Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,643,150 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 192,571 | $ 146,542 |
Federal funds sold and reverse repurchase agreements | 91,909 | 83,324 |
Interest-bearing deposits in financial institutions | 516,422 | 581,066 |
Cash and cash equivalents | 800,902 | 810,932 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,482,379 | 1,471,973 |
Federal Home Loan Bank stock, at cost | 33,030 | 34,190 |
Loans held for sale (includes $84,521 and $46,618 at fair value, respectively) | 106,875 | 67,847 |
Loans held for investment | 9,309,553 | 9,408,783 |
Less: allowance for credit losses on loans HFI | 155,055 | 150,326 |
Net loans held for investment | 9,154,498 | 9,258,457 |
Premises and equipment, net | 154,731 | 155,731 |
Operating lease right-of-use assets | 49,123 | 54,295 |
Interest receivable | 52,781 | 52,715 |
Mortgage servicing rights, at fair value | 164,505 | 164,249 |
Bank-owned life insurance | 71,930 | 76,143 |
Other real estate owned, net | 4,173 | 3,192 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 7,168 | 8,709 |
Other assets | 210,513 | 203,409 |
Total assets | 12,535,169 | 12,604,403 |
Deposits | ||
Noninterest-bearing | 2,187,185 | 2,218,382 |
Interest-bearing checking | 2,628,554 | 2,504,421 |
Money market and savings | 4,157,968 | 4,204,851 |
Customer time deposits | 1,343,934 | 1,469,811 |
Brokered and internet time deposits | 150,361 | 150,822 |
Total deposits | 10,468,002 | 10,548,287 |
Borrowings | 360,944 | 390,964 |
Operating lease liabilities | 61,932 | 67,643 |
Accrued expenses and other liabilities | 143,696 | 142,622 |
Total liabilities | 11,034,574 | 11,149,516 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 46,642,958 and 46,848,934 shares issued and outstanding, respectively | 46,643 | 46,849 |
Additional paid-in capital | 855,391 | 864,258 |
Retained earnings | 730,242 | 678,412 |
Accumulated other comprehensive loss, net | (131,774) | (134,725) |
Total FB Financial Corporation common shareholders' equity | 1,500,502 | 1,454,794 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,500,595 | 1,454,887 |
Total liabilities and shareholders' equity | $ 12,535,169 | $ 12,604,403 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair value of loan held for sale | $ 106,875 | $ 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) | 46,642,958 | 46,848,934 |
Common stock, shares outstanding (in shares) | 46,642,958 | 46,848,934 |
Fair Value | ||
Fair value of loan held for sale | $ 84,521 | $ 46,618 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income: | ||||
Interest and fees on loans | $ 155,379 | $ 149,220 | $ 310,985 | $ 289,576 |
Interest on investment securities | ||||
Taxable | 11,966 | 6,480 | 21,071 | 13,050 |
Tax-exempt | 1,168 | 1,808 | 2,610 | 3,612 |
Other | 8,900 | 12,675 | 18,875 | 23,425 |
Total interest income | 177,413 | 170,183 | 353,541 | 329,663 |
Interest expense: | ||||
Deposits | 71,501 | 65,257 | 144,126 | 118,120 |
Borrowings | 3,297 | 3,383 | 7,310 | 6,340 |
Total interest expense | 74,798 | 68,640 | 151,436 | 124,460 |
Net interest income | 102,615 | 101,543 | 202,105 | 205,203 |
Provision for credit losses on loans HFI | 3,940 | 2,575 | 5,792 | 7,572 |
Reversal of credit losses on unfunded commitments | (1,716) | (3,653) | (2,786) | (8,159) |
Net interest income after provision for credit losses | 100,391 | 102,621 | 199,099 | 205,790 |
Noninterest income: | ||||
(Loss) gain from investment securities, net | 0 | (28) | (16,213) | 41 |
(Loss) gain on sales or write-downs of other real estate owned and other assets | (281) | 533 | 284 | 350 |
Other income | 4,611 | 2,485 | 6,321 | 6,035 |
Total noninterest income | 25,608 | 23,813 | 33,570 | 47,162 |
Noninterest expenses: | ||||
Salaries, commissions and employee benefits | 46,225 | 52,020 | 90,843 | 100,808 |
Occupancy and equipment expense | 6,328 | 6,281 | 12,942 | 12,190 |
Data processing | 2,286 | 2,345 | 4,694 | 4,458 |
Legal and professional fees | 1,979 | 2,199 | 3,898 | 5,307 |
Advertising | 1,859 | 2,001 | 3,030 | 4,134 |
Amortization of core deposit and other intangibles | 752 | 940 | 1,541 | 1,930 |
Other expense | 15,664 | 15,506 | 30,565 | 32,905 |
Total noninterest expense | 75,093 | 81,292 | 147,513 | 161,732 |
Income before income taxes | 50,906 | 45,142 | 85,156 | 91,220 |
Income tax expense | 10,919 | 9,835 | 17,219 | 19,532 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 39,987 | 35,307 | 67,937 | 71,688 |
Net income applicable to noncontrolling interest | 8 | 8 | 8 | 8 |
Net income applicable to FB Financial Corporation | $ 39,979 | $ 35,299 | $ 67,929 | $ 71,680 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.85 | $ 0.75 | $ 1.45 | $ 1.53 |
Diluted (in dollars per share) | $ 0.85 | $ 0.75 | $ 1.45 | $ 1.53 |
Mortgage banking income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | $ 11,910 | $ 12,232 | $ 24,495 | $ 24,318 |
Investment services and trust income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | 3,387 | 2,777 | 6,617 | 5,155 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | 3,167 | 3,185 | 6,308 | 6,238 |
ATM and interchange fees | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | $ 2,814 | $ 2,629 | $ 5,758 | $ 5,025 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 39,987 | $ 35,307 | $ 67,937 | $ 71,688 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gain (loss) in available-for-sale securities, net of tax expense (benefit) of $485, $(4,890), $(2,947) and $2,169 | 905 | (13,858) | (8,668) | 6,206 |
Reclassification adjustment for loss on sale of securities included in net income, net of tax benefit of $—, $—, $4,225 and $— | 0 | 0 | 11,988 | 0 |
Net unrealized (loss) gain in hedging activities, net of tax (benefit) expense of $(68), $6, $(130) and $(64) | (195) | 17 | (369) | (180) |
Total other comprehensive income (loss), net of tax | 710 | (13,841) | 2,951 | 6,026 |
Comprehensive income applicable to FB Financial Corporation and noncontrolling interest | 40,697 | 21,466 | 70,888 | 77,714 |
Comprehensive income applicable to noncontrolling interest | 8 | 8 | 8 | 8 |
Comprehensive income applicable to FB Financial Corporation | $ 40,689 | $ 21,458 | $ 70,880 | $ 77,706 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net tax (benefits) expenses on net change in unrealized gain (loss) on available-for-sale securities | $ 485 | $ (4,890) | $ (2,947) | $ 2,169 |
Net tax expenses (benefits) on reclassification adjustment for gain on sale of securities included in net income | 0 | 0 | 4,225 | 0 |
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | $ (68) | $ 6 | $ (130) | $ (64) |
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 | 71,688 | 71,680 | 71,680 | 8 | |||||||||||
Other comprehensive income (loss), net of taxes | 6,026 | 6,026 | 6,026 | ||||||||||||
Repurchase of common stock | (4,944) | (4,944) | (136) | (4,808) | |||||||||||
Stock based compensation expense | 5,533 | 5,533 | 6 | 5,527 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | $ (1,606) | $ (1,315) | $ (1,606) | $ (1,315) | $ 115 | $ 68 | $ (1,721) | $ (1,383) | |||||||
Shares issued under employee stock purchase program | 321 | 321 | 8 | 313 | |||||||||||
Dividends declared | (14,169) | (14,169) | (14,169) | ||||||||||||
Noncontrolling interest distribution | (8) | (8) | |||||||||||||
Ending balance at Jun. 30, 2023 | 1,387,044 | 1,386,951 | 46,799 | 859,516 | 644,043 | (163,407) | 93 | ||||||||
Beginning balance at Mar. 31, 2023 | 1,369,789 | 1,369,696 | 46,763 | 856,628 | 615,871 | (149,566) | 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 35,307 | 35,299 | 35,299 | 8 | |||||||||||
Other comprehensive income (loss), net of taxes | (13,841) | (13,841) | (13,841) | ||||||||||||
Stock based compensation expense | 3,248 | 3,248 | 5 | 3,243 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | (154) | (170) | (154) | (170) | 23 | 8 | (177) | (178) | |||||||
Dividends declared | (7,127) | (7,127) | (7,127) | ||||||||||||
Noncontrolling interest distribution | (8) | (8) | |||||||||||||
Ending balance at Jun. 30, 2023 | 1,387,044 | 1,386,951 | 46,799 | 859,516 | 644,043 | (163,407) | 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 | 67,937 | 67,929 | 67,929 | 8 | |||||||||||
Other comprehensive income (loss), net of taxes | 2,951 | 2,951 | 2,951 | ||||||||||||
Repurchase of common stock | (12,699) | (12,699) | (353) | (12,346) | |||||||||||
Stock based compensation expense | 4,910 | 4,910 | 4 | 4,906 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | (1,339) | (344) | (1,339) | (344) | 102 | 30 | (1,441) | (374) | |||||||
Shares issued under employee stock purchase program | 399 | 399 | 11 | 388 | |||||||||||
Dividends declared | (16,099) | (16,099) | (16,099) | ||||||||||||
Noncontrolling interest distribution | (8) | (8) | |||||||||||||
Ending balance at Jun. 30, 2024 | 1,500,595 | 1,500,502 | 46,643 | 855,391 | 730,242 | (131,774) | 93 | ||||||||
Beginning balance at Mar. 31, 2024 | 1,479,619 | 1,479,526 | 46,897 | 866,803 | 698,310 | (132,484) | 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 39,987 | 39,979 | 39,979 | 8 | |||||||||||
Other comprehensive income (loss), net of taxes | 710 | 710 | 710 | ||||||||||||
Repurchase of common stock | (12,699) | (12,699) | (353) | (12,346) | |||||||||||
Stock based compensation expense | 2,090 | 2,090 | 3 | 2,087 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | $ (1,058) | $ 1 | $ (1,058) | $ 1 | $ 91 | $ 5 | $ (1,149) | $ (4) | |||||||
Dividends declared | (8,047) | (8,047) | (8,047) | ||||||||||||
Noncontrolling interest distribution | (8) | (8) | |||||||||||||
Ending balance at Jun. 30, 2024 | $ 1,500,595 | $ 1,500,502 | $ 46,643 | $ 855,391 | $ 730,242 | $ (131,774) | $ 93 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.34 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income attributable to FB Financial Corporation and noncontrolling interest | $ 67,937 | $ 71,688 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of fixed assets and software | 5,702 | 4,680 |
Amortization of core deposit and other intangibles | 1,541 | 1,930 |
Amortization of issuance costs on subordinated debt | 193 | 194 |
Capitalization of mortgage servicing rights | (2,649) | (4,061) |
Net change in fair value of mortgage servicing rights | 2,393 | 5,993 |
Stock-based compensation expense | 4,910 | 5,533 |
Provision for credit losses on loans HFI | 5,792 | 7,572 |
Reversal of credit losses on unfunded commitments | (2,786) | (8,159) |
Provision for (reversal of) mortgage loan repurchases | 125 | (450) |
Accretion of discounts and premiums on acquired loans, net | (548) | (305) |
Amortization of premiums and discounts on securities, net | 2,440 | 2,691 |
Loss (gain) from investment securities, net | 16,213 | (41) |
Originations of loans held for sale | (595,813) | (641,962) |
Proceeds from sale of loans held for sale | 575,246 | 679,456 |
Gain on sale and change in fair value of loans held for sale | (17,209) | (17,495) |
Net gain on write-downs of other real estate owned and other assets | (284) | (350) |
Provision for deferred income taxes | (47) | 2,629 |
Earnings on bank-owned life insurance | (2,911) | (983) |
Changes in: | ||
Operating lease assets and liabilities, net | (539) | 1,033 |
Other assets and interest receivable | (1,765) | (2,727) |
Accrued expenses and other liabilities | 8,950 | (250) |
Net cash provided by operating activities | 66,891 | 106,616 |
Activity in available-for-sale securities: | ||
Sales | 207,882 | 0 |
Maturities, prepayments and calls | 134,236 | 58,415 |
Purchases | (366,579) | (905) |
Net change in loans | 94,773 | (15,832) |
Proceeds from sales of FHLB stock, net | 1,160 | 18,375 |
Purchases of premises and equipment | (3,861) | (12,576) |
Proceeds from the sale of premises and equipment | 287 | 0 |
Proceeds from the sale of other real estate owned | 1,434 | 5,155 |
Proceeds from the sale of other assets | 550 | 775 |
Proceeds from bank-owned life insurance | 0 | 236 |
Net cash provided by investing activities | 69,882 | 53,643 |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (84,782) | 15,489 |
Net (decrease) increase in securities sold under agreements to repurchase and federal funds purchased | (31,963) | 29,275 |
Net decrease in short-term FHLB advances | 0 | (50,000) |
Share based compensation withholding payments | (1,683) | (2,921) |
Net proceeds from sale of common stock under employee stock purchase program | 399 | 321 |
Repurchase of common stock | (12,699) | (4,944) |
Dividends paid on common stock | (15,916) | (14,011) |
Dividend equivalent payments made upon vesting of equity compensation | (151) | (158) |
Noncontrolling interest distribution | (8) | (8) |
Net cash used in financing activities | (146,803) | (26,957) |
Net change in cash and cash equivalents | (10,030) | 133,302 |
Cash and cash equivalents at beginning of the period | 810,932 | 1,027,052 |
Cash and cash equivalents at end of the period | 800,902 | 1,160,354 |
Supplemental cash flow information: | ||
Interest paid | 150,100 | 116,211 |
Taxes paid, net | 20,134 | 29,338 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate owned | 2,400 | 593 |
Transfers from loans to other assets | 1,831 | 1,391 |
Transfers from loans to loans held for sale | 167 | 10,545 |
Transfers from loans held for sale to loans | 40 | 2,755 |
Loans provided for sales of other assets | 416 | 424 |
Increase (decrease) in rebooked GNMA loans under optional repurchase program | 1,125 | (5,986) |
Dividends declared not paid on restricted stock units and performance stock units | 183 | 158 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 0 | $ 3,477 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 June 30, 2024, the Bank had 77 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 common share Basic earnings per common share 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 earnings per common share includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted earnings per common share 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 earnings per common share. Accordingly, the Company is required to calculate basic and diluted earnings per common share using the two-class method. Calculation of earnings per common share under the two-class method (i) excludes from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) excludes 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 39,979 $ 35,299 $ 67,929 $ 71,680 Dividends paid on and undistributed earnings allocated to participating securities — — — — Earnings available to common shareholders $ 39,979 $ 35,299 $ 67,929 $ 71,680 Weighted average basic shares outstanding 46,762,488 46,779,388 46,818,685 46,729,778 Basic earnings per common share $ 0.85 $ 0.75 $ 1.45 $ 1.53 Diluted earnings per common share: Earnings available to common shareholders $ 39,979 $ 35,299 $ 67,929 $ 71,680 Weighted average basic shares outstanding 46,762,488 46,779,388 46,818,685 46,729,778 Weighted average diluted shares contingently issuable (1) 82,655 35,466 92,781 47,825 Weighted average diluted shares outstanding 46,845,143 46,814,854 46,911,466 46,777,603 Diluted earnings per common share $ 0.85 $ 0.75 $ 1.45 $ 1.53 (1) Excludes 36,507 and 2,412 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2024 and 315,989 and 250,074 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2023. 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. While the Company is continuing to evaluate the impact, ASU 2023-07 is not expected to have a material impact on the Company's reportable segments 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 evaluating the impact this will have on the Company's income tax disclosures. Subsequent events |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 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, net at June 30, 2024 and December 31, 2023: June 30, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses on investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 428,514 $ 962 $ (868) $ — $ 428,608 Mortgage-backed securities - residential 1,021,125 439 (157,292) — 864,272 Mortgage-backed securities - commercial 17,398 — (1,295) — 16,103 Municipal securities 194,050 33 (24,106) — 169,977 Corporate securities 3,500 — (81) — 3,419 Total $ 1,664,587 $ 1,434 $ (183,642) $ — $ 1,482,379 December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses on 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 exclude accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of June 30, 2024 and December 31, 2023, total accrued interest receivable on AFS debt securities was $6,549 and $7,212, respectively. AFS debt securities pledged at June 30, 2024 and December 31, 2023 had carrying amounts of $869,623 and $929,546, respectively, and were pledged to secure a Federal Reserve line of credit, Bank Term Funding Program borrowings, public deposits and repurchase agreements. Within AFS debt securities, there were no aggregate holdings of any single issuer, other than U.S. Government sponsored enterprises, in an amount greater than 10% of shareholders' equity during any period presented. AFS debt securities transactions are recorded as of the trade date. At June 30, 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 on AFS debt securities for which an allowance for credit losses has not been recorded at June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 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 $ 191,125 $ (232) $ 7,218 $ (636) $ 198,343 $ (868) Mortgage-backed securities - residential — — 754,282 (157,292) 754,282 (157,292) Mortgage-backed securities - commercial — — 16,103 (1,295) 16,103 (1,295) Municipal securities 31,931 (2,197) 132,733 (21,909) 164,664 (24,106) Corporate securities — — 3,419 (81) 3,419 (81) Total $ 223,056 $ (2,429) $ 913,755 $ (181,213) $ 1,136,811 $ (183,642) 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 June 30, 2024 and December 31, 2023, the Company’s AFS debt securities portfolio consisted of 341 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 debt securities with market values below amortized cost at June 30, 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 June 30, 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 June 30, 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 June 30, 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. June 30, December 31, 2024 2023 Available-for-sale Available-for-sale Amortized cost Fair Value Amortized cost Fair Value Due in one year or less $ 3,188 $ 3,174 $ 64,776 $ 64,279 Due in one to five years 10,586 9,832 75,996 71,801 Due in five to ten years 157,552 156,768 51,162 49,630 Due in over ten years 454,738 432,230 391,270 372,331 626,064 602,004 583,204 558,041 Mortgage-backed securities - residential 1,021,125 864,272 1,057,389 896,971 Mortgage-backed securities - commercial 17,398 16,103 18,186 16,961 Total AFS debt securities $ 1,664,587 $ 1,482,379 $ 1,658,779 $ 1,471,973 Sales and other dispositions of AFS debt securities were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Proceeds from sales $ — $ — $ 207,882 $ — Proceeds from maturities, prepayments and calls 67,609 31,588 134,236 58,415 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 $27,150 and $25,191 at June 30, 2024 and December 31, 2023, respectively. Additionally, the Company had $33,030 and $34,190 of FHLB stock carried at cost at June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2024 and December 31, 2023, by class of financing receivable are as follows: June 30, December 31, 2024 2023 Commercial and industrial $ 1,614,307 $ 1,720,733 Construction 1,200,123 1,397,313 Residential real estate: 1-to-4 family mortgage 1,584,029 1,568,552 