Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 11, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 333-258176 | |
Entity Registrant Name | FIRSTSUN CAPITAL BANCORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4552413 | |
Entity Address, Address Line One | 1400 16th Street | |
Entity Address, Address Line Two | Suite 250 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 831-6704 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,924,169 | |
Entity Central Index Key | 0001709442 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 388,349 | $ 343,526 |
Securities available-for-sale, at fair value | 532,650 | 536,973 |
Securities held-to-maturity, fair value of $33,502 and $33,218, respectively | 38,470 | 38,901 |
Loans held-for-sale, at fair value | 66,255 | 57,323 |
Loans, net of allowance for credit losses of $74,459 and $65,917, respectively | 5,986,516 | 5,845,915 |
Mortgage servicing rights, at fair value | 73,424 | 74,097 |
Premises and equipment, net | 86,430 | 87,079 |
Other real estate owned and foreclosed assets, net | 6,358 | 6,358 |
Bank-owned life insurance | 78,376 | 77,923 |
Restricted equity securities | 46,747 | 50,215 |
Goodwill | 93,483 | 93,483 |
Core deposits and other intangible assets, net | 14,762 | 15,806 |
Accrued interest receivable | 28,725 | 28,543 |
Deferred tax assets, net | 46,732 | 48,355 |
Prepaid expenses and other assets | 123,179 | 125,825 |
Total assets | 7,610,456 | 7,430,322 |
Deposits: | ||
Noninterest-bearing accounts | 1,764,440 | 1,820,490 |
Interest-bearing accounts | 4,229,826 | 3,944,572 |
Total deposits | 5,994,266 | 5,765,062 |
Securities sold under agreements to repurchase | 31,645 | 36,721 |
Federal Home Loan Bank advances | 577,285 | 643,885 |
Convertible notes payable, net | 5,393 | 5,355 |
Subordinated debt, net | 74,980 | 74,880 |
Accrued interest payable | 9,610 | 5,798 |
Accrued expenses and other liabilities | 118,227 | 124,085 |
Total liabilities | 6,811,406 | 6,655,786 |
Commitments and contingencies (Note 24) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued or outstanding, respectively | 0 | 0 |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 24,924,023 and 24,920,984 shares issued; 24,924,023 and 24,920,984 shares outstanding, respectively | 2 | 2 |
Additional paid-in capital | 461,174 | 460,720 |
Retained earnings | 380,270 | 357,797 |
Accumulated other comprehensive loss, net | (42,396) | (43,983) |
Total stockholders’ equity | 799,050 | 774,536 |
Total liabilities and stockholders’ equity | $ 7,610,456 | $ 7,430,322 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 33,502 | $ 33,218 |
Loans, allowance for credit losses | $ 74,459 | $ 65,917 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 24,924,023 | 24,920,984 |
Common stock, shares outstanding (in shares) | 24,924,023 | 24,920,984 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest and fee income on loans: | ||
Taxable | $ 83,937 | $ 36,891 |
Tax exempt | 4,664 | 4,967 |
Interest and dividend income on securities: | ||
Taxable | 4,157 | 2,271 |
Tax exempt | 7 | 4 |
Other interest income | 2,138 | 528 |
Total interest income | 94,903 | 44,661 |
Interest expense: | ||
Interest expense on deposits | 14,179 | 1,574 |
Interest expense on securities sold under agreements to repurchase | 30 | 8 |
Interest expense on other borrowed funds | 6,577 | 1,794 |
Total interest expense | 20,786 | 3,376 |
Net interest income | 74,117 | 41,285 |
Provision for credit losses | 3,360 | 3,700 |
Net interest income after credit loss expense | 70,757 | 37,585 |
Noninterest income: | ||
Service charges on deposit accounts | 5,015 | 3,925 |
Credit and debit card fees | 2,981 | 2,415 |
Trust and investment advisory fees | 1,461 | 1,947 |
Income from mortgage banking services, net | 7,429 | 14,561 |
Gain on other real estate owned and foreclosed assets activity, net | 0 | 20 |
Other noninterest income | 2,045 | 825 |
Total noninterest income | 18,931 | 23,693 |
Noninterest expense: | ||
Salary and employee benefits | 35,049 | 34,225 |
Occupancy and equipment | 8,174 | 6,833 |
Amortization of intangible assets | 1,044 | 327 |
Merger related expenses | 0 | 303 |
Other noninterest expenses | 11,999 | 10,779 |
Total noninterest expense | 56,266 | 52,467 |
Income before income taxes | 33,422 | 8,811 |
Provision for income taxes | 7,141 | 1,142 |
Net income | 26,281 | 7,669 |
Other comprehensive income (loss), net of tax: | ||
Gain (loss) on securities available-for-sale | 2,271 | (16,332) |
(Loss) gain on fair value hedges of securities available-for-sale | (684) | 0 |
Other comprehensive income (loss), net of tax | 1,587 | (16,332) |
Comprehensive income (loss) | 27,868 | (8,663) |
Earnings per share: | ||
Net income available to common stockholders, basic | 26,281 | 7,669 |
Net income available to common stockholders, diluted | $ 26,281 | $ 7,669 |
Basic (in dollars per share) | $ 1.05 | $ 0.42 |
Diluted (in dollars per share) | $ 1.03 | $ 0.41 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common stock | Common stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional paid-in capital | Additional paid-in capital Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury stock | Treasury stock Cumulative Effect, Period of Adoption, Adjusted Balance | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) Cumulative Effect, Period of Adoption, Adjusted Balance |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 19,903,342 | |||||||||||||
Balance, beginning of period at Dec. 31, 2021 | $ 524,038 | $ 2 | $ 261,905 | $ (38,148) | $ 298,615 | $ 1,664 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Share-based compensation, net of forfeitures | 166 | 166 | ||||||||||||
Net income | 7,669 | 7,669 | ||||||||||||
Other comprehensive income (loss) | (16,332) | (16,332) | ||||||||||||
Balance, end of period (in shares) at Mar. 31, 2022 | 19,903,342 | |||||||||||||
Balance, ending of period at Mar. 31, 2022 | $ 515,541 | $ 2 | 262,071 | (38,148) | 306,284 | (14,668) | ||||||||
Balance, beginning of period (in shares) at Dec. 31, 2022 | 24,920,984 | 24,920,984 | ||||||||||||
Balance, beginning of period at Dec. 31, 2022 | $ 774,536 | $ (3,808) | $ 770,728 | $ 2 | $ 2 | 460,720 | $ 460,720 | 0 | $ 0 | 357,797 | $ (3,808) | $ 353,989 | (43,983) | $ (43,983) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock on restricted stock grants | 101 | 101 | ||||||||||||
Stock option exercises (in shares) | 3,039 | |||||||||||||
Stock option exercises | 27 | 27 | ||||||||||||
Share-based compensation, net of forfeitures | 326 | 326 | ||||||||||||
Net income | 26,281 | 26,281 | ||||||||||||
Other comprehensive income (loss) | $ 1,587 | 1,587 | ||||||||||||
Balance, end of period (in shares) at Mar. 31, 2023 | 24,924,023 | 24,924,023 | ||||||||||||
Balance, ending of period at Mar. 31, 2023 | $ 799,050 | $ 2 | $ 461,174 | $ 0 | $ 380,270 | $ (42,396) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) | 3 Months Ended |
Mar. 31, 2023 shares | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock on restricted stock grants (in shares) | 11,344 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 26,281 | $ 7,669 |
Adjustments to reconcile income to net cash provided by operating activities: | ||
Provision for credit losses | 3,360 | 3,700 |
Depreciation | 1,710 | 1,414 |
Deferred tax expense | 2,341 | 0 |
Amortization of net premium on securities | 264 | 685 |
Accretion of net discount on acquired loans | (953) | (192) |
Net change in deferred loan origination fees and costs | (70) | (316) |
Amortization of core deposits and other intangible assets | 1,044 | 327 |
Amortization of software implementation costs | 181 | 229 |
Amortization of premium on acquired deposits | (281) | 0 |
Accretion of discount on subordinated debt | 63 | 64 |
Amortization of issuance costs on subordinated debt | 37 | 34 |
Accretion of discount on convertible notes payable | 38 | 526 |
Increase in cash surrender value of bank-owned life insurance | (453) | (309) |
Impairment of other real estate owned and foreclosed assets | 0 | 8 |
Federal Home Loan Bank stock dividends | (554) | (77) |
Share-based compensation expense | 427 | 166 |
Decrease (increase) in fair value of mortgage servicing rights | 2,720 | (8,565) |
Net loss on disposal of premises and equipment | 0 | 82 |
Net gain on other real estate owned and foreclosed assets activity | 0 | (20) |
Net gain on sales of loans held-for-sale | (899) | (6,344) |
Origination of loans held-for-sale | (193,845) | (326,447) |
Proceeds from sales of loans held-for-sale | 183,765 | 374,505 |
Changes in operating assets and liabilities: | ||
Lease right-of-use assets | (116) | 0 |
Accrued interest receivable | (182) | (518) |
Prepaid expenses and other assets | 898 | (19,478) |
Accrued interest payable | 3,812 | 314 |
Accrued expenses and other liabilities | (4,794) | (12,292) |
Net cash provided by (used in) operating activities | 24,794 | 15,165 |
Cash flows from investing activities: | ||
Proceeds from maturities of held-to-maturity securities | 453 | 1,159 |
Purchases of available-for-sale securities | (1,757) | (31,959) |
Proceeds from sale or maturities of available-for-sale securities | 8,800 | 25,483 |
Loan originations, net of repayments | (148,175) | (278,429) |
Purchases of premises and equipment | (1,060) | (548) |
Proceeds from the sale of premises and equipment | 0 | 2 |
Proceeds from sales of other real estate owned and foreclosed assets | 0 | 628 |
Purchases of restricted equity securities | (16,740) | (30) |
Proceeds from the sale or redemption of restricted equity securities | 20,762 | 472 |
Purchase of other investments | (247) | 0 |
Proceeds from the sale or redemption of other investments | 158 | 500 |
Net cash used in investing activities | (137,806) | (282,722) |
Cash flows from financing activities: | ||
Net change in deposits | 229,485 | 91,534 |
Net change in securities sold under agreements to repurchase | (5,077) | (22,466) |
Proceeds from Federal Home Loan Bank advances | 467,000 | 0 |
Repayments of Federal Home Loan Bank advances | (533,600) | 0 |
Repayments of other borrowings | 0 | (6,750) |
Proceeds from subordinated debt, net | 0 | 24,466 |
Proceeds from issuance of common stock, net of issuance costs | 27 | 0 |
Net cash provided by (used in) financing activities | 157,835 | 86,784 |
Net (decrease) increase in cash and cash equivalents | 44,823 | (180,773) |
Cash and cash equivalents, beginning of period | 343,526 | 668,462 |
Cash and cash equivalents, end of period | 388,349 | 487,689 |
Supplemental disclosures of cash flow information: | ||
Interest paid on deposits | 10,010 | 1,623 |
Interest paid on borrowed funds | 10,428 | 1,919 |
Cash paid for income taxes, net | 247 | 5,473 |
Non-cash investing and financing activities: | ||
Net change in unrealized loss on available-for-sale securities | 3,006 | (21,618) |
Loan charge-offs | 123 | 1,029 |
Loans transferred to other real estate owned and foreclosed assets | 0 | 291 |
Mortgage servicing rights resulting from sale or securitization of mortgage loans | $ 2,047 | $ 4,524 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Nature of Operations - The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company” and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank”) and Logia Portfolio Management, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”. These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun’s audited consolidated financial statements and footnotes thereto for the year ended December 31, 2022, included in the 2022 Annual Report. Business Combination - On April 1, 2022, FirstSun completed its previously announced Merger with Pioneer Bancshares, Inc. (“Pioneer”). Under the merger agreement, a wholly-owned subsidiary of FirstSun, FSCB Merger Subsidiary, Inc., merged with and into Pioneer, with Pioneer continuing as the surviving entity and becoming a wholly-owned subsidiary of FirstSun (the “Merger”). Immediately after the effective time of the Merger (the “Effective Time”), Pioneer was merged with and into FirstSun, with FirstSun continuing as the surviving entity (the “second step Merger”). Immediately following the completion of the second step Merger, Pioneer’s wholly-owned subsidiary, Pioneer Bank, SSB, a Texas state savings bank, was merged with and into the Bank, with the Bank continuing as the surviving bank. Pursuant to the terms of the merger agreement, at the Effective Time, each Pioneer shareholder had the right to receive 1.0443 shares of FirstSun common stock, for each share of Pioneer common stock owned by the shareholder, with cash paid in lieu of fractional shares. Each outstanding share of FirstSun common stock remained outstanding and was unaffected by the Merger. Further information is presented in Note 2 - Merger with Pioneer Bancshares, Inc. Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Risks and Uncertainties - In the normal course of business, companies in the banking and mortgage industries encounter certain economic and regulatory risks. Economic risks include credit risk, interest rate risk, liquidity risk, prepayment risk, and market risk. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments. We are subject to interest rate risk to the extent that in a rising interest rate environment we may experience a decrease in loan production, as well as decreases in the value of mortgage loans held-for-sale and in commitments to originate loans, which may adversely impact our earnings. Risks related to liquidity are heightened in the current environment due to competition for deposits and recent bank failures in early 2023. We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, or there are early payment defaults, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay off within a specified time frame, we may be required to refund a portion of the sales proceeds to the investors. We established reserves for potential losses related to these representations and warranties which are recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserves, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. Further information is presented in Note 17 - Commitments and Contingencies . Reclassification - Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders' equity as previously reported. Accounting Pronouncements Recently Adopted - As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards. In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which significantly changes the way that entities are required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach previously required. The new approach requires entities to measure all expected credit losses for financial assets over their expected lives based on historical experience, current conditions, and reasonable and supportable forecasts of collectability. The expected credit loss model requires earlier recognition of credit losses than the incurred loss approach. We expect ongoing changes in the allowance for credit losses will be driven primarily by the growth of our loan portfolio, credit quality, and the economic environment and related projections at that time. In addition, the ASU developed a new accounting treatment for purchased financial assets with credit deterioration. The ASU also modifies the other-than-temporary impairment model for available-for-sale debt securities and held-to-maturity debt securities by requiring companies to record an allowance for credit impairment rather than write-downs of such assets. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-13. We adopted the amendments of these ASUs as of January 1, 2023. Upon adoption, we recorded an increase to the allowance for credit losses on loans held-for-investment of $5.3 million, a reduction in the allowance for credit losses on unfunded commitments of $0.2 million, an increase to deferred tax assets of $1.2 million, and a corresponding one-time cumulative reduction to retained earnings, net of tax, of $3.8 million in the consolidated balance sheet as of January 1, 2023. The adoption of this ASU, as it relates to available-for-sale debt securities and held-to-maturity debt securities, did not have a material impact on the consolidated financial statements as of January 1, 2023. In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. We adopted the amendments in this ASU as of January 1, 2023 prospectively. As a result of the adoption of ASU 2016-13 and ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023. Updates to our Significant Accounting Policies a. Securities - The Bank classifies debt securities as either available-for-sale or held-to-maturity. Held-to-maturity securities are those which the Bank has the positive intent and ability to hold to maturity. All other debt securities are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost. Available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity (accumulated other comprehensive income/loss) until realized. Realized gains and losses on securities classified as available-for-sale are included in earnings and recorded on trade date. The specific identification method is used to determine the cost of the securities sold. Purchased premiums and discounts on debt securities are amortized or accreted into interest income using the yield-to-maturity method based upon the remaining contractual maturity of the asset, adjusted for any expected prepayments or call features for securities purchased at a premium. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. Any previously recognized allowance for credit losses (“ACL”) should be written off and the write-down in excess of such ACL would be recorded through a charge to the provision for credit losses. For available-for-sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the cash position of the issuer and its cash and capital generation capacity, which could increase or diminish the issuer’s ability to repay its bond obligations, the extent to which the fair value is less than the amortized cost basis, any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information about the financial condition of the issuer, credit ratings, the failure of the issuer to make scheduled principal or interest payments, recent legislation and government actions affecting the issuer’s industry, and actions taken by the issuer to deal with the economic climate. Management also takes into consideration changes in the near-term prospects of the underlying collateral of a security, if any, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions and the level of cash flow generated from the underlying collateral, if any, supporting the principal and interest payments on the debt securities. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and management records an ACL for the credit loss, limited to the amount by which the fair value is less than the amortized cost basis. Management recognizes in accumulated other comprehensive income (“AOCI”) any impairment that has not been recorded through an ACL, net of tax. Non-credit-related impairments result from other factors, including changes in interest rates. Management records changes in the ACL as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management has elected not to measure an ACL on accrued interest related to available-for-sale debt securities, as uncollectible accrued interest receivables are written off on a timely manner. The ACL on held-to-maturity debt securities is based on an expected loss methodology referred to as current expected credit loss (“CECL”) methodology by major security type. Any expected credit loss is provided through the ACL on held-to-maturity debt securities and is deducted from the amortized cost basis of the security so the statement of financial condition reflects the net amount management expects to collect. For the ACL of held-to-maturity securities, management considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has elected not to measure an ACL on accrued interest related to held-to-maturity debt securities, as uncollectible accrued interest receivables are written off on a timely manner. Equity securities are carried at fair value, with changes in fair values reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. Equity securities are included as a component of “prepaid expenses and other assets” in our consolidated balance sheets. b. Loans Receivable - Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for credit losses. Interests on loans receivable is accrued and credited to income based upon the principal amount outstanding using primarily a simple interest calculation. Loan origination fees and related direct loan origination costs for a given loan are offset and only the net amount is deferred and amortized and recognized in interest income over the life of the loan using the interest method without anticipating prepayments. The accrual of interest income on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business, and a loan is moved to nonaccrual status in accordance with the Bank’s policy, typically after 90 or 120 days of non-payment, as follows: interest income on consumer, commercial real estate and commercial and industrial loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in the process of collection; interest income on residential real estate loans is typically discontinued at the time the loan is 120 days delinquent unless the loan is well-secured and in the process of collection. Consumer and credit card loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest in full is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. When discontinued, all unpaid interest is reversed. Interest is included in income after the date the loan is placed on nonaccrual status only after all principal has been paid or when the loan is returned to accrual status. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled. Acquired Loans – Loans acquired through a purchase or a business combination are recorded at their fair value as of the acquisition date. Management performs an assessment of acquired loans to first determine if such loans have experienced a more than insignificant deterioration in credit quality since their origination and thus should be classified and accounted for as purchased credit deteriorated (“PCD”) loans. For loans that have not experienced a more than insignificant deterioration in credit quality since origination, referred to as non-PCD loans, management records such loans at fair value, with any resulting discount or premium accreted or amortized into interest income over the remaining life of the loan using the interest method. Additionally, upon the purchase or acquisition of non-PCD loans, management measures and records an ACL based on the Bank’s methodology for determining the ACL. The ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans are purchased or acquired. Acquired loans that are classified as PCD are recognized at fair value, which includes any premiums or discounts resulting from the difference between the initial amortized cost basis and the par value. Premiums and non-credit loss related discounts are amortized or accreted into interest income over the remaining life of the loan using the interest method. Unlike non-PCD loans, the initial ACL for PCD loans is established through an adjustment to the acquired loan balance and not through a charge to the provision for credit losses in the period in which the loans are acquired. At acquisition, the ACL for PCD loans, which represents the fair value credit discount, is determined using a discounted cash flow method that considers the PDs and LGDs used in the Bank’s ACL methodology. Characteristics of PCD loans include the following: delinquency, payment history since origination, credit scores migration and/or other factors the Bank may become aware of through its initial analysis of acquired loans that may indicate there has been a more than insignificant deterioration in credit quality since a loan’s origination. Subsequent to acquisition, the ACL for both non-PCD and PCD loans is determined pursuant to the Bank ACL methodology in the same manner as all other loans. c. Allowance for Credit Losses - The ACL for loans held for investment is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Loans are charged-off against the allowance when management confirms the loan balance is uncollectible. Management estimates the allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Internal and industry historical credit loss experience is a significant input for the estimation of expected credit losses. Additionally, management’s assessment involves evaluating key factors, which include credit and macroeconomic indicators, such as changes in economic growth levels, unemployment rates, property values, and other relevant factors, to account for current and forecasted market conditions that are likely to cause estimated credit losses over the life of the loans to differ from historical credit losses. Expected credit losses are generally estimated over the contractual term of the loans, adjusted by prepayments when appropriate. Management estimates the ACL primarily based on a probability of default (“PD”), loss-given default (“LGD”), and exposure at default (“EAD”) modeled approach, or individually for collateral dependent loans. Management evaluates the need for changes to the ACL by portfolio segments and classes of loans within certain of those portfolio segments. Factors such as the credit risk inherent in a portfolio and how management monitors the related quality, as well as the estimation approach to estimate credit losses, are considered in the determination of such portfolio segments and classes. The Bank believes it has a diversified portfolio across a variety of industries, and the portfolio is generally centered in the states in which the Bank has offices. Management has identified the following portfolio segments: Commercial and industrial loans include commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment and inventory purchases, and other expansion projects. These loans are made primarily in the Bank’s market areas, are underwritten on the basis of the borrower’s ability to service the debt from revenue, and extended under the Bank’s normal credit standards, controls, and monitoring systems. Collateral is often represented by liens on accounts receivable, inventory, equipment, and other forms of general non-real estate business assets. The Bank often obtains some form of credit enhancement through a personal guaranty of the borrower, principals and/or others. The global cash flow capability of commercial and industrial loan customers is generally evaluated both at underwriting and during the life of the loan. Commercial and industrial loans may involve increased risk due to the expectation that repayments for such loans generally come from the operation of the business activity and those operations may be unsuccessful. A disruption in the operating cash flows from a business, sometimes influenced by events not under the control of the borrower such as changing business environment, changes in regulations and political climate, rising interest rates, unexpected natural events, or competition could also impact the borrower’s capacity to repay the loan. Assets collateralizing commercial and industrial loans may also decline in value more quickly than anticipated. Commercial and industrial loans require increased underwriting and monitoring to offset these risks, for which the Bank’s systems have been designed to provide. Commercial real estate loans include owner occupied and non-owner occupied commercial real estate mortgage loans to operating commercial and agricultural businesses, and include both loans for long-term financing of land and buildings and loans made for the initial development or construction of a commercial real estate project. Residential real estate loans represent loans to consumers collateralized by a mortgage on a residence and include purchase money, refinancing, secondary mortgages, and home equity loans and lines of credit. Public finance loans include loans to our charter school and municipal based customers. Consumer loans include direct consumer installment loans, credit card accounts, overdrafts and other revolving loans. Other loans consist of loans to nondepository financial institutions, lease financing receivables and loans for agricultural production. The ACL is measured using a PD/LGD with EAD model that is calculated based on the product of a cumulative PD and LGD. PD and LGD estimates are assigned based upon the periodic completion of credit risk scorecards. Remaining EAD is derived based on inherent loan characteristics and like-kind loan prepayment trends. Under this approach, management calculates losses for each loan for all future periods using the PD and LGD rates derived from the term structure curves applied to the estimated remaining balance of the loans. For the ACL determination of all portfolios, the expectations for relevant macroeconomic variables consider an initial reasonable and supportable period of four years and a reversion period of one year, utilizing a straight-line approach and reverting back to the historical loss rates. Management periodically considers the need to make qualitative adjustments to the ACL. Qualitative adjustments may be related to and include, but not be limited to factors such as the following: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions; (ii) organization specific risks such as credit concentrations, collateral specific risks, nature and size of the portfolio and external factors that may ultimately impact credit quality, and (iii) other limitations associated with factors such as changes in underwriting and loan resolution strategies, among others. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral, less selling costs. For loans for which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of the collateral, with selling costs considered in the event sale of the collateral is expected. Management has elected not to measure an ACL on accrued interest related to held for investment loans, as uncollectible accrued interest receivables are written off on a timely manner. Loan credit quality and the adequacy of the allowance are also subject to periodic examination by regulatory agencies. Such agencies may require adjustments to the allowance based upon their judgements about information available at the time of their examination. |
