Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 23, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-15950 | ||
Entity Registrant Name | FIRST BUSEY CORPORATION | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 37-1078406 | ||
Entity Address, Address Line One | 100 W. University Ave. | ||
Entity Address, City or Town | Champaign | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 61820 | ||
City Area Code | 217 | ||
Local Phone Number | 365-4544 | ||
Title of 12(b) Security | Common Stock ($0.001 par value) | ||
Trading Symbol | BUSE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Shares Outstanding | 55,288,101 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders of First Busey Corporation to be held May 24, 2023, are incorporated by reference in this Form 10-K in response to Part III. | ||
Entity Central Index Key | 0000314489 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 49 |
Auditor Name | RSM US LLP |
Auditor Location | Champaign, Illinois |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 117,513 | $ 102,983 |
Interest-bearing deposits | 109,651 | 733,112 |
Total cash and cash equivalents | 227,164 | 836,095 |
Debt securities available for sale | 2,461,393 | 3,981,251 |
Debt securities held to maturity | 918,312 | 0 |
Equity securities | 11,535 | 13,571 |
Loans held for sale (2022 at LOCOM, 2021 at fair value) | 1,253 | 23,875 |
Portfolio loans (net of ACL of $91,608 at December 31, 2022; $87,887 at December 31, 2021) | 7,634,094 | 7,101,111 |
Premises and equipment, net | 126,524 | 136,147 |
Right of use assets | 12,829 | 10,533 |
Goodwill | 317,873 | 317,873 |
Other intangible assets, net | 46,423 | 58,051 |
Cash surrender value of bank owned life insurance | 180,485 | 176,940 |
Other assets | 398,792 | 204,242 |
Total assets | 12,336,677 | 12,859,689 |
Deposits: | ||
Noninterest-bearing | 3,393,666 | 3,670,267 |
Interest-bearing | 6,677,614 | 7,098,310 |
Total deposits | 10,071,280 | 10,768,577 |
Securities sold under agreements to repurchase | 229,806 | 270,139 |
Short-term borrowings | 351,054 | 17,678 |
Long-term debt | 30,000 | 46,056 |
Senior notes, net of unamortized issuance costs | 0 | 39,944 |
Subordinated notes, net of unamortized issuance costs | 222,038 | 182,773 |
Junior subordinated debt owed to unconsolidated trusts | 71,810 | 71,635 |
Lease liabilities | 12,995 | 10,591 |
Other liabilities | 201,717 | 133,184 |
Total liabilities | 11,190,700 | 11,540,577 |
Outstanding commitments and contingent liabilities (see Notes 16 and 22) | ||
Stockholders’ Equity | ||
Common stock, ($0.001 par value; 100,000,000 shares authorized) | 58 | 58 |
Additional paid-in capital | 1,320,980 | 1,316,984 |
Retained earnings | 168,769 | 92,463 |
AOCI | (273,278) | (23,758) |
Total stockholders’ equity before treasury stock | 1,216,529 | 1,385,747 |
Treasury stock at cost | (70,552) | (66,635) |
Total stockholders’ equity | 1,145,977 | 1,319,112 |
Total liabilities and stockholders’ equity | $ 12,336,677 | $ 12,859,689 |
Shares | ||
Common shares issued (in shares) | 58,116,970 | 58,116,970 |
Less treasury shares (in shares) | (2,837,846) | (2,682,060) |
Common shares outstanding (in shares) | 55,279,124 | 55,434,910 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Portfolio Loans, allowance for credit losses | $ 91,608 | $ 87,887 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income | |||
Interest and fees on loans | $ 287,477 | $ 252,097 | $ 284,959 |
Interest and dividends on investment securities: | |||
Taxable interest income | 66,140 | 41,787 | 35,364 |
Non-taxable interest income | 3,272 | 3,765 | 4,552 |
Other interest income | 3,097 | 1,151 | 1,723 |
Total interest income | 359,986 | 298,800 | 326,598 |
Interest expense | |||
Deposits | 16,112 | 12,583 | 30,691 |
Federal funds purchased and securities sold under agreements to repurchase | 1,475 | 227 | 660 |
Short-term borrowings | 1,647 | 279 | 234 |
Long-term debt | 1,310 | 657 | 525 |
Senior notes | 637 | 1,598 | 1,598 |
Subordinated notes | 12,338 | 9,918 | 6,995 |
Junior subordinated debt owed to unconsolidated trusts | 3,029 | 2,840 | 2,960 |
Total interest expense | 36,548 | 28,102 | 43,663 |
Net interest income | 323,438 | 270,698 | 282,935 |
Provision for credit losses | 4,623 | (15,101) | 38,797 |
Net interest income after provision for credit losses | 318,815 | 285,799 | 244,138 |
Noninterest income | |||
Mortgage revenue | 1,895 | 7,239 | 13,038 |
Income on bank owned life insurance | 3,663 | 5,166 | 5,380 |
Realized net gains (losses) on securities | 50 | 29 | 1,724 |
Unrealized net gains (losses) recognized on equity securities | (2,183) | 3,041 | (393) |
Other income | 14,822 | 10,292 | 8,356 |
Total noninterest income | 126,803 | 132,804 | 118,265 |
Noninterest expense | |||
Salaries, wages, and employee benefits | 159,016 | 145,312 | 126,719 |
Data processing | 21,648 | 21,862 | 16,426 |
Net occupancy expense of premises | 19,130 | 18,346 | 17,607 |
Furniture and equipment expenses | 7,645 | 8,301 | 9,550 |
Professional fees | 6,125 | 7,549 | 8,396 |
Amortization of intangible assets | 11,628 | 11,274 | 10,008 |
Interchange expense | 6,298 | 5,792 | 4,810 |
Other expense | 52,391 | 43,344 | 40,681 |
Total noninterest expense | 283,881 | 261,780 | 234,197 |
Income before income taxes | 161,737 | 156,823 | 128,206 |
Income taxes | 33,426 | 33,374 | 27,862 |
Net income | $ 128,311 | $ 123,449 | $ 100,344 |
Basic earnings per common share (in dollars per share) | $ 2.32 | $ 2.23 | $ 1.84 |
Diluted earnings per common share (in dollars per share) | 2.29 | 2.20 | 1.83 |
Dividends declared per share of common stock (in dollars per share) | $ 0.92 | $ 0.92 | $ 0.88 |
Wealth management fees | |||
Noninterest income | |||
Non-interest income | $ 55,378 | $ 53,086 | $ 42,928 |
Fees for customer services | |||
Noninterest income | |||
Non-interest income | 33,111 | 35,604 | 31,604 |
Payment technology solutions | |||
Noninterest income | |||
Non-interest income | $ 20,067 | $ 18,347 | $ 15,628 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 128,311 | $ 123,449 | $ 100,344 |
Unrealized/Unrecognized gains (losses) on debt securities: | |||
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $79,460, $23,367, and $(8,615) | (199,302) | (58,610) | 21,561 |
Net unrecognized gains (losses) on debt securities transferred to held to maturity from available for sale, net of taxes of $13,812, $—, and $—, respectively | (34,644) | 0 | 0 |
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $7, $(17), and $496, respectively | (19) | 44 | (1,228) |
Amortization of unrecognized losses on securities transferred to held to maturity, net of taxes of $(1,893), $—, and $—, respectively | 4,745 | 0 | 0 |
Net change in unrealized/unrecognized gains (losses) on debt securities | (229,220) | (58,566) | 20,333 |
Unrealized gains (losses) on cash flow hedges: | |||
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of $8,258, $(294), and $1,007, respectively | (20,717) | 736 | (2,526) |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $(166), $(304), and $(216), respectively | 417 | 763 | 542 |
Net change in unrealized gains (losses) on cash flow hedges | (20,300) | 1,499 | (1,984) |
Net change in AOCI | (249,520) | (57,067) | 18,349 |
Total comprehensive income | $ (121,209) | $ 66,382 | $ 118,693 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | |||
Net unrealized holding gains (losses) on debt securities available for sale, tax expense (benefit) | $ (79,460) | $ (23,367) | $ 8,615 |
Net unrealized gains (losses) on debt securities transferred to held to maturity from available for sale, tax expense (benefit) | (13,812) | 0 | 0 |
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, tax expense (benefit) | 7 | (17) | 496 |
Amortization of unrealized losses on securities transferred to held to maturity, tax expense (benefit) | (1,893) | 0 | 0 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Net unrealized holding gains (losses) on cash flow hedges, tax expense (benefit) | (8,258) | 294 | (1,007) |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, tax expense (benefit) | $ (166) | $ (304) | $ (216) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect of change in accounting principle (ASU 2016-13) | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative effect of change in accounting principle (ASU 2016-13) | AOCI | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 54,788,772 | |||||||
Beginning balance at Dec. 31, 2019 | $ 1,220,434 | $ (15,922) | $ 56 | $ 1,248,216 | $ (14,813) | $ (15,922) | $ 14,960 | $ (27,985) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 100,344 | 100,344 | ||||||
OCI, net of tax | 18,349 | 18,349 | ||||||
Repurchase of stock (in shares) | (531,114) | |||||||
Repurchase of stock | (12,272) | (12,272) | ||||||
Issuance of treasury stock for ESPP (in shares) | 32,063 | |||||||
Issuance of treasury stock for ESPP | 547 | (59) | 606 | |||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares) | 106,589 | |||||||
Net issuance of treasury stock for RSU/DSU vesting and related tax | (635) | (2,648) | 2,013 | |||||
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares) | 8,069 | |||||||
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax | 101 | (51) | 152 | |||||
Cash dividends common stock | (48,012) | (48,012) | ||||||
Stock dividend equivalents RSUs | 0 | 767 | (767) | |||||
Stock-based compensation | 7,135 | 7,135 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 54,404,379 | |||||||
Ending balance at Dec. 31, 2020 | 1,270,069 | $ 56 | 1,253,360 | 20,830 | 33,309 | (37,486) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 123,449 | 123,449 | ||||||
OCI, net of tax | (57,067) | (57,067) | ||||||
Stock issued in acquisition, net of stock issuance costs (in shares) | 2,206,237 | |||||||
Stock issued in acquisition, net of stock issuance costs | 58,955 | $ 2 | 58,953 | |||||
Repurchase of stock (in shares) | (1,323,000) | |||||||
Repurchase of stock | (33,043) | (33,043) | ||||||
Issuance of treasury stock for ESPP (in shares) | 30,390 | |||||||
Issuance of treasury stock for ESPP | 646 | (136) | 782 | |||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares) | 116,904 | |||||||
Net issuance of treasury stock for RSU/DSU vesting and related tax | (997) | (4,109) | 3,112 | |||||
Cash dividends common stock | (50,764) | (50,764) | ||||||
Stock dividend equivalents RSUs | 0 | 1,052 | (1,052) | |||||
Stock-based compensation | 7,864 | 7,864 | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 55,434,910 | |||||||
Ending balance at Dec. 31, 2021 | 1,319,112 | $ 58 | 1,316,984 | 92,463 | (23,758) | (66,635) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 128,311 | 128,311 | ||||||
OCI, net of tax | (249,520) | (249,520) | ||||||
Repurchase of stock (in shares) | (388,614) | |||||||
Repurchase of stock | (9,912) | (9,912) | ||||||
Issuance of treasury stock for ESPP (in shares) | 57,385 | |||||||
Issuance of treasury stock for ESPP | 1,157 | (320) | 1,477 | |||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares) | 175,225 | |||||||
Net issuance of treasury stock for RSU/DSU vesting and related tax | (1,276) | (5,789) | 4,513 | |||||
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares) | 218 | |||||||
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax | 0 | (5) | 5 | |||||
Cash dividends common stock | (50,863) | (50,863) | ||||||
Stock dividend equivalents RSUs | 0 | 1,142 | (1,142) | |||||
Stock-based compensation | 8,968 | 8,968 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 55,279,124 | |||||||
Ending balance at Dec. 31, 2022 | $ 1,145,977 | $ 58 | $ 1,320,980 | $ 168,769 | $ (273,278) | $ (70,552) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, common stock (in dollars per share) | $ 0.92 | $ 0.92 | $ 0.88 |
Stock dividends, restricted stock units (in dollars per share) | $ 0.92 | $ 0.92 | $ 0.88 |
Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax | $ 0 | $ 101 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows Provided by (Used in) Operating Activities | |||
Net income | $ 128,311 | $ 123,449 | $ 100,344 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for credit losses | 4,623 | (15,101) | 38,797 |
Amortization of intangible assets | 11,628 | 11,274 | 10,008 |
Amortization of mortgage servicing rights | 3,540 | 5,292 | 5,667 |
Amortization of NMTC | 6,333 | 5,563 | 2,311 |
Depreciation and amortization of premises and equipment | 10,482 | 11,610 | 12,273 |
Net amortization (accretion) on portfolio loans | 3,932 | (11,545) | (15,372) |
Net amortization (accretion) of premium (discount) on investment securities | 20,799 | 24,251 | 9,716 |
Net amortization (accretion) of premium (discount) on time deposits | (403) | (1,142) | (933) |
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings | 1,400 | 826 | 586 |
Impairment of OREO and other repossessed assets | 611 | 1 | 68 |
Impairment of fixed assets held for sale | 427 | 3,227 | 6,901 |
Impairment of mortgage servicing rights | (8) | (639) | 648 |
Impairment of leases | 84 | 0 | 0 |
Unrealized (gains) losses recognized on equity securities, net | 2,183 | (3,041) | 393 |
(Gain) loss on sales of equity securities, net | (24) | 0 | 0 |
(Gain) loss on sales of debt securities, net | (26) | (29) | (1,724) |
(Gain) loss on sales of loans, net | (1,944) | (9,323) | (26,999) |
(Gain) loss on sales of OREO | (54) | 174 | (133) |
(Gain) loss on sales of premises and equipment | (825) | (1,023) | 286 |
(Gain) loss on life insurance proceeds | 0 | (1,257) | (1,270) |
(Increase) decrease in cash surrender value of bank owned life insurance | (3,663) | (3,909) | (4,110) |
Provision for deferred income taxes | (1,272) | 4,665 | (5,309) |
Stock-based compensation | 8,968 | 7,864 | 7,135 |
Mortgage loans originated for sale | (70,953) | (274,356) | (881,398) |
Proceeds from sales of mortgage loans | 95,289 | 306,074 | 920,050 |
(Increase) decrease in other assets | (56,284) | 7,203 | (8,210) |
Increase (decrease) in other liabilities | 2,633 | (28,096) | (6,551) |
Net cash provided by (used in) operating activities | 165,787 | 162,012 | 163,174 |
Cash Flows Provided by (Used in) Investing Activities | |||
Purchases of equity securities | (14,820) | (11,017) | (13,123) |
Purchases of debt securities available for sale | (280,083) | (2,298,055) | (1,282,199) |
Proceeds from sales of equity securities | 15,418 | 7,254 | 13,152 |
Proceeds from sales of debt securities available for sale | 0 | 290,955 | 0 |
Proceeds from paydowns and maturities of debt securities held to maturity | 70,116 | 0 | 0 |
Proceeds from paydowns and maturities of debt securities available for sale | 470,134 | 868,083 | 665,744 |
Purchases of FHLB and other bank stock | (12,969) | 0 | 0 |
Proceeds from the redemption of FHLB and other bank stock | 225 | 0 | 0 |
Net cash received in (paid for) acquisitions (see Note 2) | 0 | 228,279 | 0 |
Net (increase) decrease in loans | (541,713) | 76,826 | (113,744) |
Cash paid for premiums on bank-owned life insurance | (106) | (124) | (120) |
Proceeds from life insurance | 219 | 4,755 | 2,696 |
Purchases of premises and equipment | (4,989) | (5,042) | (4,198) |
Proceeds from disposition of premises and equipment | 4,528 | 7,306 | 814 |
Proceeds from sales of OREO | 3,184 | 1,590 | 1,439 |
Net cash provided by (used in) investing activities | (290,856) | (829,190) | (729,539) |
Cash Flows Provided by (Used in) Financing Activities | |||
Net increase (decrease) in deposits | (696,894) | 767,474 | 776,386 |
Net change in federal funds purchased and securities sold under agreements to repurchase | (40,333) | 77,874 | (29,877) |
Proceeds from FHLB advances | 335,000 | 5,000 | 4,000 |
Repayment of FHLB advances | (5,678) | (4,658) | (32,711) |
Proceeds from other borrowings, net of debt issuance costs | 98,094 | 72,500 | 142,634 |
Repayment of other borrowings | (112,000) | (18,500) | (74,000) |
Cash dividends paid | (50,863) | (50,764) | (48,012) |
Purchase of treasury stock | (9,912) | (33,043) | (12,272) |
Cash paid for withholding taxes on stock-based payments | (1,276) | (997) | (635) |
Proceeds from stock options exercised | 0 | 0 | 101 |
Common stock issuance costs | 0 | (150) | 0 |
Net cash provided by (used in) financing activities | (483,862) | 814,736 | 725,614 |
Net increase (decrease) in cash and cash equivalents | (608,931) | 147,558 | 159,249 |
Cash and cash equivalents, beginning of period | 836,095 | 688,537 | 529,288 |
Cash and cash equivalents, ending of period | 227,164 | 836,095 | 688,537 |
Cash payments for: | |||
Interest | 35,297 | 25,374 | 53,601 |
Income taxes | 30,676 | 22,487 | 22,195 |
Non-cash investing and financing activities: | |||
OREO acquired in settlement of loans | 175 | 1,610 | 2,867 |
Transfer of loans held for sale to portfolio loans | 0 | (4,808) | 0 |
Transfer of debt securities available for sale to held to maturity | $ 985,199 | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Nature of Operations First Busey Corporation is a financial holding company organized under the laws of Nevada. The Company’s subsidiaries provide retail and commercial banking services and payment technology solutions, and offer a full range of financial products and services including depository, lending, security brokerage, investment management, and fiduciary services, to individual, corporate, institutional, and governmental customers through their locations in Illinois, Missouri, southwest Florida and Indianapolis, Indiana. The Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The significant accounting and reporting policies for the Company and its subsidiaries follow: Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, which include First Busey Risk Management, Deed of Trust Services Corporation, and Busey Bank, including Busey Bank’s wholly-owned subsidiaries FirsTech, Pulaski Service Corporation, and Busey Capital Management, Inc. Operating results generated from acquired businesses are included with the Company’s results of operations starting from each date of acquisition. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these Consolidated Financial Statements. Intercompany balances and transactions have been eliminated in consolidation. Because the Company is not the primary beneficiary, the Consolidated Financial Statements exclude the following wholly-owned variable interest entities: First Busey Statutory Trust II, First Busey Statutory Trust III, First Busey Statutory Trust IV, Pulaski Financial Statutory Trust I, and Pulaski Financial Statutory Trust II. Use of Estimates In preparing the accompanying Consolidated Financial Statements in conformity with GAAP, the Company’s management is required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the disclosures provided. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of debt securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale debt securities and unrealized gains and losses on cash flow hedges, are reported as a separate component within the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). Trust Assets Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at Busey Bank, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. The Company had assets under care of $11.1 billion at December 31, 2022, and $12.7 billion at December 31, 2021. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from other banks, interest-bearing deposits held with other financial institutions, and federal funds sold. The carrying amount of these instruments is considered a reasonable estimate of fair value. The Company maintains its cash in deposit accounts, the balance of which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on cash and cash equivalents. Securities Debt securities classified as available for sale are those debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on factors including significant movements in interest rates, changes in the maturity mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Debt securities available for sale are carried at fair value, with unrealized gains and losses reported in other comprehensive income (loss), net of taxes. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The amortization period for certain callable debt securities held at a premium are amortized to the earliest call date, while discounts on debt securities are amortized to maturity. Gains and losses on the sale of debt securities available for sale are recorded on the trade date and are determined using the specific identification method. Debt securities available for sale are not within the scope of the current expected credit losses methodology, however, the accounting for credit losses on these securities is affected by ASC Subtopic 326-30 “Financial Instruments-Credit Losses—Available-for-Sale Debt Securities.” A debt security available for sale is impaired if the fair value of the security declines below its amortized cost basis. To determine the appropriate accounting, the Company must first determine if it intends to sell the security or if it is more likely than not that it will be required to sell the security before the fair value increases to at least the amortized cost basis. If either of those selling events is expected, the Company will write down the amortized cost basis of the security to its fair value. This is achieved by writing off any previously recorded allowance, if applicable, and recognizing any incremental impairment through earnings. If the Company neither intends to sell the security, nor believes it more likely than not will be required to sell the security, before the fair value recovers to the amortized cost basis, the Company must determine whether any of the decline in fair value has resulted from a credit loss, or if it is entirely the result of noncredit factors. The Company considers the following factors in assessing whether the decline is due to a credit loss: • Extent to which the fair value is less than the amortized cost basis • Adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors) • Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future • Failure of the issuer of the security to make scheduled interest or principal payments • Any changes to the rating of the security by a rating agency Impairment related to a credit loss must be measured using the discounted cash flow method. Credit loss recognition is limited to the fair value of the security. Impairment is recognized by establishing an ACL through provision for credit losses. Impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. The Company did not recognize any impairment in 2022, 2021, or 2020. Debt securities classified as held to maturity are those debt securities that the Company has the intent and ability to hold to maturity and are carried at amortized cost. In 2022, the Company elected to transfer a portion of the agency mortgage-backed securities portfolio from available for sale to held to maturity. While held to maturity securities are within the scope of CECL, the standard allows for an assumption of zero credit losses when the expectation of non-payment is zero. The risk related to mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises, is considered low therefore requiring no allowance to be recorded. Accrued interest receivable for debt securities totaled $14.7 million at December 31, 2022, and is excluded from the estimate of credit losses. Accrued interest receivable is reported in other assets on the Consolidated Balance Sheets. Equity securities are carried at fair value with changes in fair value recognized in earnings. Loans Held for Sale Loans held for sale include mortgage loans which the Company intends to sell to investors and/or the secondary mortgage market. Effective January 1, 2022, the Company elected to account for all newly originated loans held for sale at LOCOM. Loans held for sale are carried at amortized historical cost less loan write-offs and downward fair value adjustments, as may be applicable. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the carrying amount, net of the value of any servicing assets for loans that were sold with servicing rights retained. Prior to this change, the Company accounted for loans held for sale at fair value. Loans held for sale were recorded at fair value, with changes in fair value recognized in earnings. Fair value adjustments were recorded as an adjustment to mortgage revenues. The fair value of loans held for sale was measured using observable quoted market prices, contract prices, or market price equivalents, consistent with those used by other market participants. Direct loan origination fees and costs related to loans accounted for at fair value were recognized when earned. Loan Servicing Servicing assets are recognized when servicing rights are acquired or retained through the sale of mortgage and government-guaranteed commercial loans. The unpaid principal balances of loans serviced by the Company for the benefit of others totaled $1.7 billion as of December 31, 2022, and are not included in the accompanying Consolidated Balance Sheets. Servicing rights are initially recorded at fair value which is determined using a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The amortization of mortgage servicing rights is included in mortgage revenue. The amortization of government-guaranteed commercial loans is included in other income. Servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on expected prepayment rates and other inputs. For purposes of measuring impairment, servicing rights are stratified by one or more predominant characteristics of the underlying loans. A valuation allowance is recognized in the amount by which the amortized cost of the rights for each stratum exceeds its fair value, if any. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reversal of the allowance may be recorded in current period earnings. The Company had an insignificant amount of impairment recorded at December 31, 2022 and 2021. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. Portfolio Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at the principal balance outstanding, net of purchase premiums and discounts, or net deferred origination fees or costs, charge-offs, and the ACL. Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company amortizes the net amount over the contractual life of the related loan. Interest income is accrued daily on outstanding loan balances. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan. Interest accrued but not collected for loans that are placed on non-accrual status or charged-off is reversed against interest income. The interest on non-accrual loans is accounted for on the cost-recovery method, until returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. PPP Loans At December 31, 2022, the Company had $0.9 million in PPP loans outstanding, with an amortized cost of $0.8 million. In comparison, at December 31, 2021, the Company had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million. The Company received fees totaling $2.5 million, $20.1 million, and $25.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. Incremental direct origination costs the Company incurred were $0.6 million, $4.2 million, and $5.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. Both the fees received and the origination costs have been deferred and are being amortized over the contractual life of these loans, subject to prepayment. The Company recognized $1.9 million, $14.0 million, and $15.2 million in net interest income for fees, net of deferred cost, during the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the remaining amount of fees to be recognized, net of deferred costs, was insignificant. PPP loans contain a forgiveness feature for funds spent on covered expenses, including both principal and accrued interest. Any remaining balance after loan forgiveness maintains a 100% government guarantee for the remaining term of the loan. Troubled Debt Restructurings The Company’s loan portfolio includes certain loans that have been modified in a TDR, where concessions have been granted to borrowers who have experienced financial difficulties. The Company will restructure a loan for its customer after evaluating whether the borrower is able to meet the terms of the loan over the long term, though unable to meet the terms of the loan in the near term due to individual circumstances. The Company considers the customer’s past performance, previous and current credit history, the individual circumstances surrounding the customer’s current difficulties, and the customer’s plan to meet the terms of the loan in the future prior to restructuring the terms of the loan. Generally, restructurings consist of short-term interest rate relief, short-term principal payment relief, short-term principal and interest payment relief, or forbearance (debt forgiveness). A restructured loan that exceeds 90 days past due or is placed on non-accrual status, is classified as non-performing. All TDRs are individually evaluated for purposes of assessing the adequacy of the ACL and for financial reporting purposes. TDRs are evaluated using present value of the expected future cash flows discounted at the loan’s original effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. If the Company determines that the fair value of the TDR is less than the recorded investment in the loan, impairment is recognized through a charge to the ACL in the period of the modification and in periods subsequent to the modification. Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classifications are not included in the Company’s TDR totals. Assets Purchased with Credit Deterioration On January 1, 2020, First Busey adopted ASC Topic 326 “Financial Instruments-Credit Losses” using the prospective transition approach for financial assets PCD that were previously classified as PCI and accounted for under ASC Subtopic 310-30 “Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality.” In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. In accordance with ASC Topic 326, the amortized cost basis of PCD assets were adjusted to reflect an ACL for any remaining credit discount. Subsequent changes in expected cash flows will be adjusted through the ACL. The noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2020. Subsequent to the adoption of ASC Topic 326, acquired loans are separated into two categories based on the credit risk characteristics of the underlying borrowers as either PCD, for loans which have experienced more than insignificant credit deterioration since origination, or all other loans. At the date of acquisition, an ACL on PCD loans is determined and netted against the amortized cost basis of the individual loans. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. The ACL on PCD loans is recorded in the acquisition accounting and no provision for credit losses is recognized at the acquisition date. Subsequent changes to the ACL are recorded through provision expense. For all other loans, an ACL is established immediately after the acquisition through a charge to the provision for credit losses. Allowance for Credit Losses The ACL is a significant estimate in the Company’s Consolidated Financial Statements, affecting both earnings and capital. The ACL is a valuation account that is deducted from the portfolio loans’ amortized cost bases to present the net amount expected to be collected on the portfolio loans. Portfolio loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Recoveries will be recognized up to the aggregate amount of previously charged-off balances. The ACL is established through provision for credit loss expense charged to income. A loan’s amortized cost basis is comprised of the unpaid principal balance of the loan, accrued interest receivable, purchase premiums or discounts, and net deferred origination fees or costs. The Company has estimated its allowance on the amortized cost basis, exclusive of government guaranteed loans and accrued interest receivable. The Company writes-off uncollectible accrued interest receivable in a timely manner and has elected to not measure an allowance for accrued interest receivable. The Company presents the aggregate amount of accrued interest receivable for all financial instruments in other assets on the Consolidated Balance Sheets and the balance of accrued interest receivable is disclosed in “ Note 18. Fair Value Measurements. ” Our methodology influences, and is influenced by, the Company’s overall credit risk management processes. The ACL is managed in accordance with GAAP to provide an adequate reserve for expected credit losses that is reflective of management’s best estimate of what is expected to be collected. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the amortized cost basis. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions such as changes in unemployment rates, property values, and other relevant factors. The calculation also contemplates that the Company may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information. The Company uses four quarters as its reasonable and supportable forecast period. Due to rapidly changing forecasts around the impact of COVID-19, the Company does not believe it has the current ability to incorporate reasonable and supportable forecasts into its CECL models extending beyond four quarters. Ongoing impacts of CECL will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors. Premises and Equipment Land is carried at cost less accumulated depreciation of depreciable land improvements. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are: Asset Description Estimated Useful Life Buildings and improvements 3 — 40 years Furniture and equipment 3 — 10 years Leases A determination is made at inception if an arrangement contains a lease. For arrangements containing leases, the Company recognizes leases on the Consolidated Balance Sheets as right of use assets and corresponding lease liabilities. Lease-related assets, or right of use assets, are recognized on the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. ASC Topic 842 “Leases” requires the use of the rate implicit in the lease whenever this rate is readily determinable. If not readily determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the Company used a borrowing rate that corresponded to the remaining lease term. