Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 1221 Broadway | |
Entity Address, Address Line Two | Suite 1300 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 564-1212 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,987,655 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 124,772 | $ 146,542 |
Federal funds sold and reverse repurchase agreements | 100,785 | 83,324 |
Interest-bearing deposits in financial institutions | 645,173 | 581,066 |
Cash and cash equivalents | 870,730 | 810,932 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,464,682 | 1,471,973 |
Federal Home Loan Bank stock, at cost | 33,948 | 34,190 |
Loans held for sale (includes $61,828 and $46,618 at fair value, respectively) | 82,704 | 67,847 |
Loans held for investment | 9,288,909 | 9,408,783 |
Less: allowance for credit losses on loans HFI | 151,667 | 150,326 |
Net loans held for investment | 9,137,242 | 9,258,457 |
Premises and equipment, net | 155,271 | 155,731 |
Operating lease right-of-use assets | 51,421 | 54,295 |
Interest receivable | 53,506 | 52,715 |
Mortgage servicing rights, at fair value | 165,674 | 164,249 |
Bank-owned life insurance | 76,574 | 76,143 |
Other real estate owned, net | 3,613 | 3,192 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 7,920 | 8,709 |
Other assets | 202,474 | 203,409 |
Total assets | 12,548,320 | 12,604,403 |
Deposits | ||
Noninterest-bearing | 2,182,121 | 2,218,382 |
Interest-bearing checking | 2,421,487 | 2,504,421 |
Money market and savings | 4,298,938 | 4,204,851 |
Customer time deposits | 1,471,190 | 1,469,811 |
Brokered and internet time deposits | 131,192 | 150,822 |
Total deposits | 10,504,928 | 10,548,287 |
Borrowings | 360,821 | 390,964 |
Operating lease liabilities | 64,562 | 67,643 |
Accrued expenses and other liabilities | 138,390 | 142,622 |
Total liabilities | 11,068,701 | 11,149,516 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 46,897,378 and 46,848,934 shares issued and outstanding, respectively | 46,897 | 46,849 |
Additional paid-in capital | 866,803 | 864,258 |
Retained earnings | 698,310 | 678,412 |
Accumulated other comprehensive loss, net | (132,484) | (134,725) |
Total FB Financial Corporation common shareholders' equity | 1,479,526 | 1,454,794 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,479,619 | 1,454,887 |
Total liabilities and shareholders' equity | $ 12,548,320 | $ 12,604,403 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value of loan held for sale | $ 82,704 | $ 67,847 |
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) | 46,897,378 | 46,848,934 |
Common stock, shares outstanding (in shares) | 46,897,378 | 46,848,934 |
Fair Value | ||
Fair value of loan held for sale | $ 61,828 | $ 46,618 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Interest and fees on loans | $ 155,606 | $ 140,356 |
Interest on investment securities | ||
Taxable | 9,105 | 6,570 |
Tax-exempt | 1,442 | 1,804 |
Other | 9,975 | 10,750 |
Total interest income | 176,128 | 159,480 |
Interest expense: | ||
Deposits | 72,625 | 52,863 |
Borrowings | 4,013 | 2,957 |
Total interest expense | 76,638 | 55,820 |
Net interest income | 99,490 | 103,660 |
Provision for credit losses on loans HFI | 1,852 | 4,997 |
Reversal of credit losses on unfunded commitments | (1,070) | (4,506) |
Net interest income after provision for credit losses | 98,708 | 103,169 |
Noninterest income: | ||
(Loss) gain from investment securities, net | (16,213) | 69 |
Gain (loss) on sales or write-downs of other real estate owned and other assets | 565 | (183) |
Other income | 1,710 | 3,550 |
Total noninterest income | 7,962 | 23,349 |
Noninterest expenses: | ||
Salaries, commissions and employee benefits | 44,618 | 48,788 |
Occupancy and equipment expense | 6,614 | 5,909 |
Data processing | 2,408 | 2,113 |
Legal and professional fees | 1,919 | 3,108 |
Advertising | 1,171 | 2,133 |
Amortization of core deposit and other intangibles | 789 | 990 |
Other expense | 14,901 | 17,399 |
Total noninterest expense | 72,420 | 80,440 |
Income before income taxes | 34,250 | 46,078 |
Income tax expense | 6,300 | 9,697 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 27,950 | 36,381 |
Net income applicable to noncontrolling interest | 0 | 0 |
Net income applicable to FB Financial Corporation | $ 27,950 | $ 36,381 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.60 | $ 0.78 |
Diluted (in dollars per share) | $ 0.59 | $ 0.78 |
Mortgage banking income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | $ 12,585 | $ 12,086 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | 3,141 | 3,053 |
Investment services and trust income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | 3,230 | 2,378 |
ATM and interchange fees | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | $ 2,944 | $ 2,396 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 27,950 | $ 36,381 |
Other comprehensive income, net of tax: | ||
Net unrealized (loss) gain in available-for-sale securities, net of tax (benefit) expense of $(3,432) and $7,059 | (9,573) | 20,064 |
Reclassification adjustment for loss on sale of securities included in net income, net of tax benefit of $4,225 and $— | 11,988 | 0 |
Net unrealized loss in hedging activities, net of tax benefit of $62 and $70 | (174) | (197) |
Total other comprehensive income, net of tax | 2,241 | 19,867 |
Comprehensive income applicable to FB Financial Corporation and noncontrolling interest | 30,191 | 56,248 |
Comprehensive income applicable to noncontrolling interest | 0 | 0 |
Comprehensive income applicable to FB Financial Corporation | $ 30,191 | $ 56,248 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net tax (benefits) expenses on net change in unrealized gain (loss) on available-for-sale securities | $ (3,432) | $ 7,059 |
Net tax expenses (benefits) on reclassification adjustment for gain on sale of securities included in net income | 4,225 | 0 |
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | $ (62) | $ (70) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - 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 loss, net | Noncontrolling interest |
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 | ||||||||||||
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 and performance-based restricted stock units vested, net of taxes | $ (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 | ||||||||
Beginning balance at Dec. 31, 2023 | 1,454,887 | 1,454,794 | 46,849 | 864,258 | 678,412 | (134,725) | 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 27,950 | 27,950 | 27,950 | ||||||||||||
Other comprehensive income (loss), net of taxes | 2,241 | 2,241 | 2,241 | ||||||||||||
Stock based compensation expense | 2,820 | 2,820 | 1 | 2,819 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | $ (281) | $ (345) | $ (281) | $ (345) | $ 11 | $ 25 | $ (292) | $ (370) | |||||||
Shares issued under employee stock purchase program | 399 | 399 | 11 | 388 | |||||||||||
Dividends declared | (8,052) | (8,052) | (8,052) | ||||||||||||
Ending balance at Mar. 31, 2024 | $ 1,479,619 | $ 1,479,526 | $ 46,897 | $ 866,803 | $ 698,310 | $ (132,484) | $ 93 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.17 | $ 0.15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income attributable to FB Financial Corporation and noncontrolling interest | $ 27,950 | $ 36,381 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of fixed assets and software | 2,841 | 2,228 |
Amortization of core deposit and other intangibles | 789 | 990 |
Amortization of issuance costs on subordinated debt | 96 | 97 |
Capitalization of mortgage servicing rights | (1,131) | (1,788) |
Net change in fair value of mortgage servicing rights | (294) | 5,274 |
Stock-based compensation expense | 2,820 | 2,285 |
Provision for credit losses on loans HFI | 1,852 | 4,997 |
Reversal of credit losses on unfunded commitments | (1,070) | (4,506) |
Provision for mortgage loan repurchases | 50 | (250) |
Accretion of discounts and premiums on acquired loans, net | (387) | (319) |
Amortization of premiums and discounts on securities, net | 1,356 | 1,382 |
Loss (gain) from investment securities, net | 16,213 | (69) |
Originations of loans held for sale | (258,352) | (295,760) |
Proceeds from sale of loans held for sale | 251,548 | 340,108 |
Gain on sale and change in fair value of loans held for sale | (8,279) | (8,635) |
Net (gain) loss on write-downs of other real estate owned and other assets | (565) | 183 |
Provision for deferred income taxes | 207 | 1,396 |
Earnings on bank-owned life insurance | (431) | (605) |
Changes in: | ||
Operating lease assets and liabilities, net | (207) | 580 |
Other assets and interest receivable | (665) | 62,512 |
Accrued expenses and other liabilities | 1,927 | (48,099) |
Net cash provided by operating activities | 36,268 | 98,382 |
Activity in available-for-sale securities: | ||
Sales | 207,882 | 0 |
Maturities, prepayments and calls | 66,627 | 26,827 |
Purchases | (281,579) | (660) |
Net change in loans | 117,904 | (52,540) |
Proceeds from sales of FHLB stock, net | 242 | 15,272 |
Purchases of premises and equipment | (1,620) | (9,450) |
Proceeds from the sale of premises and equipment | 137 | 0 |
Proceeds from the sale of other real estate owned | 389 | 2,031 |
Proceeds from the sale of other assets | 161 | 0 |
Proceeds from bank-owned life insurance | 0 | 236 |
Net cash provided by (used in) investing activities | 110,143 | (18,284) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (47,856) | 325,965 |
Net decrease in securities sold under agreements to repurchase and federal funds purchased | (30,535) | (48,815) |
Net decrease in short-term FHLB advances and Bank Term Funding Program | 0 | (50,000) |
Share based compensation withholding payments | (626) | (2,597) |
Net proceeds from sale of common stock under employee stock purchase program | 399 | 321 |
Repurchase of common stock | 0 | (4,944) |
Dividends paid on common stock | (7,965) | (6,994) |
Dividend equivalent payments made upon vesting of equity compensation | (30) | (135) |
Net cash (used in) provided by financing activities | (86,613) | 212,801 |
Net change in cash and cash equivalents | 59,798 | 292,899 |
Cash and cash equivalents at beginning of the period | 810,932 | 1,027,052 |
Cash and cash equivalents at end of the period | 870,730 | 1,319,951 |
Supplemental cash flow information: | ||
Interest paid | 74,943 | 52,634 |
Taxes paid (refunded), net | 277 | (904) |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate owned | 753 | 235 |
Transfers from loans to other assets | 1,031 | 0 |
Transfers from loans to loans held for sale | 167 | 7,126 |
Transfers from loans held for sale to loans | 40 | 776 |
Loans provided for sales of other assets | 65 | 0 |
Decrease in rebooked GNMA loans under optional repurchase program | (353) | (5,683) |
Trade date payable - securities | 0 | 245 |
Dividends declared not paid on restricted stock units | 87 | 48 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 0 | $ 3,375 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 bank, FirstBank (the "Bank") and its subsidiaries. As of March 31, 2024, the Bank had 76 full-service branches throughout Tennessee, Alabama, Kentucky and North Georgia, and a mortgage business with office locations across the Southeast, which primarily originates loans to be sold to third party private investors or government sponsored agencies 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 cause the Company's financial condition and results of operations to vary 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 attributable 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 attributable to common shareholders by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalent rights and are considered participating securities for the purposes of computing EPS. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. 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, 2024 2023 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 27,950 $ 36,381 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 27,950 $ 36,381 Weighted average basic shares outstanding 46,874,882 46,679,618 Basic earnings per common share $ 0.60 $ 0.78 Diluted earnings per common share: Earnings available to common shareholders $ 27,950 $ 36,381 Weighted average basic shares outstanding 46,874,882 46,679,618 Weighted average diluted shares contingently issuable (1) 123,991 85,536 Weighted average diluted shares outstanding 46,998,873 46,765,154 Diluted earnings per common share $ 0.59 $ 0.78 (1) Excludes 2,949 and 159,946 restricted stock units outstanding considered to be antidilutive for the three months ended March 31, 2024 and 2023, respectively. Recently adopted accounting standards: In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” The FASB issued this update to clarify the guidance in ASC 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 Company adopted this update effective January 1, 2024. The adoption did not have an impact on the Company's consolidated financial statements or related disclosures. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” as part of the Post-Implementation Review process of ASC 842, “Leases,” 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 Company adopted this standard on January 1, 2024 on a prospective basis. The adoption of this standard did not have a material impact on the Company's consolidated financial statements or 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 Company adopted this standard effective January 1, 2024. The adoption of this accounting pronouncement did not have an impact on the Company's historical consolidated financial statements but could influence the Company's decisions with respect to investments in certain tax credits prospectively. Newly issued not yet effective accounting standards: In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker, a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the chief operating decision maker when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280, “Segment Reporting,” to be included in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is evaluating the impact this will have on the Company's consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-08, “Intangibles – Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.” This update requires entities to present crypto assets measured at fair value separately from other intangible assets on the balance sheet and reflect changes from remeasurement in the net income. Additionally, an entity that receives crypto assets as noncash consideration in the ordinary course of business and converts them nearly immediately into cash is required to classify those cash receipts as cash flows from operating activities. Lastly, the update requires entities to provide interim and annual disclosures about the types of crypto assets they hold and any changes in their holdings of crypto assets. While the Company does not currently hold or facilitate transactions with crypto assets, the Company is evaluating the potential future financial statement and disclosure impact from adopting this guidance when it becomes applicable based on the Company's crypto asset activities. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This ASU requires disclosures of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the effect that ASU 2023-09 will have on its disclosures. Subsequent events |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2024 | |
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 AFS debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss at March 31, 2024 and December 31, 2023: March 31, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 416,953 $ 145 $ (1,171) $ — $ 415,927 Mortgage-backed securities - residential 984,473 — (158,259) — 826,214 Mortgage-backed securities - commercial 17,899 — (1,284) — 16,615 Municipal securities 194,470 45 (22,843) — 171,672 U.S. Treasury securities 30,985 — (128) — 30,857 Corporate securities 3,500 — (103) — 3,397 Total $ 1,648,280 $ 190 $ (183,788) $ — $ 1,464,682 December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 204,663 $ 470 $ (1,177) $ — $ 203,956 Mortgage-backed securities - residential 1,057,389 — (160,418) — 896,971 Mortgage-backed securities - commercial 18,186 — (1,225) — 16,961 Municipal securities 263,312 370 (21,419) — 242,263 U.S. Treasury securities 111,729 — (3,233) — 108,496 Corporate securities 3,500 — (174) — 3,326 Total $ 1,658,779 $ 840 $ (187,646) $ — $ 1,471,973 The components of amortized cost for AFS 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, 2024 and December 31, 2023, total accrued interest receivable on AFS debt securities was $5,409 and $7,212, respectively. Securities pledged at March 31, 2024 and December 31, 2023 had carrying amounts of $949,958 and $929,546, respectively, and were pledged to secure a Federal Reserve Bank line of credit, Bank Term Funding Program borrowings, public deposits and repurchase agreements. There were no holdings of AFS 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. At March 31, 2024 and December 31, 2023, there were no trade date receivables nor payables that related to sales or purchases settled after period end. The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2024 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 203,870 $ (484) $ 7,251 $ (687) $ 211,121 $ (1,171) Mortgage-backed securities - residential — — 776,208 (158,259) 776,208 (158,259) Mortgage-backed securities - commercial — — 16,615 (1,284) 16,615 (1,284) Municipal securities 9,131 (41) 155,959 (22,802) 165,090 (22,843) U.S. Treasury securities — — 30,857 (128) 30,857 (128) Corporate securities — — 3,397 (103) 3,397 (103) Total $ 213,001 $ (525) $ 990,287 $ (183,263) $ 1,203,288 $ (183,788) December 31, 2023 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 25,923 $ (21) $ 14,040 $ (1,156) $ 39,963 $ (1,177) Mortgage-backed securities - residential — — 896,971 (160,418) 896,971 (160,418) Mortgage-backed securities - commercial — — 16,961 (1,225) 16,961 (1,225) Municipal securities 14,480 (148) 188,669 (21,271) 203,149 (21,419) U.S. Treasury securities — — 108,496 (3,233) 108,496 (3,233) Corporate securities — — 3,326 (174) 3,326 (174) Total $ 40,403 $ (169) $ 1,228,463 $ (187,477) $ 1,268,866 $ (187,646) As of March 31, 2024 and December 31, 2023, the Company’s AFS debt securities portfolio consisted of 340 and 439 securities, 316 and 370 of which were in an unrealized loss position, respectively. 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 credit losses associated with these investments. Municipal securities with market values below amortized cost at March 31, 2024 were reviewed for material credit events and/or rating downgrades with individual credit reviews performed. The issuers of these AFS 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, 2024 and December 31, 2023, it was determined that all AFS debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Further, it is not likely that the Company will be required to sell these securities before recovery of their amortized cost basis. Therefore, there was no allowance for credit losses recognized on AFS debt securities as of March 31, 2024 or December 31, 2023. Periodically, AFS debt securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or preparing for anticipated changes in market interest rates. The amortized cost and fair value of AFS debt securities by contractual maturity as of March 31, 2024 and December 31, 2023 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, December 31, 2024 2023 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 34,073 $ 33,910 $ 64,776 $ 64,279 Due in one to five years 10,851 10,080 75,996 71,801 Due in five to ten years 40,939 39,932 51,162 49,630 Due in over ten years 560,045 537,931 391,270 372,331 645,908 621,853 583,204 558,041 Mortgage-backed securities - residential 984,473 826,214 1,057,389 896,971 Mortgage-backed securities - commercial 17,899 16,615 18,186 16,961 Total AFS debt securities $ 1,648,280 $ 1,464,682 $ 1,658,779 $ 1,471,973 Sales and other dispositions of AFS debt securities were as follows: Three Months Ended March 31, 2024 2023 Proceeds from sales $ 207,882 $ — Proceeds from maturities, prepayments and calls 66,627 26,827 Gross realized gains 90 — Gross realized losses 16,303 — Equity Securities The Company had equity securities without readily determinable market value included in other assets on the consolidated balance sheets with carrying amounts of $25,589 and $25,191 at March 31, 2024 and December 31, 2023, respectively. Additionally, the Company had $33,948 and $34,190 of FHLB stock carried at cost at March 31, 2024 and December 31, 2023, respectively, included separately from the other equity securities discussed above. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans HFI | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses on Loans HFI | Loans and allowance for credit losses on loans HFI Loans outstanding as of March 31, 2024 and December 31, 2023, by class of financing receivable are as follows: March 31, December 31, 2024 2023 Commercial and industrial $ 1,621,611 $ 1,720,733 Construction 1,268,883 1,397,313 Residential real estate: 1-to-4 family mortgage 1,577,824 1,568,552 Residential line of credit 549,306 530,912 Multi-family mortgage 615,081 603,804 Commercial real estate: Owner-occupied 1,236,007 1,232,071 Non-owner occupied 1,991,526 1,943,525 Consumer and other 428,671 411,873 Gross loans 9,288,909 9,408,783 Less: Allowance for credit losses on loans HFI (151,667) (150,326) Net loans $ 9,137,242 $ 9,258,457 As of March 31, 2024 and December 31, 2023, $950,787 and $1,030,016, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,563,819 and $1,984,007, respectively, of qualifying commercial mortgage loans were pledged to the FHLB system securing advances against the Bank’s line of credit. Additionally, as of March 31, 2024 and December 31, 2023, qualifying commercial and industrial, construction and consumer loans, of $2,982,391 and $3,107,495, respectively, were pledged to the Federal Reserve under the Borrower-in-Custody program. The amortized cost of loans HFI 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, 2024 and December 31, 2023, accrued interest receivable on loans HFI amounted to $45,840 and $43,776, respectively. 