,510 | 30,490 |
Mortgage servicing rights | 164,879 | 168,365 |
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) | U.S. 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 |
Non-recurring Basis | ||
Financial liabilities: | ||
Total collateral dependent loans | 389 | 2,860 |
Non-recurring Basis | Residential real estate | 1-to-4 family mortgage | ||
Financial liabilities: | ||
Total collateral dependent loans | 389 | 366 |
Non-recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial liabilities: | ||
Total collateral dependent loans | 0 | 0 |
Non-recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate | 1-to-4 family mortgage | ||
Financial liabilities: | ||
Total collateral dependent loans | 0 | 0 |
Non-recurring Basis | Significant other observable inputs (level 2) | ||
Financial liabilities: | ||
Total collateral dependent loans | 0 | 0 |
Non-recurring Basis | Significant other observable inputs (level 2) | Residential real estate | 1-to-4 family mortgage | ||
Financial liabilities: | ||
Total collateral dependent loans | 0 | 0 |
Non-recurring Basis | Significant unobservable inputs (level 3) | ||
Financial liabilities: | ||
Total collateral dependent loans | 389 | 2,860 |
Non-recurring Basis | Significant unobservable inputs (level 3) | Residential real estate | 1-to-4 family mortgage | ||
Financial liabilities: | ||
Total collateral dependent loans | $ 389 | $ 366 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Other real estate owned | $ 224 | $ 2,497 |
Total collateral dependent loans | 389 | 2,860 |
Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Total collateral dependent loans | 389 | 366 |
Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Total collateral dependent loans | 2,494 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Total collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Total collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Total collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Total collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Total collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Total collateral dependent loans | 0 | |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 224 | 2,497 |
Total collateral dependent loans | 389 | 2,860 |
Significant unobservable inputs (level 3) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Total collateral dependent loans | $ 389 | 366 |
Significant unobservable inputs (level 3) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Total collateral dependent loans | $ 2,494 |
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 | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total collateral dependent loans | $ 389 | $ 2,860 |
Other real estate owned | 224 | 2,497 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total collateral dependent loans | 389 | 2,860 |
Other real estate owned | $ 224 | $ 2,497 |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Franklin Financial Network, Inc. | Fair Value | Commercial and industrial | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Gain recognized on the change in fair value of portfolio | $ 910 | $ (174) | |
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 | (51) | (16,874) | |
Loans HFS and derivatives | |||
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 | (421) | $ (7,548) | |
Level 3 | Non-recurring Basis | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Amortized costs of collateral dependent loans | $ 558 | $ 3,054 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Loans Held for Sale at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | $ 61,987 | $ 113,240 |
Total loans held for sale | 82,515 | 139,451 |
Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | 61,987 | 113,240 |
Other | Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 52,477 | 82,750 |
GNMA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 20,528 | 26,211 |
Commercial | Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | $ 9,510 | $ 30,490 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Changes in Fair Value Associated with Commercial Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Change in fair value: | ||
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Changes in valuation included in other noninterest income | Changes in valuation included in other noninterest income |
Franklin Financial Network, Inc. | Commercial and industrial | Aggregate Unpaid Principal Balance | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | $ 34,357 | $ 86,762 |
Change in fair value: | ||
Pay-downs and pay-offs | (21,890) | (946) |
Changes in valuation included in other noninterest income | 0 | 0 |
Carrying value at end of period | 12,467 | 85,816 |
Franklin Financial Network, Inc. | Commercial and industrial | Fair Value Discount | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | (3,867) | (7,463) |
Change in fair value: | ||
Pay-downs and pay-offs | 0 | 0 |
Changes in valuation included in other noninterest income | 910 | (174) |
Carrying value at end of period | (2,957) | (7,637) |
Franklin Financial Network, Inc. | Commercial and industrial | Fair Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | 30,490 | 79,299 |
Change in fair value: | ||
Pay-downs and pay-offs | (21,890) | (946) |