Merger with Pioneer Bancshares,
Merger with Pioneer Bancshares, Inc. | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Merger with Pioneer Bancshares, Inc. | Merger with Pioneer Bancshares, Inc. As described under the title “Business Combination” in Note 1 - Organization and Basis of Presentation , we completed our merger with Pioneer on April 1, 2022. We accounted for the Pioneer merger under the acquisition method in accordance with ASC Topic 805, Business Combinations . Accordingly, the purchase price was allocated to the fair value of the assets acquired, including identifiable intangible assets, and the liabilities assumed as of the closing date of the merger. Goodwill resulting from the difference between the fair value of the assets acquired and the fair value of the liabilities assumed is not amortizable for book or tax purposes. This goodwill resulted from the combination of expected operational synergies, the increase in our market share in Texas and other factors. Although the merger was nontaxable, the merger gave rise to certain temporary differences for which deferred taxes have been recognized. The results of operations for the Pioneer merger have been included in our consolidated financial results beginning on the April 1, 2022 closing date. Consideration Under the terms of the merger agreement, each outstanding share of Pioneer common stock was converted into 1.0443 shares of FirstSun common stock (except for shareholders who properly exercised their dissenters’ rights) with cash paid in lieu of fractional shares. Accordingly, we issued 6,467,466 shares of our common stock to Pioneer shareholders in the merger valued at $230,760 based on a third-party valuation of our common stock in accordance with ASC Topic 820, Fair Value Measurements as of the closing date. We also converted Pioneer stock options into 431,645 options to purchase shares of FirstSun common stock. This conversion was valued at $5,334. We also paid cash to certain Pioneer shareholders of $4,736. Total aggregate consideration paid in the Pioneer merger was $240,830. Fair Value We recorded the estimated fair value of assets acquired and liabilities assumed based on initial valuations at April 1, 2022. The determination of estimated fair value required management to make assumptions related to discount rates, expected future cash flows, market conditions and other future events that are subjective in nature and may require adjustments. As of March 31, 2023, we do not expect any changes to our fair value estimates. Estimated fair values of the assets acquired and liabilities assumed in this transaction are as follows: April 1, Cash and cash equivalents $ 449,278 Investment securities 157,859 Loans held-for-sale 2,923 Loans 811,300 Premises and equipment 39,935 Bank-owned life insurance 21,382 Restricted equity securities 9,320 Core deposits and other intangible assets 11,771 Accrued interest receivable 3,947 Deferred tax assets 19,752 Prepaid expenses and other assets 7,317 Total assets acquired 1,534,784 Deposits 1,192,081 Federal Home Loan Bank advances 159,924 Accrued interest payable 407 Accrued expenses and other liabilities 1,975 Total liabilities assumed 1,354,387 Fair value of net assets acquired 180,397 Purchase price 240,830 Goodwill $ 60,433 Acquired loans and purchased credit impaired loans Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considered, among other things, projected default rates, loss given default rates and recovery rates. No allowance for credit losses was carried over from Pioneer. We identified certain acquired loans as purchased credit impaired (PCI). PCI loan identification considered payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may be an indication of a deterioration of credit quality since origination. Although we identified certain acquired loans as PCI, the amount was determined to be insignificant. The following table discloses the fair value and contractual value of loans acquired from Pioneer on April 1, 2022. Acquired Loans Contractual Principal Balance Commercial and industrial $ 98,351 $ 98,752 Commercial real estate 509,173 516,341 Residential real estate 173,094 174,763 Consumer 30,682 31,982 Total fair value $ 811,300 $ 821,838 Supplemental pro forma information The following unaudited pro forma summary presents consolidated information of FirstSun as if the business combination had occurred on January 1, 2022. (Unaudited) 2022 Net interest income $ 51,436 Provision for loan losses 2,850 Net interest income after provision for loan losses 48,586 Noninterest income 25,120 Noninterest expenses 42,648 Income before income taxes 31,058 Provision for income taxes 5,810 Net income $ 25,248 Earnings per share: Net income available to common stockholders $ 25,248 Basic $ 1.02 Diluted $ 0.99 The unaudited pro forma amounts for these periods includes adjustments for interest income on loans and investment securities acquired, amortization of intangibles arising from the transaction, adjustments for interest expense on deposits and Federal Home Loan bank advances acquired, adjustments for merger related expenses incurred, and the related income tax effects of all these items and the income tax costs or benefits derived from the income or loss before taxes of Pioneer. The unaudited pro forma amounts are not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Gross Gross Estimated March 31, 2023 Available-for-sale: U.S. treasury $ 62,000 $ — $ (4,631) $ 57,369 U.S. agency 2,421 — (38) 2,383 Obligations of states and political subdivisions 29,935 — (4,207) 25,728 Mortgage backed - residential 126,469 3 (15,194) 111,278 Collateralized mortgage obligations 220,713 — (19,579) 201,134 Mortgage backed - commercial 132,427 — (12,794) 119,633 Other debt 16,779 — (1,654) 15,125 Total available-for-sale $ 590,744 $ 3 $ (58,097) $ 532,650 Held-to-maturity: Obligations of states and political subdivisions $ 25,418 $ 5 $ (4,097) $ 21,326 Mortgage backed - residential 8,478 3 (616) 7,865 Collateralized mortgage obligations 4,574 — (263) 4,311 Total held-to-maturity $ 38,470 $ 8 $ (4,976) $ 33,502 December 31, 2022 Available-for-sale: U.S. treasury $ 62,010 $ — $ (5,361) $ 56,649 U.S. agency 2,881 — (47) 2,834 Obligations of states and political subdivisions 29,897 — (4,998) 24,899 Mortgage backed - residential 129,955 6 (13,826) 116,135 Collateralized mortgage obligations 225,559 — (21,294) 204,265 Mortgage backed - commercial 130,997 — (13,661) 117,336 Other debt 16,774 — (1,919) 14,855 Total available-for-sale $ 598,073 $ 6 $ (61,106) $ 536,973 Held-to-maturity: Obligations of states and political subdivisions $ 25,378 $ 5 $ (4,891) $ 20,492 Mortgage backed - residential 8,705 4 (511) 8,198 Collateralized mortgage obligations 4,818 — (290) 4,528 Total held-to-maturity $ 38,901 $ 9 $ (5,692) $ 33,218 There was no allowance for credit losses related to our investment securities as of March 31, 2023. As of March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. Fair value and unrealized losses on debt securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number March 31, 2023 Available-for-sale: U.S. treasury $ — $ — $ 57,369 $ (4,631) $ 57,369 $ (4,631) 10 U.S. agency — — 2,383 (38) 2,383 (38) 7 Obligations of states and political subdivisions 2,070 (204) 23,188 (4,003) 25,258 (4,207) 18 Mortgage backed - residential 3,770 (177) 107,133 (15,017) 110,903 (15,194) 87 Collateralized mortgage obligations 49,441 (1,270) 151,693 (18,309) 201,134 (19,579) 66 Mortgage backed - commercial 4,857 (16) 113,019 (12,778) 117,876 (12,794) 22 Other debt — — 15,125 (1,654) 15,125 (1,654) 9 Total available-for-sale $ 60,138 $ (1,667) $ 469,910 $ (56,430) $ 530,048 $ (58,097) 219 Held-to-maturity: Obligations of states and political subdivisions $ — $ — $ 20,986 $ (4,097) $ 20,986 $ (4,097) 8 Mortgage backed - residential — — 7,676 (616) 7,676 (616) 10 Collateralized mortgage obligations — — 4,311 (263) 4,311 (263) 5 Total held-to-maturity $ — $ — $ 32,973 $ (4,976) $ 32,973 $ (4,976) 23 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number December 31, 2022 Available-for-sale: U.S. treasury $ 25,702 $ (967) $ 30,947 $ (4,394) $ 56,649 $ (5,361) 10 U.S. agency — — 2,834 (47) 2,834 (47) 7 Obligations of states and political subdivisions 21,676 (3,784) 2,753 (1,214) 24,429 (4,998) 18 Mortgage backed - residential 51,921 (2,939) 63,691 (10,887) 115,612 (13,826) 87 Collateralized mortgage obligations 111,360 (4,631) 92,905 (16,663) 204,265 (21,294) 66 Mortgage backed - commercial 70,710 (6,475) 46,626 (7,186) 117,336 (13,661) 22 Other debt 14,855 (1,919) — — 14,855 (1,919) 9 Total available-for-sale $ 296,224 $ (20,715) $ 239,756 $ (40,391) $ 535,980 $ (61,106) 219 Held-to-maturity: Obligations of states and political subdivisions $ 20,153 $ (4,891) $ — $ — $ 20,153 $ (4,891) 8 Mortgage backed - residential 7,993 (511) — — 7,993 (511) 10 Collateralized mortgage obligations 4,127 (275) 401 (15) 4,528 (290) 5 Total held-to-maturity $ 32,273 $ (5,677) $ 401 $ (15) $ 32,674 $ (5,692) 23 We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. We do not have plans to sell any of the available-for-sale debt securities with unrealized losses as of March 31, 2023, and we believe it is more likely than not that we would not be required to sell such available-for-sale debt securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential credit impairments. During the three months ended March 31, 2023, there were no credit impairments related to our investment securities. The amortized cost and fair value of our debt securities by contractual maturity as of March 31, 2023 are summarized in the following table. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or earlier redemptions that may occur. Amortized Estimated Available-for-sale: Due within 1 year $ 9,529 $ 9,318 Due after 1 year through 5 years 52,192 49,286 Due after 5 years through 10 years 163,650 147,347 Due after 10 years 365,373 326,699 Total available-for-sale $ 590,744 $ 532,650 Held-to-maturity: Due after 1 year through 5 years $ 1,111 $ 1,081 Due after 5 years through 10 years 800 768 Due after 10 years 36,559 31,653 Total held-to-maturity $ 38,470 $ 33,502 Securities with a carrying value of $435,916 and $428,721 were pledged to secure public deposits, securities sold under agreements to repurchase and borrowed funds at March 31, 2023 and December 31, 2022, respectively. There were no proceeds from sales and calls of securities for the three months ended March 31, 2023 and 2022. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans | Loans Loans held-for-investment by portfolio type consist of the following as of: March 31, December 31, Commercial and industrial $ 2,418,771 $ 2,310,929 Commercial real estate: Non-owner occupied 709,977 779,546 Owner occupied 659,999 636,272 Construction and land 320,193 327,817 Multifamily 103,767 102,068 Total commercial real estate 1,793,936 1,845,703 Residential real estate 1,046,047 1,003,931 Public finance 597,850 590,284 Consumer 40,806 42,588 Other 163,565 118,397 Total loans $ 6,060,975 $ 5,911,832 Allowance for credit losses (74,459) (65,917) Loans, net of allowance for credit losses $ 5,986,516 $ 5,845,915 As of March 31, 2023 and December 31, 2022, we had net deferred fees, costs, premiums and discounts of $16,172 and $17,101, respectively, on our loan portfolio. Accrued interest receivable on loans totaled $26,666 and $26,494 at March 31, 2023 and December 31, 2022, respectively, and is included in accrued interest receivable in the accompanying consolidated balance sheets. The following table presents the activity in the allowance for credit losses by portfolio type for the three months ended March 31,: Commercial Commercial Residential Public Consumer Other Total 2023 Allowance for credit losses: Balance, beginning of period $ 40,785 $ 19,754 $ 2,963 $ 1,664 $ 352 $ 399 $ 65,917 Impact of adopting ASC 326 (13,583) 3,867 10,256 3,890 249 577 5,256 Provision for (benefit from) credit losses 1,346 562 946 (5) 129 362 3,340 Loans charged off (59) — — — (64) — (123) Recoveries 56 3 — — 10 — 69 Balance, end of period $ 28,545 $ 24,186 $ 14,165 $ 5,549 $ 676 $ 1,338 $ 74,459 2022 Allowance for credit losses: Balance, beginning of period $ 31,622 $ 13,198 $ 836 $ 1,544 $ 235 $ 112 $ 47,547 Provision for (benefit from) credit losses 2,213 1,368 63 67 8 (19) 3,700 Loans charged off (1,003) — — — (26) — (1,029) Recoveries 177 — 98 — 16 — 291 Balance, end of period $ 33,009 $ 14,566 $ 997 $ 1,611 $ 233 $ 93 $ 50,509 We determine the allowance for credit losses estimate on at least a quarterly basis. As of March 31, 2023 and December 31, 2022, we had an allowance for credit losses on unfunded commitments of $1,117 and $1,313, respectively. For the three months ended March 31, 2023 and 2022 we recorded a provision for credit losses on unfunded commitments of $20 and $125, respectively. The following table presents our loan portfolio aging analysis as of: Loans Loans Loans Loans Greater Nonaccrual Total March 31, 2023 Commercial and industrial $ 2,399,390 $ 1,560 $ 6,831 $ 580 $ 10,410 $ 2,418,771 Commercial real estate: Non-owner occupied 705,029 299 243 2,268 2,138 709,977 Owner occupied 653,268 1,912 — — 4,819 659,999 Construction and land 315,193 4,802 — — 198 320,193 Multifamily 102,809 — 958 — — 103,767 Total commercial real estate 1,776,299 7,013 1,201 2,268 7,155 1,793,936 Residential real estate 1,016,009 18,118 35 — 11,885 1,046,047 Public Finance 597,850 — — — — 597,850 Consumer 40,625 113 — — 68 40,806 Other 160,626 2,472 — — 467 163,565 Total loans $ 5,990,799 $ 29,276 $ 8,067 $ 2,848 $ 29,985 $ 6,060,975 December 31, 2022 Commercial and industrial $ 2,298,207 $ 2,409 $ 819 $ — $ 9,494 $ 2,310,929 Commercial real estate: Non-owner occupied 773,042 4,356 — — 2,148 779,546 Owner occupied 630,335 — — — 5,937 636,272 Construction and land 324,888 2,632 99 — 198 327,817 Multifamily 102,068 — — — — 102,068 Total commercial real estate 1,830,333 6,988 99 — 8,283 1,845,703 Residential real estate 974,450 17,231 1,524 98 10,628 1,003,931 Public Finance 590,284 — — — — 590,284 Consumer 42,434 58 3 — 93 42,588 Other 117,926 — — — 471 118,397 Total loans $ 5,853,634 $ 26,686 $ 2,445 $ 98 $ 28,969 $ 5,911,832 Interest income recorded on nonperforming loans was not material for the three months ended March 31, 2023 and 2022. Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant borrower risk profile information, including the ability to service their debt based on current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor movements in loan portfolio quality. Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings: Pass – Loans classified as Pass have a well-defined primary source of repayment, an acceptable financial position profile (including capitalization), profitability and minimal operating risk. Pass/Watch – Pass/Watch loans require close attention by bank management and enhanced monitoring due to quantitative or qualitative concerns linked to adverse trends or near-term uncertainty. A covenant default or other type of requirement shortfall may have arisen subsequent to a loan's booking or borrower now shows signs of weakness in the overall base of confirmable financial resources available to repay the loan. However, overall financial capacity & performance are considered sufficient to support an expectation of continued payment performance and / or mitigating factors exist that are expected to limit the risk of near term default and loss. Special Mention – Special Mention loans have identified potential weaknesses that are of sufficient materiality to require management’s (persistent) close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the bank's credit position under normal business operations. Special Mention loans contain greater than acceptable risk to warrant increases in credit exposure and are thus considered “criticized”, non-pass rated credits. They may contain weaknesses (that have arisen due to deteriorating conditions since origination) and / or underwriting exceptions that are not currently offset by mitigating factors. However, these weaknesses, while sufficient to constitute significantly elevated credit risk, are not sufficient to support a conclusion that the liquidation of the debt is in significant jeopardy. Substandard - Accruing – Substandard - Accruing loans are inadequately protected by the current sound net worth and paying capacity of the obligor(s). Loans classified as Substandard - Accruing possess one or more well-defined weaknesses that are expected to jeopardize their liquidation but the weaknesses have not progressed to a point where recent late payments on the loan have become more than 90 days past due. These loans are characterized by the distinct possibility that the bank may sustain up to a moderate but not significant level of loss if such weaknesses are not corrected. Losses for Substandard - Accruing loans are moderated by the lower likelihood of ultimate default and the existence of relatively favorable secondary repayment protection. These loans are considered “nonperforming”. Substandard - Nonaccrual – Substandard - Nonaccrual loans are inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as Substandard - Nonaccrual possess material, well-defined weaknesses that are expected to jeopardize their liquidation and have progressed to a point where consistently late payments on the loan have become more than 90 or more days past due. These loans are characterized by the distinct possibility that the bank may sustain a material level of loss if such weaknesses are not corrected. Losses for Substandard - Nonaccrual loans are prone to being elevated based on the strong likelihood of the loan remaining in payment default and an undesirable level of secondary repayment protection. These loans are considered “nonperforming”. Doubtful – Loans classified as Doubtful possess all of the weaknesses inherent in loans classified as Substandard - Nonaccrual with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions and values. A high probability of substantial loss or possible total loss exists. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage at least a portion of the debt. These events include injections of capital, additions of pledged collateral or possible mezzanine debt refinancing options. However, without the occurrence of such events, total loss may be possible. No definite repayment schedule exists for these loans. The Doubtful grade is a temporary grade. If a near term recovery of a portion of the loan balance is indeterminable or unlikely to occur, the remaining balance of the loan should be written off and possible future recoveries may partially offset the full write-off of the loan. These loans are considered “nonperforming”. Loss – Loans classified as Loss are defaulted loans with limited or immaterial recovery prospects. No loan that has not yet defaulted should be classified at this grade level. This rating level tends to be very short lived as the full balance of the loan tends to be fully written off nearly immediately after a change to this rating level. These loans are considered “nonperforming”. The following table present the amortized costs by segment of loans by risk category and origination date as of March 31, 2023: 2023 2022000 2022 2020000 2021 Prior 2020 Revolving 2019 Prior Term Total Revolving Total Commercial and industrial: Pass $ 162,090 $ 745,860 $ 345,908 $ 145,402 $ 53,297 $ 38,696 $ 1,491,253 $ 773,035 $ 2,264,288 Pass/Watch 685 20,343 2,636 2,427 583 3,880 30,554 2,023 32,577 Special Mention 737 15,769 32,256 722 733 2,354 52,571 7,837 60,408 Substandard - Accruing 160 23,793 10,818 4,954 2,343 3,875 45,943 5,145 51,088 Substandard - Nonaccrual — 538 1,884 3,541 — 3,886 9,849 — 9,849 Doubtful — — 561 — — — 561 — 561 Total commercial and industrial $ 163,672 $ 806,303 $ 394,063 $ 157,046 $ 56,956 $ 52,691 $ 1,630,731 $ 788,040 $ 2,418,771 Gross charge-offs $ — $ 59 $ — $ — $ — $ — $ 59 $ — $ 59 Commercial real estate: Non-owner occupied: Pass $ 6,913 $ 152,332 $ 118,258 $ 119,163 $ 94,647 $ 141,349 $ 632,662 $ 32,571 $ 665,233 Pass/Watch — — — — — 29,709 29,709 — 29,709 Special Mention — — — — — 7 7 — 7 Substandard - Accruing — — 2,924 — — 9,966 12,890 — 12,890 Substandard - Nonaccrual — — — — 104 2,034 2,138 — 2,138 Total non-owner occupied $ 6,913 $ 152,332 $ 121,182 $ 119,163 $ 94,751 $ 183,065 $ 677,406 $ 32,571 $ 709,977 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied: Pass $ 37,799 $ 115,829 $ 149,207 $ 108,364 $ 62,745 $ 118,859 $ 592,803 $ 11,275 $ 604,078 Pass/Watch 1,378 204 — 1,445 1,465 8,076 12,568 1,650 14,218 Special Mention — — 2,291 2,019 1,850 3,918 10,078 — 10,078 Substandard - Accruing — — 3,858 7,123 8,951 6,874 26,806 — 26,806 Substandard - Nonaccrual — — — — — 4,819 4,819 — 4,819 Total owner occupied $ 39,177 $ 116,033 $ 155,356 $ 118,951 $ 75,011 $ 142,546 $ 647,074 $ 12,925 $ 659,999 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land: Pass $ 17,522 $ 103,650 $ 94,855 $ 35,459 $ 13,094 $ 6,470 $ 271,050 $ 46,301 $ 317,351 Pass/Watch — — 1,420 — — 18 1,438 — 1,438 Special Mention — 582 — 624 — — 1,206 — 1,206 Substandard - Nonaccrual — — — 198 — — 198 — 198 Total construction & land $ 17,522 $ 104,232 $ 96,275 $ 36,281 $ 13,094 $ 6,488 $ 273,892 $ 46,301 $ 320,193 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily: Pass $ 4,091 $ 36,768 $ 36,561 $ 13,134 $ 6,139 $ 1,503 $ 98,196 $ 5,571 $ 103,767 Total multifamily $ 4,091 $ 36,768 $ 36,561 $ 13,134 $ 6,139 $ 1,503 $ 98,196 $ 5,571 $ 103,767 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 2023 2022000 2022 2020000 2021 Prior 2020 Revolving 2019 Prior Term Total Revolving Total Total commercial real estate: Pass $ 66,325 $ 408,579 $ 398,881 $ 276,120 $ 176,625 $ 268,181 $ 1,594,711 $ 95,718 $ 1,690,429 Pass/Watch 1,378 204 1,420 1,445 1,465 37,803 43,715 1,650 45,365 Special Mention — 582 2,291 2,643 1,850 3,925 11,291 — 11,291 Substandard - Accruing — — 6,782 7,123 8,951 16,840 39,696 — 39,696 Substandard - Nonaccrual — — — 198 104 6,853 7,155 — 7,155 Total commercial real estate: $ 67,703 $ 409,365 $ 409,374 $ 287,529 $ 188,995 $ 333,602 $ 1,696,568 $ 97,368 $ 1,793,936 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 39,960 $ 573,226 $ 104,686 $ 47,425 $ 44,940 $ 176,588 $ 986,825 $ 39,979 $ 1,026,804 Pass/Watch — 1,573 69 — 567 3,250 5,459 — 5,459 Special Mention — — — — 259 1,508 1,767 — 1,767 Substandard - Accruing — — — — — 132 132 — 132 Substandard - Nonaccrual — 2,983 11 721 2,449 5,683 11,847 38 11,885 Total residential real estate $ 39,960 $ 577,782 $ 104,766 $ 48,146 $ 48,215 $ 187,161 $ 1,006,030 $ 40,017 $ 1,046,047 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Public Finance: Pass $ 16,839 $ 12,488 $ 44,299 $ 169,871 $ 213,739 $ 140,614 $ 597,850 $ — $ 597,850 Total public finance $ 16,839 $ 12,488 $ 44,299 $ 169,871 $ 213,739 $ 140,614 $ 597,850 $ — $ 597,850 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 764 $ 3,661 $ 6,606 $ 10,938 $ 4,265 $ 3,391 $ 29,625 $ 10,261 $ 39,886 Pass/Watch — 68 171 105 198 227 769 50 819 Special Mention — — — 10 — — 10 — 10 Substandard - Accruing 7 — — 15 — — 22 1 23 Substandard - Nonaccrual — — — — 66 — 66 2 68 Total consumer $ 771 $ 3,729 $ 6,777 $ 11,068 $ 4,529 $ 3,618 $ 30,492 $ 10,314 $ 40,806 Gross charge-offs $ — $ — $ 11 $ 1 $ 3 $ 17 $ 32 $ 32 $ 64 Other: Pass $ 9 $ 13,550 $ 14,587 $ 3,184 $ 3,166 $ 10,469 $ 44,965 $ 109,537 $ 154,502 Pass/Watch — — 2,696 — — — 2,696 — 2,696 Substandard - Accruing — — 5,900 — — — 5,900 — 5,900 Substandard - Nonaccrual — — 467 — — — 467 — 467 Total other $ 9 $ 13,550 $ 23,650 $ 3,184 $ 3,166 $ 10,469 $ 54,028 $ 109,537 $ 163,565 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 285,987 $ 1,757,364 $ 914,967 $ 652,940 $ 496,032 $ 637,939 $ 4,745,229 $ 1,028,530 $ 5,773,759 Pass/Watch 2,063 22,188 6,992 3,977 2,813 45,160 83,193 3,723 86,916 Special Mention 737 16,351 34,547 3,375 2,842 7,787 65,639 7,837 73,476 Substandard - Accruing 167 23,793 23,500 12,092 11,294 20,847 91,693 5,146 96,839 Substandard - Nonaccrual — 3,521 2,362 4,460 2,619 16,422 29,384 40 29,424 Doubtful — — 561 — — — 561 — 561 Total loans $ 288,954 $ 1,823,217 $ 982,929 $ 676,844 $ 515,600 $ 728,155 $ 5,015,699 $ 1,045,276 $ 6,060,975 Gross charge-offs $ — $ 59 $ 11 $ 1 $ 3 $ 17 $ 91 $ 32 $ 123 The following table presents the credit risk profile of our loan portfolio based on our rating categories as of December 31, 2022, which is prior to the adoption of ASU 2016-13 on January 1, 2023 and continue to be reported under ASC 310, Receivables . For a description of these risk ratings, please see our 2022 Annual Report. Amounts are presented at unpaid principal balance. Non-Classified Classified Total Commercial and industrial $ 2,969,786 $ 55,288 $ 3,025,074 Commercial real estate 1,715,415 37,945 1,753,360 Residential real estate 1,096,108 10,685 1,106,793 Consumer 43,592 114 43,706 Total loans $ 5,824,901 $ 104,032 $ 5,928,933 The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of: Collateral Dependent Loans Collateral Dependent Loans Total Collateral Dependent Loans Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial & industrial $ 4,027 $ 2,215 $ 6,383 $ 10,410 $ 2,215 Commercial real estate: Non-owner occupied 104 30 2,033 2,137 30 Owner occupied 612 186 4,208 4,820 186 Construction and land — — 198 198 — Total commercial real estate 716 216 6,439 7,155 216 Residential real estate 1,196 41 10,689 11,885 41 Consumer 68 68 — 68 68 Other — — 467 467 — Total loans $ 6,007 $ 2,540 $ 23,978 $ 29,985 $ 2,540 December 31, 2022 Commercial & industrial $ 6,330 $ 1,101 $ 3,164 $ 9,494 $ 1,101 Commercial real estate: Non-owner occupied 115 36 2,033 2,148 36 Owner occupied 681 153 5,256 5,937 153 Construction and land — — 198 198 — Total commercial real estate 796 189 7,487 8,283 189 Residential real estate 836 34 9,779 10,615 34 Consumer 91 88 — 91 88 Other — — 475 475 — Total loans $ 8,053 $ 1,412 $ 20,905 $ 28,958 $ 1,412 The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models. Loan Modifications Made to Borrowers Experiencing Financial Difficulty: The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a PD/LGD model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, the Company may allow a loan to go interest only for a specified period of time. During the three months ended March 31, 2023 and 2022, no loans received a material modification based on borrower financial difficulty. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights We have investments in mortgage servicing rights (“MSRs”) that result from the sale of loans to the secondary market for which we retain the servicing. We account for these MSRs at their fair value. A primary risk associated with MSRs is the potential reduction in fair value as a result of higher than anticipated prepayments due to loan refinancing prompted, in part, by declining interest rates or government intervention. Conversely, these assets generally increase in value in a rising interest rate environment to the extent that prepayments are slower than anticipated. We utilize derivatives as economic hedges to offset changes in the fair value of the MSRs resulting from the actual or anticipated changes in prepayments stemming from changing interest rate environments. The unpaid principal loan balance of our servicing portfolio is presented in the following table as of: March 31, December 31, 2022 Federal National Mortgage Association $ 2,512,584 $ 2,517,434 Federal Home Loan Mortgage Corporation 1,645,733 1,630,403 Government National Mortgage Association 959,565 916,455 Federal Home Loan Bank 109,851 111,699 Other 1,320 1,413 Total $ 5,229,053 $ 5,177,404 The activity of MSRs carried at fair value is as follows: For the three months ended March 31, 2023 2022 Balance, beginning of period $ 74,097 $ 47,392 Additions: Servicing resulting from transfers of financial assets 2,047 4,524 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (1,168) 10,823 Changes in fair value due to pay-offs, pay-downs, and runoff (1,552) (2,258) Balance, end of period $ 73,424 $ 60,481 The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of: March 31, December 31, March 31, Discount rate 9.87 % 9.85 % 9.24 % Total prepayment speeds 7.66 % 7.40 % 8.51 % Cost of servicing each loan $88/per loan $88/per loan $86/per loan Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table: For the three months ended March 31, 2023 2022 Servicing fees $ 3,622 $ 3,219 Late and ancillary fees 185 89 Total $ 3,807 $ 3,308 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Banking Derivative Financial Instruments : We use fair value hedges to seek to manage our exposure to changes in the fair value of certain recognized assets attributable to changes in a benchmark interest rate, such as SOFR. The fair value hedges were determined to be effective during all periods presented and we expect the hedges to remain effective during their remaining terms. Derivatives not designated as hedges are not speculative and result from a service we provide to certain customers. We execute interest rate swaps with banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by derivatives that we execute with a third party, such that we minimize our net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Derivative instruments are measured at fair value and recorded as a component of prepaid expenses and other assets and accrued expenses and other liabilities. The components of our banking derivative financial instruments consisted of the following as of: Number of Expiration Outstanding Estimated March 31, 2023 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 201,369 $ 12,073 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 44 2024-2037 $ 387,326 $ 20,325 Other 1 2025 $ 14,638 $ 28 Liabilities: Interest Rate Products 44 2024-2037 $ 387,326 $ 20,277 December 31, 2022 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 201,906 $ 15,636 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 41 2024-2037 $ 338,770 $ 24,615 Other 1 2025 $ 14,638 $ — Liabilities: Interest Rate Products 41 2024-2037 $ 338,770 $ 24,242 We recorded gains and losses on banking derivative assets and liabilities as follows: For the three months ended March 31, 2023 2022 Recorded (loss) gain on banking derivative assets $ (2,560) $ 9,809 Recorded gain (loss) on banking derivative liabilities $ 2,256 $ (9,364) For the three months ended March 31, 2023 and 2022, our banking derivative financial instruments not designated as hedging instruments generated fee income of $466 and $13, respectively. The carrying amount of hedged loans receivable as of March 31, 2023 and December 31, 2022 was $184,541 and $181,377, respectively. The cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged loans receivable as of March 31, 2023 and December 31, 2022 was $(10,100) and $(12,752), respectively. The carrying amount of hedged securities available-for-sale as of March 31, 2023 and December 31, 2022 was $36,940 and $35,869, respectively. The cumulative amount of fair value hedging adjustment, net of tax included in other comprehensive income (loss) as of March 31, 2023 and December 31, 2022 was $(684), and $2,174, respectively. Credit-risk-related Contingent Features : We have agreements with each of our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. We also have agreements with our derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized institution, then our derivative counterparties have the right but not the obligation to terminate existing swaps. As of March 31, 2023 and December 31, 2022, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $20,768 and $24,677, respectively. As of March 31, 2023 and December 31, 2022, we have minimum collateral posting thresholds with our derivative counterparties and have posted collateral of $7,840 and $8,790, respectively. If we had breached any of these provisions at March 31, 2023, we could have been required to settle our obligations under the agreements at their termination value of $20,768. Mortgage Banking Derivative Financial Instruments : The components of our mortgage banking derivative financial instruments consisted of the following as of: Expiration Outstanding Estimated March 31, 2023 Derivative financial instruments Assets: Forward MBS trades 2023 $ 45,300 $ 1,225 Liabilities: Forward MBS trades 2023 $ 103,000 $ 976 Interest rate lock commitments (IRLC) 2023 $ 79,234 $ (417) December 31, 2022 Derivative financial instruments Assets: Forward MBS trades 2023 $ 85,000 $ 36 Liabilities: Forward MBS trades 2023 $ 21,800 $ 225 Interest rate lock commitments (IRLC) 2023 $ 52,533 $ 60 We recorded gains and losses on mortgage banking derivative assets and liabilities as follows: For the three months ended March 31, 2023 2022 Recorded gain on mortgage banking derivative assets $ 850 $ 5,477 Recorded loss on mortgage banking derivative liabilities $ (535) $ (12,576) |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Statistical Disclosure for Banks [Abstract] | |
Deposits | Deposits The composition of our deposits is as follows as of: March 31, December 31, Noninterest-bearing demand deposit accounts $ 1,764,440 $ 1,820,490 Interest-bearing deposit accounts: Interest-bearing demand accounts 238,658 212,357 Savings accounts and money market accounts 2,705,315 2,759,969 NOW accounts 45,192 50,224 Certificate of deposit accounts: Less than $100 260,865 241,322 $100 through $250 294,787 270,790 Greater than $250 685,009 409,910 Total interest-bearing deposit accounts 4,229,826 3,944,572 Total deposits $ 5,994,266 $ 5,765,062 The following table summarizes the interest expense incurred on our deposits: For the three months ended March 31, 2023 2022 Interest-bearing deposit accounts: Interest-bearing demand accounts $ 1,175 $ 94 Savings accounts and money market accounts 5,513 931 NOW accounts 59 30 Certificate of deposit accounts 7,432 519 Total interest-bearing deposit accounts $ 14,179 $ 1,574 The remaining maturity on certificate of deposit accounts is as follows as of: March 31, Remainder of 2023 $ 769,272 2024 345,185 2025 107,777 2026 10,476 2027 4,321 2028 711 Thereafter 2,919 Total certificate of deposit accounts $ 1,240,661 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2023 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned [Abstract] | |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Information concerning securities sold under agreements to repurchase is as follows as of and for the periods ended: March 31, December 31, Amount outstanding at period-end $ 31,645 $ 36,721 Average daily balance during the period $ 29,672 $ 54,335 Average interest rate during the period 0.52 % 0.27 % Maximum month-end balance during the period $ 31,645 $ 70,838 Weighted average interest rate at period-end 0.62 % 0.42 % At March 31, 2023 and December 31, 2022, such agreements were secured by investment and mortgage-related securities with an approximate carrying amount of $41,629 and $48,931, respectively. Pledged securities are maintained by safekeeping agents at the direction of the Bank. Our agreements to repurchase generally mature daily, and are considered to be in an overnight and continuous position. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt FHLB advances : The following is a breakdown of our FHLB advances and other borrowings outstanding as of: March 31, 2023 December 31, 2022 Amount Rate Weighted Amount Rate Weighted Variable rate line-of-credit advance $ 577,285 4.99% 4.70% $ 643,885 4.48% 3.91% The advances were collateralized by $1,677,445 and $1,630,939 of loans pledged to the FHLB as collateral as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, the Bank had total borrowing capacity with the FHLB that is based on qualified collateral lending values of $1,203,388 and $1,139,356, respectively. Our additional borrowing availability with the FHLB at March 31, 2023 was $480,369. These borrowings can be in the form of additional term advances or a line-of-credit. FRB advances : We also had a $5,989 line-of-credit with the FRB. The agreement bears interest at the Fed Funds target rate plus 0.50% and is secured by municipal, agency, mortgage-related and corporate securities. The entire line was available at March 31, 2023. Other borrowings : We have lines-of-credit with certain other financial institutions totaling $330,000 as of March 31, 2023. No amounts were drawn on these lines-of-credit during the three months ended March 31, 2023. Convertible Notes Payable : As of March 31, 2023 and December 31, 2022, we have issued a total of $5,456, respectively, of convertible notes with a maturity date of August 31, 2023. The annual interest rate on these convertible notes is 3.29% with quarterly interest payments. With respect to conversion, each $1 (in thousands) principal amount of the convertible notes can be converted to 15.6717 shares of Parent Company common stock at any time until maturity. As of and for the periods ended March 31, 2023 and December 31, 2022, the debt discount on the convertible notes was $63 and $101, respectively. The related accretion for the three months ended March 31, 2023 and 2022 was $38 and $526, respectively. Subordinated Debt : Subordinated Notes - 2020 : In June and August 2020, we issued a total of $40,000 subordinated notes. The notes pay interest at a fixed rate of 6.00% through June 30, 2025 and subsequently, until maturity, pay interest at a floating rate of three month term SOFR plus 5.89%, reset quarterly. Interest is payable on July 1 and January 1 of each year. Such notes are due on July 1, 2030. The notes are not redeemable within the first five years of issuance, except under certain very limited conditions. After five years, we may redeem the notes at our discretion. We incurred and capitalized $933 of costs related to the issuance of the subordinated notes. The amortization associated with the capitalized issuance costs is not significant for the periods presented. Subordinated Note - 2022 : On January 13, 2022, we issued a subordinated note totaling $25,000. The note pays interest at a fixed rate of 3.375% through January 15, 2027 and subsequently, until maturity, pays interest at a floating rate of three month term SOFR plus 2.03%, reset quarterly. Interest is payable on July 15 and January 15 of each year. Such note is due on January 15, 2032. The note is not redeemable within the first five years of issuance, except under certain very limited conditions. After five years, we may redeem the note at our discretion. We incurred and capitalized $534 of costs related to the issuance of the subordinated note in the first quarter of 2022. The amortization associated with the capitalized issuance costs is not significant for the periods presented. Trust preferred securities : We have issued $9,279 in trust preferred securities through a special-purpose trust, New Mexico Banquest Capital Trust I (“NMBCT I”). In addition, we have issued $4,640 in trust preferred securities through a special purpose trust, New Mexico Banquest Capital Trust II (“NMBCT II”, and together with NMBCT I, collectively referred to as “NMBCT Trusts”). Interest is payable quarterly at a rate of three-month LIBOR plus 3.35% (8.08% and 3.57% as of March 31, 2023 and 2022, respectively) for the trust preferred securities issued through NMBCT I and at a rate of three-month LIBOR plus 2.00% (6.92% and 2.48% as of March 31, 2023 and 2022, respectively) for the trust preferred securities issued through NMBCT II. This subordinated debt of $13,919 was originally recorded at a discount of $4,293. The accretion associated with the fair value discount is not significant for the periods presented. The Parent Company fully and unconditionally guarantees the obligations of the NMBCT Trusts on a subordinated basis. The trust preferred securities issued through the NMBCT Trusts are mandatorily redeemable upon the maturity of the debentures on December 19, 2032 and November 23, 2034, respectively, and are optionally redeemable, in part or in whole, by the Parent Company at each quarterly interest payment date. The Parent Company owns all of the outstanding common securities of the NMBCT Trusts, which have an aggregate liquidation valuation amount of $419 and is recorded in prepaid expenses and other assets on the consolidated balance sheet. The NMBCT Trusts are considered variable interest entities. Since the Parent Company is not the primary beneficiary of the NMBCT Trusts, the financial statements of the NMBCT Trusts are not included in our consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share, excluding dilution, is computed by dividing earnings available to common stockholders’ by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings. The following table sets forth the computation of basic and diluted earnings per share of common stock: For the three months ended March 31, 2023 2022 Net income applicable to common stockholders $ 26,281 $ 7,669 Weighted Average Shares Weighted average common shares outstanding 24,923,259 18,346,288 Effect of dilutive securities Stock-based awards 564,323 553,564 Convertible notes payable — — Weighted average diluted common shares 25,487,582 18,899,852 Earnings per common share Basic earnings per common share $ 1.05 $ 0.42 Effect of dilutive securities Stock-based awards (0.02) (0.01) Diluted earnings per common share $ 1.03 $ 0.41 Convertible notes payable for 85,500 shares of common stock were not considered in computing diluted earnings per share for the three months ended March 31, 2023 and for 160,743 shares of common stock for the three months ended March 31, 2022, respectively, because they were antidilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table sets forth the components in accumulated other comprehensive income (loss): For the three months ended March 31, 2023 2022 Securities available-for-sale: Balance, beginning of period $ (46,157) $ 1,664 Unrealized gain (loss) 3,006 (21,618) Income tax effect (735) 5,286 Net unrealized gain (loss) 2,271 (16,332) Balance, end of period $ (43,886) $ (14,668) Fair value hedges of securities available-for-sale: Balance, beginning of period $ 2,174 $ — Unrealized loss (906) — Income tax effect 222 — Net unrealized loss (684) — Balance, end of period $ 1,490 $ — |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Equity Incentive Plans : We have established the FirstSun Capital Bancorp 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 1,977,292 shares of FirstSun common stock in the aggregate. On October 18, 2021 we established the FirstSun Capital Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 2,476,571 shares of FirstSun common stock in the aggregate. Additionally, we established the FirstSun Capital Bancorp Long-Term Incentive Plan (“LTIP”), which became effective April 1, 2022. The LTIP is intended to qualify as a “top-hat” plan under ERISA that is unfunded and provides benefits only to a select group of management or highly compensated employees of FirstSun or the Bank. The equity component of awards under the LTIP are issued from the 2021 Plan. The following table presents stock options outstanding under the 2017 Plan at March 31, 2023. There were no exercises, grants or forfeitures during the three months ended March 31, 2023: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) March 31, 2023 Outstanding, end of period 1,307,915 $ 20.23 5.01 Options vested or expected to vest 1,307,915 $ 20.23 Options exercisable, end of period 1,191,032 $ 20.11 4.93 At March 31, 2023, there was $481 of total unrecognized compensation cost related to non-vested stock options granted under the 2017 Plan. The unrecognized compensation cost at March 31, 2023 is expected to be recognized over the following two years. At March 31, 2023 and December 31, 2022, the intrinsic value of the stock options was $15,148 and $21,216, respectively. In May 2022, we issued 11,344 shares of restricted stock from the 2021 Plan that will fully vest in May 2023. At March 31, 2023, there was $34 of total unrecognized compensation cost related to the non-vested restricted stock. In May 2022, we issued performance-based restricted stock under the LTIP that, subject to the achievement of performance conditions, will fully vest in April 2025. At March 31, 2023, we determined it is probable that 69,261 shares will be issued based upon the probability that the performance conditions will be achieved. At March 31, 2023, there was $1,647 of total unrecognized compensation cost related to the non-vested restricted stock granted under the 2021 Plan. For the three months ended March 31, 2023 and 2022, we recorded total compensation cost from the 2017 and 2021 Plans of $426 and $166, respectively. In conjunction with the Pioneer Merger, we assumed certain options that had been granted under Pioneer’s option plans. All assumed options were fully vested and exercisable. No further options will be granted under the Pioneer plans. Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) March 31, 2023 Outstanding, beginning of period 170,711 $ 23.19 Options assumed from Pioneer Bancshares, Inc. — — Exercised (4,959) 18.55 Forfeited (261) 19.16 Outstanding, vested, and exercisable, end of period 165,491 $ 23.34 4.69 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes in interim periods requires us to make a best estimate of the effective tax rate expected to be applicable for the full year, adjusted for any discrete items for the applicable period. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. The provision for income tax is summarized as follows: For the three months ended March 31, 2023 2022 Provision for income taxes $ 7,141 $ 1,142 Effective tax provision rate 21.4 % 13.0 % We do not believe that we have any material uncertain tax positions, and do not expect any material changes during the next twelve months. |
Regulatory Capital Matters
Regulatory Capital Matters | 3 Months Ended |
Mar. 31, 2023 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Regulatory Capital Matters | Regulatory Capital Matters 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 the Basel III rules, the Parent Company and the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The fully phased in capital conservation buffer is 2.50% for all periods presented. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of March 31, 2023, both the Parent Company and the Bank met all capital adequacy requirements to which they were subject. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of March 31, 2023 and December 31, 2022, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. Actual and required capital amounts for the Parent Company are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total risk-based capital to risk-weighted assets: $ 862,407 12.19 % $ 565,761 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 714,707 10.11 % $ 424,321 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 714,707 10.11 % $ 318,241 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 714,707 9.86 % $ 289,804 4.00 % N/A N/A December 31, 2022 Total risk-based capital to risk-weighted assets: $ 829,712 11.99 % $ 553,440 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 687,602 9.94 % $ 415,080 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 687,602 9.94 % $ 311,310 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 687,602 9.71 % $ 283,353 4.00 % N/A N/A Actual and required capital amounts for the Bank are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total risk-based capital to risk-weighted assets: $ 829,861 11.77 % $ 564,000 8.00 % $ 705,000 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 757,141 10.74 % $ 423,000 6.00 % $ 564,000 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 757,141 10.74 % $ 317,250 4.50 % $ 458,250 6.50 % Tier 1 leverage capital to average assets: $ 757,141 10.46 % $ 289,673 4.00 % $ 362,091 5.00 % December 31, 2022 Total risk-based capital to risk-weighted assets: $ 815,335 11.81 % $ 552,237 8.00 % $ 690,296 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 748,105 10.84 % $ 414,177 6.00 % $ 552,237 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 748,105 10.84 % $ 310,633 4.50 % $ 448,692 6.50 % Tier 1 leverage capital to average assets: $ 748,105 10.56 % $ 283,245 4.00 % $ 354,056 5.00 % |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management’s judgement assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgement and the resulting estimates of fair value can be significantly affected by the assumptions made and the methods used. ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists. The three levels of inputs that may be used to measure fair value are as follows: Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 : Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of: Level 1 Level 2 Level 3 Quoted prices Significant Significant Total March 31, 2023 Available-for-sale securities $ 57,369 $ 475,281 $ — $ 532,650 Loans held-for-sale — 66,255 — 66,255 Mortgage servicing rights — — 73,424 73,424 Derivative financial instruments - assets — 33,651 — 33,651 Derivative financial instruments - liabilities — (20,836) — (20,836) Total $ 57,369 $ 554,351 $ 73,424 $ 685,144 December 31, 2022 Available-for-sale securities $ 56,649 $ 480,324 $ — $ 536,973 Loans held-for-sale — 57,323 — 57,323 Mortgage servicing rights — — 74,097 74,097 Derivative financial instruments - assets — 40,287 — 40,287 Derivative financial instruments - liabilities — (24,527) — (24,527) Total $ 56,649 $ 553,407 $ 74,097 $ 684,153 For further details on our level 3 inputs related to MSRs, see Note 5 - Mortgage Servicing Rights . The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis: For the three months ended March 31, 2023 2022 Balance, beginning of period $ 74,097 $ 47,392 Total (losses) gains included in earnings (2,720) 8,565 Purchases, issuances, sales and settlements: Issuances 2,047 4,524 Balance, end of period $ 73,424 $ 60,481 Certain financial assets and financial liabilities are regularly measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the reported periods include certain collateral dependent loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and other real estate owned and foreclosed assets, which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses, and subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of: Level 3 March 31, December 31, Collateral dependent loans: Commercial and industrial $ 1,812 $ 5,229 Commercial real estate 500 607 Residential real estate 1,155 802 Consumer — 3 Other — — Total collateral dependent loans $ 3,467 $ 6,641 Other real estate owned and foreclosed assets, net: Commercial real estate $ 5,391 $ 5,391 Residential real estate 967 967 Total other real estate owned and foreclosed assets, net: $ 6,358 $ 6,358 The fair value of the financial assets in the table above utilize the market approach valuation technique, with discount adjustments for differences between comparable sales. Fair value of financial instruments not carried at fair value: The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of: Estimated Fair Value Carrying Total Level 1 Level 2 Level 3 March 31, 2023 Assets: Cash and cash equivalents $ 388,349 $ 388,349 $ 388,349 $ — $ — Securities held-to-maturity 38,470 33,502 — 33,502 — Loans (excluding collateral dependent loans at fair value) 6,057,508 5,932,738 — — 5,932,738 Restricted equity securities 46,747 46,747 — 46,747 — Accrued interest receivable 28,725 28,725 — 2,059 26,666 Liabilities: Deposits (excluding demand deposits) $ 3,991,168 $ 3,965,964 $ — $ 3,965,964 $ — Securities sold under agreements to repurchase 31,645 31,645 — 31,645 — FHLB advances 577,285 577,285 — 577,285 — Convertible notes payable, net 5,393 5,330 — 5,330 — Subordinated debt, net 74,980 72,547 — 72,547 — Accrued interest payable 9,610 9,610 — 9,610 — December 31, 2022 Assets: Cash and cash equivalents $ 343,526 $ 343,526 $ 343,526 $ — $ — Securities held-to-maturity 38,901 33,218 — 33,218 — Loans (excluding impaired loans) 5,871,274 5,756,197 — — 5,756,197 Restricted equity securities 50,215 50,215 — 50,215 — Accrued interest receivable 28,543 28,543 — 2,049 26,494 Liabilities: Deposits (excluding demand deposits) $ 3,732,215 $ 3,696,438 $ — $ 3,696,438 $ — Securities sold under agreements to repurchase 36,721 36,721 — 36,721 — FHLB advances 643,885 643,885 — 643,885 — Convertible notes payable, net 5,355 5,329 — 5,329 — Subordinated debt, net 74,880 71,618 — 71,618 — Accrued interest payable 5,798 5,798 — 5,798 — |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationOur operations are conducted through two operating segments: Banking and Mortgage Operations. Corporate represents costs not allocated to the operating segments. Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses are incurred for which discrete financial information is available that is evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. Operating segments have been determined based on the products and services offered and reflect the manner in which financial information is currently evaluated by management. Each segment operates under the same banking charter, but is reported on a segmented basis for this report. Each of the operating segments is complementary to each other and because of the interrelationship of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The Banking segment originates loans and provides deposits and fee based services to consumer, business, and mortgage lending customers. Products offered include a full range of commercial and consumer banking and financial services. The interest income on loans held-for-investment is recognized in the Banking segment, excluding newly originated residential first mortgages within the Mortgage Operations segment. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. The Mortgage Operations segment recognizes interest income on loans that are held-for-sale and newly originated residential mortgages held-for-investment, the gains from one to four family residential mortgage sales, and revenue for servicing loans and other ancillary fees following a sales transaction. Revenue from servicing activities is earned on a contractual fee basis. The Mortgage Operations segment services loans for the held-for-investment portfolio, for which it earns revenue via an intercompany service fee allocation which appears as a cost to Banking in mortgage fees. Forward traded loan purchases and sales settlements as well as mortgage servicing rights and related fair value adjustments are reported in this segment. Corporate represents miscellaneous other expenses of a corporate nature as well as revenue and expenses not directly assigned or allocated to the Banking or Mortgage Operations segments. The majority of executive management’s time is spent managing operating segments; related costs have been allocated between the operating segments and Corporate. Revenues are comprised of net interest income before the provision (benefit) for credit losses and noninterest income. Noninterest expenses are allocated to each operating segment. Provision for credit losses is primarily allocated to the Banking segment. Allocation methodologies may be subject to periodic adjustment as management systems evolve and/or the business or product lines within the segments change. Significant segment totals are reconciled to the financial statements as follows for the three months ended March 31,: Banking Mortgage Operations Corporate Total Segments 2023 Summary of Operations Net interest income $ 73,486 $ 1,882 $ (1,251) $ 74,117 Provision for credit losses 2,414 946 — 3,360 Noninterest income: Service charges on deposit accounts 5,015 — — 5,015 Credit and debit card fees 2,981 — — 2,981 Trust and investment advisory fees 1,461 — — 1,461 Income from mortgage banking services, net (188) 7,617 — 7,429 Other noninterest income 2,045 — — 2,045 Total noninterest income 11,314 7,617 — 18,931 Noninterest expense: Salary and employee benefits 27,784 6,772 493 35,049 Occupancy and equipment 7,424 710 40 8,174 Other noninterest expenses 8,416 3,509 1,118 13,043 Total noninterest expense 43,624 10,991 1,651 56,266 Income (loss) before income taxes $ 38,762 $ (2,438) $ (2,902) $ 33,422 Other Information Depreciation expense $ 1,649 $ 61 $ — $ 1,710 Identifiable assets $ 6,728,396 $ 819,317 $ 62,743 $ 7,610,456 Banking Mortgage Operations Corporate Total Segments 2022 Summary of Operations Net interest income $ 41,283 $ 1,641 $ (1,639) $ 41,285 Provision for (benefit from) credit losses 2,807 893 — 3,700 Noninterest income: Service charges on deposit accounts 3,925 — — 3,925 Credit and debit card fees 2,415 — — 2,415 Trust and investment advisory fees 1,947 — — 1,947 Income from mortgage banking services, net (980) 15,541 — 14,561 Other noninterest income 853 (8) — 845 Total noninterest income 8,160 15,533 — 23,693 Noninterest expense: Salary and employee benefits 22,719 11,414 92 34,225 Occupancy 5,856 977 — 6,833 Other noninterest expenses 7,886 3,172 351 11,409 Total noninterest expense 36,461 15,563 443 52,467 Income (loss) before income taxes $ 10,175 $ 718 $ (2,082) $ 8,811 Other Information Depreciation expense $ 1,311 $ 103 $ — $ 1,414 Identifiable assets $ 5,128,332 $ 553,878 $ 51,538 $ 5,733,748 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments : We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include loan commitments, standby letters of credit, and documentary letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss in the event of nonperformance by the other party of these loan commitments and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet financial instruments. Undistributed portion of committed loans and unused lines of credit : Loan commitments are agreements to lend to a customer as long as there is no customer violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. As of March 31, 2023 and December 31, 2022, commitments included the funding of fixed-rate loans totaling $230,792 and $218,309 and variable-rate loans totaling $1,787,296 and $1,727,246, respectively. The fixed-rate loan commitments have interest rates ranging from 1.00% to 18.00% at March 31, 2023 and December 31, 2022, and maturities ranging from 1 month to 30 years at March 31, 2023 and from 1 month to 15 years at December 31, 2022. Standby letters of credit : Standby letters of credit are conditional commitments to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Since many of the loan commitments and letters of credit expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on our credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner occupied real estate, and/or income-producing commercial properties. As of March 31, 2023 and December 31, 2022, our standby letters of credit commitment totaled $16,614 and $17,426, respectively. MPF Master Commitments : The Bank has previously executed MPF Master Commitments (Commitments) with the FHLB to deliver mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB’s first loss account for mortgages delivered under the Commitments. The Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to manage the credit risk of the MPF Program mortgage loans. As of March 31, 2023 and December 31, 2022, the Bank considered the amount of any of its liability for the present value of the credit enhancement fees less any expected losses in the mortgages delivered under the Commitments to be immaterial, and has not recorded a liability and offsetting receivable. As of March 31, 2023 and December 31, 2022, the maximum potential amount of future payments that the Bank would have been required to make under the Commitments was $3,860, respectively. Under the Commitments, the Bank agrees to service the loans and therefore, is responsible for any necessary foreclosure proceedings. Any future recoveries on any losses would not be paid by the FHLB under the Commitments. The Bank has not experienced any material losses under these guarantees. Contingencies : We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. We establish reserves for potential losses related to these representations and warranties if deemed appropriate and such reserves would be recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserve, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. From time to time, we are a defendant in various claims, legal actions, and complaints arising in the ordinary course of business. We periodically review all outstanding pending or threatened legal proceedings and determine if such matters will have an adverse effect on our business, financial condition, results of operations or cash flows. Overdraft Fee Litigation : On September 13, 2021, Samantha Besser filed a putative class action amended complaint against the Bank in the United States District Court for the District of Colorado. The amended complaint alleges that the Bank improperly charged multiple insufficient funds or overdraft fees when a merchant resubmits a rejected payment request. The complaint asserts claims for breach of contract, which incorporates the implied duty of good faith and fair dealing. Plaintiff seeks to represent a proposed class of all the Bank’s checking account customers who were charged multiple insufficient funds or overdraft fees on resubmitted payment requests. Plaintiff seeks unspecified restitution, actual and statutory damages, costs, attorneys’ fees, pre-judgment interest, and other relief as the Court deems proper for herself and the purported class. On September 27, 2021, the Bank filed a motion to dismiss the amended complaint. The motion to dismiss has been fully pled and is before the Court for decision. The Bank believes that the lawsuit is without merit, and it intends to vigorously defend against all claims asserted. At this time, the Bank is unable to reasonably estimate the outcome of this litigation. Wire Transfer Litigation : On November 5, 2021, urban-gro, Inc. (“UGI”) filed a complaint against the Bank in the Boulder County, Colorado District Court. The complaint alleged that the Bank failed to follow contractual, internal, and industry-standard procedures with respect to six wire transfers, totaling approximately $5.1 million, from UGI’s deposit account at the Bank to domestic third-party beneficiaries. The Bank denied UGI’s claims and filed various counterclaims against UGI, including negligence. On March 27, 2023, the Bank and UGI consummated a Settlement and Release agreement, which resulted in the March 29, 2023 dismissal of all claims that were, or could have been, raised by the parties in the lawsuit resulting in no material impact to the Bank. Check Fraud Litigation : Rodeo Electrical Services, Inc. and its owner, Scott Rosenberg (collectively, “RESI”), filed a civil action against the Bank on June 23, 2020 in the Santa Fe County, New Mexico District Court. RESI, a former bank deposit customer, also named two of its former employees, Charity and Mathew Felch as co-defendants. Mr. and Mrs. Felch were at all times relevant also bank deposit customers. The Complaint alleges the bank conspired with or otherwise aided Charity Felch’s embezzlement of approximately $400,000 during her tenure at RESI. The complaint seeks compensatory, exemplary, statutory, and punitive damages, as well as payment of RESI’s legal fees and expenses. The Bank’s position is that RESI’s claims against the Bank are legally barred by their failure to timely notify the Bank of transaction activity associated with the embezzlement scheme. The case was scheduled for jury trial starting on May 22, 2023. On May 5, 2023, the Bank first learned that: 1) its outside legal counsel had failed to notify the Bank of, and respond to, outstanding discovery requests propounded by RESI; 2) the Court had imposed prior discovery abuse sanctions upon the Bank in the amount of $10,000 per day; and 3) the Court imposed further discovery abuse sanctions in the form of default judgment, as to liability, against the Bank on RESI’s claims, which the Bank estimates to be at least $400,000. The Court further ordered that a trial on the issue of damages will need to be set. The Bank has engaged successor outside legal counsel to defend its interests. The Bank is currently unable to otherwise reasonably estimate the final outcome of this litigation. We establish reserves for contingencies, including legal proceedings, when potential losses become probable and can be reasonably estimated. While the ultimate resolution of any legal proceedings, including the matters described above, cannot be determined at this time, based on information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in these above legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our financial statements. It is possible, however, that future developments could result in an unfavorable outcome for or resolution of any of these proceedings, which may be material to our results of operations for a given fiscal period. |
Lease Commitments
Lease Commitments | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments Our leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 15 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. For leases existing during transition from ASC 840 to ASC 842 at January 1, 2022, extension options were not considered in the remaining lease term. 2023 ROU asset on leased property, gross $ 35,576 Accumulated amortization (7,923) ROU asset, net (included in Prepaid expenses and other assets in our consolidated balance sheets) $ 27,653 Lease liability (Included in Accrued expenses and other liabilities in our consolidated balance sheets) $ 30,400 The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of March 31, 2023: Remainder of 2023 $ 7,590 2024 6,835 2025 5,479 2026 3,587 2027 2,349 2028 5,861 Thereafter 460 Total undiscounted operating lease liability 32,161 Imputed interest 1,761 Total operating lease liability included in the accompanying balance sheet $ 30,400 Weighted Average Remaining Life - Operating Leases 5.73 Weighted Average Rate - Operating Leases 1.89 % Total lease expense for the three months ended March 31, 2023, and 2022 was $1,898 and $1,770, respectively. The components of total lease expense was as follows for the three months ended March 31, 2023: Operating leases $ 1,869 Short-term leases 46 Sublease income (17) Net lease expense $ 1,898 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company” and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank”) and Logia Portfolio Management, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”. These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun’s audited consolidated financial statements and footnotes thereto for the year ended December 31, 2022, included in the 2022 Annual Report. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. |
Risks and Uncertainties | In the normal course of business, companies in the banking and mortgage industries encounter certain economic and regulatory risks. Economic risks include credit risk, interest rate risk, liquidity risk, prepayment risk, and market risk. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments. We are subject to interest rate risk to the extent that in a rising interest rate environment we may experience a decrease in loan production, as well as decreases in the value of mortgage loans held-for-sale and in commitments to originate loans, which may adversely impact our earnings. Risks related to liquidity are heightened in the current environment due to competition for deposits and recent bank failures in early 2023.We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, or there are early payment defaults, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay off within a specified time frame, we may be required to refund a portion of the sales proceeds to the investors. We established reserves for potential losses related to these representations and warranties which are recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserves, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. |
Reclassifications | Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders' equity as previously reported. |
Accounting Pronouncements Recently Adopted and Updates to our Significant Accounting Policies | As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards. In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which significantly changes the way that entities are required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach previously required. The new approach requires entities to measure all expected credit losses for financial assets over their expected lives based on historical experience, current conditions, and reasonable and supportable forecasts of collectability. The expected credit loss model requires earlier recognition of credit losses than the incurred loss approach. We expect ongoing changes in the allowance for credit losses will be driven primarily by the growth of our loan portfolio, credit quality, and the economic environment and related projections at that time. In addition, the ASU developed a new accounting treatment for purchased financial assets with credit deterioration. The ASU also modifies the other-than-temporary impairment model for available-for-sale debt securities and held-to-maturity debt securities by requiring companies to record an allowance for credit impairment rather than write-downs of such assets. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-13. We adopted the amendments of these ASUs as of January 1, 2023. Upon adoption, we recorded an increase to the allowance for credit losses on loans held-for-investment of $5.3 million, a reduction in the allowance for credit losses on unfunded commitments of $0.2 million, an increase to deferred tax assets of $1.2 million, and a corresponding one-time cumulative reduction to retained earnings, net of tax, of $3.8 million in the consolidated balance sheet as of January 1, 2023. The adoption of this ASU, as it relates to available-for-sale debt securities and held-to-maturity debt securities, did not have a material impact on the consolidated financial statements as of January 1, 2023. In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. We adopted the amendments in this ASU as of January 1, 2023 prospectively. As a result of the adoption of ASU 2016-13 and ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023. |
Securities | The Bank classifies debt securities as either available-for-sale or held-to-maturity. Held-to-maturity securities are those which the Bank has the positive intent and ability to hold to maturity. All other debt securities are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost. Available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity (accumulated other comprehensive income/loss) until realized. Realized gains and losses on securities classified as available-for-sale are included in earnings and recorded on trade date. The specific identification method is used to determine the cost of the securities sold. Purchased premiums and discounts on debt securities are amortized or accreted into interest income using the yield-to-maturity method based upon the remaining contractual maturity of the asset, adjusted for any expected prepayments or call features for securities purchased at a premium. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. Any previously recognized allowance for credit losses (“ACL”) should be written off and the write-down in excess of such ACL would be recorded through a charge to the provision for credit losses. For available-for-sale debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the cash position of the issuer and its cash and capital generation capacity, which could increase or diminish the issuer’s ability to repay its bond obligations, the extent to which the fair value is less than the amortized cost basis, any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information about the financial condition of the issuer, credit ratings, the failure of the issuer to make scheduled principal or interest payments, recent legislation and government actions affecting the issuer’s industry, and actions taken by the issuer to deal with the economic climate. Management also takes into consideration changes in the near-term prospects of the underlying collateral of a security, if any, such as changes in default rates, loss severity given default, and significant changes in prepayment assumptions and the level of cash flow generated from the underlying collateral, if any, supporting the principal and interest payments on the debt securities. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and management records an ACL for the credit loss, limited to the amount by which the fair value is less than the amortized cost basis. Management recognizes in accumulated other comprehensive income (“AOCI”) any impairment that has not been recorded through an ACL, net of tax. Non-credit-related impairments result from other factors, including changes in interest rates. Management records changes in the ACL as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management has elected not to measure an ACL on accrued interest related to available-for-sale debt securities, as uncollectible accrued interest receivables are written off on a timely manner. The ACL on held-to-maturity debt securities is based on an expected loss methodology referred to as current expected credit loss (“CECL”) methodology by major security type. Any expected credit loss is provided through the ACL on held-to-maturity debt securities and is deducted from the amortized cost basis of the security so the statement of financial condition reflects the net amount management expects to collect. For the ACL of held-to-maturity securities, management considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has elected not to measure an ACL on accrued interest related to held-to-maturity debt securities, as uncollectible accrued interest receivables are written off on a timely manner. Equity securities are carried at fair value, with changes in fair values reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. Equity securities are included as a component of “prepaid expenses and other assets” in our consolidated balance sheets. |
Loans Receivable | Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for credit losses. Interests on loans receivable is accrued and credited to income based upon the principal amount outstanding using primarily a simple interest calculation. Loan origination fees and related direct loan origination costs for a given loan are offset and only the net amount is deferred and amortized and recognized in interest income over the life of the loan using the interest method without anticipating prepayments. The accrual of interest income on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business, and a loan is moved to nonaccrual status in accordance with the Bank’s policy, typically after 90 or 120 days of non-payment, as follows: interest income on consumer, commercial real estate and commercial and industrial loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in the process of collection; interest income on residential real estate loans is typically discontinued at the time the loan is 120 days delinquent unless the loan is well-secured and in the process of collection. Consumer and credit card loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest in full is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. When discontinued, all unpaid interest is reversed. Interest is included in income after the date the loan is placed on nonaccrual status only after all principal has been paid or when the loan is returned to accrual status. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled. Acquired Loans – Loans acquired through a purchase or a business combination are recorded at their fair value as of the acquisition date. Management performs an assessment of acquired loans to first determine if such loans have experienced a more than insignificant deterioration in credit quality since their origination and thus should be classified and accounted for as purchased credit deteriorated (“PCD”) loans. For loans that have not experienced a more than insignificant deterioration in credit quality since origination, referred to as non-PCD loans, management records such loans at fair value, with any resulting discount or premium accreted or amortized into interest income over the remaining life of the loan using the interest method. Additionally, upon the purchase or acquisition of non-PCD loans, management measures and records an ACL based on the Bank’s methodology for determining the ACL. The ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans are purchased or acquired. Acquired loans that are classified as PCD are recognized at fair value, which includes any premiums or discounts resulting from the difference between the initial amortized cost basis and the par value. Premiums and non-credit loss related discounts are amortized or accreted into interest income over the remaining life of the loan using the interest method. Unlike non-PCD loans, the initial ACL for PCD loans is established through an adjustment to the acquired loan balance and not through a charge to the provision for credit losses in the period in which the loans are acquired. At acquisition, the ACL for PCD loans, which represents the fair value credit discount, is determined using a discounted cash flow method that considers the PDs and LGDs used in the Bank’s ACL methodology. Characteristics of PCD loans include the following: delinquency, payment history since origination, credit scores migration and/or other factors the Bank may become aware of through its initial analysis of acquired loans that may indicate there has been a more than insignificant deterioration in credit quality since a loan’s origination. Subsequent to acquisition, the ACL for both non-PCD and PCD loans is determined pursuant to the Bank ACL methodology in the same manner as all other loans. Management estimates the ACL primarily based on a probability of default (“PD”), loss-given default (“LGD”), and exposure at default (“EAD”) modeled approach, or individually for collateral dependent loans. Management evaluates the need for changes to the ACL by portfolio segments and classes of loans within certain of those portfolio segments. Factors such as the credit risk inherent in a portfolio and how management monitors the related quality, as well as the estimation approach to estimate credit losses, are considered in the determination of such portfolio segments and classes. The Bank believes it has a diversified portfolio across a variety of industries, and the portfolio is generally centered in the states in which the Bank has offices. Management has identified the following portfolio segments: Commercial and industrial loans include commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment and inventory purchases, and other expansion projects. These loans are made primarily in the Bank’s market areas, are underwritten on the basis of the borrower’s ability to service the debt from revenue, and extended under the Bank’s normal credit standards, controls, and monitoring systems. Collateral is often represented by liens on accounts receivable, inventory, equipment, and other forms of general non-real estate business assets. The Bank often obtains some form of credit enhancement through a personal guaranty of the borrower, principals and/or others. The global cash flow capability of commercial and industrial loan customers is generally evaluated both at underwriting and during the life of the loan. Commercial and industrial loans may involve increased risk due to the expectation that repayments for such loans generally come from the operation of the business activity and those operations may be unsuccessful. A disruption in the operating cash flows from a business, sometimes influenced by events not under the control of the borrower such as changing business environment, changes in regulations and political climate, rising interest rates, unexpected natural events, or competition could also impact the borrower’s capacity to repay the loan. Assets collateralizing commercial and industrial loans may also decline in value more quickly than anticipated. Commercial and industrial loans require increased underwriting and monitoring to offset these risks, for which the Bank’s systems have been designed to provide. Commercial real estate loans include owner occupied and non-owner occupied commercial real estate mortgage loans to operating commercial and agricultural businesses, and include both loans for long-term financing of land and buildings and loans made for the initial development or construction of a commercial real estate project. Residential real estate loans represent loans to consumers collateralized by a mortgage on a residence and include purchase money, refinancing, secondary mortgages, and home equity loans and lines of credit. Public finance loans include loans to our charter school and municipal based customers. Consumer loans include direct consumer installment loans, credit card accounts, overdrafts and other revolving loans. Other loans consist of loans to nondepository financial institutions, lease financing receivables and loans for agricultural production. The ACL is measured using a PD/LGD with EAD model that is calculated based on the product of a cumulative PD and LGD. PD and LGD estimates are assigned based upon the periodic completion of credit risk scorecards. Remaining EAD is derived based on inherent loan characteristics and like-kind loan prepayment trends. Under this approach, management calculates losses for each loan for all future periods using the PD and LGD rates derived from the term structure curves applied to the estimated remaining balance of the loans. For the ACL determination of all portfolios, the expectations for relevant macroeconomic variables consider an initial reasonable and supportable period of four years and a reversion period of one year, utilizing a straight-line approach and reverting back to the historical loss rates. Management periodically considers the need to make qualitative adjustments to the ACL. Qualitative adjustments may be related to and include, but not be limited to factors such as the following: (i) management’s assessment of economic forecasts used in the model and how those forecasts align with management’s overall evaluation of current and expected economic conditions; (ii) organization specific risks such as credit concentrations, collateral specific risks, nature and size of the portfolio and external factors that may ultimately impact credit quality, and (iii) other limitations associated with factors such as changes in underwriting and loan resolution strategies, among others. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Such loans are evaluated for credit losses based on either discounted cash flows or the fair value of collateral. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral, less selling costs. For loans for which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral, management has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of the collateral, with selling costs considered in the event sale of the collateral is expected. Management has elected not to measure an ACL on accrued interest related to held for investment loans, as uncollectible accrued interest receivables are written off on a timely manner. Loan credit quality and the adequacy of the allowance are also subject to periodic examination by regulatory agencies. Such agencies may require adjustments to the allowance based upon their judgements about information available at the time of their examination. |