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 weaknesses 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. Doubtful loans 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, 2024 and December 31, 2023 and the gross charge-offs for the three months ended March 31, 2024 and the year ended December 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. As of and for the three months ended March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 16,449 $ 202,050 $ 237,139 $ 72,725 $ 36,876 $ 129,057 $ 864,065 $ 1,558,361 Special Mention — 3,675 17,572 2,913 — 247 4,521 28,928 Classified — 457 4,328 3,017 2,987 6,350 17,183 34,322 Total 16,449 206,182 259,039 78,655 39,863 135,654 885,769 1,621,611 Current-period gross — — — 14 — 7 22 43 Construction Pass 39,360 193,203 551,909 124,878 36,531 86,713 187,955 1,220,549 Special Mention — 711 4,689 2,508 — 657 12,000 20,565 Classified — — 3,986 2,590 6,877 — 14,316 27,769 Total 39,360 193,914 560,584 129,976 43,408 87,370 214,271 1,268,883 Current-period gross — — — — — — 92 92 Residential real estate: Multi-family mortgage Pass — 29,861 193,591 244,770 54,744 68,104 22,953 614,023 Special Mention — — — — — — — — Classified — — — — — 1,058 — 1,058 Total — 29,861 193,591 244,770 54,744 69,162 22,953 615,081 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 24,636 112,168 253,377 231,354 113,481 428,182 53,516 1,216,714 Special Mention — — 1,283 1,811 — 2,547 — 5,641 Classified — — 6,281 16 65 6,228 1,062 13,652 Total 24,636 112,168 260,941 233,181 113,546 436,957 54,578 1,236,007 Current-period gross — — — — — — — — Non-owner occupied Pass 3,755 45,516 533,649 468,553 122,699 750,943 43,090 1,968,205 Special Mention — — — 3,966 — 83 — 4,049 Classified — — — 998 — 18,274 — 19,272 Total 3,755 45,516 533,649 473,517 122,699 769,300 43,090 1,991,526 Current-period gross — — — — — — — — Total commercial loan types Pass 84,200 582,798 1,769,665 1,142,280 364,331 1,462,999 1,171,579 6,577,852 Special Mention — 4,386 23,544 11,198 — 3,534 16,521 59,183 Classified — 457 14,595 6,621 9,929 31,910 32,561 96,073 Total $ 84,200 $ 587,641 $ 1,807,804 $ 1,160,099 $ 374,260 $ 1,498,443 $ 1,220,661 $ 6,733,108 Current-period gross $ — $ — $ — $ 14 $ — $ 7 $ 114 $ 135 As of and for the year ended 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 225,734 $ 255,921 $ 151,492 $ 39,897 $ 70,302 $ 73,415 $ 839,918 $ 1,656,679 Special Mention — 17,947 3,083 — 151 108 7,549 28,838 Classified 457 4,253 3,075 3,027 254 6,129 18,021 35,216 Total 226,191 278,121 157,650 42,924 70,707 79,652 865,488 1,720,733 Current-period gross 14 7 201 22 — 87 131 462 Construction Pass 179,929 677,387 148,312 46,697 39,140 49,954 208,491 1,349,910 Special Mention 1 4,659 2,943 1,202 — 690 12,000 21,495 Classified — 2,349 1,484 6,620 — — 15,455 25,908 Total 179,930 684,395 152,739 54,519 39,140 50,644 235,946 1,397,313 Current-period gross — — — — — — — — Residential real estate: Multi-family mortgage Pass 29,982 151,495 223,889 92,745 29,933 43,479 31,209 602,732 Special Mention — — — — — — — — Classified — — — — — 1,072 — 1,072 Total 29,982 151,495 223,889 92,745 29,933 44,551 31,209 603,804 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 118,030 261,196 231,241 115,397 151,146 281,253 53,970 1,212,233 Special Mention — 1,297 1,827 — 154 2,617 — 5,895 Classified — 6,305 16 — 760 5,789 1,073 13,943 Total 118,030 268,798 233,084 115,397 152,060 289,659 55,043 1,232,071 Current-period gross — — 144 — — — — 144 Non-owner occupied Pass 47,026 474,560 478,878 117,429 178,448 580,168 43,577 1,920,086 Special Mention — — 3,975 — — 10,435 — 14,410 Classified — — 1,001 — 381 7,647 — 9,029 Total 47,026 474,560 483,854 117,429 178,829 598,250 43,577 1,943,525 Current-period gross — — — — — — — — Total commercial loan types Pass 600,701 1,820,559 1,233,812 412,165 468,969 1,028,269 1,177,165 6,741,640 Special Mention 1 23,903 11,828 1,202 305 13,850 19,549 70,638 Classified 457 12,907 5,576 9,647 1,395 20,637 34,549 85,168 Total $ 601,159 $ 1,857,369 $ 1,251,216 $ 423,014 $ 470,669 $ 1,062,756 $ 1,231,263 $ 6,897,446 Current-period gross 14 7 345 22 — 87 131 606 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, 2024 and December 31, 2023 and the gross charge-offs for the three months ended March 31, 2024 and the year ended December 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. As of and for the three months ended March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 43,291 $ 187,203 $ 492,643 $ 393,806 $ 143,618 $ 298,828 $ — $ 1,559,389 Nonperforming — 325 5,027 3,237 4,421 5,425 — 18,435 Total 43,291 187,528 497,670 397,043 148,039 304,253 — 1,577,824 Current-period gross — — — — — — — — Residential line of credit Performing — — — — — — 547,097 547,097 Nonperforming — — — — — — 2,209 2,209 Total — — — — — — 549,306 549,306 Current-period gross — — — — — — 20 20 Consumer and other Performing 25,887 109,013 87,312 42,673 33,415 114,071 5,849 418,220 Nonperforming — 561 909 2,293 1,849 4,839 — 10,451 Total 25,887 109,574 88,221 44,966 35,264 118,910 5,849 428,671 Current-period gross 155 344 31 96 36 110 — 772 Total consumer type loans Performing 69,178 296,216 579,955 436,479 177,033 412,899 552,946 2,524,706 Nonperforming — 886 5,936 5,530 6,270 10,264 2,209 31,095 Total $ 69,178 $ 297,102 $ 585,891 $ 442,009 $ 183,303 $ 423,163 $ 555,155 $ 2,555,801 Current-period gross $ 155 $ 344 $ 31 $ 96 $ 36 $ 110 $ 20 $ 792 As of and for the year ended 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 198,537 $ 500,628 $ 399,338 $ 145,484 $ 81,905 $ 226,587 $ — $ 1,552,479 Nonperforming 76 2,565 4,026 3,846 690 4,870 — 16,073 Total 198,613 503,193 403,364 149,330 82,595 231,457 — 1,568,552 Prior-period gross — 18 — 4 — 24 — 46 Residential line of credit Performing — — — — — — 528,439 528,439 Nonperforming — — — — — — 2,473 2,473 Total — — — — — — 530,912 530,912 Prior-period gross — — — — — — — — Consumer and other Performing 104,399 91,557 45,187 34,928 24,040 93,833 6,890 400,834 Nonperforming 528 1,025 2,562 1,819 1,264 3,841 — 11,039 Total 104,927 92,582 47,749 36,747 25,304 97,674 6,890 411,873 Prior-period gross 1,463 564 139 201 110 372 2 2,851 Total consumer type loans Performing 302,936 592,185 444,525 180,412 105,945 320,420 535,329 2,481,752 Nonperforming 604 3,590 6,588 5,665 1,954 8,711 2,473 29,585 Total $ 303,540 $ 595,775 $ 451,113 $ 186,077 $ 107,899 $ 329,131 $ 537,802 $ 2,511,337 Prior-period gross 1,463 582 139 205 110 396 2 2,897 Nonaccrual and Past Due Loans Nonperforming loans include loans that are no longer accruing interest (nonaccrual 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, 2024 and December 31, 2023: March 31, 2024 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 1,606 $ — $ 24,643 $ 1,595,362 $ 1,621,611 Construction 1,474 585 5,077 1,261,747 1,268,883 Residential real estate: 1-to-4 family mortgage 17,881 9,610 8,825 1,541,508 1,577,824 Residential line of credit 1,717 1,097 1,112 545,380 549,306 Multi-family mortgage — — 31 615,050 615,081 Commercial real estate: Owner occupied 465 — 3,069 1,232,473 1,236,007 Non-owner occupied 3,631 — 3,250 1,984,645 1,991,526 Consumer and other 10,699 1,566 8,885 407,521 428,671 Total $ 37,473 $ 12,858 $ 54,892 $ 9,183,686 $ 9,288,909 December 31, 2023 30-89 days 90 days or Nonaccrual Loans current on payments and accruing interest Total Commercial and industrial $ 732 $ — $ 21,730 $ 1,698,271 $ 1,720,733 Construction 6,579 165 2,872 1,387,697 1,397,313 Residential real estate: 1-to-4 family mortgage 21,768 9,355 6,718 1,530,711 1,568,552 Residential line of credit 2,464 1,337 1,136 525,975 530,912 Multi-family mortgage — — 32 603,772 603,804 Commercial real estate: Owner occupied 480 — 3,188 1,228,403 1,232,071 Non-owner occupied 4,059 — 3,351 1,936,115 1,943,525 Consumer and other 10,961 1,836 9,203 389,873 411,873 Total $ 47,043 $ 12,693 $ 48,230 $ 9,300,817 $ 9,408,783 The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of March 31, 2024 and December 31, 2023 by class of financing receivable. March 31, 2024 Nonaccrual Nonaccrual Related Commercial and industrial $ 14,465 $ 10,178 $ 3,946 Construction 3,152 1,925 293 Residential real estate: 1-to-4 family mortgage 3,336 5,489 167 Residential line of credit 812 300 5 Multi-family mortgage — 31 1 Commercial real estate: Owner occupied 1,935 1,134 145 Non-owner occupied 3,219 31 1 Consumer and other — 8,885 463 Total $ 26,919 $ 27,973 $ 5,021 December 31, 2023 Nonaccrual Nonaccrual Related Commercial and industrial $ 3,678 $ 18,052 $ 5,011 Construction 2,267 605 59 Residential real estate: 1-to-4 family mortgage 1,444 5,274 103 Residential line of credit 685 451 8 Multi-family mortgage — 32 1 Commercial real estate: Owner occupied 2,920 268 15 Non-owner occupied 3,316 35 1 Consumer and other — 9,203 498 Total $ 14,310 $ 33,920 $ 5,696 The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Commercial and industrial $ 224 $ 20 Construction 61 6 Residential real estate: 1-to-4 family mortgage — 79 Residential line of credit 16 24 Multi-family mortgage — 1 Commercial real estate: Owner occupied 49 58 Non-owner occupied 35 82 Consumer and other — 173 Total $ 385 $ 443 Accrued interest receivable written off as an adjustment to interest income amounted to $201 and $181 for the three months ended March 31, 2024 and 2023, respectively. Loan Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company may make certain modifications of loans to borrowers experiencing financial difficulty. These modifications may be in the form of an interest rate reduction, a term extension, principal forgiveness, payment deferral 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 charged off against the allowance for credit losses on loans HFI. 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. The following table presents the amortized cost of FDM loans as of March 31, 2024 by class of financing receivable and type of concession granted that were modified during the three months ended March 31, 2024. Term extension Payment deferral and term extension Total % of total class of financing receivables Construction $ — $ 14,316 $ 14,316 1.1 % Commercial real estate: Non-owner occupied 10,351 — 10,351 0.5 % Consumer and other 22 — 22 — % Total $ 10,373 $ 14,316 $ 24,689 0.3 % No financing receivables that were modified in the prior twelve months had a payment default during the three months ended March 31, 2024. Defaults are defined as the earlier of the FDM being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments. As of March 31, 2024, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as a FDM. The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficultly: Three Months Ended Weighted average term extension Weighted average payment deferral Construction 6 3 Commercial real estate: Non-owner occupied 6 — Consumer and other 42 — 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. The table below depicts the performance of loans held for investment as of March 31, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months. March 31, 2024 30-89 days 90 days or Nonaccrual loans (1) Loans current Total Commercial and industrial $ — $ — $ 179 $ — $ 179 Construction — — — 14,316 14,316 Residential real estate: 1-to-4 family mortgage — — 65 — 65 Commercial real estate: Non-owner occupied — — — 10,351 10,351 Consumer and other — — — 22 22 Total $ — $ — $ 244 $ 24,689 $ 24,933 1) Loans were on non-accrual when modified and subsequently classified as FDM. 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, 2024 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ 86 $ 363 $ 23,660 $ 24,109 $ 3,883 Construction 24,744 1,653 — 26,397 265 Residential real estate: 1-to-4 family mortgage 3,893 — — 3,893 58 Residential line of credit 1,384 — — 1,384 12 Multi-family mortgage — — — — — Commercial real estate: Owner occupied 1,969 7,478 9,447 131 Non-owner occupied 14,731 — — 14,731 — Total $ 46,807 $ 9,494 $ 23,660 $ 79,961 $ 4,349 December 31, 2023 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ — $ 363 $ 20,599 $ 20,962 $ 4,946 Construction 8,224 — — 8,224 30 Residential real estate: 1-to-4 family mortgage 5,317 — — 5,317 129 Residential line of credit 1,245 — — 1,245 10 Commercial real estate: Owner occupied 1,975 1,160 — 3,135 — Non-owner occupied 3,316 — — 3,316 — Consumer and other 112 — — 112 21 Total $ 20,189 $ 1,523 $ 20,599 $ 42,311 $ 5,136 Allowance for Credit Losses on Loans HFI T he Company performed evaluations within its established qualitative framework, assessing the impact of the current economic outlook, including: continued actions taken by the Federal Reserve with regard to monetary policy, interest rates and the potential impact of those actions, potential impact of persistent high inflation on economic growth, potential negative economic forecasts, and other considerations. The increase in the allowance for credit losses on loans HFI as of March 31, 2024 compared with December 31, 2023 is primarily the result of expected deterioration in the CRE portfolio which was adjusted upward qualitatively to address risks not captured by the model. These adjustments factor in the possibility that the economy may be nearing a recession, reflected through deterioration in asset quality projected over life of the loan portfolio. As of March 31, 2024, all CRE asset classes are expected to be negatively impacted by slowing demand coupled with refinancing risk in the current rate environment. The following tables provide the changes in the allowance for credit losses on loans HFI by class of financing receivable for the three months ended March 31, 2024 and 2023: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2024 Beginning balance - December 31, 2023 $ 19,599 $ 35,372 $ 26,505 $ 9,468 $ 8,842 $ 10,653 $ 22,965 $ 16,922 $ 150,326 (Reversal of) provision for (2,298) 2,028 (433) 470 131 56 984 914 1,852 Recoveries of loans previously charged-off 14 — 56 — — 40 — 306 416 Loans charged off (43) (92) — (20) — — — (772) (927) Ending balance - March 31, 2024 $ 17,272 $ 37,308 $ 26,128 $ 9,918 $ 8,973 $ 10,749 $ 23,949 $ 17,370 $ 151,667 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 (Reversal of) provision for (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 - $ 11,117 $ 41,025 $ 27,213 $ 9,034 $ 6,619 $ 7,952 $ 21,868 $ 13,981 $ 138,809 |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 3,192 $ 5,794 Transfers from loans 753 235 Proceeds from sale of other real estate owned (389) (2,031) Gain on sale of other real estate owned 57 87 Balance at end of period $ 3,613 $ 4,085 Included within the other real estate owned balance above, foreclosed residential real estate properties totaled $2,344 and $2,414 as of March 31, 2024 and December 31, 2023, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases As of March 31, 2024, the Company was the lessee in 48 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Many leases include options to renew, with 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, 2024 and December 31, 2023: March 31, December 31, Classification 2024 2023 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 51,421 $ 54,295 Finance leases Premises and equipment, net 1,228 1,256 Total right-of-use assets $ 52,649 $ 55,551 Lease liabilities: Operating leases Operating lease liabilities $ 64,562 $ 67,643 Finance leases Borrowings 1,302 1,326 Total lease liabilities $ 65,864 $ 68,969 Weighted average remaining lease term (in years) - 11.5 11.6 Weighted average remaining lease term (in years) - 11.1 11.4 Weighted average discount rate - operating 3.40 % 3.39 % 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 2024 2023 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,927 $ 1,815 Short-term lease cost Occupancy and equipment 97 121 Variable lease cost Occupancy and equipment 336 298 Gain on lease modifications and Occupancy and equipment — (72) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 6 6 Amortization of right-of-use asset Occupancy and equipment 28 28 Sublease income Occupancy and equipment (172) (281) Total lease cost $ 2,222 $ 1,915 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 lease liabilities as of March 31, 2024 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2025 $ 6,358 $ 90 March 31, 2026 8,454 121 March 31, 2027 8,314 123 March 31, 2028 7,864 125 March 31, 2029 6,939 127 Thereafter 44,094 850 Total undiscounted future minimum lease payments 82,023 1,436 Less: imputed interest (17,461) (134) Lease liabilities $ 64,562 $ 1,302 |
Leases | Leases As of March 31, 2024, the Company was the lessee in 48 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Many leases include options to renew, with 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, 2024 and December 31, 2023: March 31, December 31, Classification 2024 2023 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 51,421 $ 54,295 Finance leases Premises and equipment, net 1,228 1,256 Total right-of-use assets $ 52,649 $ 55,551 Lease liabilities: Operating leases Operating lease liabilities $ 64,562 $ 67,643 Finance leases Borrowings 1,302 1,326 Total lease liabilities $ 65,864 $ 68,969 Weighted average remaining lease term (in years) - 11.5 11.6 Weighted average remaining lease term (in years) - 11.1 11.4 Weighted average discount rate - operating 3.40 % 3.39 % 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 2024 2023 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,927 $ 1,815 Short-term lease cost Occupancy and equipment 97 121 Variable lease cost Occupancy and equipment 336 298 Gain on lease modifications and Occupancy and equipment — (72) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 6 6 Amortization of right-of-use asset Occupancy and equipment 28 28 Sublease income Occupancy and equipment (172) (281) Total lease cost $ 2,222 $ 1,915 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 lease liabilities as of March 31, 2024 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2025 $ 6,358 $ 90 March 31, 2026 8,454 121 March 31, 2027 8,314 123 March 31, 2028 7,864 125 March 31, 2029 6,939 127 Thereafter 44,094 850 Total undiscounted future minimum lease payments 82,023 1,436 Less: imputed interest (17,461) (134) Lease liabilities $ 64,562 $ 1,302 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Three Months Ended March 31, 2024 2023 Carrying value at beginning of period $ 164,249 $ 168,365 Capitalization 1,131 1,788 Change in fair value: Due to payoffs/paydowns (2,724) (2,520) Due to change in valuation inputs or assumptions 3,018 (2,754) Carrying value at end of period $ 165,674 $ 164,879 The following table summarizes servicing income and expense, which are included in mortgage banking income and other noninterest expense, respectively, in the consolidated statements of income for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Servicing income $ 7,347 $ 7,768 Change in fair value of mortgage servicing rights 294 (5,274) Change in fair value of derivative hedging instruments (3,335) 1,867 Servicing income 4,306 4,361 Servicing expenses 1,947 1,883 Net servicing income $ 2,359 $ 2,478 Data and key economic assumptions related to the Company’s mortgage servicing rights as of March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, 2024 2023 Unpaid principal balance of mortgage loans sold and serviced for others $ 10,651,075 $ 10,762,906 Weighted-average prepayment speed (CPR) 6.06 % 6.19 % Estimated impact on fair value of a 10% increase $ (4,383) $ (4,616) Estimated impact on fair value of a 20% increase $ (8,490) $ (8,924) Discount rate 10.2 % 9.62 % Estimated impact on fair value of a 100 bp increase $ (7,633) $ (7,637) Estimated impact on fair value of a 200 bp increase $ (14,617) $ (14,624) Weighted-average coupon interest rate 3.50 % 3.47 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 335 334 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, 2024 and December 31, 2023, mortgage escrow deposits totaled $92,350 and $63,591, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The following table presents a reconciliation of income taxes for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Federal taxes calculated at statutory rate $ 7,192 21.0 % $ 9,676 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 133 0.4 % 251 0.6 % Expense from equity based compensation 55 0.2 % 115 0.3 % Municipal interest income, net of interest (373) (1.1) % (456) (1.0) % Bank-owned life insurance (90) (0.3) % (127) (0.3) % Section 162(m) limitation 160 0.5 % 127 0.2 % Other (777) (2.3) % 111 0.2 % Income tax expense, as reported $ 6,300 18.4 % $ 9,697 21.0 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies Commitments to extend credit and letters of credit The Company issues certain financial instruments to meet customer financing needs, including loan commitments, credit lines and letters of credit. The agreements associated with these type of unfunded loan commitments provide credit or 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 the Company uses to evaluate and underwrite loans are also used to originate unfunded loan commitments, including obtaining collateral at exercise of the commitment. These unfunded loan commitments are only recorded in the consolidated financial statements when drawn upon and many expire without being used. The Company's maximum off-balance sheet exposure to credit loss from these unfunded loan commitments is represented by the contractual amount of these instruments. March 31, December 31, 2024 2023 Commitments to extend credit, excluding interest rate lock commitments $ 2,771,611 $ 2,906,016 Letters of credit 85,487 77,055 Balance at end of period $ 2,857,098 $ 2,983,071 As of March 31, 2024 and December 31, 2023, unfunded loan commitments included above with floating interest rates totaled $2,388,134 and $2,459,669, respectively. As part of its credit loss process, the Company estimates expected credit losses on its unfunded 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 loan commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets: Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 8,770 $ 22,969 Reversal of credit losses on unfunded commitments (1,070) (4,506) Balance at end of period $ 7,700 $ 18,463 Loan repurchases or indemnifications In connection with the sale of mortgage loans to third-party private investors or government sponsored agencies, the Company makes representations and warranties as to the propriety of its origination activities, which are typical and customary to these types of transactions. 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 in loans held for investment. The total principal amount of loans repurchased (or indemnified for) was $2,078 and $3,326 for three months ended March 31, 2024 and 2023, respectively. The Company has established a reserve associated with potential 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, 2024 2023 Balance at beginning of period $ 899 $ 1,621 Provision for (reversal of) loan repurchases or indemnifications 50 (250) Losses on loans repurchased or indemnified (19) (13) Balance at end of period $ 930 $ 1,358 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, 2024 | |