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If, at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of its right of use assets and lease liabilities. Long-Lived Assets Long-lived assets, including premises and equipment, right of use assets, and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from operations of the asset are less than the carrying value of the asset. Cash flows used for this analysis are those directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the asset. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds its fair value. Other Real Estate Owned and Other Repossessed Assets OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans. OREO and other repossessed assets are recorded at the fair value of the property or asset, less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO or other repossessed assets is charged to the ACL. OREO property and other repossessed assets are evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded, as necessary. OREO and other repossessed assets are included in other assets on the Consolidated Balance Sheets. Revenue, expense, gains, and losses from the operations of foreclosed assets are included in earnings. Goodwill and Other Intangibles Goodwill represents the excess of the consideration transferred in a business combination over the fair value of the net assets acquired. Goodwill is not amortized but is subject to at least annual impairment assessments. The Company has established December 31 as the annual impairment assessment date. As part of this analysis, each reporting unit's carrying value is compared to its fair value. The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including comparable company analysis and precedent transaction analysis. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment as of December 31, 2022, or 2021. See “ Note 7. Goodwill and Other Intangible Assets ” for further discussion. Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from acquisitions and are amortized over their estimated useful lives. Cash Surrender Value of Bank Owned Life Insurance The Company has purchased, or acquired through acquisitions, life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value, which estimates its fair value. The Company maintains a liability for post-employment benefits promised to an employee based on an arrangement between the Company and an employee. In an endorsement split-dollar life insurance arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy would be accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit would be accrued over the employee’s active service period. The Company has an accrued liability of $5.6 million as of December 31, 2022, included in other liabilities, for these arrangements, compared with $5.5 million as of December 31, 2021. FHLB Stock Busey Bank is a member of the FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost in other assets in our Consolidated Balance Sheet. Dividends are reported as income. The Company's investment in FHLB stock was $19.0 million as of December 31, 2022, and $6.2 million as of December 31, 2021. Other Asset Investments The Company has invested in certain tax-advantaged projects promoting affordable housing, new markets, and historic rehabilitation. These investments are designed to generate returns primarily though the realization of federal and state income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. In addition, the Company has private equities, which are primarily small business investment companies in the financial technology, agricultural, environmental, and affordable housing preservation markets. These investments are considered to be variable interest entities, and are accounted for under the equity method or deferral method, as appropriate. The Company is not required to consolidate variable interest entities in which it has concluded it does not have a controlling financial interest, and is not the primary beneficiary. The following table summarizes the impact of the Company’s other asset investments on our Consolidated Balance Sheets for the periods indicated (dollars in thousands) : As of December 31, Location 2022 2021 Other asset investments Funded investments Other assets $ 58,912 $ 37,417 Unfunded investments Other assets 67,437 52,765 Other asset investments $ 126,349 $ 90,182 Unfunded investment obligations Other liabilities $ (67,437) $ (52,765) Further, the Company owns Visa Class B shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A shares upon final resolution of certain litigation matters involving Visa. Transfers of Financial Assets Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company, (ii) the transferee obtains the right to pledge or exchange the assets it receives, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company is subject to income taxes in U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for the years before 2017. Under GAAP, a valuation allowance is required to be recognized if it is more likely than not that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. Management believes that it is more likely than not that the deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required as of December 31, 2022, or 2021. Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Consolidated Financial Statements when it is more likely than not the position will not be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2022, or 2021. At December 31, 2022, the Company was not under examination by any tax authority; however, we have received an inquiry from the State of Illinois regarding our prior franchise tax filings. In the event the Company is required to amend our prior franchise tax filings, we could incur additional expenses. Treasury Stock Treasury stock acquired is recorded at cost. Treasury stock issued is valued based on the “first-in, first-out” method. Gains and losses on issuance are recorded as increases or decreases to additional paid-in capital. Stock-Based Employee Compensation The 2020 Equity Plan was approved by stockholders at the 2020 Annual Meeting of Stockholders. A description of the 2020 Equity Plan can be found in the Com |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Cummins-American Corp. Effective May 31, 2021, the Company completed its acquisition of CAC, the holding company for GSB. The partnership has enhanced the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. GSB’s results of operations were included in the Company’s results of operations beginning June 1, 2021. First Busey operated GSB as a separate banking subsidiary until August 14, 2021, when it was merged with and into Busey Bank. At that time, all GSB banking centers became branches of Busey Bank. Under the terms of the definitive agreement, each share of CAC common stock issued and outstanding as of the effective date was converted into the right to receive 444.4783 shares of First Busey common stock and $14,173.96 in cash, which reflects adjustments made to the cash consideration in accordance with the terms of the definitive agreement. The fair value of the common stock of First Busey issued as part of the consideration paid to the holders of CAC common stock was determined on the basis of the closing price of First Busey’s common shares on May 28, 2021, the last trading day immediately preceding the acquisition date of May 31, 2021. As additional consideration provided to CAC’s stockholders in the merger, CAC paid a special dividend to its stockholders in the amount of $60.0 million, or $12,087.58 per share of CAC common stock, on May 28, 2021. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Fair values were subject to refinement for up to one year after the closing date, as additional information regarding the closing date fair values became available, and were final as of May 31, 2022. The Company did not record any fair value adjustments during 2022. As the total consideration paid for CAC exceeded the estimated fair value of net assets acquired, goodwill of $6.3 million was recorded as a result of the acquisition. The amount of goodwill recognized as a result of this transaction is expected to be fully tax deductible for federal income tax purposes in accordance with the Company’s election pursuant to Section 338(h)(10) of the Internal Revenue Code. Goodwill recorded for this transaction reflects synergies expected from the acquisition and expansion within the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area, and was assigned to the Banking operating segment. First Busey incurred $0.8 million and $13.6 million in pre-tax expenses related to the acquisition of CAC for the years ended December 31, 2022, and December 31, 2021, respectively. Expenses in 2022 were comprised primarily of compensation expense and data processing expense, which are reported as components of noninterest expense in the accompanying Consolidated Statements of Income. Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands) : CAC May 31, Assets acquired Cash and cash equivalents $ 298,637 Securities 702,367 Portfolio loans, net of ACL 430,470 Premises and equipment 17,034 Other intangible assets 17,340 Mortgage servicing rights 629 Other assets 8,176 Total assets acquired 1,474,653 Liabilities assumed Deposits 1,315,671 Other borrowings 16,651 Other liabilities 19,205 Total liabilities assumed 1,351,527 Net assets acquired $ 123,126 Consideration paid: Cash $ 70,358 Common stock 59,105 Total consideration paid $ 129,463 Goodwill $ 6,337 |
DEBT SECURITIES
DEBT SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
DEBT SECURITIES | DEBT SECURITIES The Company reassessed classification of certain securities in 2022, and transferred a portion of its commercial and residential mortgage-backed securities from available for sale to held to maturity. The transfers occurred at fair value. The unrecognized loss associated with these securities is in OCI, and is being amortized out of OCI with an offsetting entry to investment securities interest income as a yield adjustment over the remaining contractual lives of the securities. No gain or loss was recorded at the time of the transfer. The table below provides the amortized cost, unrealized and unrecognized gains and losses, and fair values of debt securities, summarized by major category (dollars in thousands) : As of December 31, 2022 Amortized Unrealized Fair Gross Gains Gross Losses Debt securities available for sale U.S. Treasury securities $ 117,805 $ — $ (3,744) $ 114,061 Obligations of U.S. government corporations and agencies 20,097 3 (321) 19,779 Obligations of states and political subdivisions 283,481 106 (26,075) 257,512 Asset-backed securities 489,558 — (19,683) 469,875 Commercial mortgage-backed securities 124,423 — (16,029) 108,394 Residential mortgage-backed securities 1,463,971 2 (220,717) 1,243,256 Corporate debt securities 273,118 33 (24,635) 248,516 Total debt securities available for sale $ 2,772,453 $ 144 $ (311,204) $ 2,461,393 Amortized Unrecognized Fair Gross Gains Gross Losses Debt securities held to maturity Commercial mortgage-backed securities $ 474,820 $ — $ (63,738) $ 411,082 Residential mortgage-backed securities 443,492 — (69,279) 374,213 Total debt securities held to maturity $ 918,312 $ — $ (133,017) $ 785,295 As of December 31, 2021 Amortized Unrealized Fair Gross Gains Gross Losses Debt securities available for sale U.S. Treasury securities $ 166,768 $ 41 $ (1,047) $ 165,762 Obligations of U.S. government corporations and agencies 37,579 891 — 38,470 Obligations of states and political subdivisions 300,602 7,760 (1,493) 306,869 Asset-backed securities 492,055 295 (164) 492,186 Commercial mortgage-backed securities 625,339 3,425 (13,766) 614,998 Residential mortgage-backed securities 2,095,104 8,889 (34,680) 2,069,313 Corporate debt securities 296,076 1,081 (3,504) 293,653 Total debt securities available for sale $ 4,013,523 $ 22,382 $ (54,654) $ 3,981,251 Amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below. Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands) : As of December 31, 2022 Amortized Fair Debt securities available for sale Due in one year or less $ 135,698 $ 133,967 Due after one year through five years 395,914 368,754 Due after five years through ten years 364,065 330,280 Due after ten years 1,876,776 1,628,392 Debt securities available for sale $ 2,772,453 $ 2,461,393 Debt securities held to maturity Due after one year through five years $ 44,392 $ 41,483 Due after five years through ten years 64,593 57,955 Due after ten years 809,327 685,857 Debt securities held to maturity $ 918,312 $ 785,295 Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Realized gains and losses on debt securities Gross gains on debt securities $ 115 $ 543 $ 1,732 Gross (losses) on debt securities (89) (514) (8) Realized net gains (losses) on debt securities 1 $ 26 $ 29 $ 1,724 ___________________________________________ 1. Net gains (losses) on sales of securities reported on the Consolidated Statements of Income include the sale of equity securities, excluded in this table. Debt securities with carrying amounts of $746.7 million on December 31, 2022, and $708.9 million on December 31, 2021, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required. The following information pertains to debt securities with gross unrealized and unrecognized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands) : As of December 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Debt securities available for sale U.S. Treasury securities 1 $ 74 $ — $ 113,987 $ (3,744) $ 114,061 $ (3,744) Obligations of U.S. government corporations and agencies 19,603 (321) — — 19,603 (321) Obligations of states and political subdivisions 166,147 (10,059) 75,217 (16,016) 241,364 (26,075) Asset-backed securities 390,164 (15,648) 79,711 (4,035) 469,875 (19,683) Commercial mortgage-backed securities 89,428 (12,623) 18,966 (3,406) 108,394 (16,029) Residential mortgage-backed securities 366,221 (38,111) 876,668 (182,606) 1,242,889 (220,717) Corporate debt securities 39,037 (5,079) 204,310 (19,556) 243,347 (24,635) Debt securities available for sale with gross unrealized losses $ 1,070,674 $ (81,841) $ 1,368,859 $ (229,363) $ 2,439,533 $ (311,204) Less than 12 months 12 months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Debt securities held to maturity Commercial mortgage-backed securities $ 58,065 $ (8,009) $ 353,017 $ (55,729) $ 411,082 $ (63,738) Residential mortgage-backed securities — — 374,213 (69,279) 374,213 (69,279) Debt securities held to maturity with gross unrecognized losses $ 58,065 $ (8,009) $ 727,230 $ (125,008) $ 785,295 $ (133,017) ___________________________________________ 1. Unrealized losses for U.S. Treasury securities that have been in a continuous loss position for less than 12 months were insignificant, rounding to zero thousand. As of December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Debt securities available for sale U.S. Treasury securities $ 163,653 $ (1,047) $ — $ — $ 163,653 $ (1,047) Obligations of states and political subdivisions 92,680 (1,493) — — 92,680 (1,493) Asset-backed securities 89,983 (164) — — 89,983 (164) Commercial mortgage-backed securities 389,078 (10,186) 85,905 (3,580) 474,983 (13,766) Residential mortgage-backed securities 1,700,187 (33,453) 20,538 (1,227) 1,720,725 (34,680) Corporate debt securities 241,153 (3,504) — — 241,153 (3,504) Debt securities available for sale with gross unrealized losses $ 2,676,734 $ (49,847) $ 106,443 $ (4,807) $ 2,783,177 $ (54,654) Additional information about debt securities in an unrealized or unrecognized loss position is presented in the tables below (dollars in thousands) : As of December 31, 2022 Available for Sale Held to Maturity Total Debt securities with gross unrealized or unrecognized losses, fair value $ 2,439,533 $ 785,295 $ 3,224,828 Gross unrealized or unrecognized losses on debt securities 311,204 133,017 444,221 Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses 12.8 % 16.9 % 13.8 % Count of debt securities 1,091 55 1,146 Count of debt securities in an unrealized or unrecognized loss position 1,032 55 1,087 As of December 31, 2021 Available for Sale Held to Maturity Total Debt securities with gross unrealized losses, fair value $ 2,783,177 $ — $ 2,783,177 Gross unrealized losses on debt securities 54,654 — 54,654 Ratio of gross unrealized losses to debt securities with gross unrealized losses 2.0 % — % 2.0 % Count of debt securities 1,252 — 1,252 Count of debt securities in an unrealized loss position 373 — 373 Unrealized and unrecognized losses were related to changes in market interest rates and market conditions that do not represent credit-related impairments. The Company does not intend to sell securities that are in an unrealized or unrecognized loss position, and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, no ACL was recorded in relation to debt securities, and the impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. As of December 31, 2022, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity. |
PORTFOLIO LOANS
PORTFOLIO LOANS | 12 Months Ended |
Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
PORTFOLIO LOANS | PORTFOLIO LOANS Loan Categories The Company’s lending can be summarized into five primary categories: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. Distributions of the loan portfolio by loan category were as follows (dollars in thousands) : As of December 31, 2022 2021 Portfolio loans Commercial $ 1,974,154 $ 1,943,886 Commercial real estate 3,261,873 3,119,807 Real estate construction 530,469 385,996 Retail real estate 1,657,082 1,512,976 Retail other 302,124 226,333 Total portfolio loans $ 7,725,702 $ 7,188,998 ACL (91,608) (87,887) Portfolio loans, net $ 7,634,094 $ 7,101,111 Net deferred loan origination costs included in the balances above were $14.0 million as of December 31, 2022, compared to $9.0 million as of December 31, 2021. Net accretable purchase accounting adjustments included in the balances above reduced loans by $5.9 million as of December 31, 2022, and by $8.8 million as of December 31, 2021. Commercial balances include loans originated under the PPP with an amortized cost of $0.8 million as of December 31, 2022, compared to $75.0 million as of December 31, 2021. The Company did not purchase any retail real estate loans during the year ended December 31, 2022, compared to $32.2 million of retail real estate loan purchases during the year ended December 31, 2021. Pledged Loans The Company pledged loans as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands) : As of December 31, 2022 2021 Pledged loans FHLB $ 5,095,448 $ 4,656,331 Federal Reserve Bank 804,718 808,254 Total pledged loans $ 5,900,166 $ 5,464,585 Risk Grading The Company utilizes a loan grading scale to assign a risk grade to all of its loans. A description of the general characteristics of each grade is as follows: • Pass – This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards. • Watch – This category includes loans that warrant a higher-than-average level of monitoring to ensure that weaknesses do not cause the inability of the credit to perform as expected. These loans are not necessarily a problem due to other inherent strengths of the credit, such as guarantor strength, but have above average concern and monitoring. • Special mention – This category is for “Other Assets Specially Mentioned” loans that have potential weaknesses, which may, if not checked or corrected, weaken the asset, or inadequately protect the Company’s credit position at some future date. • Substandard – This category includes “Substandard” loans, determined in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. • Substandard non-accrual – This category includes loans that have all the characteristics of a “Substandard” loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral with a value that is difficult to determine. All loans are graded at their inception. Commercial lending relationships that are $1.0 million or less are usually processed through an expedited underwriting process. Most commercial loans greater than $1.0 million are included in a portfolio review at least annually. Commercial loans greater than $0.35 million that have a grading of special mention or worse are typically reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more frequent review. The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands) : As of December 31, 2022 Pass Watch Special Substandard Substandard Total Portfolio loans Commercial $ 1,668,495 $ 201,758 $ 46,540 $ 51,187 $ 6,174 $ 1,974,154 Commercial real estate 2,851,709 326,455 43,526 34,539 5,644 3,261,873 Real estate construction 502,904 25,164 1 2,400 — 530,469 Retail real estate 1,639,599 10,520 1,338 2,529 3,096 1,657,082 Retail other 301,971 — — — 153 302,124 Total portfolio loans $ 6,964,678 $ 563,897 $ 91,405 $ 90,655 $ 15,067 $ 7,725,702 As of December 31, 2021 Pass Watch Special Substandard Substandard Total Portfolio loans Commercial $ 1,747,756 $ 93,582 $ 69,427 $ 26,117 $ 7,004 $ 1,943,886 Commercial real estate 2,682,441 343,304 49,695 38,394 5,973 3,119,807 Real estate construction 369,797 13,793 6 2,400 — 385,996 Retail real estate 1,491,845 12,374 1,992 3,867 2,898 1,512,976 Retail other 226,262 — — — 71 226,333 Total portfolio loans $ 6,518,101 $ 463,053 $ 121,120 $ 70,778 $ 15,946 $ 7,188,998 Risk grades of portfolio loans, further sorted by origination year, are as follows (dollars in thousands) : As of December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Total Risk Grade Ratings 2022 2021 2020 2019 2018 Prior Commercial Pass $ 479,893 $ 266,122 $ 136,445 $ 52,046 $ 50,764 $ 135,000 $ 548,225 $ 1,668,495 Watch 54,195 49,382 3,288 7,201 1,258 2,160 84,274 201,758 Special Mention 1,958 937 1,642 974 1,000 17,024 23,005 46,540 Substandard 8,926 1,165 570 6,671 2,382 5,191 26,282 51,187 Substandard non-accrual 21 3,292 226 135 — 100 2,400 6,174 Total commercial 544,993 320,898 142,171 67,027 55,404 159,475 684,186 1,974,154 Commercial real estate Pass 883,688 819,133 478,452 297,525 161,409 198,419 13,083 2,851,709 Watch 77,346 56,113 64,282 96,664 21,592 5,758 4,700 326,455 Special Mention 11,943 5,389 12,386 1,420 6,917 5,471 — 43,526 Substandard 5,340 13,528 3,454 1,907 10,248 62 — 34,539 Substandard non-accrual — 3,959 33 — 1,647 5 — 5,644 Total commercial real estate 978,317 898,122 558,607 397,516 201,813 209,715 17,783 3,261,873 Real estate construction Pass 219,112 191,724 68,015 1,490 1,901 1,751 18,911 502,904 Watch 8,530 12,019 3,169 48 — 1,398 — 25,164 Special Mention — — — 1 — — — 1 Substandard 2,400 — — — — — — 2,400 Total real estate construction 230,042 203,743 71,184 1,539 1,901 3,149 18,911 530,469 Retail real estate Pass 396,547 456,158 175,148 77,569 56,887 267,387 209,903 1,639,599 Watch 2,928 2,991 1,846 1,444 1,063 27 221 10,520 Special Mention 945 — — — — 393 — 1,338 Substandard 77 732 198 81 141 1,293 7 2,529 Substandard non-accrual 10 191 107 32 390 1,708 658 3,096 Total retail real estate 400,507 460,072 177,299 79,126 58,481 270,808 210,789 1,657,082 Retail other Pass 134,567 43,512 13,141 13,086 5,646 991 91,028 301,971 Substandard non-accrual 14 134 3 — — 2 — 153 Total retail other 134,581 43,646 13,144 13,086 5,646 993 91,028 302,124 Total portfolio loans $ 2,288,440 $ 1,926,481 $ 962,405 $ 558,294 $ 323,245 $ 644,140 $ 1,022,697 $ 7,725,702 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Total Risk Grade Ratings 2021 2020 2019 2018 2017 Prior Commercial Pass $ 512,729 $ 228,811 $ 107,877 $ 84,873 $ 74,351 $ 122,418 $ 616,697 $ 1,747,756 Watch 13,847 5,913 14,274 5,060 1,361 2,866 50,261 93,582 Special Mention 7,062 898 5,961 4,025 6,790 11,845 32,846 69,427 Substandard 3,595 3,362 3,136 1,855 1,125 5,459 7,585 26,117 Substandard non-accrual 4,126 364 142 — 320 52 2,000 7,004 Total commercial 541,359 239,348 131,390 95,813 83,947 142,640 709,389 1,943,886 Commercial real estate Pass 969,548 637,550 425,850 235,928 200,373 198,002 15,190 2,682,441 Watch 51,560 38,820 123,324 48,088 46,761 32,608 2,143 343,304 Special Mention 9,542 7,060 6,585 10,098 6,357 9,870 183 49,695 Substandard 21,002 3,781 1,218 11,451 521 421 — 38,394 Substandard non-accrual 112 181 359 1,893 3,407 21 — 5,973 Total commercial real estate 1,051,764 687,392 557,336 307,458 257,419 240,922 17,516 3,119,807 Real estate construction Pass 202,082 123,491 31,927 3,155 738 1,223 7,181 369,797 Watch 7,886 4,159 54 — 1,574 120 — 13,793 Special Mention — — 6 — — — — 6 Substandard — 2,400 — — — — — 2,400 Total real estate construction 209,968 130,050 31,987 3,155 2,312 1,343 7,181 385,996 Retail real estate Pass 523,541 215,068 96,617 79,158 82,478 281,737 213,246 1,491,845 Watch 4,100 2,460 1,780 1,312 343 150 2,229 12,374 Special Mention 1,965 27 — — — — — 1,992 Substandard 1,369 232 12 71 165 1,687 331 3,867 Substandard non-accrual 235 63 — 16 227 1,705 652 2,898 Total retail real estate 531,210 217,850 98,409 80,557 83,213 285,279 216,458 1,512,976 Retail other Pass 59,366 22,305 26,126 16,189 7,180 1,326 93,770 226,262 Substandard non-accrual 34 10 — 14 13 — — 71 Total retail other 59,400 22,315 26,126 16,203 7,193 1,326 93,770 226,333 Total portfolio loans $ 2,393,701 $ 1,296,955 $ 845,248 $ 503,186 $ 434,084 $ 671,510 $ 1,044,314 $ 7,188,998 Past Due and Non-Accrual Loans An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on non-accrual status, is as follows (dollars in thousands) : As of December 31, 2022 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Past due and non-accrual loans Commercial $ 2 $ — $ — $ 6,174 Commercial real estate 124 — — 5,644 Retail real estate 4,709 1,239 673 3,096 Retail other 414 60 — 153 Total past due and non-accrual loans $ 5,249 $ 1,299 $ 673 $ 15,067 As of December 31, 2021 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Past due and non-accrual loans Commercial $ 363 $ 10 $ 213 $ 7,004 Commercial real estate 151 441 — 5,973 Real estate construction 56 — — — Retail real estate 3,312 1,830 693 2,898 Retail other 82 16 — 71 Total past due and non-accrual loans $ 3,964 $ 2,297 $ 906 $ 15,946 Gross interest income recorded on 90+ days past due loans, and that would have been recorded on non-accrual loans if they had been accruing interest in accordance with their original terms, was $1.2 million, $1.6 million, and $1.8 million for the years ended December 31, 2022, 2021, and 2020, respectively. Interest collected on those loans and recognized on a cash basis that was included in interest income was $0.4 million for each of the years ended December 31, 2022, and 2021, and was insignificant for the year ended December 31, 2020. Troubled Debt Restructurings TDR loan balances are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 TDRs In compliance with modified terms $ 3,032 $ 1,801 Non-performing TDRs 537 551 Total TDRs $ 3,569 $ 2,352 Loans that were designated as TDRs during the years ended as of the dates indicated are summarized as follows (dollars in thousands) : Newly Designated TDRs Recorded Investment 1 Number of Rate Modification 2 Payment Modification 2 December 31, 2022 Commercial 3 $ 136 $ 996 Retail real estate 1 — 517 Total 4 $ 136 $ 1,513 December 31, 2021 Commercial 1 $ 364 $ — December 31, 2020 Commercial 3 $ 130 $ — Commercial real estate 1 651 — Real estate construction 4 — 986 Total 8 $ 781 $ 986 ___________________________________________ 1. Recorded investment for newly designated TDR’s that were still outstanding as of the dates indicated. 2. TDRs may include multiple concessions; those that include an interest rate concession and payment concession are shown in the rate modification column. There were no TDRs entered into during the 12 months ended December 31, 2022, 2021, or 2020, that had subsequent defaults. A default occurs when a loan is 90 days or more past due or transferred to non-accrual. Gross interest income that would have been recorded during the years ended December 31, 2022, 2021, and 2020, if TDRs had performed in accordance with their original terms compared with their modified terms, was insignificant. Collateral Dependent Loans Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of underlying collateral, less estimated costs to sell. The Company had $14.0 million and $7.9 million of collateral dependent loans secured by real estate or business assets as of December 31, 2022, and December 31, 2021, respectively. Loans Modified Under the CARES Act or Interagency Statement The CARES Act provided financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Federal regulatory agencies, in consultation with FASB, also issued an Interagency Statement to encourage financial institutions to work with borrowers affected by COVID-19 and to update guidance to allow banks to modify loans of customers stressed by COVID-19 without having to classify the loan as a TDR. The Company’s TDR loan totals do not include the following modified loans with payment deferrals that fall under the CARES Act or Interagency Statement that suspended requirements under GAAP related to TDR classification (dollars in thousands) : As of December 31, 2022 As of December 31, 2021 Number of Recorded Number of Recorded COVID-19 loan modifications Commercial loans: Interest-only deferrals 8 $ 20,556 32 $ 128,730 Retail loans: Mortgage and personal loan deferrals 1 99 2 137 Total COVID-19 loans modifications 9 $ 20,655 34 $ 128,867 Loans Evaluated Individually The Company evaluates loans with disparate risk characteristics on an individual basis. The following tables provide details of loans evaluated individually, segregated by category. The unpaid principal balance represents the customer outstanding contractual principal balance excluding any partial charge-offs. Recorded investment represents the amortized cost of customer balances net of any partial charge-offs recognized on the loan. Average recorded investment is calculated using the most recent four quarters (dollars in thousands) : As of December 31, 2022 Unpaid Recorded Investment Average With No With Total Related Loans evaluated individually Commercial $ 9,589 $ 656 $ 5,918 $ 6,574 $ 2,476 $ 6,761 Commercial real estate 8,039 2,334 3,903 6,237 2,000 5,219 Real estate construction 247 247 — 247 — 260 Retail real estate 2,733 2,564 25 2,589 25 2,311 Total loans evaluated individually $ 20,608 $ 5,801 $ 9,846 $ 15,647 $ 4,501 $ 14,551 As of December 31, 2021 Unpaid Recorded Investment Average With No With Total Related Loans evaluated individually Commercial $ 10,247 $ 498 $ 6,490 $ 6,988 $ 3,564 $ 8,791 Commercial real estate 6,456 5,750 — 5,750 — 6,390 Real estate construction 272 272 — 272 — 282 Retail real estate 2,514 2,345 25 2,370 25 4,093 Total loans evaluated individually $ 19,489 $ 8,865 $ 6,515 $ 15,380 $ 3,589 $ 19,556 Allowance for Credit Losses Management estimates the ACL balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience beginning in 2010. Due to the continued economic uncertainty in the markets in which the Company operates, in particular the levels of delinquencies, the Company will continue to utilize a forecast period of 12 months with an immediate reversion to historical loss rates beyond this forecast period in its ACL estimate. PPP loans were excluded from the ACL calculation as they are 100% government guaranteed. The following tables summarize activity in the ACL attributable to each loan category. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands) : Commercial Commercial Real Estate Retail Real Retail Other Total ACL Balance, December 31, 2019 $ 18,291 $ 21,190 $ 3,204 $ 10,495 $ 568 $ 53,748 Adoption of ASC 326-30 715 9,306 2,954 3,292 566 16,833 Provision for credit losses 10,832 17,511 1,452 9,050 (48) 38,797 Charged-off (6,376) (1,972) (18) (2,057) (665) (11,088) Recoveries 404 195 601 1,212 346 2,758 ACL balance, December 31, 2020 23,866 46,230 8,193 21,992 767 101,048 Day 1 PCD 1 3,546 336 — 129 167 4,178 Provision for credit losses (2,160) (7,651) (3,180) (4,456) 2,346 (15,101) Charged-off (2,026) (925) (209) (1,145) (478) (4,783) Recoveries 629 259 298 1,069 290 2,545 ACL balance, December 31, 2021 23,855 38,249 5,102 17,589 3,092 87,887 Provision for credit losses 497 892 1,142 219 1,873 4,623 Charged-off (1,069) (1,375) (23) (251) (461) (3,179) Recoveries 577 533 236 636 295 2,277 ACL balance, December 31, 2022 $ 23,860 $ 38,299 $ 6,457 $ 18,193 $ 4,799 $ 91,608 __________________________________________ 1. The Day 1 PCD is attributable to the CAC acquisition. The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands) : As of December 31, 2022 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Total Collectively Individually Total Portfolio loan category Commercial $ 1,967,580 $ 6,574 $ 1,974,154 $ 21,384 $ 2,476 $ 23,860 Commercial real estate 3,255,636 6,237 3,261,873 36,299 2,000 38,299 Real estate construction 530,222 247 530,469 6,457 — 6,457 Retail real estate 1,654,493 2,589 1,657,082 18,168 25 18,193 Retail other 302,124 — 302,124 4,799 — 4,799 Portfolio loans and related ACL $ 7,710,055 $ 15,647 $ 7,725,702 $ 87,107 $ 4,501 $ 91,608 As of December 31, 2021 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Total Collectively Individually Total Portfolio loan category Commercial $ 1,936,898 $ 6,988 $ 1,943,886 $ 20,291 $ 3,564 $ 23,855 Commercial real estate 3,114,057 5,750 3,119,807 38,249 — 38,249 Real estate construction 385,724 272 385,996 5,102 — 5,102 Retail real estate 1,510,606 2,370 1,512,976 17,564 25 17,589 Retail other 226,333 — 226,333 3,092 — 3,092 Portfolio loans and related ACL $ 7,173,618 $ 15,380 $ 7,188,998 $ 84,298 $ 3,589 $ 87,887 |
OTHER REAL ESTATE OWNED AND OTH