Merger with Pioneer Bancshare_2
Merger with Pioneer Bancshares, Inc. (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed in this Transaction | Estimated fair values of the assets acquired and liabilities assumed in this transaction are as follows: April 1, Cash and cash equivalents $ 449,278 Investment securities 157,859 Loans held-for-sale 2,923 Loans 811,300 Premises and equipment 39,935 Bank-owned life insurance 21,382 Restricted equity securities 9,320 Core deposits and other intangible assets 11,771 Accrued interest receivable 3,947 Deferred tax assets 19,752 Prepaid expenses and other assets 7,317 Total assets acquired 1,534,784 Deposits 1,192,081 Federal Home Loan Bank advances 159,924 Accrued interest payable 407 Accrued expenses and other liabilities 1,975 Total liabilities assumed 1,354,387 Fair value of net assets acquired 180,397 Purchase price 240,830 Goodwill $ 60,433 Acquired Loans Contractual Principal Balance Commercial and industrial $ 98,351 $ 98,752 Commercial real estate 509,173 516,341 Residential real estate 173,094 174,763 Consumer 30,682 31,982 Total fair value $ 811,300 $ 821,838 |
Schedule of business acquisition, pro forma information | The following unaudited pro forma summary presents consolidated information of FirstSun as if the business combination had occurred on January 1, 2022. (Unaudited) 2022 Net interest income $ 51,436 Provision for loan losses 2,850 Net interest income after provision for loan losses 48,586 Noninterest income 25,120 Noninterest expenses 42,648 Income before income taxes 31,058 Provision for income taxes 5,810 Net income $ 25,248 Earnings per share: Net income available to common stockholders $ 25,248 Basic $ 1.02 Diluted $ 0.99 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Gross Gross Estimated March 31, 2023 Available-for-sale: U.S. treasury $ 62,000 $ — $ (4,631) $ 57,369 U.S. agency 2,421 — (38) 2,383 Obligations of states and political subdivisions 29,935 — (4,207) 25,728 Mortgage backed - residential 126,469 3 (15,194) 111,278 Collateralized mortgage obligations 220,713 — (19,579) 201,134 Mortgage backed - commercial 132,427 — (12,794) 119,633 Other debt 16,779 — (1,654) 15,125 Total available-for-sale $ 590,744 $ 3 $ (58,097) $ 532,650 Held-to-maturity: Obligations of states and political subdivisions $ 25,418 $ 5 $ (4,097) $ 21,326 Mortgage backed - residential 8,478 3 (616) 7,865 Collateralized mortgage obligations 4,574 — (263) 4,311 Total held-to-maturity $ 38,470 $ 8 $ (4,976) $ 33,502 December 31, 2022 Available-for-sale: U.S. treasury $ 62,010 $ — $ (5,361) $ 56,649 U.S. agency 2,881 — (47) 2,834 Obligations of states and political subdivisions 29,897 — (4,998) 24,899 Mortgage backed - residential 129,955 6 (13,826) 116,135 Collateralized mortgage obligations 225,559 — (21,294) 204,265 Mortgage backed - commercial 130,997 — (13,661) 117,336 Other debt 16,774 — (1,919) 14,855 Total available-for-sale $ 598,073 $ 6 $ (61,106) $ 536,973 Held-to-maturity: Obligations of states and political subdivisions $ 25,378 $ 5 $ (4,891) $ 20,492 Mortgage backed - residential 8,705 4 (511) 8,198 Collateralized mortgage obligations 4,818 — (290) 4,528 Total held-to-maturity $ 38,901 $ 9 $ (5,692) $ 33,218 |
Schedule of Held-to-maturity Securities | The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Gross Gross Estimated March 31, 2023 Available-for-sale: U.S. treasury $ 62,000 $ — $ (4,631) $ 57,369 U.S. agency 2,421 — (38) 2,383 Obligations of states and political subdivisions 29,935 — (4,207) 25,728 Mortgage backed - residential 126,469 3 (15,194) 111,278 Collateralized mortgage obligations 220,713 — (19,579) 201,134 Mortgage backed - commercial 132,427 — (12,794) 119,633 Other debt 16,779 — (1,654) 15,125 Total available-for-sale $ 590,744 $ 3 $ (58,097) $ 532,650 Held-to-maturity: Obligations of states and political subdivisions $ 25,418 $ 5 $ (4,097) $ 21,326 Mortgage backed - residential 8,478 3 (616) 7,865 Collateralized mortgage obligations 4,574 — (263) 4,311 Total held-to-maturity $ 38,470 $ 8 $ (4,976) $ 33,502 December 31, 2022 Available-for-sale: U.S. treasury $ 62,010 $ — $ (5,361) $ 56,649 U.S. agency 2,881 — (47) 2,834 Obligations of states and political subdivisions 29,897 — (4,998) 24,899 Mortgage backed - residential 129,955 6 (13,826) 116,135 Collateralized mortgage obligations 225,559 — (21,294) 204,265 Mortgage backed - commercial 130,997 — (13,661) 117,336 Other debt 16,774 — (1,919) 14,855 Total available-for-sale $ 598,073 $ 6 $ (61,106) $ 536,973 Held-to-maturity: Obligations of states and political subdivisions $ 25,378 $ 5 $ (4,891) $ 20,492 Mortgage backed - residential 8,705 4 (511) 8,198 Collateralized mortgage obligations 4,818 — (290) 4,528 Total held-to-maturity $ 38,901 $ 9 $ (5,692) $ 33,218 |
Schedule of Available-for-sale Securities with Unrealized Losses | Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number March 31, 2023 Available-for-sale: U.S. treasury $ — $ — $ 57,369 $ (4,631) $ 57,369 $ (4,631) 10 U.S. agency — — 2,383 (38) 2,383 (38) 7 Obligations of states and political subdivisions 2,070 (204) 23,188 (4,003) 25,258 (4,207) 18 Mortgage backed - residential 3,770 (177) 107,133 (15,017) 110,903 (15,194) 87 Collateralized mortgage obligations 49,441 (1,270) 151,693 (18,309) 201,134 (19,579) 66 Mortgage backed - commercial 4,857 (16) 113,019 (12,778) 117,876 (12,794) 22 Other debt — — 15,125 (1,654) 15,125 (1,654) 9 Total available-for-sale $ 60,138 $ (1,667) $ 469,910 $ (56,430) $ 530,048 $ (58,097) 219 Held-to-maturity: Obligations of states and political subdivisions $ — $ — $ 20,986 $ (4,097) $ 20,986 $ (4,097) 8 Mortgage backed - residential — — 7,676 (616) 7,676 (616) 10 Collateralized mortgage obligations — — 4,311 (263) 4,311 (263) 5 Total held-to-maturity $ — $ — $ 32,973 $ (4,976) $ 32,973 $ (4,976) 23 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number December 31, 2022 Available-for-sale: U.S. treasury $ 25,702 $ (967) $ 30,947 $ (4,394) $ 56,649 $ (5,361) 10 U.S. agency — — 2,834 (47) 2,834 (47) 7 Obligations of states and political subdivisions 21,676 (3,784) 2,753 (1,214) 24,429 (4,998) 18 Mortgage backed - residential 51,921 (2,939) 63,691 (10,887) 115,612 (13,826) 87 Collateralized mortgage obligations 111,360 (4,631) 92,905 (16,663) 204,265 (21,294) 66 Mortgage backed - commercial 70,710 (6,475) 46,626 (7,186) 117,336 (13,661) 22 Other debt 14,855 (1,919) — — 14,855 (1,919) 9 Total available-for-sale $ 296,224 $ (20,715) $ 239,756 $ (40,391) $ 535,980 $ (61,106) 219 Held-to-maturity: Obligations of states and political subdivisions $ 20,153 $ (4,891) $ — $ — $ 20,153 $ (4,891) 8 Mortgage backed - residential 7,993 (511) — — 7,993 (511) 10 Collateralized mortgage obligations 4,127 (275) 401 (15) 4,528 (290) 5 Total held-to-maturity $ 32,273 $ (5,677) $ 401 $ (15) $ 32,674 $ (5,692) 23 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | Amortized Estimated Available-for-sale: Due within 1 year $ 9,529 $ 9,318 Due after 1 year through 5 years 52,192 49,286 Due after 5 years through 10 years 163,650 147,347 Due after 10 years 365,373 326,699 Total available-for-sale $ 590,744 $ 532,650 Held-to-maturity: Due after 1 year through 5 years $ 1,111 $ 1,081 Due after 5 years through 10 years 800 768 Due after 10 years 36,559 31,653 Total held-to-maturity $ 38,470 $ 33,502 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment | Loans held-for-investment by portfolio type consist of the following as of: March 31, December 31, Commercial and industrial $ 2,418,771 $ 2,310,929 Commercial real estate: Non-owner occupied 709,977 779,546 Owner occupied 659,999 636,272 Construction and land 320,193 327,817 Multifamily 103,767 102,068 Total commercial real estate 1,793,936 1,845,703 Residential real estate 1,046,047 1,003,931 Public finance 597,850 590,284 Consumer 40,806 42,588 Other 163,565 118,397 Total loans $ 6,060,975 $ 5,911,832 Allowance for credit losses (74,459) (65,917) Loans, net of allowance for credit losses $ 5,986,516 $ 5,845,915 |
Schedule of Allowance for Loan Losses by Portfolio Type | The following table presents the activity in the allowance for credit losses by portfolio type for the three months ended March 31,: Commercial Commercial Residential Public Consumer Other Total 2023 Allowance for credit losses: Balance, beginning of period $ 40,785 $ 19,754 $ 2,963 $ 1,664 $ 352 $ 399 $ 65,917 Impact of adopting ASC 326 (13,583) 3,867 10,256 3,890 249 577 5,256 Provision for (benefit from) credit losses 1,346 562 946 (5) 129 362 3,340 Loans charged off (59) — — — (64) — (123) Recoveries 56 3 — — 10 — 69 Balance, end of period $ 28,545 $ 24,186 $ 14,165 $ 5,549 $ 676 $ 1,338 $ 74,459 2022 Allowance for credit losses: Balance, beginning of period $ 31,622 $ 13,198 $ 836 $ 1,544 $ 235 $ 112 $ 47,547 Provision for (benefit from) credit losses 2,213 1,368 63 67 8 (19) 3,700 Loans charged off (1,003) — — — (26) — (1,029) Recoveries 177 — 98 — 16 — 291 Balance, end of period $ 33,009 $ 14,566 $ 997 $ 1,611 $ 233 $ 93 $ 50,509 The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of: Collateral Dependent Loans Collateral Dependent Loans Total Collateral Dependent Loans Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial & industrial $ 4,027 $ 2,215 $ 6,383 $ 10,410 $ 2,215 Commercial real estate: Non-owner occupied 104 30 2,033 2,137 30 Owner occupied 612 186 4,208 4,820 186 Construction and land — — 198 198 — Total commercial real estate 716 216 6,439 7,155 216 Residential real estate 1,196 41 10,689 11,885 41 Consumer 68 68 — 68 68 Other — — 467 467 — Total loans $ 6,007 $ 2,540 $ 23,978 $ 29,985 $ 2,540 December 31, 2022 Commercial & industrial $ 6,330 $ 1,101 $ 3,164 $ 9,494 $ 1,101 Commercial real estate: Non-owner occupied 115 36 2,033 2,148 36 Owner occupied 681 153 5,256 5,937 153 Construction and land — — 198 198 — Total commercial real estate 796 189 7,487 8,283 189 Residential real estate 836 34 9,779 10,615 34 Consumer 91 88 — 91 88 Other — — 475 475 — Total loans $ 8,053 $ 1,412 $ 20,905 $ 28,958 $ 1,412 |
Schedule of Aging of Loan Portfolio | The following table presents our loan portfolio aging analysis as of: Loans Loans Loans Loans Greater Nonaccrual Total March 31, 2023 Commercial and industrial $ 2,399,390 $ 1,560 $ 6,831 $ 580 $ 10,410 $ 2,418,771 Commercial real estate: Non-owner occupied 705,029 299 243 2,268 2,138 709,977 Owner occupied 653,268 1,912 — — 4,819 659,999 Construction and land 315,193 4,802 — — 198 320,193 Multifamily 102,809 — 958 — — 103,767 Total commercial real estate 1,776,299 7,013 1,201 2,268 7,155 1,793,936 Residential real estate 1,016,009 18,118 35 — 11,885 1,046,047 Public Finance 597,850 — — — — 597,850 Consumer 40,625 113 — — 68 40,806 Other 160,626 2,472 — — 467 163,565 Total loans $ 5,990,799 $ 29,276 $ 8,067 $ 2,848 $ 29,985 $ 6,060,975 December 31, 2022 Commercial and industrial $ 2,298,207 $ 2,409 $ 819 $ — $ 9,494 $ 2,310,929 Commercial real estate: Non-owner occupied 773,042 4,356 — — 2,148 779,546 Owner occupied 630,335 — — — 5,937 636,272 Construction and land 324,888 2,632 99 — 198 327,817 Multifamily 102,068 — — — — 102,068 Total commercial real estate 1,830,333 6,988 99 — 8,283 1,845,703 Residential real estate 974,450 17,231 1,524 98 10,628 1,003,931 Public Finance 590,284 — — — — 590,284 Consumer 42,434 58 3 — 93 42,588 Other 117,926 — — — 471 118,397 Total loans $ 5,853,634 $ 26,686 $ 2,445 $ 98 $ 28,969 $ 5,911,832 |
Financing Receivable Credit Quality Indicators | The following table present the amortized costs by segment of loans by risk category and origination date as of March 31, 2023: 2023 2022000 2022 2020000 2021 Prior 2020 Revolving 2019 Prior Term Total Revolving Total Commercial and industrial: Pass $ 162,090 $ 745,860 $ 345,908 $ 145,402 $ 53,297 $ 38,696 $ 1,491,253 $ 773,035 $ 2,264,288 Pass/Watch 685 20,343 2,636 2,427 583 3,880 30,554 2,023 32,577 Special Mention 737 15,769 32,256 722 733 2,354 52,571 7,837 60,408 Substandard - Accruing 160 23,793 10,818 4,954 2,343 3,875 45,943 5,145 51,088 Substandard - Nonaccrual — 538 1,884 3,541 — 3,886 9,849 — 9,849 Doubtful — — 561 — — — 561 — 561 Total commercial and industrial $ 163,672 $ 806,303 $ 394,063 $ 157,046 $ 56,956 $ 52,691 $ 1,630,731 $ 788,040 $ 2,418,771 Gross charge-offs $ — $ 59 $ — $ — $ — $ — $ 59 $ — $ 59 Commercial real estate: Non-owner occupied: Pass $ 6,913 $ 152,332 $ 118,258 $ 119,163 $ 94,647 $ 141,349 $ 632,662 $ 32,571 $ 665,233 Pass/Watch — — — — — 29,709 29,709 — 29,709 Special Mention — — — — — 7 7 — 7 Substandard - Accruing — — 2,924 — — 9,966 12,890 — 12,890 Substandard - Nonaccrual — — — — 104 2,034 2,138 — 2,138 Total non-owner occupied $ 6,913 $ 152,332 $ 121,182 $ 119,163 $ 94,751 $ 183,065 $ 677,406 $ 32,571 $ 709,977 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied: Pass $ 37,799 $ 115,829 $ 149,207 $ 108,364 $ 62,745 $ 118,859 $ 592,803 $ 11,275 $ 604,078 Pass/Watch 1,378 204 — 1,445 1,465 8,076 12,568 1,650 14,218 Special Mention — — 2,291 2,019 1,850 3,918 10,078 — 10,078 Substandard - Accruing — — 3,858 7,123 8,951 6,874 26,806 — 26,806 Substandard - Nonaccrual — — — — — 4,819 4,819 — 4,819 Total owner occupied $ 39,177 $ 116,033 $ 155,356 $ 118,951 $ 75,011 $ 142,546 $ 647,074 $ 12,925 $ 659,999 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land: Pass $ 17,522 $ 103,650 $ 94,855 $ 35,459 $ 13,094 $ 6,470 $ 271,050 $ 46,301 $ 317,351 Pass/Watch — — 1,420 — — 18 1,438 — 1,438 Special Mention — 582 — 624 — — 1,206 — 1,206 Substandard - Nonaccrual — — — 198 — — 198 — 198 Total construction & land $ 17,522 $ 104,232 $ 96,275 $ 36,281 $ 13,094 $ 6,488 $ 273,892 $ 46,301 $ 320,193 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily: Pass $ 4,091 $ 36,768 $ 36,561 $ 13,134 $ 6,139 $ 1,503 $ 98,196 $ 5,571 $ 103,767 Total multifamily $ 4,091 $ 36,768 $ 36,561 $ 13,134 $ 6,139 $ 1,503 $ 98,196 $ 5,571 $ 103,767 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 2023 2022000 2022 2020000 2021 Prior 2020 Revolving 2019 Prior Term Total Revolving Total Total commercial real estate: Pass $ 66,325 $ 408,579 $ 398,881 $ 276,120 $ 176,625 $ 268,181 $ 1,594,711 $ 95,718 $ 1,690,429 Pass/Watch 1,378 204 1,420 1,445 1,465 37,803 43,715 1,650 45,365 Special Mention — 582 2,291 2,643 1,850 3,925 11,291 — 11,291 Substandard - Accruing — — 6,782 7,123 8,951 16,840 39,696 — 39,696 Substandard - Nonaccrual — — — 198 104 6,853 7,155 — 7,155 Total commercial real estate: $ 67,703 $ 409,365 $ 409,374 $ 287,529 $ 188,995 $ 333,602 $ 1,696,568 $ 97,368 $ 1,793,936 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 39,960 $ 573,226 $ 104,686 $ 47,425 $ 44,940 $ 176,588 $ 986,825 $ 39,979 $ 1,026,804 Pass/Watch — 1,573 69 — 567 3,250 5,459 — 5,459 Special Mention — — — — 259 1,508 1,767 — 1,767 Substandard - Accruing — — — — — 132 132 — 132 Substandard - Nonaccrual — 2,983 11 721 2,449 5,683 11,847 38 11,885 Total residential real estate $ 39,960 $ 577,782 $ 104,766 $ 48,146 $ 48,215 $ 187,161 $ 1,006,030 $ 40,017 $ 1,046,047 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Public Finance: Pass $ 16,839 $ 12,488 $ 44,299 $ 169,871 $ 213,739 $ 140,614 $ 597,850 $ — $ 597,850 Total public finance $ 16,839 $ 12,488 $ 44,299 $ 169,871 $ 213,739 $ 140,614 $ 597,850 $ — $ 597,850 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 764 $ 3,661 $ 6,606 $ 10,938 $ 4,265 $ 3,391 $ 29,625 $ 10,261 $ 39,886 Pass/Watch — 68 171 105 198 227 769 50 819 Special Mention — — — 10 — — 10 — 10 Substandard - Accruing 7 — — 15 — — 22 1 23 Substandard - Nonaccrual — — — — 66 — 66 2 68 Total consumer $ 771 $ 3,729 $ 6,777 $ 11,068 $ 4,529 $ 3,618 $ 30,492 $ 10,314 $ 40,806 Gross charge-offs $ — $ — $ 11 $ 1 $ 3 $ 17 $ 32 $ 32 $ 64 Other: Pass $ 9 $ 13,550 $ 14,587 $ 3,184 $ 3,166 $ 10,469 $ 44,965 $ 109,537 $ 154,502 Pass/Watch — — 2,696 — — — 2,696 — 2,696 Substandard - Accruing — — 5,900 — — — 5,900 — 5,900 Substandard - Nonaccrual — — 467 — — — 467 — 467 Total other $ 9 $ 13,550 $ 23,650 $ 3,184 $ 3,166 $ 10,469 $ 54,028 $ 109,537 $ 163,565 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans: Pass $ 285,987 $ 1,757,364 $ 914,967 $ 652,940 $ 496,032 $ 637,939 $ 4,745,229 $ 1,028,530 $ 5,773,759 Pass/Watch 2,063 22,188 6,992 3,977 2,813 45,160 83,193 3,723 86,916 Special Mention 737 16,351 34,547 3,375 2,842 7,787 65,639 7,837 73,476 Substandard - Accruing 167 23,793 23,500 12,092 11,294 20,847 91,693 5,146 96,839 Substandard - Nonaccrual — 3,521 2,362 4,460 2,619 16,422 29,384 40 29,424 Doubtful — — 561 — — — 561 — 561 Total loans $ 288,954 $ 1,823,217 $ 982,929 $ 676,844 $ 515,600 $ 728,155 $ 5,015,699 $ 1,045,276 $ 6,060,975 Gross charge-offs $ — $ 59 $ 11 $ 1 $ 3 $ 17 $ 91 $ 32 $ 123 The following table presents the credit risk profile of our loan portfolio based on our rating categories as of December 31, 2022, which is prior to the adoption of ASU 2016-13 on January 1, 2023 and continue to be reported under ASC 310, Receivables . For a description of these risk ratings, please see our 2022 Annual Report. Amounts are presented at unpaid principal balance. Non-Classified Classified Total Commercial and industrial $ 2,969,786 $ 55,288 $ 3,025,074 Commercial real estate 1,715,415 37,945 1,753,360 Residential real estate 1,096,108 10,685 1,106,793 Consumer 43,592 114 43,706 Total loans $ 5,824,901 $ 104,032 $ 5,928,933 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Unpaid Principal Loan Balance of Servicing Portfolio | The unpaid principal loan balance of our servicing portfolio is presented in the following table as of: March 31, December 31, 2022 Federal National Mortgage Association $ 2,512,584 $ 2,517,434 Federal Home Loan Mortgage Corporation 1,645,733 1,630,403 Government National Mortgage Association 959,565 916,455 Federal Home Loan Bank 109,851 111,699 Other 1,320 1,413 Total $ 5,229,053 $ 5,177,404 |
Schedule of Mortgage Servicing Rights at Fair Value | The activity of MSRs carried at fair value is as follows: For the three months ended March 31, 2023 2022 Balance, beginning of period $ 74,097 $ 47,392 Additions: Servicing resulting from transfers of financial assets 2,047 4,524 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (1,168) 10,823 Changes in fair value due to pay-offs, pay-downs, and runoff (1,552) (2,258) Balance, end of period $ 73,424 $ 60,481 |
Schedule of Fair Value Assumptions, Servicing Assets | The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of: March 31, December 31, March 31, Discount rate 9.87 % 9.85 % 9.24 % Total prepayment speeds 7.66 % 7.40 % 8.51 % Cost of servicing each loan $88/per loan $88/per loan $86/per loan |
Schedule of Servicing and Ancillary Fees from Mortgage Servicing Portfolio | Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table: For the three months ended March 31, 2023 2022 Servicing fees $ 3,622 $ 3,219 Late and ancillary fees 185 89 Total $ 3,807 $ 3,308 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The components of our banking derivative financial instruments consisted of the following as of: Number of Expiration Outstanding Estimated March 31, 2023 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 201,369 $ 12,073 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 44 2024-2037 $ 387,326 $ 20,325 Other 1 2025 $ 14,638 $ 28 Liabilities: Interest Rate Products 44 2024-2037 $ 387,326 $ 20,277 December 31, 2022 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 201,906 $ 15,636 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 41 2024-2037 $ 338,770 $ 24,615 Other 1 2025 $ 14,638 $ — Liabilities: Interest Rate Products 41 2024-2037 $ 338,770 $ 24,242 The components of our mortgage banking derivative financial instruments consisted of the following as of: Expiration Outstanding Estimated March 31, 2023 Derivative financial instruments Assets: Forward MBS trades 2023 $ 45,300 $ 1,225 Liabilities: Forward MBS trades 2023 $ 103,000 $ 976 Interest rate lock commitments (IRLC) 2023 $ 79,234 $ (417) December 31, 2022 Derivative financial instruments Assets: Forward MBS trades 2023 $ 85,000 $ 36 Liabilities: Forward MBS trades 2023 $ 21,800 $ 225 Interest rate lock commitments (IRLC) 2023 $ 52,533 $ 60 |
Schedule of Derivative Instruments, Gain (Loss) | We recorded gains and losses on banking derivative assets and liabilities as follows: For the three months ended March 31, 2023 2022 Recorded (loss) gain on banking derivative assets $ (2,560) $ 9,809 Recorded gain (loss) on banking derivative liabilities $ 2,256 $ (9,364) We recorded gains and losses on mortgage banking derivative assets and liabilities as follows: For the three months ended March 31, 2023 2022 Recorded gain on mortgage banking derivative assets $ 850 $ 5,477 Recorded loss on mortgage banking derivative liabilities $ (535) $ (12,576) |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Statistical Disclosure for Banks [Abstract] | |
Schedule of Composition of Deposits | The composition of our deposits is as follows as of: March 31, December 31, Noninterest-bearing demand deposit accounts $ 1,764,440 $ 1,820,490 Interest-bearing deposit accounts: Interest-bearing demand accounts 238,658 212,357 Savings accounts and money market accounts 2,705,315 2,759,969 NOW accounts 45,192 50,224 Certificate of deposit accounts: Less than $100 260,865 241,322 $100 through $250 294,787 270,790 Greater than $250 685,009 409,910 Total interest-bearing deposit accounts 4,229,826 3,944,572 Total deposits $ 5,994,266 $ 5,765,062 |
Schedule of Interest Expense Incurred on Deposits | The following table summarizes the interest expense incurred on our deposits: For the three months ended March 31, 2023 2022 Interest-bearing deposit accounts: Interest-bearing demand accounts $ 1,175 $ 94 Savings accounts and money market accounts 5,513 931 NOW accounts 59 30 Certificate of deposit accounts 7,432 519 Total interest-bearing deposit accounts $ 14,179 $ 1,574 |
Schedule of Remaining Maturity on Certificate of Deposit Accounts | The remaining maturity on certificate of deposit accounts is as follows as of: March 31, Remainder of 2023 $ 769,272 2024 345,185 2025 107,777 2026 10,476 2027 4,321 2028 711 Thereafter 2,919 Total certificate of deposit accounts $ 1,240,661 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned [Abstract] | |