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 interest rate 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.” See Note 1, “Basis of presentation” in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on the Company’s accounting policies related to derivative instruments and hedging activities. Derivatives designated as fair value hedges The Company enters into fair value hedging relationships using interest rates swaps to mitigate the Company’s exposure to losses in market value as interest rates change. Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps that relate to pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable rate interest payments between two parties, based on a common notional principal amount and maturity date. The critical terms of the interest rate swaps match the terms of the corresponding hedged items. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Any initial and ongoing assessment of expected hedge effectiveness is based on regression analysis. At March 31, 2024, the Company did not have any interest rate swaps that were designated as fair value hedges. At December 31, 2023, the Company had interest rate swaps designated as fair value hedges to convert fixed rate money market deposits to variable with notional values totaling $200,000 and market values totaling $(4,497) recorded in other liabilities on the consolidated balance sheets. Additionally at December 31, 2023, the Company had an interest rate swap designated as a fair value hedge on subordinated debt with a notional value of $100,000 and market value of $(673) recorded in other liabilities on the consolidated balance sheets. During the three months ended March 31, 2024, the Company terminated interest rate swaps that were designated as fair value hedges on fixed rate money market deposits and the interest rate swaps covering subordinated debt matured. For the terminated swaps, notional values totaled $200,000 and market values totaled $(4,588) at termination. The remaining fair value adjustment on the terminated hedging relationships will be amortized into interest expense over the respective contract terms of the original hedges. For the matured swap, the notional value totaled $100,000 prior to maturity. The swap involved the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreement. The following discloses the amount of expense included in interest expense on deposits and borrowings, related to the Company's fair value hedging instruments: Three Months Ended March 31, 2024 2023 Designated fair value hedge: Interest expense on deposits $ — $ (1,508) Interest expense on borrowings (645) (760) Total $ (645) $ (2,268) During the three months ended March 31, 2024, amortization expense totaling $1,843 related to the terminated fair value hedges was recognized as an increase to interest expense on deposits. As of March 31, 2024, the remaining fair value adjustment related to the terminated fair value hedges of $(2,745) is included in money market and savings deposits on the consolidated balance sheets. The following amounts were recorded on the balance sheet related to cumulative adjustments of fair value hedges as of December 31, 2023: December 31, 2023 Line item on the balance sheet Carrying amount of the hedged item Cumulative decrease in fair value hedging adjustment included in the carrying amount of the hedged item Money market and savings deposits $ 198,143 (1) $ (4,497) Borrowings 98,715 (2) (673) Total $ 296,858 $ (5,170) (1) The carrying value also includes an unaccreted purchase accounting fair value premium of $2,640 as of December 31, 2023. (2) The carrying value also includes unamortized subordinated debt issuance costs of $612 as of December 31, 2023. Derivatives designated as cash flow hedges The Company enters into cash flow hedging relationships using interest rate swaps to mitigate the exposure to the variability in future cash flows or other forecast transactions associated with its floating rate assets and liabilities. The Company uses interest rate swap agreements to hedge the repricing characteristics of its floating rate subordinated debt. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Any initial and ongoing assessment of expected hedge effectiveness is based on regression analysis. The ongoing periodic measures of hedge ineffectiveness are based on the expected change in cash flows of the hedged item caused by changes in the benchmark interest rate. The following presents a summary of the Company's designated cash flow hedges as of the dates presented: March 31, 2024 December 31, 2023 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 343 Other assets $ 579 Other assets The Company's consolidated statements of income included income of $247 and $197 for the three months ended March 31, 2024 and 2023, respectively, in interest expense on borrowings related to these cash flow hedges. The cash flow hedges were highly 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 as a result of hedge ineffectiveness during any period presented. The following discloses the amount included in other comprehensive loss, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2024 2023 Amount of loss recognized in other comprehensive loss, net of tax benefit of $62 and $70 $ (174) $ (197) Derivatives not designated as hedging instruments Derivatives not designated under hedge accounting rules include those that are entered into as either economic hedges as part of the Company’s overall risk management strategy or to facilitate client needs. Economic hedges are those that are not designated as a fair value or cash flow hedge for accounting purposes but are necessary to economically manage the risk exposure associated with the assets and liabilities of the Company. 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 Company enters into interest rate-lock commitments on residential loan commitments that will be held for resale. These are considered derivative instruments with no hedge accounting designation, and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. 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 in the consolidated statements of income. The Company also enters into forwards, futures and option contracts to economically hedge the change 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 in the consolidated statements of income. The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: March 31, 2024 Notional Amount Asset Liability Interest rate contracts $ 551,095 $ 35,925 $ 35,954 Forward commitments 226,500 — 261 Interest rate-lock commitments 130,315 2,073 — Futures contracts 235,500 — 189 Total $ 1,143,410 $ 37,998 $ 36,404 December 31, 2023 Notional Amount Asset Liability Interest rate contracts $ 569,865 $ 32,179 $ 32,184 Forward commitments 159,000 — 861 Interest rate-lock commitments 69,217 1,203 — Futures contracts 254,000 777 — Total $ 1,052,082 $ 34,159 $ 33,045 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, 2024 2023 Included in mortgage banking income: Interest rate lock commitments $ 869 $ 1,207 Forward commitments 100 (295) Futures contracts (2,997) 1,937 Option contracts — (664) Total $ (2,028) $ 2,185 Netting of Derivative Instruments Certain financial instruments, including derivatives, may be eligible for offset on 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 on the consolidated balance sheets. The following table presents the Company's gross derivative positions as recognized on 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 on the consolidated balance sheets Gross amounts recognized Gross amounts offset on the consolidated balance sheets Net amounts presented on the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount March 31, 2024 Derivative financial assets $ 36,145 $ — $ 36,145 $ 123 $ — $ 36,022 Derivative financial liabilities $ 5,386 $ — $ 5,386 $ 123 $ 5,263 $ — December 31, 2023 Derivative financial assets $ 31,468 $ — $ 31,468 $ 6,502 $ — $ 24,966 Derivative financial liabilities $ 11,330 $ — $ 11,330 $ 6,502 $ 4,828 $ — Collateral Requirements Most derivative contracts with customers are secured by collateral. Additionally, in accordance with the interest rate agreements with derivative counterparties, the Company may be required to post collateral with these derivative counterparties. As of March 31, 2024 and December 31, 2023, the Company had collateral posted of $13,585 and $14,042, 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, 2024 | |
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 nonrecurring 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. Loans held for sale Mortgage loans held for sale are carried at fair value determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs. GNMA optional repurchase loans recorded as held for sale loans are carried at their principal balance. For commercial loans held for sale, fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. Derivatives The fair value of the Company's interest rate swap agreements to facilitate customer transactions are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. The fair value of interest rate lock commitments associated with the mortgage pipeline is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The fair values of the Company's designated cash flow and fair value hedges are determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair values of both the Company's hedges, including designated cash flow hedges and designated fair value hedges are based on pricing models that utilize observable market inputs. These financial instruments are classified as Level 2. OREO OREO is comprised of properties 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. OREO 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 balances and levels of the assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are presented in the following tables: At March 31, 2024 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 415,927 $ — $ 415,927 Mortgage-backed securities - residential — 826,214 — 826,214 Mortgage-backed securities - commercial — 16,615 — 16,615 Municipal securities — 171,672 — 171,672 U.S. Treasury securities — 30,857 — 30,857 Corporate securities — 3,397 — 3,397 Total securities $ — $ 1,464,682 $ — $ 1,464,682 Loans held for sale, at fair value $ — $ 61,828 $ — $ 61,828 Mortgage servicing rights — — 165,674 165,674 Derivatives — 38,341 — 38,341 Financial Liabilities: Derivatives — 36,404 — 36,404 At December 31, 2023 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 203,956 $ — $ 203,956 Mortgage-backed securities - residential — 896,971 — 896,971 Mortgage-backed securities - commercial — 16,961 — 16,961 Municipal securities — 242,263 — 242,263 U.S. Treasury securities — 108,496 — 108,496 Corporate securities — 3,326 — 3,326 Total securities $ — $ 1,471,973 $ — $ 1,471,973 Loans held for sale, at fair value $ — $ 46,618 $ — $ 46,618 Mortgage servicing rights — — 164,249 164,249 Derivatives — 34,738 — 34,738 Financial Liabilities: Derivatives — 38,215 — 38,215 The balances and levels of the assets measured at fair value on a nonrecurring basis as of March 31, 2024 and December 31, 2023 are presented in the following tables: At March 31, 2024 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 644 $ 644 Collateral-dependent net loans held for Commercial and industrial — — 5,303 5,303 Construction — — 1,288 1,288 Residential real estate: 1-4 family mortgage — — 499 499 Residential line of credit — — 561 561 Commercial real estate: Owner occupied — — 752 752 Total collateral-dependent loans $ — $ — $ 8,403 $ 8,403 At December 31, 2023 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,400 $ 2,400 Collateral-dependent net loans held for Commercial and industrial $ — $ — $ 12,338 $ 12,338 Construction — — 203 203 Residential real estate: 1-4 family mortgage — — 429 429 Consumer and other — — 71 71 Total collateral-dependent loans $ — $ — $ 13,041 $ 13,041 Commercial loans held for sale Historically, the Company had a portfolio of acquired commercial loans. There were no such loans outstanding as of March 31, 2024 as the last relationship was exited during the year ended December 31, 2023. These commercial loans were measured at fair value. As such, these loans were excluded from the ACL. The following table sets forth the changes in fair value associated with this portfolio for the three months ended March 31, 2023: 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: Paydowns and payoffs (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 The significant unobservable inputs (Level 3) used in the valuation and changes in fair value associated with the Company's mortgage servicing rights for the three months ended March 31, 2024 and 2023 are detailed at Note 6, “Mortgage servicing rights.” The following tables present information as of March 31, 2024 and December 31, 2023 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: March 31, 2024 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 8,403 Valuation of collateral Discount for comparable sales 9%-58% Other real estate owned $ 644 Appraised value of property less costs to sell Discount for costs to sell 0%-15% December 31, 2023 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 13,041 Valuation of collateral Discount for comparable sales 10%-61% Other real estate owned $ 2,400 Appraised value of property less costs to sell Discount for costs to sell 0%-15% Fair value for collateral-dependent loans is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. 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, 2024 and December 31, 2023, total amortized cost of collateral-dependent loans measured on a nonrecurring basis amounted to $12,754 and $18,166, respectively. The allowance for credit losses is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. 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, 2024 2023 Loans held for sale under a fair value option: Mortgage loans held for sale 61,828 46,618 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 20,876 21,229 Total loans held for sale $ 82,704 $ 67,847 Mortgage loans held for sale Net gain of $203 and net loss of $51 resulting from fair value changes of mortgage loans held for sale were recorded in income during the three months ended March 31, 2024 and 2023, 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 held for sale. The net change in fair value of these loans held for sale and derivatives resulted in net gain of $1,821 and net loss of $421 for the three months ended March 31, 2024 and 2023, respectively. The change in fair value of both mortgage 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. The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Aggregate fair value $ 61,828 $ 46,618 Aggregate unpaid principal balance 60,516 45,509 Difference $ 1,312 $ 1,109 The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Non-financial instruments are excluded from the table below. Fair Value March 31, 2024 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 870,730 $ 870,730 $ — $ — $ 870,730 Investment securities 1,464,682 — 1,464,682 — 1,464,682 Net loans held for investment 9,137,242 — — 8,809,892 8,809,892 Loans held for sale, at fair value 61,828 — 61,828 — 61,828 Interest receivable 53,506 892 6,774 45,840 53,506 Mortgage servicing rights 165,674 — — 165,674 165,674 Derivatives 38,341 — 38,341 — 38,341 Financial liabilities: Deposits: Without stated maturities $ 8,902,546 $ 8,902,546 $ — $ — $ 8,902,546 With stated maturities 1,602,382 — 1,594,332 — 1,594,332 Securities sold under agreements to repurchase and federal funds purchased 78,229 78,229 — — 78,229 Bank Term Funding Program 130,000 — 129,462 — 129,462 Subordinated debt, net 130,414 — — 123,284 123,284 Interest payable 20,504 4,187 15,942 375 20,504 Derivatives 36,404 — 36,404 — 36,404 Fair Value December 31, 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 810,932 $ 810,932 $ — $ — $ 810,932 Investment securities 1,471,973 — 1,471,973 — 1,471,973 Net loans held for investment 9,258,457 — — 9,068,518 9,068,518 Loans held for sale, at fair value 46,618 — 46,618 — 46,618 Interest receivable 52,715 388 8,551 43,776 52,715 Mortgage servicing rights 164,249 — — 164,249 164,249 Derivatives 34,738 — 34,738 — 34,738 Financial liabilities: Deposits: Without stated maturities $ 8,927,654 $ 8,927,654 $ — $ — $ 8,927,654 With stated maturities 1,620,633 — 1,614,400 — 1,614,400 Securities sold under agreements to repurchase and federal funds purchased 108,764 108,764 — — 108,764 Bank Term Funding Program 130,000 — 130,000 — 130,000 Subordinated debt, net 129,645 — — 122,671 122,671 Interest payable 18,809 4,104 13,205 1,500 18,809 Derivatives 38,215 — 38,215 — 38,215 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
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 its Mortgage segment, whose activities also include the servicing of residential mortgage loans and securitization of loans to third party private investors or government sponsored agencies. Beginning in 2024, the Company began assigning a transfer rate to allocate net interest income to products and business segments. The intent of the transfer rate methodology is to transfer interest rate risk among the segments and allow management to better measure the net interest margin contribution of its assets/liabilities by segment. Prior period results have been adjusted to conform to the current methodology. The following tables present selected financial information with respect to the Company's reportable segments for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Banking Mortgage Consolidated Net interest income $ 97,094 $ 2,396 $ 99,490 Provisions for (reversal of) credit losses 838 (56) 782 Mortgage banking income — 15,626 15,626 Change in fair value of mortgage servicing rights, net of hedging (1) — (3,041) (3,041) Other noninterest (loss) income (4,794) 171 (4,623) Depreciation and amortization 2,708 133 2,841 Amortization of intangibles 789 — 789 Other noninterest expense 56,847 11,943 68,790 Income before income taxes $ 31,118 $ 3,132 $ 34,250 Income tax expense 6,300 Net income applicable to FB Financial Corporation and noncontrolling interest 27,950 Net income applicable to noncontrolling interest — Net income applicable to FB Financial Corporation $ 27,950 Total assets $ 11,979,904 $ 568,416 $ 12,548,320 Goodwill 242,561 — 242,561 (1) 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. Three Months Ended March 31, 2023 Banking Mortgage Consolidated Net interest income $ 101,287 $ 2,373 $ 103,660 Provisions for credit losses 212 279 491 Mortgage banking income — 15,493 15,493 Change in fair value of mortgage servicing rights, net of hedging (1) — (3,407) (3,407) Other noninterest income (loss) 11,493 (230) 11,263 Depreciation and amortization 2,049 179 2,228 Amortization of intangibles 990 — 990 Other noninterest expense 63,713 13,509 77,222 Income before income taxes $ 45,816 $ 262 $ 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 — Net income applicable to FB Financial Corporation $ 36,381 Total assets $ 12,534,348 $ 566,799 $ 13,101,147 Goodwill 242,561 — 242,561 (1) 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. |
Minimum Capital Requirements
Minimum Capital Requirements | 3 Months Ended |
Mar. 31, 2024 | |
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. Minimum risk-based capital adequacy ratios below include a capital conservation buffer of 2.50%. As of March 31, 2024 and December 31, 2023, the Bank and Company met all capital adequacy requirements to which they are subject. Additionally, under U.S. Basel III Capital Rules, the Bank and Company opted out of including accumulated other comprehensive income in regulatory capital. The Company elected to phase-in the impact related to adopting ASU 2016-13 over the permissible five-year transition relief period and delayed the initial impact of CECL adoption plus 25% of the quarterly increases in ACL in the first two years after adoption. As of January 1, 2022, the cumulative amount of the transition adjustments became fixed and are being phased out of regulatory capital calculations evenly over a three-year period, with 75% of the transition provision’s impact being recognized in 2022, 50% recognized in 2023, and 25% recognized in 2024. Actual and required capital amounts and ratios are included below as of the dates indicated. March 31, 2024 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,657,500 15.0 % $ 1,161,748 10.5 % N/A N/A FirstBank 1,622,562 14.7 % 1,159,716 10.5 % $ 1,104,491 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,419,546 12.8 % $ 940,462 8.5 % N/A N/A FirstBank 1,384,847 12.5 % 938,818 8.5 % $ 883,593 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,419,546 11.3 % $ 500,450 4.0 % N/A N/A FirstBank 1,384,847 11.1 % 499,885 4.0 % $ 624,857 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,389,546 12.6 % $ 774,498 7.0 % N/A N/A FirstBank 1,384,847 12.5 % 773,144 7.0 % $ 717,919 6.5 % December 31, 2023 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,635,848 14.5 % $ 1,182,028 10.5 % N/A N/A FirstBank 1,600,950 14.2 % 1,179,886 10.5 % $ 1,123,701 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,405,890 12.5 % $ 956,880 8.5 % N/A N/A FirstBank 1,370,991 12.2 % 955,145 8.5 % $ 898,960 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,405,890 11.3 % $ 496,485 4.0 % N/A N/A FirstBank 1,370,991 11.1 % 495,761 4.0 % $ 619,701 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,375,890 12.2 % $ 788,018 7.0 % N/A N/A FirstBank 1,370,991 12.2 % 786,590 7.0 % $ 730,405 6.5 % |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