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS | OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans and is included in other assets in the accompanying Consolidated Balance Sheets. The following table summarizes the composition of the Company’s OREO and other repossessed asset balances as of the periods presented (dollars in thousands) : As of December 31, 2022 2021 OREO Commercial $ — $ 2,839 Residential 70 235 Total OREO 70 3,074 Other repossessed assets 780 1,342 OREO and other repossessed assets $ 850 $ 4,416 The following table summarizes activity related to OREO and other repossessed assets (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Changes in OREO and other repossessed assets OREO and other repossessed assets beginning balance $ 4,416 $ 4,571 $ 3,057 Additions, transfers from loans 175 1,610 2,867 Sales (2,565) (1,721) (1,282) Cash payments collected (565) (43) (3) Impairment of OREO and other repossessed assets (611) (1) (68) OREO and other repossessed assets ending balance $ 850 $ 4,416 $ 4,571 The Company had residential real estate in the process of foreclosure totaling $1.1 million as of December 31, 2022, and $0.2 million as of December 31, 2021. The Company has elected to follow Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans. Activity related to OREO and other repossessed assets included the following (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Activity for OREO and other repossessed assets Net loss (gain) on sales 665 173 (90) Operating expenses, net of income 248 468 538 Activity for OREO and other repossessed assets $ 913 $ 641 $ 448 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Premises and equipment Land and improvements $ 44,193 $ 45,595 Buildings and improvements 128,669 132,011 Furniture and equipment 52,991 54,473 Premises and equipment, gross 225,853 232,079 Accumulated depreciation 99,329 95,932 Premises and equipment, net $ 126,524 $ 136,147 Depreciation expense was $10.5 million, $11.6 million, and $12.3 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The Company’s goodwill is associated with its three operating segments, Banking, FirsTech, and Wealth Management. Goodwill is tested annually for impairment, and as part of this analysis, the reporting unit's carrying value is compared to its estimated fair value. Based on the impairment testing performed at December 31, 2022, there were no indicators of potential impairment based on the estimated fair value of those operating segments. The Company did not record any new goodwill during the year ended December 31, 2022. During 2021, in connection with the acquisition of CAC, the Company recorded goodwill totaling $6.3 million and other intangible assets totaling $8.8 million in the Banking operating segment, as well as other intangible assets totaling $8.5 million in the Wealth Management segment. The carrying amount of goodwill by operating segment is as follows (dollars in thousands) : As of December 31, 2022 2021 Goodwill Banking $ 294,773 $ 294,773 FirsTech 8,992 8,992 Wealth Management 14,108 14,108 Total goodwill $ 317,873 $ 317,873 Indefinite-lived intangible assets, such as goodwill, are not amortized. Goodwill is the Company's only indefinite-lived intangible asset. Intangible Assets Core deposit and customer relationship intangible assets are amortized over the estimated period during which the Company expects to benefit from the assets. Intangible asset disclosures are as follows (dollars in thousands) : As of December 31, 2022 2021 Core deposit Customer Total Core deposit Customer Total Intangible Assets Intangible assets, gross $ 99,065 $ 33,138 $ 132,203 $ 99,065 $ 33,138 $ 132,203 Accumulated amortization 63,476 22,304 85,780 55,161 18,991 74,152 Intangible assets, net $ 35,589 $ 10,834 $ 46,423 $ 43,904 $ 14,147 $ 58,051 Amortization expense related to intangible assets, as reflected in the Company's Consolidated Statements of Income, is presented in the table below (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Amortization Expense Core deposit intangible $ 8,315 $ 8,253 $ 7,753 Customer relationship intangible 3,313 3,021 2,255 Amortization of intangible assets $ 11,628 $ 11,274 $ 10,008 Future expense for the amortization of intangible assets, as estimated, is summarized in the table below (dollars in thousands) : As of December 31, 2022 Core deposit Customer Total Estimated amortization expense 2023 $ 7,616 $ 2,816 $ 10,432 2024 6,902 2,318 9,220 2025 5,956 1,887 7,843 2026 5,227 1,479 6,706 2027 4,490 1,091 5,581 Thereafter 5,398 1,243 6,641 Total estimated amortization expense $ 35,589 $ 10,834 $ 46,423 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The composition of deposits is as follows (dollars in thousands) : As of December 31, 2022 2021 Deposits Noninterest-bearing demand deposits $ 3,393,666 $ 3,670,267 Interest-bearing transaction deposits 2,857,818 2,720,417 Saving deposits and money market deposits 2,964,421 3,442,244 Time deposits 855,375 935,649 Total deposits $ 10,071,280 $ 10,768,577 Additional information about our deposits is as follows (dollars in thousands) : As of December 31, 2022 2021 Brokered savings deposits and money market deposits $ 1,303 $ 2,248 Brokered time deposits 275 266 Total time deposits with a minimum denomination of $100,000 416,445 454,649 Total time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 120,377 137,449 Scheduled maturities of time deposits are as follows (dollars in thousands) : As of Time deposits by schedule of maturities 2023 $ 560,147 2024 229,263 2025 34,307 2026 16,637 2027 14,301 Thereafter 720 Time deposits $ 855,375 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase, which are classified as secured borrowings, mature daily. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by the Company’s safekeeping agent. The Company may be required to provide additional collateral based on fluctuations in the fair value of the underlying securities. Securities sold under agreements to repurchase were as follows (dollars in thousands) : As of December 31, 2022 2021 Securities sold under agreements to repurchase $ 229,806 $ 270,139 Weighted average rate for securities sold under agreements to repurchase 1.91 % 0.08 % Term Loan On May 28, 2021, the Company entered into a Second Amended and Restated Credit Agreement, pursuant to which the Company has access to (i) a $40.0 million revolving line of credit with an initial termination date of April 30, 2022, and (ii) a $60.0 million term loan with a maturity date of May 31, 2026. The loans had an annual interest rate of 1.75% plus the one-month LIBOR rate. On April 30, 2022, the agreement was amended, effecting an extension of the termination date for the revolving line of credit to April 30, 2023, and providing for the transition from a LIBOR-indexed interest rate to a SOFR-indexed interest rate. Under the terms of the amendment, the loans now have an annual interest rate of 1.80% plus the one-month forward-looking term rate based on SOFR. Proceeds of the term loan were used to fund a part of the cash portion of the merger consideration related to the acquisition of CAC in the second quarter of 2021, and for general corporate purposes. As of December 31, 2022, there was no balance outstanding on the revolving credit facility and a total of $42.0 million outstanding on the term loan, of which $12.0 million was short-term and $30.0 million was long-term. The revolving credit facility incurs a non-usage fee based on any undrawn amounts. Quarterly payments on the term loan reduce the outstanding principal balance by $3.0 million each quarter. Short-Term Borrowings Short-term borrowings are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Short-term borrowings FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months $ 339,054 $ 5,678 Term Loan, current portion due within 12 months 12,000 12,000 Total short-term debt $ 351,054 $ 17,678 Funds borrowed from the FHLB, listed above, consisted of four notes with a weighted average interest rate of 4.28% as of December 31, 2022, and two notes with a weighted average interest rate of 0.36% as of December 31, 2021. Federal funds purchased are short-term borrowings that generally mature between one Long-Term Debt First Busey’s long-term debt consists of loans maturing more than one year from the loan origination date, excluding the current portion that is due within 12 months. Long-term debt is summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Long-term debt Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock $ — $ 4,056 Term Loan 30,000 42,000 Total long-term debt $ 30,000 $ 46,056 As of December 31, 2021, funds borrowed from the FHLB, listed above, consisted of one variable-rate note maturing in May 2023, with an interest rate of 3.04%. During the second quarter of 2022, this note became due within 12 months and the balance is now fully reflected in short-term borrowings. Senior and Subordinated Notes On May 25, 2017, the Company issued $40.0 million of 3.75% senior notes that matured and were redeemed on May 25, 2022. Additionally, on May 25, 2017, the Company issued $60.0 million of fixed-to-floating rate subordinated notes that were scheduled to mature on May 25, 2027, with an optional redemption in whole or in part on any interest payment date on or after May 25, 2022. The Company redeemed all outstanding $60.0 million fixed-to-floating rate subordinated notes during the third quarter of 2022. At the time of redemption, the redeemed subordinated notes carried interest at a floating rate of 3-month LIBOR plus 2.919%. On June 1, 2020, the Company issued $125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of 5.25% for the first five years after issuance and thereafter bear interest at a floating rate equal to a three-month benchmark rate plus a spread of 5.11%, as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each June 1 and December 1 during the five-year fixed-term, and thereafter on March 1, June 1, September 1, and December 1 of each year, commencing on September 1, 2025. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after June 1, 2025. The subordinated notes are unsecured obligations of the Company. On June 2, 2022, the Company issued $100.0 million aggregate principal amount of 5.000% fixed-to-floating rate subordinated notes maturing June 15, 2032, which qualify as Tier 2 Capital for regulatory purposes. The price to the public for the subordinated notes was 100% of the principal amount of the subordinated notes. Interest on the subordinated notes will accrue at a rate equal to (i) 5.000% per annum from the original issue date to, but excluding, June 15, 2027, payable semiannually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 252 basis points from and including, June 15, 2027, payable quarterly in arrears. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after June 15, 2027. Unamortized debt issuance costs related to senior notes and subordinated notes are presented in the following table (dollars in thousands) : As of December 31, 2022 2021 Unamortized debt issuance costs Senior notes issued in 2017 $ — $ 56 Subordinated notes issued in 2017 — 549 Subordinated notes issued in 2020 1,220 1,678 Subordinated notes issued in 2022 1,742 — Total unamortized debt issuance costs $ 2,962 $ 2,283 |
JUNIOR SUBORDINATED DEBT OWED T
JUNIOR SUBORDINATED DEBT OWED TO UNCOLSOLIDATED TRUSTS | 12 Months Ended |
Dec. 31, 2022 | |
Junior Subordinated Debt Owed to Unconsolidated Trusts | |
JUNIOR SUBORDINATED DEBT OWED TO UNCOLSOLIDATED TRUSTS | JUNIOR SUBORDINATED DEBT OWED TO UNCONSOLIDATED TRUSTSFirst Busey maintains statutory trusts for the sole purpose of issuing and servicing trust preferred securities and related trust common securities. Proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust. Concurrent with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities. The trust preferred securities are instruments that qualify, and are treated by the Company, as Tier 1 regulatory capital. The Company owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. In connection with the Pulaski acquisition in 2016, the Company acquired similar statutory trusts previously maintained by Pulaski and the fair value adjustment is being accreted over their weighted average remaining life, with a balance of $2.8 million remaining to be accreted. The Company had $71.8 million and $71.6 million of junior subordinated debt owed to unconsolidated trusts at December 31, 2022, and 2021, respectively, maturing in 2034 through 2036. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at par value at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligations under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes, in which case the distributions on the trust preferred securities will also be deferred, for up to five years, but not beyond the stated maturity date. For regulatory capital purposes, current banking regulations allow for the inclusion in Tier 1 Capital qualifying trust preferred securities issued prior to May 19, 2010, by bank holding companies with less than $15.0 billion of assets, but do not allow for additional Tier 1 Capital to be raised through the future issuance of trust preferred securities. As of December 31, 2022, 100% of the trust preferred securities qualified as Tier 1 Capital; however, once the Company reaches $15.0 billion in assets, its trust preferred securities will no longer quality as Tier 1 Capital. |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |
REGULATORY CAPITAL | REGULATORY CAPITAL The Company and its subsidiary bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Capital amounts and classification also are subject to qualitative judgments by regulators about components, risk weightings, and other factors. Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. As of December 31, 2022, and December 31, 2021, all capital ratios of the Company and its subsidiary bank exceeded well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to December 31, 2022, that would change this designation. Current Expected Credit Loss Model On August 26, 2020, the FDIC and other federal banking agencies adopted a final rule which provided banking organizations that adopted CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three-year period. Under this final rule, because the Company has elected to use the deferral option, the regulatory capital impact of our transition adjustments recorded on January 1, 2020, arising from the adoption of CECL was deferred for two years. In addition, 25 percent of the ongoing impact of CECL on our ACL, retained earnings, and average total consolidated assets from January 1, 2020, through the end of the two-year deferral period, each as reported for regulatory capital purposes, has been added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. On January 1, 2022, at the conclusion of the two-year period, the adjusted transition amounts began to be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. Changes in Capital Relating to Subordinated Debt On May 25, 2017, the Company issued $60.0 million of fixed-to-floating rate subordinated notes that were scheduled to mature on May 25, 2027. The full balance of the subordinated note qualified as Tier 2 Capital for First Busey for the first five years, with a phase out beginning in the second quarter of 2022. The subordinated notes had an optional redemption in whole or in part on any interest payment date on or after May 25, 2022, and the Company redeemed them in full during the third quarter of 2022. On June 2, 2022, the Company issued $100.0 million aggregate principal amount of 5.000% fixed-to-floating rate subordinated notes that mature on June 15, 2032, which qualify as Tier 2 Capital for regulatory purposes. Capital Amounts and Ratios The following tables summarize regulatory capital requirements applicable to the Company and its subsidiary bank (dollars in thousands) : As of December 31, 2022 Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,081,686 11.96 % $ 406,980 4.50 % $ 587,861 6.50 % Busey Bank 1,306,716 14.49 % 405,736 4.50 % 586,063 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,155,686 12.78 % $ 542,640 6.00 % $ 723,521 8.00 % Busey Bank 1,306,716 14.49 % 540,981 6.00 % 721,308 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,457,994 16.12 % $ 723,521 8.00 % $ 904,401 10.00 % Busey Bank 1,384,024 15.35 % 721,308 8.00 % 901,635 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,155,686 9.45 % $ 489,124 4.00 % N/A N/A Busey Bank 1,306,716 10.72 % 487,541 4.00 % $ 609,426 5.00 % As of December 31, 2021 Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 995,874 11.85 % $ 378,334 4.50 % $ 546,482 6.50 % Busey Bank 1,241,303 14.81 % 377,096 4.50 % 544,695 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,069,874 12.73 % $ 504,445 6.00 % $ 672,594 8.00 % Busey Bank 1,241,303 14.81 % 502,795 6.00 % 670,394 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,320,187 15.70 % $ 672,594 8.00 % $ 840,742 10.00 % Busey Bank 1,306,616 15.59 % 670,394 8.00 % 837,992 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,069,874 8.52 % $ 502,336 4.00 % N/A N/A Busey Bank 1,241,303 9.91 % 501,104 4.00 % $ 626,379 5.00 % Capital Conservation Buffer In July 2013, U.S. federal banking authorities approved the Basel III Rule for strengthening international capital standards. The Basel III Rule introduced a capital conservation buffer, composed entirely of Common Equity Tier 1 Capital, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of Common Equity Tier 1 Capital to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments based on the amount of the shortfall. In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain minimum ratios of (i) Common Equity Tier 1 to risk-weighted assets of at least 7.0%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%. Subsidiary Dividend Payments The ability of the Company to pay cash dividends to its stockholders and to service its debt is dependent on the receipt of cash dividends from its subsidiaries. Under applicable regulatory requirements, an Illinois state-chartered bank, such as Busey Bank, may not pay dividends in excess of its net profits. Busey Bank paid dividends to the Company of $95.0 million, $60.0 million, and $122.0 million during the years ended December 31, 2022, 2021, and 2020, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income taxes consist of (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Income tax expense Current expense: Federal $ 20,815 $ 20,261 $ 21,027 State 13,883 8,448 12,144 Deferred expense: Federal (700) 3,644 (3,657) State (572) 1,021 (1,652) Total income tax expense $ 33,426 $ 33,374 $ 27,862 A reconciliation of federal and state income taxes at statutory rates to the income taxes included in the accompanying Consolidated Statements of Income is as follows: Years Ended December 31, 2022 2021 2020 Percent of pretax income Income tax at federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: Tax-exempt interest, net (1.1) % (1.1) % (1.6) % Stock incentive 0.1 % — % 0.2 % State income taxes, net 6.5 % 4.5 % 6.5 % Income on bank owned life insurance (0.5) % (0.7) % (0.9) % Tax credit investments (5.6) % (3.6) % (3.2) % Other, net 0.3 % 1.2 % (0.3) % Effective income tax rate 20.7 % 21.3 % 21.7 % Net deferred taxes, reported in other assets or other liabilities in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands) : As of December 31, 2022 2021 Deferred taxes Deferred tax assets: ACL $ 26,979 $ 25,884 Unrealized loss on cash flow hedge 8,365 273 Unrealized losses on securities available for sale 88,666 9,199 Unrealized losses on securities held to maturity 11,919 — Stock-based compensation 5,504 4,204 Deferred compensation 53 55 Purchase accounting adjustments 656 1,213 Accrued vacation 411 398 Lease liabilities 3,564 2,893 Employee costs 3,298 2,847 Other 376 390 Total deferred tax assets 149,791 47,356 Deferred tax liabilities: Basis in premises and equipment (1,541) (1,347) Affordable housing partnerships and other investments (6,669) (3,696) Purchase accounting adjustments (1,207) (1,362) Mortgage servicing assets (2,132) (2,853) Basis in core deposit, customer intangible assets, and asset purchase goodwill (6,956) (9,485) Deferred loan origination costs (3,845) (2,454) Right of use assets (3,518) (2,877) Unrealized gain on equity securities (512) (1,099) Other (586) (560) Total deferred tax liabilities (26,966) (25,733) Net deferred tax asset $ 122,825 $ 21,623 Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Balance Sheets will be fully realized. The Company has determined that no valuation allowance is required for any deferred tax assets as of December 31, 2022, or 2021. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS First Busey Corporation Profit Sharing Plan and Trust ( “ the 401(k) Plan ” ) All associates who meet certain age requirements are eligible to participate in the 401(k) Plan. There is no waiting period for participation in the 401(k) Plan. The 401(k) Plan offers two contribution options: (i) the traditional option allows plan participants to elect pre-tax contributions, and (ii) the Roth option allows plan participants to elect after tax contributions. Plan participants may elect to make traditional and/or Roth 401(k) contributions, up to the annual deferral and catch-up limits established by the Internal Revenue Service. First Busey supplements participant contributions by making Safe Harbor matching and discretionary profit sharing contributions. Safe Harbor Match First Busey makes Safe Harbor matching contributions equal to 100% of the first 3% of eligible contributions and 50% of the next 2% of eligible contributions. The rights of participants in Safe Harbor matching contributions vest immediately. Profit Sharing All associates who meet certain age and service requirements are eligible to participate in the Company's profit-sharing contributions. Discretionary profit-sharing contributions and related expenses, if any, are approved solely by the First Busey board of directors, and in no case may annual contributions be greater than the amounts deductible for federal income tax purposes for that year. The rights of participants in profit-sharing contributions vest ratably over a five-year period. 401(k) Plan Expenses Expenses related to our employee benefit plans, reported in salaries, wages, and employee benefits in the accompanying Consolidated Statements of Income, are summarized in the table below (dollars in thousands) : Years Ended December 31, 2022 2021 2020 401(k) Plan expenses Profit-sharing expenses $ 2,960 $ 2,823 $ 2,551 Safe Harbor match expenses $ 4,094 $ 3,708 $ 3,431 Total 401(k) Plan expenses $ 7,054 $ 6,531 $ 5,982 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options The Company has outstanding stock options that were issued under the First Community 2016 Equity Incentive Plan and assumed from acquisitions. A summary of the status of, and changes in, the Company's stock option awards follows (dollars in thousands, except weighted-average exercise price) : Shares Weighted- Weighted- Intrinsic Options outstanding at December 31, 2021 31,386 $ 23.53 4.88 $ 113 Exercised (4,840) 23.53 Expired (440) 23.53 Options outstanding at December 31, 2022 26,106 $ 23.53 3.88 $ 31 Options exercisable at December 31, 2022 26,106 $ 23.53 3.88 $ 31 2020 Equity Plan Under the terms of the 2020 Equity Plan, the Company has granted RSU, PSU, and DSU awards. Upon vesting/delivery, shares are expected (though not required) to be issued from treasury. A description of RSU, PSU and DSU awards granted in 2022 under the terms of the 2020 Equity Plan is provided below. A description of RSU, PSU and DSU awards granted in 2021 and 2020 under the terms of the 2020 Equity Plan and 2010 Equity Plan can be found in the Company’s Annual Reports for the years ended December 31, 2021, and 2020, respectively. The Company issued 175,225 treasury shares in conjunction with the vesting of RSUs and settlement of DSUs in 2022. The difference between the number of shares issued and the number of vested units is due to shares issued under a net share settlement option. There were 657,570 shares available for issuance under the 2020 Equity Plan as of December 31, 2022. RSU Awards The Company grants RSUs to members of management periodically throughout the year. Each RSU is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one year to five years, subject to accelerated vesting upon eligible retirement from the Company. Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. On March 23, 2022, under the terms of the 2020 Equity Plan, the Company granted 156,483 RSUs to members of management. The grant date fair value of the award totaled $4.0 million and will be recognized as compensation expense over the requisite service period ranging from one year to five years. The terms of these awards included an accelerated vesting provision upon eligible retirement from the Company, after a one-year minimum requisite service period. Subsequent to the requisite service period, the awards will become 100% vested. A summary of changes in the Company’s RSU awards for the year ended December 31, 2022, is as follows: RSU Awards Shares Weighted- Nonvested at December 31, 2021 1,147,927 $ 23.97 Granted 156,483 25.79 Dividend equivalents earned 43,916 24.83 Vested (203,230) 27.66 Forfeited (48,165) 23.46 Nonvested at December 31, 2022 1,096,931 23.61 PSU Awards The Company grants PSUs, which are restricted stock units that are subject to certain performance criteria, to members of management periodically throughout the year. Each PSU is equivalent to one share of the Company’s common stock. The number of units that ultimately vest will be determined based on the achievement of the market or other performance goals, subject to accelerated service-based vesting conditions upon eligible retirement from the Company. On March 23, 2022, the Company granted a target of 78,233 market-based PSUs with a maximum award of 125,173 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining a market-based total stockholder return performance goal. The grant date fair value of the award is $2.1 million and will be recognized in compensation expense over the performance period ending December 31, 2024. On March 23, 2022, the Company granted a target of 78,233 performance-based PSUs with a maximum award of 125,173 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining an adjusted return on average tangible common equity performance goal. The grant date fair value of the award is $2.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024. The actual amount of compensation expense recognized may vary, subject to achievement of the performance goal. Further, on March 23, 2022, the Company granted a target of 38,774 PSUs with a maximum award of 77,548 units. The actual number of units issued at the vesting date could range from 0% to 200% of the initial grant, depending on attaining a performance goal based upon the compounded annual revenue growth rate of the FirsTech operating segment. The grant date fair value of the award is $1.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024, subject to achievement of the performance goal. A summary of changes in the Company’s PSU awards for the year ended December 31, 2022, is as follows: PSU Awards Shares 1 Weighted- Nonvested at December 31, 2021 113,915 $ 22.86 Granted 195,240 26.14 Dividend equivalents earned 2 832 22.63 Vested 2 (8,694) 16.86 Forfeited 2 (8,080) 25.21 Adjustment for performance conditions 2,3 (7,862) 16.25 Nonvested at December 31, 2022 285,351 25.40 Vested and outstanding at December 31, 2022 8,694 16.86 ___________________________________________ 1. Shares for PSU awards represent target shares at grant date. 2. PSUs granted in 2020 vested on December 31, 2022. In January 2023, it was determined that performance criteria had been met at 50% of target. 3. Adjustments for performance conditions represent the difference between the number of target shares at grant date and the number of actual shares earned for the performance period completed. DSU Awards The Company grants DSUs, which are restricted stock units with a deferred settlement date, to its directors and advisory directors. Each DSU is equivalent to one share of the Company’s common stock. DSUs vest over a one-year period following the grant date. These units generally are subject to the same terms as RSUs under the 2020 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, these units will continue to earn dividend equivalents. On March 23, 2022, the Company granted 32,658 DSUs to directors and advisory directors. The grant date fair value of the award totaled $0.8 million and will be recognized as compensation expense over the requisite service period of one year. Subsequent to the requisite service period, the awards will become 100% vested. A summary of changes in the Company’s DSU awards for the year ended December 31, 2022, is as follows: DSU Awards Shares Weighted- Nonvested at December 31, 2021 34,135 $ 24.59 Granted 32,658 25.79 Dividend equivalents earned 5,473 24.47 Vested (41,181) 24.67 Nonvested at December 31, 2022 31,085 25.75 Vested and outstanding at December 31, 2022 112,434 23.10 2021 Employee Stock Purchase Plan The First Busey Corporation 2021 ESPP was approved at the Company’s 2021 Annual Meeting of Stockholders. The purpose of the 2021 ESPP is to provide a means through which our employees may acquire a proprietary interest in the Company by purchasing shares of our common stock at a 15% discount through voluntary payroll deductions, to assist us in retaining the services of our employees and securing and retaining the services of new employees, and to provide incentives for our employees to exert maximum efforts toward our success. Under the terms of the 2021 ESPP, all participating employees have equal rights and privileges. Substantially all of our employees are eligible to participate in the 2021 ESPP. Further details can be found within First Busey’s Definitive Proxy Statement filed with the SEC on April 8, 2021. The 2021 ESPP initially reserved for issuance and purchase an aggregate of 600,000 shares of the Company’s common stock. The first offering under the 2021 ESPP began on July 1, 2021. There were 512,225 shares available for issuance under the 2021 ESPP as of December 31, 2022. Stock-Based Compensation Expense The Company did not record any stock option compensation expense for the years ended December 31, 2022, 2021, or 2020. As of December 31, 2022, the Company did not have any unrecognized stock option compensation expense. The Company recognized compensation expense related to non-vested RSU, PSU, and DSU awards, as well as the 2021 ESPP, as presented in the table below (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Stock-based compensation expense RSU awards $ 4,648 $ 5,809 $ 6,493 PSU awards 1 3,240 979 77 DSU awards 876 962 565 2021 ESPP 204 114 — Total stock-based compensation expense $ 8,968 $ 7,864 $ 7,135 ___________________________________________ 1. Expense for market-based PSU awards represents amounts based on target shares at grant date. Expense for performance-based PSU awards represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated. Unamortized stock-based compensation expense is presented in the table below (dollars in thousands) : As of December 31, 2022 2021 Unamortized stock-based compensation RSU awards $ 8,570 $ 10,204 PSU awards 1 4,279 1,547 DSU awards 175 209 Total unamortized stock-based compensation $ 13,024 $ 11,960 Weighted average period over which expense is to be recognized 2.5 yrs 2.9 yrs ___________________________________________ 1. Unamortized expense for market-based PSU awards represents amounts based on target shares at grant date. Unamortized expense for performance-based PSU awards represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with related parties which include directors, executive officers, chief credit officers, their immediate families, and affiliated companies in which they have 10% or more beneficial ownership, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. The following is an analysis of the changes in loans to related parties, as a group (dollars in thousands) : As of and for the Year Ended Balance of loans to related parties, December 31, 2021 $ 42,557 Change in relationship (11,254) New loans/advances 39,545 Repayments (15,507) Balance of loans to related parties, December 31, 2022 $ 55,341 Unused commitments to directors and executive officers $ 12,722 Loans to related parties did not include significant amounts that were past due, nonaccrual, or TDRs. |
OUTSTANDING COMMITMENTS AND CON
OUTSTANDING COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