Schedule of Information Concerning Securities Sold Under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is as follows as of and for the periods ended: March 31, December 31, Amount outstanding at period-end $ 31,645 $ 36,721 Average daily balance during the period $ 29,672 $ 54,335 Average interest rate during the period 0.52 % 0.27 % Maximum month-end balance during the period $ 31,645 $ 70,838 Weighted average interest rate at period-end 0.62 % 0.42 % |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The following is a breakdown of our FHLB advances and other borrowings outstanding as of: March 31, 2023 December 31, 2022 Amount Rate Weighted Amount Rate Weighted Variable rate line-of-credit advance $ 577,285 4.99% 4.70% $ 643,885 4.48% 3.91% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock: For the three months ended March 31, 2023 2022 Net income applicable to common stockholders $ 26,281 $ 7,669 Weighted Average Shares Weighted average common shares outstanding 24,923,259 18,346,288 Effect of dilutive securities Stock-based awards 564,323 553,564 Convertible notes payable — — Weighted average diluted common shares 25,487,582 18,899,852 Earnings per common share Basic earnings per common share $ 1.05 $ 0.42 Effect of dilutive securities Stock-based awards (0.02) (0.01) Diluted earnings per common share $ 1.03 $ 0.41 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Components in Accumulated Other Comprehensive Income | The following table sets forth the components in accumulated other comprehensive income (loss): For the three months ended March 31, 2023 2022 Securities available-for-sale: Balance, beginning of period $ (46,157) $ 1,664 Unrealized gain (loss) 3,006 (21,618) Income tax effect (735) 5,286 Net unrealized gain (loss) 2,271 (16,332) Balance, end of period $ (43,886) $ (14,668) Fair value hedges of securities available-for-sale: Balance, beginning of period $ 2,174 $ — Unrealized loss (906) — Income tax effect 222 — Net unrealized loss (684) — Balance, end of period $ 1,490 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table presents stock options outstanding under the 2017 Plan at March 31, 2023. There were no exercises, grants or forfeitures during the three months ended March 31, 2023: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) March 31, 2023 Outstanding, end of period 1,307,915 $ 20.23 5.01 Options vested or expected to vest 1,307,915 $ 20.23 Options exercisable, end of period 1,191,032 $ 20.11 4.93 Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) March 31, 2023 Outstanding, beginning of period 170,711 $ 23.19 Options assumed from Pioneer Bancshares, Inc. — — Exercised (4,959) 18.55 Forfeited (261) 19.16 Outstanding, vested, and exercisable, end of period 165,491 $ 23.34 4.69 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income tax is summarized as follows: For the three months ended March 31, 2023 2022 Provision for income taxes $ 7,141 $ 1,142 Effective tax provision rate 21.4 % 13.0 % |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Actual and Required Capital Amounts | Actual and required capital amounts for the Parent Company are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total risk-based capital to risk-weighted assets: $ 862,407 12.19 % $ 565,761 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 714,707 10.11 % $ 424,321 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 714,707 10.11 % $ 318,241 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 714,707 9.86 % $ 289,804 4.00 % N/A N/A December 31, 2022 Total risk-based capital to risk-weighted assets: $ 829,712 11.99 % $ 553,440 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 687,602 9.94 % $ 415,080 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 687,602 9.94 % $ 311,310 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 687,602 9.71 % $ 283,353 4.00 % N/A N/A Actual and required capital amounts for the Bank are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio March 31, 2023 Total risk-based capital to risk-weighted assets: $ 829,861 11.77 % $ 564,000 8.00 % $ 705,000 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 757,141 10.74 % $ 423,000 6.00 % $ 564,000 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 757,141 10.74 % $ 317,250 4.50 % $ 458,250 6.50 % Tier 1 leverage capital to average assets: $ 757,141 10.46 % $ 289,673 4.00 % $ 362,091 5.00 % December 31, 2022 Total risk-based capital to risk-weighted assets: $ 815,335 11.81 % $ 552,237 8.00 % $ 690,296 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 748,105 10.84 % $ 414,177 6.00 % $ 552,237 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 748,105 10.84 % $ 310,633 4.50 % $ 448,692 6.50 % Tier 1 leverage capital to average assets: $ 748,105 10.56 % $ 283,245 4.00 % $ 354,056 5.00 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of: Level 1 Level 2 Level 3 Quoted prices Significant Significant Total March 31, 2023 Available-for-sale securities $ 57,369 $ 475,281 $ — $ 532,650 Loans held-for-sale — 66,255 — 66,255 Mortgage servicing rights — — 73,424 73,424 Derivative financial instruments - assets — 33,651 — 33,651 Derivative financial instruments - liabilities — (20,836) — (20,836) Total $ 57,369 $ 554,351 $ 73,424 $ 685,144 December 31, 2022 Available-for-sale securities $ 56,649 $ 480,324 $ — $ 536,973 Loans held-for-sale — 57,323 — 57,323 Mortgage servicing rights — — 74,097 74,097 Derivative financial instruments - assets — 40,287 — 40,287 Derivative financial instruments - liabilities — (24,527) — (24,527) Total $ 56,649 $ 553,407 $ 74,097 $ 684,153 |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis: For the three months ended March 31, 2023 2022 Balance, beginning of period $ 74,097 $ 47,392 Total (losses) gains included in earnings (2,720) 8,565 Purchases, issuances, sales and settlements: Issuances 2,047 4,524 Balance, end of period $ 73,424 $ 60,481 |
Schedule of Fair Value Measurements, Nonrecurring | The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of: Level 3 March 31, December 31, Collateral dependent loans: Commercial and industrial $ 1,812 $ 5,229 Commercial real estate 500 607 Residential real estate 1,155 802 Consumer — 3 Other — — Total collateral dependent loans $ 3,467 $ 6,641 Other real estate owned and foreclosed assets, net: Commercial real estate $ 5,391 $ 5,391 Residential real estate 967 967 Total other real estate owned and foreclosed assets, net: $ 6,358 $ 6,358 |
Schedule of Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of: Estimated Fair Value Carrying Total Level 1 Level 2 Level 3 March 31, 2023 Assets: Cash and cash equivalents $ 388,349 $ 388,349 $ 388,349 $ — $ — Securities held-to-maturity 38,470 33,502 — 33,502 — Loans (excluding collateral dependent loans at fair value) 6,057,508 5,932,738 — — 5,932,738 Restricted equity securities 46,747 46,747 — 46,747 — Accrued interest receivable 28,725 28,725 — 2,059 26,666 Liabilities: Deposits (excluding demand deposits) $ 3,991,168 $ 3,965,964 $ — $ 3,965,964 $ — Securities sold under agreements to repurchase 31,645 31,645 — 31,645 — FHLB advances 577,285 577,285 — 577,285 — Convertible notes payable, net 5,393 5,330 — 5,330 — Subordinated debt, net 74,980 72,547 — 72,547 — Accrued interest payable 9,610 9,610 — 9,610 — December 31, 2022 Assets: Cash and cash equivalents $ 343,526 $ 343,526 $ 343,526 $ — $ — Securities held-to-maturity 38,901 33,218 — 33,218 — Loans (excluding impaired loans) 5,871,274 5,756,197 — — 5,756,197 Restricted equity securities 50,215 50,215 — 50,215 — Accrued interest receivable 28,543 28,543 — 2,049 26,494 Liabilities: Deposits (excluding demand deposits) $ 3,732,215 $ 3,696,438 $ — $ 3,696,438 $ — Securities sold under agreements to repurchase 36,721 36,721 — 36,721 — FHLB advances 643,885 643,885 — 643,885 — Convertible notes payable, net 5,355 5,329 — 5,329 — Subordinated debt, net 74,880 71,618 — 71,618 — Accrued interest payable 5,798 5,798 — 5,798 — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Significant segment totals are reconciled to the financial statements as follows for the three months ended March 31,: Banking Mortgage Operations Corporate Total Segments 2023 Summary of Operations Net interest income $ 73,486 $ 1,882 $ (1,251) $ 74,117 Provision for credit losses 2,414 946 — 3,360 Noninterest income: Service charges on deposit accounts 5,015 — — 5,015 Credit and debit card fees 2,981 — — 2,981 Trust and investment advisory fees 1,461 — — 1,461 Income from mortgage banking services, net (188) 7,617 — 7,429 Other noninterest income 2,045 — — 2,045 Total noninterest income 11,314 7,617 — 18,931 Noninterest expense: Salary and employee benefits 27,784 6,772 493 35,049 Occupancy and equipment 7,424 710 40 8,174 Other noninterest expenses 8,416 3,509 1,118 13,043 Total noninterest expense 43,624 10,991 1,651 56,266 Income (loss) before income taxes $ 38,762 $ (2,438) $ (2,902) $ 33,422 Other Information Depreciation expense $ 1,649 $ 61 $ — $ 1,710 Identifiable assets $ 6,728,396 $ 819,317 $ 62,743 $ 7,610,456 Banking Mortgage Operations Corporate Total Segments 2022 Summary of Operations Net interest income $ 41,283 $ 1,641 $ (1,639) $ 41,285 Provision for (benefit from) credit losses 2,807 893 — 3,700 Noninterest income: Service charges on deposit accounts 3,925 — — 3,925 Credit and debit card fees 2,415 — — 2,415 Trust and investment advisory fees 1,947 — — 1,947 Income from mortgage banking services, net (980) 15,541 — 14,561 Other noninterest income 853 (8) — 845 Total noninterest income 8,160 15,533 — 23,693 Noninterest expense: Salary and employee benefits 22,719 11,414 92 34,225 Occupancy 5,856 977 — 6,833 Other noninterest expenses 7,886 3,172 351 11,409 Total noninterest expense 36,461 15,563 443 52,467 Income (loss) before income taxes $ 10,175 $ 718 $ (2,082) $ 8,811 Other Information Depreciation expense $ 1,311 $ 103 $ — $ 1,414 Identifiable assets $ 5,128,332 $ 553,878 $ 51,538 $ 5,733,748 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease, Cost | For leases existing during transition from ASC 840 to ASC 842 at January 1, 2022, extension options were not considered in the remaining lease term. 2023 ROU asset on leased property, gross $ 35,576 Accumulated amortization (7,923) ROU asset, net (included in Prepaid expenses and other assets in our consolidated balance sheets) $ 27,653 Lease liability (Included in Accrued expenses and other liabilities in our consolidated balance sheets) $ 30,400 Operating leases $ 1,869 Short-term leases 46 Sublease income (17) Net lease expense $ 1,898 |
Schedule of Future Minimum Leases Payment | The following table reconciles future undiscounted lease payments due under non-cancelable operating leases to the aggregate operating lessee lease liability as of March 31, 2023: Remainder of 2023 $ 7,590 2024 6,835 2025 5,479 2026 3,587 2027 2,349 2028 5,861 Thereafter 460 Total undiscounted operating lease liability 32,161 Imputed interest 1,761 Total operating lease liability included in the accompanying balance sheet $ 30,400 Weighted Average Remaining Life - Operating Leases 5.73 Weighted Average Rate - Operating Leases 1.89 % |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||||
Loans, allowance for credit losses | $ 74,459 | $ 65,917 | $ 50,509 | $ 47,547 | ||
Deferred tax assets, net | 46,732 | 48,355 | ||||
Retained earnings | 380,270 | 357,797 | ||||
Unfunded Loan Commitment | ||||||
Business Acquisition [Line Items] | ||||||
Loans, allowance for credit losses | $ 1,117 | $ 1,313 | ||||
FirstSun Capital Bancorp and Pioneer Bancshares, Inc. Merger | ||||||
Business Acquisition [Line Items] | ||||||
Shares issuable in merger (in shares) | 1.0443 | |||||
Accounting Standards Update 2016-13 | Revision of Prior Period, Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Loans, allowance for credit losses | $ 5,300 | |||||
Deferred tax assets, net | 1,200 | |||||
Retained earnings | (3,800) | |||||
Accounting Standards Update 2016-13 | Revision of Prior Period, Adjustment | Unfunded Loan Commitment | ||||||
Business Acquisition [Line Items] | ||||||
Loans, allowance for credit losses | $ (200) |
Merger with Pioneer Bancshare_3
Merger with Pioneer Bancshares, Inc. - Narrative (Details) - FirstSun Capital Bancorp and Pioneer Bancshares, Inc. Merger $ in Thousands | Apr. 01, 2022 USD ($) shares |
Business Acquisition [Line Items] | |
Business acquisition, shares issuable in merger (in shares) | shares | 1.0443 |
Business acquisition, number of shares issued (in shares) | shares | 6,467,466 |
Business acquisition, equity interest issued | $ 230,760 |
Business acquisition, consideration transferred, stock options converted, number of shares (in shares) | shares | 431,645 |
Business acquisition, consideration transferred, stock options converted | $ 5,334 |
Payments to acquire businesses | 4,736 |
Business acquisition, aggregate consideration | $ 240,830 |
Merger with Pioneer Bancshare_4
Merger with Pioneer Bancshares, Inc. - Estimated Fair Values of the Assets Acquired and Liabilities Assumed in this Transaction (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Mar. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 93,483 | $ 93,483 | |
FirstSun Capital Bancorp and Pioneer Bancshares, Inc. Merger | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 449,278 | ||
Investment securities | 157,859 | ||
Loans held-for-sale | 2,923 | ||
Loans | 811,300 | ||
Premises and equipment | 39,935 | ||
Bank-owned life insurance | 21,382 | ||
Restricted equity securities | 9,320 | ||
Core deposits and other intangible assets | 11,771 | ||
Accrued interest receivable | 3,947 | ||
Deferred tax assets | 19,752 | ||
Prepaid expenses and other assets | 7,317 | ||
Total assets acquired | 1,534,784 | ||
Deposits | 1,192,081 | ||
Federal Home Loan Bank advances | 159,924 | ||
Accrued interest payable | 407 | ||
Accrued expenses and other liabilities | 1,975 | ||
Total liabilities assumed | 1,354,387 | ||
Fair value of net assets acquired | 180,397 | ||
Purchase price | 240,830 | ||
Goodwill | $ 60,433 |
Merger with Pioneer Bancshare_5
Merger with Pioneer Bancshares, Inc. - Fair Value and Contractual Value of Loans (Details) $ in Thousands | Apr. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Acquired Loans | $ 811,300 |
Contractual Principal Balance | 821,838 |
Commercial and industrial | |
Business Acquisition [Line Items] | |
Acquired Loans | 98,351 |
Contractual Principal Balance | 98,752 |
Commercial real estate | |
Business Acquisition [Line Items] | |
Acquired Loans | 509,173 |
Contractual Principal Balance | 516,341 |
Residential real estate | |
Business Acquisition [Line Items] | |
Acquired Loans | 173,094 |
Contractual Principal Balance | 174,763 |
Consumer | |
Business Acquisition [Line Items] | |
Acquired Loans | 30,682 |
Contractual Principal Balance | $ 31,982 |
Merger with Pioneer Bancshare_6
Merger with Pioneer Bancshares, Inc. - Supplemental Pro Forma Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) $ / shares | |
Business Combination and Asset Acquisition [Abstract] | |
Net interest income | $ 51,436 |
Provision for credit losses | 2,850 |
Net interest income after provision for credit losses | 48,586 |
Noninterest income | 25,120 |
Noninterest expenses | 42,648 |
Income before income taxes | 31,058 |
Provision for income taxes | 5,810 |
Net income | 25,248 |
Earnings per share: | |
Net income available to common stockholders, basic | 25,248 |
Net income available to common stockholders, diluted | $ 25,248 |
Basic (in dollars per share) | $ / shares | $ 1.02 |
Diluted (in dollars per share) | $ / shares | $ 0.99 |
Securities - Schedule of Securi
Securities - Schedule of Securities by Type (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | $ 590,744 | $ 598,073 |
Gross Unrealized Gains | 3 | 6 |
Gross Unrealized Losses | (58,097) | (61,106) |
Estimated Fair Value | 532,650 | 536,973 |
Total held-to-maturity | 38,470 | 38,901 |
Gross Unrealized Gains | 8 | 9 |
Gross Unrealized Losses | (4,976) | (5,692) |
Estimated Fair Value | 33,502 | 33,218 |
U.S. treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 62,000 | 62,010 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,631) | (5,361) |
Estimated Fair Value | 57,369 | 56,649 |
U.S. agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 2,421 | 2,881 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (38) | (47) |
Estimated Fair Value | 2,383 | 2,834 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 29,935 | 29,897 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,207) | (4,998) |
Estimated Fair Value | 25,728 | 24,899 |
Total held-to-maturity | 25,418 | 25,378 |
Gross Unrealized Gains | 5 | 5 |
Gross Unrealized Losses | (4,097) | (4,891) |
Estimated Fair Value | 21,326 | 20,492 |
Mortgage backed - residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 126,469 | 129,955 |
Gross Unrealized Gains | 3 | 6 |
Gross Unrealized Losses | (15,194) | (13,826) |
Estimated Fair Value | 111,278 | 116,135 |
Total held-to-maturity | 8,478 | 8,705 |
Gross Unrealized Gains | 3 | 4 |
Gross Unrealized Losses | (616) | (511) |
Estimated Fair Value | 7,865 | 8,198 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 220,713 | 225,559 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19,579) | (21,294) |
Estimated Fair Value | 201,134 | 204,265 |
Total held-to-maturity | 4,574 | 4,818 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (263) | (290) |
Estimated Fair Value | 4,311 | 4,528 |
Mortgage backed - commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 132,427 | 130,997 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (12,794) | (13,661) |
Estimated Fair Value | 119,633 | 117,336 |
Other debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale | 16,779 | 16,774 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,654) | (1,919) |
Estimated Fair Value | $ 15,125 | $ 14,855 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Allowance for credit losses | $ 0 | ||
Proceeds from sale and maturity of securities | 0 | $ 0 | |
Asset Pledged as Collateral without Right | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt securities, carrying value | $ 435,916 | $ 428,721 |
Securities - Debt Securities wi
Securities - Debt Securities with Unrealized Losses in Continuous Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Available-for-sale securities | ||
Estimated Fair Value | $ 60,138 | $ 296,224 |
Unrealized Losses | (1,667) | (20,715) |
Estimated Fair Value | 469,910 | 239,756 |
Unrealized Losses | (56,430) | (40,391) |
Estimated Fair Value | 530,048 | 535,980 |
Unrealized Losses | $ (58,097) | $ (61,106) |
Number of Securities | security | 219 | 219 |
Held-to-maturity: | ||
Estimated Fair Value | $ 0 | $ 32,273 |
Unrealized Losses | 0 | (5,677) |
Estimated Fair Value | 32,973 | 401 |
Unrealized Losses | (4,976) | (15) |
Estimated Fair Value | 32,973 | 32,674 |
Gross Unrealized Losses | $ (4,976) | $ (5,692) |
Number of Securities | security | 23 | 23 |
U.S. treasury | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 0 | $ 25,702 |
Unrealized Losses | 0 | (967) |
Estimated Fair Value | 57,369 | 30,947 |
Unrealized Losses | (4,631) | (4,394) |
Estimated Fair Value | 57,369 | 56,649 |
Unrealized Losses | $ (4,631) | $ (5,361) |
Number of Securities | security | 10 | 10 |
U.S. agency | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 0 | $ 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 2,383 | 2,834 |
Unrealized Losses | (38) | (47) |
Estimated Fair Value | 2,383 | 2,834 |
Unrealized Losses | $ (38) | $ (47) |
Number of Securities | security | 7 | 7 |
Obligations of states and political subdivisions | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 2,070 | $ 21,676 |
Unrealized Losses | (204) | (3,784) |
Estimated Fair Value | 23,188 | 2,753 |
Unrealized Losses | (4,003) | (1,214) |
Estimated Fair Value | 25,258 | 24,429 |
Unrealized Losses | $ (4,207) | $ (4,998) |
Number of Securities | security | 18 | 18 |
Held-to-maturity: | ||
Estimated Fair Value | $ 0 | $ 20,153 |
Unrealized Losses | 0 | (4,891) |
Estimated Fair Value | 20,986 | 0 |
Unrealized Losses | (4,097) | 0 |
Estimated Fair Value | 20,986 | 20,153 |
Gross Unrealized Losses | $ (4,097) | $ (4,891) |
Number of Securities | security | 8 | 8 |
Mortgage backed - residential | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 3,770 | $ 51,921 |
Unrealized Losses | (177) | (2,939) |
Estimated Fair Value | 107,133 | 63,691 |
Unrealized Losses | (15,017) | (10,887) |
Estimated Fair Value | 110,903 | 115,612 |
Unrealized Losses | $ (15,194) | $ (13,826) |
Number of Securities | security | 87 | 87 |
Held-to-maturity: | ||
Estimated Fair Value | $ 0 | $ 7,993 |
Unrealized Losses | 0 | (511) |
Estimated Fair Value | 7,676 | 0 |
Unrealized Losses | (616) | 0 |
Estimated Fair Value | 7,676 | 7,993 |
Gross Unrealized Losses | $ (616) | $ (511) |
Number of Securities | security | 10 | 10 |
Collateralized mortgage obligations | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 49,441 | $ 111,360 |
Unrealized Losses | (1,270) | (4,631) |
Estimated Fair Value | 151,693 | 92,905 |
Unrealized Losses | (18,309) | (16,663) |
Estimated Fair Value | 201,134 | 204,265 |
Unrealized Losses | $ (19,579) | $ (21,294) |
Number of Securities | security | 66 | 66 |
Held-to-maturity: | ||
Estimated Fair Value | $ 0 | $ 4,127 |
Unrealized Losses | 0 | (275) |
Estimated Fair Value | 4,311 | 401 |
Unrealized Losses | (263) | (15) |
Estimated Fair Value | 4,311 | 4,528 |
Gross Unrealized Losses | $ (263) | $ (290) |
Number of Securities | security | 5 | 5 |
Mortgage backed - commercial | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 4,857 | $ 70,710 |
Unrealized Losses | (16) | (6,475) |
Estimated Fair Value | 113,019 | 46,626 |
Unrealized Losses | (12,778) | (7,186) |
Estimated Fair Value | 117,876 | 117,336 |
Unrealized Losses | $ (12,794) | $ (13,661) |
Number of Securities | security | 22 | 22 |
Other debt | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 0 | $ 14,855 |
Unrealized Losses | 0 | (1,919) |
Estimated Fair Value | 15,125 | 0 |
Unrealized Losses | (1,654) | 0 |
Estimated Fair Value | 15,125 | 14,855 |
Unrealized Losses | $ (1,654) | $ (1,919) |
Number of Securities | security | 9 | 9 |
Securities - Schedule of Secu_2
Securities - Schedule of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due within 1 year | $ 9,529 | |
Due after 1 year through 5 years | 52,192 | |
Due after 5 years through 10 years | 163,650 | |
Due after 10 years | 365,373 | |
Total available-for-sale | 590,744 | $ 598,073 |
Estimated Fair Value | ||
Due within 1 year | 9,318 | |
Due after 1 year through 5 years | 49,286 | |
Due after 5 years through 10 years | 147,347 | |
Due after 10 years | 326,699 | |
Total available-for-sale | 532,650 | 536,973 |
Amortized Cost | ||
Due after 1 year through 5 years | 1,111 | |
Due after 5 years through 10 years | 800 | |
Due after 10 years | 36,559 | |
Total held-to-maturity | 38,470 | 38,901 |
Estimated Fair Value | ||
Due after 1 year through 5 years | 1,081 | |
Due after 5 years through 10 years | 768 | |
Due after 10 years | 31,653 | |
Total held-to-maturity | $ 33,502 | $ 33,218 |
Loans - Loans Held for Investme
Loans - Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 6,060,975 | $ 5,928,933 | ||
Allowance for credit losses | (74,459) | (65,917) | $ (50,509) | $ (47,547) |
Total loans, net | 5,986,516 | 5,845,915 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 5,911,832 | |||
Allowance for credit losses | (65,917) | |||
Total loans, net | 5,845,915 | |||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,418,771 | 3,025,074 | ||
Allowance for credit losses | (28,545) | (40,785) | (33,009) | (31,622) |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,310,929 | |||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,793,936 | 1,753,360 | ||
Allowance for credit losses | (24,186) | (19,754) | (14,566) | (13,198) |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,845,703 | |||
Commercial real estate | Non-Owner Occupied Loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 709,977 | |||
Commercial real estate | Non-Owner Occupied Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 779,546 | |||
Commercial real estate | Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 659,999 | |||
Commercial real estate | Owner occupied | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 636,272 | |||
Commercial real estate | Construction and land | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 320,193 | |||
Commercial real estate | Construction and land | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 327,817 | |||
Commercial real estate | Multifamily | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 103,767 | |||
Commercial real estate | Multifamily | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 102,068 | |||
Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,046,047 | 1,106,793 | ||
Allowance for credit losses | (14,165) | (2,963) | (997) | (836) |
Residential real estate | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,003,931 | |||
Public finance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 597,850 | |||
Allowance for credit losses | (5,549) | (1,664) | (1,611) | (1,544) |
Public finance | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 590,284 | |||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 40,806 | 43,706 | ||
Allowance for credit losses | (676) | (352) | (233) | (235) |
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 42,588 | |||
Other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 163,565 | |||
Allowance for credit losses | $ (1,338) | (399) | $ (93) | $ (112) |
Other | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 118,397 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Deferred fees, costs, premiums and discounts on loan portfolio | $ 16,172 | $ 17,101 | ||
Accrued interest receivable on loans | 26,666 | 26,494 | ||
Loans, allowance for credit losses | 74,459 | $ 50,509 | 65,917 | $ 47,547 |
Provision (benefit) for credit losses | 3,360 | 3,700 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans, allowance for credit losses | 28,545 | 33,009 | 40,785 | $ 31,622 |
Unfunded Loan Commitment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans, allowance for credit losses | 1,117 | $ 1,313 | ||
Provision (benefit) for credit losses | $ 20 | $ 125 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses by Portfolio Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for loan losses | ||
Balance, beginning of period | $ 65,917 | $ 47,547 |
Provision for (benefit from) credit losses | 3,340 | 3,700 |
Loans charged off | (123) | (1,029) |
Recoveries | 69 | 291 |
Balance, end of period | 74,459 | 50,509 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | 5,256 | |
Commercial and industrial | ||
Allowance for loan losses | ||
Balance, beginning of period | 40,785 | 31,622 |
Provision for (benefit from) credit losses | 1,346 | 2,213 |
Loans charged off | (59) | (1,003) |
Recoveries | 56 | 177 |
Balance, end of period | 28,545 | 33,009 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | (13,583) | |
Commercial Real Estate | ||
Allowance for loan losses | ||
Balance, beginning of period | 19,754 | 13,198 |
Provision for (benefit from) credit losses | 562 | 1,368 |
Loans charged off | 0 | 0 |
Recoveries | 3 | 0 |
Balance, end of period | 24,186 | 14,566 |
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | 3,867 | |
Residential real estate | ||
Allowance for loan losses | ||
Balance, beginning of period | 2,963 | 836 |
Provision for (benefit from) credit losses | 946 | 63 |
Loans charged off | 0 | 0 |
Recoveries | 0 | 98 |
Balance, end of period | 14,165 | 997 |
Residential real estate | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | 10,256 | |
Public finance | ||
Allowance for loan losses | ||
Balance, beginning of period | 1,664 | 1,544 |
Provision for (benefit from) credit losses | (5) | 67 |
Loans charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 5,549 | 1,611 |
Public finance | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | 3,890 | |
Consumer | ||
Allowance for loan losses | ||
Balance, beginning of period | 352 | 235 |
Provision for (benefit from) credit losses | 129 | 8 |
Loans charged off | (64) | (26) |
Recoveries | 10 | 16 |
Balance, end of period | 676 | 233 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | 249 | |
Other | ||
Allowance for loan losses | ||
Balance, beginning of period | 399 | 112 |
Provision for (benefit from) credit losses | 362 | (19) |
Loans charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 1,338 | $ 93 |
Other | Cumulative Effect, Period of Adoption, Adjustment | ||
Allowance for loan losses | ||
Balance, beginning of period | $ 577 |
Loans - Aging of Loan Portfolio