Residential line of credit 559,359 530,912 Multi-family mortgage 597,039 603,804 Commercial real estate: Owner-occupied 1,274,705 1,232,071 Non-owner occupied 2,035,102 1,943,525 Consumer and other 444,889 411,873 Gross loans 9,309,553 9,408,783 Less: Allowance for credit losses on loans HFI (155,055) (150,326) Net loans $ 9,154,498 $ 9,258,457 As of June 30, 2024 and December 31, 2023, $962,358 and $1,030,016, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,533,000 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 June 30, 2024 and December 31, 2023, qualifying commercial and industrial, construction and consumer loans, of $2,743,982 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 June 30, 2024 and December 31, 2023, accrued interest receivable on loans HFI amounted to $44,351 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 may be 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 June 30, 2024 and December 31, 2023 and the gross charge-offs for the six months ended June 30, 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 six months ended June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 54,634 $ 201,189 $ 169,826 $ 67,439 $ 34,393 $ 123,665 $ 901,459 $ 1,552,605 Special Mention 55 3,279 15,314 — — 235 7,730 26,613 Classified — 48 5,962 5,113 2,925 6,123 14,918 35,089 Total 54,689 204,516 191,102 72,552 37,318 130,023 924,107 1,614,307 Current-period gross — — — 24 16 7 22 69 Construction Pass 90,338 184,198 464,801 115,507 25,809 75,400 189,161 1,145,214 Special Mention — 404 12,534 645 11 623 — 14,217 Classified — — 5,287 680 8,489 — 26,236 40,692 Total 90,338 184,602 482,622 116,832 34,309 76,023 215,397 1,200,123 Current-period gross — — — — — — 92 92 Residential real estate: Multi-family mortgage Pass 5,217 6,085 206,098 235,467 52,784 70,920 19,434 596,005 Special Mention — — — — — — — — Classified — — — — — 1,034 — 1,034 Total 5,217 6,085 206,098 235,467 52,784 71,954 19,434 597,039 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 85,878 113,724 246,192 224,546 110,767 410,746 62,949 1,254,802 Special Mention — — 1,396 2,616 — 2,532 — 6,544 Classified — — 6,862 16 64 5,361 1,056 13,359 Total 85,878 113,724 254,450 227,178 110,831 418,639 64,005 1,274,705 Current-period gross — — — — — — — — Non-owner occupied Pass 46,629 43,016 546,369 467,839 120,570 720,971 41,761 1,987,155 Special Mention — — 5,341 3,955 — 19,486 — 28,782 Classified — — — 996 — 18,169 — 19,165 Total 46,629 43,016 551,710 472,790 120,570 758,626 41,761 2,035,102 Current-period gross — — — — — — — — Total commercial loan types Pass 282,696 548,212 1,633,286 1,110,798 344,323 1,401,702 1,214,764 6,535,781 Special Mention 55 3,683 34,585 7,216 11 22,876 7,730 76,156 Classified — 48 18,111 6,805 11,478 30,687 42,210 109,339 Total $ 282,751 $ 551,943 $ 1,685,982 $ 1,124,819 $ 355,812 $ 1,455,265 $ 1,264,704 $ 6,721,276 Current-period gross $ — $ — $ — $ 24 $ 16 $ 7 $ 114 $ 161 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 June 30, 2024 and December 31, 2023 and the gross charge-offs for the six months ended June 30, 2023 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 six months ended June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 90,475 $ 178,755 $ 491,769 $ 383,927 $ 139,696 $ 281,077 $ — $ 1,565,699 Nonperforming — 146 4,001 3,686 3,026 7,471 — 18,330 Total 90,475 178,901 495,770 387,613 142,722 288,548 — 1,584,029 Current-period gross — — 150 130 — — 13 293 Residential line of credit Performing — — — — — — 557,386 557,386 Nonperforming — — — — — — 1,973 1,973 Total — — — — — — 559,359 559,359 Current-period gross — — — — — — 20 20 Consumer and other Performing 61,846 103,413 83,702 40,625 31,828 110,286 1,366 433,066 Nonperforming — 881 1,307 2,401 2,107 5,127 — 11,823 Total 61,846 104,294 85,009 43,026 33,935 115,413 1,366 444,889 Current-period gross 515 368 123 164 46 150 — 1,366 Total consumer type loans Performing 152,321 282,168 575,471 424,552 171,524 391,363 558,752 2,556,151 Nonperforming — 1,027 5,308 6,087 5,133 12,598 1,973 32,126 Total $ 152,321 $ 283,195 $ 580,779 $ 430,639 $ 176,657 $ 403,961 $ 560,725 $ 2,588,277 Current-period gross $ 515 $ 368 $ 273 $ 294 $ 46 $ 150 $ 33 $ 1,679 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 June 30, 2024 and December 31, 2023: June 30, 2024 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 1,334 $ 65 $ 22,797 $ 1,590,111 $ 1,614,307 Construction 11,767 1,306 4,590 1,182,460 1,200,123 Residential real estate: 1-to-4 family mortgage 23,244 11,643 6,687 1,542,455 1,584,029 Residential line of credit 2,282 1,738 235 555,104 559,359 Multi-family mortgage — — 29 597,010 597,039 Commercial real estate: Owner occupied 274 — 9,163 1,265,268 1,274,705 Non-owner occupied 3,512 — 3,147 2,028,443 2,035,102 Consumer and other 13,767 2,306 9,517 419,299 444,889 Total $ 56,180 $ 17,058 $ 56,165 $ 9,180,150 $ 9,309,553 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 June 30, 2024 and December 31, 2023 by class of financing receivable. June 30, 2024 Nonaccrual Nonaccrual Related Commercial and industrial $ 9,109 $ 13,688 $ 8,941 Construction 2,753 1,837 270 Residential real estate: 1-to-4 family mortgage 1,972 4,715 126 Residential line of credit 148 87 2 Multi-family mortgage — 29 1 Commercial real estate: Owner occupied 7,684 1,479 287 Non-owner occupied 3,119 28 1 Consumer and other — 9,517 493 Total $ 24,785 $ 31,380 $ 10,121 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 and six months ended June 30, 2024: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Commercial and industrial $ 345 $ 28 $ 569 $ 48 Construction 79 46 140 52 Residential real estate: 1-to-4 family mortgage 34 70 34 149 Residential line of credit 23 27 39 51 Multi-family mortgage 1 — 1 1 Commercial real estate: Owner occupied 75 39 124 97 Non-owner occupied 54 55 89 137 Consumer and other — 143 — 316 Total $ 611 $ 408 $ 996 $ 851 Accrued interest receivable written off as an adjustment to interest income amounted to $207 and $408 for the three and six months ended June 30, 2024, respectively, and $163 and $344 for the three and six months ended June 30, 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. The following tables present the amortized cost of FDM loans as of June 30, 2024 by class of financing receivable and type of concession granted that were modified during the three and six months ended June 30, 2024. Three Months Ended Term extension Payment deferral and term extension Interest rate reduction and term extension Total % of total class of financing receivables Consumer and other $ 18 $ — $ 98 $ 116 — % Total $ 18 $ — $ 98 $ 116 — % Six Months Ended Term extension Payment deferral and term extension Interest rate reduction and term extension Total % of total class of financing receivables Construction $ — $ 14,236 $ — $ 14,236 1.2 % Commercial real estate: Non-owner occupied 10,351 — — 10,351 0.5 % Consumer and other 40 — 98 138 — % Total $ 10,391 $ 14,236 $ 98 $ 24,725 0.3 % During the three and six months ended June 30, 2023, the Company modified two residential mortgage loans in the form of term extensions for borrowers experiencing financial difficulties with balances totaling $141. No financing receivables modified in the preceding twelve months had a payment default during the three and six months ended June 30, 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. At June 30, 2024 and December 31, 2023, the Company had no commitments to lend additional funds to borrowers whose loans were classified as an FDM. The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficultly: Three Months Ended June 30, 2024 Weighted average term extension Weighted average payment deferral Weighted average interest rate reduction Consumer and other 21 — 1.49% Six Months Ended June 30, 2024 Weighted average term extension Weighted average payment deferral Weighted average interest rate reduction Construction 6 3 — Commercial real estate: Non-owner occupied 6 — — Consumer and other 25 — 1.49% 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 HFI held for investment as of June 30, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months. June 30, 2024 30-89 days 90 days or Nonaccrual loans (1) Loans current Total Construction $ — $ — $ — $ 14,236 $ 14,236 Residential real estate: 1-to-4 family mortgage — — 24 — 24 Commercial real estate: Non-owner occupied — — — 10,351 10,351 Consumer and other — — — 138 138 Total $ — $ — $ 24 $ 24,725 $ 24,749 (1) Loans were on non-accrual when modified and subsequently classified as FDM. Collateral-Dependent Loans For collateral-dependent loans, or those loans for which repayment is expected to be provided substantially through the operation or sale of collateral, where the borrower is also 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. June 30, 2024 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ 82 $ 363 $ 21,687 $ 22,132 $ 8,870 Construction 23,041 1,653 — 24,694 567 Residential real estate: 1-to-4 family mortgage 3,892 — — 3,892 58 Residential line of credit 733 — — 733 15 Multi-family mortgage — — — — — Commercial real estate: Owner occupied 1,426 7,142 8,568 258 Non-owner occupied 18,141 — — 18,141 — Total $ 47,315 $ 9,158 $ 21,687 $ 78,160 $ 9,768 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 June 30, 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 June 30, 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 and six months ended June 30, 2024 and 2023: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2024 Beginning balance - March 31, 2024 $ 17,272 $ 37,308 $ 26,128 $ 9,918 $ 8,973 $ 10,749 $ 23,949 $ 17,370 $ 151,667 Provision for (reversal of) 5,264 (3,138) (214) 179 (163) 375 594 1,043 3,940 Recoveries of loans previously charged-off 20 — 10 — — 188 — 143 361 Loans charged off (26) — (293) — — — — (594) (913) Ending balance - June 30, 2024 $ 22,530 $ 34,170 $ 25,631 $ 10,097 $ 8,810 $ 11,312 $ 24,543 $ 17,962 $ 155,055 Six Months Ended June 30, 2024 Beginning balance - December 31, 2023 $ 19,599 $ 35,372 $ 26,505 $ 9,468 $ 8,842 $ 10,653 $ 22,965 $ 16,922 $ 150,326 Provision for (reversal of) 2,966 (1,110) (647) 649 (32) 431 1,578 1,957 5,792 Recoveries of loans previously charged-off 34 — 66 — — 228 — 449 777 Loans charged off (69) (92) (293) (20) — — — (1,366) (1,840) Ending balance - June 30, 2024 $ 22,530 $ 34,170 $ 25,631 $ 10,097 $ 8,810 $ 11,312 $ 24,543 $ 17,962 $ 155,055 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2023 Beginning balance - March 31, 2023 $ 11,117 $ 41,025 $ 27,213 $ 9,034 $ 6,619 $ 7,952 $ 21,868 $ 13,981 $ 138,809 Provision for (reversal of) 192 (1,115) 185 151 209 643 1,009 1,301 2,575 Recoveries of loans previously charged-off 13 10 25 — — 16 — 108 172 Loans charged off (11) — (16) — — (144) — (721) (892) Ending balance - June 30, 2023 $ 11,311 $ 39,920 $ 27,407 $ 9,185 $ 6,828 $ 8,467 $ 22,877 $ 14,669 $ 140,664 Six Months Ended June 30, 2023 Beginning balance - December 31, 2022 $ 11,106 $ 39,808 $ 26,141 $ 7,494 $ 6,490 $ 7,783 $ 21,916 $ 13,454 $ 134,192 Provision for (reversal of) 182 102 1,258 1,691 338 746 961 2,294 7,572 Recoveries of loans previously charged-off 80 10 40 — — 82 — 347 559 Loans charged off (57) — (32) — — (144) — (1,426) (1,659) Ending balance - $ 11,311 $ 39,920 $ 27,407 $ 9,185 $ 6,828 $ 8,467 $ 22,877 $ 14,669 $ 140,664 |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 3,613 $ 4,085 $ 3,192 $ 5,794 Transfers from loans 1,647 358 2,400 593 Proceeds from sale of other real estate owned (1,045) (3,124) (1,434) (5,155) (Loss) gain on sale of other real estate owned (42) 655 15 742 Balance at end of period $ 4,173 $ 1,974 $ 4,173 $ 1,974 Included within the other real estate owned balance above, foreclosed residential real estate properties totaled $2,904 and $2,414 as of June 30, 2024 and December 31, 2023, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases As of June 30, 2024, the Company was the lessee in 45 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 June 30, 2024 and December 31, 2023: June 30, December 31, Classification 2024 2023 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 49,123 $ 54,295 Finance leases Premises and equipment, net 1,201 1,256 Total right-of-use assets $ 50,324 $ 55,551 Lease liabilities: Operating leases Operating lease liabilities $ 61,932 $ 67,643 Finance leases Borrowings 1,278 1,326 Total lease liabilities $ 63,210 $ 68,969 Weighted average remaining lease term (in years) - 11.2 11.6 Weighted average remaining lease term (in years) - 10.9 11.4 Weighted average discount rate - operating 3.34 % 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 Six Months Ended June 30, June 30, Classification 2024 2023 2024 2023 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,759 $ 2,307 $ 3,686 $ 4,122 Short-term lease cost Occupancy and equipment 89 143 186 264 Variable lease cost Occupancy and equipment 367 326 703 624 Gain on lease modifications and Occupancy and equipment — (1) — (73) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 5 6 11 12 Amortization of right-of-use asset Occupancy and equipment 27 27 55 55 Sublease income Occupancy and equipment (139) (215) (311) (496) Total lease cost $ 2,108 $ 2,593 $ 4,330 $ 4,508 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 cash flows to lease liabilities as of June 30, 2024 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2025 $ 4,175 $ 60 June 30, 2026 8,195 121 June 30, 2027 8,054 123 June 30, 2028 7,602 125 June 30, 2029 6,649 127 Thereafter 41,875 850 Total undiscounted future minimum lease payments 76,550 1,406 Less: imputed interest (14,618) (128) Lease liabilities $ 61,932 $ 1,278 |
Leases | Leases As of June 30, 2024, the Company was the lessee in 45 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 June 30, 2024 and December 31, 2023: June 30, December 31, Classification 2024 2023 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 49,123 $ 54,295 Finance leases Premises and equipment, net 1,201 1,256 Total right-of-use assets $ 50,324 $ 55,551 Lease liabilities: Operating leases Operating lease liabilities $ 61,932 $ 67,643 Finance leases Borrowings 1,278 1,326 Total lease liabilities $ 63,210 $ 68,969 Weighted average remaining lease term (in years) - 11.2 11.6 Weighted average remaining lease term (in years) - 10.9 11.4 Weighted average discount rate - operating 3.34 % 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 Six Months Ended June 30, June 30, Classification 2024 2023 2024 2023 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,759 $ 2,307 $ 3,686 $ 4,122 Short-term lease cost Occupancy and equipment 89 143 186 264 Variable lease cost Occupancy and equipment 367 326 703 624 Gain on lease modifications and Occupancy and equipment — (1) — (73) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 5 6 11 12 Amortization of right-of-use asset Occupancy and equipment 27 27 55 55 Sublease income Occupancy and equipment (139) (215) (311) (496) Total lease cost $ 2,108 $ 2,593 $ 4,330 $ 4,508 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 cash flows to lease liabilities as of June 30, 2024 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2025 $ 4,175 $ 60 June 30, 2026 8,195 121 June 30, 2027 8,054 123 June 30, 2028 7,602 125 June 30, 2029 6,649 127 Thereafter 41,875 850 Total undiscounted future minimum lease payments 76,550 1,406 Less: imputed interest (14,618) (128) Lease liabilities $ 61,932 $ 1,278 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Carrying value at beginning of period $ 165,674 $ 164,879 $ 164,249 $ 168,365 Capitalization 1,518 2,273 2,649 4,061 Change in fair value: Due to payoffs/paydowns (3,825) (3,269) (6,549) (5,789) Due to change in valuation inputs or assumptions 1,138 2,550 4,156 (204) Carrying value at end of period $ 164,505 $ 166,433 $ 164,505 $ 166,433 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 and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Servicing income $ 7,316 $ 7,586 $ 14,663 $ 15,354 Change in fair value of mortgage servicing rights (2,687) (719) (2,393) (5,993) Change in fair value of derivative hedging instruments (1,649) (3,503) (4,984) (1,636) Servicing income 2,980 3,364 7,286 7,725 Servicing expenses 1,933 2,331 3,880 4,214 Net servicing income $ 1,047 $ 1,033 $ 3,406 $ 3,511 Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2024 and December 31, 2023 are as follows: June 30, December 31, 2024 2023 Unpaid principal balance of mortgage loans sold and serviced for others $ 10,523,778 $ 10,762,906 Weighted-average prepayment speed (CPR) 6.03 % 6.19 % Estimated impact on fair value of a 10% increase $ (4,328) $ (4,616) Estimated impact on fair value of a 20% increase $ (8,381) $ (8,924) Discount rate 10.3 % 9.62 % Estimated impact on fair value of a 100 bp increase $ (7,569) $ (7,637) Estimated impact on fair value of a 200 bp increase $ (14,500) $ (14,624) Weighted-average coupon interest rate 3.54 % 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 June 30, 2024 and December 31, 2023, mortgage escrow deposits totaled $107,752 and $63,591, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The following table presents a reconciliation of income taxes for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Federal taxes calculated at $ 10,691 21.0 % $ 9,480 21.0 % $ 17,883 21.0 % $ 19,156 21.0 % Increase (decrease) resulting State taxes, net of federal 77 0.1 % 647 1.4 % 210 0.2 % 898 1.0 % Expense from equity based 21 — % 69 0.2 % 76 0.1 % 184 0.2 % Municipal interest income, (328) (0.6) % (451) (1.0) % (701) (0.8) % (907) (1.0) % Bank-owned life insurance (521) (1.0) % (79) (0.2) % (611) (0.7) % (206) (0.2) % Section 162(m) limitation 44 0.1 % 103 0.2 % 204 0.2 % 230 0.2 % Other 935 1.8 % 66 0.2 % 158 0.2 % 177 0.2 % Income tax expense, as $ 10,919 21.4 % $ 9,835 21.8 % $ 17,219 20.2 % $ 19,532 21.4 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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. June 30, December 31, 2024 2023 Commitments to extend credit, excluding interest rate lock commitments $ 2,722,677 $ 2,906,016 Letters of credit 87,329 77,055 Balance at end of period $ 2,810,006 $ 2,983,071 As of June 30, 2024 and December 31, 2023, unfunded loan commitments included above with floating interest rates totaled $2,474,058 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 7,700 $ 18,463 $ 8,770 $ 22,969 Reversal of credit losses on unfunded commitments (1,716) (3,653) (2,786) (8,159) Balance at end of period $ 5,984 $ 14,810 $ 5,984 $ 14,810 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, 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 HFI. The total principal amount of loans repurchased (or indemnified for) was $1,433 and $3,511 for the three and six months ended June 30, 2024, respectively and $1,371 and $4,697 for the three and six months ended June 30, 2023, respectively. The Company maintains a reserve associated with potential repurchases of loans previously sold included in accrued expenses and other liabilities on the Company's consolidated balance sheets. The following table summarizes this activity: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 930 $ 1,358 $ 899 $ 1,621 Provision for (reversal of) loan repurchases or 75 (200) 125 (450) Losses on loans repurchased or indemnified (194) (29) (213) (42) Balance at end of period $ 811 $ 1,129 $ 811 $ 1,129 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 six months ended June 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Designated fair value hedge: Interest expense on deposits $ — $ (1,769) $ — $ (3,277) Interest expense on borrowings — (894) (645) (1,654) Total $ — $ (2,663) $ (645) $ (4,931) During the three and six months ended June 30, 2024, amortization expense totaling $1,752 and $3,595, respectively, related to the terminated fair value hedges was recognized as an increase to interest expense on deposits. As of June 30, 2024, the remaining fair value adjustment related to the terminated fair value hedges of $(993) 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: June 30, 2024 December 31, 2023 Notional Amount Estimated fair value Balance sheet location Notional Amount Estimated fair value Balance sheet location Interest rate swap agreements- $ 9,000 $ 80 Other assets $ 30,000 $ 579 Other assets During the three months ended June 30, 2024, a cash flow hedge with a notional amount of $21,000 matured. The Company's consolidated statements of income included gains of $275 and $522 for the three and six months ended June 30, 2024, respectively, and $232 and $429 for three and six months ended June 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(68), $6, $(130) and $(64) $ (195) $ 17 $ (369) $ (180) 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 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: June 30, 2024 Notional Amount Asset Liability Interest rate contracts $ 549,564 $ 34,935 $ 34,967 Forward commitments 201,000 191 — Interest rate-lock commitments 108,694 1,380 — Futures contracts 232,500 490 — Total $ 1,091,758 $ 36,996 $ 34,967 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 (Losses) gains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Included in mortgage banking income: Interest rate lock commitments $ (693) $ (1,028) $ 176 $ 179 Forward commitments 334 1,031 434 736 Futures contracts (1,402) (2,521) (4,399) (584) Option contracts — (461) — (1,125) Total $ (1,761) $ (2,979) $ (3,789) $ (794) 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 June 30, 2024 Derivative financial assets $ 34,541 $ — $ 34,541 $ 561 $ — $ 33,980 Derivative financial liabilities $ 10,066 $ — $ 10,066 $ 561 $ 9,505 $ — 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 June 30, 2024 and December 31, 2023, the Company had collateral posted of $13,869 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 | 6 Months Ended |