OUTSTANDING COMMITMENTS AND CONTINGENT LIABILITIES | OUTSTANDING COMMITMENTS AND CONTINGENT LIABILITIES Legal Matters The Company is a party to legal actions which arise in the normal course of its business activities. In the opinion of management, the ultimate resolution of these matters is not expected to have a material effect on the Company’s financial position or the results of operations. Credit Commitments and Contingencies A summary of the contractual amount of the Company’s exposure to off-balance-sheet risk relating to the Company’s commitments to extend credit and standby letters of credit follows (dollars in thousands) : As of December 31, 2022 2021 Financial instruments whose contract amounts represent credit risk Commitments to extend credit $ 1,991,769 $ 1,983,655 Standby letters of credit 33,008 32,552 Total commitments $ 2,024,777 $ 2,016,207 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to investors, and interest rate swaps with customers and other third parties. See “ Note 18. Fair Value Measurements ” for further discussion of the fair value measurement of such derivatives. To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands) : As of December 31, 2022 2021 Cash pledged to secure obligations under derivative contracts $ 38,609 $ 27,300 Collateral held to secure obligations under derivative contracts 29,830 — Derivative Instruments Designated as Hedges The Company entered into derivative instruments designated as cash flow hedges. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. Interest Rate Swaps Designated as Cash Flow Hedges Interest rate swaps with notional amounts totaling $350.0 million as of December 31, 2022, and $50.0 million as of December 31, 2021, were designated as cash flow hedges. The Company entered into one $50.0 million interest rate swap to hedge the risks of variability in cash flows for future interest payments attributable to changes in the contractually specified 3-month LIBOR benchmark interest rate on the Company’s junior subordinated debt owed to unconsolidated trusts (Debt Swap). In 2022, the Company entered into one $300.0 million receive fixed pay floating interest rate swap to reduce the Company's asset sensitivity (Loan Swap). We added duration to our loan portfolio by fixing a portion of our floating prime based loans. Interest rates had risen above their historical lows allowing us to lock in a portion of our loan portfolio to reduce asset sensitivity while creating a more stable margin in a volatile rate market. These hedges were determined to be highly effective during the period, and the Company expects its hedges to remain highly effective during the remaining terms of the swaps. Changes in fair value were recorded net of tax in OCI. A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands) : As of December 31, Location 2022 2021 Debt Swap Notional amount $ 50,000 $ 50,000 Weighted average fixed pay rates 1.79 % 1.79 % Weighted average variable 3-month LIBOR receive rates 4.77 % 0.20 % Weighted average maturity, in years 1.71 yrs 2.71 yrs Loan Swap Notional amount $ 300,000 N/A Weighted average fixed receive rates 4.81 % N/A Weighted average variable Prime pay rates 7.32 % N/A Weighted average maturity, in years 6.10 yrs N/A Gross aggregate fair value of the swaps Gross aggregate fair value of swap assets Other assets $ 2,535 $ — Gross aggregate fair value of swap liabilities Other liabilities $ 32,367 $ 958 Balances carried in AOCI Unrealized gains (losses) on cash flow hedges, net of tax AOCI $ (20,985) $ (685) The Company expects to reclassify unrealized gains and losses from OCI to interest income and interest expense as shown in the following table, during the next 12 months (dollars in thousands) . Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2022. As of Unrealized gains (losses) in OCI expected to be recognized in income Unrealized gains expected to be reclassified from OCI to interest income $ 372 Unrealized losses expected to be reclassified from OCI to interest expense (648) Net unrealized gains (losses) in OCI expected to be recognized in net interest income $ (276) Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Interest income (expense) on swap transactions $ (583) $ (1,067) $ (758) The following table reflects the net gains (losses) recorded in AOCI and the Consolidated Statements of Comprehensive Income relating to cash flow derivative instruments for the periods presented (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Unrealized gains (losses) on cash flow hedges Net gain (loss) recognized in OCI, net of tax $ (20,717) $ 736 $ (2,526) (Gain) loss reclassified from OCI to interest income 395 — — (Gain) loss reclassified from OCI to interest expense 22 763 542 Net change in unrealized gains (losses) on cash flow hedges, net of tax $ (20,300) $ 1,499 $ (1,984) Derivative Instruments Not Designated as Hedges Interest Rate Swaps The Company may offer derivative contracts to its customers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into equal and offsetting derivative agreements with a third-party dealer. These contracts support variable rate, commercial loan relationships totaling $576.9 million and $491.4 million at December 31, 2022, and 2021, respectively. These derivatives generally worked together as an economic interest rate hedge, but the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps, included in other assets and other liabilities in the Consolidated Balance Sheets, are summarized as follows (dollars in thousands) : As of December 31, 2022 Derivative Asset Derivative Liability Notional Fair Notional Fair Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 48,728 $ 370 $ 528,183 $ 39,685 Interest rate swaps – pay fixed, receive floating 528,183 39,685 48,728 370 Total derivatives not designated as hedging instruments $ 576,911 $ 40,055 $ 576,911 $ 40,055 As of December 31, 2021 Derivative Asset Derivative Liability Notional Fair Notional Fair Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 404,572 $ 17,839 $ 86,784 $ 2,259 Interest rate swaps – pay fixed, receive floating 86,784 2,259 404,572 17,839 Total derivatives not designated as hedging instruments $ 491,356 $ 20,098 $ 491,356 $ 20,098 Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the Consolidated Statements of Income and summarized as follows (dollars in thousands) : Years Ended December 31, Location 2022 2021 2020 Interest rate swaps Pay floating, receive fixed Noninterest expense $ 19,308 $ (12,587) $ 20,331 Pay fixed, receive floating Noninterest expense (19,308) 12,587 (20,331) Net change in fair value of interest rate swaps $ — $ — $ — Risk Participation Agreements To manage credit risk exposure related to a customer-facing swap, the Company entered into two risk participation agreements in conjunction with loan participation arrangements with other financial institutions. The risk participation agreements mature in 2026 and 2028, and are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Risk participation agreements Notional amount $ 18,899 $ 3,990 Fair value 5 — Mortgage Banking Derivatives Interest Rate Lock Commitments Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities in the Consolidated Balance Sheets, with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred. Forward Sales Commitments The Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities in the Consolidated Balance Sheets. While such forward sales commitments generally served as an economic hedge to mortgage loans held for sale and interest rate lock commitments, the Company did not designate them for hedge accounting treatment. Changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. Amounts and fair values of mortgage banking derivatives included in the Consolidated Balance Sheets are summarized as follows (dollars in thousands) : As of December 31, 2022 As of December 31, 2021 Location Notional Fair Notional Fair Derivatives with positive fair value Interest rate lock commitments Other assets $ 1,517 $ 16 $ 19,384 $ 206 Forward sales commitments Other assets 83 1 1,884 10 Mortgage banking derivatives recorded in other assets $ 1,600 $ 17 $ 21,268 $ 216 Derivatives with negative fair value Interest rate lock commitments Other liabilities $ 83 $ 1 $ 499 $ 6 Forward sales commitments Other liabilities 2,757 39 41,002 439 Mortgage banking derivatives recorded in other liabilities $ 2,840 $ 40 $ 41,501 $ 445 Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands) : Years Ended December 31, Location 2022 2021 2020 Net gains (losses) Interest rate lock commitments Mortgage revenue $ 15 $ 1,702 $ 9,667 Forward sales commitments Mortgage revenue (38) (4,045) (18,329) Net gains (losses) $ (23) $ (2,343) $ (8,662) In 2020 and 2021, the impact of the net gains or losses recognized in earnings on interest rate lock commitments and forward sales commitments was almost entirely offset by the recognition of a corresponding change in the fair value of loans held for sale. In 2022, the Company began carrying loans held for sale at LOCOM, so while the Company will continue to recognize gains or losses on these mortgage banking derivative instruments in earnings, any corresponding increase in the fair value of loans held for sale will not be recognized in earnings until the loans are sold, at which time the increase is factored into the calculated gain on sale. Decreases in the market value of loans held for sale will continue to be recognized in earnings at each measurement period. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the price that would be received by selling that asset or paid in transferring that liability (exit price) in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. ASC Topic 820 “Fair Value Measurement” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 Inputs – 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 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to those Company assets and liabilities that are carried at fair value. In general, fair value is based upon quoted market prices, when available. If such quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable data. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect, among other things, counterparty credit quality and the company's creditworthiness as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Debt Securities Available for Sale Debt securities classified as available for sale are reported at fair value utilizing Level 2 inputs. The Company obtains fair value measurements from an independent pricing service. The independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid, and other market information. Because many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, focusing on observable market data such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. The independent pricing service uses model processes, such as the Option Adjusted Spread model, to assess interest rate impact and develop prepayment scenarios. Models and processes take into account market conventions. For each asset class, a team of evaluators gathers information from market sources and integrates relevant credit information, perceived market movements, and sector news into the evaluated pricing applications and models. Market inputs that the independent pricing service normally seeks for evaluations of securities, listed in approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The independent pricing service also monitors market indicators, industry, and economic events. For certain security types, additional inputs may be used or some of the market inputs may not be applicable. Evaluators may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs listed are available for use in the evaluation process for each security evaluation on a given day. Because the data utilized was observable, the securities have been classified as Level 2. Equity Securities Equity securities are reported at fair value utilizing Level 1 or Level 2 inputs. Fair value measurements of mutual funds, when held, are determined using unadjusted quoted prices in active markets for identical assets at the measurement date and are classified as Level 1. For stock, quoted prices for identical or similar assets in markets that are not active are utilized and classified as Level 2. Loans Held for Sale Effective January 1, 2022, the Company elected to account for all newly originated loans held for sale at LOCOM. Prior to this change, the Company accounted for loans held for sale at fair value. Loans held for sale that were reported at fair value as of December 31, 2021, utilized Level 2 inputs. The fair values of the mortgage loans held for sale were measured using observable quoted market prices, contract prices, or market price equivalents and were classified as Level 2. Derivative Assets and Derivative Liabilities The majority of our derivative assets and derivative liabilities are reported at fair value utilizing Level 2 or Level 3 inputs. Derivative balances are included in other assets or other liabilities on the Consolidated Balance Sheets, and consist of interest rate swaps and risk participation agreements where there is no significant deterioration in the counterparties (loan customers) credit risk since origination of the interest rate swap or risk participation agreement, as well as mortgage banking derivatives, including interest rate lock commitments and forward sales commitments. Fair values of derivative assets and liabilities are determined based on prices that are obtained from a third-party which uses observable market inputs and, with the exception of our risk participation agreements, are classified as Level 2. For purposes of potential valuation adjustments to our derivative positions, the Company evaluates the credit risk of its counterparties as well as its own credit risk. Accordingly, the Company has considered factors such as the likelihood of default, expected loss given default, net exposures, and remaining contractual life, among other things, in determining if any estimated fair value adjustments related to credit risk are required. The Company reviews counterparty exposure quarterly, and when necessary, appropriate adjustments are made to reflect the exposure. No changes in counterparty credit were identified. Due to the significance of unobservable inputs, derivative assets related to our risk participation agreements are classified as Level 3. The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2022, and 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) : As of December 31, 2022 Level 1 Level 2 Level 3 Total Debt securities available for sale: U.S. Treasury securities $ — $ 114,061 $ — $ 114,061 Obligations of U.S. government corporations and agencies — 19,779 — 19,779 Obligations of states and political subdivisions — 257,512 — 257,512 Asset-backed securities — 469,875 — 469,875 Commercial mortgage-backed securities — 108,394 — 108,394 Residential mortgage-backed securities — 1,243,256 — 1,243,256 Corporate debt securities — 248,516 — 248,516 Equity securities — 11,535 — 11,535 Derivative assets — 42,607 5 42,612 Derivative liabilities — 72,462 — 72,462 As of December 31, 2021 Level 1 Level 2 Level 3 Total Debt securities available for sale: U.S. Treasury securities $ — $ 165,762 $ — $ 165,762 Obligations of U.S. government corporations and agencies — 38,470 — 38,470 Obligations of states and political subdivisions — 306,869 — 306,869 Asset-backed securities — 492,186 — 492,186 Commercial mortgage-backed securities — 614,998 — 614,998 Residential mortgage-backed securities — 2,069,313 — 2,069,313 Corporate debt securities — 293,653 — 293,653 Equity securities — 13,571 — 13,571 Loans held for sale — 23,875 — 23,875 Derivative assets — 20,314 — 20,314 Derivative liabilities — 21,501 — 21,501 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain financial assets and financial liabilities are measured at fair value on a non-recurring 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 (for example, when there is evidence of impairment). Loans Evaluated Individually The Company does not record portfolio loans at fair value on a recurring basis. However, periodically, a loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using a combination of observable inputs, including recent appraisals, and unobservable inputs based on customized discounting criteria. Due to the significance of unobservable inputs, fair values of individually evaluated collateral dependent loans have been classified as Level 3. OREO Non-financial assets measured at fair value include OREO (upon initial recognition or subsequent impairment). OREO properties are measured using a combination of observable inputs, including recent appraisals, and unobservable inputs. Due to the significance of unobservable inputs, all OREO fair values have been classified as Level 3. Bank Property Held for Sale Bank property held for sale represents certain banking center office buildings which the Company has closed and consolidated with other existing banking centers. Bank property held for sale is measured at the lower of amortized cost or fair value less estimated costs to sell, and is included in premises and equipment, net on the Consolidated Balance Sheets. Fair values were based upon discounted appraisals or real estate listing prices. Due to the significance of unobservable inputs, fair values of all bank property held for sale have been classified as Level 3. The following tables summarize assets and liabilities measured at fair value on a non-recurring basis for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) : As of December 31, 2022 Level 1 Level 2 Level 3 Total Loans evaluated individually, net of related allowance $ — $ — $ 5,345 $ 5,345 Bank property held for sale with impairment — — 7,923 7,923 As of December 31, 2021 Level 1 Level 2 Level 3 Total Loans evaluated individually, net of related allowance $ — $ — $ 2,926 $ 2,926 OREO with subsequent impairment — — 51 51 Bank property held for sale with impairment — — 10,103 10,103 The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) : As of December 31, 2022 Fair Value Valuation Unobservable Range Loans evaluated individually, net of related allowance $ 5,345 Appraisal of collateral Appraisal adjustments -22.7% to -100.0% (-45.7)% Bank property held for sale with impairment 7,923 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7% to -70.1% (-35.1)% As of December 31, 2021 Fair Value Valuation Techniques Unobservable Input Range Loans evaluated individually, net of related allowance $ 2,926 Appraisal of collateral Appraisal adjustments -50.0% to -100.0% (-55.1)% OREO with subsequent impairment 51 Appraisal of collateral Appraisal adjustments -33.0% to -100.0% (-67.9)% Bank property held for sale with impairment 10,103 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7% to -70.1% (-41.3)% Financial Assets and Financial Liabilities That Are Not Carried at Fair Value Estimated fair values of financial instruments that are not carried at fair value in the Company’s Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (dollars in thousands) : As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Financial assets Level 1 inputs: Cash and cash equivalents $ 227,164 $ 227,164 $ 836,095 $ 836,095 Level 2 inputs: Debt securities held to maturity 918,312 785,295 — — Loans held for sale 1 1,253 1,276 — — Accrued interest receivable 43,372 43,372 31,064 31,064 Level 3 inputs: Portfolio loans, net 7,634,094 7,320,422 7,101,111 7,161,466 Mortgage servicing rights 5,861 18,284 8,608 12,133 Other servicing rights 1,914 2,331 1,830 2,268 Financial liabilities Level 2 inputs: Time deposits $ 855,375 $ 830,596 $ 935,649 $ 935,778 Securities sold under agreements to repurchase 229,806 229,806 270,139 270,139 Short-term borrowings 351,054 351,085 17,678 17,673 Long-term debt 30,000 30,052 46,056 46,164 Junior subordinated debt owed to unconsolidated trusts 71,810 59,111 71,635 63,586 Accrued interest payable 3,978 3,978 2,728 2,728 Level 3 inputs: Senior notes, net of unamortized issuance costs — — 39,944 40,400 Subordinated notes, net of unamortized issuance costs 222,038 208,562 182,773 195,600 ___________________________________________ 1. Effective January 1, 2022, recorded at LOCOM. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding, which include DSUs that are vested but not delivered. Diluted earnings per common share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding stock options and warrants were exercised, stock units were vested, and ESPP shares were issued. Earnings per common share have been computed as follows (dollars in thousands, except per share amounts) : Years Ended December 31, 2022 2021 2020 Net income $ 128,311 $ 123,449 $ 100,344 Weighted average number of common shares outstanding, basic 55,387,073 55,369,476 54,567,429 Dilutive effect of common stock equivalents: Options 1,632 1,639 900 Warrants 1,753 1,753 1,469 RSU awards 665,998 615,759 252,153 PSU awards 58,206 5,429 — DSU awards 15,532 10,641 4,988 ESPP 6,970 4,108 — Weighted average number of common shares outstanding, diluted 56,137,164 56,008,805 54,826,939 Basic earnings per common share $ 2.32 $ 2.23 $ 1.84 Diluted earnings per common share 2.29 2.20 1.83 Average shares that were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive are summarized in the table below for the periods presented: Years Ended December 31, 2022 2021 2020 Anti-dilutive common stock equivalents Options 7,792 — 39,085 RSU awards 38,912 65,058 159,408 PSU awards 189,000 93,026 7,862 DSU awards — 7,742 — Total anti-dilutive common stock equivalents 235,704 165,826 206,355 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Alternative [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present changes in AOCI by component, net of tax, for the periods below (dollars in thousands) : Year Ended December 31, 2022 Before Tax Tax Effect Net of Tax Unrealized/Unrecognized gains (losses) on debt securities Balance at beginning of period $ (32,272) $ 9,199 $ (23,073) Unrealized holding gains (losses) on debt securities available for sale, net (278,762) 79,460 (199,302) Unrecognized losses on debt securities transferred to held to maturity from available for sale (48,456) 13,812 (34,644) Amounts reclassified from AOCI, net (26) 7 (19) Amortization of unrecognized losses on securities transferred to held to maturity 6,638 (1,893) 4,745 Balance at end of period (352,878) 100,585 (252,293) Unrealized gains (losses) on cash flow hedges Balance at beginning of period (958) 273 (685) Unrealized holding gains (losses) on cash flow hedges, net (28,975) 8,258 (20,717) Amounts reclassified from AOCI, net 583 (166) 417 Balance at end of period (29,350) 8,365 (20,985) Total AOCI $ (382,228) $ 108,950 $ (273,278) Year Ended December 31, 2021 Before Tax Tax Effect Net of Tax Unrealized gains (losses) on debt securities available for sale Balance at beginning of period $ 49,644 $ (14,151) $ 35,493 Unrealized holding gains (losses) on debt securities available for sale, net (81,977) 23,367 (58,610) Amounts reclassified from AOCI, net 61 (17) 44 Balance at end of period (32,272) 9,199 (23,073) Unrealized gains (losses) on cash flow hedges Balance at beginning of period (3,055) 871 (2,184) Unrealized holding gains (losses) on cash flow hedges, net 1,030 (294) 736 Amounts reclassified from AOCI, net 1,067 (304) 763 Balance at end of period (958) 273 (685) Total AOCI $ (33,230) $ 9,472 $ (23,758) Year Ended December 31, 2020 Before Tax Tax Effect Net of Tax Unrealized gains (losses) on debt securities available for sale Balance at beginning of period $ 21,192 $ (6,032) $ 15,160 Unrealized holding gains (losses) on debt securities available for sale, net 30,176 (8,615) 21,561 Amounts reclassified from AOCI, net (1,724) 496 (1,228) Balance at end of period 49,644 (14,151) 35,493 Unrealized gains (losses) on cash flow hedges Balance at beginning of period (280) 80 (200) Unrealized holding gains (losses) on cash flow hedges, net (3,533) 1,007 (2,526) Amounts reclassified from AOCI, net 758 (216) 542 Balance at end of period (3,055) 871 (2,184) Total AOCI $ 46,589 $ (13,280) $ 33,309 |
OPERATING SEGMENTS AND RELATED
OPERATING SEGMENTS AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS AND RELATED INFORMATION | OPERATING SEGMENTS AND RELATED INFORMATION The Company has three reportable operating segments: Banking, FirsTech, and Wealth Management. The Company’s operating segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. The Banking Operating Segment The Banking operating segment provides a full range of banking services to individual and corporate customers through its banking center network in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. Banking services offered to individual customers include customary types of demand and savings deposits, money transfers, safe deposit services, individual retirement accounts and other fiduciary services, automated teller machines, and technology-based networks, as well as a variety of loan products including residential real estate, home equity lines of credit, and consumer loans. Banking services offered to corporate customers include commercial, commercial real estate, real estate construction, and agricultural loans, as well as commercial depository services such as cash management. The FirsTech Operating Segment The FirsTech operating segment provides comprehensive and innovative payment technology solutions including online, mobile, and voice-recognition bill payments; money management and credit card networks; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. FirsTech's client base represents a diverse set of industries, with a higher concentration in highly regulated industries, such as financial institutions, utility, insurance, and telecommunications industries. The Wealth Management Operating Segment The Wealth Management operating segment provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Wealth management services tailored to individuals include trust and estate advisory services and financial planning. Business services include business succession planning and employee retirement plan services. Services for foundations include investment strategy consulting and fiduciary services. Segment Financial Information The segment financial information provided below has been derived from information used by management to monitor and manage the financial performance of the Company. The accounting policies of the three operating segments are the same as those described in the summary of significant accounting policies in “ Note 1. Significant Accounting Policies. ” The Company accounts for intersegment revenue and transfers at current market prices. Following is a summary of selected financial information for the Company’s operating segments. The “other” category included in the tables below consists of the parent company, First Busey Risk Management, and the elimination of intercompany transactions (dollars in thousands) : Goodwill Total Assets As of December 31, As of December 31, 2022 2021 2022 2021 Operating segment Banking $ 294,773 $ 294,773 $ 12,199,960 $ 12,746,833 FirsTech 8,992 8,992 48,715 47,481 Wealth Management 14,108 14,108 84,082 65,587 Other — — 3,920 (212) Consolidated total $ 317,873 $ 317,873 $ 12,336,677 $ 12,859,689 Years Ended December 31, 2022 2021 2020 Net interest income Banking $ 340,083 $ 285,678 $ 294,728 FirsTech 65 79 79 Wealth Management — — — Other (16,710) (15,059) (11,872) Total net interest income $ 323,438 $ 270,698 $ 282,935 Noninterest income Banking $ 54,154 $ 59,393 $ 61,043 FirsTech 21,720 19,629 16,548 Wealth Management 55,394 53,082 43,429 Other (4,465) 700 (2,755) Total noninterest income $ 126,803 $ 132,804 $ 118,265 Noninterest expense Banking $ 221,997 $ 205,905 $ 185,445 FirsTech 20,619 17,574 13,279 Wealth Management 31,545 29,198 26,086 Other 9,720 9,103 9,387 Total noninterest expense $ 283,881 $ 261,780 $ 234,197 Income before income taxes Banking $ 167,617 $ 154,267 $ 131,529 FirsTech 1,166 2,134 3,348 Wealth Management 23,849 23,884 17,343 Other (30,895) (23,462) (24,014) Total income before income taxes $ 161,737 $ 156,823 $ 128,206 Net income Banking $ 131,596 $ 117,844 $ 101,226 FirsTech 847 1,527 2,372 Wealth Management 18,543 18,570 13,181 Other (22,675) (14,492) (16,435) Total net income $ 128,311 $ 123,449 $ 100,344 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES Busey as The Lessee The Company has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease related information and balances the Company reported in its Consolidated Balance Sheets for the periods presented (dollars in thousands) : As of December 31, 2022 2021 Lease balances Right of use assets $ 12,829 $ 10,533 Lease liabilities 12,995 10,591 Supplemental information Year through which lease terms extend 2037 2031 Weighted average remaining lease term (in years) 8.90 6.47 Weighted average discount rate 3.45 % 2.16 % The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Lease costs Operating lease costs $ 2,495 $ 2,464 $ 2,524 Variable lease costs 365 540 416 Short-term lease costs 22 49 35 Total lease cost 1 $ 2,882 $ 3,053 $ 2,975 Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash flows – Fixed payments $ 3,080 $ 2,417 $ 2,526 Operating lease cash flows – Liability reduction 2,285 2,217 2,289 Right of use assets obtained during the period in exchange for operating lease liabilities 2 6,206 5,818 743 ___________________________________________ 1. Lease costs are included in net occupancy and equipment expense in the Consolidated Statements of Income. 2. The year ended December 31, 2021, includes $0.4 million related to a lease obtained in the acquisition of CAC. At December 31, 2022, the Company was obligated under noncancelable operating leases for office space and other commitments. Future undiscounted lease payments with initial terms of one year or more, are as follows (dollars in thousands) : As of Rent commitments 2023 $ 2,254 2024 1,942 2025 1,719 2026 1,442 2027 1,277 Thereafter 6,699 Total undiscounted cash flows 15,333 Less: Amounts representing interest 2,338 Present value of net future minimum lease payments $ 12,995 Busey as The Lessor Busey occasionally leases parking lots and office space to outside parties. Further, in connection with the acquisition of CAC in the second quarter of 2021, the Company acquired office buildings in Glenview and Northbrook, Illinois, along with operating leases for space within these buildings that is rented to third parties. Revenues recorded in connection with these leases and reported in other income on our Consolidated Statements of Income are summarized as follows (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Rental income $ 707 $ 566 $ 228 |
PARENT COMPANY ONLY FINANCIAL I
PARENT COMPANY ONLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIAL INFORMATION | PARENT COMPANY ONLY FINANCIAL INFORMATION Condensed financial data for First Busey Corporation is presented below. CONDENSED BALANCE SHEETS (dollars in thousands) As of December 31, 2022 2021 Assets Cash and cash equivalents $ 91,812 $ 78,217 Equity securities 11,535 13,571 Investments in subsidiaries: Bank 1,369,261 1,565,226 Non-bank 2,181 2,812 Premises and equipment, net 18 30 Other assets 22,316 22,444 Total assets $ 1,497,123 $ 1,682,300 Liabilities and Stockholders' Equity Liabilities: Short-term borrowings $ 12,000 $ 12,000 Long-term debt 30,000 42,000 Senior notes, net of unamortized issuance costs — 39,944 Subordinated notes, net of unamortized issuance costs 222,038 182,773 Junior subordinated debentures owed to unconsolidated trusts 71,810 71,635 Other liabilities 15,298 14,836 Total liabilities 351,146 363,188 Total stockholders' equity 1,145,977 1,319,112 Total liabilities and stockholders' equity $ 1,497,123 $ 1,682,300 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations First Busey Corporation is a financial holding company organized under the laws of Nevada. The Company’s subsidiaries provide retail and commercial banking services and payment technology solutions, and offer a full range of financial products and services including depository, lending, security brokerage, investment management, and fiduciary services, to individual, corporate, institutional, and governmental customers through their locations in Illinois, Missouri, southwest Florida and Indianapolis, Indiana. The Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The significant accounting and reporting policies for the Company and its subsidiaries follow: |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, which include First Busey Risk Management, Deed of Trust Services Corporation, and Busey Bank, including Busey Bank’s wholly-owned subsidiaries FirsTech, Pulaski Service Corporation, and Busey Capital Management, Inc. Operating results generated from acquired businesses are included with the Company’s results of operations starting from each date of acquisition. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these Consolidated Financial Statements. Intercompany balances and transactions have been eliminated in consolidation. Because the Company is not the primary beneficiary, the Consolidated Financial Statements exclude the following wholly-owned variable interest entities: First Busey Statutory Trust II, First Busey Statutory Trust III, First Busey Statutory Trust IV, Pulaski Financial Statutory Trust I, and Pulaski Financial Statutory Trust II. |
Use of Estimates | Use of Estimates In preparing the accompanying Consolidated Financial Statements in conformity with GAAP, the Company’s management is required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the disclosures provided. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of debt securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale debt securities and unrealized gains and losses on cash flow hedges, are reported as a separate component within the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). |
Trust Assets | Trust Assets Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at Busey Bank, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. The Company had assets under care of $11.1 billion at December 31, 2022, and $12.7 billion at December 31, 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from other banks, interest-bearing deposits held with other financial institutions, and federal funds sold. The carrying amount of these instruments is considered a reasonable estimate of fair value. The Company maintains its cash in deposit accounts, the balance of which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on cash and cash equivalents. |
Securities | Securities Debt securities classified as available for sale are those debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on factors including significant movements in interest rates, changes in the maturity mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Debt securities available for sale are carried at fair value, with unrealized gains and losses reported in other comprehensive income (loss), net of taxes. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The amortization period for certain callable debt securities held at a premium are amortized to the earliest call date, while discounts on debt securities are amortized to maturity. Gains and losses on the sale of debt securities available for sale are recorded on the trade date and are determined using the specific identification method. Debt securities available for sale are not within the scope of the current expected credit losses methodology, however, the accounting for credit losses on these securities is affected by ASC Subtopic 326-30 “Financial Instruments-Credit Losses—Available-for-Sale Debt Securities.” A debt security available for sale is impaired if the fair value of the security declines below its amortized cost basis. To determine the appropriate accounting, the Company must first determine if it intends to sell the security or if it is more likely than not that it will be required to sell the security before the fair value increases to at least the amortized cost basis. If either of those selling events is expected, the Company will write down the amortized cost basis of the security to its fair value. This is achieved by writing off any previously recorded allowance, if applicable, and recognizing any incremental impairment through earnings. If the Company neither intends to sell the security, nor believes it more likely than not will be required to sell the security, before the fair value recovers to the amortized cost basis, the Company must determine whether any of the decline in fair value has resulted from a credit loss, or if it is entirely the result of noncredit factors. The Company considers the following factors in assessing whether the decline is due to a credit loss: • Extent to which the fair value is less than the amortized cost basis • Adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors) • Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future • Failure of the issuer of the security to make scheduled interest or principal payments • Any changes to the rating of the security by a rating agency Impairment related to a credit loss must be measured using the discounted cash flow method. Credit loss recognition is limited to the fair value of the security. Impairment is recognized by establishing an ACL through provision for credit losses. Impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. The Company did not recognize any impairment in 2022, 2021, or 2020. Debt securities classified as held to maturity are those debt securities that the Company has the intent and ability to hold to maturity and are carried at amortized cost. In 2022, the Company elected to transfer a portion of the agency mortgage-backed securities portfolio from available for sale to held to maturity. While held to maturity securities are within the scope of CECL, the standard allows for an assumption of zero credit losses when the expectation of non-payment is zero. The risk related to mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises, is considered low therefore requiring no allowance to be recorded. Accrued interest receivable for debt securities totaled $14.7 million at December 31, 2022, and is excluded from the estimate of credit losses. Accrued interest receivable is reported in other assets on the Consolidated Balance Sheets. Equity securities are carried at fair value with changes in fair value recognized in earnings. |