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 certain employees and directors. RSU grants are subject to time-based vesting with associated compensation recognized on a straight-line basis based on the grant date fair value of the awards. The total number of RSUs granted represents the number of awards eligible to vest based upon the service conditions set forth in the grant agreements. The following table summarizes changes in RSUs for the three months ended March 31, 2024: Restricted Stock Weighted Balance at beginning of period (unvested) 323,520 $ 37.52 Granted 155,047 35.60 Vested (18,777) 35.55 Forfeited (853) 40.19 Balance at end of period (unvested) 458,937 $ 36.95 The total fair value of RSUs vested was $668 and $4,591 for the three months ended March 31, 2024 and 2023, respectively. The compensation cost related to the grants and vesting of RSUs was $2,706 and $1,706 for the three months ended March 31, 2024 and 2023, respectively. This includes amounts paid related to grants and compensation for directors elected to be settled in stock amounting to $199 and $175 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $10,614 of total unrecognized compensation cost related to unvested RSUs which is expected to be recognized over a weighted-average period of 2.24 years. Additionally, as of March 31, 2024, there were 1,459,258 shares available for issuance under the Company's stock compensation plans. As of March 31, 2024 and December 31, 2023, there was $410 and $353, respectively, accrued in other liabilities related to dividend equivalent units declared to be paid upon vesting and distribution of the underlying RSUs. Performance-Based Restricted Stock Units The Company awards PSUs to certain 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 achievement of certain performance metrics over a fixed three-year performance period. The number of shares issued upon vesting can range from 0% to 200% of the PSUs granted. For PSUs granted prior to December 31, 2023, performance factors will be based on the Company’s achievement of non-GAAP core return on average tangible common equity over the performance period relative to a predefined peer group. Beginning with awards issued during the first quarter of 2024, performance factors will be based on a combination of the same metric discussed above as well as the Company’s adjusted tangible book value over the performance period. Compensation expense for PSUs is estimated each period based on the fair value of the Company's stock at the grant date and the most probable outcome of the performance condition, adjusted for the passage of time within the performance period of the awards. The following table summarizes information about the changes in PSUs as of and for the three months ended March 31, 2024: Performance Stock Weighted Balance at beginning of period (unvested) 176,163 $ 40.86 Granted 97,738 35.60 Performance adjustment (1) (12,356) 43.20 Vested (34,915) 43.20 Forfeited or expired (969) 40.00 Balance at end of period (unvested) 225,661 $ 38.09 (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, 2024: Grant Year (1) Grant Price Performance Period PSUs Outstanding 2022 $ 44.44 2022 to 2024 49,836 2023 $ 37.17 2023 to 2025 78,087 2024 $ 35.60 2024 to 2026 97,738 (1) 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 associated with PSUs of $114 and $579 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $14,786, and the weighted average remaining performance period over which the cost could be recognized was 2.39 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, limited to 725 shares for each participating employee. There were 10,606 and 8,214 shares of common stock issued under the ESPP with proceeds from employee payroll withholdings of $388 and $305 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there were 2,283,620 shares available for issuance under the ESPP. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related party transactions 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, significant shareholders and directors of the Bank and their related interests is presented below: Loans outstanding at January 1, 2024 $ 49,073 New loans and advances 1,894 Change in related party status — Repayments (1,474) Loans outstanding at March 31, 2024 $ 49,493 Unfunded commitments to certain executive officers, certain management and directors and their related interests totaled $54,212 and $44,206 at March 31, 2024 and December 31, 2023, respectively. Deposits The Bank held deposits from related parties totaling $338,935 and $316,141 as of March 31, 2024 and December 31, 2023, respectively. 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 for both the three months ended March 31, 2024 and 2023. Aviation lease Through a wholly-owned subsidiary, FBK Aviation, LLC, the Company owns and maintains an aircraft. FBK Aviation, LLC maintains a non-exclusive aircraft lease with an entity owned by one of the Company's directors. The Company recognized income of $24 and $7 during the three months ended March 31, 2024 and 2023, respectively, under this agreement. Subsequent to March 31, 2024, the Company renegotiated the lease agreement with the existing director and executed a non-exclusive aircraft lease with an entity owned by another one of the Company's directors. Equity investment in preferred stock and master loan purchase agreement 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, 2024 and December 31, 2023, 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. Concurrently, the Company also entered a separate master loan purchase agreement with the entity to purchase up to $250,000 in manufactured loan housing production over an initial five-year term. During the three months ended March 31, 2024, the Company purchased $9,225 of loans HFI under this agreement. No such loans were purchased during the three months ended March 31, 2023. As of March 31, 2024 and December 31, 2023, the amortized cost of these loans HFI amounted to $41,048 and $32,154, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 27,950 | $ 36,381 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with U.S. GAAP interim reporting requirements and general banking industry guidelines, and therefore, do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity. |
Earnings per share | Earnings per share Basic EPS excludes dilution and is computed by dividing earnings attributable 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 attributable to common shareholders by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. |
Recently adopted accounting standards and Newly issued not yet effective accounting standards | Recently adopted accounting standards: In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” The FASB issued this update to clarify the guidance in ASC 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 Company adopted this update effective January 1, 2024. The adoption did not have an impact on the Company's consolidated financial statements or related disclosures. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” as part of the Post-Implementation Review process of ASC 842, “Leases,” 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 Company adopted this standard on January 1, 2024 on a prospective basis. The adoption of this standard did not have a material impact on the Company's consolidated financial statements or 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 Company adopted this standard effective January 1, 2024. The adoption of this accounting pronouncement did not have an impact on the Company's historical consolidated financial statements but could influence the Company's decisions with respect to investments in certain tax credits prospectively. Newly issued not yet effective accounting standards: In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker, a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the chief operating decision maker when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280, “Segment Reporting,” to be included in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is evaluating the impact this will have on the Company's consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-08, “Intangibles – Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.” This update requires entities to present crypto assets measured at fair value separately from other intangible assets on the balance sheet and reflect changes from remeasurement in the net income. Additionally, an entity that receives crypto assets as noncash consideration in the ordinary course of business and converts them nearly immediately into cash is required to classify those cash receipts as cash flows from operating activities. Lastly, the update requires entities to provide interim and annual disclosures about the types of crypto assets they hold and any changes in their holdings of crypto assets. While the Company does not currently hold or facilitate transactions with crypto assets, the Company is evaluating the potential future financial statement and disclosure impact from adopting this guidance when it becomes applicable based on the Company's crypto asset activities. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This ASU requires disclosures of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the effect that ASU 2023-09 will have on its disclosures. |
Subsequent events | Subsequent events |
Loans held for investment (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 weaknesses 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. Doubtful loans 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 nonrecurring 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. Loans held for sale Mortgage loans held for sale are carried at fair value determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs. GNMA optional repurchase loans recorded as held for sale loans are carried at their principal balance. For commercial loans held for sale, fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. Derivatives The fair value of the Company's interest rate swap agreements to facilitate customer transactions are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. The fair value of interest rate lock commitments associated with the mortgage pipeline is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The fair values of the Company's designated cash flow and fair value hedges are determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair values of both the Company's hedges, including designated cash flow hedges and designated fair value hedges are based on pricing models that utilize observable market inputs. These financial instruments are classified as Level 2. OREO OREO is comprised of properties 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. OREO 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. 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, 2024 | |
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, 2024 2023 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 27,950 $ 36,381 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 27,950 $ 36,381 Weighted average basic shares outstanding 46,874,882 46,679,618 Basic earnings per common share $ 0.60 $ 0.78 Diluted earnings per common share: Earnings available to common shareholders $ 27,950 $ 36,381 Weighted average basic shares outstanding 46,874,882 46,679,618 Weighted average diluted shares contingently issuable (1) 123,991 85,536 Weighted average diluted shares outstanding 46,998,873 46,765,154 Diluted earnings per common share $ 0.59 $ 0.78 (1) Excludes 2,949 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 AFS debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss at March 31, 2024 and December 31, 2023: March 31, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 416,953 $ 145 $ (1,171) $ — $ 415,927 Mortgage-backed securities - residential 984,473 — (158,259) — 826,214 Mortgage-backed securities - commercial 17,899 — (1,284) — 16,615 Municipal securities 194,470 45 (22,843) — 171,672 U.S. Treasury securities 30,985 — (128) — 30,857 Corporate securities 3,500 — (103) — 3,397 Total $ 1,648,280 $ 190 $ (183,788) $ — $ 1,464,682 December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 204,663 $ 470 $ (1,177) $ — $ 203,956 Mortgage-backed securities - residential 1,057,389 — (160,418) — 896,971 Mortgage-backed securities - commercial 18,186 — (1,225) — 16,961 Municipal securities 263,312 370 (21,419) — 242,263 U.S. Treasury securities 111,729 — (3,233) — 108,496 Corporate securities 3,500 — (174) — 3,326 Total $ 1,658,779 $ 840 $ (187,646) $ — $ 1,471,973 |
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, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2024 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 203,870 $ (484) $ 7,251 $ (687) $ 211,121 $ (1,171) Mortgage-backed securities - residential — — 776,208 (158,259) 776,208 (158,259) Mortgage-backed securities - commercial — — 16,615 (1,284) 16,615 (1,284) Municipal securities 9,131 (41) 155,959 (22,802) 165,090 (22,843) U.S. Treasury securities — — 30,857 (128) 30,857 (128) Corporate securities — — 3,397 (103) 3,397 (103) Total $ 213,001 $ (525) $ 990,287 $ (183,263) $ 1,203,288 $ (183,788) December 31, 2023 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 25,923 $ (21) $ 14,040 $ (1,156) $ 39,963 $ (1,177) Mortgage-backed securities - residential — — 896,971 (160,418) 896,971 (160,418) Mortgage-backed securities - commercial — — 16,961 (1,225) 16,961 (1,225) Municipal securities 14,480 (148) 188,669 (21,271) 203,149 (21,419) U.S. Treasury securities — — 108,496 (3,233) 108,496 (3,233) Corporate securities — — 3,326 (174) 3,326 (174) Total $ 40,403 $ (169) $ 1,228,463 $ (187,477) $ 1,268,866 $ (187,646) |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | March 31, December 31, 2024 2023 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 34,073 $ 33,910 $ 64,776 $ 64,279 Due in one to five years 10,851 10,080 75,996 71,801 Due in five to ten years 40,939 39,932 51,162 49,630 Due in over ten years 560,045 537,931 391,270 372,331 645,908 621,853 583,204 558,041 Mortgage-backed securities - residential 984,473 826,214 1,057,389 896,971 Mortgage-backed securities - commercial 17,899 16,615 18,186 16,961 Total AFS debt securities $ 1,648,280 $ 1,464,682 $ 1,658,779 $ 1,471,973 |
Schedule of Sales and Other Dispositions of Available-for-Sale Securities | Sales and other dispositions of AFS debt securities were as follows: Three Months Ended March 31, 2024 2023 Proceeds from sales $ 207,882 $ — Proceeds from maturities, prepayments and calls 66,627 26,827 Gross realized gains 90 — Gross realized losses 16,303 — |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans HFI (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding as of March 31, 2024 and December 31, 2023, by class of financing receivable are as follows: March 31, December 31, 2024 2023 Commercial and industrial $ 1,621,611 $ 1,720,733 Construction 1,268,883 1,397,313 Residential real estate: 1-to-4 family mortgage 1,577,824 1,568,552 Residential line of credit 549,306 530,912 Multi-family mortgage 615,081 603,804 Commercial real estate: Owner-occupied 1,236,007 1,232,071 Non-owner occupied 1,991,526 1,943,525 Consumer and other 428,671 411,873 Gross loans 9,288,909 9,408,783 Less: Allowance for credit losses on loans HFI (151,667) (150,326) Net loans $ 9,137,242 $ 9,258,457 |
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, 2024 and December 31, 2023 and the gross charge-offs for the three months ended March 31, 2024 and the year ended December 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. As of and for the three months ended March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 16,449 $ 202,050 $ 237,139 $ 72,725 $ 36,876 $ 129,057 $ 864,065 $ 1,558,361 Special Mention — 3,675 17,572 2,913 — 247 4,521 28,928 Classified — 457 4,328 3,017 2,987 6,350 17,183 34,322 Total 16,449 206,182 259,039 78,655 39,863 135,654 885,769 1,621,611 Current-period gross — — — 14 — 7 22 43 Construction Pass 39,360 193,203 551,909 124,878 36,531 86,713 187,955 1,220,549 Special Mention — 711 4,689 2,508 — 657 12,000 20,565 Classified — — 3,986 2,590 6,877 — 14,316 27,769 Total 39,360 193,914 560,584 129,976 43,408 87,370 214,271 1,268,883 Current-period gross — — — — — — 92 92 Residential real estate: Multi-family mortgage Pass — 29,861 193,591 244,770 54,744 68,104 22,953 614,023 Special Mention — — — — — — — — Classified — — — — — 1,058 — 1,058 Total — 29,861 193,591 244,770 54,744 69,162 22,953 615,081 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 24,636 112,168 253,377 231,354 113,481 428,182 53,516 1,216,714 Special Mention — — 1,283 1,811 — 2,547 — 5,641 Classified — — 6,281 16 65 6,228 1,062 13,652 Total 24,636 112,168 260,941 233,181 113,546 436,957 54,578 1,236,007 Current-period gross — — — — — — — — Non-owner occupied Pass 3,755 45,516 533,649 468,553 122,699 750,943 43,090 1,968,205 Special Mention — — — 3,966 — 83 — 4,049 Classified — — — 998 — 18,274 — 19,272 Total 3,755 45,516 533,649 473,517 122,699 769,300 43,090 1,991,526 Current-period gross — — — — — — — — Total commercial loan types Pass 84,200 582,798 1,769,665 1,142,280 364,331 1,462,999 1,171,579 6,577,852 Special Mention — 4,386 23,544 11,198 — 3,534 16,521 59,183 Classified — 457 14,595 6,621 9,929 31,910 32,561 96,073 Total $ 84,200 $ 587,641 $ 1,807,804 $ 1,160,099 $ 374,260 $ 1,498,443 $ 1,220,661 $ 6,733,108 Current-period gross $ — $ — $ — $ 14 $ — $ 7 $ 114 $ 135 As of and for the year ended 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 225,734 $ 255,921 $ 151,492 $ 39,897 $ 70,302 $ 73,415 $ 839,918 $ 1,656,679 Special Mention — 17,947 3,083 — 151 108 7,549 28,838 Classified 457 4,253 3,075 3,027 254 6,129 18,021 35,216 Total 226,191 278,121 157,650 42,924 70,707 79,652 865,488 1,720,733 Current-period gross 14 7 201 22 — 87 131 462 Construction Pass 179,929 677,387 148,312 46,697 39,140 49,954 208,491 1,349,910 Special Mention 1 4,659 2,943 1,202 — 690 12,000 21,495 Classified — 2,349 1,484 6,620 — — 15,455 25,908 Total 179,930 684,395 152,739 54,519 39,140 50,644 235,946 1,397,313 Current-period gross — — — — — — — — Residential real estate: Multi-family mortgage Pass 29,982 151,495 223,889 92,745 29,933 43,479 31,209 602,732 Special Mention — — — — — — — — Classified — — — — — 1,072 — 1,072 Total 29,982 151,495 223,889 92,745 29,933 44,551 31,209 603,804 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 118,030 261,196 231,241 115,397 151,146 281,253 53,970 1,212,233 Special Mention — 1,297 1,827 — 154 2,617 — 5,895 Classified — 6,305 16 — 760 5,789 1,073 13,943 Total 118,030 268,798 233,084 115,397 152,060 289,659 55,043 1,232,071 Current-period gross — — 144 — — — — 144 Non-owner occupied Pass 47,026 474,560 478,878 117,429 178,448 580,168 43,577 1,920,086 Special Mention — — 3,975 — — 10,435 — 14,410 Classified — — 1,001 — 381 7,647 — 9,029 Total 47,026 474,560 483,854 117,429 178,829 598,250 43,577 1,943,525 Current-period gross — — — — — — — — Total commercial loan types Pass 600,701 1,820,559 1,233,812 412,165 468,969 1,028,269 1,177,165 6,741,640 Special Mention 1 23,903 11,828 1,202 305 13,850 19,549 70,638 Classified 457 12,907 5,576 9,647 1,395 20,637 34,549 85,168 Total $ 601,159 $ 1,857,369 $ 1,251,216 $ 423,014 $ 470,669 $ 1,062,756 $ 1,231,263 $ 6,897,446 Current-period gross 14 7 345 22 — 87 131 606 The following tables present the credit quality by classification (performing or nonperforming) of the Company's consumer type loan portfolio as of March 31, 2024 and December 31, 2023 and the gross charge-offs for the three months ended March 31, 2024 and the year ended December 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. As of and for the three months ended March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 43,291 $ 187,203 $ 492,643 $ 393,806 $ 143,618 $ 298,828 $ — $ 1,559,389 Nonperforming — 325 5,027 3,237 4,421 5,425 — 18,435 Total 43,291 187,528 497,670 397,043 148,039 304,253 — 1,577,824 Current-period gross — — — — — — — — Residential line of credit Performing — — — — — — 547,097 547,097 Nonperforming — — — — — — 2,209 2,209 Total — — — — — — 549,306 549,306 Current-period gross — — — — — — 20 20 Consumer and other Performing 25,887 109,013 87,312 42,673 33,415 114,071 5,849 418,220 Nonperforming — 561 909 2,293 1,849 4,839 — 10,451 Total 25,887 109,574 88,221 44,966 35,264 118,910 5,849 428,671 Current-period gross 155 344 31 96 36 110 — 772 Total consumer type loans Performing 69,178 296,216 579,955 436,479 177,033 412,899 552,946 2,524,706 Nonperforming — 886 5,936 5,530 6,270 10,264 2,209 31,095 Total $ 69,178 $ 297,102 $ 585,891 $ 442,009 $ 183,303 $ 423,163 $ 555,155 $ 2,555,801 Current-period gross $ 155 $ 344 $ 31 $ 96 $ 36 $ 110 $ 20 $ 792 As of and for the year ended 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 198,537 $ 500,628 $ 399,338 $ 145,484 $ 81,905 $ 226,587 $ — $ 1,552,479 Nonperforming 76 2,565 4,026 3,846 690 4,870 — 16,073 Total 198,613 503,193 403,364 149,330 82,595 231,457 — 1,568,552 Prior-period gross — 18 — 4 — 24 — 46 Residential line of credit Performing — — — — — — 528,439 528,439 Nonperforming — — — — — — 2,473 2,473 Total — — — — — — 530,912 530,912 Prior-period gross — — — — — — — — Consumer and other Performing 104,399 91,557 45,187 34,928 24,040 93,833 6,890 400,834 Nonperforming 528 1,025 2,562 1,819 1,264 3,841 — 11,039 Total 104,927 92,582 47,749 36,747 25,304 97,674 6,890 411,873 Prior-period gross 1,463 564 139 201 110 372 2 2,851 Total consumer type loans Performing 302,936 592,185 444,525 180,412 105,945 320,420 535,329 2,481,752 Nonperforming 604 3,590 6,588 5,665 1,954 8,711 2,473 29,585 Total $ 303,540 $ 595,775 $ 451,113 $ 186,077 $ 107,899 $ 329,131 $ 537,802 $ 2,511,337 Prior-period gross 1,463 582 139 205 110 396 2 2,897 |
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, 2024 and December 31, 2023: March 31, 2024 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 1,606 $ — $ 24,643 $ 1,595,362 $ 1,621,611 Construction 1,474 585 5,077 1,261,747 1,268,883 Residential real estate: 1-to-4 family mortgage 17,881 9,610 8,825 1,541,508 1,577,824 Residential line of credit 1,717 1,097 1,112 545,380 549,306 Multi-family mortgage — — 31 615,050 615,081 Commercial real estate: Owner occupied 465 — 3,069 1,232,473 1,236,007 Non-owner occupied 3,631 — 3,250 1,984,645 1,991,526 Consumer and other 10,699 1,566 8,885 407,521 428,671 Total $ 37,473 $ 12,858 $ 54,892 $ 9,183,686 $ 9,288,909 December 31, 2023 30-89 days 90 days or Nonaccrual Loans current on payments and accruing interest Total Commercial and industrial $ 732 $ — $ 21,730 $ 1,698,271 $ 1,720,733 Construction 6,579 165 2,872 1,387,697 1,397,313 Residential real estate: 1-to-4 family mortgage 21,768 9,355 6,718 1,530,711 1,568,552 Residential line of credit 2,464 1,337 1,136 525,975 530,912 Multi-family mortgage — — 32 603,772 603,804 Commercial real estate: Owner occupied 480 — 3,188 1,228,403 1,232,071 Non-owner occupied 4,059 — 3,351 1,936,115 1,943,525 Consumer and other 10,961 1,836 9,203 389,873 411,873 Total $ 47,043 $ 12,693 $ 48,230 $ 9,300,817 $ 9,408,783 |
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, 2024 and December 31, 2023 by class of financing receivable. March 31, 2024 Nonaccrual Nonaccrual Related Commercial and industrial $ 14,465 $ 10,178 $ 3,946 Construction 3,152 1,925 293 Residential real estate: 1-to-4 family mortgage 3,336 5,489 167 Residential line of credit 812 300 5 Multi-family mortgage — 31 1 Commercial real estate: Owner occupied 1,935 1,134 145 Non-owner occupied 3,219 31 1 Consumer and other — 8,885 463 Total $ 26,919 $ 27,973 $ 5,021 December 31, 2023 Nonaccrual Nonaccrual Related Commercial and industrial $ 3,678 $ 18,052 $ 5,011 Construction 2,267 605 59 Residential real estate: 1-to-4 family mortgage 1,444 5,274 103 Residential line of credit 685 451 8 Multi-family mortgage — 32 1 Commercial real estate: Owner occupied 2,920 268 15 Non-owner occupied 3,316 35 1 Consumer and other — 9,203 498 Total $ 14,310 $ 33,920 $ 5,696 The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Commercial and industrial $ 224 $ 20 Construction 61 6 Residential real estate: 1-to-4 family mortgage — 79 Residential line of credit 16 24 Multi-family mortgage — 1 Commercial real estate: Owner occupied 49 58 Non-owner occupied 35 82 Consumer and other — 173 Total $ 385 $ 443 |
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, 2024 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ 86 $ 363 $ 23,660 $ 24,109 $ 3,883 Construction 24,744 1,653 — 26,397 265 Residential real estate: 1-to-4 family mortgage 3,893 — — 3,893 58 Residential line of credit 1,384 — — 1,384 12 Multi-family mortgage — — — — — Commercial real estate: Owner occupied 1,969 7,478 9,447 131 Non-owner occupied 14,731 — — 14,731 — Total $ 46,807 $ 9,494 $ 23,660 $ 79,961 $ 4,349 December 31, 2023 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ — $ 363 $ 20,599 $ 20,962 $ 4,946 Construction 8,224 — — 8,224 30 Residential real estate: 1-to-4 family mortgage 5,317 — — 5,317 129 Residential line of credit 1,245 — — 1,245 10 Commercial real estate: Owner occupied 1,975 1,160 — 3,135 — Non-owner occupied 3,316 — — 3,316 — Consumer and other 112 — — 112 21 Total $ 20,189 $ 1,523 $ 20,599 $ 42,311 $ 5,136 |