Loans - Aging of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | $ 2,848 | $ 98 |
Nonaccrual | 29,985 | 28,969 |
Total loans | 6,060,975 | 5,928,933 |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 5,911,832 | |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 580 | 0 |
Nonaccrual | 10,410 | 9,494 |
Total loans | 2,418,771 | 3,025,074 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,310,929 | |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 2,268 | 0 |
Nonaccrual | 7,155 | 8,283 |
Total loans | 1,793,936 | 1,753,360 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,845,703 | |
Commercial real estate | Non-Owner Occupied Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 2,268 | 0 |
Nonaccrual | 2,138 | 2,148 |
Total loans | 709,977 | |
Commercial real estate | Non-Owner Occupied Loans | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 779,546 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 4,819 | 5,937 |
Total loans | 659,999 | |
Commercial real estate | Owner occupied | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 636,272 | |
Commercial real estate | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 198 | 198 |
Total loans | 320,193 | |
Commercial real estate | Construction and land | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 327,817 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans | 103,767 | |
Commercial real estate | Multifamily | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 102,068 | |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 98 |
Nonaccrual | 11,885 | 10,628 |
Total loans | 1,046,047 | 1,106,793 |
Residential real estate | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,003,931 | |
Public finance | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total loans | 597,850 | |
Public finance | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 590,284 | |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 68 | 93 |
Total loans | 40,806 | 43,706 |
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 42,588 | |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 467 | 471 |
Total loans | 163,565 | |
Other | Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 118,397 | |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 5,990,799 | 5,853,634 |
Loans Not Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,399,390 | 2,298,207 |
Loans Not Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,776,299 | 1,830,333 |
Loans Not Past Due | Commercial real estate | Non-Owner Occupied Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 705,029 | 773,042 |
Loans Not Past Due | Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 653,268 | 630,335 |
Loans Not Past Due | Commercial real estate | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 315,193 | 324,888 |
Loans Not Past Due | Commercial real estate | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 102,809 | 102,068 |
Loans Not Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,016,009 | 974,450 |
Loans Not Past Due | Public finance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 597,850 | 590,284 |
Loans Not Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 40,625 | 42,434 |
Loans Not Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 160,626 | 117,926 |
Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 29,276 | 26,686 |
Loans 30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,560 | 2,409 |
Loans 30-59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,013 | 6,988 |
Loans 30-59 Days Past Due | Commercial real estate | Non-Owner Occupied Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 299 | 4,356 |
Loans 30-59 Days Past Due | Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,912 | 0 |
Loans 30-59 Days Past Due | Commercial real estate | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,802 | 2,632 |
Loans 30-59 Days Past Due | Commercial real estate | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Loans 30-59 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 18,118 | 17,231 |
Loans 30-59 Days Past Due | Public finance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Loans 30-59 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 113 | 58 |
Loans 30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,472 | 0 |
Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 8,067 | 2,445 |
Loans 60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,831 | 819 |
Loans 60-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,201 | 99 |
Loans 60-89 Days Past Due | Commercial real estate | Non-Owner Occupied Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 243 | 0 |
Loans 60-89 Days Past Due | Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Loans 60-89 Days Past Due | Commercial real estate | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 99 |
Loans 60-89 Days Past Due | Commercial real estate | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 958 | 0 |
Loans 60-89 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 35 | 1,524 |
Loans 60-89 Days Past Due | Public finance | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Loans 60-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 3 |
Loans 60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans - Amortized Costs by Segm
Loans - Amortized Costs by Segment of Loans by Risk Category and Origination Date (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | $ 288,954 | |
2022 | 1,823,217 | |
2021 | 982,929 | |
2020 | 676,844 | |
2019 | 515,600 | |
Prior | 728,155 | |
Term Total | 5,015,699 | |
Revolving | 1,045,276 | |
Total | 6,060,975 | $ 5,928,933 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 59 | |
2021 | 11 | |
2020 | 1 | |
2019 | 3 | |
Prior | 17 | |
Term Total | 91 | |
Revolving | 32 | |
Total | 123 | |
Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 285,987 | |
2022 | 1,757,364 | |
2021 | 914,967 | |
2020 | 652,940 | |
2019 | 496,032 | |
Prior | 637,939 | |
Term Total | 4,745,229 | |
Revolving | 1,028,530 | |
Total | 5,773,759 | 5,824,901 |
Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 2,063 | |
2022 | 22,188 | |
2021 | 6,992 | |
2020 | 3,977 | |
2019 | 2,813 | |
Prior | 45,160 | |
Term Total | 83,193 | |
Revolving | 3,723 | |
Total | 86,916 | |
Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 737 | |
2022 | 16,351 | |
2021 | 34,547 | |
2020 | 3,375 | |
2019 | 2,842 | |
Prior | 7,787 | |
Term Total | 65,639 | |
Revolving | 7,837 | |
Total | 73,476 | |
Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 167 | |
2022 | 23,793 | |
2021 | 23,500 | |
2020 | 12,092 | |
2019 | 11,294 | |
Prior | 20,847 | |
Term Total | 91,693 | |
Revolving | 5,146 | |
Total | 96,839 | |
Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 3,521 | |
2021 | 2,362 | |
2020 | 4,460 | |
2019 | 2,619 | |
Prior | 16,422 | |
Term Total | 29,384 | |
Revolving | 40 | |
Total | 29,424 | |
Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 561 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 561 | |
Revolving | 0 | |
Total | 561 | |
Commercial and industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 163,672 | |
2022 | 806,303 | |
2021 | 394,063 | |
2020 | 157,046 | |
2019 | 56,956 | |
Prior | 52,691 | |
Term Total | 1,630,731 | |
Revolving | 788,040 | |
Total | 2,418,771 | 3,025,074 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 59 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 59 | |
Revolving | 0 | |
Total | 59 | |
Commercial and industrial | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 162,090 | |
2022 | 745,860 | |
2021 | 345,908 | |
2020 | 145,402 | |
2019 | 53,297 | |
Prior | 38,696 | |
Term Total | 1,491,253 | |
Revolving | 773,035 | |
Total | 2,264,288 | 2,969,786 |
Commercial and industrial | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 685 | |
2022 | 20,343 | |
2021 | 2,636 | |
2020 | 2,427 | |
2019 | 583 | |
Prior | 3,880 | |
Term Total | 30,554 | |
Revolving | 2,023 | |
Total | 32,577 | |
Commercial and industrial | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 737 | |
2022 | 15,769 | |
2021 | 32,256 | |
2020 | 722 | |
2019 | 733 | |
Prior | 2,354 | |
Term Total | 52,571 | |
Revolving | 7,837 | |
Total | 60,408 | |
Commercial and industrial | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 160 | |
2022 | 23,793 | |
2021 | 10,818 | |
2020 | 4,954 | |
2019 | 2,343 | |
Prior | 3,875 | |
Term Total | 45,943 | |
Revolving | 5,145 | |
Total | 51,088 | |
Commercial and industrial | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 538 | |
2021 | 1,884 | |
2020 | 3,541 | |
2019 | 0 | |
Prior | 3,886 | |
Term Total | 9,849 | |
Revolving | 0 | |
Total | 9,849 | |
Commercial and industrial | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 561 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 561 | |
Revolving | 0 | |
Total | 561 | |
Commercial real estate | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 67,703 | |
2022 | 409,365 | |
2021 | 409,374 | |
2020 | 287,529 | |
2019 | 188,995 | |
Prior | 333,602 | |
Term Total | 1,696,568 | |
Revolving | 97,368 | |
Total | 1,793,936 | 1,753,360 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial real estate | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 66,325 | |
2022 | 408,579 | |
2021 | 398,881 | |
2020 | 276,120 | |
2019 | 176,625 | |
Prior | 268,181 | |
Term Total | 1,594,711 | |
Revolving | 95,718 | |
Total | 1,690,429 | 1,715,415 |
Commercial real estate | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 1,378 | |
2022 | 204 | |
2021 | 1,420 | |
2020 | 1,445 | |
2019 | 1,465 | |
Prior | 37,803 | |
Term Total | 43,715 | |
Revolving | 1,650 | |
Total | 45,365 | |
Commercial real estate | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 582 | |
2021 | 2,291 | |
2020 | 2,643 | |
2019 | 1,850 | |
Prior | 3,925 | |
Term Total | 11,291 | |
Revolving | 0 | |
Total | 11,291 | |
Commercial real estate | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 6,782 | |
2020 | 7,123 | |
2019 | 8,951 | |
Prior | 16,840 | |
Term Total | 39,696 | |
Revolving | 0 | |
Total | 39,696 | |
Commercial real estate | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 198 | |
2019 | 104 | |
Prior | 6,853 | |
Term Total | 7,155 | |
Revolving | 0 | |
Total | 7,155 | |
Commercial real estate | Non-Owner Occupied Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 6,913 | |
2022 | 152,332 | |
2021 | 121,182 | |
2020 | 119,163 | |
2019 | 94,751 | |
Prior | 183,065 | |
Term Total | 677,406 | |
Revolving | 32,571 | |
Total | 709,977 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial real estate | Non-Owner Occupied Loans | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 6,913 | |
2022 | 152,332 | |
2021 | 118,258 | |
2020 | 119,163 | |
2019 | 94,647 | |
Prior | 141,349 | |
Term Total | 632,662 | |
Revolving | 32,571 | |
Total | 665,233 | |
Commercial real estate | Non-Owner Occupied Loans | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 29,709 | |
Term Total | 29,709 | |
Revolving | 0 | |
Total | 29,709 | |
Commercial real estate | Non-Owner Occupied Loans | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 7 | |
Term Total | 7 | |
Revolving | 0 | |
Total | 7 | |
Commercial real estate | Non-Owner Occupied Loans | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,924 | |
2020 | 0 | |
2019 | 0 | |
Prior | 9,966 | |
Term Total | 12,890 | |
Revolving | 0 | |
Total | 12,890 | |
Commercial real estate | Non-Owner Occupied Loans | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 104 | |
Prior | 2,034 | |
Term Total | 2,138 | |
Revolving | 0 | |
Total | 2,138 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 39,177 | |
2022 | 116,033 | |
2021 | 155,356 | |
2020 | 118,951 | |
2019 | 75,011 | |
Prior | 142,546 | |
Term Total | 647,074 | |
Revolving | 12,925 | |
Total | 659,999 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial real estate | Owner occupied | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 37,799 | |
2022 | 115,829 | |
2021 | 149,207 | |
2020 | 108,364 | |
2019 | 62,745 | |
Prior | 118,859 | |
Term Total | 592,803 | |
Revolving | 11,275 | |
Total | 604,078 | |
Commercial real estate | Owner occupied | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 1,378 | |
2022 | 204 | |
2021 | 0 | |
2020 | 1,445 | |
2019 | 1,465 | |
Prior | 8,076 | |
Term Total | 12,568 | |
Revolving | 1,650 | |
Total | 14,218 | |
Commercial real estate | Owner occupied | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,291 | |
2020 | 2,019 | |
2019 | 1,850 | |
Prior | 3,918 | |
Term Total | 10,078 | |
Revolving | 0 | |
Total | 10,078 | |
Commercial real estate | Owner occupied | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 3,858 | |
2020 | 7,123 | |
2019 | 8,951 | |
Prior | 6,874 | |
Term Total | 26,806 | |
Revolving | 0 | |
Total | 26,806 | |
Commercial real estate | Owner occupied | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 4,819 | |
Term Total | 4,819 | |
Revolving | 0 | |
Total | 4,819 | |
Commercial real estate | Construction and land | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 17,522 | |
2022 | 104,232 | |
2021 | 96,275 | |
2020 | 36,281 | |
2019 | 13,094 | |
Prior | 6,488 | |
Term Total | 273,892 | |
Revolving | 46,301 | |
Total | 320,193 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial real estate | Construction and land | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 17,522 | |
2022 | 103,650 | |
2021 | 94,855 | |
2020 | 35,459 | |
2019 | 13,094 | |
Prior | 6,470 | |
Term Total | 271,050 | |
Revolving | 46,301 | |
Total | 317,351 | |
Commercial real estate | Construction and land | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 1,420 | |
2020 | 0 | |
2019 | 0 | |
Prior | 18 | |
Term Total | 1,438 | |
Revolving | 0 | |
Total | 1,438 | |
Commercial real estate | Construction and land | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 582 | |
2021 | 0 | |
2020 | 624 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 1,206 | |
Revolving | 0 | |
Total | 1,206 | |
Commercial real estate | Construction and land | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 198 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 198 | |
Revolving | 0 | |
Total | 198 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 4,091 | |
2022 | 36,768 | |
2021 | 36,561 | |
2020 | 13,134 | |
2019 | 6,139 | |
Prior | 1,503 | |
Term Total | 98,196 | |
Revolving | 5,571 | |
Total | 103,767 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Commercial real estate | Multifamily | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 4,091 | |
2022 | 36,768 | |
2021 | 36,561 | |
2020 | 13,134 | |
2019 | 6,139 | |
Prior | 1,503 | |
Term Total | 98,196 | |
Revolving | 5,571 | |
Total | 103,767 | |
Residential real estate | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 39,960 | |
2022 | 577,782 | |
2021 | 104,766 | |
2020 | 48,146 | |
2019 | 48,215 | |
Prior | 187,161 | |
Term Total | 1,006,030 | |
Revolving | 40,017 | |
Total | 1,046,047 | 1,106,793 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Residential real estate | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 39,960 | |
2022 | 573,226 | |
2021 | 104,686 | |
2020 | 47,425 | |
2019 | 44,940 | |
Prior | 176,588 | |
Term Total | 986,825 | |
Revolving | 39,979 | |
Total | 1,026,804 | 1,096,108 |
Residential real estate | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 1,573 | |
2021 | 69 | |
2020 | 0 | |
2019 | 567 | |
Prior | 3,250 | |
Term Total | 5,459 | |
Revolving | 0 | |
Total | 5,459 | |
Residential real estate | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 259 | |
Prior | 1,508 | |
Term Total | 1,767 | |
Revolving | 0 | |
Total | 1,767 | |
Residential real estate | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 132 | |
Term Total | 132 | |
Revolving | 0 | |
Total | 132 | |
Residential real estate | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 2,983 | |
2021 | 11 | |
2020 | 721 | |
2019 | 2,449 | |
Prior | 5,683 | |
Term Total | 11,847 | |
Revolving | 38 | |
Total | 11,885 | |
Public finance | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 16,839 | |
2022 | 12,488 | |
2021 | 44,299 | |
2020 | 169,871 | |
2019 | 213,739 | |
Prior | 140,614 | |
Term Total | 597,850 | |
Revolving | 0 | |
Total | 597,850 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Public finance | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 16,839 | |
2022 | 12,488 | |
2021 | 44,299 | |
2020 | 169,871 | |
2019 | 213,739 | |
Prior | 140,614 | |
Term Total | 597,850 | |
Revolving | 0 | |
Total | 597,850 | |
Consumer | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 771 | |
2022 | 3,729 | |
2021 | 6,777 | |
2020 | 11,068 | |
2019 | 4,529 | |
Prior | 3,618 | |
Term Total | 30,492 | |
Revolving | 10,314 | |
Total | 40,806 | 43,706 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 11 | |
2020 | 1 | |
2019 | 3 | |
Prior | 17 | |
Term Total | 32 | |
Revolving | 32 | |
Total | 64 | |
Consumer | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 764 | |
2022 | 3,661 | |
2021 | 6,606 | |
2020 | 10,938 | |
2019 | 4,265 | |
Prior | 3,391 | |
Term Total | 29,625 | |
Revolving | 10,261 | |
Total | 39,886 | $ 43,592 |
Consumer | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 68 | |
2021 | 171 | |
2020 | 105 | |
2019 | 198 | |
Prior | 227 | |
Term Total | 769 | |
Revolving | 50 | |
Total | 819 | |
Consumer | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 10 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 10 | |
Revolving | 0 | |
Total | 10 | |
Consumer | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 7 | |
2022 | 0 | |
2021 | 0 | |
2020 | 15 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 22 | |
Revolving | 1 | |
Total | 23 | |
Consumer | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 66 | |
Prior | 0 | |
Term Total | 66 | |
Revolving | 2 | |
Total | 68 | |
Other | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 9 | |
2022 | 13,550 | |
2021 | 23,650 | |
2020 | 3,184 | |
2019 | 3,166 | |
Prior | 10,469 | |
Term Total | 54,028 | |
Revolving | 109,537 | |
Total | 163,565 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Other | Pass/Watch | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 2,696 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 2,696 | |
Revolving | 0 | |
Total | 2,696 | |
Other | Substandard - Accruing | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 5,900 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 5,900 | |
Revolving | 0 | |
Total | 5,900 | |
Other | Substandard - Nonaccrual | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 467 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 467 | |
Revolving | 0 | |
Total | 467 | |
Other | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 9 | |
2022 | 13,550 | |
2021 | 14,587 | |
2020 | 3,184 | |
2019 | 3,166 | |
Prior | 10,469 | |
Term Total | 44,965 | |
Revolving | 109,537 | |
Total | $ 154,502 |
Loans - Credit Risk Profile Of
Loans - Credit Risk Profile Of Loan Portfolio Prior to Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 6,060,975 | $ 5,928,933 |
Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,773,759 | 5,824,901 |
Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 104,032 | |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,418,771 | 3,025,074 |
Commercial and industrial | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,264,288 | 2,969,786 |
Commercial and industrial | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 55,288 | |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,793,936 | 1,753,360 |
Commercial real estate | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,690,429 | 1,715,415 |
Commercial real estate | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 37,945 | |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,046,047 | 1,106,793 |
Residential real estate | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,026,804 | 1,096,108 |
Residential real estate | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 10,685 | |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 40,806 | 43,706 |
Consumer | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 39,886 | 43,592 |
Consumer | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 114 |
Loans - Collateral Dependent Lo
Loans - Collateral Dependent Loans, Individually Evaluated for Allowance for Credit Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 6,060,975 | $ 5,928,933 | ||
Loans, allowance for credit losses | 74,459 | 65,917 | $ 50,509 | $ 47,547 |
Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 6,007 | 8,053 | ||
Loans with allowance, related allowance | 2,540 | 1,412 | ||
Loans with no related allowance, amortized cost | 23,978 | 20,905 | ||
Total loans | 29,985 | 28,958 | ||
Loans, allowance for credit losses | 2,540 | 1,412 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,418,771 | 3,025,074 | ||
Loans, allowance for credit losses | 28,545 | 40,785 | 33,009 | 31,622 |
Commercial and industrial | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 4,027 | 6,330 | ||
Loans with allowance, related allowance | 2,215 | 1,101 | ||
Loans with no related allowance, amortized cost | 6,383 | 3,164 | ||
Total loans | 10,410 | 9,494 | ||
Loans, allowance for credit losses | 2,215 | 1,101 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,793,936 | 1,753,360 | ||
Loans, allowance for credit losses | 24,186 | 19,754 | 14,566 | 13,198 |
Commercial real estate | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 716 | 796 | ||
Loans with allowance, related allowance | 216 | 189 | ||
Loans with no related allowance, amortized cost | 6,439 | 7,487 | ||
Total loans | 7,155 | 8,283 | ||
Loans, allowance for credit losses | 216 | 189 | ||
Commercial real estate | Non-Owner Occupied Loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 709,977 | |||
Commercial real estate | Non-Owner Occupied Loans | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 104 | 115 | ||
Loans with allowance, related allowance | 30 | 36 | ||
Loans with no related allowance, amortized cost | 2,033 | 2,033 | ||
Total loans | 2,137 | 2,148 | ||
Loans, allowance for credit losses | 30 | 36 | ||
Commercial real estate | Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 659,999 | |||
Commercial real estate | Owner occupied | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 612 | 681 | ||
Loans with allowance, related allowance | 186 | 153 | ||
Loans with no related allowance, amortized cost | 4,208 | 5,256 | ||
Total loans | 4,820 | 5,937 | ||
Loans, allowance for credit losses | 186 | 153 | ||
Commercial real estate | Construction and land | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 320,193 | |||
Commercial real estate | Construction and land | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 0 | 0 | ||
Loans with allowance, related allowance | 0 | 0 | ||
Loans with no related allowance, amortized cost | 198 | 198 | ||
Total loans | 198 | 198 | ||
Loans, allowance for credit losses | 0 | 0 | ||
Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,046,047 | 1,106,793 | ||
Loans, allowance for credit losses | 14,165 | 2,963 | 997 | 836 |
Residential real estate | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 1,196 | 836 | ||
Loans with allowance, related allowance | 41 | 34 | ||
Loans with no related allowance, amortized cost | 10,689 | 9,779 | ||
Total loans | 11,885 | 10,615 | ||
Loans, allowance for credit losses | 41 | 34 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 40,806 | 43,706 | ||
Loans, allowance for credit losses | 676 | 352 | 233 | 235 |
Consumer | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 68 | 91 | ||
Loans with allowance, related allowance | 68 | 88 | ||
Loans with no related allowance, amortized cost | 0 | 0 | ||
Total loans | 68 | 91 | ||
Loans, allowance for credit losses | 68 | 88 | ||
Other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 163,565 | |||
Loans, allowance for credit losses | 1,338 | 399 | $ 93 | $ 112 |
Other | Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans with related allowance, amortized cost | 0 | 0 | ||
Loans with allowance, related allowance | 0 | 0 | ||
Loans with no related allowance, amortized cost | 467 | 475 | ||
Total loans | 467 | 475 | ||
Loans, allowance for credit losses | $ 0 | $ 0 |
Mortgage Servicing Rights - Unp
Mortgage Servicing Rights - Unpaid Principal Loan Balance of Servicing Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Total | $ 5,229,053 | $ 5,177,404 |
Federal National Mortgage Association | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Total | 2,512,584 | 2,517,434 |
Federal Home Loan Mortgage Corporation | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Total | 1,645,733 | 1,630,403 |
Government National Mortgage Association | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Total | 959,565 | 916,455 |
Federal Home Loan Bank | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Total | 109,851 | 111,699 |
Other | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Total | $ 1,320 | $ 1,413 |
Mortgage Servicing Rights - Mor
Mortgage Servicing Rights - Mortgage Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 74,097 | $ 47,392 |
Servicing resulting from transfers of financial assets | 2,047 | 4,524 |
Changes in fair value: | ||
Due to changes in valuation inputs or assumptions used in the valuation model | (1,168) | 10,823 |
Changes in fair value due to pay-offs, pay-downs, and runoff | (1,552) | (2,258) |
Balance, end of period | $ 73,424 | $ 60,481 |
Mortgage Servicing Rights - Wei
Mortgage Servicing Rights - Weighted-average Key Assumptions to Estimate Fair Value of MSRs (Details) - uSDPerLoan | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |||
Discount rate | 9.87% | 9.24% | 9.85% |
Total prepayment speeds | 7.66% | 8.51% | 7.40% |
Cost of servicing each loan | 88 | 86 | 88 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Servicing and Ancillary Fees from Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Servicing fees | $ 3,622 | $ 3,219 |
Late and ancillary fees | 185 | 89 |
Total | $ 3,807 | $ 3,308 |
Derivative Financial Instrume_3
Derivative Financial Instruments - The Components Of Derivative Financial Instruments (Details) $ in Thousands | Mar. 31, 2023 USD ($) transaction | Dec. 31, 2022 USD ($) transaction |
Interest Rate Products | ||
Liabilities: | ||
Outstanding Notional | $ 79,234 | $ 52,533 |
Estimated Fair Value | $ (417) | $ 60 |
Interest Rate Products | Derivative financial instruments designated as hedging instruments: | ||
Assets | ||
Number of Transactions | transaction | 32 | 32 |
Outstanding Notional | $ 201,369 | $ 201,906 |
Estimated Fair Value | $ 12,073 | $ 15,636 |
Interest Rate Products | Derivative financial instruments not designated as hedging instruments: | ||
Assets | ||
Number of Transactions | transaction | 44 | 41 |
Outstanding Notional | $ 387,326 | $ 338,770 |
Estimated Fair Value | $ 20,325 | $ 24,615 |
Liabilities: | ||
Number of Transactions | transaction | 44 | 41 |
Outstanding Notional | $ 387,326 | $ 338,770 |
Estimated Fair Value | $ 20,277 | $ 24,242 |
Other Derivative Financial Instruments | Derivative financial instruments not designated as hedging instruments: | ||
Assets | ||
Number of Transactions | transaction | 1 | 1 |
Outstanding Notional | $ 14,638 | $ 14,638 |
Estimated Fair Value | 28 | 0 |
Forward MBS trades | ||
Assets | ||
Outstanding Notional | 45,300 | 85,000 |
Estimated Fair Value | 1,225 | 36 |
Liabilities: | ||
Outstanding Notional | 103,000 | 21,800 |
Estimated Fair Value | $ 976 | $ 225 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Fair value of derivatives in a net liability position | $ 20,768 | $ 24,677 | |