Jun. 30, 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. 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 June 30, 2024 and December 31, 2023 are presented in the following tables: At June 30, 2024 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 428,608 $ — $ 428,608 Mortgage-backed securities - residential — 864,272 — 864,272 Mortgage-backed securities - commercial — 16,103 — 16,103 Municipal securities — 169,977 — 169,977 Corporate securities — 3,419 — 3,419 Total securities $ — $ 1,482,379 $ — $ 1,482,379 Loans held for sale, at fair value $ — $ 84,521 $ — $ 84,521 Mortgage servicing rights — — 164,505 164,505 Derivatives — 37,076 — 37,076 Financial Liabilities: Derivatives — 34,967 — 34,967 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 June 30, 2024 and December 31, 2023 are presented in the following tables: At June 30, 2024 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,417 $ 2,417 Collateral-dependent net loans held for Commercial and industrial — — 3,699 3,699 Construction — — 7,138 7,138 Residential real estate: 1-4 family mortgage — — 499 499 Residential line of credit — — 570 570 Commercial real estate: Owner occupied — — 625 625 Total collateral-dependent loans $ — $ — $ 12,531 $ 12,531 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 Historically, the Company had a portfolio of acquired commercial loans. There were no such loans outstanding as of June 30, 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 and six months ended June 30, 2023: Three Months Ended June 30, 2023 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 12,467 $ (2,957) $ 9,510 Change in fair value: Pay-downs and pay-offs (235) — (235) Changes in valuation included in other noninterest income — (8) (8) Carrying value at end of period $ 12,232 $ (2,965) $ 9,267 Six Months Ended June 30, 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 (22,125) — (22,125) Changes in valuation included in other noninterest income — 902 902 Carrying value at end of period $ 12,232 $ (2,965) $ 9,267 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 and six months ended June 30, 2024 and 2023 are detailed at Note 6, “Mortgage servicing rights.” The following tables present information as of June 30, 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: June 30, 2024 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 12,531 Valuation of collateral Discount for comparable sales 10%-82% Other real estate owned $ 2,417 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 the estimated value of the collateral securing the loans, less estimated selling costs and closing costs related to liquidation of the collateral. For loans secured by real estate, the fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. For non-real estate collateral, fair value is determined based on various sources, including third party asset valuation and internally determined values based on cost adjusted or other judgmentally determined factors. 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 June 30, 2024 and December 31, 2023, total amortized cost of collateral-dependent loans measured on a nonrecurring basis amounted to $22,301 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: June 30, December 31, 2024 2023 Loans held for sale under a fair value option: Mortgage loans held for sale 84,521 46,618 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 22,354 21,229 Total loans held for sale $ 106,875 $ 67,847 Mortgage loans held for sale Net gains of $353 and $556 resulting from fair value changes of mortgage loans were recorded in income during the three and six months ended June 30, 2024, respectively, compared to net losses of $129 and $179 during the three and six months ended June 30, 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 a net loss of $4 and a net gain of $1,817 for the three and six months ended June 30, 2024, respectively, compared to net gains of $874 and $453 during the three and six months ended June 30, 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 June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 Aggregate fair value $ 84,521 $ 46,618 Aggregate unpaid principal balance 82,856 45,509 Difference $ 1,665 $ 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 June 30, 2024 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 800,902 $ 800,902 $ — $ — $ 800,902 Investment securities 1,482,379 — 1,482,379 — 1,482,379 Net loans held for investment 9,154,498 — — 8,854,724 8,854,724 Loans held for sale, at fair value 84,521 — 84,521 — 84,521 Interest receivable 52,781 374 8,056 44,351 52,781 Mortgage servicing rights 164,505 — — 164,505 164,505 Derivatives 37,076 — 37,076 — 37,076 Financial liabilities: Deposits: Without stated maturities $ 8,973,707 $ 8,973,707 $ — $ — $ 8,973,707 With stated maturities 1,494,295 — 1,487,664 — 1,487,664 Securities sold under agreements to repurchase and federal funds purchased 76,801 76,801 — — 76,801 Bank Term Funding Program 130,000 — 129,543 — 129,543 Subordinated debt, net 130,511 — — 124,113 124,113 Interest payable 20,145 4,125 14,520 1,500 20,145 Derivatives 34,967 — 34,967 — 34,967 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 | 6 Months Ended |
Jun. 30, 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. Changes in management structure or allocation methodologies and procedures result in changes in reported segment financial data. 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 and six months ended June 30, 2024 and 2023. Three Months Ended June 30, 2024 Banking (2) Mortgage Consolidated Net interest income $ 101,468 $ 1,147 $ 102,615 Provisions for (reversal of) credit losses 2,432 (208) 2,224 Mortgage banking income — 16,246 16,246 Change in fair value of mortgage servicing rights, net of hedging (1) — (4,336) (4,336) Other noninterest income 13,477 221 13,698 Depreciation and amortization 2,745 116 2,861 Amortization of intangibles 752 — 752 Other noninterest mortgage banking expense — — — Other noninterest expense 58,832 12,648 71,480 Income before income taxes $ 50,184 $ 722 $ 50,906 Income tax expense 10,919 Net income applicable to FB Financial Corporation and noncontrolling interest 39,987 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 39,979 Total assets $ 11,947,550 $ 587,619 $ 12,535,169 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. (2) Banking segment includes noncontrolling interest. Three Months Ended June 30, 2023 Banking (2) Mortgage Consolidated Net interest income $ 99,909 $ 1,634 $ 101,543 (Reversals of) provisions for credit losses (1,149) 71 (1,078) Mortgage banking income — 16,454 16,454 Change in fair value of mortgage servicing rights, net of hedging (1) — (4,222) (4,222) Other noninterest income 11,480 101 11,581 Depreciation and amortization 2,220 232 2,452 Amortization of intangibles 940 — 940 Other noninterest mortgage banking expense — — — Other noninterest expense 63,048 14,852 77,900 Income before income taxes $ 46,330 $ (1,188) $ 45,142 Income tax expense 9,835 Net income applicable to FB Financial Corporation and noncontrolling interest 35,307 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 35,299 Total assets $ 12,307,231 $ 580,164 $ 12,887,395 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. (2) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2024 Banking (2) Mortgage Consolidated Net interest income $ 200,205 $ 1,900 $ 202,105 Provisions for (reversal of) credit losses 3,270 (264) 3,006 Mortgage banking income — 31,872 31,872 Change in fair value of mortgage servicing rights, net of hedging (1) — (7,377) (7,377) Other noninterest income 8,683 392 9,075 Depreciation and amortization 5,453 249 5,702 Amortization of intangibles 1,541 — 1,541 Other noninterest expense 115,679 24,591 140,270 Income before income taxes $ 82,945 $ 2,211 $ 85,156 Income tax expense 17,219 Net income applicable to FB Financial Corporation and noncontrolling interest 67,937 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 67,929 Total assets $ 11,947,550 $ 587,619 $ 12,535,169 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. (2) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2023 Banking (2) Mortgage Consolidated Net interest income $ 202,179 $ 3,024 $ 205,203 (Reversals of) provisions for credit losses (937) 350 (587) Mortgage banking income — 31,947 31,947 Change in fair value of mortgage servicing rights, net of hedging (1) — (7,629) (7,629) Other noninterest income (loss) 22,973 (129) 22,844 Depreciation and amortization 4,269 411 4,680 Amortization of intangibles 1,930 — 1,930 Other noninterest expense 126,761 28,361 155,122 Income before income taxes $ 93,129 $ (1,909) $ 91,220 Income tax expense 19,532 Net income applicable to FB Financial Corporation and noncontrolling interest 71,688 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 71,680 Total assets $ 12,307,231 $ 580,164 $ 12,887,395 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. (2) Banking segment includes noncontrolling interest. |
Minimum Capital Requirements
Minimum Capital Requirements | 6 Months Ended |
Jun. 30, 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 June 30, 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. Beginning in 2022, the cumulative amount of the transition adjustments became fixed and were phased out in annual increments over a three-year period. 2024 represents the final year of this CECL adoption phase out, with 25% of the initial impact of CECL adoption being adjusted out of regulatory capital calculations. Actual and required capital amounts and ratios are included below as of the dates indicated. June 30, 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 $ 1,679,585 15.1 % $ 1,164,673 10.5 % N/A N/A FirstBank 1,644,189 14.9 % 1,161,246 10.5 % $ 1,105,949 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,441,166 13.0 % $ 942,830 8.5 % N/A N/A FirstBank 1,406,173 12.7 % 940,056 8.5 % $ 884,759 8.0 % Common Equity Tier 1 Capital FB Financial Corporation $ 1,411,166 12.7 % $ 776,449 7.0 % N/A N/A FirstBank 1,406,173 12.7 % 774,164 7.0 % $ 718,867 6.5 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,441,166 11.7 % $ 491,874 4.0 % N/A N/A FirstBank 1,406,173 11.5 % 491,198 4.0 % $ 613,998 5.0 % 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 % 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 % 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 % |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2024: Restricted Stock Weighted Balance at beginning of period (unvested) 323,520 $ 37.52 Granted 172,724 35.78 Vested (138,211) 38.27 Forfeited (7,092) 37.71 Balance at end of period (unvested) 350,941 $ 36.37 The total fair value of RSUs vested and released was $4,621 and $5,289 for the three and six months ended June 30, 2024, respectively, and $1,802 and $6,393 for the three and six months ended June 30, 2023, respectively. The compensation cost related to these grants and vesting of RSUs was $1,291 and $3,997 for the three and six months ended June 30, 2024, respectively, and $2,188 and $3,894 for the three and six months ended June 30, 2023, respectively. This includes amounts paid related to director grants and compensation elected to be settled in stock amounting to $148 and $347 during the three and six months ended June 30, 2024, respectively, and $272 and $447 for the three and six months ended June 30, 2023, respectively. As of June 30, 2024, there was $9,530 of total unrecognized compensation cost related to unvested RSUs which is expected to be recognized over a weighted-average period of 1.97 years. Additionally, as of June 30, 2024, there were 1,360,392 shares available for issuance under the Company's stock compensation plans. As of June 30, 2024 and December 31, 2023, there was $244 and $268, 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. For PSUs granted after December 31, 2023, 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 six months ended June 30, 2024: Performance Stock Units Outstanding (1) Weighted Balance at beginning of period (unvested) 176,163 $ 40.86 Granted 97,738 35.60 Performance adjustment (2) (9,778) 42.54 Vested (40,071) 42.71 Forfeited or expired (2,133) 39.30 Balance at end of period (unvested) 221,919 $ 38.08 (1) PSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. (2) The performance adjustment represents the difference in shares ultimately awarded due to performance attainment above or below target. The following table summarizes data related to the Company's outstanding PSUs as of June 30, 2024: Grant Year Grant Price Performance Period PSUs Outstanding 2022 $ 44.44 2022 to 2024 48,710 2023 $ 37.17 2023 to 2025 75,893 2024 $ 35.60 2024 to 2026 97,316 The Company recorded compensation cost of $799 and $913 for the for the three and six months ended June 30, 2024, respectively, and $1,060 and $1,639 for the three and six months ended June 30, 2023, respectively. As of June 30, 2024, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $13,897, and the weighted average remaining performance period over which the cost could be recognized was 2.18 years. As of June 30, 2024 and December 31, 2023, there was $141 and $85, respectively, accrued in other liabilities related to dividend equivalent units declared to be paid upon vesting and distribution of the underlying PSUs. 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 no shares issued under the ESPP during the three months ended June 30, 2024 or 2023. 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 six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, there were 2,283,620 shares available for issuance under the ESPP. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related party transactions Loans The Bank has made and expects to continue to make loans to management, executive officers, the directors and significant shareholders of the Company and their related interests in the ordinary course of business, in compliance with regulatory requirements. An analysis of loans to management, executive officers, the directors and significant shareholders of the Bank and their related interests is presented below: Loans outstanding at January 1, 2024 $ 49,073 New loans and advances 2,332 Change in related party status — Repayments (21,725) Loans outstanding at June 30, 2024 $ 29,680 Unfunded commitments to management, executive officers, the directors, and significant shareholders and their related interests totaled $23,850 and $44,206 at June 30, 2024 and December 31, 2023, respectively. Deposits The Bank held deposits from related parties totaling $219,872 and $316,141 as of June 30, 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 $121 and $211 for the three and six months ended June 30, 2024, respectively, and $103 and $193 for the three and six months ended June 30, 2023, respectively. Aviation lease Through a wholly-owned subsidiary, FBK Aviation, LLC, the Company owns and maintains an aircraft. FBK Aviation, LLC maintains non-exclusive aircraft leases with entities owned by certain directors. The Company recognized income of $19 and $43 during the three and six months ended June 30, 2024, respectively, and $4 and $11 during the three and six months ended June 30, 2023, respectively, under these agreements. Equity investment in preferred stock and master loan purchase agreement The Company holds preferred stock of a privately held entity which originates manufactured housing loans through utilization of its proprietary developed technology. In connection with this investment, an executive officer of the Company serves on its board of directors. This investment is included in other assets on the consolidated balance sheets with a carrying amount of $10,000 as of both June 30, 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. The Company also has a master loan purchase agreement with this privately held entity to purchase up to $250,000 in manufactured loan housing production over an initial five-year term. Under this agreement, the Company purchased $17,581 and $26,806 of loans for the three and six months ended June 30, 2024, respectively, and purchased $6,449 of loans for both the three and six months ended June 30, 2023. As of June 30, 2024 and December 31, 2023, the amortized cost of these loans HFI amounted to $57,885 and $32,154, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 39,979 | $ 35,299 | $ 67,929 | $ 71,680 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 common share | Earnings per common share Basic earnings per common share 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 earnings per common share includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted earnings per common share 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. While the Company is continuing to evaluate the impact, ASU 2023-07 is not expected to have a material impact on the Company's reportable segments 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 evaluating the impact this will have on the Company's income tax 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 may be 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. 