Changes in valuation included in other noninterest income | 910 | (174) |
Carrying value at end of period | $ 9,510 | $ 78,179 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
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 | $ 52,477 | $ 82,750 |
Nonaccrual commercial loans held for sale | 9,278 | 9,289 |
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 | 232 | 21,201 |
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 | 51,298 | 81,520 |
Nonaccrual commercial loans held for sale | 12,231 | 12,231 |
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 | 236 | 22,126 |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 1,179 | 1,230 |
Nonaccrual commercial loans held for sale | (2,953) | (2,942) |
Difference | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ (4) | $ (925) |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 3 Months Ended | ||
May 10, 2022 channel | Mar. 31, 2023 USD ($) channel segment | Mar. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of distinct reportable segments | segment | 2 | ||
Number of delivery channels, discontinued | 1 | ||
Number of distinct delivery channels | 2 | ||
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Interest paid | $ | $ 3,931 | $ 5,666 |
Segment Reporting - Direct-to-c
Segment Reporting - Direct-to-consumer Channel Volume (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Rate Lock Commitment | ||
Revenue, Major Customer [Line Items] | ||
Direct-to-consumer | $ 0 | $ 568,092 |
Retail | 375,042 | 741,015 |
Mortgage loan sales | 375,042 | 1,309,107 |
Mortgage | ||
Revenue, Major Customer [Line Items] | ||
Mortgage loan sales | $ 332,307 | $ 1,284,482 |
Segment Reporting - Segment Fin
Segment Reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 103,660 | $ 88,182 | |
Provision for credit losses | (491) | (4,247) | |
Mortgage banking income | 15,493 | 29,278 | |
Change in fair value of mortgage servicing rights, net of hedging | (3,407) | 253 | |
Other noninterest income | 11,263 | 11,861 | |
Depreciation and amortization | 2,228 | 2,036 | |
Amortization of intangibles | 990 | 1,244 | |
Other noninterest expense | 77,222 | 85,992 | |
Income before income taxes | 46,078 | 44,549 | |
Income tax expense | 9,697 | 9,313 | |
Net income attributable to FB Financial Corporation and noncontrolling interest | 36,381 | 35,236 | |
Net income applicable to noncontrolling interest | 0 | 0 | |
Net income applicable to FB Financial Corporation | 36,381 | 35,236 | |
Total assets | 13,101,147 | 12,674,191 | $ 12,847,756 |
Goodwill | 242,561 | 242,561 | $ 242,561 |
Provision for credit losses | 4,997 | (6,129) | |
Provision (reversal) for credit losses on unfunded commitments | (4,506) | 1,882 | |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 103,660 | 88,184 | |
Provision for credit losses | (491) | (4,247) | |
Mortgage banking income | 0 | 0 | |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | |
Other noninterest income | 11,493 | 11,983 | |
Depreciation and amortization | 2,049 | 1,710 | |
Amortization of intangibles | 990 | 1,244 | |
Other noninterest expense | 65,311 | 56,630 | |
Income before income taxes | 46,312 | 44,830 | |
Total assets | 12,530,039 | 11,890,847 | |
Goodwill | 242,561 | 242,561 | |
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 0 | (2) | |
Provision for credit losses | 0 | 0 | |
Mortgage banking income | 15,493 | 29,278 | |
Change in fair value of mortgage servicing rights, net of hedging | (3,407) | 253 | |
Other noninterest income | (230) | (122) | |
Depreciation and amortization | 179 | 326 | |
Amortization of intangibles | 0 | 0 | |
Other noninterest expense | 11,911 | 29,362 | |
Income before income taxes | (234) | (281) | |
Total assets | 571,108 | 783,344 | |
Goodwill | $ 0 | $ 0 |
Minimum Capital Requirements (D
Minimum Capital Requirements (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,557,049 | $ 1,528,344 |
Actual, Ratio | 0.136 | 0.131 |
Minimum Capital adequacy with capital buffer, Amount | $ 1,205,137 | $ 1,225,161 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,331,158 | $ 1,315,386 |
Actual, Ratio | 0.116 | 0.113 |
Minimum Capital adequacy with capital buffer, Amount | $ 975,587 | $ 991,797 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,331,158 | $ 1,315,386 |
Actual, Ratio | 0.104 | 0.105 |
Minimum Capital adequacy with capital buffer, Amount | $ 512,344 | $ 499,648 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,301,158 | $ 1,285,386 |
Actual Ratio | 11.30% | 11% |
Minimum Capital adequacy with capital buffer, Amount | $ 803,424 | $ 816,774 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,524,500 | $ 1,506,543 |
Actual, Ratio | 0.133 | 0.129 |
Minimum Capital adequacy with capital buffer, Amount | $ 1,204,213 | $ 1,222,922 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
To be well capitalized under prompt corrective action provisions, Amount | $ 1,146,869 | $ 1,164,688 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,298,609 | $ 1,293,585 |
Actual, Ratio | 0.113 | 0.111 |
Minimum Capital adequacy with capital buffer, Amount | $ 974,839 | $ 989,985 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
To be well capitalized under prompt corrective action provisions, Amount | $ 917,495 | $ 931,750 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,298,609 | $ 1,293,585 |