Loans Held for Sale | Loans Held for Sale Loans held for sale include mortgage loans which the Company intends to sell to investors and/or the secondary mortgage market. Effective January 1, 2022, the Company elected to account for all newly originated loans held for sale at LOCOM. Loans held for sale are carried at amortized historical cost less loan write-offs and downward fair value adjustments, as may be applicable. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the carrying amount, net of the value of any servicing assets for loans that were sold with servicing rights retained. Prior to this change, the Company accounted for loans held for sale at fair value. Loans held for sale were recorded at fair value, with changes in fair value recognized in earnings. Fair value adjustments were recorded as an adjustment to mortgage revenues. The fair value of loans held for sale was measured using observable quoted market prices, contract prices, or market price equivalents, consistent with those used by other market participants. Direct loan origination fees and costs related to loans accounted for at fair value were recognized when earned. |
Loan Servicing | Loan Servicing Servicing assets are recognized when servicing rights are acquired or retained through the sale of mortgage and government-guaranteed commercial loans. The unpaid principal balances of loans serviced by the Company for the benefit of others totaled $1.7 billion as of December 31, 2022, and are not included in the accompanying Consolidated Balance Sheets. Servicing rights are initially recorded at fair value which is determined using a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The amortization of mortgage servicing rights is included in mortgage revenue. The amortization of government-guaranteed commercial loans is included in other income. Servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on expected prepayment rates and other inputs. For purposes of measuring impairment, servicing rights are stratified by one or more predominant characteristics of the underlying loans. A valuation allowance is recognized in the amount by which the amortized cost of the rights for each stratum exceeds its fair value, if any. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reversal of the allowance may be recorded in current period earnings. The Company had an insignificant amount of impairment recorded at December 31, 2022 and 2021. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. |
Portfolio Loans | Portfolio Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at the principal balance outstanding, net of purchase premiums and discounts, or net deferred origination fees or costs, charge-offs, and the ACL. Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company amortizes the net amount over the contractual life of the related loan. Interest income is accrued daily on outstanding loan balances. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan. Interest accrued but not collected for loans that are placed on non-accrual status or charged-off is reversed against interest income. The interest on non-accrual loans is accounted for on the cost-recovery method, until returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. PPP Loans At December 31, 2022, the Company had $0.9 million in PPP loans outstanding, with an amortized cost of $0.8 million. In comparison, at December 31, 2021, the Company had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million. The Company received fees totaling $2.5 million, $20.1 million, and $25.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. Incremental direct origination costs the Company incurred were $0.6 million, $4.2 million, and $5.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. Both the fees received and the origination costs have been deferred and are being amortized over the contractual life of these loans, subject to prepayment. The Company recognized $1.9 million, $14.0 million, and $15.2 million in net interest income for fees, net of deferred cost, during the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the remaining amount of fees to be recognized, net of deferred costs, was insignificant. PPP loans contain a forgiveness feature for funds spent on covered expenses, including both principal and accrued interest. Any remaining balance after loan forgiveness maintains a 100% government guarantee for the remaining term of the loan. |
Troubled Debt Restructurings | Troubled Debt Restructurings The Company’s loan portfolio includes certain loans that have been modified in a TDR, where concessions have been granted to borrowers who have experienced financial difficulties. The Company will restructure a loan for its customer after evaluating whether the borrower is able to meet the terms of the loan over the long term, though unable to meet the terms of the loan in the near term due to individual circumstances. The Company considers the customer’s past performance, previous and current credit history, the individual circumstances surrounding the customer’s current difficulties, and the customer’s plan to meet the terms of the loan in the future prior to restructuring the terms of the loan. Generally, restructurings consist of short-term interest rate relief, short-term principal payment relief, short-term principal and interest payment relief, or forbearance (debt forgiveness). A restructured loan that exceeds 90 days past due or is placed on non-accrual status, is classified as non-performing. All TDRs are individually evaluated for purposes of assessing the adequacy of the ACL and for financial reporting purposes. TDRs are evaluated using present value of the expected future cash flows discounted at the loan’s original effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. If the Company determines that the fair value of the TDR is less than the recorded investment in the loan, impairment is recognized through a charge to the ACL in the period of the modification and in periods subsequent to the modification. Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classifications are not included in the Company’s TDR totals. |
Assets Purchased with Credit Deterioration | Assets Purchased with Credit Deterioration On January 1, 2020, First Busey adopted ASC Topic 326 “Financial Instruments-Credit Losses” using the prospective transition approach for financial assets PCD that were previously classified as PCI and accounted for under ASC Subtopic 310-30 “Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality.” In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. In accordance with ASC Topic 326, the amortized cost basis of PCD assets were adjusted to reflect an ACL for any remaining credit discount. Subsequent changes in expected cash flows will be adjusted through the ACL. The noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2020. Subsequent to the adoption of ASC Topic 326, acquired loans are separated into two categories based on the credit risk characteristics of the underlying borrowers as either PCD, for loans which have experienced more than insignificant credit deterioration since origination, or all other loans. At the date of acquisition, an ACL on PCD loans is determined and netted against the amortized cost basis of the individual loans. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. The ACL on PCD loans is recorded in the acquisition accounting and no provision for credit losses is recognized at the acquisition date. Subsequent changes to the ACL are recorded through provision expense. For all other loans, an ACL is established immediately after the acquisition through a charge to the provision for credit losses. |
Allowance for Credit Losses | Allowance for Credit Losses The ACL is a significant estimate in the Company’s Consolidated Financial Statements, affecting both earnings and capital. The ACL is a valuation account that is deducted from the portfolio loans’ amortized cost bases to present the net amount expected to be collected on the portfolio loans. Portfolio loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Recoveries will be recognized up to the aggregate amount of previously charged-off balances. The ACL is established through provision for credit loss expense charged to income. A loan’s amortized cost basis is comprised of the unpaid principal balance of the loan, accrued interest receivable, purchase premiums or discounts, and net deferred origination fees or costs. The Company has estimated its allowance on the amortized cost basis, exclusive of government guaranteed loans and accrued interest receivable. The Company writes-off uncollectible accrued interest receivable in a timely manner and has elected to not measure an allowance for accrued interest receivable. The Company presents the aggregate amount of accrued interest receivable for all financial instruments in other assets on the Consolidated Balance Sheets and the balance of accrued interest receivable is disclosed in “ Note 18. Fair Value Measurements. ” Our methodology influences, and is influenced by, the Company’s overall credit risk management processes. The ACL is managed in accordance with GAAP to provide an adequate reserve for expected credit losses that is reflective of management’s best estimate of what is expected to be collected. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the amortized cost basis. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions such as changes in unemployment rates, property values, and other relevant factors. The calculation also contemplates that the Company may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information. The Company uses four quarters as its reasonable and supportable forecast period. Due to rapidly changing forecasts around the impact of COVID-19, the Company does not believe it has the current ability to incorporate reasonable and supportable forecasts into its CECL models extending beyond four quarters. Ongoing impacts of CECL will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors. |
Premises and Equipment | Premises and Equipment Land is carried at cost less accumulated depreciation of depreciable land improvements. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are: Asset Description Estimated Useful Life Buildings and improvements 3 — 40 years Furniture and equipment 3 — 10 years |
Leases | Leases A determination is made at inception if an arrangement contains a lease. For arrangements containing leases, the Company recognizes leases on the Consolidated Balance Sheets as right of use assets and corresponding lease liabilities. Lease-related assets, or right of use assets, are recognized on the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. ASC Topic 842 “Leases” requires the use of the rate implicit in the lease whenever this rate is readily determinable. If not readily determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the Company used a borrowing rate that corresponded to the remaining lease term. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If, at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of its right of use assets and lease liabilities. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, including premises and equipment, right of use assets, and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from operations of the asset are less than the carrying value of the asset. Cash flows used for this analysis are those directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the asset. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds its fair value. |
Other Real Estate Owned and Other Repossessed Assets | Other Real Estate Owned and Other Repossessed Assets OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans. OREO and other repossessed assets are recorded at the fair value of the property or asset, less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO or other repossessed assets is charged to the ACL. OREO property and other repossessed assets are evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded, as necessary. OREO and other repossessed assets are included in other assets on the Consolidated Balance Sheets. Revenue, expense, gains, and losses from the operations of foreclosed assets are included in earnings. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill represents the excess of the consideration transferred in a business combination over the fair value of the net assets acquired. Goodwill is not amortized but is subject to at least annual impairment assessments. The Company has established December 31 as the annual impairment assessment date. As part of this analysis, each reporting unit's carrying value is compared to its fair value. The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including comparable company analysis and precedent transaction analysis. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment as of December 31, 2022, or 2021. See “ Note 7. Goodwill and Other Intangible Assets ” for further discussion. Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from acquisitions and are amortized over their estimated useful lives. |
Cash Surrender Value of Bank-Owned Life Insurance | Cash Surrender Value of Bank Owned Life Insurance The Company has purchased, or acquired through acquisitions, life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value, which estimates its fair value. The Company maintains a liability for post-employment benefits promised to an employee based on an arrangement between the Company and an employee. In an endorsement split-dollar life insurance arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy would be accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit would be accrued over the employee’s active service period. The Company has an accrued liability of $5.6 million as of December 31, 2022, included in other liabilities, for these arrangements, compared with $5.5 million as of December 31, 2021. |
FHLB Stock | FHLB Stock Busey Bank is a member of the FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost in other assets in our Consolidated Balance Sheet. Dividends are reported as income. |
Other Asset Investments | Other Asset Investments The Company has invested in certain tax-advantaged projects promoting affordable housing, new markets, and historic rehabilitation. These investments are designed to generate returns primarily though the realization of federal and state income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. In addition, the Company has private equities, which are primarily small business investment companies in the financial technology, agricultural, environmental, and affordable housing preservation markets. These investments are considered to be variable interest entities, and are accounted for under the equity method or deferral method, as appropriate. The Company is not required to consolidate variable interest entities in which it has concluded it does not have a controlling financial interest, and is not the primary beneficiary. The following table summarizes the impact of the Company’s other asset investments on our Consolidated Balance Sheets for the periods indicated (dollars in thousands) : As of December 31, Location 2022 2021 Other asset investments Funded investments Other assets $ 58,912 $ 37,417 Unfunded investments Other assets 67,437 52,765 Other asset investments $ 126,349 $ 90,182 Unfunded investment obligations Other liabilities $ (67,437) $ (52,765) Further, the Company owns Visa Class B shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A shares upon final resolution of certain litigation matters involving Visa. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company, (ii) the transferee obtains the right to pledge or exchange the assets it receives, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company is subject to income taxes in U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for the years before 2017. Under GAAP, a valuation allowance is required to be recognized if it is more likely than not that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. Management believes that it is more likely than not that the deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required as of December 31, 2022, or 2021. Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Consolidated Financial Statements when it is more likely than not the position will not be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2022, or 2021. At December 31, 2022, the Company was not under examination by any tax authority; however, we have received an inquiry from the State of Illinois regarding our prior franchise tax filings. In the event the Company is required to amend our prior franchise tax filings, we could incur additional expenses. |
Treasury Stock | Treasury Stock Treasury stock acquired is recorded at cost. Treasury stock issued is valued based on the “first-in, first-out” method. Gains and losses on issuance are recorded as increases or decreases to additional paid-in capital. |
Stock-Based Employee Compensation | Stock-Based Employee Compensation The 2020 Equity Plan was approved by stockholders at the 2020 Annual Meeting of Stockholders. A description of the 2020 Equity Plan can be found in the Company’s Proxy Statement for the 2020 Annual Meeting of Stockholders filed on April 9, 2020. The 2020 Equity Plan replaces the 2010 Equity Incentive Plan and the First Community 2016 Equity Incentive Plan, which, from time to time, the Company used to grant equity awards to legacy employees of First Community. Under the terms of the 2020 Equity Plan, the Company has granted RSU, DSU and PSU awards. The Company’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of the Company’s business, and to attract and retain talented personnel. All of the Company’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans. The Company grants RSU awards to members of management periodically throughout the year. Each RSU is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one year to five years, subject to accelerated vesting upon eligible retirement from the Company. Recipients earn quarterly dividend equivalents on their respective units which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. The Company grants DSU awards, which are RSU awards with a deferred settlement date, to its directors and advisory directors. Each DSU is equivalent to one share of the Company’s common stock. DSUs vest over a one-year period following the grant date. These units generally are subject to the same terms as RSUs under the Company’s 2020 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, these units will continue to earn dividend equivalents. The Company also grants PSU awards to members of management periodically throughout the year. Each PSU is equivalent to one share of the Company’s common stock. The number of units that ultimately vest will be determined based on the achievement of market or other performance goals, subject to accelerated service-based vesting conditions upon eligible retirement from the Company. The Company has outstanding stock options assumed from acquisitions. In 2021, the stockholders of First Busey approved the 2021 ESPP, and since the purchase price under the plan is 85% of the fair value of a share of common stock (a 15% discount to the market price), the plan is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognized in salaries, wages, and employee benefits on the Consolidated Statements of Income. See “ Note 14. Stock-based Compensation ” for further discussion. |
Segment Disclosure | Segment Disclosure Operating segments are components of a business that (i) engage in business activities from which the component may earn revenues and incur expenses; (ii) have operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance; and (iii) for which discrete financial information is available. The Company’s operations are managed along three operating segments consisting of Banking, FirsTech, and Wealth Management. See “ Note 21. Operating Segments and Related Information ” for further discussion. |
Business Combinations | Business Combinations Business combinations are accounted for under ASC Topic 805 “Business Combinations” using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their estimated fair values as of that date. To determine the fair values, the Company may utilize third-party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquirer and the closing date and apply applicable recognition principles. Operating results generated from acquired businesses are included with the Company’s results of operations starting from each date of acquisition. Acquisition related costs are costs the Company incurs to effect a business combination. Those costs may include legal, accounting, valuation, other professional or consulting fees, system conversions, and marketing costs. The Company accounts for acquisition related costs as expenses in the periods in which the costs are incurred and the services are received. Costs that the Company expects, but is not obligated to incur in the future, to effect its plan to exit an activity of an acquiree or to terminate the employment of an acquiree’s employees are not liabilities at the acquisition date. Instead, the Company recognizes these costs in its post-combination Consolidated Financial Statements in accordance with other applicable accounting guidance. |
Derivative Financial Instruments | Derivative Financial Instruments The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to investors, and interest rate swaps with customers and other third parties. Interest Rate Swaps Designated as Cash Flow Hedges The Company entered into derivative instruments designated as cash flow hedges. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. Interest Rate Swaps Not Designated as Hedges The Company may offer derivative contracts to its customers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party dealer. These derivatives generally worked together as an economic interest rate hedge, but the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. Interest Rate Lock Commitments Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements, with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred. Forward Sales Commitments The Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding best-efforts forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities in the Consolidated Financial Statements. While such forward sales commitments generally served as an economic hedge to mortgage loans held for sale and interest rate lock commitments, the Company did not designate them for hedge accounting treatment. Changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. Risk Participation Agreements The Company has entered into a risk participation agreement to manage the credit risk of its derivative position. This agreement transfers counterparty credit risk related to an interest rate swap to another financial institution. In this type of transaction, the Company (purchaser) has a swap agreement with a customer. The Company then enters into a risk participation agreement with a counterparty (seller), under which the counterparty receives a fee to accept a portion of the credit risk. If the customer defaults on the swap contract, the counterparty to the risk participation agreement must reimburse the Company for the counterparty's percentage of the positive fair value of the customer swap as of the default date. If the customer swap has a negative fair value, the counterparty has no reimbursement requirements. If the customer defaults on the swap contract and the counterparty (seller) fulfills its payment obligations under the risk participation agreement, the seller is entitled to a pro rata share of the Company’s claim against the customer under the terms of the swap agreement. |
Off-Balance Sheet Arrangements | Off-Balance Sheet Arrangements The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The Company’s exposure to credit loss is represented by the contractual amount of those commitments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as no condition established in the contract has been violated. These commitments are generally at variable interest rates and generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. These commitments may be secured based on management’s credit evaluation of the borrower. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer’s obligation to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions, and primarily have terms of two years or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property and equipment, and income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. If the commitment is funded, the Company would be entitled to seek recovery from the customer. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in “ Note 18. Fair Value Measurements .” Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Revenue | Revenue ASC Topic 606 “Revenue from Contracts with Customers” outlines a single model for companies to use in accounting for revenue arising from contracts with customers and supersedes most prior revenue recognition guidance, including industry-specific guidance. ASC Topic 606 requires that companies recognize revenue based on the value of transferred goods or services as they occur in the contract and establishes additional disclosures. The Company’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASC Topic 606, and noninterest income. The Company has evaluated its noninterest income and the nature of its contracts with customers and determined that further disaggregation of revenue beyond what is presented in the accompanying Consolidated Financial Statements is not necessary. The Company satisfies its performance obligations on its contracts with customers as services are rendered so there is limited judgment involved in applying ASC Topic 606 that affects the determination of the timing and amount of revenue from contracts with customers. Descriptions of the Company’s primary revenue generating activities that are within the scope of ASC Topic 606, and are presented in the accompanying Consolidated Statements of Income as components of noninterest income, include wealth management fees, payment technology solutions, and fees for customer services. Wealth Management Fees Wealth management fees represent fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services, and other fiduciary activities. Also included are fees received from a third-party broker-dealer as part of a revenue sharing agreement for fees earned from customers that the Company refers to the third party. Revenue is recognized when the performance obligation is completed, which is generally monthly. Payment Technology Solutions Payment technology solutions revenue represents transaction-based fees for technology-driven payment solutions primarily for walk-in, lockbox, interactive voice recognition, and online bill payments through the Company’s subsidiary, FirsTech. Revenue is recognized when the performance obligation is completed, which is generally monthly. Fees for Customer Services Fees for customer services consist of time-based revenue from service fees for account maintenance, item-based revenue from fee-based activity, and transaction-based fee revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed. Payments for such performance obligations are generally received at the time the performance obligations are satisfied. |
Reclassifications | Reclassifications Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2022. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. There were no significant subsequent events for the year ended December 31, 2022, through the filing date of these Consolidated Financial Statements. |
Impact of Recently Adopted and Issued Accounting Standards | Impact of Recently Adopted Accounting Standards ASU 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” deferred the sunset date of ASC Topic 848 from December 31, 2022, to December 31, 2024, extending the time during which entities may apply certain practical expedients for contract modifications that replace a reference to LIBOR or another reference rate that is expected to be discontinued as a result of reference rate reform. This update was effective upon issuance on December 21, 2022. Adoption of this standard did not have a material impact on First Busey’s financial position or results of operations. ASU 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” establishes disclosure requirements for transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model. Disclosures required under this standard include 1) the types of transactions, 2) the accounting for those transactions, and 3) the effect of those transactions on the consolidated financial statements. This update was effective for annual periods beginning January 1, 2022, and applies prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application. Adoption of this standard did not have a material impact on First Busey’s financial position or results of operations. ASU 2021-05 “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” amends the lessor’s classification of certain leases under ASC Topic 842. Under this updated guidance, leases that would otherwise be classified as a sales-type or direct financing lease must be classified by a lessor as an operating lease when the following conditions are met: 1) the contract includes variable lease payments that do not depend on an index or rate and 2) classification as a sales-type or direct financing lease would result in recognition of a selling loss at lease commencement. This guidance was effective for First Busey beginning January 1, 2022, and was applied on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations. ASU 2021-04 “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” clarifies how an issuer should account for modifications or exchanges of equity-classified written call options (i.e. a warrant to purchase the issuer’s common stock). This accounting standard requires the issuer to treat a modification of an equity-classified warrant that does not cause the warrant to become liability-classified as an exchange of the original warrant for a new warrant. This guidance applies whether the modification is structured as an amendment to the terms and conditions of the warrant or as termination of the original warrant and issuance of a new warrant. This guidance was effective for First Busey beginning January 1, 2022, and was applied on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations. Recently Issued Accounting Standards ASU 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” clarifies that contractual restrictions on the sale of equity securities are not considered in measuring the fair value of those equity securities, and further that contractual sale restrictions cannot be recognized and measured as a separate unit of account. This standard applies prospectively, and will be effective for First Busey beginning January 1, 2024. Early adoption is permitted. First Busey is currently evaluating the potential effect on the Company’s financial position and results of operations. ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the TDR accounting model for creditors that have already adopted CECL. In lieu of the TDR accounting model, loan refinancing and restructuring guidance in ASC Subtopic 310-20-35-9 through 35-11 “Receivables—Nonrefundable Fees and Other Costs—Subsequent Measurement—Loan Refinancing or Restructuring” will apply to all loan modifications, including those made for borrowers experiencing financial difficulty. This standard also enhances disclosure requirements related to certain loan modifications. Additionally, this standard introduces new requirements to disclose gross write-off information in the vintage disclosures of financing receivables by credit quality indicator and class of financing receivable by year of origination. This standard applies prospectively. For the transition method related to the recognition and measurement of TDRs, there is an option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. This standard became effective for First Busey beginning January 1, 2023. Adoption of this standard is not expected to have a material impact on our financial position or results of operations. ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method” replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. This update also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This standard became effective for First Busey beginning January 1, 2023. Adoption of this standard is not expected to have a material impact on our financial position or results of operations. ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” requires measurement and recognition in accordance with ASC Topic 606 “Revenue from Contracts with Customers” for contract assets and contract liabilities acquired in a business combination. This update became effective for First Busey beginning January 1, 2023. This standard applies prospectively to all business combinations that occur on or after the date it is adopted. Adoption of this standard is not expected to have a material impact on our financial position or results of operations. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives for premises and equipment | Asset Description Estimated Useful Life Buildings and improvements 3 — 40 years Furniture and equipment 3 — 10 years |