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) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 39,979 $ 35,299 $ 67,929 $ 71,680 Dividends paid on and undistributed earnings allocated to participating securities — — — — Earnings available to common shareholders $ 39,979 $ 35,299 $ 67,929 $ 71,680 Weighted average basic shares outstanding 46,762,488 46,779,388 46,818,685 46,729,778 Basic earnings per common share $ 0.85 $ 0.75 $ 1.45 $ 1.53 Diluted earnings per common share: Earnings available to common shareholders $ 39,979 $ 35,299 $ 67,929 $ 71,680 Weighted average basic shares outstanding 46,762,488 46,779,388 46,818,685 46,729,778 Weighted average diluted shares contingently issuable (1) 82,655 35,466 92,781 47,825 Weighted average diluted shares outstanding 46,845,143 46,814,854 46,911,466 46,777,603 Diluted earnings per common share $ 0.85 $ 0.75 $ 1.45 $ 1.53 (1) Excludes 36,507 and 2,412 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2024 and 315,989 and 250,074 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2023. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 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, net at June 30, 2024 and December 31, 2023: June 30, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses on investments Fair Value Investment Securities AFS debt securities U.S. government agency securities $ 428,514 $ 962 $ (868) $ — $ 428,608 Mortgage-backed securities - residential 1,021,125 439 (157,292) — 864,272 Mortgage-backed securities - commercial 17,398 — (1,295) — 16,103 Municipal securities 194,050 33 (24,106) — 169,977 Corporate securities 3,500 — (81) — 3,419 Total $ 1,664,587 $ 1,434 $ (183,642) $ — $ 1,482,379 December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses on 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 on AFS debt securities for which an allowance for credit losses has not been recorded at June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 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 $ 191,125 $ (232) $ 7,218 $ (636) $ 198,343 $ (868) Mortgage-backed securities - residential — — 754,282 (157,292) 754,282 (157,292) Mortgage-backed securities - commercial — — 16,103 (1,295) 16,103 (1,295) Municipal securities 31,931 (2,197) 132,733 (21,909) 164,664 (24,106) Corporate securities — — 3,419 (81) 3,419 (81) Total $ 223,056 $ (2,429) $ 913,755 $ (181,213) $ 1,136,811 $ (183,642) 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 | June 30, December 31, 2024 2023 Available-for-sale Available-for-sale Amortized cost Fair Value Amortized cost Fair Value Due in one year or less $ 3,188 $ 3,174 $ 64,776 $ 64,279 Due in one to five years 10,586 9,832 75,996 71,801 Due in five to ten years 157,552 156,768 51,162 49,630 Due in over ten years 454,738 432,230 391,270 372,331 626,064 602,004 583,204 558,041 Mortgage-backed securities - residential 1,021,125 864,272 1,057,389 896,971 Mortgage-backed securities - commercial 17,398 16,103 18,186 16,961 Total AFS debt securities $ 1,664,587 $ 1,482,379 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Proceeds from sales $ — $ — $ 207,882 $ — Proceeds from maturities, prepayments and calls 67,609 31,588 134,236 58,415 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) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding as of June 30, 2024 and December 31, 2023, by class of financing receivable are as follows: June 30, December 31, 2024 2023 Commercial and industrial $ 1,614,307 $ 1,720,733 Construction 1,200,123 1,397,313 Residential real estate: 1-to-4 family mortgage 1,584,029 1,568,552 Residential line of credit 559,359 530,912 Multi-family mortgage 597,039 603,804 Commercial real estate: Owner-occupied 1,274,705 1,232,071 Non-owner occupied 2,035,102 1,943,525 Consumer and other 444,889 411,873 Gross loans 9,309,553 9,408,783 Less: Allowance for credit losses on loans HFI (155,055) (150,326) Net loans $ 9,154,498 $ 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 June 30, 2024 and December 31, 2023 and the gross charge-offs for the six months ended June 30, 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 six months ended June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 54,634 $ 201,189 $ 169,826 $ 67,439 $ 34,393 $ 123,665 $ 901,459 $ 1,552,605 Special Mention 55 3,279 15,314 — — 235 7,730 26,613 Classified — 48 5,962 5,113 2,925 6,123 14,918 35,089 Total 54,689 204,516 191,102 72,552 37,318 130,023 924,107 1,614,307 Current-period gross — — — 24 16 7 22 69 Construction Pass 90,338 184,198 464,801 115,507 25,809 75,400 189,161 1,145,214 Special Mention — 404 12,534 645 11 623 — 14,217 Classified — — 5,287 680 8,489 — 26,236 40,692 Total 90,338 184,602 482,622 116,832 34,309 76,023 215,397 1,200,123 Current-period gross — — — — — — 92 92 Residential real estate: Multi-family mortgage Pass 5,217 6,085 206,098 235,467 52,784 70,920 19,434 596,005 Special Mention — — — — — — — — Classified — — — — — 1,034 — 1,034 Total 5,217 6,085 206,098 235,467 52,784 71,954 19,434 597,039 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 85,878 113,724 246,192 224,546 110,767 410,746 62,949 1,254,802 Special Mention — — 1,396 2,616 — 2,532 — 6,544 Classified — — 6,862 16 64 5,361 1,056 13,359 Total 85,878 113,724 254,450 227,178 110,831 418,639 64,005 1,274,705 Current-period gross — — — — — — — — Non-owner occupied Pass 46,629 43,016 546,369 467,839 120,570 720,971 41,761 1,987,155 Special Mention — — 5,341 3,955 — 19,486 — 28,782 Classified — — — 996 — 18,169 — 19,165 Total 46,629 43,016 551,710 472,790 120,570 758,626 41,761 2,035,102 Current-period gross — — — — — — — — Total commercial loan types Pass 282,696 548,212 1,633,286 1,110,798 344,323 1,401,702 1,214,764 6,535,781 Special Mention 55 3,683 34,585 7,216 11 22,876 7,730 76,156 Classified — 48 18,111 6,805 11,478 30,687 42,210 109,339 Total $ 282,751 $ 551,943 $ 1,685,982 $ 1,124,819 $ 355,812 $ 1,455,265 $ 1,264,704 $ 6,721,276 Current-period gross $ — $ — $ — $ 24 $ 16 $ 7 $ 114 $ 161 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 June 30, 2024 and December 31, 2023 and the gross charge-offs for the six months ended June 30, 2023 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 six months ended June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 90,475 $ 178,755 $ 491,769 $ 383,927 $ 139,696 $ 281,077 $ — $ 1,565,699 Nonperforming — 146 4,001 3,686 3,026 7,471 — 18,330 Total 90,475 178,901 495,770 387,613 142,722 288,548 — 1,584,029 Current-period gross — — 150 130 — — 13 293 Residential line of credit Performing — — — — — — 557,386 557,386 Nonperforming — — — — — — 1,973 1,973 Total — — — — — — 559,359 559,359 Current-period gross — — — — — — 20 20 Consumer and other Performing 61,846 103,413 83,702 40,625 31,828 110,286 1,366 433,066 Nonperforming — 881 1,307 2,401 2,107 5,127 — 11,823 Total 61,846 104,294 85,009 43,026 33,935 115,413 1,366 444,889 Current-period gross 515 368 123 164 46 150 — 1,366 Total consumer type loans Performing 152,321 282,168 575,471 424,552 171,524 391,363 558,752 2,556,151 Nonperforming — 1,027 5,308 6,087 5,133 12,598 1,973 32,126 Total $ 152,321 $ 283,195 $ 580,779 $ 430,639 $ 176,657 $ 403,961 $ 560,725 $ 2,588,277 Current-period gross $ 515 $ 368 $ 273 $ 294 $ 46 $ 150 $ 33 $ 1,679 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 June 30, 2024 and December 31, 2023: June 30, 2024 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 1,334 $ 65 $ 22,797 $ 1,590,111 $ 1,614,307 Construction 11,767 1,306 4,590 1,182,460 1,200,123 Residential real estate: 1-to-4 family mortgage 23,244 11,643 6,687 1,542,455 1,584,029 Residential line of credit 2,282 1,738 235 555,104 559,359 Multi-family mortgage — — 29 597,010 597,039 Commercial real estate: Owner occupied 274 — 9,163 1,265,268 1,274,705 Non-owner occupied 3,512 — 3,147 2,028,443 2,035,102 Consumer and other 13,767 2,306 9,517 419,299 444,889 Total $ 56,180 $ 17,058 $ 56,165 $ 9,180,150 $ 9,309,553 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 June 30, 2024 and December 31, 2023 by class of financing receivable. June 30, 2024 Nonaccrual Nonaccrual Related Commercial and industrial $ 9,109 $ 13,688 $ 8,941 Construction 2,753 1,837 270 Residential real estate: 1-to-4 family mortgage 1,972 4,715 126 Residential line of credit 148 87 2 Multi-family mortgage — 29 1 Commercial real estate: Owner occupied 7,684 1,479 287 Non-owner occupied 3,119 28 1 Consumer and other — 9,517 493 Total $ 24,785 $ 31,380 $ 10,121 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 and six months ended June 30, 2024: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Commercial and industrial $ 345 $ 28 $ 569 $ 48 Construction 79 46 140 52 Residential real estate: 1-to-4 family mortgage 34 70 34 149 Residential line of credit 23 27 39 51 Multi-family mortgage 1 — 1 1 Commercial real estate: Owner occupied 75 39 124 97 Non-owner occupied 54 55 89 137 Consumer and other — 143 — 316 Total $ 611 $ 408 $ 996 $ 851 |
Schedule of Financial Effect of TDRs | The following tables present the amortized cost of FDM loans as of June 30, 2024 by class of financing receivable and type of concession granted that were modified during the three and six months ended June 30, 2024. Three Months Ended Term extension Payment deferral and term extension Interest rate reduction and term extension Total % of total class of financing receivables Consumer and other $ 18 $ — $ 98 $ 116 — % Total $ 18 $ — $ 98 $ 116 — % Six Months Ended Term extension Payment deferral and term extension Interest rate reduction and term extension Total % of total class of financing receivables Construction $ — $ 14,236 $ — $ 14,236 1.2 % Commercial real estate: Non-owner occupied 10,351 — — 10,351 0.5 % Consumer and other 40 — 98 138 — % Total $ 10,391 $ 14,236 $ 98 $ 24,725 0.3 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficultly: Three Months Ended June 30, 2024 Weighted average term extension Weighted average payment deferral Weighted average interest rate reduction Consumer and other 21 — 1.49% Six Months Ended June 30, 2024 Weighted average term extension Weighted average payment deferral Weighted average interest rate reduction Construction 6 3 — Commercial real estate: Non-owner occupied 6 — — Consumer and other 25 — 1.49% |
Schedule of Financing Receivable, Modified, Past Due | The table below depicts the performance of loans HFI held for investment as of June 30, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months. June 30, 2024 30-89 days 90 days or Nonaccrual loans (1) Loans current Total Construction $ — $ — $ — $ 14,236 $ 14,236 Residential real estate: 1-to-4 family mortgage — — 24 — 24 Commercial real estate: Non-owner occupied — — — 10,351 10,351 Consumer and other — — — 138 138 Total $ — $ — $ 24 $ 24,725 $ 24,749 (1) Loans were on non-accrual when modified and subsequently classified as FDM. |
Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans | For collateral-dependent loans, or those loans for which repayment is expected to be provided substantially through the operation or sale of collateral, where the borrower is also 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. June 30, 2024 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ 82 $ 363 $ 21,687 $ 22,132 $ 8,870 Construction 23,041 1,653 — 24,694 567 Residential real estate: 1-to-4 family mortgage 3,892 — — 3,892 58 Residential line of credit 733 — — 733 15 Multi-family mortgage — — — — — Commercial real estate: Owner occupied 1,426 7,142 8,568 258 Non-owner occupied 18,141 — — 18,141 — Total $ 47,315 $ 9,158 $ 21,687 $ 78,160 $ 9,768 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 and six months ended June 30, 2024 and 2023: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2024 Beginning balance - March 31, 2024 $ 17,272 $ 37,308 $ 26,128 $ 9,918 $ 8,973 $ 10,749 $ 23,949 $ 17,370 $ 151,667 Provision for (reversal of) 5,264 (3,138) (214) 179 (163) 375 594 1,043 3,940 Recoveries of loans previously charged-off 20 — 10 — — 188 — 143 361 Loans charged off (26) — (293) — — — — (594) (913) Ending balance - June 30, 2024 $ 22,530 $ 34,170 $ 25,631 $ 10,097 $ 8,810 $ 11,312 $ 24,543 $ 17,962 $ 155,055 Six Months Ended June 30, 2024 Beginning balance - December 31, 2023 $ 19,599 $ 35,372 $ 26,505 $ 9,468 $ 8,842 $ 10,653 $ 22,965 $ 16,922 $ 150,326 Provision for (reversal of) 2,966 (1,110) (647) 649 (32) 431 1,578 1,957 5,792 Recoveries of loans previously charged-off 34 — 66 — — 228 — 449 777 Loans charged off (69) (92) (293) (20) — — — (1,366) (1,840) Ending balance - June 30, 2024 $ 22,530 $ 34,170 $ 25,631 $ 10,097 $ 8,810 $ 11,312 $ 24,543 $ 17,962 $ 155,055 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2023 Beginning balance - March 31, 2023 $ 11,117 $ 41,025 $ 27,213 $ 9,034 $ 6,619 $ 7,952 $ 21,868 $ 13,981 $ 138,809 Provision for (reversal of) 192 (1,115) 185 151 209 643 1,009 1,301 2,575 Recoveries of loans previously charged-off 13 10 25 — — 16 — 108 172 Loans charged off (11) — (16) — — (144) — (721) (892) Ending balance - June 30, 2023 $ 11,311 $ 39,920 $ 27,407 $ 9,185 $ 6,828 $ 8,467 $ 22,877 $ 14,669 $ 140,664 Six Months Ended June 30, 2023 Beginning balance - December 31, 2022 $ 11,106 $ 39,808 $ 26,141 $ 7,494 $ 6,490 $ 7,783 $ 21,916 $ 13,454 $ 134,192 Provision for (reversal of) 182 102 1,258 1,691 338 746 961 2,294 7,572 Recoveries of loans previously charged-off 80 10 40 — — 82 — 347 559 Loans charged off (57) — (32) — — (144) — (1,426) (1,659) Ending balance - $ 11,311 $ 39,920 $ 27,407 $ 9,185 $ 6,828 $ 8,467 $ 22,877 $ 14,669 $ 140,664 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule of Other Real Estate Owned | The following table summarizes the other real estate owned for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 3,613 $ 4,085 $ 3,192 $ 5,794 Transfers from loans 1,647 358 2,400 593 Proceeds from sale of other real estate owned (1,045) (3,124) (1,434) (5,155) (Loss) gain on sale of other real estate owned (42) 655 15 742 Balance at end of period $ 4,173 $ 1,974 $ 4,173 $ 1,974 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 and December 31, 2023: June 30, December 31, Classification 2024 2023 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 49,123 $ 54,295 Finance leases Premises and equipment, net 1,201 1,256 Total right-of-use assets $ 50,324 $ 55,551 Lease liabilities: Operating leases Operating lease liabilities $ 61,932 $ 67,643 Finance leases Borrowings 1,278 1,326 Total lease liabilities $ 63,210 $ 68,969 Weighted average remaining lease term (in years) - 11.2 11.6 Weighted average remaining lease term (in years) - 10.9 11.4 Weighted average discount rate - operating 3.34 % 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 Six Months Ended June 30, June 30, Classification 2024 2023 2024 2023 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 1,759 $ 2,307 $ 3,686 $ 4,122 Short-term lease cost Occupancy and equipment 89 143 186 264 Variable lease cost Occupancy and equipment 367 326 703 624 Gain on lease modifications and Occupancy and equipment — (1) — (73) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 5 6 11 12 Amortization of right-of-use asset Occupancy and equipment 27 27 55 55 Sublease income Occupancy and equipment (139) (215) (311) (496) Total lease cost $ 2,108 $ 2,593 $ 4,330 $ 4,508 |
Schedule of Maturity Analysis of Operating Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of June 30, 2024 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2025 $ 4,175 $ 60 June 30, 2026 8,195 121 June 30, 2027 8,054 123 June 30, 2028 7,602 125 June 30, 2029 6,649 127 Thereafter 41,875 850 Total undiscounted future minimum lease payments 76,550 1,406 Less: imputed interest (14,618) (128) Lease liabilities $ 61,932 $ 1,278 |
Schedule of Maturity of Finance Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of cash flows to lease liabilities as of June 30, 2024 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2025 $ 4,175 $ 60 June 30, 2026 8,195 121 June 30, 2027 8,054 123 June 30, 2028 7,602 125 June 30, 2029 6,649 127 Thereafter 41,875 850 Total undiscounted future minimum lease payments 76,550 1,406 Less: imputed interest (14,618) (128) Lease liabilities $ 61,932 $ 1,278 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Carrying value at beginning of period $ 165,674 $ 164,879 $ 164,249 $ 168,365 Capitalization 1,518 2,273 2,649 4,061 Change in fair value: Due to payoffs/paydowns (3,825) (3,269) (6,549) (5,789) Due to change in valuation inputs or assumptions 1,138 2,550 4,156 (204) Carrying value at end of period $ 164,505 $ 166,433 $ 164,505 $ 166,433 |
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 and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Servicing income $ 7,316 $ 7,586 $ 14,663 $ 15,354 Change in fair value of mortgage servicing rights (2,687) (719) (2,393) (5,993) Change in fair value of derivative hedging instruments (1,649) (3,503) (4,984) (1,636) Servicing income 2,980 3,364 7,286 7,725 Servicing expenses 1,933 2,331 3,880 4,214 Net servicing income $ 1,047 $ 1,033 $ 3,406 $ 3,511 |
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 June 30, 2024 and December 31, 2023 are as follows: June 30, December 31, 2024 2023 Unpaid principal balance of mortgage loans sold and serviced for others $ 10,523,778 $ 10,762,906 Weighted-average prepayment speed (CPR) 6.03 % 6.19 % Estimated impact on fair value of a 10% increase $ (4,328) $ (4,616) Estimated impact on fair value of a 20% increase $ (8,381) $ (8,924) Discount rate 10.3 % 9.62 % Estimated impact on fair value of a 100 bp increase $ (7,569) $ (7,637) Estimated impact on fair value of a 200 bp increase $ (14,500) $ (14,624) Weighted-average coupon interest rate 3.54 % 3.47 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 335 334 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Taxes | The following table presents a reconciliation of income taxes for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Federal taxes calculated at $ 10,691 21.0 % $ 9,480 21.0 % $ 17,883 21.0 % $ 19,156 21.0 % Increase (decrease) resulting State taxes, net of federal 77 0.1 % 647 1.4 % 210 0.2 % 898 1.0 % Expense from equity based 21 — % 69 0.2 % 76 0.1 % 184 0.2 % Municipal interest income, (328) (0.6) % (451) (1.0) % (701) (0.8) % (907) (1.0) % Bank-owned life insurance (521) (1.0) % (79) (0.2) % (611) (0.7) % (206) (0.2) % Section 162(m) limitation 44 0.1 % 103 0.2 % 204 0.2 % 230 0.2 % Other 935 1.8 % 66 0.2 % 158 0.2 % 177 0.2 % Income tax expense, as $ 10,919 21.4 % $ 9,835 21.8 % $ 17,219 20.2 % $ 19,532 21.4 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | June 30, December 31, 2024 2023 Commitments to extend credit, excluding interest rate lock commitments $ 2,722,677 $ 2,906,016 Letters of credit 87,329 77,055 Balance at end of period $ 2,810,006 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 7,700 $ 18,463 $ 8,770 $ 22,969 Reversal of credit losses on unfunded commitments (1,716) (3,653) (2,786) (8,159) Balance at end of period $ 5,984 $ 14,810 $ 5,984 $ 14,810 |
Schedule of Activity in the Repurchase Reserve | The following table summarizes this activity: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 930 $ 1,358 $ 899 $ 1,621 Provision for (reversal of) loan repurchases or 75 (200) 125 (450) Losses on loans repurchased or indemnified (194) (29) (213) (42) Balance at end of period $ 811 $ 1,129 $ 811 $ 1,129 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Designated fair value hedge: Interest expense on deposits $ — $ (1,769) $ — $ (3,277) Interest expense on borrowings — (894) (645) (1,654) Total $ — $ (2,663) $ (645) $ (4,931) |