Actual, Ratio | 0.102 | 0.104 |
Minimum Capital adequacy with capital buffer, Amount | $ 511,666 | $ 499,194 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
To be well capitalized under prompt corrective action provisions, Amount | $ 639,583 | $ 623,992 |
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 | $ 1,298,609 | $ 1,293,585 |
Actual Ratio | 11.30% | 11.10% |
Minimum Capital adequacy with capital buffer, Amount | $ 802,808 | $ 815,281 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
To be well capitalized under prompt corrective action provisions, Amount | $ 745,465 | $ 757,047 |
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 | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Restricted Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 365,155,000 |
Granted (in shares) | shares | 144,578,000 |
Vested (in shares) | shares | (134,601,000) |
Forfeited (in shares) | shares | (1,428,000) |
Balance at end of period (in shares) | shares | 373,704,000 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 39.02 |
Granted (in dollars per share) | $ / shares | 37.17 |
Vested (in dollars per share) | $ / shares | 34.11 |
Forfeited (in dollars per share) | $ / shares | 43.62 |
Balance at end of period (in dollars per share) | $ / shares | $ 39.05 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 2,285 | $ 2,582 | |
Dividends declared not paid on restricted stock units | 48 | 60 | |
Proceeds from employee payroll withholdings | 305 | 588 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock units vested and released | 4,591 | 3,397 | |
Compensation cost related to nonvested awards | 1,706 | 1,856 | |
Unrecognized compensation cost related to nonvested awards | $ 12,523 | ||
Expected weighted-average period to be recognized | 2 years 10 months 24 days | ||
Dividends declared not paid on restricted stock units | $ 205 | $ 292 | |
RSUs | 2016-LTIP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuable (in shares) | 1,571,098 | ||
RSUs | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 175 | 166 | |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | 579 | $ 726 | |
Unrecognized compensation cost related to nonvested awards | $ 14,182 | ||
Expected weighted-average period to be recognized | 2 years 6 months | ||
Criteria period | 3 years | ||
Maximum unrecognized compensation cost, payout percentage | 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 | ||
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) | 8,214 | 15,152 | |
Number of shares reserved for issuance (in shares) | 2,306,532 |
Stock-Based Compensation - Ch_2
Stock-Based Compensation - Changes in Performance Stock Units (Details) - PSUs | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Performance Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 161,667 |
Granted (in shares) | shares | 86,010 |
Performance adjustment (in shares) | shares | 44,319 |
Vested (in shares) | shares | (90,583) |
Forfeited or expired (in shares) | shares | (1,153) |
Balance at end of period (in shares) | shares | 200,260 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 41.73 |
Granted (in dollars per share) | $ / shares | 37.17 |
Performance adjustment (in dollars per share) | $ / shares | 37.17 |
Vested (in dollars per share) | $ / shares | 36.21 |
Forfeited (in dollars per share) | $ / shares | 44.25 |
Balance at end of period (in dollars per share) | $ / shares | $ 40.98 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares, Activity (Details) - PSUs | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 37.17 |
Criteria period | 3 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting, percentage | 0% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting, percentage | 200% |
Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 43.20 |
PSUs Outstanding (in shares) | shares | 54,922 |
Award vesting, percentage | 0% |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 44.44 |
PSUs Outstanding (in shares) | shares | 59,328 |
Award vesting, percentage | 25% |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 37.17 |
PSUs Outstanding (in shares) | shares | 86,010 |
Award vesting, percentage | 100% |
Tranche Four | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting, percentage | 200% |
Related Party Transactions - Lo
Related Party Transactions - Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2023 | $ 82,559 |
New loans and advances | 23,098 |
Repayments | (2,365) |
Loans outstanding at March 31, 2023 | $ 103,292 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 336,448 | $ 347,660 | |
Preferred Stock | |||
Related Party Transaction [Line Items] | |||
Equity security without readily determinable market value | 10,000 | 10,000 | |
Directors | |||
Related Party Transaction [Line Items] | |||
Operating lease expense | 90 | $ 101 | |
Directors | FBK Aviation, LLC | Aviation Time Sharing Agreements | |||
Related Party Transaction [Line Items] | |||
Income from related party | 7 | $ 11 | |
Unfunded Loan Commitment | Certain Executive Officers, Certain Management and Directors and Their Associates | |||
Related Party Transaction [Line Items] | |||
Unfunded commitments | $ 34,089 | $ 31,564 |