Schedule of Changes in Allowance for Credit Losses on Loans HFI by Class of Financing Receivable | The following tables provide the changes in the allowance for credit losses on loans HFI by class of financing receivable for the three months ended March 31, 2024 and 2023: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2024 Beginning balance - December 31, 2023 $ 19,599 $ 35,372 $ 26,505 $ 9,468 $ 8,842 $ 10,653 $ 22,965 $ 16,922 $ 150,326 (Reversal of) provision for (2,298) 2,028 (433) 470 131 56 984 914 1,852 Recoveries of loans previously charged-off 14 — 56 — — 40 — 306 416 Loans charged off (43) (92) — (20) — — — (772) (927) Ending balance - March 31, 2024 $ 17,272 $ 37,308 $ 26,128 $ 9,918 $ 8,973 $ 10,749 $ 23,949 $ 17,370 $ 151,667 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 (Reversal of) provision for (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 - $ 11,117 $ 41,025 $ 27,213 $ 9,034 $ 6,619 $ 7,952 $ 21,868 $ 13,981 $ 138,809 |
Schedule of Financial Effect of TDRs | The following table presents the amortized cost of FDM loans as of March 31, 2024 by class of financing receivable and type of concession granted that were modified during the three months ended March 31, 2024. Term extension Payment deferral and term extension Total % of total class of financing receivables Construction $ — $ 14,316 $ 14,316 1.1 % Commercial real estate: Non-owner occupied 10,351 — 10,351 0.5 % Consumer and other 22 — 22 — % Total $ 10,373 $ 14,316 $ 24,689 0.3 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficultly: Three Months Ended Weighted average term extension Weighted average payment deferral Construction 6 3 Commercial real estate: Non-owner occupied 6 — Consumer and other 42 — |
Schedule of Financing Receivable, Modified, Past Due | The table below depicts the performance of loans held for investment as of March 31, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months. March 31, 2024 30-89 days 90 days or Nonaccrual loans (1) Loans current Total Commercial and industrial $ — $ — $ 179 $ — $ 179 Construction — — — 14,316 14,316 Residential real estate: 1-to-4 family mortgage — — 65 — 65 Commercial real estate: Non-owner occupied — — — 10,351 10,351 Consumer and other — — — 22 22 Total $ — $ — $ 244 $ 24,689 $ 24,933 1) Loans were on non-accrual when modified and subsequently classified as FDM. |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 3,192 $ 5,794 Transfers from loans 753 235 Proceeds from sale of other real estate owned (389) (2,031) Gain on sale of other real estate owned 57 87 Balance at end of period $ 3,613 $ 4,085 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023: March 31, December 31, Classification 2024 2023 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 51,421 $ 54,295 Finance leases Premises and equipment, net 1,228 1,256 Total right-of-use assets $ 52,649 $ 55,551 Lease liabilities: Operating leases Operating lease liabilities $ 64,562 $ 67,643 Finance leases Borrowings 1,302 1,326 Total lease liabilities $ 65,864 $ 68,969 Weighted average remaining lease term (in years) - 11.5 11.6 Weighted average remaining lease term (in years) - 11.1 11.4 Weighted average discount rate - operating 3.40 % 3.39 % 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 2024 2023 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,927 $ 1,815 Short-term lease cost Occupancy and equipment 97 121 Variable lease cost Occupancy and equipment 336 298 Gain on lease modifications and Occupancy and equipment — (72) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 6 6 Amortization of right-of-use asset Occupancy and equipment 28 28 Sublease income Occupancy and equipment (172) (281) Total lease cost $ 2,222 $ 1,915 |
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 lease liabilities as of March 31, 2024 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2025 $ 6,358 $ 90 March 31, 2026 8,454 121 March 31, 2027 8,314 123 March 31, 2028 7,864 125 March 31, 2029 6,939 127 Thereafter 44,094 850 Total undiscounted future minimum lease payments 82,023 1,436 Less: imputed interest (17,461) (134) Lease liabilities $ 64,562 $ 1,302 |
Schedule of Maturity of Finance Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of March 31, 2024 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2025 $ 6,358 $ 90 March 31, 2026 8,454 121 March 31, 2027 8,314 123 March 31, 2028 7,864 125 March 31, 2029 6,939 127 Thereafter 44,094 850 Total undiscounted future minimum lease payments 82,023 1,436 Less: imputed interest (17,461) (134) Lease liabilities $ 64,562 $ 1,302 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Three Months Ended March 31, 2024 2023 Carrying value at beginning of period $ 164,249 $ 168,365 Capitalization 1,131 1,788 Change in fair value: Due to payoffs/paydowns (2,724) (2,520) Due to change in valuation inputs or assumptions 3,018 (2,754) Carrying value at end of period $ 165,674 $ 164,879 |
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, in the consolidated statements of income for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Servicing income $ 7,347 $ 7,768 Change in fair value of mortgage servicing rights 294 (5,274) Change in fair value of derivative hedging instruments (3,335) 1,867 Servicing income 4,306 4,361 Servicing expenses 1,947 1,883 Net servicing income $ 2,359 $ 2,478 |
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, 2024 and December 31, 2023 are as follows: March 31, December 31, 2024 2023 Unpaid principal balance of mortgage loans sold and serviced for others $ 10,651,075 $ 10,762,906 Weighted-average prepayment speed (CPR) 6.06 % 6.19 % Estimated impact on fair value of a 10% increase $ (4,383) $ (4,616) Estimated impact on fair value of a 20% increase $ (8,490) $ (8,924) Discount rate 10.2 % 9.62 % Estimated impact on fair value of a 100 bp increase $ (7,633) $ (7,637) Estimated impact on fair value of a 200 bp increase $ (14,617) $ (14,624) Weighted-average coupon interest rate 3.50 % 3.47 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 335 334 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Taxes | The following table presents a reconciliation of income taxes for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Federal taxes calculated at statutory rate $ 7,192 21.0 % $ 9,676 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 133 0.4 % 251 0.6 % Expense from equity based compensation 55 0.2 % 115 0.3 % Municipal interest income, net of interest (373) (1.1) % (456) (1.0) % Bank-owned life insurance (90) (0.3) % (127) (0.3) % Section 162(m) limitation 160 0.5 % 127 0.2 % Other (777) (2.3) % 111 0.2 % Income tax expense, as reported $ 6,300 18.4 % $ 9,697 21.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | March 31, December 31, 2024 2023 Commitments to extend credit, excluding interest rate lock commitments $ 2,771,611 $ 2,906,016 Letters of credit 85,487 77,055 Balance at end of period $ 2,857,098 $ 2,983,071 |
Schedule of Allowance of Credit Losses on Unfunded Commitments | The table below presents activity within the allowance for credit losses on unfunded loan commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets: Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 8,770 $ 22,969 Reversal of credit losses on unfunded commitments (1,070) (4,506) Balance at end of period $ 7,700 $ 18,463 |
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, 2024 2023 Balance at beginning of period $ 899 $ 1,621 Provision for (reversal of) loan repurchases or indemnifications 50 (250) Losses on loans repurchased or indemnified (19) (13) Balance at end of period $ 930 $ 1,358 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following presents a summary of the Company's designated cash flow hedges as of the dates presented: March 31, 2024 December 31, 2023 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 343 Other assets $ 579 Other assets The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: March 31, 2024 Notional Amount Asset Liability Interest rate contracts $ 551,095 $ 35,925 $ 35,954 Forward commitments 226,500 — 261 Interest rate-lock commitments 130,315 2,073 — Futures contracts 235,500 — 189 Total $ 1,143,410 $ 37,998 $ 36,404 December 31, 2023 Notional Amount Asset Liability Interest rate contracts $ 569,865 $ 32,179 $ 32,184 Forward commitments 159,000 — 861 Interest rate-lock commitments 69,217 1,203 — Futures contracts 254,000 777 — Total $ 1,052,082 $ 34,159 $ 33,045 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following discloses the amount of expense included in interest expense on deposits and borrowings, related to the Company's fair value hedging instruments: Three Months Ended March 31, 2024 2023 Designated fair value hedge: Interest expense on deposits $ — $ (1,508) Interest expense on borrowings (645) (760) Total $ (645) $ (2,268) |
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 December 31, 2023: December 31, 2023 Line item on the balance sheet Carrying amount of the hedged item Cumulative decrease in fair value hedging adjustment included in the carrying amount of the hedged item Money market and savings deposits $ 198,143 (1) $ (4,497) Borrowings 98,715 (2) (673) Total $ 296,858 $ (5,170) (1) The carrying value also includes an unaccreted purchase accounting fair value premium of $2,640 as of December 31, 2023. (2) The carrying value also includes unamortized subordinated debt issuance costs of $612 as of December 31, 2023. |
Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments | The following discloses the amount included in other comprehensive loss, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2024 2023 Amount of loss recognized in other comprehensive loss, net of tax benefit of $62 and $70 $ (174) $ (197) 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, 2024 2023 Included in mortgage banking income: Interest rate lock commitments $ 869 $ 1,207 Forward commitments 100 (295) Futures contracts (2,997) 1,937 Option contracts — (664) Total $ (2,028) $ 2,185 |
Schedule of Offsetting Assets | Gross amounts not offset on the consolidated balance sheets Gross amounts recognized Gross amounts offset on the consolidated balance sheets Net amounts presented on the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount March 31, 2024 Derivative financial assets $ 36,145 $ — $ 36,145 $ 123 $ — $ 36,022 Derivative financial liabilities $ 5,386 $ — $ 5,386 $ 123 $ 5,263 $ — December 31, 2023 Derivative financial assets $ 31,468 $ — $ 31,468 $ 6,502 $ — $ 24,966 Derivative financial liabilities $ 11,330 $ — $ 11,330 $ 6,502 $ 4,828 $ — |
Schedule of Offsetting Liabilities | Gross amounts not offset on the consolidated balance sheets Gross amounts recognized Gross amounts offset on the consolidated balance sheets Net amounts presented on the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount March 31, 2024 Derivative financial assets $ 36,145 $ — $ 36,145 $ 123 $ — $ 36,022 Derivative financial liabilities $ 5,386 $ — $ 5,386 $ 123 $ 5,263 $ — December 31, 2023 Derivative financial assets $ 31,468 $ — $ 31,468 $ 6,502 $ — $ 24,966 Derivative financial liabilities $ 11,330 $ — $ 11,330 $ 6,502 $ 4,828 $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 are presented in the following tables: At March 31, 2024 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 415,927 $ — $ 415,927 Mortgage-backed securities - residential — 826,214 — 826,214 Mortgage-backed securities - commercial — 16,615 — 16,615 Municipal securities — 171,672 — 171,672 U.S. Treasury securities — 30,857 — 30,857 Corporate securities — 3,397 — 3,397 Total securities $ — $ 1,464,682 $ — $ 1,464,682 Loans held for sale, at fair value $ — $ 61,828 $ — $ 61,828 Mortgage servicing rights — — 165,674 165,674 Derivatives — 38,341 — 38,341 Financial Liabilities: Derivatives — 36,404 — 36,404 At December 31, 2023 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 203,956 $ — $ 203,956 Mortgage-backed securities - residential — 896,971 — 896,971 Mortgage-backed securities - commercial — 16,961 — 16,961 Municipal securities — 242,263 — 242,263 U.S. Treasury securities — 108,496 — 108,496 Corporate securities — 3,326 — 3,326 Total securities $ — $ 1,471,973 $ — $ 1,471,973 Loans held for sale, at fair value $ — $ 46,618 $ — $ 46,618 Mortgage servicing rights — — 164,249 164,249 Derivatives — 34,738 — 34,738 Financial Liabilities: Derivatives — 38,215 — 38,215 |
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 nonrecurring basis as of March 31, 2024 and December 31, 2023 are presented in the following tables: At March 31, 2024 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 644 $ 644 Collateral-dependent net loans held for Commercial and industrial — — 5,303 5,303 Construction — — 1,288 1,288 Residential real estate: 1-4 family mortgage — — 499 499 Residential line of credit — — 561 561 Commercial real estate: Owner occupied — — 752 752 Total collateral-dependent loans $ — $ — $ 8,403 $ 8,403 At December 31, 2023 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,400 $ 2,400 Collateral-dependent net loans held for Commercial and industrial $ — $ — $ 12,338 $ 12,338 Construction — — 203 203 Residential real estate: 1-4 family mortgage — — 429 429 Consumer and other — — 71 71 Total collateral-dependent loans $ — $ — $ 13,041 $ 13,041 The following table sets forth the changes in fair value associated with this portfolio for the three months ended March 31, 2023: 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: Paydowns and payoffs (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 |
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, 2024 and December 31, 2023 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: March 31, 2024 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 8,403 Valuation of collateral Discount for comparable sales 9%-58% Other real estate owned $ 644 Appraised value of property less costs to sell Discount for costs to sell 0%-15% December 31, 2023 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 13,041 Valuation of collateral Discount for comparable sales 10%-61% Other real estate owned $ 2,400 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, 2024 2023 Loans held for sale under a fair value option: Mortgage loans held for sale 61,828 46,618 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 20,876 21,229 Total loans held for sale $ 82,704 $ 67,847 |
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 mortgage loans held for sale measured at fair value as of March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 Aggregate fair value $ 61,828 $ 46,618 Aggregate unpaid principal balance 60,516 45,509 Difference $ 1,312 $ 1,109 |
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. Non-financial instruments are excluded from the table below. Fair Value March 31, 2024 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 870,730 $ 870,730 $ — $ — $ 870,730 Investment securities 1,464,682 — 1,464,682 — 1,464,682 Net loans held for investment 9,137,242 — — 8,809,892 8,809,892 Loans held for sale, at fair value 61,828 — 61,828 — 61,828 Interest receivable 53,506 892 6,774 45,840 53,506 Mortgage servicing rights 165,674 — — 165,674 165,674 Derivatives 38,341 — 38,341 — 38,341 Financial liabilities: Deposits: Without stated maturities $ 8,902,546 $ 8,902,546 $ — $ — $ 8,902,546 With stated maturities 1,602,382 — 1,594,332 — 1,594,332 Securities sold under agreements to repurchase and federal funds purchased 78,229 78,229 — — 78,229 Bank Term Funding Program 130,000 — 129,462 — 129,462 Subordinated debt, net 130,414 — — 123,284 123,284 Interest payable 20,504 4,187 15,942 375 20,504 Derivatives 36,404 — 36,404 — 36,404 Fair Value December 31, 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 810,932 $ 810,932 $ — $ — $ 810,932 Investment securities 1,471,973 — 1,471,973 — 1,471,973 Net loans held for investment 9,258,457 — — 9,068,518 9,068,518 Loans held for sale, at fair value 46,618 — 46,618 — 46,618 Interest receivable 52,715 388 8,551 43,776 52,715 Mortgage servicing rights 164,249 — — 164,249 164,249 Derivatives 34,738 — 34,738 — 34,738 Financial liabilities: Deposits: Without stated maturities $ 8,927,654 $ 8,927,654 $ — $ — $ 8,927,654 With stated maturities 1,620,633 — 1,614,400 — 1,614,400 Securities sold under agreements to repurchase and federal funds purchased 108,764 108,764 — — 108,764 Bank Term Funding Program 130,000 — 130,000 — 130,000 Subordinated debt, net 129,645 — — 122,671 122,671 Interest payable 18,809 4,104 13,205 1,500 18,809 Derivatives 38,215 — 38,215 — 38,215 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables present selected financial information with respect to the Company's reportable segments for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Banking Mortgage Consolidated Net interest income $ 97,094 $ 2,396 $ 99,490 Provisions for (reversal of) credit losses 838 (56) 782 Mortgage banking income — 15,626 15,626 Change in fair value of mortgage servicing rights, net of hedging (1) — (3,041) (3,041) Other noninterest (loss) income (4,794) 171 (4,623) Depreciation and amortization 2,708 133 2,841 Amortization of intangibles 789 — 789 Other noninterest expense 56,847 11,943 68,790 Income before income taxes $ 31,118 $ 3,132 $ 34,250 Income tax expense 6,300 Net income applicable to FB Financial Corporation and noncontrolling interest 27,950 Net income applicable to noncontrolling interest — Net income applicable to FB Financial Corporation $ 27,950 Total assets $ 11,979,904 $ 568,416 $ 12,548,320 Goodwill 242,561 — 242,561 (1) 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. Three Months Ended March 31, 2023 Banking Mortgage Consolidated Net interest income $ 101,287 $ 2,373 $ 103,660 Provisions for credit losses 212 279 491 Mortgage banking income — 15,493 15,493 Change in fair value of mortgage servicing rights, net of hedging (1) — (3,407) (3,407) Other noninterest income (loss) 11,493 (230) 11,263 Depreciation and amortization 2,049 179 2,228 Amortization of intangibles 990 — 990 Other noninterest expense 63,713 13,509 77,222 Income before income taxes $ 45,816 $ 262 $ 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 — Net income applicable to FB Financial Corporation $ 36,381 Total assets $ 12,534,348 $ 566,799 $ 13,101,147 Goodwill 242,561 — 242,561 (1) 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. |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,657,500 15.0 % $ 1,161,748 10.5 % N/A N/A FirstBank 1,622,562 14.7 % 1,159,716 10.5 % $ 1,104,491 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,419,546 12.8 % $ 940,462 8.5 % N/A N/A FirstBank 1,384,847 12.5 % 938,818 8.5 % $ 883,593 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,419,546 11.3 % $ 500,450 4.0 % N/A N/A FirstBank 1,384,847 11.1 % 499,885 4.0 % $ 624,857 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,389,546 12.6 % $ 774,498 7.0 % N/A N/A FirstBank 1,384,847 12.5 % 773,144 7.0 % $ 717,919 6.5 % December 31, 2023 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,635,848 14.5 % $ 1,182,028 10.5 % N/A N/A FirstBank 1,600,950 14.2 % 1,179,886 10.5 % $ 1,123,701 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,405,890 12.5 % $ 956,880 8.5 % N/A N/A FirstBank 1,370,991 12.2 % 955,145 8.5 % $ 898,960 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,405,890 11.3 % $ 496,485 4.0 % N/A N/A FirstBank 1,370,991 11.1 % 495,761 4.0 % $ 619,701 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,375,890 12.2 % $ 788,018 7.0 % N/A N/A FirstBank 1,370,991 12.2 % 786,590 7.0 % $ 730,405 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock Units | The following table summarizes changes in RSUs for the three months ended March 31, 2024: Restricted Stock Weighted Balance at beginning of period (unvested) 323,520 $ 37.52 Granted 155,047 35.60 Vested (18,777) 35.55 Forfeited (853) 40.19 Balance at end of period (unvested) 458,937 $ 36.95 |
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, 2024: Performance Stock Weighted Balance at beginning of period (unvested) 176,163 $ 40.86 Granted 97,738 35.60 Performance adjustment (1) (12,356) 43.20 Vested (34,915) 43.20 Forfeited or expired (969) 40.00 Balance at end of period (unvested) 225,661 $ 38.09 (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. |
Schedule of Share-Based Payment Arrangement, Performance Shares, Activity | The following table summarizes data related to the Company's outstanding PSUs as of March 31, 2024: Grant Year (1) Grant Price Performance Period PSUs Outstanding 2022 $ 44.44 2022 to 2024 49,836 2023 $ 37.17 2023 to 2025 78,087 2024 $ 35.60 2024 to 2026 97,738 (1) 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, 2024 | |
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, significant shareholders and directors of the Bank and their related interests is presented below: Loans outstanding at January 1, 2024 $ 49,073 New loans and advances 1,894 Change in related party status — Repayments (1,474) Loans outstanding at March 31, 2024 $ 49,493 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | Mar. 31, 2024 branch |
Accounting Policies [Abstract] | |
Number of full-service branches | 76 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Basic and Diluted Earnings Per Common Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings per common share: | ||
Net income applicable to FB Financial Corporation | $ 27,950 | $ 36,381 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 |
Earnings available to common shareholders | $ 27,950 | $ 36,381 |
Weighted average basic shares outstanding (in shares) | 46,874,882 | 46,679,618 |
Basic earnings per common share (in dollars per share) | $ 0.60 | $ 0.78 |
Diluted earnings per common share: | ||
Earnings available to common shareholders | $ 27,950 | $ 36,381 |
Weighted average basic shares outstanding (in shares) | 46,874,882 | 46,679,618 |
Weighted average diluted shares contingently issuable (in shares) | 123,991 | 85,536 |
Weighted average diluted shares outstanding (in shares) | 46,998,873 | 46,765,154 |
Diluted earnings per common share (in dollars per share) | $ 0.59 | $ 0.78 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted stock units outstanding considered to be antidilutive (in shares) | 2,949 | 159,946 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost of Securities and Fair Values (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | $ 1,648,280,000 | $ 1,658,779,000 |
Gross unrealized gains | 190,000 | 840,000 |
Gross unrealized losses | (183,788,000) | (187,646,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 1,464,682,000 | 1,471,973,000 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | 416,953,000 | 204,663,000 |
Gross unrealized gains | 145,000 | 470,000 |
Gross unrealized losses | (1,171,000) | (1,177,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 415,927,000 | 203,956,000 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | 984,473,000 | 1,057,389,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (158,259,000) | (160,418,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 826,214,000 | 896,971,000 |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | 17,899,000 | 18,186,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,284,000) | (1,225,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 16,615,000 | 16,961,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | 194,470,000 | 263,312,000 |