Impact of the Company's other asset investments | The following table summarizes the impact of the Company’s other asset investments on our Consolidated Balance Sheets for the periods indicated (dollars in thousands) : As of December 31, Location 2022 2021 Other asset investments Funded investments Other assets $ 58,912 $ 37,417 Unfunded investments Other assets 67,437 52,765 Other asset investments $ 126,349 $ 90,182 Unfunded investment obligations Other liabilities $ (67,437) $ (52,765) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of fair value estimates of assets acquired and liabilities assumed | Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands) : CAC May 31, Assets acquired Cash and cash equivalents $ 298,637 Securities 702,367 Portfolio loans, net of ACL 430,470 Premises and equipment 17,034 Other intangible assets 17,340 Mortgage servicing rights 629 Other assets 8,176 Total assets acquired 1,474,653 Liabilities assumed Deposits 1,315,671 Other borrowings 16,651 Other liabilities 19,205 Total liabilities assumed 1,351,527 Net assets acquired $ 123,126 Consideration paid: Cash $ 70,358 Common stock 59,105 Total consideration paid $ 129,463 Goodwill $ 6,337 |
DEBT SECURITIES (Tables)
DEBT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, unrealized gains and losses and fair values of securities classified available for sale and held to maturity | The table below provides the amortized cost, unrealized and unrecognized gains and losses, and fair values of debt securities, summarized by major category (dollars in thousands) : As of December 31, 2022 Amortized Unrealized Fair Gross Gains Gross Losses Debt securities available for sale U.S. Treasury securities $ 117,805 $ — $ (3,744) $ 114,061 Obligations of U.S. government corporations and agencies 20,097 3 (321) 19,779 Obligations of states and political subdivisions 283,481 106 (26,075) 257,512 Asset-backed securities 489,558 — (19,683) 469,875 Commercial mortgage-backed securities 124,423 — (16,029) 108,394 Residential mortgage-backed securities 1,463,971 2 (220,717) 1,243,256 Corporate debt securities 273,118 33 (24,635) 248,516 Total debt securities available for sale $ 2,772,453 $ 144 $ (311,204) $ 2,461,393 Amortized Unrecognized Fair Gross Gains Gross Losses Debt securities held to maturity Commercial mortgage-backed securities $ 474,820 $ — $ (63,738) $ 411,082 Residential mortgage-backed securities 443,492 — (69,279) 374,213 Total debt securities held to maturity $ 918,312 $ — $ (133,017) $ 785,295 As of December 31, 2021 Amortized Unrealized Fair Gross Gains Gross Losses Debt securities available for sale U.S. Treasury securities $ 166,768 $ 41 $ (1,047) $ 165,762 Obligations of U.S. government corporations and agencies 37,579 891 — 38,470 Obligations of states and political subdivisions 300,602 7,760 (1,493) 306,869 Asset-backed securities 492,055 295 (164) 492,186 Commercial mortgage-backed securities 625,339 3,425 (13,766) 614,998 Residential mortgage-backed securities 2,095,104 8,889 (34,680) 2,069,313 Corporate debt securities 296,076 1,081 (3,504) 293,653 Total debt securities available for sale $ 4,013,523 $ 22,382 $ (54,654) $ 3,981,251 |
Schedule of amortized cost and fair value of debt securities available for sale and held to maturity by contractual maturity | As of December 31, 2022 Amortized Fair Debt securities available for sale Due in one year or less $ 135,698 $ 133,967 Due after one year through five years 395,914 368,754 Due after five years through ten years 364,065 330,280 Due after ten years 1,876,776 1,628,392 Debt securities available for sale $ 2,772,453 $ 2,461,393 Debt securities held to maturity Due after one year through five years $ 44,392 $ 41,483 Due after five years through ten years 64,593 57,955 Due after ten years 809,327 685,857 Debt securities held to maturity $ 918,312 $ 785,295 |
Schedule of realized gains and losses related to sales of securities | Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Realized gains and losses on debt securities Gross gains on debt securities $ 115 $ 543 $ 1,732 Gross (losses) on debt securities (89) (514) (8) Realized net gains (losses) on debt securities 1 $ 26 $ 29 $ 1,724 ___________________________________________ 1. Net gains (losses) on sales of securities reported on the Consolidated Statements of Income include the sale of equity securities, excluded in this table. |
Schedule of securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position | The following information pertains to debt securities with gross unrealized and unrecognized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands) : As of December 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Debt securities available for sale U.S. Treasury securities 1 $ 74 $ — $ 113,987 $ (3,744) $ 114,061 $ (3,744) Obligations of U.S. government corporations and agencies 19,603 (321) — — 19,603 (321) Obligations of states and political subdivisions 166,147 (10,059) 75,217 (16,016) 241,364 (26,075) Asset-backed securities 390,164 (15,648) 79,711 (4,035) 469,875 (19,683) Commercial mortgage-backed securities 89,428 (12,623) 18,966 (3,406) 108,394 (16,029) Residential mortgage-backed securities 366,221 (38,111) 876,668 (182,606) 1,242,889 (220,717) Corporate debt securities 39,037 (5,079) 204,310 (19,556) 243,347 (24,635) Debt securities available for sale with gross unrealized losses $ 1,070,674 $ (81,841) $ 1,368,859 $ (229,363) $ 2,439,533 $ (311,204) Less than 12 months 12 months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Debt securities held to maturity Commercial mortgage-backed securities $ 58,065 $ (8,009) $ 353,017 $ (55,729) $ 411,082 $ (63,738) Residential mortgage-backed securities — — 374,213 (69,279) 374,213 (69,279) Debt securities held to maturity with gross unrecognized losses $ 58,065 $ (8,009) $ 727,230 $ (125,008) $ 785,295 $ (133,017) ___________________________________________ 1. Unrealized losses for U.S. Treasury securities that have been in a continuous loss position for less than 12 months were insignificant, rounding to zero thousand. As of December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Debt securities available for sale U.S. Treasury securities $ 163,653 $ (1,047) $ — $ — $ 163,653 $ (1,047) Obligations of states and political subdivisions 92,680 (1,493) — — 92,680 (1,493) Asset-backed securities 89,983 (164) — — 89,983 (164) Commercial mortgage-backed securities 389,078 (10,186) 85,905 (3,580) 474,983 (13,766) Residential mortgage-backed securities 1,700,187 (33,453) 20,538 (1,227) 1,720,725 (34,680) Corporate debt securities 241,153 (3,504) — — 241,153 (3,504) Debt securities available for sale with gross unrealized losses $ 2,676,734 $ (49,847) $ 106,443 $ (4,807) $ 2,783,177 $ (54,654) Additional information about debt securities in an unrealized or unrecognized loss position is presented in the tables below (dollars in thousands) : As of December 31, 2022 Available for Sale Held to Maturity Total Debt securities with gross unrealized or unrecognized losses, fair value $ 2,439,533 $ 785,295 $ 3,224,828 Gross unrealized or unrecognized losses on debt securities 311,204 133,017 444,221 Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses 12.8 % 16.9 % 13.8 % Count of debt securities 1,091 55 1,146 Count of debt securities in an unrealized or unrecognized loss position 1,032 55 1,087 As of December 31, 2021 Available for Sale Held to Maturity Total Debt securities with gross unrealized losses, fair value $ 2,783,177 $ — $ 2,783,177 Gross unrealized losses on debt securities 54,654 — 54,654 Ratio of gross unrealized losses to debt securities with gross unrealized losses 2.0 % — % 2.0 % Count of debt securities 1,252 — 1,252 Count of debt securities in an unrealized loss position 373 — 373 |
PORTFOLIO LOANS (Tables)
PORTFOLIO LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Distribution of portfolio loans | Distributions of the loan portfolio by loan category were as follows (dollars in thousands) : As of December 31, 2022 2021 Portfolio loans Commercial $ 1,974,154 $ 1,943,886 Commercial real estate 3,261,873 3,119,807 Real estate construction 530,469 385,996 Retail real estate 1,657,082 1,512,976 Retail other 302,124 226,333 Total portfolio loans $ 7,725,702 $ 7,188,998 ACL (91,608) (87,887) Portfolio loans, net $ 7,634,094 $ 7,101,111 |
Schedule of financial instruments owned and pledged as collateral | The Company pledged loans as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands) : As of December 31, 2022 2021 Pledged loans FHLB $ 5,095,448 $ 4,656,331 Federal Reserve Bank 804,718 808,254 Total pledged loans $ 5,900,166 $ 5,464,585 To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands) : As of December 31, 2022 2021 Cash pledged to secure obligations under derivative contracts $ 38,609 $ 27,300 Collateral held to secure obligations under derivative contracts 29,830 — |
Summary of risk grades segregated by category of portfolio loans (excluding accretable purchase accounting adjustments and clearings) | The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands) : As of December 31, 2022 Pass Watch Special Substandard Substandard Total Portfolio loans Commercial $ 1,668,495 $ 201,758 $ 46,540 $ 51,187 $ 6,174 $ 1,974,154 Commercial real estate 2,851,709 326,455 43,526 34,539 5,644 3,261,873 Real estate construction 502,904 25,164 1 2,400 — 530,469 Retail real estate 1,639,599 10,520 1,338 2,529 3,096 1,657,082 Retail other 301,971 — — — 153 302,124 Total portfolio loans $ 6,964,678 $ 563,897 $ 91,405 $ 90,655 $ 15,067 $ 7,725,702 As of December 31, 2021 Pass Watch Special Substandard Substandard Total Portfolio loans Commercial $ 1,747,756 $ 93,582 $ 69,427 $ 26,117 $ 7,004 $ 1,943,886 Commercial real estate 2,682,441 343,304 49,695 38,394 5,973 3,119,807 Real estate construction 369,797 13,793 6 2,400 — 385,996 Retail real estate 1,491,845 12,374 1,992 3,867 2,898 1,512,976 Retail other 226,262 — — — 71 226,333 Total portfolio loans $ 6,518,101 $ 463,053 $ 121,120 $ 70,778 $ 15,946 $ 7,188,998 |
Risk grades of portfolio loans, further sorted by origination | Risk grades of portfolio loans, further sorted by origination year, are as follows (dollars in thousands) : As of December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Total Risk Grade Ratings 2022 2021 2020 2019 2018 Prior Commercial Pass $ 479,893 $ 266,122 $ 136,445 $ 52,046 $ 50,764 $ 135,000 $ 548,225 $ 1,668,495 Watch 54,195 49,382 3,288 7,201 1,258 2,160 84,274 201,758 Special Mention 1,958 937 1,642 974 1,000 17,024 23,005 46,540 Substandard 8,926 1,165 570 6,671 2,382 5,191 26,282 51,187 Substandard non-accrual 21 3,292 226 135 — 100 2,400 6,174 Total commercial 544,993 320,898 142,171 67,027 55,404 159,475 684,186 1,974,154 Commercial real estate Pass 883,688 819,133 478,452 297,525 161,409 198,419 13,083 2,851,709 Watch 77,346 56,113 64,282 96,664 21,592 5,758 4,700 326,455 Special Mention 11,943 5,389 12,386 1,420 6,917 5,471 — 43,526 Substandard 5,340 13,528 3,454 1,907 10,248 62 — 34,539 Substandard non-accrual — 3,959 33 — 1,647 5 — 5,644 Total commercial real estate 978,317 898,122 558,607 397,516 201,813 209,715 17,783 3,261,873 Real estate construction Pass 219,112 191,724 68,015 1,490 1,901 1,751 18,911 502,904 Watch 8,530 12,019 3,169 48 — 1,398 — 25,164 Special Mention — — — 1 — — — 1 Substandard 2,400 — — — — — — 2,400 Total real estate construction 230,042 203,743 71,184 1,539 1,901 3,149 18,911 530,469 Retail real estate Pass 396,547 456,158 175,148 77,569 56,887 267,387 209,903 1,639,599 Watch 2,928 2,991 1,846 1,444 1,063 27 221 10,520 Special Mention 945 — — — — 393 — 1,338 Substandard 77 732 198 81 141 1,293 7 2,529 Substandard non-accrual 10 191 107 32 390 1,708 658 3,096 Total retail real estate 400,507 460,072 177,299 79,126 58,481 270,808 210,789 1,657,082 Retail other Pass 134,567 43,512 13,141 13,086 5,646 991 91,028 301,971 Substandard non-accrual 14 134 3 — — 2 — 153 Total retail other 134,581 43,646 13,144 13,086 5,646 993 91,028 302,124 Total portfolio loans $ 2,288,440 $ 1,926,481 $ 962,405 $ 558,294 $ 323,245 $ 644,140 $ 1,022,697 $ 7,725,702 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Total Risk Grade Ratings 2021 2020 2019 2018 2017 Prior Commercial Pass $ 512,729 $ 228,811 $ 107,877 $ 84,873 $ 74,351 $ 122,418 $ 616,697 $ 1,747,756 Watch 13,847 5,913 14,274 5,060 1,361 2,866 50,261 93,582 Special Mention 7,062 898 5,961 4,025 6,790 11,845 32,846 69,427 Substandard 3,595 3,362 3,136 1,855 1,125 5,459 7,585 26,117 Substandard non-accrual 4,126 364 142 — 320 52 2,000 7,004 Total commercial 541,359 239,348 131,390 95,813 83,947 142,640 709,389 1,943,886 Commercial real estate Pass 969,548 637,550 425,850 235,928 200,373 198,002 15,190 2,682,441 Watch 51,560 38,820 123,324 48,088 46,761 32,608 2,143 343,304 Special Mention 9,542 7,060 6,585 10,098 6,357 9,870 183 49,695 Substandard 21,002 3,781 1,218 11,451 521 421 — 38,394 Substandard non-accrual 112 181 359 1,893 3,407 21 — 5,973 Total commercial real estate 1,051,764 687,392 557,336 307,458 257,419 240,922 17,516 3,119,807 Real estate construction Pass 202,082 123,491 31,927 3,155 738 1,223 7,181 369,797 Watch 7,886 4,159 54 — 1,574 120 — 13,793 Special Mention — — 6 — — — — 6 Substandard — 2,400 — — — — — 2,400 Total real estate construction 209,968 130,050 31,987 3,155 2,312 1,343 7,181 385,996 Retail real estate Pass 523,541 215,068 96,617 79,158 82,478 281,737 213,246 1,491,845 Watch 4,100 2,460 1,780 1,312 343 150 2,229 12,374 Special Mention 1,965 27 — — — — — 1,992 Substandard 1,369 232 12 71 165 1,687 331 3,867 Substandard non-accrual 235 63 — 16 227 1,705 652 2,898 Total retail real estate 531,210 217,850 98,409 80,557 83,213 285,279 216,458 1,512,976 Retail other Pass 59,366 22,305 26,126 16,189 7,180 1,326 93,770 226,262 Substandard non-accrual 34 10 — 14 13 — — 71 Total retail other 59,400 22,315 26,126 16,203 7,193 1,326 93,770 226,333 Total portfolio loans $ 2,393,701 $ 1,296,955 $ 845,248 $ 503,186 $ 434,084 $ 671,510 $ 1,044,314 $ 7,188,998 |
Summary of portfolio loans that are past due and still accruing or on a non-accrual status | An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on non-accrual status, is as follows (dollars in thousands) : As of December 31, 2022 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Past due and non-accrual loans Commercial $ 2 $ — $ — $ 6,174 Commercial real estate 124 — — 5,644 Retail real estate 4,709 1,239 673 3,096 Retail other 414 60 — 153 Total past due and non-accrual loans $ 5,249 $ 1,299 $ 673 $ 15,067 As of December 31, 2021 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Past due and non-accrual loans Commercial $ 363 $ 10 $ 213 $ 7,004 Commercial real estate 151 441 — 5,973 Real estate construction 56 — — — Retail real estate 3,312 1,830 693 2,898 Retail other 82 16 — 71 Total past due and non-accrual loans $ 3,964 $ 2,297 $ 906 $ 15,946 |
Summary of TDR loans | TDR loan balances are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 TDRs In compliance with modified terms $ 3,032 $ 1,801 Non-performing TDRs 537 551 Total TDRs $ 3,569 $ 2,352 Loans that were designated as TDRs during the years ended as of the dates indicated are summarized as follows (dollars in thousands) : Newly Designated TDRs Recorded Investment 1 Number of Rate Modification 2 Payment Modification 2 December 31, 2022 Commercial 3 $ 136 $ 996 Retail real estate 1 — 517 Total 4 $ 136 $ 1,513 December 31, 2021 Commercial 1 $ 364 $ — December 31, 2020 Commercial 3 $ 130 $ — Commercial real estate 1 651 — Real estate construction 4 — 986 Total 8 $ 781 $ 986 ___________________________________________ 1. Recorded investment for newly designated TDR’s that were still outstanding as of the dates indicated. 2. TDRs may include multiple concessions; those that include an interest rate concession and payment concession are shown in the rate modification column. |
Schedule of suspended requirements under GAAP related to TDR classification | The Company’s TDR loan totals do not include the following modified loans with payment deferrals that fall under the CARES Act or Interagency Statement that suspended requirements under GAAP related to TDR classification (dollars in thousands) : As of December 31, 2022 As of December 31, 2021 Number of Recorded Number of Recorded COVID-19 loan modifications Commercial loans: Interest-only deferrals 8 $ 20,556 32 $ 128,730 Retail loans: Mortgage and personal loan deferrals 1 99 2 137 Total COVID-19 loans modifications 9 $ 20,655 34 $ 128,867 |
Schedule of details of impaired loans, segregated by category | Average recorded investment is calculated using the most recent four quarters (dollars in thousands) : As of December 31, 2022 Unpaid Recorded Investment Average With No With Total Related Loans evaluated individually Commercial $ 9,589 $ 656 $ 5,918 $ 6,574 $ 2,476 $ 6,761 Commercial real estate 8,039 2,334 3,903 6,237 2,000 5,219 Real estate construction 247 247 — 247 — 260 Retail real estate 2,733 2,564 25 2,589 25 2,311 Total loans evaluated individually $ 20,608 $ 5,801 $ 9,846 $ 15,647 $ 4,501 $ 14,551 As of December 31, 2021 Unpaid Recorded Investment Average With No With Total Related Loans evaluated individually Commercial $ 10,247 $ 498 $ 6,490 $ 6,988 $ 3,564 $ 8,791 Commercial real estate 6,456 5,750 — 5,750 — 6,390 Real estate construction 272 272 — 272 — 282 Retail real estate 2,514 2,345 25 2,370 25 4,093 Total loans evaluated individually $ 19,489 $ 8,865 $ 6,515 $ 15,380 $ 3,589 $ 19,556 |
Schedule of activity on the allowance for loan losses | The following tables summarize activity in the ACL attributable to each loan category. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands) : Commercial Commercial Real Estate Retail Real Retail Other Total ACL Balance, December 31, 2019 $ 18,291 $ 21,190 $ 3,204 $ 10,495 $ 568 $ 53,748 Adoption of ASC 326-30 715 9,306 2,954 3,292 566 16,833 Provision for credit losses 10,832 17,511 1,452 9,050 (48) 38,797 Charged-off (6,376) (1,972) (18) (2,057) (665) (11,088) Recoveries 404 195 601 1,212 346 2,758 ACL balance, December 31, 2020 23,866 46,230 8,193 21,992 767 101,048 Day 1 PCD 1 3,546 336 — 129 167 4,178 Provision for credit losses (2,160) (7,651) (3,180) (4,456) 2,346 (15,101) Charged-off (2,026) (925) (209) (1,145) (478) (4,783) Recoveries 629 259 298 1,069 290 2,545 ACL balance, December 31, 2021 23,855 38,249 5,102 17,589 3,092 87,887 Provision for credit losses 497 892 1,142 219 1,873 4,623 Charged-off (1,069) (1,375) (23) (251) (461) (3,179) Recoveries 577 533 236 636 295 2,277 ACL balance, December 31, 2022 $ 23,860 $ 38,299 $ 6,457 $ 18,193 $ 4,799 $ 91,608 __________________________________________ 1. The Day 1 PCD is attributable to the CAC acquisition. |
Schedule of allowance for loan losses and recorded investments in portfolio loans, by category | The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands) : As of December 31, 2022 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Total Collectively Individually Total Portfolio loan category Commercial $ 1,967,580 $ 6,574 $ 1,974,154 $ 21,384 $ 2,476 $ 23,860 Commercial real estate 3,255,636 6,237 3,261,873 36,299 2,000 38,299 Real estate construction 530,222 247 530,469 6,457 — 6,457 Retail real estate 1,654,493 2,589 1,657,082 18,168 25 18,193 Retail other 302,124 — 302,124 4,799 — 4,799 Portfolio loans and related ACL $ 7,710,055 $ 15,647 $ 7,725,702 $ 87,107 $ 4,501 $ 91,608 As of December 31, 2021 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Total Collectively Individually Total Portfolio loan category Commercial $ 1,936,898 $ 6,988 $ 1,943,886 $ 20,291 $ 3,564 $ 23,855 Commercial real estate 3,114,057 5,750 3,119,807 38,249 — 38,249 Real estate construction 385,724 272 385,996 5,102 — 5,102 Retail real estate 1,510,606 2,370 1,512,976 17,564 25 17,589 Retail other 226,333 — 226,333 3,092 — 3,092 Portfolio loans and related ACL $ 7,173,618 $ 15,380 $ 7,188,998 $ 84,298 $ 3,589 $ 87,887 |
OTHER REAL ESTATE OWNED AND O_2
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Summary of OREO and other repossessed assets balances | The following table summarizes the composition of the Company’s OREO and other repossessed asset balances as of the periods presented (dollars in thousands) : As of December 31, 2022 2021 OREO Commercial $ — $ 2,839 Residential 70 235 Total OREO 70 3,074 Other repossessed assets 780 1,342 OREO and other repossessed assets $ 850 $ 4,416 |
Summary of activity related to OREO and other repossessed assets | The following table summarizes activity related to OREO and other repossessed assets (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Changes in OREO and other repossessed assets OREO and other repossessed assets beginning balance $ 4,416 $ 4,571 $ 3,057 Additions, transfers from loans 175 1,610 2,867 Sales (2,565) (1,721) (1,282) Cash payments collected (565) (43) (3) Impairment of OREO and other repossessed assets (611) (1) (68) OREO and other repossessed assets ending balance $ 850 $ 4,416 $ 4,571 |
Schedule of activity related to foreclosed assets | Activity related to OREO and other repossessed assets included the following (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Activity for OREO and other repossessed assets Net loss (gain) on sales 665 173 (90) Operating expenses, net of income 248 468 538 Activity for OREO and other repossessed assets $ 913 $ 641 $ 448 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of premises and equipment, net | Premises and equipment are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Premises and equipment Land and improvements $ 44,193 $ 45,595 Buildings and improvements 128,669 132,011 Furniture and equipment 52,991 54,473 Premises and equipment, gross 225,853 232,079 Accumulated depreciation 99,329 95,932 Premises and equipment, net $ 126,524 $ 136,147 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill by operating segment | The carrying amount of goodwill by operating segment is as follows (dollars in thousands) : As of December 31, 2022 2021 Goodwill Banking $ 294,773 $ 294,773 FirsTech 8,992 8,992 Wealth Management 14,108 14,108 Total goodwill $ 317,873 $ 317,873 |
Schedule of other intangible asset disclosures | Core deposit and customer relationship intangible assets are amortized over the estimated period during which the Company expects to benefit from the assets. Intangible asset disclosures are as follows (dollars in thousands) : As of December 31, 2022 2021 Core deposit Customer Total Core deposit Customer Total Intangible Assets Intangible assets, gross $ 99,065 $ 33,138 $ 132,203 $ 99,065 $ 33,138 $ 132,203 Accumulated amortization 63,476 22,304 85,780 55,161 18,991 74,152 Intangible assets, net $ 35,589 $ 10,834 $ 46,423 $ 43,904 $ 14,147 $ 58,051 |
Schedule of amortization expense relating to intangible assets | Amortization expense related to intangible assets, as reflected in the Company's Consolidated Statements of Income, is presented in the table below (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Amortization Expense Core deposit intangible $ 8,315 $ 8,253 $ 7,753 Customer relationship intangible 3,313 3,021 2,255 Amortization of intangible assets $ 11,628 $ 11,274 $ 10,008 |
Schedule of carrying amount of amortized intangible assets | Future expense for the amortization of intangible assets, as estimated, is summarized in the table below (dollars in thousands) : As of December 31, 2022 Core deposit Customer Total Estimated amortization expense 2023 $ 7,616 $ 2,816 $ 10,432 2024 6,902 2,318 9,220 2025 5,956 1,887 7,843 2026 5,227 1,479 6,706 2027 4,490 1,091 5,581 Thereafter 5,398 1,243 6,641 Total estimated amortization expense $ 35,589 $ 10,834 $ 46,423 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of composition of deposits | The composition of deposits is as follows (dollars in thousands) : As of December 31, 2022 2021 Deposits Noninterest-bearing demand deposits $ 3,393,666 $ 3,670,267 Interest-bearing transaction deposits 2,857,818 2,720,417 Saving deposits and money market deposits 2,964,421 3,442,244 Time deposits 855,375 935,649 Total deposits $ 10,071,280 $ 10,768,577 Additional information about our deposits is as follows (dollars in thousands) : As of December 31, 2022 2021 Brokered savings deposits and money market deposits $ 1,303 $ 2,248 Brokered time deposits 275 266 Total time deposits with a minimum denomination of $100,000 416,445 454,649 Total time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 120,377 137,449 |
Schedule of maturities of time deposits | Scheduled maturities of time deposits are as follows (dollars in thousands) : As of Time deposits by schedule of maturities 2023 $ 560,147 2024 229,263 2025 34,307 2026 16,637 2027 14,301 Thereafter 720 Time deposits $ 855,375 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of distribution of securities sold under agreements to repurchase and short-term borrowings and weighted average interest rates | Securities sold under agreements to repurchase were as follows (dollars in thousands) : As of December 31, 2022 2021 Securities sold under agreements to repurchase $ 229,806 $ 270,139 Weighted average rate for securities sold under agreements to repurchase 1.91 % 0.08 % |
Schedule of short-term debt | Short-term borrowings are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Short-term borrowings FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months $ 339,054 $ 5,678 Term Loan, current portion due within 12 months 12,000 12,000 Total short-term debt $ 351,054 $ 17,678 |
Summary of long-term debt | Long-term debt is summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Long-term debt Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock $ — $ 4,056 Term Loan 30,000 42,000 Total long-term debt $ 30,000 $ 46,056 |
Schedule of unamortized debt issuance cost | As of December 31, 2022 2021 Unamortized debt issuance costs Senior notes issued in 2017 $ — $ 56 Subordinated notes issued in 2017 — 549 Subordinated notes issued in 2020 1,220 1,678 Subordinated notes issued in 2022 1,742 — Total unamortized debt issuance costs $ 2,962 $ 2,283 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of applicable holding company and bank regulatory capital requirements | The following tables summarize regulatory capital requirements applicable to the Company and its subsidiary bank (dollars in thousands) : As of December 31, 2022 Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,081,686 11.96 % $ 406,980 4.50 % $ 587,861 6.50 % Busey Bank 1,306,716 14.49 % 405,736 4.50 % 586,063 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,155,686 12.78 % $ 542,640 6.00 % $ 723,521 8.00 % Busey Bank 1,306,716 14.49 % 540,981 6.00 % 721,308 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,457,994 16.12 % $ 723,521 8.00 % $ 904,401 10.00 % Busey Bank 1,384,024 15.35 % 721,308 8.00 % 901,635 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,155,686 9.45 % $ 489,124 4.00 % N/A N/A Busey Bank 1,306,716 10.72 % 487,541 4.00 % $ 609,426 5.00 % As of December 31, 2021 Actual Minimum Minimum Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 995,874 11.85 % $ 378,334 4.50 % $ 546,482 6.50 % Busey Bank 1,241,303 14.81 % 377,096 4.50 % 544,695 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,069,874 12.73 % $ 504,445 6.00 % $ 672,594 8.00 % Busey Bank 1,241,303 14.81 % 502,795 6.00 % 670,394 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,320,187 15.70 % $ 672,594 8.00 % $ 840,742 10.00 % Busey Bank 1,306,616 15.59 % 670,394 8.00 % 837,992 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,069,874 8.52 % $ 502,336 4.00 % N/A N/A Busey Bank 1,241,303 9.91 % 501,104 4.00 % $ 626,379 5.00 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of income taxes | The components of income taxes consist of (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Income tax expense Current expense: Federal $ 20,815 $ 20,261 $ 21,027 State 13,883 8,448 12,144 Deferred expense: Federal (700) 3,644 (3,657) State (572) 1,021 (1,652) Total income tax expense $ 33,426 $ 33,374 $ 27,862 |
Schedule of the reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of income | Years Ended December 31, 2022 2021 2020 Percent of pretax income Income tax at federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: Tax-exempt interest, net (1.1) % (1.1) % (1.6) % Stock incentive 0.1 % — % 0.2 % State income taxes, net 6.5 % 4.5 % 6.5 % Income on bank owned life insurance (0.5) % (0.7) % (0.9) % Tax credit investments (5.6) % (3.6) % (3.2) % Other, net 0.3 % 1.2 % (0.3) % Effective income tax rate 20.7 % 21.3 % 21.7 % |
Schedule of the deferred tax assets and liabilities | Net deferred taxes, reported in other assets or other liabilities in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities (dollars in thousands) : As of December 31, 2022 2021 Deferred taxes Deferred tax assets: ACL $ 26,979 $ 25,884 Unrealized loss on cash flow hedge 8,365 273 Unrealized losses on securities available for sale 88,666 9,199 Unrealized losses on securities held to maturity 11,919 — Stock-based compensation 5,504 4,204 Deferred compensation 53 55 Purchase accounting adjustments 656 1,213 Accrued vacation 411 398 Lease liabilities 3,564 2,893 Employee costs 3,298 2,847 Other 376 390 Total deferred tax assets 149,791 47,356 Deferred tax liabilities: Basis in premises and equipment (1,541) (1,347) Affordable housing partnerships and other investments (6,669) (3,696) Purchase accounting adjustments (1,207) (1,362) Mortgage servicing assets (2,132) (2,853) Basis in core deposit, customer intangible assets, and asset purchase goodwill (6,956) (9,485) Deferred loan origination costs (3,845) (2,454) Right of use assets (3,518) (2,877) Unrealized gain on equity securities (512) (1,099) Other (586) (560) Total deferred tax liabilities (26,966) (25,733) Net deferred tax asset $ 122,825 $ 21,623 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
Schedule of expenses related to the employee benefit plans | Expenses related to our employee benefit plans, reported in salaries, wages, and employee benefits in the accompanying Consolidated Statements of Income, are summarized in the table below (dollars in thousands) : Years Ended December 31, 2022 2021 2020 401(k) Plan expenses Profit-sharing expenses $ 2,960 $ 2,823 $ 2,551 Safe Harbor match expenses $ 4,094 $ 3,708 $ 3,431 Total 401(k) Plan expenses $ 7,054 $ 6,531 $ 5,982 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of changes in, the Company's stock option awards | Shares Weighted- Weighted- Intrinsic Options outstanding at December 31, 2021 31,386 $ 23.53 4.88 $ 113 Exercised (4,840) 23.53 Expired (440) 23.53 Options outstanding at December 31, 2022 26,106 $ 23.53 3.88 $ 31 Options exercisable at December 31, 2022 26,106 $ 23.53 3.88 $ 31 |
Summary of changes in the Company's RSU, PSU, and DSU awards | A summary of changes in the Company’s RSU awards for the year ended December 31, 2022, is as follows: RSU Awards Shares Weighted- Nonvested at December 31, 2021 1,147,927 $ 23.97 Granted 156,483 25.79 Dividend equivalents earned 43,916 24.83 Vested (203,230) 27.66 Forfeited (48,165) 23.46 Nonvested at December 31, 2022 1,096,931 23.61 A summary of changes in the Company’s PSU awards for the year ended December 31, 2022, is as follows: PSU Awards Shares 1 Weighted- Nonvested at December 31, 2021 113,915 $ 22.86 Granted 195,240 26.14 Dividend equivalents earned 2 832 22.63 Vested 2 (8,694) 16.86 Forfeited 2 (8,080) 25.21 Adjustment for performance conditions 2,3 (7,862) 16.25 Nonvested at December 31, 2022 285,351 25.40 Vested and outstanding at December 31, 2022 8,694 16.86 ___________________________________________ 1. Shares for PSU awards represent target shares at grant date. 2. PSUs granted in 2020 vested on December 31, 2022. In January 2023, it was determined that performance criteria had been met at 50% of target. 3. Adjustments for performance conditions represent the difference between the number of target shares at grant date and the number of actual shares earned for the performance period completed. A summary of changes in the Company’s DSU awards for the year ended December 31, 2022, is as follows: DSU Awards Shares Weighted- Nonvested at December 31, 2021 34,135 $ 24.59 Granted 32,658 25.79 Dividend equivalents earned 5,473 24.47 Vested (41,181) 24.67 Nonvested at December 31, 2022 31,085 25.75 Vested and outstanding at December 31, 2022 112,434 23.10 |
Schedule of Stock-based compensation expense | The Company recognized compensation expense related to non-vested RSU, PSU, and DSU awards, as well as the 2021 ESPP, as presented in the table below (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Stock-based compensation expense RSU awards $ 4,648 $ 5,809 $ 6,493 PSU awards 1 3,240 979 77 DSU awards 876 962 565 2021 ESPP 204 114 — Total stock-based compensation expense $ 8,968 $ 7,864 $ 7,135 ___________________________________________ 1. Expense for market-based PSU awards represents amounts based on target shares at grant date. Expense for performance-based PSU awards represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated. |