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 Derivative Financial Instruments | The following presents a summary of the Company's designated cash flow hedges as of the dates presented: June 30, 2024 December 31, 2023 Notional Amount Estimated fair value Balance sheet location Notional Amount Estimated fair value Balance sheet location Interest rate swap agreements- $ 9,000 $ 80 Other assets $ 30,000 $ 579 Other assets The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: June 30, 2024 Notional Amount Asset Liability Interest rate contracts $ 549,564 $ 34,935 $ 34,967 Forward commitments 201,000 191 — Interest rate-lock commitments 108,694 1,380 — Futures contracts 232,500 490 — Total $ 1,091,758 $ 36,996 $ 34,967 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 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(68), $6, $(130) and $(64) $ (195) $ 17 $ (369) $ (180) (Losses) gains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Included in mortgage banking income: Interest rate lock commitments $ (693) $ (1,028) $ 176 $ 179 Forward commitments 334 1,031 434 736 Futures contracts (1,402) (2,521) (4,399) (584) Option contracts — (461) — (1,125) Total $ (1,761) $ (2,979) $ (3,789) $ (794) |
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 June 30, 2024 Derivative financial assets $ 34,541 $ — $ 34,541 $ 561 $ — $ 33,980 Derivative financial liabilities $ 10,066 $ — $ 10,066 $ 561 $ 9,505 $ — 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 June 30, 2024 Derivative financial assets $ 34,541 $ — $ 34,541 $ 561 $ — $ 33,980 Derivative financial liabilities $ 10,066 $ — $ 10,066 $ 561 $ 9,505 $ — 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 and December 31, 2023 are presented in the following tables: At June 30, 2024 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 428,608 $ — $ 428,608 Mortgage-backed securities - residential — 864,272 — 864,272 Mortgage-backed securities - commercial — 16,103 — 16,103 Municipal securities — 169,977 — 169,977 Corporate securities — 3,419 — 3,419 Total securities $ — $ 1,482,379 $ — $ 1,482,379 Loans held for sale, at fair value $ — $ 84,521 $ — $ 84,521 Mortgage servicing rights — — 164,505 164,505 Derivatives — 37,076 — 37,076 Financial Liabilities: Derivatives — 34,967 — 34,967 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 June 30, 2024 and December 31, 2023 are presented in the following tables: At June 30, 2024 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,417 $ 2,417 Collateral-dependent net loans held for Commercial and industrial — — 3,699 3,699 Construction — — 7,138 7,138 Residential real estate: 1-4 family mortgage — — 499 499 Residential line of credit — — 570 570 Commercial real estate: Owner occupied — — 625 625 Total collateral-dependent loans $ — $ — $ 12,531 $ 12,531 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 and six months ended June 30, 2023: Three Months Ended June 30, 2023 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 12,467 $ (2,957) $ 9,510 Change in fair value: Pay-downs and pay-offs (235) — (235) Changes in valuation included in other noninterest income — (8) (8) Carrying value at end of period $ 12,232 $ (2,965) $ 9,267 Six Months Ended June 30, 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 (22,125) — (22,125) Changes in valuation included in other noninterest income — 902 902 Carrying value at end of period $ 12,232 $ (2,965) $ 9,267 |
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 June 30, 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: June 30, 2024 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 12,531 Valuation of collateral Discount for comparable sales 10%-82% Other real estate owned $ 2,417 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: June 30, December 31, 2024 2023 Loans held for sale under a fair value option: Mortgage loans held for sale 84,521 46,618 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 22,354 21,229 Total loans held for sale $ 106,875 $ 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 June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 Aggregate fair value $ 84,521 $ 46,618 Aggregate unpaid principal balance 82,856 45,509 Difference $ 1,665 $ 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 June 30, 2024 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 800,902 $ 800,902 $ — $ — $ 800,902 Investment securities 1,482,379 — 1,482,379 — 1,482,379 Net loans held for investment 9,154,498 — — 8,854,724 8,854,724 Loans held for sale, at fair value 84,521 — 84,521 — 84,521 Interest receivable 52,781 374 8,056 44,351 52,781 Mortgage servicing rights 164,505 — — 164,505 164,505 Derivatives 37,076 — 37,076 — 37,076 Financial liabilities: Deposits: Without stated maturities $ 8,973,707 $ 8,973,707 $ — $ — $ 8,973,707 With stated maturities 1,494,295 — 1,487,664 — 1,487,664 Securities sold under agreements to repurchase and federal funds purchased 76,801 76,801 — — 76,801 Bank Term Funding Program 130,000 — 129,543 — 129,543 Subordinated debt, net 130,511 — — 124,113 124,113 Interest payable 20,145 4,125 14,520 1,500 20,145 Derivatives 34,967 — 34,967 — 34,967 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) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2024 and 2023. Three Months Ended June 30, 2024 Banking (2) Mortgage Consolidated Net interest income $ 101,468 $ 1,147 $ 102,615 Provisions for (reversal of) credit losses 2,432 (208) 2,224 Mortgage banking income — 16,246 16,246 Change in fair value of mortgage servicing rights, net of hedging (1) — (4,336) (4,336) Other noninterest income 13,477 221 13,698 Depreciation and amortization 2,745 116 2,861 Amortization of intangibles 752 — 752 Other noninterest mortgage banking expense — — — Other noninterest expense 58,832 12,648 71,480 Income before income taxes $ 50,184 $ 722 $ 50,906 Income tax expense 10,919 Net income applicable to FB Financial Corporation and noncontrolling interest 39,987 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 39,979 Total assets $ 11,947,550 $ 587,619 $ 12,535,169 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. (2) Banking segment includes noncontrolling interest. Three Months Ended June 30, 2023 Banking (2) Mortgage Consolidated Net interest income $ 99,909 $ 1,634 $ 101,543 (Reversals of) provisions for credit losses (1,149) 71 (1,078) Mortgage banking income — 16,454 16,454 Change in fair value of mortgage servicing rights, net of hedging (1) — (4,222) (4,222) Other noninterest income 11,480 101 11,581 Depreciation and amortization 2,220 232 2,452 Amortization of intangibles 940 — 940 Other noninterest mortgage banking expense — — — Other noninterest expense 63,048 14,852 77,900 Income before income taxes $ 46,330 $ (1,188) $ 45,142 Income tax expense 9,835 Net income applicable to FB Financial Corporation and noncontrolling interest 35,307 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 35,299 Total assets $ 12,307,231 $ 580,164 $ 12,887,395 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. (2) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2024 Banking (2) Mortgage Consolidated Net interest income $ 200,205 $ 1,900 $ 202,105 Provisions for (reversal of) credit losses 3,270 (264) 3,006 Mortgage banking income — 31,872 31,872 Change in fair value of mortgage servicing rights, net of hedging (1) — (7,377) (7,377) Other noninterest income 8,683 392 9,075 Depreciation and amortization 5,453 249 5,702 Amortization of intangibles 1,541 — 1,541 Other noninterest expense 115,679 24,591 140,270 Income before income taxes $ 82,945 $ 2,211 $ 85,156 Income tax expense 17,219 Net income applicable to FB Financial Corporation and noncontrolling interest 67,937 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 67,929 Total assets $ 11,947,550 $ 587,619 $ 12,535,169 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. (2) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2023 Banking (2) Mortgage Consolidated Net interest income $ 202,179 $ 3,024 $ 205,203 (Reversals of) provisions for credit losses (937) 350 (587) Mortgage banking income — 31,947 31,947 Change in fair value of mortgage servicing rights, net of hedging (1) — (7,629) (7,629) Other noninterest income (loss) 22,973 (129) 22,844 Depreciation and amortization 4,269 411 4,680 Amortization of intangibles 1,930 — 1,930 Other noninterest expense 126,761 28,361 155,122 Income before income taxes $ 93,129 $ (1,909) $ 91,220 Income tax expense 19,532 Net income applicable to FB Financial Corporation and noncontrolling interest 71,688 Net income applicable to noncontrolling interest (2) 8 Net income applicable to FB Financial Corporation $ 71,680 Total assets $ 12,307,231 $ 580,164 $ 12,887,395 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. (2) Banking segment includes noncontrolling interest. |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 6 Months Ended |
Jun. 30, 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. June 30, 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 $ 1,679,585 15.1 % $ 1,164,673 10.5 % N/A N/A FirstBank 1,644,189 14.9 % 1,161,246 10.5 % $ 1,105,949 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,441,166 13.0 % $ 942,830 8.5 % N/A N/A FirstBank 1,406,173 12.7 % 940,056 8.5 % $ 884,759 8.0 % Common Equity Tier 1 Capital FB Financial Corporation $ 1,411,166 12.7 % $ 776,449 7.0 % N/A N/A FirstBank 1,406,173 12.7 % 774,164 7.0 % $ 718,867 6.5 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,441,166 11.7 % $ 491,874 4.0 % N/A N/A FirstBank 1,406,173 11.5 % 491,198 4.0 % $ 613,998 5.0 % 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 % 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 % 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 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock Units | The following table summarizes changes in RSUs for the six months ended June 30, 2024: Restricted Stock Weighted Balance at beginning of period (unvested) 323,520 $ 37.52 Granted 172,724 35.78 Vested (138,211) 38.27 Forfeited (7,092) 37.71 Balance at end of period (unvested) 350,941 $ 36.37 |
Schedule of Changes in Performance Stock Units | The following table summarizes information about the changes in PSUs as of and for the six months ended June 30, 2024: Performance Stock Units Outstanding (1) Weighted Balance at beginning of period (unvested) 176,163 $ 40.86 Granted 97,738 35.60 Performance adjustment (2) (9,778) 42.54 Vested (40,071) 42.71 Forfeited or expired (2,133) 39.30 Balance at end of period (unvested) 221,919 $ 38.08 (1) PSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. (2) The performance adjustment represents the difference in shares ultimately awarded due to 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 June 30, 2024: Grant Year Grant Price Performance Period PSUs Outstanding 2022 $ 44.44 2022 to 2024 48,710 2023 $ 37.17 2023 to 2025 75,893 2024 $ 35.60 2024 to 2026 97,316 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests | An analysis of loans to management, executive officers, the directors and significant shareholders of the Bank and their related interests is presented below: Loans outstanding at January 1, 2024 $ 49,073 New loans and advances 2,332 Change in related party status — Repayments (21,725) Loans outstanding at June 30, 2024 $ 29,680 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | Jun. 30, 2024 branch |
Accounting Policies [Abstract] | |
Number of full-service branches | 77 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic earnings per common share: | ||||
Net income applicable to FB Financial Corporation | $ 39,979 | $ 35,299 | $ 67,929 | $ 71,680 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 |
Earnings available to common shareholders | $ 39,979 | $ 35,299 | $ 67,929 | $ 71,680 |
Weighted average basic shares outstanding (in shares) | 46,762,488 | 46,779,388 | 46,818,685 | 46,729,778 |
Basic earnings per common share (in dollars per share) | $ 0.85 | $ 0.75 | $ 1.45 | $ 1.53 |
Diluted earnings per common share: | ||||
Earnings available to common shareholders | $ 39,979 | $ 35,299 | $ 67,929 | $ 71,680 |
Weighted average basic shares outstanding (in shares) | 46,762,488 | 46,779,388 | 46,818,685 | 46,729,778 |
Weighted average diluted shares contingently issuable (in shares) | 82,655 | 35,466 | 92,781 | 47,825 |
Weighted average diluted shares outstanding (in shares) | 46,845,143 | 46,814,854 | 46,911,466 | 46,777,603 |
Diluted earnings per common share (in dollars per share) | $ 0.85 | $ 0.75 | $ 1.45 | $ 1.53 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Restricted stock units outstanding considered to be antidilutive (in shares) | 36,507 | 315,989 | 2,412 | 250,074 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost of Securities and Fair Values (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | $ 1,664,587,000 | $ 1,658,779,000 |
Gross unrealized gains | 1,434,000 | 840,000 |
Gross unrealized losses | (183,642,000) | (187,646,000) |
Allowance for credit losses on investments | 0 | 0 |
Fair Value | 1,482,379,000 | 1,471,973,000 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | 428,514,000 | 204,663,000 |
Gross unrealized gains | 962,000 | 470,000 |
Gross unrealized losses | (868,000) | (1,177,000) |
Allowance for credit losses on investments | 0 | 0 |
Fair Value | 428,608,000 | 203,956,000 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | 1,021,125,000 | 1,057,389,000 |
Gross unrealized gains | 439,000 | 0 |
Gross unrealized losses | (157,292,000) | (160,418,000) |
Allowance for credit losses on investments | 0 | 0 |
Fair Value | 864,272,000 | 896,971,000 |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | 17,398,000 | 18,186,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,295,000) | (1,225,000) |
Allowance for credit losses on investments | 0 | 0 |
Fair Value | 16,103,000 | 16,961,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | 194,050,000 | 263,312,000 |
Gross unrealized gains | 33,000 | 370,000 |
Gross unrealized losses | (24,106,000) | (21,419,000) |
Allowance for credit losses on investments | 0 | 0 |
Fair Value | 169,977,000 | 242,263,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | 111,729,000 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (3,233,000) | |
Allowance for credit losses on investments | 0 | |
Fair Value | 108,496,000 | |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost, AFS debt securities | 3,500,000 | 3,500,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (81,000) | (174,000) |
Allowance for credit losses on investments | 0 | 0 |
Fair Value | $ 3,419,000 | $ 3,326,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Accrued interest receivable | $ 52,781,000 | $ 52,715,000 |
Allowance for credit losses on investments | $ 0 | $ 0 |
Number of securities in securities portfolio | security | 341 | 439 |
Number of securities in securities portfolio, unrealized loss position | security | 316 | 370 |
Equity securities without readily determinable market value | $ 27,150,000 | $ 25,191,000 |
Federal home loan bank stock | 33,030,000 | 34,190,000 |
Collateral Pledged | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities pledged | 869,623,000 | 929,546,000 |
Debt Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Accrued interest receivable | $ 6,549,000 | $ 7,212,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 223,056 | $ 40,403 |
Gross Unrealized Loss , Less than 12 months | (2,429) | (169) |
Fair Value, 12 months or more | 913,755 | 1,228,463 |
Gross Unrealized Loss , 12 months or more | (181,213) | (187,477) |
Fair Value, Total | 1,136,811 | 1,268,866 |
Gross Unrealized Loss , Total | (183,642) | (187,646) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 191,125 | 25,923 |
Gross Unrealized Loss , Less than 12 months | (232) | (21) |
Fair Value, 12 months or more | 7,218 | 14,040 |
Gross Unrealized Loss , 12 months or more | (636) | (1,156) |
Fair Value, Total | 198,343 | 39,963 |
Gross Unrealized Loss , Total | (868) | (1,177) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Gross Unrealized Loss , Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 754,282 | 896,971 |
Gross Unrealized Loss , 12 months or more | (157,292) | (160,418) |
Fair Value, Total | 754,282 | 896,971 |
Gross Unrealized Loss , Total | (157,292) | (160,418) |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Gross Unrealized Loss , Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 16,103 | 16,961 |
Gross Unrealized Loss , 12 months or more | (1,295) | (1,225) |
Fair Value, Total | 16,103 | 16,961 |
Gross Unrealized Loss , Total | (1,295) | (1,225) |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 31,931 | 14,480 |
Gross Unrealized Loss , Less than 12 months | (2,197) | (148) |
Fair Value, 12 months or more | 132,733 | 188,669 |
Gross Unrealized Loss , 12 months or more | (21,909) | (21,271) |
Fair Value, Total | 164,664 | 203,149 |
Gross Unrealized Loss , Total | (24,106) | (21,419) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | |
Gross Unrealized Loss , Less than 12 months | 0 | |
Fair Value, 12 months or more | 108,496 | |
Gross Unrealized Loss , 12 months or more | (3,233) | |
Fair Value, Total | 108,496 | |
Gross Unrealized Loss , Total | (3,233) | |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 0 |
Gross Unrealized Loss , Less than 12 months | 0 | 0 |
Fair Value, 12 months or more | 3,419 | 3,326 |
Gross Unrealized Loss , 12 months or more | (81) | (174) |
Fair Value, Total | 3,419 | 3,326 |
Gross Unrealized Loss , Total | $ (81) | $ (174) |
Investment Securities - Sched_3
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized cost | ||
Due in one year or less | $ 3,188 | $ 64,776 |
Due in one to five years | 10,586 | 75,996 |
Due in five to ten years | 157,552 | 51,162 |
Due in over ten years | 454,738 | 391,270 |
Amortized cost, sub-total | 626,064 | 583,204 |
Amortized cost, AFS debt securities | 1,664,587 | 1,658,779 |
Fair Value | ||
Due in one year or less | 3,174 | 64,279 |
Due in one to five years | 9,832 | 71,801 |
Due in five to ten years | 156,768 | 49,630 |
Due in over ten years | 432,230 | 372,331 |
Fair value, sub-total | 602,004 | 558,041 |
Total AFS debt securities | 1,482,379 | 1,471,973 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 1,021,125 | 1,057,389 |
Amortized cost, AFS debt securities | 1,021,125 | 1,057,389 |
Fair Value | ||
Mortgage-backed securities | 864,272 | 896,971 |
Total AFS debt securities | 864,272 | 896,971 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 17,398 | 18,186 |
Amortized cost, AFS debt securities | 17,398 | 18,186 |
Fair Value | ||
Mortgage-backed securities | 16,103 | 16,961 |
Total AFS debt securities | $ 16,103 | $ 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 0 | $ 0 | $ 207,882 | $ 0 |
Proceeds from maturities, prepayments and calls | 67,609 | 31,588 | 134,236 | 58,415 |
Gross realized gains | 0 | 0 | 90 | 0 |
Gross realized losses | $ 0 | $ 0 | $ 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 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | $ 9,309,553 | $ 9,408,783 | ||||
Less: Allowance for credit losses on loans HFI | (155,055) | $ (151,667) | (150,326) | $ (140,664) | $ (138,809) | $ (134,192) |
Net loans held for investment | 9,154,498 | 9,258,457 | ||||
Commercial and industrial | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,614,307 | 1,720,733 | ||||
Less: Allowance for credit losses on loans HFI | (22,530) | (17,272) | (19,599) | (11,311) | (11,117) | (11,106) |
Construction | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,200,123 | 1,397,313 | ||||
Less: Allowance for credit losses on loans HFI | (34,170) | (37,308) | (35,372) | (39,920) | (41,025) | (39,808) |
Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,584,029 | 1,568,552 | ||||
Less: Allowance for credit losses on loans HFI | (25,631) | (26,128) | (26,505) | (27,407) | (27,213) | (26,141) |
Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 559,359 | 530,912 | ||||
Less: Allowance for credit losses on loans HFI | (10,097) | (9,918) | (9,468) | (9,185) | (9,034) | (7,494) |
Residential real estate: | Multi-family mortgage | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 597,039 | 603,804 | ||||