Gross unrealized gains | 45,000 | 370,000 |
Gross unrealized losses | (22,843,000) | (21,419,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 171,672,000 | 242,263,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | 30,985,000 | 111,729,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (128,000) | (3,233,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 30,857,000 | 108,496,000 |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total AFS debt securities | 3,500,000 | 3,500,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (103,000) | (174,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | $ 3,397,000 | $ 3,326,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Accrued interest receivable | $ 53,506,000 | $ 52,715,000 |
Allowance for credit losses for investments | $ 0 | $ 0 |
Number of securities in securities portfolio | security | 340 | 439 |
Number of securities in securities portfolio, unrealized loss position | security | 316 | 370 |
Equity securities without readily determinable market value | $ 25,589,000 | $ 25,191,000 |
Federal home loan bank stock | 33,948,000 | 34,190,000 |
Collateral Pledged | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities pledged | 949,958,000 | 929,546,000 |
Debt Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Accrued interest receivable | $ 5,409,000 | $ 7,212,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 213,001 | $ 40,403 |
Unrealized Loss, Less than 12 months | (525) | (169) |
Fair Value, 12 months or more | 990,287 | 1,228,463 |
Unrealized Loss, 12 months or more | (183,263) | (187,477) |
Fair Value, Total | 1,203,288 | 1,268,866 |
Unrealized Loss, Total | (183,788) | (187,646) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 203,870 | 25,923 |
Unrealized Loss, Less than 12 months | (484) | (21) |
Fair Value, 12 months or more | 7,251 | 14,040 |
Unrealized Loss, 12 months or more | (687) | (1,156) |
Fair Value, Total | 211,121 | 39,963 |
Unrealized Loss, Total | (1,171) | (1,177) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Unrealized Loss, Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 776,208 | 896,971 |
Unrealized Loss, 12 months or more | (158,259) | (160,418) |
Fair Value, Total | 776,208 | 896,971 |
Unrealized Loss, Total | (158,259) | (160,418) |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Unrealized Loss, Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 16,615 | 16,961 |
Unrealized Loss, 12 months or more | (1,284) | (1,225) |
Fair Value, Total | 16,615 | 16,961 |
Unrealized Loss, Total | (1,284) | (1,225) |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 9,131 | 14,480 |
Unrealized Loss, Less than 12 months | (41) | (148) |
Fair Value, 12 months or more | 155,959 | 188,669 |
Unrealized Loss, 12 months or more | (22,802) | (21,271) |
Fair Value, Total | 165,090 | 203,149 |
Unrealized Loss, Total | (22,843) | (21,419) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Unrealized Loss, Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 30,857 | 108,496 |
Unrealized Loss, 12 months or more | (128) | (3,233) |
Fair Value, Total | 30,857 | 108,496 |
Unrealized Loss, Total | (128) | (3,233) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Unrealized Loss, Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 3,397 | 3,326 |
Unrealized Loss, 12 months or more | (103) | (174) |
Fair Value, Total | 3,397 | 3,326 |
Unrealized Loss, Total | $ (103) | $ (174) |
Investment Securities - Sched_3
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized cost | ||
Due in one year or less | $ 34,073 | $ 64,776 |
Due in one to five years | 10,851 | 75,996 |
Due in five to ten years | 40,939 | 51,162 |
Due in over ten years | 560,045 | 391,270 |
Amortized cost, sub-total | 645,908 | 583,204 |
Total AFS debt securities | 1,648,280 | 1,658,779 |
Fair value | ||
Due in one year or less | 33,910 | 64,279 |
Due in one to five years | 10,080 | 71,801 |
Due in five to ten years | 39,932 | 49,630 |
Due in over ten years | 537,931 | 372,331 |
Fair value, sub-total | 621,853 | 558,041 |
Total AFS debt securities | 1,464,682 | 1,471,973 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 984,473 | 1,057,389 |
Total AFS debt securities | 984,473 | 1,057,389 |
Fair value | ||
Mortgage-backed securities | 826,214 | 896,971 |
Total AFS debt securities | 826,214 | 896,971 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 17,899 | 18,186 |
Total AFS debt securities | 17,899 | 18,186 |
Fair value | ||
Mortgage-backed securities | 16,615 | 16,961 |
Total AFS debt securities | $ 16,615 | $ 16,961 |
Investment Securities - Sched_4
Investment Securities - Schedule of Sales and Other Dispositions of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 207,882 | $ 0 |
Proceeds from maturities, prepayments and calls | 66,627 | 26,827 |
Gross realized gains | 90 | 0 |
Gross realized losses | $ 16,303 | $ 0 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Loans Outstanding by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | $ 9,288,909 | $ 9,408,783 | ||
Less: Allowance for credit losses on loans HFI | (151,667) | (150,326) | $ (138,809) | $ (134,192) |
Net loans held for investment | 9,137,242 | 9,258,457 | ||
Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,621,611 | 1,720,733 | ||
Less: Allowance for credit losses on loans HFI | (17,272) | (19,599) | (11,117) | (11,106) |
Construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,268,883 | 1,397,313 | ||
Less: Allowance for credit losses on loans HFI | (37,308) | (35,372) | (41,025) | (39,808) |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,577,824 | 1,568,552 | ||
Less: Allowance for credit losses on loans HFI | (26,128) | (26,505) | (27,213) | (26,141) |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 549,306 | 530,912 | ||
Less: Allowance for credit losses on loans HFI | (9,918) | (9,468) | (9,034) | (7,494) |
Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 615,081 | 603,804 | ||
Less: Allowance for credit losses on loans HFI | (8,973) | (8,842) | (6,619) | (6,490) |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,236,007 | 1,232,071 | ||
Less: Allowance for credit losses on loans HFI | (10,749) | (10,653) | (7,952) | (7,783) |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,991,526 | 1,943,525 | ||
Less: Allowance for credit losses on loans HFI | (23,949) | (22,965) | (21,868) | (21,916) |
Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 428,671 | 411,873 | ||
Less: Allowance for credit losses on loans HFI | $ (17,370) | $ (16,922) | $ (13,981) | $ (13,454) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans HFI - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||
Accrued interest receivable on loans | $ 45,840 | $ 43,776 | |
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | 201 | $ 181 | |
Number of modifications of loans | loan | 0 | ||
Financing receivables modified in prior 12 months with payment default | 0 | ||
Commercial and Industrial Loan | Federal Reserve Bank | |||
Financing Receivable, Past Due [Line Items] | |||
Deposit liabilities, collateral issued, financial instruments | 2,982,391 | 3,107,495 | |
FHLB Cincinnati | Residential Mortgage Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | 950,787 | 1,030,016 | |
FHLB Cincinnati | Commercial Loan | |||
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | $ 1,563,819 | $ 1,984,007 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Credit Quality of Loan Portfolio by Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 9,288,909 | $ 9,408,783 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 16,449 | 226,191 |
2023-2022 | 206,182 | 278,121 |
2022-2021 | 259,039 | 157,650 |
2021-2020 | 78,655 | 42,924 |
2020-2019 | 39,863 | 70,707 |
Prior | 135,654 | 79,652 |
Revolving Loans Amortized Cost Basis | 885,769 | 865,488 |
Total | 1,621,611 | 1,720,733 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 14 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 7 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 201 |
Current and prior-period gross charge-offs, 2021-2020 | 14 | 22 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 7 | 87 |
Revolving Loans Amortized Cost Basis | 22 | 131 |
Total | 43 | |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 16,449 | 225,734 |
2023-2022 | 202,050 | 255,921 |
2022-2021 | 237,139 | 151,492 |
2021-2020 | 72,725 | 39,897 |
2020-2019 | 36,876 | 70,302 |
Prior | 129,057 | 73,415 |
Revolving Loans Amortized Cost Basis | 864,065 | 839,918 |
Total | 1,558,361 | 1,656,679 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 3,675 | 17,947 |
2022-2021 | 17,572 | 3,083 |
2021-2020 | 2,913 | 0 |
2020-2019 | 0 | 151 |
Prior | 247 | 108 |
Revolving Loans Amortized Cost Basis | 4,521 | 7,549 |
Total | 28,928 | 28,838 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 457 |
2023-2022 | 457 | 4,253 |
2022-2021 | 4,328 | 3,075 |
2021-2020 | 3,017 | 3,027 |
2020-2019 | 2,987 | 254 |
Prior | 6,350 | 6,129 |
Revolving Loans Amortized Cost Basis | 17,183 | 18,021 |
Total | 34,322 | 35,216 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 39,360 | 179,930 |
2023-2022 | 193,914 | 684,395 |
2022-2021 | 560,584 | 152,739 |
2021-2020 | 129,976 | 54,519 |
2020-2019 | 43,408 | 39,140 |
Prior | 87,370 | 50,644 |
Revolving Loans Amortized Cost Basis | 214,271 | 235,946 |
Total | 1,268,883 | 1,397,313 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 0 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 0 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 0 |
Current and prior-period gross charge-offs, 2021-2020 | 0 | 0 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 92 | 0 |
Total | 92 | 0 |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 39,360 | 179,929 |
2023-2022 | 193,203 | 677,387 |
2022-2021 | 551,909 | 148,312 |
2021-2020 | 124,878 | 46,697 |
2020-2019 | 36,531 | 39,140 |
Prior | 86,713 | 49,954 |
Revolving Loans Amortized Cost Basis | 187,955 | 208,491 |
Total | 1,220,549 | 1,349,910 |
Construction | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 1 |
2023-2022 | 711 | 4,659 |
2022-2021 | 4,689 | 2,943 |
2021-2020 | 2,508 | 1,202 |
2020-2019 | 0 | 0 |
Prior | 657 | 690 |
Revolving Loans Amortized Cost Basis | 12,000 | 12,000 |
Total | 20,565 | 21,495 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 2,349 |
2022-2021 | 3,986 | 1,484 |
2021-2020 | 2,590 | 6,620 |
2020-2019 | 6,877 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 14,316 | 15,455 |
Total | 27,769 | 25,908 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 29,982 |
2023-2022 | 29,861 | 151,495 |
2022-2021 | 193,591 | 223,889 |
2021-2020 | 244,770 | 92,745 |
2020-2019 | 54,744 | 29,933 |
Prior | 69,162 | 44,551 |
Revolving Loans Amortized Cost Basis | 22,953 | 31,209 |
Total | 615,081 | 603,804 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 0 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 0 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 0 |
Current and prior-period gross charge-offs, 2021-2020 | 0 | 0 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Residential real estate: | Multi-family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 29,982 |
2023-2022 | 29,861 | 151,495 |
2022-2021 | 193,591 | 223,889 |
2021-2020 | 244,770 | 92,745 |
2020-2019 | 54,744 | 29,933 |
Prior | 68,104 | 43,479 |
Revolving Loans Amortized Cost Basis | 22,953 | 31,209 |
Total | 614,023 | 602,732 |
Residential real estate: | Multi-family mortgage | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 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] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
Prior | 1,058 | 1,072 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,058 | 1,072 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 43,291 | 198,613 |
2023-2022 | 187,528 | 503,193 |
2022-2021 | 497,670 | 403,364 |
2021-2020 | 397,043 | 149,330 |
2020-2019 | 148,039 | 82,595 |
Prior | 304,253 | 231,457 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,577,824 | 1,568,552 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 0 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 18 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 0 |
Current and prior-period gross charge-offs, 2021-2020 | 0 | 4 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 0 | 24 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 46 |
Residential real estate: | 1-to-4 family mortgage | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 43,291 | 198,537 |
2023-2022 | 187,203 | 500,628 |
2022-2021 | 492,643 | 399,338 |
2021-2020 | 393,806 | 145,484 |
2020-2019 | 143,618 | 81,905 |
Prior | 298,828 | 226,587 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,559,389 | 1,552,479 |
Residential real estate: | 1-to-4 family mortgage | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 76 |
2023-2022 | 325 | 2,565 |
2022-2021 | 5,027 | 4,026 |
2021-2020 | 3,237 | 3,846 |
2020-2019 | 4,421 | 690 |
Prior | 5,425 | 4,870 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 18,435 | 16,073 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 549,306 | 530,912 |
Total | 549,306 | 530,912 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 0 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 0 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 0 |
Current and prior-period gross charge-offs, 2021-2020 | 0 | 0 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 20 | 0 |
Total | 20 | 0 |
Residential real estate: | Residential line of credit | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 547,097 | 528,439 |
Total | 547,097 | 528,439 |
Residential real estate: | Residential line of credit | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 2,209 | 2,473 |
Total | 2,209 | 2,473 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 24,636 | 118,030 |
2023-2022 | 112,168 | 268,798 |
2022-2021 | 260,941 | 233,084 |
2021-2020 | 233,181 | 115,397 |
2020-2019 | 113,546 | 152,060 |
Prior | 436,957 | 289,659 |
Revolving Loans Amortized Cost Basis | 54,578 | 55,043 |
Total | 1,236,007 | 1,232,071 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 0 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 0 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 144 |
Current and prior-period gross charge-offs, 2021-2020 | 0 | 0 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 144 |
Commercial real estate: | Owner-occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 24,636 | 118,030 |
2023-2022 | 112,168 | 261,196 |
2022-2021 | 253,377 | 231,241 |
2021-2020 | 231,354 | 115,397 |
2020-2019 | 113,481 | 151,146 |
Prior | 428,182 | 281,253 |
Revolving Loans Amortized Cost Basis | 53,516 | 53,970 |
Total | 1,216,714 | 1,212,233 |
Commercial real estate: | Owner-occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 1,297 |
2022-2021 | 1,283 | 1,827 |
2021-2020 | 1,811 | 0 |
2020-2019 | 0 | 154 |
Prior | 2,547 | 2,617 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 5,641 | 5,895 |
Commercial real estate: | Owner-occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 6,305 |
2022-2021 | 6,281 | 16 |
2021-2020 | 16 | 0 |
2020-2019 | 65 | 760 |
Prior | 6,228 | 5,789 |
Revolving Loans Amortized Cost Basis | 1,062 | 1,073 |
Total | 13,652 | 13,943 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 3,755 | 47,026 |
2023-2022 | 45,516 | 474,560 |
2022-2021 | 533,649 | 483,854 |
2021-2020 | 473,517 | 117,429 |
2020-2019 | 122,699 | 178,829 |
Prior | 769,300 | 598,250 |
Revolving Loans Amortized Cost Basis | 43,090 | 43,577 |
Total | 1,991,526 | 1,943,525 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 0 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 0 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 0 |
Current and prior-period gross charge-offs, 2021-2020 | 0 | 0 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Commercial real estate: | Non-owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 3,755 | 47,026 |
2023-2022 | 45,516 | 474,560 |
2022-2021 | 533,649 | 478,878 |
2021-2020 | 468,553 | 117,429 |
2020-2019 | 122,699 | 178,448 |
Prior | 750,943 | 580,168 |
Revolving Loans Amortized Cost Basis | 43,090 | 43,577 |
Total | 1,968,205 | 1,920,086 |
Commercial real estate: | Non-owner occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 3,975 |
2021-2020 | 3,966 | 0 |
2020-2019 | 0 | 0 |
Prior | 83 | 10,435 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 4,049 | 14,410 |
Commercial real estate: | Non-owner occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 0 |
2022-2021 | 0 | 1,001 |
2021-2020 | 998 | 0 |
2020-2019 | 0 | 381 |
Prior | 18,274 | 7,647 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 19,272 | 9,029 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 25,887 | 104,927 |
2023-2022 | 109,574 | 92,582 |
2022-2021 | 88,221 | 47,749 |
2021-2020 | 44,966 | 36,747 |
2020-2019 | 35,264 | 25,304 |
Prior | 118,910 | 97,674 |
Revolving Loans Amortized Cost Basis | 5,849 | 6,890 |
Total | 428,671 | 411,873 |
Current and prior-period gross charge-offs, 2024-2023 | 155 | 1,463 |
Current and prior-period gross charge-offs, -2023-2022 | 344 | 564 |
Current and prior-period gross charge-offs, 2022-2021 | 31 | 139 |
Current and prior-period gross charge-offs, 2021-2020 | 96 | 201 |
Current and prior-period gross charge-offs, 2020-2019 | 36 | 110 |
Current and prior-period gross charge-offs, prior | 110 | 372 |
Revolving Loans Amortized Cost Basis | 0 | 2 |
Total | 772 | 2,851 |
Consumer and other | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 25,887 | 104,399 |
2023-2022 | 109,013 | 91,557 |
2022-2021 | 87,312 | 45,187 |
2021-2020 | 42,673 | 34,928 |
2020-2019 | 33,415 | 24,040 |
Prior | 114,071 | 93,833 |
Revolving Loans Amortized Cost Basis | 5,849 | 6,890 |
Total | 418,220 | 400,834 |
Consumer and other | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 528 |
2023-2022 | 561 | 1,025 |
2022-2021 | 909 | 2,562 |
2021-2020 | 2,293 | 1,819 |
2020-2019 | 1,849 | 1,264 |
Prior | 4,839 | 3,841 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 10,451 | 11,039 |
Total consumer type loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 69,178 | 303,540 |
2023-2022 | 297,102 | 595,775 |
2022-2021 | 585,891 | 451,113 |
2021-2020 | 442,009 | 186,077 |
2020-2019 | 183,303 | 107,899 |
Prior | 423,163 | 329,131 |
Revolving Loans Amortized Cost Basis | 555,155 | 537,802 |
Total | 2,555,801 | 2,511,337 |
Current and prior-period gross charge-offs, 2024-2023 | 155 | 1,463 |
Current and prior-period gross charge-offs, -2023-2022 | 344 | 582 |
Current and prior-period gross charge-offs, 2022-2021 | 31 | 139 |
Current and prior-period gross charge-offs, 2021-2020 | 96 | 205 |
Current and prior-period gross charge-offs, 2020-2019 | 36 | 110 |
Current and prior-period gross charge-offs, prior | 110 | 396 |
Revolving Loans Amortized Cost Basis | 20 | 2 |
Total | 792 | 2,897 |
Total consumer type loans | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 69,178 | 302,936 |
2023-2022 | 296,216 | 592,185 |
2022-2021 | 579,955 | 444,525 |
2021-2020 | 436,479 | 180,412 |
2020-2019 | 177,033 | 105,945 |
Prior | 412,899 | 320,420 |
Revolving Loans Amortized Cost Basis | 552,946 | 535,329 |
Total | 2,524,706 | 2,481,752 |
Total consumer type loans | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 604 |
2023-2022 | 886 | 3,590 |
2022-2021 | 5,936 | 6,588 |
2021-2020 | 5,530 | 5,665 |
2020-2019 | 6,270 | 1,954 |
Prior | 10,264 | 8,711 |
Revolving Loans Amortized Cost Basis | 2,209 | 2,473 |
Total | 31,095 | 29,585 |
Total Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 84,200 | 601,159 |
2023-2022 | 587,641 | 1,857,369 |
2022-2021 | 1,807,804 | 1,251,216 |
2021-2020 | 1,160,099 | 423,014 |
2020-2019 | 374,260 | 470,669 |
Prior | 1,498,443 | 1,062,756 |
Revolving Loans Amortized Cost Basis | 1,220,661 | 1,231,263 |
Total | 6,733,108 | 6,897,446 |
Current and prior-period gross charge-offs, 2024-2023 | 0 | 14 |
Current and prior-period gross charge-offs, -2023-2022 | 0 | 7 |
Current and prior-period gross charge-offs, 2022-2021 | 0 | 345 |
Current and prior-period gross charge-offs, 2021-2020 | 14 | 22 |
Current and prior-period gross charge-offs, 2020-2019 | 0 | 0 |
Current and prior-period gross charge-offs, prior | 7 | 87 |
Revolving Loans Amortized Cost Basis | 114 | 131 |
Total | 135 | 606 |
Total Commercial Loans | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 84,200 | 600,701 |
2023-2022 | 582,798 | 1,820,559 |
2022-2021 | 1,769,665 | 1,233,812 |
2021-2020 | 1,142,280 | 412,165 |
2020-2019 | 364,331 | 468,969 |
Prior | 1,462,999 | 1,028,269 |
Revolving Loans Amortized Cost Basis | 1,171,579 | 1,177,165 |
Total | 6,577,852 | 6,741,640 |
Total Commercial Loans | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 1 |
2023-2022 | 4,386 | 23,903 |
2022-2021 | 23,544 | 11,828 |
2021-2020 | 11,198 | 1,202 |
2020-2019 | 0 | 305 |
Prior | 3,534 | 13,850 |
Revolving Loans Amortized Cost Basis | 16,521 | 19,549 |
Total | 59,183 | 70,638 |
Total Commercial Loans | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 457 |
2023-2022 | 457 | 12,907 |
2022-2021 | 14,595 | 5,576 |
2021-2020 | 6,621 | 9,647 |
2020-2019 | 9,929 | 1,395 |
Prior | 31,910 | 20,637 |
Revolving Loans Amortized Cost Basis | 32,561 | 34,549 |
Total | $ 96,073 | $ 85,168 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Analysis of Aging by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 9,288,909 | $ 9,408,783 |
90 days or more and accruing interest | 12,858 | 12,693 |
Nonaccrual loans | 54,892 | 48,230 |
30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 37,473 | 47,043 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 9,183,686 | 9,300,817 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,621,611 | 1,720,733 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 24,643 | 21,730 |
Commercial and industrial | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,606 | 732 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,595,362 | 1,698,271 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,268,883 | 1,397,313 |
90 days or more and accruing interest | 585 | 165 |
Nonaccrual loans | 5,077 | 2,872 |
Construction | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,474 | 6,579 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,261,747 | 1,387,697 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,577,824 | 1,568,552 |
90 days or more and accruing interest | 9,610 | 9,355 |
Nonaccrual loans | 8,825 | 6,718 |
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 | 17,881 | 21,768 |
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 | 1,541,508 | 1,530,711 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 549,306 | 530,912 |
90 days or more and accruing interest | 1,097 | 1,337 |
Nonaccrual loans | 1,112 | 1,136 |
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 | 1,717 | 2,464 |