Schedule of Unamortized stock-based compensation expense | Unamortized stock-based compensation expense is presented in the table below (dollars in thousands) : As of December 31, 2022 2021 Unamortized stock-based compensation RSU awards $ 8,570 $ 10,204 PSU awards 1 4,279 1,547 DSU awards 175 209 Total unamortized stock-based compensation $ 13,024 $ 11,960 Weighted average period over which expense is to be recognized 2.5 yrs 2.9 yrs ___________________________________________ 1. Unamortized expense for market-based PSU awards represents amounts based on target shares at grant date. Unamortized expense for performance-based PSU awards represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated. |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of the analysis of the changes in loans to related parties | The following is an analysis of the changes in loans to related parties, as a group (dollars in thousands) : As of and for the Year Ended Balance of loans to related parties, December 31, 2021 $ 42,557 Change in relationship (11,254) New loans/advances 39,545 Repayments (15,507) Balance of loans to related parties, December 31, 2022 $ 55,341 Unused commitments to directors and executive officers $ 12,722 |
OUTSTANDING COMMITMENTS AND C_2
OUTSTANDING COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual amount of exposure to off-balance-sheet risk | A summary of the contractual amount of the Company’s exposure to off-balance-sheet risk relating to the Company’s commitments to extend credit and standby letters of credit follows (dollars in thousands) : As of December 31, 2022 2021 Financial instruments whose contract amounts represent credit risk Commitments to extend credit $ 1,991,769 $ 1,983,655 Standby letters of credit 33,008 32,552 Total commitments $ 2,024,777 $ 2,016,207 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of financial instruments owned and pledged as collateral | The Company pledged loans as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands) : As of December 31, 2022 2021 Pledged loans FHLB $ 5,095,448 $ 4,656,331 Federal Reserve Bank 804,718 808,254 Total pledged loans $ 5,900,166 $ 5,464,585 To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands) : As of December 31, 2022 2021 Cash pledged to secure obligations under derivative contracts $ 38,609 $ 27,300 Collateral held to secure obligations under derivative contracts 29,830 — |
Summary of the interest-rate swaps designated as cash flow hedges | A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands) : As of December 31, Location 2022 2021 Debt Swap Notional amount $ 50,000 $ 50,000 Weighted average fixed pay rates 1.79 % 1.79 % Weighted average variable 3-month LIBOR receive rates 4.77 % 0.20 % Weighted average maturity, in years 1.71 yrs 2.71 yrs Loan Swap Notional amount $ 300,000 N/A Weighted average fixed receive rates 4.81 % N/A Weighted average variable Prime pay rates 7.32 % N/A Weighted average maturity, in years 6.10 yrs N/A Gross aggregate fair value of the swaps Gross aggregate fair value of swap assets Other assets $ 2,535 $ — Gross aggregate fair value of swap liabilities Other liabilities $ 32,367 $ 958 Balances carried in AOCI Unrealized gains (losses) on cash flow hedges, net of tax AOCI $ (20,985) $ (685) |
Reclassification of unrealized gains and losses from OCI | The Company expects to reclassify unrealized gains and losses from OCI to interest income and interest expense as shown in the following table, during the next 12 months (dollars in thousands) . Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2022. As of Unrealized gains (losses) in OCI expected to be recognized in income Unrealized gains expected to be reclassified from OCI to interest income $ 372 Unrealized losses expected to be reclassified from OCI to interest expense (648) Net unrealized gains (losses) in OCI expected to be recognized in net interest income $ (276) |
Schedule of interest income (expense) recorded on swap transactions | Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Interest income (expense) on swap transactions $ (583) $ (1,067) $ (758) |
Summary of net gains (losses) relating to these derivative instruments | The following table reflects the net gains (losses) recorded in AOCI and the Consolidated Statements of Comprehensive Income relating to cash flow derivative instruments for the periods presented (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Unrealized gains (losses) on cash flow hedges Net gain (loss) recognized in OCI, net of tax $ (20,717) $ 736 $ (2,526) (Gain) loss reclassified from OCI to interest income 395 — — (Gain) loss reclassified from OCI to interest expense 22 763 542 Net change in unrealized gains (losses) on cash flow hedges, net of tax $ (20,300) $ 1,499 $ (1,984) Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the Consolidated Statements of Income and summarized as follows (dollars in thousands) : Years Ended December 31, Location 2022 2021 2020 Interest rate swaps Pay floating, receive fixed Noninterest expense $ 19,308 $ (12,587) $ 20,331 Pay fixed, receive floating Noninterest expense (19,308) 12,587 (20,331) Net change in fair value of interest rate swaps $ — $ — $ — Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands) : Years Ended December 31, Location 2022 2021 2020 Net gains (losses) Interest rate lock commitments Mortgage revenue $ 15 $ 1,702 $ 9,667 Forward sales commitments Mortgage revenue (38) (4,045) (18,329) Net gains (losses) $ (23) $ (2,343) $ (8,662) |
Summary of fair values of derivative assets and liabilities recorded in consolidated balance sheet | Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps, included in other assets and other liabilities in the Consolidated Balance Sheets, are summarized as follows (dollars in thousands) : As of December 31, 2022 Derivative Asset Derivative Liability Notional Fair Notional Fair Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 48,728 $ 370 $ 528,183 $ 39,685 Interest rate swaps – pay fixed, receive floating 528,183 39,685 48,728 370 Total derivatives not designated as hedging instruments $ 576,911 $ 40,055 $ 576,911 $ 40,055 As of December 31, 2021 Derivative Asset Derivative Liability Notional Fair Notional Fair Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 404,572 $ 17,839 $ 86,784 $ 2,259 Interest rate swaps – pay fixed, receive floating 86,784 2,259 404,572 17,839 Total derivatives not designated as hedging instruments $ 491,356 $ 20,098 $ 491,356 $ 20,098 Amounts and fair values of mortgage banking derivatives included in the Consolidated Balance Sheets are summarized as follows (dollars in thousands) : As of December 31, 2022 As of December 31, 2021 Location Notional Fair Notional Fair Derivatives with positive fair value Interest rate lock commitments Other assets $ 1,517 $ 16 $ 19,384 $ 206 Forward sales commitments Other assets 83 1 1,884 10 Mortgage banking derivatives recorded in other assets $ 1,600 $ 17 $ 21,268 $ 216 Derivatives with negative fair value Interest rate lock commitments Other liabilities $ 83 $ 1 $ 499 $ 6 Forward sales commitments Other liabilities 2,757 39 41,002 439 Mortgage banking derivatives recorded in other liabilities $ 2,840 $ 40 $ 41,501 $ 445 |
Schedule of notional amount and fair value of risk participation agreement | The risk participation agreements mature in 2026 and 2028, and are summarized as follows (dollars in thousands) : As of December 31, 2022 2021 Risk participation agreements Notional amount $ 18,899 $ 3,990 Fair value 5 — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis | The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2022, and 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) : As of December 31, 2022 Level 1 Level 2 Level 3 Total Debt securities available for sale: U.S. Treasury securities $ — $ 114,061 $ — $ 114,061 Obligations of U.S. government corporations and agencies — 19,779 — 19,779 Obligations of states and political subdivisions — 257,512 — 257,512 Asset-backed securities — 469,875 — 469,875 Commercial mortgage-backed securities — 108,394 — 108,394 Residential mortgage-backed securities — 1,243,256 — 1,243,256 Corporate debt securities — 248,516 — 248,516 Equity securities — 11,535 — 11,535 Derivative assets — 42,607 5 42,612 Derivative liabilities — 72,462 — 72,462 As of December 31, 2021 Level 1 Level 2 Level 3 Total Debt securities available for sale: U.S. Treasury securities $ — $ 165,762 $ — $ 165,762 Obligations of U.S. government corporations and agencies — 38,470 — 38,470 Obligations of states and political subdivisions — 306,869 — 306,869 Asset-backed securities — 492,186 — 492,186 Commercial mortgage-backed securities — 614,998 — 614,998 Residential mortgage-backed securities — 2,069,313 — 2,069,313 Corporate debt securities — 293,653 — 293,653 Equity securities — 13,571 — 13,571 Loans held for sale — 23,875 — 23,875 Derivative assets — 20,314 — 20,314 Derivative liabilities — 21,501 — 21,501 |
Schedule of assets and liabilities measured at fair value on a non-recurring basis | The following tables summarize assets and liabilities measured at fair value on a non-recurring basis for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) : As of December 31, 2022 Level 1 Level 2 Level 3 Total Loans evaluated individually, net of related allowance $ — $ — $ 5,345 $ 5,345 Bank property held for sale with impairment — — 7,923 7,923 As of December 31, 2021 Level 1 Level 2 Level 3 Total Loans evaluated individually, net of related allowance $ — $ — $ 2,926 $ 2,926 OREO with subsequent impairment — — 51 51 Bank property held for sale with impairment — — 10,103 10,103 |
Schedule of quantitative information about Level 3 fair value measurements | The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) : As of December 31, 2022 Fair Value Valuation Unobservable Range Loans evaluated individually, net of related allowance $ 5,345 Appraisal of collateral Appraisal adjustments -22.7% to -100.0% (-45.7)% Bank property held for sale with impairment 7,923 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7% to -70.1% (-35.1)% As of December 31, 2021 Fair Value Valuation Techniques Unobservable Input Range Loans evaluated individually, net of related allowance $ 2,926 Appraisal of collateral Appraisal adjustments -50.0% to -100.0% (-55.1)% OREO with subsequent impairment 51 Appraisal of collateral Appraisal adjustments -33.0% to -100.0% (-67.9)% Bank property held for sale with impairment 10,103 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7% to -70.1% (-41.3)% |
Schedule of estimated fair values of financial instruments | Financial Assets and Financial Liabilities That Are Not Carried at Fair Value Estimated fair values of financial instruments that are not carried at fair value in the Company’s Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (dollars in thousands) : As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Financial assets Level 1 inputs: Cash and cash equivalents $ 227,164 $ 227,164 $ 836,095 $ 836,095 Level 2 inputs: Debt securities held to maturity 918,312 785,295 — — Loans held for sale 1 1,253 1,276 — — Accrued interest receivable 43,372 43,372 31,064 31,064 Level 3 inputs: Portfolio loans, net 7,634,094 7,320,422 7,101,111 7,161,466 Mortgage servicing rights 5,861 18,284 8,608 12,133 Other servicing rights 1,914 2,331 1,830 2,268 Financial liabilities Level 2 inputs: Time deposits $ 855,375 $ 830,596 $ 935,649 $ 935,778 Securities sold under agreements to repurchase 229,806 229,806 270,139 270,139 Short-term borrowings 351,054 351,085 17,678 17,673 Long-term debt 30,000 30,052 46,056 46,164 Junior subordinated debt owed to unconsolidated trusts 71,810 59,111 71,635 63,586 Accrued interest payable 3,978 3,978 2,728 2,728 Level 3 inputs: Senior notes, net of unamortized issuance costs — — 39,944 40,400 Subordinated notes, net of unamortized issuance costs 222,038 208,562 182,773 195,600 ___________________________________________ 1. Effective January 1, 2022, recorded at LOCOM. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings per common share | Earnings per common share have been computed as follows (dollars in thousands, except per share amounts) : Years Ended December 31, 2022 2021 2020 Net income $ 128,311 $ 123,449 $ 100,344 Weighted average number of common shares outstanding, basic 55,387,073 55,369,476 54,567,429 Dilutive effect of common stock equivalents: Options 1,632 1,639 900 Warrants 1,753 1,753 1,469 RSU awards 665,998 615,759 252,153 PSU awards 58,206 5,429 — DSU awards 15,532 10,641 4,988 ESPP 6,970 4,108 — Weighted average number of common shares outstanding, diluted 56,137,164 56,008,805 54,826,939 Basic earnings per common share $ 2.32 $ 2.23 $ 1.84 Diluted earnings per common share 2.29 2.20 1.83 |
Schedule of shares excluded from computation of diluted earnings per common share | Years Ended December 31, 2022 2021 2020 Anti-dilutive common stock equivalents Options 7,792 — 39,085 RSU awards 38,912 65,058 159,408 PSU awards 189,000 93,026 7,862 DSU awards — 7,742 — Total anti-dilutive common stock equivalents 235,704 165,826 206,355 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Alternative [Abstract] | |
Summary of changes in AOCI by component | The following tables present changes in AOCI by component, net of tax, for the periods below (dollars in thousands) : Year Ended December 31, 2022 Before Tax Tax Effect Net of Tax Unrealized/Unrecognized gains (losses) on debt securities Balance at beginning of period $ (32,272) $ 9,199 $ (23,073) Unrealized holding gains (losses) on debt securities available for sale, net (278,762) 79,460 (199,302) Unrecognized losses on debt securities transferred to held to maturity from available for sale (48,456) 13,812 (34,644) Amounts reclassified from AOCI, net (26) 7 (19) Amortization of unrecognized losses on securities transferred to held to maturity 6,638 (1,893) 4,745 Balance at end of period (352,878) 100,585 (252,293) Unrealized gains (losses) on cash flow hedges Balance at beginning of period (958) 273 (685) Unrealized holding gains (losses) on cash flow hedges, net (28,975) 8,258 (20,717) Amounts reclassified from AOCI, net 583 (166) 417 Balance at end of period (29,350) 8,365 (20,985) Total AOCI $ (382,228) $ 108,950 $ (273,278) Year Ended December 31, 2021 Before Tax Tax Effect Net of Tax Unrealized gains (losses) on debt securities available for sale Balance at beginning of period $ 49,644 $ (14,151) $ 35,493 Unrealized holding gains (losses) on debt securities available for sale, net (81,977) 23,367 (58,610) Amounts reclassified from AOCI, net 61 (17) 44 Balance at end of period (32,272) 9,199 (23,073) Unrealized gains (losses) on cash flow hedges Balance at beginning of period (3,055) 871 (2,184) Unrealized holding gains (losses) on cash flow hedges, net 1,030 (294) 736 Amounts reclassified from AOCI, net 1,067 (304) 763 Balance at end of period (958) 273 (685) Total AOCI $ (33,230) $ 9,472 $ (23,758) Year Ended December 31, 2020 Before Tax Tax Effect Net of Tax Unrealized gains (losses) on debt securities available for sale Balance at beginning of period $ 21,192 $ (6,032) $ 15,160 Unrealized holding gains (losses) on debt securities available for sale, net 30,176 (8,615) 21,561 Amounts reclassified from AOCI, net (1,724) 496 (1,228) Balance at end of period 49,644 (14,151) 35,493 Unrealized gains (losses) on cash flow hedges Balance at beginning of period (280) 80 (200) Unrealized holding gains (losses) on cash flow hedges, net (3,533) 1,007 (2,526) Amounts reclassified from AOCI, net 758 (216) 542 Balance at end of period (3,055) 871 (2,184) Total AOCI $ 46,589 $ (13,280) $ 33,309 |
OPERATING SEGMENTS AND RELATE_2
OPERATING SEGMENTS AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of information relating to operating segments | Following is a summary of selected financial information for the Company’s operating segments. The “other” category included in the tables below consists of the parent company, First Busey Risk Management, and the elimination of intercompany transactions (dollars in thousands) : Goodwill Total Assets As of December 31, As of December 31, 2022 2021 2022 2021 Operating segment Banking $ 294,773 $ 294,773 $ 12,199,960 $ 12,746,833 FirsTech 8,992 8,992 48,715 47,481 Wealth Management 14,108 14,108 84,082 65,587 Other — — 3,920 (212) Consolidated total $ 317,873 $ 317,873 $ 12,336,677 $ 12,859,689 Years Ended December 31, 2022 2021 2020 Net interest income Banking $ 340,083 $ 285,678 $ 294,728 FirsTech 65 79 79 Wealth Management — — — Other (16,710) (15,059) (11,872) Total net interest income $ 323,438 $ 270,698 $ 282,935 Noninterest income Banking $ 54,154 $ 59,393 $ 61,043 FirsTech 21,720 19,629 16,548 Wealth Management 55,394 53,082 43,429 Other (4,465) 700 (2,755) Total noninterest income $ 126,803 $ 132,804 $ 118,265 Noninterest expense Banking $ 221,997 $ 205,905 $ 185,445 FirsTech 20,619 17,574 13,279 Wealth Management 31,545 29,198 26,086 Other 9,720 9,103 9,387 Total noninterest expense $ 283,881 $ 261,780 $ 234,197 Income before income taxes Banking $ 167,617 $ 154,267 $ 131,529 FirsTech 1,166 2,134 3,348 Wealth Management 23,849 23,884 17,343 Other (30,895) (23,462) (24,014) Total income before income taxes $ 161,737 $ 156,823 $ 128,206 Net income Banking $ 131,596 $ 117,844 $ 101,226 FirsTech 847 1,527 2,372 Wealth Management 18,543 18,570 13,181 Other (22,675) (14,492) (16,435) Total net income $ 128,311 $ 123,449 $ 100,344 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of lease-related balances | As of December 31, 2022 2021 Lease balances Right of use assets $ 12,829 $ 10,533 Lease liabilities 12,995 10,591 Supplemental information Year through which lease terms extend 2037 2031 Weighted average remaining lease term (in years) 8.90 6.47 Weighted average discount rate 3.45 % 2.16 % |
Schedule of lease costs and other lease information | The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Lease costs Operating lease costs $ 2,495 $ 2,464 $ 2,524 Variable lease costs 365 540 416 Short-term lease costs 22 49 35 Total lease cost 1 $ 2,882 $ 3,053 $ 2,975 Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash flows – Fixed payments $ 3,080 $ 2,417 $ 2,526 Operating lease cash flows – Liability reduction 2,285 2,217 2,289 Right of use assets obtained during the period in exchange for operating lease liabilities 2 6,206 5,818 743 ___________________________________________ 1. Lease costs are included in net occupancy and equipment expense in the Consolidated Statements of Income. 2. The year ended December 31, 2021, includes $0.4 million related to a lease obtained in the acquisition of CAC. |
Schedule of future undiscounted lease payments | Future undiscounted lease payments with initial terms of one year or more, are as follows (dollars in thousands) : As of Rent commitments 2023 $ 2,254 2024 1,942 2025 1,719 2026 1,442 2027 1,277 Thereafter 6,699 Total undiscounted cash flows 15,333 Less: Amounts representing interest 2,338 Present value of net future minimum lease payments $ 12,995 |
Summary of revenue recorded in connection with leases | Revenues recorded in connection with these leases and reported in other income on our Consolidated Statements of Income are summarized as follows (dollars in thousands) : Years Ended December 31, 2022 2021 2020 Rental income $ 707 $ 566 $ 228 |
PARENT COMPANY ONLY FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Condensed financial data for First Busey Corporation is presented below. CONDENSED BALANCE SHEETS (dollars in thousands) As of December 31, 2022 2021 Assets Cash and cash equivalents $ 91,812 $ 78,217 Equity securities 11,535 13,571 Investments in subsidiaries: Bank 1,369,261 1,565,226 Non-bank 2,181 2,812 Premises and equipment, net 18 30 Other assets 22,316 22,444 Total assets $ 1,497,123 $ 1,682,300 Liabilities and Stockholders' Equity Liabilities: Short-term borrowings $ 12,000 $ 12,000 Long-term debt 30,000 42,000 Senior notes, net of unamortized issuance costs — 39,944 Subordinated notes, net of unamortized issuance costs 222,038 182,773 Junior subordinated debentures owed to unconsolidated trusts 71,810 71,635 Other liabilities 15,298 14,836 Total liabilities 351,146 363,188 Total stockholders' equity 1,145,977 1,319,112 Total liabilities and stockholders' equity $ 1,497,123 $ 1,682,300 |
Statements of Income | Years Ended December 31, 2022 2021 2020 Operating income: Dividends from subsidiaries: Bank $ 95,000 $ 60,000 $ 122,000 Non-bank 1,630 1,745 — Interest income 1,094 79 154 Gains (losses) recognized on equity securities, net (2,159) 3,041 (393) Other income 15,195 12,109 10,083 Total operating income 110,760 76,974 131,844 Expense: Salaries, wages, and employee benefits 20,964 17,914 16,205 Interest expense 17,854 15,163 12,056 Operating expense 7,294 7,429 7,685 Total expense 46,112 40,506 35,946 Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries 64,648 36,468 95,898 Income tax benefit 8,286 8,974 7,727 Income (loss) before equity in undistributed (in excess of) net income of subsidiaries 72,934 45,442 103,625 Equity in undistributed (in excess of) net income of subsidiaries: Bank 55,986 77,941 (5,221) Non-bank (609) 66 1,940 Net income $ 128,311 $ 123,449 $ 100,344 |
Statements of Cash Flows | Years Ended December 31, 2022 2021 2020 Cash Flows Provided by (Used in) Operating Activities Net income $ 128,311 $ 123,449 $ 100,344 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 1,423 882 648 Distributions more (less) than net income of subsidiaries (55,377) (78,007) 3,281 (Gains) losses recognized on equity securities, net 2,159 (3,041) 393 Stock-based compensation 8,968 7,864 7,135 Changes in assets and liabilities: (Increase) decrease in other assets (17,754) (1,186) 405 Increase (decrease) in other liabilities 21,233 (3,302) (5,772) Net cash provided by (used in) operating activities 88,963 46,659 106,434 Cash Flows Provided by (Used in) Investing Activities Sales (purchases) of equity securities, net 598 (5,000) — Net cash paid for acquisitions — (61,656) — Purchases of premises and equipment (9) (15) (19) Net cash provided by (used in) investing activities 589 (66,671) (19) Cash Flows Provided by (Used in) Financing Activities Cash paid for withholding taxes on stock-based payments (1,276) (997) (635) Cash dividends paid (50,863) (50,764) (48,012) Repayments of borrowings (112,000) (18,500) (74,000) Proceeds from issuance of debt 98,094 72,500 142,634 Proceeds from stock options exercised — — 101 Purchase of treasury stock (9,912) (33,043) (12,272) Common stock issuance costs — (150) — Net cash provided (used in) by financing activities (75,957) (30,954) 7,816 Net increase (decrease) in cash and cash equivalents 13,595 (50,966) 114,231 Cash and cash equivalents, beginning of period 78,217 129,183 14,952 Cash and cash equivalents, ending of period $ 91,812 $ 78,217 $ 129,183 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Trust Assets (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Assets under care | $ 11.1 | $ 12.7 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Securities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
Accrued interest receivable for debt securities available for sale debt | $ 14.7 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Loan Servicing (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
Unpaid principal balances of loans serviced | $ 1.7 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Portfolio Loans (Details) - PPP Loans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans | |||
PPP loans outstanding | $ 0.9 | $ 76.9 | |
Amortized cost of the loans outstanding | 0.8 | 75 | |
Loans outstanding, fees received | 2.5 | 20.1 | $ 25.4 |
Incurred incremental direct origination costs | 0.6 | 4.2 | 5.1 |
Net interest income for fees | $ 1.9 | $ 14 | $ 15.2 |
Percentage of remaining loan maintains government guarantee | 100% |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | Buildings and improvements | |
Premises and equipment | |
Estimated Useful Life | 3 years |
Minimum | Furniture and equipment | |
Premises and equipment | |
Estimated Useful Life | 3 years |
Maximum | Buildings and improvements | |
Premises and equipment | |
Estimated Useful Life | 40 years |
Maximum | Furniture and equipment | |
Premises and equipment | |
Estimated Useful Life | 10 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Cash Surrender Value of Bank Owned Life Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Accrued liability | $ 5.6 | $ 5.5 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - FHLB Stock (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Investment in FHLB stock | $ 19 | $ 6.2 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Other Asset Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Other asset investments | $ 126,349 | $ 90,182 |
Funded investments | Other assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Other asset investments | 58,912 | 37,417 |
Unfunded investments | Other assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Other asset investments | 67,437 | 52,765 |
Unfunded investments | Other liabilities | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded investment obligations | $ (67,437) | $ (52,765) |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
DTA, valuation allowance | $ 0 | $ 0 |
Accruals for payments of interest and penalties | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Employee Compensation (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
RSU awards | |
Share-based Compensation | |
Number of shares of common stock per award (in shares) | 1 |
RSU awards | Minimum | |
Share-based Compensation | |
Requisite service periods | 1 year |
RSU awards | Maximum | |
Share-based Compensation | |
Requisite service periods | 5 years |
DSU awards | |
Share-based Compensation | |
Number of shares of common stock per award (in shares) | 1 |
Requisite service periods | 30 days |
Vesting period | 1 year |
PSU awards | |
Share-based Compensation | |
Number of shares of common stock per award (in shares) | 1 |
Employee Stock | |
Share-based Compensation | |
Percentage of fair market value | 85% |
Percentage of discount to market price | 15% |
SIGNIFICANT ACCOUNTING POLIC_15
SIGNIFICANT ACCOUNTING POLICIES - Segment Disclosure (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
SIGNIFICANT ACCOUNTING POLIC_16
SIGNIFICANT ACCOUNTING POLICIES - Off Balance Sheet Arrangements (Details) - Standby letters of credit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Obligation with Joint and Several Liability Arrangement [Line Items] | ||
Term of debt instrument | 2 years | |
Liabilities for potential obligations | $ 6.6 | $ 6.5 |
ACQUISITIONS - Cummins-American
ACQUISITIONS - Cummins-American Corp. (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 31, 2021 USD ($) $ / shares | May 28, 2021 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Goodwill | $ 317,873 | $ 317,873 | ||
CAC | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Share consideration conversion ratio | 444.4783 | |||
Per share cash consideration entitled (in dollars per share) | $ / shares | $ 14,173.96 | |||
Special cash dividend | $ 60,000 | |||
Business acquisition share price (in dollars per share) | $ / shares | $ 12,087.58 | |||
Goodwill | $ 6,337 | |||
Pre-tax acquisition expenses | $ 800 | $ 13,600 | ||
Fair value of PCD financial assets | 60,500 | |||
Gross contractual amounts receivable relating to the PCD financial assets | 65,200 | |||
Contractual cash flows specific to the PCD financial assets will not be collected | $ 4,200 |
Acquisitions - Schedule of fair
Acquisitions - Schedule of fair value estimates of assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Consideration paid: | |||
Goodwill | $ 317,873 | $ 317,873 | |
CAC | |||
Assets acquired | |||
Cash and cash equivalents | $ 298,637 | ||
Securities | 702,367 | ||
Portfolio loans, net of ACL | 430,470 | ||
Premises and equipment | 17,034 | ||
Other intangible assets | 17,340 | ||
Mortgage servicing rights | 629 | ||
Other assets | 8,176 | ||
Total assets acquired | 1,474,653 | ||
Liabilities assumed | |||
Deposits | 1,315,671 | ||
Other borrowings | 16,651 | ||
Other liabilities | 19,205 | ||
Total liabilities assumed | 1,351,527 | ||
Net assets acquired | 123,126 | ||
Consideration paid: | |||
Cash | 70,358 | ||
Common stock | 59,105 | ||
Total consideration paid | 129,463 | ||
Goodwill | $ 6,337 |
DEBT SECURITIES - Schedule of A
DEBT SECURITIES - Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Values of Securities Classified as AFS and HTM (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt securities available for sale | ||
Amortized Cost | $ 2,772,453 | $ 4,013,523 |
Gross unrealized gains | 144 | 22,382 |
Gross unrealized losses | (311,204) | (54,654) |
Fair Value | 2,461,393 | 3,981,251 |
Debt securities held to maturity | ||
Amortized Cost | 918,312 | 0 |
Gross unrealized gains | 0 | |
Gross unrealized losses | (133,017) | |
Fair Value | 785,295 | |
U.S. Treasury securities | ||
Debt securities available for sale | ||
Amortized Cost | 117,805 | 166,768 |
Gross unrealized gains | 0 | 41 |
Gross unrealized losses | (3,744) | (1,047) |
Fair Value | 114,061 | 165,762 |
Obligations of U.S. government corporations and agencies | ||
Debt securities available for sale | ||
Amortized Cost | 20,097 | 37,579 |
Gross unrealized gains | 3 | 891 |
Gross unrealized losses | (321) | 0 |
Fair Value | 19,779 | 38,470 |
Obligations of states and political subdivisions | ||
Debt securities available for sale | ||
Amortized Cost | 283,481 | 300,602 |
Gross unrealized gains | 106 | 7,760 |
Gross unrealized losses | (26,075) | (1,493) |
Fair Value | 257,512 | 306,869 |
Asset-backed securities | ||
Debt securities available for sale | ||
Amortized Cost | 489,558 | 492,055 |
Gross unrealized gains | 0 | 295 |
Gross unrealized losses | (19,683) | (164) |
Fair Value | 469,875 | 492,186 |
Commercial mortgage-backed securities | ||
Debt securities available for sale | ||
Amortized Cost | 124,423 | 625,339 |
Gross unrealized gains | 0 | 3,425 |
Gross unrealized losses | (16,029) | (13,766) |
Fair Value | 108,394 | 614,998 |
Debt securities held to maturity | ||
Amortized Cost | 474,820 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (63,738) | |
Fair Value | 411,082 | |
Residential mortgage-backed securities | ||
Debt securities available for sale | ||
Amortized Cost | 1,463,971 | 2,095,104 |
Gross unrealized gains | 2 | 8,889 |
Gross unrealized losses | (220,717) | (34,680) |
Fair Value | 1,243,256 | 2,069,313 |
Debt securities held to maturity | ||
Amortized Cost | 443,492 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (69,279) | |
Fair Value | 374,213 | |
Corporate debt securities | ||
Debt securities available for sale | ||
Amortized Cost | 273,118 | 296,076 |
Gross unrealized gains | 33 | 1,081 |
Gross unrealized losses | (24,635) | (3,504) |
Fair Value | $ 248,516 | $ 293,653 |
DEBT SECURITIES - Maturity of D
DEBT SECURITIES - Maturity of Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 135,698 | |
Due after one year through five years | 395,914 | |
Due after five years through ten years | 364,065 | |
Due after ten years | 1,876,776 | |
Amortized Cost | 2,772,453 | $ 4,013,523 |
Fair Value | ||
Due in one year or less | 133,967 | |
Due after one year through five years | 368,754 | |
Due after five years through ten years | 330,280 | |
Due after ten years | 1,628,392 | |
Fair Value | 2,461,393 | 3,981,251 |
Amortized Cost | ||
Due after one year through five years | 44,392 | |
Due after five years through ten years | 64,593 | |
Due after ten years | 809,327 | |
Amortized Cost | 918,312 | $ 0 |
Fair Value | ||
Due after one year through five years | 41,483 | |
Due after five years through ten years | 57,955 | |
Due after ten years | 685,857 | |
Fair Value | $ 785,295 |
DEBT SECURITIES - Gains and los
DEBT SECURITIES - Gains and losses on debt securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Realized gains and losses on debt securities | |||
Gross gains on debt securities | $ 115 | $ 543 | $ 1,732 |
Gross (losses) on debt securities | (89) | (514) | (8) |
Realized net gains (losses) on debt securities | $ 26 | $ 29 | $ 1,724 |
DEBT SECURITIES - Narrative (De
DEBT SECURITIES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt securities, carrying amount | $ 746.7 | $ 708.9 |
DEBT SECURITIES - Debt securiti
DEBT SECURITIES - Debt securities in an unrealized loss position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 months | $ 1,070,674 | $ 2,676,734 |
12 months or more | 1,368,859 | 106,443 |
Total | 2,439,533 | 2,783,177 |
Unrealized Losses | ||
Less than 12 months | (81,841) | (49,847) |
12 months or more | (229,363) | (4,807) |
Total | (311,204) | (54,654) |
Fair Value | ||
Less than 12 months | 58,065 | |
12 months or more | 727,230 | |
Total | 785,295 | 0 |
Unrealized Losses | ||
Less than 12 months | (8,009) | |
12 months or more | (125,008) | |
Total | (133,017) | 0 |
U.S. Treasury securities | ||
Fair Value | ||
Less than 12 months | 74 | 163,653 |
12 months or more | 113,987 | 0 |
Total | 114,061 | 163,653 |
Unrealized Losses | ||
Less than 12 months | 0 | (1,047) |
12 months or more | (3,744) | 0 |
Total | (3,744) | (1,047) |
Obligations of U.S. government corporations and agencies | ||
Fair Value | ||
Less than 12 months | 19,603 | |
12 months or more | 0 | |
Total | 19,603 | |
Unrealized Losses | ||
Less than 12 months | (321) | |
12 months or more | 0 | |
Total | (321) | |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 166,147 | 92,680 |
12 months or more | 75,217 | 0 |
Total | 241,364 | 92,680 |
Unrealized Losses | ||
Less than 12 months | (10,059) | (1,493) |
12 months or more | (16,016) | 0 |
Total | (26,075) | (1,493) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 390,164 | 89,983 |
12 months or more | 79,711 | 0 |
Total | 469,875 | 89,983 |
Unrealized Losses | ||
Less than 12 months | (15,648) | (164) |
12 months or more | (4,035) | 0 |
Total | (19,683) | (164) |
Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 89,428 | 389,078 |
12 months or more | 18,966 | 85,905 |
Total | 108,394 | 474,983 |
Unrealized Losses | ||
Less than 12 months | (12,623) | (10,186) |
12 months or more | (3,406) | (3,580) |
Total | (16,029) | (13,766) |
Fair Value | ||
Less than 12 months | 58,065 | |
12 months or more | 353,017 | |
Total | 411,082 | |
Unrealized Losses | ||
Less than 12 months | (8,009) | |
12 months or more | (55,729) | |
Total | (63,738) | |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 366,221 | 1,700,187 |
12 months or more | 876,668 | 20,538 |
Total | 1,242,889 | 1,720,725 |
Unrealized Losses | ||
Less than 12 months | (38,111) | (33,453) |
12 months or more | (182,606) | (1,227) |
Total | (220,717) | (34,680) |