Less: Allowance for credit losses on loans HFI | (8,810) | (8,973) | (8,842) | (6,828) | (6,619) | (6,490) |
Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,274,705 | 1,232,071 | ||||
Less: Allowance for credit losses on loans HFI | (11,312) | (10,749) | (10,653) | (8,467) | (7,952) | (7,783) |
Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 2,035,102 | 1,943,525 | ||||
Less: Allowance for credit losses on loans HFI | (24,543) | (23,949) | (22,965) | (22,877) | (21,868) | (21,916) |
Consumer and other | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 444,889 | 411,873 | ||||
Less: Allowance for credit losses on loans HFI | $ (17,962) | $ (17,370) | $ (16,922) | $ (14,669) | $ (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 | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) loan | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||||
Accrued interest receivable on loans | $ 44,351 | $ 44,351 | $ 43,776 | ||
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | 207 | $ 163 | 408 | $ 344 | |
Residential Mortgage Loans | |||||
Financing Receivable, Past Due [Line Items] | |||||
Number modified of mortgage loans | loan | 2 | 2 | |||
Term extensions for borrowers | $ 141 | $ 141 | |||
Commercial and Industrial Loan | Federal Reserve Bank | |||||
Financing Receivable, Past Due [Line Items] | |||||
Deposit liabilities, collateral issued, financial instruments | 2,743,982 | 2,743,982 | 3,107,495 | ||
FHLB Cincinnati | Residential Mortgage Loans | |||||
Financing Receivable, Past Due [Line Items] | |||||
Collateral securing line of credit | 962,358 | 962,358 | 1,030,016 | ||
FHLB Cincinnati | Commercial Loan | |||||
Financing Receivable, Past Due [Line Items] | |||||
Collateral securing line of credit | $ 1,533,000 | $ 1,533,000 | $ 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 9,309,553 | $ 9,408,783 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 54,689 | 226,191 |
2023-2022 | 204,516 | 278,121 |
2022-2021 | 191,102 | 157,650 |
2021-2020 | 72,552 | 42,924 |
2020-2019 | 37,318 | 70,707 |
Prior | 130,023 | 79,652 |
Revolving Loans Amortized Cost Basis | 924,107 | 865,488 |
Total | 1,614,307 | 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 | 24 | 22 |
Current and prior-period gross charge-offs, 2020-2019 | 16 | 0 |
Current and prior-period gross charge-offs, prior | 7 | 87 |
Revolving Loans Amortized Cost Basis | 22 | 131 |
Total | 69 | 462 |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 54,634 | 225,734 |
2023-2022 | 201,189 | 255,921 |
2022-2021 | 169,826 | 151,492 |
2021-2020 | 67,439 | 39,897 |
2020-2019 | 34,393 | 70,302 |
Prior | 123,665 | 73,415 |
Revolving Loans Amortized Cost Basis | 901,459 | 839,918 |
Total | 1,552,605 | 1,656,679 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 55 | 0 |
2023-2022 | 3,279 | 17,947 |
2022-2021 | 15,314 | 3,083 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 151 |
Prior | 235 | 108 |
Revolving Loans Amortized Cost Basis | 7,730 | 7,549 |
Total | 26,613 | 28,838 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 457 |
2023-2022 | 48 | 4,253 |
2022-2021 | 5,962 | 3,075 |
2021-2020 | 5,113 | 3,027 |
2020-2019 | 2,925 | 254 |
Prior | 6,123 | 6,129 |
Revolving Loans Amortized Cost Basis | 14,918 | 18,021 |
Total | 35,089 | 35,216 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 90,338 | 179,930 |
2023-2022 | 184,602 | 684,395 |
2022-2021 | 482,622 | 152,739 |
2021-2020 | 116,832 | 54,519 |
2020-2019 | 34,309 | 39,140 |
Prior | 76,023 | 50,644 |
Revolving Loans Amortized Cost Basis | 215,397 | 235,946 |
Total | 1,200,123 | 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 | 90,338 | 179,929 |
2023-2022 | 184,198 | 677,387 |
2022-2021 | 464,801 | 148,312 |
2021-2020 | 115,507 | 46,697 |
2020-2019 | 25,809 | 39,140 |
Prior | 75,400 | 49,954 |
Revolving Loans Amortized Cost Basis | 189,161 | 208,491 |
Total | 1,145,214 | 1,349,910 |
Construction | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 1 |
2023-2022 | 404 | 4,659 |
2022-2021 | 12,534 | 2,943 |
2021-2020 | 645 | 1,202 |
2020-2019 | 11 | 0 |
Prior | 623 | 690 |
Revolving Loans Amortized Cost Basis | 0 | 12,000 |
Total | 14,217 | 21,495 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 0 |
2023-2022 | 0 | 2,349 |
2022-2021 | 5,287 | 1,484 |
2021-2020 | 680 | 6,620 |
2020-2019 | 8,489 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 26,236 | 15,455 |
Total | 40,692 | 25,908 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 5,217 | 29,982 |
2023-2022 | 6,085 | 151,495 |
2022-2021 | 206,098 | 223,889 |
2021-2020 | 235,467 | 92,745 |
2020-2019 | 52,784 | 29,933 |
Prior | 71,954 | 44,551 |
Revolving Loans Amortized Cost Basis | 19,434 | 31,209 |
Total | 597,039 | 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 | 5,217 | 29,982 |
2023-2022 | 6,085 | 151,495 |
2022-2021 | 206,098 | 223,889 |
2021-2020 | 235,467 | 92,745 |
2020-2019 | 52,784 | 29,933 |
Prior | 70,920 | 43,479 |
Revolving Loans Amortized Cost Basis | 19,434 | 31,209 |
Total | 596,005 | 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 | 1,034 | 1,072 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,034 | 1,072 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 90,475 | 198,613 |
2023-2022 | 178,901 | 503,193 |
2022-2021 | 495,770 | 403,364 |
2021-2020 | 387,613 | 149,330 |
2020-2019 | 142,722 | 82,595 |
Prior | 288,548 | 231,457 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,584,029 | 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 | 150 | 0 |
Current and prior-period gross charge-offs, 2021-2020 | 130 | 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 | 13 | 0 |
Total | 293 | 46 |
Residential real estate: | 1-to-4 family mortgage | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 90,475 | 198,537 |
2023-2022 | 178,755 | 500,628 |
2022-2021 | 491,769 | 399,338 |
2021-2020 | 383,927 | 145,484 |
2020-2019 | 139,696 | 81,905 |
Prior | 281,077 | 226,587 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,565,699 | 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 | 146 | 2,565 |
2022-2021 | 4,001 | 4,026 |
2021-2020 | 3,686 | 3,846 |
2020-2019 | 3,026 | 690 |
Prior | 7,471 | 4,870 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 18,330 | 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 | 559,359 | 530,912 |
Total | 559,359 | 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 | 557,386 | 528,439 |
Total | 557,386 | 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 | 1,973 | 2,473 |
Total | 1,973 | 2,473 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 85,878 | 118,030 |
2023-2022 | 113,724 | 268,798 |
2022-2021 | 254,450 | 233,084 |
2021-2020 | 227,178 | 115,397 |
2020-2019 | 110,831 | 152,060 |
Prior | 418,639 | 289,659 |
Revolving Loans Amortized Cost Basis | 64,005 | 55,043 |
Total | 1,274,705 | 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 | 85,878 | 118,030 |
2023-2022 | 113,724 | 261,196 |
2022-2021 | 246,192 | 231,241 |
2021-2020 | 224,546 | 115,397 |
2020-2019 | 110,767 | 151,146 |
Prior | 410,746 | 281,253 |
Revolving Loans Amortized Cost Basis | 62,949 | 53,970 |
Total | 1,254,802 | 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 | 1,396 | 1,827 |
2021-2020 | 2,616 | 0 |
2020-2019 | 0 | 154 |
Prior | 2,532 | 2,617 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 6,544 | 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 | 6,862 | 16 |
2021-2020 | 16 | 0 |
2020-2019 | 64 | 760 |
Prior | 5,361 | 5,789 |
Revolving Loans Amortized Cost Basis | 1,056 | 1,073 |
Total | 13,359 | 13,943 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 46,629 | 47,026 |
2023-2022 | 43,016 | 474,560 |
2022-2021 | 551,710 | 483,854 |
2021-2020 | 472,790 | 117,429 |
2020-2019 | 120,570 | 178,829 |
Prior | 758,626 | 598,250 |
Revolving Loans Amortized Cost Basis | 41,761 | 43,577 |
Total | 2,035,102 | 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 | 46,629 | 47,026 |
2023-2022 | 43,016 | 474,560 |
2022-2021 | 546,369 | 478,878 |
2021-2020 | 467,839 | 117,429 |
2020-2019 | 120,570 | 178,448 |
Prior | 720,971 | 580,168 |
Revolving Loans Amortized Cost Basis | 41,761 | 43,577 |
Total | 1,987,155 | 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 | 5,341 | 3,975 |
2021-2020 | 3,955 | 0 |
2020-2019 | 0 | 0 |
Prior | 19,486 | 10,435 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 28,782 | 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 | 996 | 0 |
2020-2019 | 0 | 381 |
Prior | 18,169 | 7,647 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 19,165 | 9,029 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 61,846 | 104,927 |
2023-2022 | 104,294 | 92,582 |
2022-2021 | 85,009 | 47,749 |
2021-2020 | 43,026 | 36,747 |
2020-2019 | 33,935 | 25,304 |
Prior | 115,413 | 97,674 |
Revolving Loans Amortized Cost Basis | 1,366 | 6,890 |
Total | 444,889 | 411,873 |
Current and prior-period gross charge-offs, 2024-2023 | 515 | 1,463 |
Current and prior-period gross charge-offs, -2023-2022 | 368 | 564 |
Current and prior-period gross charge-offs, 2022-2021 | 123 | 139 |
Current and prior-period gross charge-offs, 2021-2020 | 164 | 201 |
Current and prior-period gross charge-offs, 2020-2019 | 46 | 110 |
Current and prior-period gross charge-offs, prior | 150 | 372 |
Revolving Loans Amortized Cost Basis | 0 | 2 |
Total | 1,366 | 2,851 |
Consumer and other | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 61,846 | 104,399 |
2023-2022 | 103,413 | 91,557 |
2022-2021 | 83,702 | 45,187 |
2021-2020 | 40,625 | 34,928 |
2020-2019 | 31,828 | 24,040 |
Prior | 110,286 | 93,833 |
Revolving Loans Amortized Cost Basis | 1,366 | 6,890 |
Total | 433,066 | 400,834 |
Consumer and other | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 528 |
2023-2022 | 881 | 1,025 |
2022-2021 | 1,307 | 2,562 |
2021-2020 | 2,401 | 1,819 |
2020-2019 | 2,107 | 1,264 |
Prior | 5,127 | 3,841 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 11,823 | 11,039 |
Total consumer type loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 152,321 | 303,540 |
2023-2022 | 283,195 | 595,775 |
2022-2021 | 580,779 | 451,113 |
2021-2020 | 430,639 | 186,077 |
2020-2019 | 176,657 | 107,899 |
Prior | 403,961 | 329,131 |
Revolving Loans Amortized Cost Basis | 560,725 | 537,802 |
Total | 2,588,277 | 2,511,337 |
Current and prior-period gross charge-offs, 2024-2023 | 515 | 1,463 |
Current and prior-period gross charge-offs, -2023-2022 | 368 | 582 |
Current and prior-period gross charge-offs, 2022-2021 | 273 | 139 |
Current and prior-period gross charge-offs, 2021-2020 | 294 | 205 |
Current and prior-period gross charge-offs, 2020-2019 | 46 | 110 |
Current and prior-period gross charge-offs, prior | 150 | 396 |
Revolving Loans Amortized Cost Basis | 33 | 2 |
Total | 1,679 | 2,897 |
Total consumer type loans | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 152,321 | 302,936 |
2023-2022 | 282,168 | 592,185 |
2022-2021 | 575,471 | 444,525 |
2021-2020 | 424,552 | 180,412 |
2020-2019 | 171,524 | 105,945 |
Prior | 391,363 | 320,420 |
Revolving Loans Amortized Cost Basis | 558,752 | 535,329 |
Total | 2,556,151 | 2,481,752 |
Total consumer type loans | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 604 |
2023-2022 | 1,027 | 3,590 |
2022-2021 | 5,308 | 6,588 |
2021-2020 | 6,087 | 5,665 |
2020-2019 | 5,133 | 1,954 |
Prior | 12,598 | 8,711 |
Revolving Loans Amortized Cost Basis | 1,973 | 2,473 |
Total | 32,126 | 29,585 |
Total Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 282,751 | 601,159 |
2023-2022 | 551,943 | 1,857,369 |
2022-2021 | 1,685,982 | 1,251,216 |
2021-2020 | 1,124,819 | 423,014 |
2020-2019 | 355,812 | 470,669 |
Prior | 1,455,265 | 1,062,756 |
Revolving Loans Amortized Cost Basis | 1,264,704 | 1,231,263 |
Total | 6,721,276 | 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 | 24 | 22 |
Current and prior-period gross charge-offs, 2020-2019 | 16 | 0 |
Current and prior-period gross charge-offs, prior | 7 | 87 |
Revolving Loans Amortized Cost Basis | 114 | 131 |
Total | 161 | 606 |
Total Commercial Loans | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 282,696 | 600,701 |
2023-2022 | 548,212 | 1,820,559 |
2022-2021 | 1,633,286 | 1,233,812 |
2021-2020 | 1,110,798 | 412,165 |
2020-2019 | 344,323 | 468,969 |
Prior | 1,401,702 | 1,028,269 |
Revolving Loans Amortized Cost Basis | 1,214,764 | 1,177,165 |
Total | 6,535,781 | 6,741,640 |
Total Commercial Loans | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 55 | 1 |
2023-2022 | 3,683 | 23,903 |
2022-2021 | 34,585 | 11,828 |
2021-2020 | 7,216 | 1,202 |
2020-2019 | 11 | 305 |
Prior | 22,876 | 13,850 |
Revolving Loans Amortized Cost Basis | 7,730 | 19,549 |
Total | 76,156 | 70,638 |
Total Commercial Loans | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2024-2023 | 0 | 457 |
2023-2022 | 48 | 12,907 |
2022-2021 | 18,111 | 5,576 |
2021-2020 | 6,805 | 9,647 |
2020-2019 | 11,478 | 1,395 |
Prior | 30,687 | 20,637 |
Revolving Loans Amortized Cost Basis | 42,210 | 34,549 |
Total | $ 109,339 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 9,309,553 | $ 9,408,783 |
90 days or more and accruing interest | 17,058 | 12,693 |
Nonaccrual loans | 56,165 | 48,230 |
30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 56,180 | 47,043 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 9,180,150 | 9,300,817 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,614,307 | 1,720,733 |
90 days or more and accruing interest | 65 | 0 |
Nonaccrual loans | 22,797 | 21,730 |
Commercial and industrial | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,334 | 732 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,590,111 | 1,698,271 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,200,123 | 1,397,313 |
90 days or more and accruing interest | 1,306 | 165 |
Nonaccrual loans | 4,590 | 2,872 |
Construction | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 11,767 | 6,579 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,182,460 | 1,387,697 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,584,029 | 1,568,552 |
90 days or more and accruing interest | 11,643 | 9,355 |
Nonaccrual loans | 6,687 | 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 | 23,244 | 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 | 1,542,455 | 1,530,711 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 559,359 | 530,912 |
90 days or more and accruing interest | 1,738 | 1,337 |
Nonaccrual loans | 235 | 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 | 2,282 | 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 | 555,104 | 525,975 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 597,039 | 603,804 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 29 | 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 | 597,010 | 603,772 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,274,705 | 1,232,071 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 9,163 | 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 | 274 | 480 |
Commercial real estate: | Owner-occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,265,268 | 1,228,403 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 2,035,102 | 1,943,525 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 3,147 | 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 | 3,512 | 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 | 2,028,443 | 1,936,115 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 444,889 | 411,873 |
90 days or more and accruing interest | 2,306 | 1,836 |
Nonaccrual loans | 9,517 | 9,203 |
Consumer and other | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 13,767 | 10,961 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 419,299 | $ 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 | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | $ 24,785 | $ 24,785 | $ 14,310 | ||
Nonaccrual with related allowance | 31,380 | 31,380 | 33,920 | ||
Related allowance | 10,121 | 10,121 | 5,696 | ||
Year to date Interest Income | 611 | $ 408 | 996 | $ 851 | |
Commercial and industrial | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 9,109 | 9,109 | 3,678 | ||
Nonaccrual with related allowance | 13,688 | 13,688 | 18,052 | ||
Related allowance | 8,941 | 8,941 | 5,011 | ||
Year to date Interest Income | 345 | 28 | 569 | 48 | |
Construction | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 2,753 | 2,753 | 2,267 | ||
Nonaccrual with related allowance | 1,837 | 1,837 | 605 | ||
Related allowance | 270 | 270 | 59 | ||
Year to date Interest Income | 79 | 46 | 140 | 52 | |
Residential real estate: | 1-to-4 family mortgage | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 1,972 | 1,972 | 1,444 | ||
Nonaccrual with related allowance | 4,715 | 4,715 | 5,274 | ||
Related allowance | 126 | 126 | 103 | ||
Year to date Interest Income | 34 | 70 | 34 | 149 | |
Residential real estate: | Residential line of credit | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 148 | 148 | 685 | ||
Nonaccrual with related allowance | 87 | 87 | 451 | ||
Related allowance | 2 | 2 | 8 | ||
Year to date Interest Income | 23 | 27 | 39 | 51 | |
Residential real estate: | Multi-family mortgage | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 0 | 0 | 0 | ||
Nonaccrual with related allowance | 29 | 29 | 32 | ||
Related allowance | 1 | 1 | 1 | ||
Year to date Interest Income | 1 | 0 | 1 | 1 | |
Commercial real estate: | Owner-occupied | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 7,684 | 7,684 | 2,920 | ||
Nonaccrual with related allowance | 1,479 | 1,479 | 268 | ||
Related allowance | 287 | 287 | 15 | ||
Year to date Interest Income | 75 | 39 | 124 | 97 | |
Commercial real estate: | Non-owner occupied | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 3,119 | 3,119 | 3,316 | ||
Nonaccrual with related allowance | 28 | 28 | 35 | ||
Related allowance | 1 | 1 | 1 | ||
Year to date Interest Income | 54 | 55 | 89 | 137 | |
Consumer and other | |||||
Financing Receivable, Past Due [Line Items] | |||||
Nonaccrual with no related allowance | 0 | 0 | 0 | ||
Nonaccrual with related allowance | 9,517 | 9,517 | 9,203 | ||
Related allowance | 493 | 493 | $ 498 | ||
Year to date Interest Income | $ 0 | $ 143 | $ 0 | $ 316 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans HFI - Modifications of Outstanding Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 116 | $ 24,725 |
% of total class of financing receivables | 0% | 0.30% |
Term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 18 | $ 10,391 |
Payment deferral and term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 14,236 |
Interest rate reduction and term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 98 | 98 |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 116 | $ 138 |
% of total class of financing receivables | 0% | 0% |
Consumer and other | Term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 18 | $ 40 |
Consumer and other | Payment deferral and term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | 0 |
Consumer and other | Interest rate reduction and term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 98 | 98 |
Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 14,236 | |
% of total class of financing receivables | 1.20% | |
Construction | Term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 0 | |
Construction | Payment deferral and term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 14,236 | |
Construction | Interest rate reduction and 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 | Term extension | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 10,351 | |
Commercial real estate | Payment deferral and term extension | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | 0 | |