Residential real estate: | Residential line of credit | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 545,380 | 525,975 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 615,081 | 603,804 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 31 | 32 |
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 | 615,050 | 603,772 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,236,007 | 1,232,071 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 3,069 | 3,188 |
Commercial real estate: | Owner-occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 465 | 480 |
Commercial real estate: | Owner-occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,232,473 | 1,228,403 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,991,526 | 1,943,525 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 3,250 | 3,351 |
Commercial real estate: | Non-owner occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 3,631 | 4,059 |
Commercial real estate: | Non-owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,984,645 | 1,936,115 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 428,671 | 411,873 |
90 days or more and accruing interest | 1,566 | 1,836 |
Nonaccrual loans | 8,885 | 9,203 |
Consumer and other | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 10,699 | 10,961 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 407,521 | $ 389,873 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | $ 26,919 | $ 14,310 | |
Nonaccrual with related allowance | 27,973 | 33,920 | |
Related allowance | 5,021 | 5,696 | |
Year to date Interest Income | 385 | $ 443 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 14,465 | 3,678 | |
Nonaccrual with related allowance | 10,178 | 18,052 | |
Related allowance | 3,946 | 5,011 | |
Year to date Interest Income | 224 | 20 | |
Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 3,152 | 2,267 | |
Nonaccrual with related allowance | 1,925 | 605 | |
Related allowance | 293 | 59 | |
Year to date Interest Income | 61 | 6 | |
Residential real estate: | 1-to-4 family mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 3,336 | 1,444 | |
Nonaccrual with related allowance | 5,489 | 5,274 | |
Related allowance | 167 | 103 | |
Year to date Interest Income | 0 | 79 | |
Residential real estate: | Residential line of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 812 | 685 | |
Nonaccrual with related allowance | 300 | 451 | |
Related allowance | 5 | 8 | |
Year to date Interest Income | 16 | 24 | |
Residential real estate: | Multi-family mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 0 | 0 | |
Nonaccrual with related allowance | 31 | 32 | |
Related allowance | 1 | 1 | |
Year to date Interest Income | 0 | 1 | |
Commercial real estate: | Owner-occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 1,935 | 2,920 | |
Nonaccrual with related allowance | 1,134 | 268 | |
Related allowance | 145 | 15 | |
Year to date Interest Income | 49 | 58 | |
Commercial real estate: | Non-owner occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 3,219 | 3,316 | |
Nonaccrual with related allowance | 31 | 35 | |
Related allowance | 1 | 1 | |
Year to date Interest Income | 35 | 82 | |
Consumer and other | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual with no related allowance | 0 | 0 | |
Nonaccrual with related allowance | 8,885 | 9,203 | |
Related allowance | 463 | $ 498 | |
Year to date Interest Income | $ 0 | $ 173 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans HFI - Modifications of Outstanding Balance (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 24,689 |
% of total class of financing receivables | 0.30% |
Payment deferral and term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 14,316 |
Term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 10,373 |
Construction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 14,316 |
% of total class of financing receivables | 1.10% |
Construction | Payment deferral and term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 14,316 |
Construction | Term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial real estate | Non-owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 10,351 |
% of total class of financing receivables | 0.50% |
Commercial real estate | Payment deferral and term extension | Non-owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 0 |
Commercial real estate | Term extension | Non-owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 10,351 |
Consumer and other | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 22 |
% of total class of financing receivables | 0% |
Consumer and other | Payment deferral and term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 0 |
Consumer and other | Term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 22 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans HFI - Financial Effects of Loan Modifications (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Construction | Payment deferral and term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average of loans (in years) | 6 months |
Construction | Term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average of loans (in years) | 3 months |
Commercial real estate | Payment deferral and term extension | Non-owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average of loans (in years) | 6 months |
Commercial real estate | Term extension | Non-owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average of loans (in years) | 0 months |
Consumer and other | Payment deferral and term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average of loans (in years) | 42 months |
Consumer and other | Term extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average of loans (in years) | 0 months |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans HFI - Payment Status Recorded Investment (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | $ 24,933 |
Nonaccrual loans | 244 |
30-89 days past due and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
90 days or more and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Loans current on payments and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 24,689 |
Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 179 |
Nonaccrual loans | 179 |
Commercial and industrial | 30-89 days past due and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Commercial and industrial | 90 days or more and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Commercial and industrial | Loans current on payments and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Construction | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 14,316 |
Nonaccrual loans | 0 |
Construction | 30-89 days past due and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Construction | 90 days or more and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Construction | Loans current on payments and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 14,316 |
Residential real estate | 1-to-4 family mortgage | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 65 |
Nonaccrual loans | 65 |
Residential real estate | 30-89 days past due and accruing interest | 1-to-4 family mortgage | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Residential real estate | 90 days or more and accruing interest | 1-to-4 family mortgage | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Residential real estate | Loans current on payments and accruing interest | 1-to-4 family mortgage | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Commercial real estate | Non-owner occupied | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 10,351 |
Nonaccrual loans | 0 |
Commercial real estate | 30-89 days past due and accruing interest | Non-owner occupied | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Commercial real estate | 90 days or more and accruing interest | Non-owner occupied | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Commercial real estate | Loans current on payments and accruing interest | Non-owner occupied | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 10,351 |
Consumer and other | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 22 |
Nonaccrual loans | 0 |
Consumer and other | 30-89 days past due and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Consumer and other | 90 days or more and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 0 |
Consumer and other | Loans current on payments and accruing interest | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | $ 22 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | $ 151,667 | $ 150,326 | $ 138,809 | $ 134,192 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 17,272 | 19,599 | 11,117 | 11,106 |
Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 37,308 | 35,372 | 41,025 | 39,808 |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 26,128 | 26,505 | 27,213 | 26,141 |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 9,918 | 9,468 | 9,034 | 7,494 |
Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 8,973 | 8,842 | 6,619 | 6,490 |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 10,749 | 10,653 | 7,952 | 7,783 |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 23,949 | 22,965 | 21,868 | 21,916 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 17,370 | 16,922 | $ 13,981 | $ 13,454 |
Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 46,807 | 20,189 | ||
Real Estate | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 86 | 0 | ||
Real Estate | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 24,744 | 8,224 | ||
Real Estate | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,893 | 5,317 | ||
Real Estate | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,384 | 1,245 | ||
Real Estate | Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Real Estate | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,969 | 1,975 | ||
Real Estate | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 14,731 | 3,316 | ||
Real Estate | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 112 | |||
Farmland | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 9,494 | 1,523 | ||
Farmland | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 363 | 363 | ||
Farmland | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,653 | 0 | ||
Farmland | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Farmland | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Farmland | Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Farmland | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 7,478 | 1,160 | ||
Farmland | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Farmland | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Business Assets | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 23,660 | 20,599 | ||
Business Assets | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 23,660 | 20,599 | ||
Business Assets | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Business Assets | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Business Assets | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Total | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 79,961 | 42,311 | ||
Individually assessed allowance for credit loss | 4,349 | 5,136 | ||
Total | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 24,109 | 20,962 | ||
Individually assessed allowance for credit loss | 3,883 | 4,946 | ||
Total | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 26,397 | 8,224 | ||
Individually assessed allowance for credit loss | 265 | 30 | ||
Total | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,893 | 5,317 | ||
Individually assessed allowance for credit loss | 58 | 129 | ||
Total | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,384 | 1,245 | ||
Individually assessed allowance for credit loss | 12 | 10 | ||
Total | Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Individually assessed allowance for credit loss | 0 | |||
Total | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 9,447 | 3,135 | ||
Individually assessed allowance for credit loss | 131 | 0 | ||
Total | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 14,731 | 3,316 | ||
Individually assessed allowance for credit loss | $ 0 | 0 | ||
Total | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 112 | |||
Individually assessed allowance for credit loss | $ 21 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Changes in Allowance for Credit Losses on Loans HFI by Class of Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 150,326 | $ 134,192 |
(Reversal of) provision for credit losses on loans HFI | 1,852 | 4,997 |
Recoveries of loans previously charged-off | 416 | 387 |
Loans charged off | (927) | (767) |
Balance at end of period | 151,667 | 138,809 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 19,599 | 11,106 |
(Reversal of) provision for credit losses on loans HFI | (2,298) | (10) |
Recoveries of loans previously charged-off | 14 | 67 |
Loans charged off | (43) | (46) |
Balance at end of period | 17,272 | 11,117 |
Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 35,372 | 39,808 |
(Reversal of) provision for credit losses on loans HFI | 2,028 | 1,217 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | (92) | 0 |
Balance at end of period | 37,308 | 41,025 |
Residential real estate: | 1-to-4 family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 26,505 | 26,141 |
(Reversal of) provision for credit losses on loans HFI | (433) | 1,073 |
Recoveries of loans previously charged-off | 56 | 15 |
Loans charged off | 0 | (16) |
Balance at end of period | 26,128 | 27,213 |
Residential real estate: | Residential line of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 9,468 | 7,494 |
(Reversal of) provision for credit losses on loans HFI | 470 | 1,540 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | (20) | 0 |
Balance at end of period | 9,918 | 9,034 |
Residential real estate: | Multi-family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 8,842 | 6,490 |
(Reversal of) provision for credit losses on loans HFI | 131 | 129 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Balance at end of period | 8,973 | 6,619 |
Commercial real estate: | Owner-occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 10,653 | 7,783 |
(Reversal of) provision for credit losses on loans HFI | 56 | 103 |
Recoveries of loans previously charged-off | 40 | 66 |
Loans charged off | 0 | 0 |
Balance at end of period | 10,749 | 7,952 |
Commercial real estate: | Non-owner occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 22,965 | 21,916 |
(Reversal of) provision for credit losses on loans HFI | 984 | (48) |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Balance at end of period | 23,949 | 21,868 |
Consumer and other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 16,922 | 13,454 |
(Reversal of) provision for credit losses on loans HFI | 914 | 993 |
Recoveries of loans previously charged-off | 306 | 239 |
Loans charged off | (772) | (705) |
Balance at end of period | $ 17,370 | $ 13,981 |
Other Real Estate Owned - Sched
Other Real Estate Owned - Schedule of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 3,192 | $ 5,794 |
Transfers from loans | 753 | 235 |
Proceeds from sale of other real estate owned | (389) | (2,031) |
Gain on sale of other real estate owned | 57 | 87 |
Balance at end of period | $ 3,613 | $ 4,085 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 2,344 | $ 2,414 |
Total foreclosure proceedings in process | $ 4,330 | $ 3,377 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 lease | |
Lessee, Lease, Description [Line Items] | |
Lessee, number of operating leases | 48 |
Lessee, number of finance leases | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating and finance lease, renewal term | 20 years |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Company's Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating leases | $ 51,421 | $ 54,295 |
Finance leases | 1,228 | 1,256 |
Total right-of-use assets | 52,649 | 55,551 |
Operating leases | 64,562 | 67,643 |
Finance leases | 1,302 | 1,326 |
Total lease liabilities | $ 65,864 | $ 68,969 |
Weighted average remaining lease term (in years) - operating | 11 years 6 months | 11 years 7 months 6 days |
Weighted average remaining lease term (in years) - finance | 11 years 1 month 6 days | 11 years 4 months 24 days |
Weighted average discount rate - operating | 3.40% | 3.39% |
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 - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Amortization of right-of-use asset | $ 1,927 | $ 1,815 |
Short-term lease cost | 97 | 121 |
Variable lease cost | 336 | 298 |
Gain on lease modifications and terminations | 0 | (72) |
Interest on lease liabilities | 6 | 6 |
Amortization of right-of-use asset | 28 | 28 |
Sublease income | (172) | (281) |
Total lease cost | $ 2,222 | $ 1,915 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
March 31, 2025 | $ 6,358 | |
March 31, 2026 | 8,454 | |
March 31, 2027 | 8,314 | |
March 31, 2028 | 7,864 | |
March 31, 2029 | 6,939 | |
Thereafter | 44,094 | |
Total undiscounted future minimum lease payments | 82,023 | |
Less: imputed interest | (17,461) | |
Operating leases | 64,562 | $ 67,643 |
Finance Lease | ||
March 31, 2025 | 90 | |
March 31, 2026 | 121 | |
March 31, 2027 | 123 | |
March 31, 2028 | 125 | |
March 31, 2029 | 127 | |
Thereafter | 850 | |
Total undiscounted future minimum lease payments | 1,436 | |
Less: imputed interest | (134) | |
Finance leases | $ 1,302 | $ 1,326 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Carrying value at beginning of period | $ 164,249 | $ 168,365 |
Capitalization | 1,131 | 1,788 |
Change in fair value: | ||
Due to payoffs/paydowns | (2,724) | (2,520) |
Due to change in valuation inputs or assumptions | 3,018 | (2,754) |
Carrying value at end of period | $ 165,674 | $ 164,879 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Servicing income | $ 7,347 | $ 7,768 |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees, Other expense | Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees, Other expense |
Change in fair value of mortgage servicing rights | $ 294 | $ (5,274) |
Change in fair value of derivative hedging instruments | (3,335) | 1,867 |
Servicing income | 4,306 | 4,361 |
Servicing expenses | 1,947 | 1,883 |
Net servicing income (loss) | $ 2,359 | $ 2,478 |
Mortgage Servicing Rights - S_3
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance of mortgage loans sold and serviced for others | $ 10,651,075 | $ 10,762,906 |
Weighted-average prepayment speed (CPR) | 6.06% | 6.19% |
Estimated impact on fair value of a 10% increase | $ (4,383) | $ (4,616) |
Estimated impact on fair value of a 20% increase | $ (8,490) | $ (8,924) |
Discount rate | 10.20% | 9.62% |
Estimated impact on fair value of a 100 bp increase | $ (7,633) | $ (7,637) |
Estimated impact on fair value of a 200 bp increase | $ (14,617) | $ (14,624) |
Weighted-average coupon interest rate | 3.50% | 3.47% |
Weighted-average servicing fee (basis points) | 0.27% | 0.27% |
Weighted-average remaining maturity (in months) | 335 months | 334 months |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 92,350 | $ 63,591 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Federal taxes calculated at statutory rate | $ 7,192 | $ 9,676 |
Increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 133 | 251 |
Expense from equity based compensation | 55 | 115 |
Municipal interest income, net of interest disallowance | (373) | (456) |
Bank-owned life insurance | (90) | (127) |
Section 162(m) limitation | 160 | 127 |
Other | (777) | 111 |
Income tax expense, as reported | $ 6,300 | $ 9,697 |
Federal taxes calculated at statutory rate, percent | 21% | 21% |
Percentage increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 0.40% | 0.60% |
Expense from equity based compensation | 0.20% | 0.30% |
Municipal interest income, net of interest disallowance | (1.10%) | (1.00%) |
Bank-owned life insurance | (0.30%) | (0.30%) |
Section 162(m) limitation | 0.50% | 0.20% |
Other | (2.30%) | 0.20% |
Total | 18.40% | 21% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 2,857,098 | $ 2,983,071 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 2,771,611 | 2,906,016 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 85,487 | $ 77,055 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Floating interest rate loan commitments | $ 2,388,134 | $ 2,459,669 | |
Total principal amount of loans repurchased or indemnified | $ 2,078 | $ 3,326 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Allowance of Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 150,326 | $ 134,192 |
Balance at end of period | 151,667 | 138,809 |
Unfunded Commitments | ||
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | 8,770 | 22,969 |
Reversal of credit losses on unfunded commitments | (1,070) | (4,506) |
Balance at end of period | $ 7,700 | $ 18,463 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 899 | $ 1,621 |
Provision for (reversal of) loan repurchases or indemnifications | 50 | (250) |
Losses on loans repurchased or indemnified | (19) | (13) |
Balance at end of period | $ 930 | $ 1,358 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Cash collateral pledged on derivatives | $ 13,585,000 | $ 14,042,000 | |
Designated as hedging | Money market and savings deposits | |||
Derivative [Line Items] | |||
Terminated fair value hedge decrease amount | (2,745,000) | ||
Designated as hedging | Interest expense on deposits | |||
Derivative [Line Items] | |||
Gain (loss) included in income statement | 247,000 | $ 197,000 | |
Terminated fair value hedge increase amount | (1,843,000) | ||
Interest Rate Swap | Fixed Rate Money Market Deposits | Designated as hedging | |||
Derivative [Line Items] | |||
Notional Amount | 200,000,000 | ||
Estimated fair value | $ (4,588,000) | (4,497,000) | |
Interest Rate Swap | Subordinated debt, net | Designated as hedging | |||
Derivative [Line Items] | |||
Notional Amount | 100,000,000 | ||
Estimated fair value | $ (673,000) |
Derivatives - Schedule Income I
Derivatives - Schedule Income Included In Interest Expense On Borrowings And Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | $ 99,490 | $ 103,660 |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | (645) | (2,268) |
Interest Rate Swap | Designated as Hedging Instrument | Fixed Rate Money Market Deposits | ||
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | 0 | (1,508) |
Interest Rate Swap | Designated as Hedging Instrument | Subordinated debt, net | ||
Derivatives, Fair Value [Line Items] | ||
Interest (expense) income, net | $ (645) | $ (760) |
Derivatives - Schedule of Balan
Derivatives - Schedule of Balance Sheet (Details) - Interest Rate Swap $ in Thousands | Dec. 31, 2023 USD ($) |
Derivative [Line Items] | |
Carrying amount of the hedged item | $ 296,858 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (5,170) |
Money market and savings deposits | |
Derivative [Line Items] | |
Carrying amount of the hedged item | 198,143 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (4,497) |
Purchase accounting fair value premium | 2,640 |
Borrowings | |
Derivative [Line Items] | |