Posted collateral aggregate fair value | 7,840 | 8,790 | |
Derivative financial instruments not designated as hedging instruments: | |||
Derivative [Line Items] | |||
Fee income | 466 | $ 13 | |
Loans Receivable | |||
Derivative [Line Items] | |||
Carrying amount of hedged loans receivable | 184,541 | 181,377 | |
Cumulative amount of fair value hedging adjustment | (10,100) | (12,752) | |
Available-for-sale securities | |||
Derivative [Line Items] | |||
Carrying amount of hedged loans receivable | 36,940 | 35,869 | |
Cumulative amount of fair value hedging adjustment | $ (684) | $ 2,174 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gains And Losses On Banking Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Recorded (loss) gain on banking derivative assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded gain (loss) on banking derivative | $ (2,560) | $ 9,809 |
Recorded gain (loss) on banking derivative liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded gain (loss) on banking derivative | 2,256 | (9,364) |
Recorded gain on mortgage banking derivative assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded gain (loss) on banking derivative | 850 | 5,477 |
Recorded loss on mortgage banking derivative liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recorded gain (loss) on banking derivative | $ (535) | $ (12,576) |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statistical Disclosure for Banks [Abstract] | ||
Noninterest-bearing demand deposit accounts | $ 1,764,440 | $ 1,820,490 |
Interest-bearing deposit accounts: | ||
Interest-bearing demand accounts | 238,658 | 212,357 |
Savings accounts and money market accounts | 2,705,315 | 2,759,969 |
NOW accounts | 45,192 | 50,224 |
Certificate of deposit accounts: | ||
Less than $100 | 260,865 | 241,322 |
$100 through $250 | 294,787 | 270,790 |
Greater than $250 | 685,009 | 409,910 |
Total interest-bearing deposit accounts | 4,229,826 | 3,944,572 |
Total deposits | $ 5,994,266 | $ 5,765,062 |
Deposits - Interest Expense Inc
Deposits - Interest Expense Incurred on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest-bearing deposit accounts: | ||
Interest-bearing demand accounts | $ 1,175 | $ 94 |
Savings accounts and money market accounts | 5,513 | 931 |
NOW accounts | 59 | 30 |
Certificate of deposit accounts | 7,432 | 519 |
Total interest-bearing deposit accounts | $ 14,179 | $ 1,574 |
Deposits - Remaining Maturity o
Deposits - Remaining Maturity on Certificate of Deposit Accounts (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Maturities of Time Deposits [Abstract] | |
Remainder of 2023 | $ 769,272 |
2024 | 345,185 |
2025 | 107,777 |
2026 | 10,476 |
2027 | 4,321 |
2028 | 711 |
Thereafter | 2,919 |
Total certificate of deposit accounts | $ 1,240,661 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned [Abstract] | ||
Amount outstanding at period-end | $ 31,645 | $ 36,721 |
Average daily balance during the period | $ 29,672 | $ 54,335 |
Average interest rate during the period | 0.52% | 0.27% |
Maximum month-end balance during the period | $ 31,645 | $ 70,838 |
Weighted average interest rate at period-end | 0.62% | 0.42% |
Securities sold under agreements to repurchase, pledged securities | $ 41,629 | $ 48,931 |
Debt - FHLB Advances and Other
Debt - FHLB Advances and Other Borrowings Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Amount | $ 577,285 | $ 643,885 |
Variable rate line-of-credit advance | Federal Home Loan Bank stock | ||
Short-term Debt [Line Items] | ||
Amount | $ 577,285 | $ 643,885 |
Rate | 4.99% | 4.48% |
Weighted Average Rate | 4.70% | 3.91% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | ||||
Jan. 13, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Aug. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Conversion [Line Items] | |||||
Loans pledged to the FHLB | $ 1,677,445,000 | $ 1,630,939,000 | |||
Total borrowing capacity with the FHLB | 1,203,388,000 | 1,139,356,000 | |||
Additional borrowing availability with the FHLB | 480,369,000 | ||||
Trust preferred securities, aggregate liquidation valuation amount | 419,000 | ||||
Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust I (NMBCT I) | |||||
Debt Conversion [Line Items] | |||||
Debt instrument, face amount | 9,279,000 | ||||
Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust II (NMBCT II) | |||||
Debt Conversion [Line Items] | |||||
Debt instrument, face amount | 4,640,000 | ||||
Convertible Notes Payable | Convertible Debt | |||||
Debt Conversion [Line Items] | |||||
Debt instrument, face amount | $ 5,456,000 | ||||
Debt instrument, interest rate | 3.29% | ||||
Convertible debt, conversion ratio | 0.0156717 | ||||
Debt discount on the convertible notes | $ 63,000 | $ 101,000 | |||
Amortization of debt discount | 38,000 | $ 526,000 | |||
Subordinated Notes Due July 1, 2030 | Subordinated Debt | |||||
Debt Conversion [Line Items] | |||||
Debt instrument, face amount | $ 40,000,000 | ||||
Debt instrument, interest rate | 6% | ||||
Debt redemption period from issuance date | 5 years | ||||
Costs related to the issuance of the subordinated notes | $ 933,000 | ||||
Subordinated Notes Due January 15, 2032 | Subordinated Debt | |||||
Debt Conversion [Line Items] | |||||
Debt instrument, face amount | $ 25,000,000 | ||||
Debt instrument, interest rate | 3.375% | ||||
Costs related to the issuance of the subordinated notes | $ 534,000 | ||||
Subordinated Debt related to Trust Preferred Securities | Subordinated Debt | |||||
Debt Conversion [Line Items] | |||||
Debt instrument, face amount | 13,919,000 | ||||
Debt discount on the convertible notes | $ 4,293,000 | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subordinated Notes Due July 1, 2030 | Subordinated Debt | |||||
Debt Conversion [Line Items] | |||||
Interest rate margin on variable rate basis | 5.89% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subordinated Notes Due January 15, 2032 | Subordinated Debt | |||||
Debt Conversion [Line Items] | |||||
Interest rate margin on variable rate basis | 2.03% | ||||
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust I (NMBCT I) | |||||
Debt Conversion [Line Items] | |||||
Interest rate margin on variable rate basis | 3.35% | ||||
Rate | 8.08% | 3.57% | |||
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust II (NMBCT II) | |||||
Debt Conversion [Line Items] | |||||
Interest rate margin on variable rate basis | 2% | ||||
Rate | 6.92% | 2.48% | |||
Line of Credit | Other Financial Institutions | |||||
Debt Conversion [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 330,000,000 | ||||
Amount drawn from line of credit | 0 | ||||
Line of Credit | Federal Reserve Bank stock | |||||
Debt Conversion [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 5,989,000 | ||||
Line of Credit | Federal Reserve Bank stock | Fed Funds target rate | |||||
Debt Conversion [Line Items] | |||||
Interest rate margin on variable rate basis | 0.50% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income applicable to common stockholders, basic | $ 26,281 | $ 7,669 |
Net income applicable to common stockholders, diluted | $ 26,281 | $ 7,669 |
Weighted Average Shares | ||
Weighted average common shares outstanding (in shares) | 24,923,259 | 18,346,288 |
Effect of dilutive securities | ||
Stock-based awards (in shares) | 564,323 | 553,564 |
Convertible notes payable (in shares) | 0 | 0 |
Weighted average diluted common shares (in shares) | 25,487,582 | 18,899,852 |
Earnings per common share | ||
Basic earnings per common share (in usd per share) | $ 1.05 | $ 0.42 |
Effect of dilutive securities | ||
Stock-based awards (in usd per share) | (0.02) | (0.01) |
Diluted earnings per common share (in usd per share) | $ 1.03 | $ 0.41 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Convertible notes payable | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of diluted earnings per share (in shares) | 85,500 | 160,743 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 774,536 | $ 524,038 |
Income tax effect | 1,587 | (16,332) |
Net unrealized gain (loss) | 1,587 | (16,332) |
Balance, ending of period | 799,050 | 515,541 |
Securities available-for-sale: | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (46,157) | 1,664 |
Unrealized gain (loss) | 3,006 | (21,618) |
Income tax effect | (735) | 5,286 |
Net unrealized gain (loss) | 2,271 | (16,332) |
Balance, ending of period | (43,886) | (14,668) |
Fair value hedges of securities available-for-sale: | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 2,174 | 0 |
Unrealized gain (loss) | (906) | 0 |
Income tax effect | 222 | 0 |
Net unrealized gain (loss) | (684) | 0 |
Balance, ending of period | $ 1,490 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
May 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Oct. 18, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issuance of common stock on restricted stock grants (in shares) | 11,344 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to non-vested stock options granted | $ 34 | ||||
Performance-based restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to non-vested stock options granted | $ 1,647 | ||||
Awards expected to issue (in shares) | 69,261,000 | ||||
Option awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | ||||
FirstSun Capital Bancorp 2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate shares of common stock (in shares) | 1,977,292 | ||||
Granted (in shares) | 0 | ||||
Forfeited (in shares) | 0 | ||||
Stock option exercises (in shares) | 0 | ||||
Total unrecognized compensation cost related to non-vested stock options granted | $ 481 | ||||
Total unrecognized compensation cost related to non-vested stock options granted, period | 2 years | ||||
Intrinsic value of the stock options | $ 15,148 | $ 21,216 | |||
FirstSun Capital Bancorp 2021 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate shares of common stock (in shares) | 2,476,571 | ||||
Issuance of common stock on restricted stock grants (in shares) | 11,344,000 | ||||
FirstSun Capital Bancorp 2017 And 2021 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement, compensation cost | $ 426 | $ 166 | |||
Pioneer's Option Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Forfeited (in shares) | 261 | ||||
Stock option exercises (in shares) | 4,959 | ||||
Intrinsic value of the stock options | $ 1,402 | $ 2,263 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary Of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Shares | |
Outstanding, ending balance (in shares) | shares | 1,307,915 |
Options vested or expected to vest (in shares) | shares | 1,307,915 |
Options exercisable, end of period (in shares) | shares | 1,191,032 |
Weighted-Average Exercise Price, per Share | |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 20.23 |
Weighted-average exercise price, options vested or expected to vest (in dollars per share) | $ / shares | 20.23 |
Weighted-average exercise price, options exercisable, end of period (in dollars per share) | $ / shares | $ 20.11 |
Weighted-Average Remaining Contractual Term (years) | |
Outstanding | 5 years 3 days |
Options exercisable | 4 years 11 months 4 days |
Pioneer's Option Plans | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 170,711 |
Options assumed from Pioneer Bancshares, Inc. (in shares) | shares | 0 |
Exercised (in shares) | shares | (4,959) |
Forfeited (in shares) | shares | (261) |
Outstanding, ending balance (in shares) | shares | 165,491 |
Options vested or expected to vest (in shares) | shares | 165,491 |
Options exercisable, end of period (in shares) | shares | 165,491 |
Weighted-Average Exercise Price, per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 23.19 |
Options assumed from Pioneer Bancshares, Inc. (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 18.55 |
Forfeited (in dollars per share) | $ / shares | 19.16 |
Outstanding, ending balance (in dollars per share) | $ / shares | 23.34 |
Weighted-average exercise price, options vested or expected to vest (in dollars per share) | $ / shares | 23.34 |
Weighted-average exercise price, options exercisable, end of period (in dollars per share) | $ / shares | $ 23.34 |
Weighted-Average Remaining Contractual Term (years) | |
Outstanding | 4 years 8 months 8 days |
Options exercisable | 4 years 8 months 8 days |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 7,141 | $ 1,142 |
Effective tax provision rate | 21.40% | 13% |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, Actual Amount | $ 862,407 | $ 829,712 |
Total risk-based capital to risk-weighted assets, Actual Ratio | 0.1219 | 0.1199 |
Total risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Amount | $ 565,761 | $ 553,440 |
Total risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Tier 1 risk-based capital to risk-weighted assets, Actual Amount | $ 714,707 | $ 687,602 |
Tier 1 risk-based capital to risk-weighted assets, Actual Ratio | 0.1011 | 0.0994 |
Tier 1 risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Amount | $ 424,321 | $ 415,080 |
Tier 1 risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, Actual Amount | $ 714,707 | $ 687,602 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, Actual Ratio | 0.1011 | 0.0994 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, For Capital Adequacy Purposes, Amount | $ 318,241 | $ 311,310 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 0.0450 | 0.0450 |
Tier 1 leverage capital to average assets, Actual Amount | $ 714,707 | $ 687,602 |
Tier 1 leverage capital to average assets, Actual Ratio | 0.0986 | 0.0971 |
Tier 1 leverage capital to average assets, For Capital Adequacy Purposes, Amount | $ 289,804 | $ 283,353 |
Tier 1 leverage capital to average assets, For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, Actual Amount | $ 829,861 | $ 815,335 |
Total risk-based capital to risk-weighted assets, Actual Ratio | 0.1177 | 0.1181 |
Total risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Amount | $ 564,000 | $ 552,237 |
Total risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total risk-based capital to risk-weighted assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Amount | $ 705,000 | $ 690,296 |
Total risk-based capital to risk-weighted assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital to risk-weighted assets, Actual Amount | $ 757,141 | $ 748,105 |
Tier 1 risk-based capital to risk-weighted assets, Actual Ratio | 0.1074 | 0.1084 |
Tier 1 risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Amount | $ 423,000 | $ 414,177 |
Tier 1 risk-based capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital to risk-weighted assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Amount | $ 564,000 | $ 552,237 |
Tier 1 risk-based capital to risk-weighted assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, Actual Amount | $ 757,141 | $ 748,105 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, Actual Ratio | 0.1074 | 0.1084 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, For Capital Adequacy Purposes, Amount | $ 317,250 | $ 310,633 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, For Capital Adequacy Purposes, Ratio | 0.0450 | 0.0450 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Amount | $ 458,250 | $ 448,692 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0650 | 0.0650 |
Tier 1 leverage capital to average assets, Actual Amount | $ 757,141 | $ 748,105 |
Tier 1 leverage capital to average assets, Actual Ratio | 0.1046 | 0.1056 |
Tier 1 leverage capital to average assets, For Capital Adequacy Purposes, Amount | $ 289,673 | $ 283,245 |
Tier 1 leverage capital to average assets, For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier 1 leverage capital to average assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Amount | $ 362,091 | $ 354,056 |
Tier 1 leverage capital to average assets, To be Well-Capitalized under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Mortgage servicing rights | $ 73,424 | $ 74,097 | $ 60,481 | $ 47,392 |
Fair Value, Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Available-for-sale securities | 532,650 | 536,973 | ||
Loans held-for-sale | 66,255 | 57,323 | ||
Mortgage servicing rights | 73,424 | 74,097 | ||
Derivative financial instruments - assets | 33,651 | 40,287 | ||
Derivative financial instruments - liabilities | (20,836) | (24,527) | ||
Total | 685,144 | 684,153 | ||
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Available-for-sale securities | 57,369 | 56,649 | ||
Loans held-for-sale | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Derivative financial instruments - assets | 0 | 0 | ||
Derivative financial instruments - liabilities | 0 | 0 | ||
Total | 57,369 | 56,649 | ||
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Available-for-sale securities | 475,281 | 480,324 | ||
Loans held-for-sale | 66,255 | 57,323 | ||
Mortgage servicing rights | 0 | 0 | ||
Derivative financial instruments - assets | 33,651 | 40,287 | ||
Derivative financial instruments - liabilities | (20,836) | (24,527) | ||
Total | 554,351 | 553,407 | ||
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Mortgage servicing rights | 73,424 | 74,097 | ||
Derivative financial instruments - assets | 0 | 0 | ||
Derivative financial instruments - liabilities | 0 | 0 | ||
Total | $ 73,424 | $ 74,097 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of year | $ 74,097 | $ 47,392 |
Total (losses) gains included in earnings | (2,720) | 8,565 |
Purchases, issuances, sales and settlements: | ||
Issuances | 2,047 | 4,524 |
Balance, end of year | $ 73,424 | $ 60,481 |
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss) Statement Of Income, Extensible List Not Disclosed Flag | Total (losses) gains included in earnings |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total collateral dependent loans | $ 3,467 | $ 6,641 |
Total other real estate owned and foreclosed assets, net: | 6,358 | 6,358 |
Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total collateral dependent loans | 1,812 | 5,229 |
Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total collateral dependent loans | 500 | 607 |
Total other real estate owned and foreclosed assets, net: | 5,391 | 5,391 |
Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total collateral dependent loans | 1,155 | 802 |
Total other real estate owned and foreclosed assets, net: | 967 | 967 |
Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total collateral dependent loans | 0 | 3 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total collateral dependent loans | $ 0 | $ 0 |
Fair Value Measurements - Fai_4
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Securities held-to-maturity | $ 33,502 | $ 33,218 |
Restricted equity securities | 46,747 | 50,215 |
Liabilities: | ||
Securities sold under agreements to repurchase | 31,645 | 36,721 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 388,349 | 343,526 |
Securities held-to-maturity | 38,470 | 38,901 |
Loans (excluding collateral dependent loans at fair value) | 6,057,508 | 5,871,274 |
Restricted equity securities | 46,747 | 50,215 |
Accrued interest receivable | 28,725 | 28,543 |
Liabilities: | ||
Deposits (excluding demand deposits) | 3,991,168 | 3,732,215 |
Securities sold under agreements to repurchase | 31,645 | 36,721 |
FHLB advances | 577,285 | 643,885 |
Convertible notes payable, net | 5,393 | 5,355 |
Subordinated debt, net | 74,980 | 74,880 |
Accrued interest payable | 9,610 | 5,798 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 388,349 | 343,526 |
Securities held-to-maturity | 33,502 | 33,218 |
Loans (excluding collateral dependent loans at fair value) | 5,932,738 | 5,756,197 |
Restricted equity securities | 46,747 | 50,215 |
Accrued interest receivable | 28,725 | 28,543 |
Liabilities: | ||
Deposits (excluding demand deposits) | 3,965,964 | 3,696,438 |
Securities sold under agreements to repurchase | 31,645 | 36,721 |
FHLB advances | 577,285 | 643,885 |
Convertible notes payable, net | 5,330 | 5,329 |
Subordinated debt, net | 72,547 | 71,618 |
Accrued interest payable | 9,610 | 5,798 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 388,349 | 343,526 |
Securities held-to-maturity | 0 | 0 |
Loans (excluding collateral dependent loans at fair value) | 0 | 0 |
Restricted equity securities | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposits (excluding demand deposits) | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB advances | 0 | 0 |
Convertible notes payable, net | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 33,502 | 33,218 |
Loans (excluding collateral dependent loans at fair value) | 0 | 0 |
Restricted equity securities | 46,747 | 50,215 |
Accrued interest receivable | 2,059 | 2,049 |
Liabilities: | ||
Deposits (excluding demand deposits) | 3,965,964 | 3,696,438 |
Securities sold under agreements to repurchase | 31,645 | 36,721 |
FHLB advances | 577,285 | 643,885 |
Convertible notes payable, net | 5,330 | 5,329 |
Subordinated debt, net | 72,547 | 71,618 |
Accrued interest payable | 9,610 | 5,798 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans (excluding collateral dependent loans at fair value) | 5,932,738 | 5,756,197 |
Restricted equity securities | 0 | 0 |
Accrued interest receivable | 26,666 | 26,494 |
Liabilities: | ||
Deposits (excluding demand deposits) | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB advances | 0 | 0 |
Convertible notes payable, net | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 74,117 | $ 41,285 | |
Provision (benefit) for credit losses | 3,360 | 3,700 | |
Noninterest income: | |||
Service charges on deposit accounts | 5,015 | 3,925 | |
Credit and debit card fees | 2,981 | 2,415 | |
Trust and investment advisory fees | 1,461 | 1,947 | |
(Loss) income from mortgage banking services, net | 7,429 | 14,561 | |
Other noninterest income | 2,045 | 845 | |
Total noninterest income | 18,931 | 23,693 | |
Noninterest expense: | |||
Salary and employee benefits | 35,049 | 34,225 | |
Occupancy and equipment | 8,174 | 6,833 | |
Other noninterest expenses | 13,043 | 11,409 | |
Total noninterest expense | 56,266 | 52,467 | |
Income before income taxes | 33,422 | 8,811 | |
Other Information | |||
Depreciation expense | 1,710 | 1,414 | |
Identifiable assets | 7,610,456 | 5,733,748 | $ 7,430,322 |
Operating Segments | Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 73,486 | 41,283 | |
Provision (benefit) for credit losses | 2,414 | 2,807 | |
Noninterest income: | |||
Service charges on deposit accounts | 5,015 | 3,925 | |
Credit and debit card fees | 2,981 | 2,415 | |
Trust and investment advisory fees | 1,461 | 1,947 | |
(Loss) income from mortgage banking services, net | (188) | (980) | |
Other noninterest income | 2,045 | 853 | |
Total noninterest income | 11,314 | 8,160 | |
Noninterest expense: | |||
Salary and employee benefits | 27,784 | 22,719 | |
Occupancy and equipment | 7,424 | 5,856 | |
Other noninterest expenses | 8,416 | 7,886 | |
Total noninterest expense | 43,624 | 36,461 | |
Income before income taxes | 38,762 | 10,175 | |
Other Information | |||
Depreciation expense | 1,649 | 1,311 | |
Identifiable assets | 6,728,396 | 5,128,332 | |
Operating Segments | Mortgage Operations | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 1,882 | 1,641 | |
Provision (benefit) for credit losses | 946 | 893 | |
Noninterest income: | |||
Service charges on deposit accounts | 0 | 0 | |
Credit and debit card fees | 0 | 0 | |
Trust and investment advisory fees | 0 | 0 | |
(Loss) income from mortgage banking services, net | 7,617 | 15,541 | |
Other noninterest income | 0 | (8) | |
Total noninterest income | 7,617 | 15,533 | |
Noninterest expense: | |||
Salary and employee benefits | 6,772 | 11,414 | |
Occupancy and equipment | 710 | 977 | |
Other noninterest expenses | 3,509 | 3,172 | |
Total noninterest expense | 10,991 | 15,563 | |
Income before income taxes | (2,438) | 718 | |
Other Information | |||
Depreciation expense | 61 | 103 | |
Identifiable assets | 819,317 | 553,878 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (1,251) | (1,639) | |
Provision (benefit) for credit losses | 0 | 0 | |
Noninterest income: | |||
Service charges on deposit accounts | 0 | 0 | |
Credit and debit card fees | 0 | 0 | |
Trust and investment advisory fees | 0 | 0 | |
(Loss) income from mortgage banking services, net | 0 | 0 | |
Other noninterest income | 0 | 0 | |
Total noninterest income | 0 | 0 | |
Noninterest expense: | |||
Salary and employee benefits | 493 | 92 | |
Occupancy and equipment | 40 | 0 | |
Other noninterest expenses | 1,118 | 351 | |
Total noninterest expense | 1,651 | 443 | |
Income before income taxes | (2,902) | (2,082) | |
Other Information | |||
Depreciation expense | 0 | 0 | |
Identifiable assets | $ 62,743 | $ 51,538 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May 05, 2023 USD ($) | Nov. 05, 2021 USD ($) wireTransfer | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 23, 2020 USD ($) | |
Loss Contingencies [Line Items] | |||||
Commitments including funding of fixed-rate loans | $ 230,792 | $ 218,309 | |||
Commitments including funding of variable-rates loans | 1,787,296 | 1,727,246 | |||
Maximum potential amount of future payments required under the Commitments | 3,860 | 3,860 | |||
Wire Transfer Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of purportedly fraudulent and unauthorized wire transfers | wireTransfer | 6 | ||||
Loss contingency, damages sought, value | $ 5,100 | ||||
Check Fraud Litigation | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, embezzlement amount aided | $ 400 | ||||
Check Fraud Litigation | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought, value | $ 400 | ||||
Prior discover abuse sanctions imposed by court, amount per day | $ 10 | ||||
Standby Letters of Credit | |||||
Loss Contingencies [Line Items] | |||||
Standby letters of credit commitment | $ 16,614 | $ 17,426 | |||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Fixed-rate interest | 1% | 1% | |||
Maturity period | 1 month | 1 month | |||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Fixed-rate interest | 18% | 18% | |||
Maturity period | 30 years | 15 years |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Lease expense | $ 1,898 | $ 1,770 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Lease renewal term | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 15 years | |
Lease renewal term | 10 years |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Leases Existing During Transition from ASC 840 to ASC 842 (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
ROU asset on leased property, gross | $ 35,576 |
Accumulated amortization | (7,923) |
ROU asset, net (Note 9) | 27,653 |
Lease liability (Note 13) | $ 30,400 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets |
Lease Commitments - Future Undi
Lease Commitments - Future Undiscounted Lease Payments Due Under Non-Cancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 7,590 |
2024 | 6,835 |
2025 | 5,479 |
2026 | 3,587 |
2027 | 2,349 |
2028 | 5,861 |
Thereafter | 460 |
Total undiscounted operating lease liability | 32,161 |
Imputed interest | 1,761 |
Total operating lease liability included in the accompanying balance sheet | $ 30,400 |
Weighted Average Remaining Life - Operating Leases | 5 years 8 months 23 days |
Weighted Average Rate - Operating Leases | 1.89% |
Lease Commitments - Components
Lease Commitments - Components of Total Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating leases | $ 1,869 | |
Short-term leases | 46 | |
Sublease income | (17) | |
Net lease expense | $ 1,898 | $ 1,770 |