Commercial real estate | Interest rate reduction and term extension | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total | $ 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans HFI - Financial Effects of Loan Modifications (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted average interest rate reduction | 1.49% | 1.49% |
Consumer and other | Term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted average of loans (in years) | 21 months | 25 months |
Consumer and other | Payment deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted average of loans (in years) | 0 months | 0 months |
Construction | Term extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted average of loans (in years) | 6 months | |
Construction | Payment deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted average of loans (in years) | 3 months | |
Commercial real estate | Term extension | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted average of loans (in years) | 6 months | |
Commercial real estate | Payment deferral | Non-owner occupied | ||
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 | Jun. 30, 2024 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | $ 24,749 |
Nonaccrual loans | 24 |
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 | 24,725 |
Construction | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 14,236 |
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 | 14,236 |
Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Past Due [Line Items] | |
Loans held for investment, modified | 24 |
Nonaccrual loans | 24 |
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 | 138 |
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 | $ 138 |
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 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | $ 155,055 | $ 151,667 | $ 150,326 | $ 140,664 | $ 138,809 | $ 134,192 |
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 22,530 | 17,272 | 19,599 | 11,311 | 11,117 | 11,106 |
Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 34,170 | 37,308 | 35,372 | 39,920 | 41,025 | 39,808 |
Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 25,631 | 26,128 | 26,505 | 27,407 | 27,213 | 26,141 |
Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 10,097 | 9,918 | 9,468 | 9,185 | 9,034 | 7,494 |
Residential real estate: | Multi-family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 8,810 | 8,973 | 8,842 | 6,828 | 6,619 | 6,490 |
Commercial real estate: | Owner-occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 11,312 | 10,749 | 10,653 | 8,467 | 7,952 | 7,783 |
Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 24,543 | 23,949 | 22,965 | 22,877 | 21,868 | 21,916 |
Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 17,962 | $ 17,370 | 16,922 | $ 14,669 | $ 13,981 | $ 13,454 |
Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 47,315 | 20,189 | ||||
Real Estate | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 82 | 0 | ||||
Real Estate | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 23,041 | 8,224 | ||||
Real Estate | Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 3,892 | 5,317 | ||||
Real Estate | Residential real estate: | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 733 | 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 | 1,426 | 1,975 | ||||
Real Estate | Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 18,141 | 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 | 9,158 | 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 | 7,142 | 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 | 21,687 | 20,599 | ||||
Business Assets | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 21,687 | 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 | 78,160 | 42,311 | ||||
Individually assessed allowance for credit loss | 9,768 | 5,136 | ||||
Total | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 22,132 | 20,962 | ||||
Individually assessed allowance for credit loss | 8,870 | 4,946 | ||||
Total | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 24,694 | 8,224 | ||||
Individually assessed allowance for credit loss | 567 | 30 | ||||
Total | Residential real estate: | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 3,892 | 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 | 733 | 1,245 | ||||
Individually assessed allowance for credit loss | 15 | 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 | 8,568 | 3,135 | ||||
Individually assessed allowance for credit loss | 258 | 0 | ||||
Total | Commercial real estate: | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 18,141 | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 151,667 | $ 138,809 | $ 150,326 | $ 134,192 |
Provision for (reversal of) credit losses on loans HFI | 3,940 | 2,575 | 5,792 | 7,572 |
Recoveries of loans previously charged-off | 361 | 172 | 777 | 559 |
Loans charged off | (913) | (892) | (1,840) | (1,659) |
Balance at end of period | 155,055 | 140,664 | 155,055 | 140,664 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 17,272 | 11,117 | 19,599 | 11,106 |
Provision for (reversal of) credit losses on loans HFI | 5,264 | 192 | 2,966 | 182 |
Recoveries of loans previously charged-off | 20 | 13 | 34 | 80 |
Loans charged off | (26) | (11) | (69) | (57) |
Balance at end of period | 22,530 | 11,311 | 22,530 | 11,311 |
Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 37,308 | 41,025 | 35,372 | 39,808 |
Provision for (reversal of) credit losses on loans HFI | (3,138) | (1,115) | (1,110) | 102 |
Recoveries of loans previously charged-off | 0 | 10 | 0 | 10 |
Loans charged off | 0 | 0 | (92) | 0 |
Balance at end of period | 34,170 | 39,920 | 34,170 | 39,920 |
Residential real estate: | 1-to-4 family mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 26,128 | 27,213 | 26,505 | 26,141 |
Provision for (reversal of) credit losses on loans HFI | (214) | 185 | (647) | 1,258 |
Recoveries of loans previously charged-off | 10 | 25 | 66 | 40 |
Loans charged off | (293) | (16) | (293) | (32) |
Balance at end of period | 25,631 | 27,407 | 25,631 | 27,407 |
Residential real estate: | Residential line of credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 9,918 | 9,034 | 9,468 | 7,494 |
Provision for (reversal of) credit losses on loans HFI | 179 | 151 | 649 | 1,691 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | (20) | 0 |
Balance at end of period | 10,097 | 9,185 | 10,097 | 9,185 |
Residential real estate: | Multi-family mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 8,973 | 6,619 | 8,842 | 6,490 |
Provision for (reversal of) credit losses on loans HFI | (163) | 209 | (32) | 338 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Balance at end of period | 8,810 | 6,828 | 8,810 | 6,828 |
Commercial real estate: | Owner-occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 10,749 | 7,952 | 10,653 | 7,783 |
Provision for (reversal of) credit losses on loans HFI | 375 | 643 | 431 | 746 |
Recoveries of loans previously charged-off | 188 | 16 | 228 | 82 |
Loans charged off | 0 | (144) | 0 | (144) |
Balance at end of period | 11,312 | 8,467 | 11,312 | 8,467 |
Commercial real estate: | Non-owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 23,949 | 21,868 | 22,965 | 21,916 |
Provision for (reversal of) credit losses on loans HFI | 594 | 1,009 | 1,578 | 961 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Balance at end of period | 24,543 | 22,877 | 24,543 | 22,877 |
Consumer and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 17,370 | 13,981 | 16,922 | 13,454 |
Provision for (reversal of) credit losses on loans HFI | 1,043 | 1,301 | 1,957 | 2,294 |
Recoveries of loans previously charged-off | 143 | 108 | 449 | 347 |
Loans charged off | (594) | (721) | (1,366) | (1,426) |
Balance at end of period | $ 17,962 | $ 14,669 | $ 17,962 | $ 14,669 |
Other Real Estate Owned - Sched
Other Real Estate Owned - Schedule of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 3,613 | $ 4,085 | $ 3,192 | $ 5,794 |
Transfers from loans | 1,647 | 358 | 2,400 | 593 |
Proceeds from sale of other real estate owned | (1,045) | (3,124) | (1,434) | (5,155) |
(Loss) gain on sale of other real estate owned | (42) | 655 | 15 | 742 |
Balance at end of period | $ 4,173 | $ 1,974 | $ 4,173 | $ 1,974 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 2,904 | $ 2,414 |
Total foreclosure proceedings in process | $ 1,919 | $ 3,377 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 lease | |
Lessee, Lease, Description [Line Items] | |
Lessee, number of operating leases | 45 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating leases | $ 49,123 | $ 54,295 |
Finance leases | 1,201 | 1,256 |
Total right-of-use assets | 50,324 | 55,551 |
Operating leases | 61,932 | 67,643 |
Finance leases | 1,278 | 1,326 |
Total lease liabilities | $ 63,210 | $ 68,969 |
Weighted average remaining lease term (in years) - operating | 11 years 2 months 12 days | 11 years 7 months 6 days |
Weighted average remaining lease term (in years) - finance | 10 years 10 months 24 days | 11 years 4 months 24 days |
Weighted average discount rate - operating | 3.34% | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Amortization of right-of-use asset | $ 1,759 | $ 2,307 | $ 3,686 | $ 4,122 |
Short-term lease cost | 89 | 143 | 186 | 264 |
Variable lease cost | 367 | 326 | 703 | 624 |
Gain on lease modifications and terminations | 0 | (1) | 0 | (73) |
Interest on lease liabilities | 5 | 6 | 11 | 12 |
Amortization of right-of-use asset | 27 | 27 | 55 | 55 |
Sublease income | (139) | (215) | (311) | (496) |
Total lease cost | $ 2,108 | $ 2,593 | $ 4,330 | $ 4,508 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
June 30, 2025 | $ 4,175 | |
June 30, 2026 | 8,195 | |
June 30, 2027 | 8,054 | |
June 30, 2028 | 7,602 | |
June 30, 2029 | 6,649 | |
Thereafter | 41,875 | |
Total undiscounted future minimum lease payments | 76,550 | |
Less: imputed interest | (14,618) | |
Operating leases | 61,932 | $ 67,643 |
Finance Lease | ||
June 30, 2025 | 60 | |
June 30, 2026 | 121 | |
June 30, 2027 | 123 | |
June 30, 2028 | 125 | |
June 30, 2029 | 127 | |
Thereafter | 850 | |
Total undiscounted future minimum lease payments | 1,406 | |
Less: imputed interest | (128) | |
Finance leases | $ 1,278 | $ 1,326 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Carrying value at beginning of period | $ 165,674 | $ 164,879 | $ 164,249 | $ 168,365 |
Capitalization | 1,518 | 2,273 | 2,649 | 4,061 |
Change in fair value: | ||||
Due to payoffs/paydowns | (3,825) | (3,269) | (6,549) | (5,789) |
Due to change in valuation inputs or assumptions | 1,138 | 2,550 | 4,156 | (204) |
Carrying value at end of period | $ 164,505 | $ 166,433 | $ 164,505 | $ 166,433 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | ||||
Servicing income | $ 7,316 | $ 7,586 | $ 14,663 | $ 15,354 |
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 | 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 | $ (2,687) | $ (719) | $ (2,393) | $ (5,993) |
Change in fair value of derivative hedging instruments | (1,649) | (3,503) | (4,984) | (1,636) |
Servicing income | 2,980 | 3,364 | 7,286 | 7,725 |
Servicing expenses | 1,933 | 2,331 | 3,880 | 4,214 |
Net servicing income (loss) | $ 1,047 | $ 1,033 | $ 3,406 | $ 3,511 |
Mortgage Servicing Rights - S_3
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance of mortgage loans sold and serviced for others | $ 10,523,778 | $ 10,762,906 |
Weighted-average prepayment speed (CPR) | 6.03% | 6.19% |
Estimated impact on fair value of a 10% increase | $ (4,328) | $ (4,616) |
Estimated impact on fair value of a 20% increase | $ (8,381) | $ (8,924) |
Discount rate | 10.30% | 9.62% |
Estimated impact on fair value of a 100 bp increase | $ (7,569) | $ (7,637) |
Estimated impact on fair value of a 200 bp increase | $ (14,500) | $ (14,624) |
Weighted-average coupon interest rate | 3.54% | 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 107,752 | $ 63,591 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Federal taxes calculated at statutory rate | $ 10,691 | $ 9,480 | $ 17,883 | $ 19,156 |
Increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 77 | 647 | 210 | 898 |
Expense from equity based compensation | 21 | 69 | 76 | 184 |
Municipal interest income, net of interest disallowance | (328) | (451) | (701) | (907) |
Bank-owned life insurance | (521) | (79) | (611) | (206) |
Section 162(m) limitation | 44 | 103 | 204 | 230 |
Other | 935 | 66 | 158 | 177 |
Income tax expense, as reported | $ 10,919 | $ 9,835 | $ 17,219 | $ 19,532 |
Federal taxes calculated at statutory rate, percent | 21% | 21% | 21% | 21% |
Percentage increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 0.10% | 1.40% | 0.20% | 1% |
Expense from equity based compensation | 0% | 0.20% | 0.10% | 0.20% |
Municipal interest income, net of interest disallowance | (0.60%) | (1.00%) | (0.80%) | (1.00%) |
Bank-owned life insurance | (1.00%) | (0.20%) | (0.70%) | (0.20%) |
Section 162(m) limitation | 0.10% | 0.20% | 0.20% | 0.20% |
Other | 1.80% | 0.20% | 0.20% | 0.20% |
Total | 21.40% | 21.80% | 20.20% | 21.40% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 2,810,006 | $ 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 | 2,722,677 | 2,906,016 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 87,329 | $ 77,055 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Floating interest rate loan commitments | $ 2,474,058 | $ 2,459,669 | |||
Total principal amount of loans repurchased or indemnified | $ 1,433 | $ 1,371 | $ 3,511 | $ 4,697 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Allowance of Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 151,667 | $ 138,809 | $ 150,326 | $ 134,192 |
Balance at end of period | 155,055 | 140,664 | 155,055 | 140,664 |
Unfunded Commitments | ||||
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | 7,700 | 18,463 | 8,770 | 22,969 |
Reversal of credit losses on unfunded commitments | (1,716) | (3,653) | (2,786) | (8,159) |
Balance at end of period | $ 5,984 | $ 14,810 | $ 5,984 | $ 14,810 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 930 | $ 1,358 | $ 899 | $ 1,621 |
Provision for (reversal of) loan repurchases or indemnifications | 75 | (200) | 125 | (450) |
Losses on loans repurchased or indemnified | (194) | (29) | (213) | (42) |
Balance at end of period | $ 811 | $ 1,129 | $ 811 | $ 1,129 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||||
Cash collateral pledged on derivatives | $ 13,869,000 | $ 13,869,000 | $ 14,042,000 | ||
Designated as hedging | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Notional Amount | 21,000,000 | 21,000,000 | |||
Designated as hedging | Money market and savings deposits | |||||
Derivative [Line Items] | |||||
Terminated fair value hedge decrease amount | (993,000) | (993,000) | |||
Designated as hedging | Interest expense on deposits | |||||
Derivative [Line Items] | |||||
Terminated fair value hedge increase amount | 1,752,000 | 3,595,000 | |||
Gain (loss) included in income statement | 275,000 | $ 232,000 | 522,000 | $ 429,000 | |
Interest Rate Swap | Interest expense on deposits | Designated as hedging | |||||
Derivative [Line Items] | |||||
Notional Amount | 0 | 0 | 200,000,000 | ||
Estimated fair value | $ (4,588,000) | $ (4,588,000) | (4,497,000) | ||
Interest Rate Swap | Interest expense on borrowings | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives, Fair Value [Line Items] | ||||
Interest expense on deposits and borrowings | $ 102,615 | $ 101,543 | $ 202,105 | $ 205,203 |
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest expense on deposits and borrowings | 0 | (2,663) | (645) | (4,931) |
Interest Rate Swap | Designated as Hedging Instrument | Interest expense on deposits | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest expense on deposits and borrowings | 0 | (1,769) | 0 | (3,277) |
Interest Rate Swap | Designated as Hedging Instrument | Interest expense on borrowings | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest expense on deposits and borrowings | $ 0 | $ (894) | $ (645) | $ (1,654) |
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 | Interest rate swap agreements- subordinated debt | |
Derivative [Line Items] | |
Unamortized subordinated debt issuance costs | $ 612 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - Designated as hedging - Interest Rate Swap - Interest rate swap agreements- subordinated debt - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 9,000 | $ 30,000 |
Asset | $ 80 | |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives, Fair Value [Line Items] | ||||
Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(68), $6, $(130) and $(64) | $ (195) | $ 17 | $ (369) | $ (180) |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | (68) | 6 | (130) | (64) |
Designated as hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of (loss) gain recognized in other comprehensive income (loss), net of tax (benefit) expense of $(68), $6, $(130) and $(64) | (195) | 17 | (369) | (180) |
Not designated as hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (1,761) | (2,979) | (3,789) | (794) |
Not designated as hedging | Interest rate-lock commitments | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (693) | (1,028) | 176 | 179 |
Not designated as hedging | Forward commitments | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 334 | 1,031 | 434 | 736 |
Not designated as hedging | Futures contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (1,402) | (2,521) | (4,399) | (584) |
Not designated as hedging | Option contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | $ 0 | $ (461) | $ 0 | $ (1,125) |
Derivatives - Schedule of Non-D
Derivatives - Schedule of Non-Designated Derivative Financial Instruments (Details) - Not designated as hedging - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 1,091,758 | $ 1,052,082 |
Asset | 36,996 | 34,159 |
Liability | 34,967 | 33,045 |
Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 549,564 | 569,865 |
Asset | 34,935 | 32,179 |
Liability | 34,967 | 32,184 |
Forward commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 201,000 | 159,000 |
Asset | 191 | 0 |
Liability | 0 | 861 |
Interest rate-lock commitments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 108,694 | 69,217 |
Asset | 1,380 | 1,203 |
Liability | 0 | 0 |
Futures contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 232,500 | 254,000 |
Asset | 490 | 777 |
Liability | $ 0 | $ 0 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 34,541 | $ 31,468 |
Gross amounts offset on the consolidated balance sheets | 0 | 0 |
Net amounts presented on the consolidated balance sheets | 34,541 | 31,468 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 561 | 6,502 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 33,980 | 24,966 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 10,066 | 11,330 |
Gross amounts offset on the consolidated balance sheets | 0 | 0 |
Net amounts presented on the consolidated balance sheets | 10,066 | 11,330 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 561 | 6,502 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 9,505 | 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Available-for-sale securities: | $ 1,482,379 | $ 1,471,973 |
Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 864,272 | 896,971 |
Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,103 | 16,961 |
Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 169,977 | 242,263 |
U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,496 | |
Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,419 | 3,326 |
Recurring Basis | ||
Financial assets: | ||
Total securities | 1,482,379 | 1,471,973 |
Loans held for sale, at fair value | 84,521 | 46,618 |
Mortgage servicing rights | 164,505 | 164,249 |
Derivatives | 37,076 | 34,738 |
Financial liabilities: | ||
Derivatives | 34,967 | 38,215 |