Carrying amount of the hedged item | 98,715 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (673) |
Borrowings | Subordinated debt, net | |
Derivative [Line Items] | |
Unamortized subordinated debt issuance costs | $ 612 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,143,410 | $ 1,052,082 |
Asset | 37,998 | 34,159 |
Liability | (36,404) | (33,045) |
Not designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 551,095 | 569,865 |
Asset | 35,925 | 32,179 |
Liability | (35,954) | (32,184) |
Not designated as hedging | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 226,500 | 159,000 |
Asset | 0 | 0 |
Liability | (261) | (861) |
Not designated as hedging | Interest rate-lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 130,315 | 69,217 |
Asset | 2,073 | 1,203 |
Liability | 0 | 0 |
Not designated as hedging | Futures contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 235,500 | 254,000 |
Asset | 0 | 777 |
Liability | (189) | 0 |
Designated as hedging | Interest Rate Swap | Subordinated debt, net | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 30,000 | |
Asset | $ 343 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Liability | $ 579 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivatives, Fair Value [Line Items] | ||
Amount of loss recognized in other comprehensive loss, net of tax benefit of $62 and $70 | $ (174) | $ (197) |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | (62) | (70) |
Designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Amount of loss recognized in other comprehensive loss, net of tax benefit of $62 and $70 | (174) | (197) |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (2,028) | 2,185 |
Not designated as hedging | Interest rate-lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 869 | 1,207 |
Not designated as hedging | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 100 | (295) |
Not designated as hedging | Futures contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (2,997) | 1,937 |
Not designated as hedging | Option contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | $ 0 | $ (664) |
Derivatives (Details)
Derivatives (Details) - Not designated as hedging - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 1,143,410 | $ 1,052,082 |
Asset | 37,998 | 34,159 |
Liability | 36,404 | 33,045 |
Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 551,095 | 569,865 |
Asset | 35,925 | 32,179 |
Liability | 35,954 | 32,184 |
Forward commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 226,500 | 159,000 |
Asset | 0 | 0 |
Liability | 261 | 861 |
Interest rate-lock commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 130,315 | 69,217 |
Asset | 2,073 | 1,203 |
Liability | 0 | 0 |
Futures contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 235,500 | 254,000 |
Asset | 0 | 777 |
Liability | $ 189 | $ 0 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 36,145 | $ 31,468 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 36,145 | 31,468 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 123 | 6,502 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 36,022 | 24,966 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 5,386 | 11,330 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 5,386 | 11,330 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 123 | 6,502 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 5,263 | 4,828 |
Net amounts | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Available-for-sale securities: | $ 1,464,682 | $ 1,471,973 |
Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 826,214 | 896,971 |
Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,615 | 16,961 |
Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 171,672 | 242,263 |
U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 30,857 | 108,496 |
Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,397 | 3,326 |
Recurring Basis | ||
Financial assets: | ||
Total securities | 1,464,682 | 1,471,973 |
Loans held for sale, at fair value | 61,828 | 46,618 |
Mortgage servicing rights | 165,674 | 164,249 |
Derivatives | 38,341 | 34,738 |
Financial liabilities: | ||
Derivatives | 36,404 | 38,215 |
Recurring Basis | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 415,927 | 203,956 |
Recurring Basis | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 826,214 | 896,971 |
Recurring Basis | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,615 | 16,961 |
Recurring Basis | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 171,672 | 242,263 |
Recurring Basis | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 30,857 | 108,496 |
Recurring Basis | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,397 | 3,326 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Total securities | 0 | 0 |
Loans held for sale, at fair value | 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: | ||
Total securities | 1,464,682 | 1,471,973 |
Loans held for sale, at fair value | 61,828 | 46,618 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 38,341 | 34,738 |
Financial liabilities: | ||
Derivatives | 36,404 | 38,215 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 415,927 | 203,956 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 826,214 | 896,971 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,615 | 16,961 |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 171,672 | 242,263 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 30,857 | 108,496 |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,397 | 3,326 |
Recurring Basis | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Total securities | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 165,674 | 164,249 |
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 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis (Details) - Non-recurring Basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Other real estate owned | $ 644 | $ 2,400 |
Financing receivable, collateral dependent loans, recorded investment | 8,403 | 13,041 |
Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 5,303 | 12,338 |
Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 1,288 | 203 |
Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 499 | 429 |
Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 561 | |
Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 752 | |
Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 71 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Significant other observable inputs (level 2) | Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 644 | 2,400 |
Financing receivable, collateral dependent loans, recorded investment | 8,403 | 13,041 |
Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 5,303 | 12,338 |
Significant unobservable inputs (level 3) | Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 1,288 | 203 |
Significant unobservable inputs (level 3) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 499 | 429 |
Significant unobservable inputs (level 3) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 561 | |
Significant unobservable inputs (level 3) | Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | $ 752 | |
Significant unobservable inputs (level 3) | Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | $ 71 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Changes in Fair Value Associated with Commercial Loans Held for Sale (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
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 |
Franklin Financial Network, Inc. | Commercial and industrial | Principal balance | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Carrying value at beginning of period | $ 34,357 |
Change in fair value: | |
Paydowns and payoffs | (21,890) |
Changes in valuation included in other noninterest income | 0 |
Carrying value at end of period | 12,467 |
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) |
Change in fair value: | |
Paydowns and payoffs | 0 |
Changes in valuation included in other noninterest income | 910 |
Carrying value at end of period | (2,957) |
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 |
Change in fair value: | |
Paydowns and payoffs | (21,890) |
Changes in valuation included in other noninterest income | 910 |
Carrying value at end of period | $ 9,510 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of 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, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, collateral dependent loans, recorded investment | $ 8,403 | $ 13,041 |
Other real estate owned | 644 | 2,400 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, collateral dependent loans, recorded investment | 8,403 | 13,041 |
Other real estate owned | $ 644 | $ 2,400 |
Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.09 | 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 | 0.58 | 0.61 |
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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
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 | $ 203 | $ (51) | |
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 | 1,821 | $ (421) | |
Level 3 | Non-recurring Basis | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Amortized costs of collateral dependent loans | $ 12,754 | $ 18,166 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Loans Held for Sale at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | $ 82,704 | $ 67,847 |
Other | Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 61,828 | 46,618 |
GNMA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 20,876 | $ 21,229 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Schedule of Differences Between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Aggregate fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Differences between the fair value and the principal balance for mortgage loans held for sale | $ 61,828 | $ 46,618 |
Aggregate unpaid principal balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Differences between the fair value and the principal balance for mortgage loans held for sale | 60,516 | 45,509 |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Differences between the fair value and the principal balance for mortgage loans held for sale | $ 1,312 | $ 1,109 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Schedule of Estimated Fair Values and Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Net loans held for investment | $ 9,137,242 | $ 9,258,457 |
Interest receivable | 53,506 | 52,715 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 870,730 | 810,932 |
Investment securities | 1,464,682 | 1,471,973 |
Net loans held for investment | 9,137,242 | 9,258,457 |
Loans held for sale, at fair value | 61,828 | 46,618 |
Interest receivable | 53,506 | 52,715 |
Mortgage servicing rights | 165,674 | 164,249 |
Derivatives | 38,341 | 34,738 |
Financial liabilities: | ||
Without stated maturities | 8,902,546 | 8,927,654 |
With stated maturities | 1,602,382 | 1,620,633 |
Securities sold under agreements to repurchase and federal funds purchased | 78,229 | 108,764 |
Bank Term Funding Program | 130,000 | 130,000 |
Subordinated debt, net | 130,414 | 129,645 |
Interest payable | 20,504 | 18,809 |
Derivatives | 36,404 | 38,215 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 870,730 | 810,932 |
Investment securities | 1,464,682 | 1,471,973 |
Net loans held for investment | 8,809,892 | 9,068,518 |
Loans held for sale, at fair value | 61,828 | 46,618 |
Interest receivable | 53,506 | 52,715 |
Mortgage servicing rights | 165,674 | 164,249 |
Derivatives | 38,341 | 34,738 |
Financial liabilities: | ||
Without stated maturities | 8,902,546 | 8,927,654 |
With stated maturities | 1,594,332 | 1,614,400 |
Securities sold under agreements to repurchase and federal funds purchased | 78,229 | 108,764 |
Bank Term Funding Program | 129,462 | 130,000 |
Subordinated debt, net | 123,284 | 122,671 |
Interest payable | 20,504 | 18,809 |
Derivatives | 36,404 | 38,215 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 870,730 | 810,932 |
Investment securities | 0 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Interest receivable | 892 | 388 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Without stated maturities | 8,902,546 | 8,927,654 |
With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 78,229 | 108,764 |
Bank Term Funding Program | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Interest payable | 4,187 | 4,104 |
Derivatives | 0 | 0 |
Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 1,464,682 | 1,471,973 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 61,828 | 46,618 |
Interest receivable | 6,774 | 8,551 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 38,341 | 34,738 |
Financial liabilities: | ||
Without stated maturities | 0 | 0 |
With stated maturities | 1,594,332 | 1,614,400 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Bank Term Funding Program | 129,462 | 130,000 |
Subordinated debt, net | 0 | 0 |
Interest payable | 15,942 | 13,205 |
Derivatives | 36,404 | 38,215 |
Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Net loans held for investment | 8,809,892 | 9,068,518 |
Loans held for sale, at fair value | 0 | 0 |
Interest receivable | 45,840 | 43,776 |
Mortgage servicing rights | 165,674 | 164,249 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Without stated maturities | 0 | 0 |
With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Bank Term Funding Program | 0 | 0 |
Subordinated debt, net | 123,284 | 122,671 |
Interest payable | 375 | 1,500 |
Derivatives | $ 0 | $ 0 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 99,490 | $ 103,660 | |
Provisions for credit losses | 782 | 491 | |
Mortgage banking income | 15,626 | 15,493 | |
Change in fair value of mortgage servicing rights, net of hedging | (3,041) | (3,407) | |
Other noninterest (loss) income | (4,623) | 11,263 | |
Depreciation and amortization | 2,841 | 2,228 | |
Amortization of intangibles | 789 | 990 | |
Other noninterest expense | 68,790 | 77,222 | |
Income before income taxes | 34,250 | 46,078 | |
Income tax expense | 6,300 | 9,697 | |
Net income attributable to FB Financial Corporation and noncontrolling interest | 27,950 | 36,381 | |
Net income applicable to noncontrolling interest | 0 | 0 | |
Net income applicable to FB Financial Corporation | 27,950 | 36,381 | |
Total assets | 12,548,320 | 13,101,147 | $ 12,604,403 |
Goodwill | 242,561 | 242,561 | $ 242,561 |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 97,094 | 101,287 | |
Provisions for credit losses | 838 | 212 | |
Mortgage banking income | 0 | 0 | |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | |
Other noninterest (loss) income | (4,794) | 11,493 | |
Depreciation and amortization | 2,708 | 2,049 | |
Amortization of intangibles | 789 | 990 | |
Other noninterest expense | 56,847 | 63,713 | |
Income before income taxes | 31,118 | 45,816 | |
Total assets | 11,979,904 | 12,534,348 | |
Goodwill | 242,561 | 242,561 | |
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 2,396 | 2,373 | |
Provisions for credit losses | (56) | 279 | |
Mortgage banking income | 15,626 | 15,493 | |
Change in fair value of mortgage servicing rights, net of hedging | (3,041) | (3,407) | |
Other noninterest (loss) income | 171 | (230) | |
Depreciation and amortization | 133 | 179 | |
Amortization of intangibles | 0 | 0 | |
Other noninterest expense | 11,943 | 13,509 | |
Income before income taxes | 3,132 | 262 | |
Total assets | 568,416 | 566,799 | |
Goodwill | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Minimum Capital Requirements -
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,657,500 | $ 1,635,848 |
Actual, ratio | 0.150 | 0.145 |
Minimum capital adequacy with capital buffer, amount | $ 1,161,748 | $ 1,182,028 |
Minimum capital adequacy with capital buffer, ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,419,546 | $ 1,405,890 |
Actual, ratio | 0.128 | 0.125 |
Minimum capital adequacy with capital buffer, amount | $ 940,462 | $ 956,880 |
Minimum capital adequacy with capital buffer, ratio | 0.085 | 0.085 |
Tier 1 Capital (to average assets) | ||
Actual, amount | $ 1,419,546 | $ 1,405,890 |
Actual, ratio | 0.113 | 0.113 |
Minimum capital adequacy with capital buffer, amount | $ 500,450 | $ 496,485 |
Minimum capital adequacy with capital buffer. ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,389,546 | $ 1,375,890 |
Actual ratio | 0.126 | 0.122 |
Minimum capital adequacy with capital buffer, amount | $ 774,498 | $ 788,018 |
Minimum capital adequacy with capital buffer, ratio | 0.070 | 0.070 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,622,562 | $ 1,600,950 |
Actual, ratio | 0.147 | 0.142 |
Minimum capital adequacy with capital buffer, amount | $ 1,159,716 | $ 1,179,886 |
Minimum capital adequacy with capital buffer, ratio | 0.105 | 0.105 |
To be well capitalized under prompt corrective action provisions, Amount | $ 1,104,491 | $ 1,123,701 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,384,847 | $ 1,370,991 |
Actual, ratio | 0.125 | 0.122 |
Minimum capital adequacy with capital buffer, amount | $ 938,818 | $ 955,145 |
Minimum capital adequacy with capital buffer, ratio | 0.085 | 0.085 |
To be well capitalized under prompt corrective action provisions, Amount | $ 883,593 | $ 898,960 |
To be well capitalized under prompt corrective action provisions, ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets) | ||
Actual, amount | $ 1,384,847 | $ 1,370,991 |
Actual, ratio | 0.111 | 0.111 |
Minimum capital adequacy with capital buffer, amount | $ 499,885 | $ 495,761 |
Minimum capital adequacy with capital buffer. ratio | 0.040 | 0.040 |
To be well capitalized under prompt corrective action provisions, amount | $ 624,857 | $ 619,701 |
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 | $ 1,384,847 | $ 1,370,991 |
Actual ratio | 0.125 | 0.122 |
Minimum capital adequacy with capital buffer, amount | $ 773,144 | $ 786,590 |
Minimum capital adequacy with capital buffer, ratio | 0.070 | 0.070 |
To be well capitalized under prompt corrective action provisions, amount | $ 717,919 | $ 730,405 |
To be well capitalized under prompt corrective action provisions, ratio | 0.065 | 0.065 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Changes in Restricted Stock Units (Details) - RSUs | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 323,520,000 |
Granted (in shares) | shares | 155,047,000 |
Vested (in shares) | shares | (18,777,000) |
Forfeited (in shares) | shares | (853,000) |
Balance at end of period (in shares) | shares | 458,937,000 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 37.52 |
Granted (in dollars per share) | $ / shares | 35.60 |
Vested (in dollars per share) | $ / shares | 35.55 |
Forfeited (in dollars per share) | $ / shares | 40.19 |
Balance at end of period (in dollars per share) | $ / shares | $ 36.95 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 2,820 | $ 2,285 | |
Dividends declared not paid on restricted stock units | 87 | 48 | |
Proceeds from employee payroll withholdings | 388 | 305 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock units vested and released | 668 | 4,591 | |
Compensation cost related to nonvested awards | 2,706 | 1,706 | |
Unrecognized compensation cost related to nonvested awards | $ 10,614 | ||
Expected weighted-average period to be recognized | 2 years 2 months 26 days | ||
Dividends declared not paid on restricted stock units | $ 410 | $ 353 | |
RSUs | 2016-LTIP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuable (in shares) | 1,459,258 | ||
RSUs | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 199 | 175 | |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | 114 | $ 579 | |
Unrecognized compensation cost related to nonvested awards | $ 14,786 | ||
Expected weighted-average period to be recognized | 2 years 4 months 20 days | ||
Criteria period | 3 years | ||
Maximum unrecognized compensation cost, payout percentage | 200% | ||
PSUs | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 0% | ||
PSUs | Tranche Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 200% | ||
PSUs | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 100% | ||
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 0% | ||
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, 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 | ||
Shares issued under plan (in shares) | 10,606 | 8,214 | |
Number of shares reserved for issuance (in shares) | 2,283,620 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Changes in Performance Stock Units (Details) - PSUs | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Performance Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 176,163 |
Granted (in shares) | shares | 97,738 |
Performance adjustment (in shares) | shares | (12,356) |
Vested (in shares) | shares | (34,915) |
Forfeited or expired (in shares) | shares | (969) |
Balance at end of period (in shares) | shares | 225,661 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ 40.86 |
Granted (in dollars per share) | 35.60 |
Performance adjustment (in dollars per share) | 43.20 |
Vested (in dollars per share) | 43.20 |
Forfeited (in dollars per share) | 40 |
Balance at end of period (in dollars per share) | $ 38.09 |
Criteria period | 3 years |
Minimum | |
Weighted Average Grant Date Fair Value | |
Award vesting, percentage | 0% |
Maximum | |
Weighted Average Grant Date Fair Value | |
Award vesting, percentage | 200% |
Tranche Three | |
Weighted Average Grant Date Fair Value | |
Granted (in dollars per share) | $ 35.60 |
Award vesting, percentage | 100% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Share-Based Payment Arrangement, Performance Shares, Activity (Details) - PSUs | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 35.60 |
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) | $ 44.44 |
PSUs outstanding (in shares) | shares | 49,836 |
Award vesting, percentage | 0% |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 37.17 |
PSUs outstanding (in shares) | shares | 78,087 |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 35.60 |
PSUs outstanding (in shares) | shares | 97,738 |
Award vesting, percentage | 100% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2024 | $ 49,073 |
New loans and advances | 1,894 |
Change in related party status | 0 |
Repayments | (1,474) |
Loans outstanding at March 31, 2024 | $ 49,493 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 338,935 | $ 316,141 | |
Other income | 1,710 | $ 3,550 | |
Master loan purchase agreement, maximum amount | 250 | ||
Amortized cost | $ 1,648,280 | 1,658,779 | |
Manufactured loan housing securities | |||
Related Party Transaction [Line Items] | |||
Loan purchase agreement, term | 5 years | ||
Loans purchased | $ 9,225 | 0 | |
Amortized cost | 41,048 | 32,154 | |
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 | 90 | |
Directors | FBK Aviation, LLC | Aviation Time Sharing Agreements | |||
Related Party Transaction [Line Items] | |||
Other income | 24 | $ 7 | |
Unfunded Loan Commitment | Certain Executive Officers, Certain Management and Directors and Their Associates | |||
Related Party Transaction [Line Items] | |||
Unfunded commitments | $ 54,212 | $ 44,206 |