Recurring Basis | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 428,608 | 203,956 |
Recurring Basis | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 864,272 | 896,971 |
Recurring Basis | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,103 | 16,961 |
Recurring Basis | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 169,977 | 242,263 |
Recurring Basis | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,496 | |
Recurring Basis | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,419 | 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 | |
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 | 1,482,379 | 1,471,973 |
Loans held for sale, at fair value | 84,521 | 46,618 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 37,076 | 34,738 |
Financial liabilities: | ||
Derivatives | 34,967 | 38,215 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 428,608 | 203,956 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 864,272 | 896,971 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,103 | 16,961 |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 169,977 | 242,263 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,496 | |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,419 | 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 | 164,505 | 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 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Other real estate owned | $ 2,417 | $ 2,400 |
Collateral-dependent net loans held for investment | 12,531 | 13,041 |
Commercial and industrial | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 3,699 | 12,338 |
Construction | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 7,138 | 203 |
Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 499 | 429 |
Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 570 | |
Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 625 | |
Consumer and other | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 71 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral-dependent net loans held for investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Construction | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Consumer and other | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral-dependent net loans held for investment | 0 | 0 |
Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | 0 |
Significant other observable inputs (level 2) | Construction | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | |
Significant other observable inputs (level 2) | Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | |
Significant other observable inputs (level 2) | Consumer and other | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 0 | |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 2,417 | 2,400 |
Collateral-dependent net loans held for investment | 12,531 | 13,041 |
Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 3,699 | 12,338 |
Significant unobservable inputs (level 3) | Construction | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 7,138 | 203 |
Significant unobservable inputs (level 3) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 499 | 429 |
Significant unobservable inputs (level 3) | Residential real estate: | Residential line of credit | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | 570 | |
Significant unobservable inputs (level 3) | Commercial real estate | Owner-occupied | ||
Financial assets: | ||
Collateral-dependent net loans held for investment | $ 625 | |
Significant unobservable inputs (level 3) | Consumer and other | ||
Financial assets: | ||
Collateral-dependent net loans held for 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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Change in fair value: | ||
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Changes in valuation included in other noninterest income | Changes in valuation included in other noninterest income |
Franklin Financial Network, Inc. | Commercial and industrial | Principal balance | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | $ 12,467 | $ 34,357 |
Change in fair value: | ||
Paydowns and payoffs | (235) | (22,125) |
Changes in valuation included in other noninterest income | 0 | 0 |
Carrying value at end of period | 12,232 | 12,232 |
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 | (2,957) | (3,867) |
Change in fair value: | ||
Paydowns and payoffs | 0 | 0 |
Changes in valuation included in other noninterest income | (8) | 902 |
Carrying value at end of period | (2,965) | (2,965) |
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 | 9,510 | 30,490 |
Change in fair value: | ||
Paydowns and payoffs | (235) | (22,125) |
Changes in valuation included in other noninterest income | (8) | 902 |
Carrying value at end of period | $ 9,267 | $ 9,267 |
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 | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent net loans held for investment | $ 12,531 | $ 13,041 |
Other real estate owned | 2,417 | 2,400 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral-dependent net loans held for investment | 12,531 | 13,041 |
Other real estate owned | $ 2,417 | $ 2,400 |
Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.10 | 0.10 |
Other real estate owned, measurement input | 0 | 0 |
Significant unobservable inputs (level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.82 | 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 | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 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 | $ 353 | $ (129) | $ 556 | $ (179) | |
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 | (4) | $ 874 | 1,817 | $ 453 | |
Level 3 | Non-recurring Basis | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Amortized costs of collateral dependent loans | $ 22,301 | $ 22,301 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | $ 106,875 | $ 67,847 |
Other | Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 84,521 | 46,618 |
GNMA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | $ 22,354 | $ 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 | Jun. 30, 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 | $ 84,521 | $ 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 | 82,856 | 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 | $ 1,665 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Net loans held for investment | $ 9,154,498 | $ 9,258,457 |
Interest receivable | 52,781 | 52,715 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 800,902 | 810,932 |
Investment securities | 1,482,379 | 1,471,973 |
Net loans held for investment | 9,154,498 | 9,258,457 |
Loans held for sale, at fair value | 84,521 | 46,618 |
Interest receivable | 52,781 | 52,715 |
Mortgage servicing rights | 164,505 | 164,249 |
Derivatives | 37,076 | 34,738 |
Financial liabilities: | ||
Without stated maturities | 8,973,707 | 8,927,654 |
With stated maturities | 1,494,295 | 1,620,633 |
Securities sold under agreements to repurchase and federal funds purchased | 76,801 | 108,764 |
Bank Term Funding Program | 130,000 | 130,000 |
Subordinated debt, net | 130,511 | 129,645 |
Interest payable | 20,145 | 18,809 |
Derivatives | 34,967 | 38,215 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 800,902 | 810,932 |
Investment securities | 1,482,379 | 1,471,973 |
Net loans held for investment | 8,854,724 | 9,068,518 |
Loans held for sale, at fair value | 84,521 | 46,618 |
Interest receivable | 52,781 | 52,715 |
Mortgage servicing rights | 164,505 | 164,249 |
Derivatives | 37,076 | 34,738 |
Financial liabilities: | ||
Without stated maturities | 8,973,707 | 8,927,654 |
With stated maturities | 1,487,664 | 1,614,400 |
Securities sold under agreements to repurchase and federal funds purchased | 76,801 | 108,764 |
Bank Term Funding Program | 129,543 | 130,000 |
Subordinated debt, net | 124,113 | 122,671 |
Interest payable | 20,145 | 18,809 |
Derivatives | 34,967 | 38,215 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 800,902 | 810,932 |
Investment securities | 0 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Interest receivable | 374 | 388 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Without stated maturities | 8,973,707 | 8,927,654 |
With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 76,801 | 108,764 |
Bank Term Funding Program | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Interest payable | 4,125 | 4,104 |
Derivatives | 0 | 0 |
Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 1,482,379 | 1,471,973 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 84,521 | 46,618 |
Interest receivable | 8,056 | 8,551 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 37,076 | 34,738 |
Financial liabilities: | ||
Without stated maturities | 0 | 0 |
With stated maturities | 1,487,664 | 1,614,400 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Bank Term Funding Program | 129,543 | 130,000 |
Subordinated debt, net | 0 | 0 |
Interest payable | 14,520 | 13,205 |
Derivatives | 34,967 | 38,215 |
Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Net loans held for investment | 8,854,724 | 9,068,518 |
Loans held for sale, at fair value | 0 | 0 |
Interest receivable | 44,351 | 43,776 |
Mortgage servicing rights | 164,505 | 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 | 124,113 | 122,671 |
Interest payable | 1,500 | 1,500 |
Derivatives | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 102,615 | $ 101,543 | $ 202,105 | $ 205,203 | |
Provisions for (reversal of) credit losses | 2,224 | (1,078) | 3,006 | (587) | |
Mortgage banking income | 16,246 | 16,454 | 31,872 | 31,947 | |
Change in fair value of mortgage servicing rights, net of hedging | (4,336) | (4,222) | (7,377) | (7,629) | |
Other noninterest income | 13,698 | 11,581 | 9,075 | 22,844 | |
Depreciation and amortization | 2,861 | 2,452 | 5,702 | 4,680 | |
Amortization of intangibles | 752 | 940 | 1,541 | 1,930 | |
Other noninterest mortgage banking expense | 0 | 0 | |||
Other noninterest expense | 71,480 | 77,900 | 140,270 | 155,122 | |
Income before income taxes | 50,906 | 45,142 | 85,156 | 91,220 | |
Income tax expense | 10,919 | 9,835 | 17,219 | 19,532 | |
Net income attributable to FB Financial Corporation and noncontrolling interest | 39,987 | 35,307 | 67,937 | 71,688 | |
Net income applicable to noncontrolling interest | 8 | 8 | 8 | 8 | |
Net income applicable to FB Financial Corporation | 39,979 | 35,299 | 67,929 | 71,680 | |
Total assets | 12,535,169 | 12,887,395 | 12,535,169 | 12,887,395 | $ 12,604,403 |
Goodwill | 242,561 | 242,561 | 242,561 | 242,561 | $ 242,561 |
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 101,468 | 99,909 | 200,205 | 202,179 | |
Provisions for (reversal of) credit losses | 2,432 | (1,149) | 3,270 | (937) | |
Mortgage banking income | 0 | 0 | 0 | 0 | |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | 0 | 0 | |
Other noninterest income | 13,477 | 11,480 | 8,683 | 22,973 | |
Depreciation and amortization | 2,745 | 2,220 | 5,453 | 4,269 | |
Amortization of intangibles | 752 | 940 | 1,541 | 1,930 | |
Other noninterest mortgage banking expense | 0 | 0 | |||
Other noninterest expense | 58,832 | 63,048 | 115,679 | 126,761 | |
Income before income taxes | 50,184 | 46,330 | 82,945 | 93,129 | |
Total assets | 11,947,550 | 12,307,231 | 11,947,550 | 12,307,231 | |
Goodwill | 242,561 | 242,561 | 242,561 | 242,561 | |
Mortgage | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 1,147 | 1,634 | 1,900 | 3,024 | |
Provisions for (reversal of) credit losses | (208) | 71 | (264) | 350 | |
Mortgage banking income | 16,246 | 16,454 | 31,872 | 31,947 | |
Change in fair value of mortgage servicing rights, net of hedging | (4,336) | (4,222) | (7,377) | (7,629) | |
Other noninterest income | 221 | 101 | 392 | (129) | |
Depreciation and amortization | 116 | 232 | 249 | 411 | |
Amortization of intangibles | 0 | 0 | 0 | 0 | |
Other noninterest mortgage banking expense | 0 | 0 | |||
Other noninterest expense | 12,648 | 14,852 | 24,591 | 28,361 | |
Income before income taxes | 722 | (1,188) | 2,211 | (1,909) | |
Total assets | 587,619 | 580,164 | 587,619 | 580,164 | |
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum Capital Requirements -
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,679,585 | $ 1,635,848 |
Actual, ratio | 0.151 | 0.145 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 1,164,673 | $ 1,182,028 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,441,166 | $ 1,405,890 |
Actual, ratio | 0.130 | 0.125 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 942,830 | $ 956,880 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.085 | 0.085 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,411,166 | $ 1,375,890 |
Actual ratio | 0.127 | 0.122 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 776,449 | $ 788,018 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.070 | 0.070 |
Tier 1 Capital (to average assets) | ||
Actual, amount | $ 1,441,166 | $ 1,405,890 |
Actual, ratio | 0.117 | 0.113 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 491,874 | $ 496,485 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.040 | 0.040 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,644,189 | $ 1,600,950 |
Actual, ratio | 0.149 | 0.142 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 1,161,246 | $ 1,179,886 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.105 | 0.105 |
To qualify as well-capitalized under prompt corrective action provision, amount | $ 1,105,949 | $ 1,123,701 |
To qualify as well-capitalized under prompt corrective action provision, ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,406,173 | $ 1,370,991 |
Actual, ratio | 0.127 | 0.122 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 940,056 | $ 955,145 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.085 | 0.085 |
To qualify as well-capitalized under prompt corrective action provision, amount | $ 884,759 | $ 898,960 |
To qualify as well-capitalized under prompt corrective action provision, ratio | 0.080 | 0.080 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,406,173 | $ 1,370,991 |
Actual ratio | 0.127 | 0.122 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 774,164 | $ 786,590 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.070 | 0.070 |
To qualify as well-capitalized under prompt corrective action provision, amount | $ 718,867 | $ 730,405 |
To qualify as well-capitalized under prompt corrective action provision, ratio | 0.065 | 0.065 |
Tier 1 Capital (to average assets) | ||
Actual, amount | $ 1,406,173 | $ 1,370,991 |
Actual, ratio | 0.115 | 0.111 |
Minimum requirement for capital adequacy with capital buffer, amount | $ 491,198 | $ 495,761 |
Minimum requirement for capital adequacy with capital buffer, ratio | 0.040 | 0.040 |
To qualify as well-capitalized under prompt corrective action provision, amount | $ 613,998 | $ 619,701 |
To qualify as well-capitalized under prompt corrective action provision, ratio | 0.050 | 0.050 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Changes in Restricted Stock Units (Details) - RSUs | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 323,520,000 |
Granted (in shares) | shares | 172,724,000 |
Vested (in shares) | shares | (138,211,000) |
Forfeited (in shares) | shares | (7,092,000) |
Balance at end of period (in shares) | shares | 350,941,000 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 37.52 |
Granted (in dollars per share) | $ / shares | 35.78 |
Vested (in dollars per share) | $ / shares | 38.27 |
Forfeited (in dollars per share) | $ / shares | 37.71 |
Balance at end of period (in dollars per share) | $ / shares | $ 36.37 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 4,910 | $ 5,533 | |||
Dividends declared not paid on restricted stock units | $ 183 | $ 158 | 183 | 158 | |
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 | 4,621 | 1,802 | 5,289 | 6,393 | |
Stock-based compensation expense | 1,291 | 2,188 | 3,997 | 3,894 | |
Unrecognized compensation cost related to nonvested awards | 9,530 | $ 9,530 | |||
Expected weighted-average period to be recognized | 1 year 11 months 19 days | ||||
Dividends declared not paid on restricted stock units | $ 244 | $ 244 | $ 268 | ||
RSUs | 2016-LTIP Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuable (in shares) | 1,360,392 | 1,360,392 | |||
RSUs | Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 148 | 272 | $ 347 | 447 | |
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 799 | $ 1,060 | 913 | $ 1,639 | |
Unrecognized compensation cost related to nonvested awards | 13,897 | $ 13,897 | |||
Expected weighted-average period to be recognized | 2 years 2 months 4 days | ||||
Dividends declared not paid on restricted stock units | $ 141 | $ 141 | $ 85 | ||
Criteria period | 3 years | ||||
Maximum unrecognized compensation cost, payout percentage | 200% | 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% | ||||
Employee Stock | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuable (in shares) | 200,000 | 200,000 | |||
Purchase price percentage of subsequent offering periods | 95% | ||||
Maximum number of shares per participant (in shares) | 725 | ||||
Shares issued under plan (in shares) | 0 | 0 | 10,606 | 8,214 | |
Number of shares reserved for issuance (in shares) | 2,283,620 | 2,283,620 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Changes in Performance Stock Units (Details) - PSUs | 6 Months Ended |
Jun. 30, 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 | (9,778) |
Vested (in shares) | shares | (40,071) |
Forfeited or expired (in shares) | shares | (2,133) |
Balance at end of period (in shares) | shares | 221,919 |
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) | 42.54 |
Vested (in dollars per share) | 42.71 |
Forfeited or expired (in dollars per share) | 39.30 |
Balance at end of period (in dollars per share) | 38.08 |
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 | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 35.60 |
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 | 48,710 |
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 | 75,893 |
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 | 97,316 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2024 | $ 49,073 |
New loans and advances | 2,332 |
Change in related party status | 0 |
Repayments | (21,725) |
Loans outstanding at June 30, 2024 | $ 29,680 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Deposits from related parties | $ 219,872,000 | $ 219,872,000 | $ 316,141,000 | ||
Other income | 4,611,000 | $ 2,485,000 | 6,321,000 | $ 6,035,000 | |
Amortized cost | 1,664,587,000 | 1,664,587,000 | 1,658,779,000 | ||
Manufactured loan housing securities | |||||
Related Party Transaction [Line Items] | |||||
Mater loan purchase agreement, maximum capacity | 250,000 | $ 250,000 | |||
Master loan purchase agreement, term | 5 years | ||||
Loans purchased | 17,581,000 | 6,449,000 | $ 26,806,000 | 6,449,000 | |
Amortized cost | 57,885,000 | 57,885,000 | 32,154,000 | ||
Preferred Stock | |||||
Related Party Transaction [Line Items] | |||||
Equity security without readily determinable market value | 10,000,000 | 10,000,000 | 10,000,000 | ||
Directors | |||||
Related Party Transaction [Line Items] | |||||
Operating lease expense | 121,000 | 103,000 | 211,000 | 193,000 | |
Directors | FBK Aviation, LLC | Aviation Time Sharing Agreements | |||||
Related Party Transaction [Line Items] | |||||
Other income | 19,000 | $ 4,000 | 43,000 | $ 11,000 | |
Unfunded Loan Commitment | Certain Executive Officers, Certain Management and Directors and Their Associates | |||||
Related Party Transaction [Line Items] | |||||
Unfunded commitments | $ 23,850,000 | $ 23,850,000 | $ 44,206,000 |