Fair Value | ||
Less than 12 months | 0 | |
12 months or more | 374,213 | |
Total | 374,213 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or more | (69,279) | |
Total | (69,279) | |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 39,037 | 241,153 |
12 months or more | 204,310 | 0 |
Total | 243,347 | 241,153 |
Unrealized Losses | ||
Less than 12 months | (5,079) | (3,504) |
12 months or more | (19,556) | 0 |
Total | $ (24,635) | $ (3,504) |
DEBT SECURITIES - Additional In
DEBT SECURITIES - Additional Information (Details) $ in Thousands | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Available for Sale | ||
Debt securities with gross unrealized or unrecognized losses, fair value | $ | $ 2,439,533 | $ 2,783,177 |
Gross unrealized or unrecognized losses on debt securities | $ | $ 311,204 | $ 54,654 |
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses | 12.80% | 2% |
Count of debt securities | security | 1,091 | 1,252 |
Count of debt securities in an unrealized or unrecognized loss position | security | 1,032 | 373 |
Held to Maturity | ||
Debt securities with gross unrealized or unrecognized losses, fair value | $ | $ 785,295 | $ 0 |
Gross unrealized or unrecognized losses on debt securities | $ | $ 133,017 | $ 0 |
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses | 16.90% | 0% |
Count of debt securities | security | 55 | 0 |
Count of debt securities in an unrealized or unrecognized loss position | security | 55 | 0 |
Total | ||
Debt securities with gross unrealized or unrecognized losses, fair value | $ | $ 3,224,828 | $ 2,783,177 |
Gross unrealized or unrecognized losses on debt securities | $ | $ 444,221 | $ 54,654 |
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses | 13.80% | 2% |
Count of debt securities | security | 1,146 | 1,252 |
Count of debt securities in an unrealized or unrecognized loss position | security | 1,087 | 373 |
PORTFOLIO LOANS - Distribution
PORTFOLIO LOANS - Distribution of portfolio loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Portfolio loans | $ 7,725,702 | $ 7,188,998 | ||
ACL | (91,608) | (87,887) | $ (101,048) | $ (53,748) |
Portfolio loans, net | 7,634,094 | 7,101,111 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Portfolio loans | 1,974,154 | 1,943,886 | ||
ACL | (23,860) | (23,855) | (23,866) | (18,291) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Portfolio loans | 3,261,873 | 3,119,807 | ||
ACL | (38,299) | (38,249) | (46,230) | (21,190) |
Real estate construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Portfolio loans | 530,469 | 385,996 | ||
ACL | (6,457) | (5,102) | (8,193) | (3,204) |
Retail real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Portfolio loans | 1,657,082 | 1,512,976 | ||
ACL | (18,193) | (17,589) | (21,992) | (10,495) |
Retail other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Portfolio loans | 302,124 | 226,333 | ||
ACL | $ (4,799) | $ (3,092) | $ (767) | $ (568) |
PORTFOLIO LOANS - Narrative (De
PORTFOLIO LOANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net deferred loan origination costs | $ 14,000 | $ 9,000 | |
Net accretable purchase accounting adjustments | (5,900) | (8,800) | |
Gross interest income that would have been recorded if impaired loans had been current | 1,200 | 1,600 | $ 1,800 |
Amount of interest collected and recognized on a cash basis | 400 | 400 | |
TDRs, subsequent default | 0 | ||
Collateral dependent loans secured by real estate or business assets | 14,000 | 7,900 | |
Retail real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased | 0 | 32,200 | |
Maximum | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Limit where loans are processed through an expedited underwriting process | 1,000 | ||
Watch | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Limit above which loans are annually reviewed | 1,000 | ||
Special Mention | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Limit above which loans are annually reviewed | 350 | ||
PPP Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost of the loans outstanding | $ 800 | $ 75,000 |
PORTFOLIO LOANS - Schedule of f
PORTFOLIO LOANS - Schedule of financial instruments owned and pledged as collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Portfolio loans, net | $ 7,634,094 | $ 7,101,111 |
Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Portfolio loans, net | 5,900,166 | 5,464,585 |
FHLB | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Portfolio loans, net | 5,095,448 | 4,656,331 |
Federal Reserve Bank | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Portfolio loans, net | $ 804,718 | $ 808,254 |
PORTFOLIO LOANS - Summary of ri
PORTFOLIO LOANS - Summary of risk grades segregated by category of portfolio loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | $ 7,725,702 | $ 7,188,998 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 6,964,678 | 6,518,101 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 563,897 | 463,053 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 91,405 | 121,120 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 90,655 | 70,778 |
Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 15,067 | 15,946 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 1,974,154 | 1,943,886 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 1,668,495 | 1,747,756 |
Commercial | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 201,758 | 93,582 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 46,540 | 69,427 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 51,187 | 26,117 |
Commercial | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 6,174 | 7,004 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 3,261,873 | 3,119,807 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 2,851,709 | 2,682,441 |
Commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 326,455 | 343,304 |
Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 43,526 | 49,695 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 34,539 | 38,394 |
Commercial real estate | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 5,644 | 5,973 |
Real estate construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 530,469 | 385,996 |
Real estate construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 502,904 | 369,797 |
Real estate construction | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 25,164 | 13,793 |
Real estate construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 1 | 6 |
Real estate construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 2,400 | 2,400 |
Real estate construction | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 0 | 0 |
Retail real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 1,657,082 | 1,512,976 |
Retail real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 1,639,599 | 1,491,845 |
Retail real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 10,520 | 12,374 |
Retail real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 1,338 | 1,992 |
Retail real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 2,529 | 3,867 |
Retail real estate | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 3,096 | 2,898 |
Retail other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 302,124 | 226,333 |
Retail other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 301,971 | 226,262 |
Retail other | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 0 | 0 |
Retail other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 0 | 0 |
Retail other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | 0 | 0 |
Retail other | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Portfolio loans | $ 153 | $ 71 |
PORTFOLIO LOANS - Risk grades o
PORTFOLIO LOANS - Risk grades of portfolio loans, further sorted by origination year (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | $ 2,288,440 | $ 2,393,701 |
2021 / 2020 | 1,926,481 | 1,296,955 |
2020 / 2019 | 962,405 | 845,248 |
2019 / 2018 | 558,294 | 503,186 |
2018 / 2017 | 323,245 | 434,084 |
Prior | 644,140 | 671,510 |
Revolving Loans | 1,022,697 | 1,044,314 |
Total | 7,725,702 | 7,188,998 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,964,678 | 6,518,101 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 563,897 | 463,053 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 91,405 | 121,120 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 90,655 | 70,778 |
Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 15,067 | 15,946 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 544,993 | 541,359 |
2021 / 2020 | 320,898 | 239,348 |
2020 / 2019 | 142,171 | 131,390 |
2019 / 2018 | 67,027 | 95,813 |
2018 / 2017 | 55,404 | 83,947 |
Prior | 159,475 | 142,640 |
Revolving Loans | 684,186 | 709,389 |
Total | 1,974,154 | 1,943,886 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 479,893 | 512,729 |
2021 / 2020 | 266,122 | 228,811 |
2020 / 2019 | 136,445 | 107,877 |
2019 / 2018 | 52,046 | 84,873 |
2018 / 2017 | 50,764 | 74,351 |
Prior | 135,000 | 122,418 |
Revolving Loans | 548,225 | 616,697 |
Total | 1,668,495 | 1,747,756 |
Commercial | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 54,195 | 13,847 |
2021 / 2020 | 49,382 | 5,913 |
2020 / 2019 | 3,288 | 14,274 |
2019 / 2018 | 7,201 | 5,060 |
2018 / 2017 | 1,258 | 1,361 |
Prior | 2,160 | 2,866 |
Revolving Loans | 84,274 | 50,261 |
Total | 201,758 | 93,582 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 1,958 | 7,062 |
2021 / 2020 | 937 | 898 |
2020 / 2019 | 1,642 | 5,961 |
2019 / 2018 | 974 | 4,025 |
2018 / 2017 | 1,000 | 6,790 |
Prior | 17,024 | 11,845 |
Revolving Loans | 23,005 | 32,846 |
Total | 46,540 | 69,427 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 8,926 | 3,595 |
2021 / 2020 | 1,165 | 3,362 |
2020 / 2019 | 570 | 3,136 |
2019 / 2018 | 6,671 | 1,855 |
2018 / 2017 | 2,382 | 1,125 |
Prior | 5,191 | 5,459 |
Revolving Loans | 26,282 | 7,585 |
Total | 51,187 | 26,117 |
Commercial | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 21 | 4,126 |
2021 / 2020 | 3,292 | 364 |
2020 / 2019 | 226 | 142 |
2019 / 2018 | 135 | 0 |
2018 / 2017 | 0 | 320 |
Prior | 100 | 52 |
Revolving Loans | 2,400 | 2,000 |
Total | 6,174 | 7,004 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 978,317 | 1,051,764 |
2021 / 2020 | 898,122 | 687,392 |
2020 / 2019 | 558,607 | 557,336 |
2019 / 2018 | 397,516 | 307,458 |
2018 / 2017 | 201,813 | 257,419 |
Prior | 209,715 | 240,922 |
Revolving Loans | 17,783 | 17,516 |
Total | 3,261,873 | 3,119,807 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 883,688 | 969,548 |
2021 / 2020 | 819,133 | 637,550 |
2020 / 2019 | 478,452 | 425,850 |
2019 / 2018 | 297,525 | 235,928 |
2018 / 2017 | 161,409 | 200,373 |
Prior | 198,419 | 198,002 |
Revolving Loans | 13,083 | 15,190 |
Total | 2,851,709 | 2,682,441 |
Commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 77,346 | 51,560 |
2021 / 2020 | 56,113 | 38,820 |
2020 / 2019 | 64,282 | 123,324 |
2019 / 2018 | 96,664 | 48,088 |
2018 / 2017 | 21,592 | 46,761 |
Prior | 5,758 | 32,608 |
Revolving Loans | 4,700 | 2,143 |
Total | 326,455 | 343,304 |
Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 11,943 | 9,542 |
2021 / 2020 | 5,389 | 7,060 |
2020 / 2019 | 12,386 | 6,585 |
2019 / 2018 | 1,420 | 10,098 |
2018 / 2017 | 6,917 | 6,357 |
Prior | 5,471 | 9,870 |
Revolving Loans | 0 | 183 |
Total | 43,526 | 49,695 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 5,340 | 21,002 |
2021 / 2020 | 13,528 | 3,781 |
2020 / 2019 | 3,454 | 1,218 |
2019 / 2018 | 1,907 | 11,451 |
2018 / 2017 | 10,248 | 521 |
Prior | 62 | 421 |
Revolving Loans | 0 | 0 |
Total | 34,539 | 38,394 |
Commercial real estate | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 112 |
2021 / 2020 | 3,959 | 181 |
2020 / 2019 | 33 | 359 |
2019 / 2018 | 0 | 1,893 |
2018 / 2017 | 1,647 | 3,407 |
Prior | 5 | 21 |
Revolving Loans | 0 | 0 |
Total | 5,644 | 5,973 |
Real estate construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 230,042 | 209,968 |
2021 / 2020 | 203,743 | 130,050 |
2020 / 2019 | 71,184 | 31,987 |
2019 / 2018 | 1,539 | 3,155 |
2018 / 2017 | 1,901 | 2,312 |
Prior | 3,149 | 1,343 |
Revolving Loans | 18,911 | 7,181 |
Total | 530,469 | 385,996 |
Real estate construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 219,112 | 202,082 |
2021 / 2020 | 191,724 | 123,491 |
2020 / 2019 | 68,015 | 31,927 |
2019 / 2018 | 1,490 | 3,155 |
2018 / 2017 | 1,901 | 738 |
Prior | 1,751 | 1,223 |
Revolving Loans | 18,911 | 7,181 |
Total | 502,904 | 369,797 |
Real estate construction | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 8,530 | 7,886 |
2021 / 2020 | 12,019 | 4,159 |
2020 / 2019 | 3,169 | 54 |
2019 / 2018 | 48 | 0 |
2018 / 2017 | 0 | 1,574 |
Prior | 1,398 | 120 |
Revolving Loans | 0 | 0 |
Total | 25,164 | 13,793 |
Real estate construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 0 | 0 |
2021 / 2020 | 0 | 0 |
2020 / 2019 | 0 | 6 |
2019 / 2018 | 1 | 0 |
2018 / 2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 1 | 6 |
Real estate construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 2,400 | 0 |
2021 / 2020 | 0 | 2,400 |
2020 / 2019 | 0 | 0 |
2019 / 2018 | 0 | 0 |
2018 / 2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 2,400 | 2,400 |
Real estate construction | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Retail real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 400,507 | 531,210 |
2021 / 2020 | 460,072 | 217,850 |
2020 / 2019 | 177,299 | 98,409 |
2019 / 2018 | 79,126 | 80,557 |
2018 / 2017 | 58,481 | 83,213 |
Prior | 270,808 | 285,279 |
Revolving Loans | 210,789 | 216,458 |
Total | 1,657,082 | 1,512,976 |
Retail real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 396,547 | 523,541 |
2021 / 2020 | 456,158 | 215,068 |
2020 / 2019 | 175,148 | 96,617 |
2019 / 2018 | 77,569 | 79,158 |
2018 / 2017 | 56,887 | 82,478 |
Prior | 267,387 | 281,737 |
Revolving Loans | 209,903 | 213,246 |
Total | 1,639,599 | 1,491,845 |
Retail real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 2,928 | 4,100 |
2021 / 2020 | 2,991 | 2,460 |
2020 / 2019 | 1,846 | 1,780 |
2019 / 2018 | 1,444 | 1,312 |
2018 / 2017 | 1,063 | 343 |
Prior | 27 | 150 |
Revolving Loans | 221 | 2,229 |
Total | 10,520 | 12,374 |
Retail real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 945 | 1,965 |
2021 / 2020 | 0 | 27 |
2020 / 2019 | 0 | 0 |
2019 / 2018 | 0 | 0 |
2018 / 2017 | 0 | 0 |
Prior | 393 | 0 |
Revolving Loans | 0 | 0 |
Total | 1,338 | 1,992 |
Retail real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 77 | 1,369 |
2021 / 2020 | 732 | 232 |
2020 / 2019 | 198 | 12 |
2019 / 2018 | 81 | 71 |
2018 / 2017 | 141 | 165 |
Prior | 1,293 | 1,687 |
Revolving Loans | 7 | 331 |
Total | 2,529 | 3,867 |
Retail real estate | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 10 | 235 |
2021 / 2020 | 191 | 63 |
2020 / 2019 | 107 | 0 |
2019 / 2018 | 32 | 16 |
2018 / 2017 | 390 | 227 |
Prior | 1,708 | 1,705 |
Revolving Loans | 658 | 652 |
Total | 3,096 | 2,898 |
Retail other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 134,581 | 59,400 |
2021 / 2020 | 43,646 | 22,315 |
2020 / 2019 | 13,144 | 26,126 |
2019 / 2018 | 13,086 | 16,203 |
2018 / 2017 | 5,646 | 7,193 |
Prior | 993 | 1,326 |
Revolving Loans | 91,028 | 93,770 |
Total | 302,124 | 226,333 |
Retail other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 134,567 | 59,366 |
2021 / 2020 | 43,512 | 22,305 |
2020 / 2019 | 13,141 | 26,126 |
2019 / 2018 | 13,086 | 16,189 |
2018 / 2017 | 5,646 | 7,180 |
Prior | 991 | 1,326 |
Revolving Loans | 91,028 | 93,770 |
Total | 301,971 | 226,262 |
Retail other | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Retail other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Retail other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 0 |
Retail other | Substandard Non-accrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 14 | 34 |
2021 / 2020 | 134 | 10 |
2020 / 2019 | 3 | 0 |
2019 / 2018 | 0 | 14 |
2018 / 2017 | 0 | 13 |
Prior | 2 | 0 |
Revolving Loans | 0 | 0 |
Total | $ 153 | $ 71 |
PORTFOLIO LOANS -Summary of por
PORTFOLIO LOANS -Summary of portfolio loans that are past due and still accruing or on a non-accrual status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | $ 7,725,702 | $ 7,188,998 |
90 days past due and still accruing | 673 | 906 |
Non-accrual Loans | 15,067 | 15,946 |
30 to 59 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 5,249 | 3,964 |
60 to 89 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 1,299 | 2,297 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 1,974,154 | 1,943,886 |
90 days past due and still accruing | 0 | 213 |
Non-accrual Loans | 6,174 | 7,004 |
Commercial | 30 to 59 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 2 | 363 |
Commercial | 60 to 89 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 0 | 10 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 3,261,873 | 3,119,807 |
90 days past due and still accruing | 0 | 0 |
Non-accrual Loans | 5,644 | 5,973 |
Commercial real estate | 30 to 59 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 124 | 151 |
Commercial real estate | 60 to 89 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 0 | 441 |
Real estate construction | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 530,469 | 385,996 |
90 days past due and still accruing | 0 | |
Non-accrual Loans | 0 | |
Real estate construction | 30 to 59 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 56 | |
Real estate construction | 60 to 89 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 0 | |
Retail real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 1,657,082 | 1,512,976 |
90 days past due and still accruing | 673 | 693 |
Non-accrual Loans | 3,096 | 2,898 |
Retail real estate | 30 to 59 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 4,709 | 3,312 |
Retail real estate | 60 to 89 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 1,239 | 1,830 |
Retail other | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 302,124 | 226,333 |
90 days past due and still accruing | 0 | 0 |
Non-accrual Loans | 153 | 71 |
Retail other | 30 to 59 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | 414 | 82 |
Retail other | 60 to 89 days past due and still accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio loans | $ 60 | $ 16 |
PORTFOLIO LOANS - Summary of TD
PORTFOLIO LOANS - Summary of TDR Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total TDRs | $ 3,569 | $ 2,352 |
In compliance with modified terms | ||
Financing Receivable, Past Due [Line Items] | ||
Total TDRs | 3,032 | 1,801 |
Non-performing TDRs | ||
Financing Receivable, Past Due [Line Items] | ||
Total TDRs | $ 537 | $ 551 |
PORTFOLIO LOANS - Summarize TDR
PORTFOLIO LOANS - Summarize TDRs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 USD ($) contract | |
Financing Receivable, Impaired [Line Items] | |||
Number of Contracts | contract | 4 | 8 | |
Rate Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 136 | $ 781 | |
Payment Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 1,513 | $ 986 | |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Number of Contracts | contract | 3 | 1 | 3 |
Commercial | Rate Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 136 | $ 364 | $ 130 |
Commercial | Payment Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 996 | $ 0 | $ 0 |
Retail real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Number of Contracts | contract | 1 | ||
Retail real estate | Rate Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 0 | ||
Retail real estate | Payment Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 517 | ||
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Number of Contracts | contract | 1 | ||
Commercial real estate | Rate Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 651 | ||
Commercial real estate | Payment Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 0 | ||
Real estate construction | |||
Financing Receivable, Impaired [Line Items] | |||
Number of Contracts | contract | 4 | ||
Real estate construction | Rate Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 0 | ||
Real estate construction | Payment Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment1 | $ 986 |
PORTFOLIO LOANS - Schedule of l
PORTFOLIO LOANS - Schedule of loans modified under the CARES Act or Interagency Statement (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | 4 | 8 | |
Total COVID-19 loans modifications | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | 9 | 34 | |
Recorded Investment1 | $ | $ 20,655 | $ 128,867 | |
Commercial loans: Interest-only deferrals | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | 3 | 1 | 3 |
Commercial loans: Interest-only deferrals | Interest-only deferrals | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | 8 | 32 | |
Recorded Investment1 | $ | $ 20,556 | $ 128,730 | |
Retail loans: Mortgage and personal loan deferrals | Mortgage and personal loan deferrals | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | 1 | 2 | |
Recorded Investment1 | $ | $ 99 | $ 137 |
PORTFOLIO LOANS - Schedule of d
PORTFOLIO LOANS - Schedule of details of impaired loans, segregated by category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Unpaid Principal Balance | $ 20,608 | $ 19,489 |
Recorded investment with no allowance | 5,801 | 8,865 |
Recorded investment with allowance | 9,846 | 6,515 |
Total recorded investment | 15,647 | 15,380 |
Related Allowance | 4,501 | 3,589 |
Average Recorded Investment | 14,551 | 19,556 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Unpaid Principal Balance | 9,589 | 10,247 |
Recorded investment with no allowance | 656 | 498 |
Recorded investment with allowance | 5,918 | 6,490 |
Total recorded investment | 6,574 | 6,988 |
Related Allowance | 2,476 | 3,564 |
Average Recorded Investment | 6,761 | 8,791 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Unpaid Principal Balance | 8,039 | 6,456 |
Recorded investment with no allowance | 2,334 | 5,750 |
Recorded investment with allowance | 3,903 | 0 |
Total recorded investment | 6,237 | 5,750 |
Related Allowance | 2,000 | 0 |
Average Recorded Investment | 5,219 | 6,390 |
Real estate construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Unpaid Principal Balance | 247 | 272 |
Recorded investment with no allowance | 247 | 272 |
Recorded investment with allowance | 0 | 0 |
Total recorded investment | 247 | 272 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 260 | 282 |
Retail real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Unpaid Principal Balance | 2,733 | 2,514 |
Recorded investment with no allowance | 2,564 | 2,345 |
Recorded investment with allowance | 25 | 25 |
Total recorded investment | 2,589 | 2,370 |
Related Allowance | 25 | 25 |
Average Recorded Investment | $ 2,311 | $ 4,093 |
PORTFOLIO LOANS - Schedule of a
PORTFOLIO LOANS - Schedule of activity on the allowance for loan losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Activity in the allowance for loan losses | |||
ACL beginning balance | $ 87,887 | $ 101,048 | $ 53,748 |
Provision for credit losses | 4,623 | (15,101) | 38,797 |
Charged-off | (3,179) | (4,783) | (11,088) |
Recoveries | 2,277 | 2,545 | 2,758 |
ACL ending balance | 91,608 | 87,887 | 101,048 |
Adoption of ASC 326-30 | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 16,833 | ||
ACL ending balance | 16,833 | ||
Financial Asset Acquired with Credit Deterioration | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 4,178 | ||
ACL ending balance | 4,178 | ||
Commercial | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 23,855 | 23,866 | 18,291 |
Provision for credit losses | 497 | (2,160) | 10,832 |
Charged-off | (1,069) | (2,026) | (6,376) |
Recoveries | 577 | 629 | 404 |
ACL ending balance | 23,860 | 23,855 | 23,866 |
Commercial | Adoption of ASC 326-30 | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 715 | ||
ACL ending balance | 715 | ||
Commercial | Financial Asset Acquired with Credit Deterioration | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 3,546 | ||
ACL ending balance | 3,546 | ||
Commercial real estate | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 38,249 | 46,230 | 21,190 |
Provision for credit losses | 892 | (7,651) | 17,511 |
Charged-off | (1,375) | (925) | (1,972) |
Recoveries | 533 | 259 | 195 |
ACL ending balance | 38,299 | 38,249 | 46,230 |
Commercial real estate | Adoption of ASC 326-30 | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 9,306 | ||
ACL ending balance | 9,306 | ||
Commercial real estate | Financial Asset Acquired with Credit Deterioration | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 336 | ||
ACL ending balance | 336 | ||
Real estate construction | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 5,102 | 8,193 | 3,204 |
Provision for credit losses | 1,142 | (3,180) | 1,452 |
Charged-off | (23) | (209) | (18) |
Recoveries | 236 | 298 | 601 |
ACL ending balance | 6,457 | 5,102 | 8,193 |
Real estate construction | Adoption of ASC 326-30 | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 2,954 | ||
ACL ending balance | 2,954 | ||
Real estate construction | Financial Asset Acquired with Credit Deterioration | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 0 | ||
ACL ending balance | 0 | ||
Retail real estate | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 17,589 | 21,992 | 10,495 |
Provision for credit losses | 219 | (4,456) | 9,050 |
Charged-off | (251) | (1,145) | (2,057) |
Recoveries | 636 | 1,069 | 1,212 |
ACL ending balance | 18,193 | 17,589 | 21,992 |
Retail real estate | Adoption of ASC 326-30 | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 3,292 | ||
ACL ending balance | 3,292 | ||
Retail real estate | Financial Asset Acquired with Credit Deterioration | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 129 | ||
ACL ending balance | 129 | ||
Retail other | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 3,092 | 767 | 568 |
Provision for credit losses | 1,873 | 2,346 | (48) |
Charged-off | (461) | (478) | (665) |
Recoveries | 295 | 290 | 346 |
ACL ending balance | 4,799 | 3,092 | 767 |
Retail other | Adoption of ASC 326-30 | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 566 | ||
ACL ending balance | $ 566 | ||
Retail other | Financial Asset Acquired with Credit Deterioration | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | $ 167 | ||
ACL ending balance | $ 167 |
PORTFOLIO LOANS - Schedule of_2
PORTFOLIO LOANS - Schedule of allowance for loan losses and recorded investments in portfolio loans, by category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Portfolio Loans | ||||
Collectively Evaluated for Impairment | $ 7,710,055 | $ 7,173,618 | ||
Individually Evaluated for Impairment | 15,647 | 15,380 | ||
Total | 7,725,702 | 7,188,998 | ||
ACL Attributed to Portfolio Loans | ||||
Collectively Evaluated for Impairment | 87,107 | 84,298 | ||
Individually Evaluated for Impairment | 4,501 | 3,589 | ||
Total | 91,608 | 87,887 | $ 101,048 | $ 53,748 |
Commercial | ||||
Portfolio Loans | ||||
Collectively Evaluated for Impairment | 1,967,580 | 1,936,898 | ||
Individually Evaluated for Impairment | 6,574 | 6,988 | ||
Total | 1,974,154 | 1,943,886 | ||
ACL Attributed to Portfolio Loans | ||||
Collectively Evaluated for Impairment | 21,384 | 20,291 | ||
Individually Evaluated for Impairment | 2,476 | 3,564 | ||
Total | 23,860 | 23,855 | 23,866 | 18,291 |
Commercial real estate | ||||
Portfolio Loans | ||||
Collectively Evaluated for Impairment | 3,255,636 | 3,114,057 | ||
Individually Evaluated for Impairment | 6,237 | 5,750 | ||
Total | 3,261,873 | 3,119,807 | ||
ACL Attributed to Portfolio Loans | ||||
Collectively Evaluated for Impairment | 36,299 | 38,249 | ||
Individually Evaluated for Impairment | 2,000 | 0 | ||
Total | 38,299 | 38,249 | 46,230 | 21,190 |
Real estate construction | ||||
Portfolio Loans | ||||
Collectively Evaluated for Impairment | 530,222 | 385,724 | ||
Individually Evaluated for Impairment | 247 | 272 | ||
Total | 530,469 | 385,996 | ||
ACL Attributed to Portfolio Loans | ||||
Collectively Evaluated for Impairment | 6,457 | 5,102 | ||
Individually Evaluated for Impairment | 0 | 0 | ||
Total | 6,457 | 5,102 | 8,193 | 3,204 |
Retail real estate | ||||
Portfolio Loans | ||||
Collectively Evaluated for Impairment | 1,654,493 | 1,510,606 | ||
Individually Evaluated for Impairment | 2,589 | 2,370 | ||
Total | 1,657,082 | 1,512,976 | ||
ACL Attributed to Portfolio Loans | ||||
Collectively Evaluated for Impairment | 18,168 | 17,564 | ||
Individually Evaluated for Impairment | 25 | 25 | ||
Total | 18,193 | 17,589 | 21,992 | 10,495 |
Retail other | ||||
Portfolio Loans | ||||
Collectively Evaluated for Impairment | 302,124 | 226,333 | ||
Individually Evaluated for Impairment | 0 | 0 | ||
Total | 302,124 | 226,333 | ||
ACL Attributed to Portfolio Loans | ||||
Collectively Evaluated for Impairment | 4,799 | 3,092 | ||
Individually Evaluated for Impairment | 0 | 0 | ||
Total | $ 4,799 | $ 3,092 | $ 767 | $ 568 |
OTHER REAL ESTATE OWNED AND O_3
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS - Summary of OREO and other repossessed assets balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
OREO | ||||
Other real estate owned (OREO) | $ 70 | $ 3,074 | ||
Other repossessed assets | 780 | 1,342 | ||
OREO and other repossessed assets | 850 | 4,416 | $ 4,571 | $ 3,057 |
Commercial real estate | ||||
OREO | ||||
Other real estate owned (OREO) | 0 | 2,839 | ||
Residential | ||||
OREO | ||||
Other real estate owned (OREO) | $ 70 | $ 235 |
OTHER REAL ESTATE OWNED AND O_4
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS - Summary of activity related to OREO and other repossessed assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in OREO and other repossessed assets | |||
OREO and other repossessed assets beginning balance | $ 4,416 | $ 4,571 | $ 3,057 |
Additions, transfers from loans | 175 | 1,610 | 2,867 |
Sales | (2,565) | (1,721) | (1,282) |
Cash payments collected | (565) | (43) | (3) |
Impairment of OREO and other repossessed assets | (611) | (1) | (68) |
OREO and other repossessed assets ending balance | $ 850 | $ 4,416 | $ 4,571 |
OTHER REAL ESTATE OWNED AND O_5
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Residential | ||
Real Estate Properties [Line Items] | ||
Residential real estate in the process of foreclosure | $ 1.1 | $ 0.2 |
OTHER REAL ESTATE OWNED AND O_6
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS - Expenses related to OREO and other repossessed assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |||
Net loss (gain) on sales | $ 665 | $ 173 | $ (90) |
Operating expenses, net of income | 248 | 468 | 538 |
Activity for OREO and other repossessed assets | $ 913 | $ 641 | $ 448 |
PREMISES AND EQUIPMENT - Summar
PREMISES AND EQUIPMENT - Summary of premises and equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and equipment | ||
Premises and equipment, gross | $ 225,853 | $ 232,079 |
Accumulated depreciation | 99,329 | 95,932 |
Premises and equipment, net | 126,524 | 136,147 |
Land and improvements | ||
Premises and equipment | ||
Premises and equipment, gross | 44,193 | 45,595 |
Buildings and improvements | ||
Premises and equipment | ||
Premises and equipment, gross | 128,669 | 132,011 |
Furniture and equipment | ||
Premises and equipment | ||
Premises and equipment, gross | $ 52,991 | $ 54,473 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization of premises and equipment | $ 10,482 | $ 11,610 | $ 12,273 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | May 31, 2021 USD ($) | |
Goodwill and other intangibles assets | |||
Number of operating segments | segment | 3 | ||
Goodwill, change in period | $ 0 | ||
Total goodwill | 317,873,000 | $ 317,873,000 | |
CAC | |||
Goodwill and other intangibles assets | |||
Total goodwill | $ 6,337,000 | ||
Other intangible assets | $ 17,340,000 | ||
Banking | |||
Goodwill and other intangibles assets | |||
Total goodwill | 294,773,000 | 294,773,000 | |
Banking | CAC | |||
Goodwill and other intangibles assets | |||
Total goodwill | 6,300,000 | ||
Other intangible assets | 8,800,000 | ||
Wealth Management | |||
Goodwill and other intangibles assets | |||
Total goodwill | $ 14,108,000 | 14,108,000 | |
Wealth Management | CAC | |||
Goodwill and other intangibles assets | |||
Other intangible assets | $ 8,500,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of carrying amount of goodwill by operating segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and other intangibles assets | ||
Total goodwill | $ 317,873 | $ 317,873 |
Banking | ||
Goodwill and other intangibles assets | ||
Total goodwill | 294,773 | 294,773 |
FirsTech | ||
Goodwill and other intangibles assets | ||
Total goodwill | 8,992 | 8,992 |
Wealth Management | ||
Goodwill and other intangibles assets | ||
Total goodwill | $ 14,108 | $ 14,108 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of other intangible asset disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and other intangibles assets | ||
Intangible assets, gross | $ 132,203 | $ 132,203 |
Accumulated amortization | 85,780 | 74,152 |
Total estimated amortization expense | 46,423 | 58,051 |
Core deposit intangible | ||
Goodwill and other intangibles assets | ||
Intangible assets, gross | 99,065 | 99,065 |
Accumulated amortization | 63,476 | 55,161 |
Total estimated amortization expense | 35,589 | 43,904 |
Customer relationship intangible | ||
Goodwill and other intangibles assets | ||
Intangible assets, gross | 33,138 | 33,138 |
Accumulated amortization | 22,304 | 18,991 |
Total estimated amortization expense | $ 10,834 | $ 14,147 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of amortization expense relating to intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and other intangibles assets | |||
Amortization of intangible assets | $ 11,628 | $ 11,274 | $ 10,008 |
Core deposit intangible | |||
Goodwill and other intangibles assets | |||
Amortization of intangible assets | 8,315 | 8,253 | 7,753 |
Customer relationship intangible | |||
Goodwill and other intangibles assets | |||
Amortization of intangible assets | $ 3,313 | $ 3,021 | $ 2,255 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and other intangibles assets | ||
2023 | $ 10,432 | |
2024 | 9,220 | |
2025 | 7,843 | |
2026 | 6,706 | |
2027 | 5,581 | |
Thereafter | 6,641 | |
Total estimated amortization expense | 46,423 | $ 58,051 |
Core deposit intangible | ||
Goodwill and other intangibles assets | ||
2023 | 7,616 | |
2024 | 6,902 | |
2025 | 5,956 | |
2026 | 5,227 | |
2027 | 4,490 | |
Thereafter | 5,398 | |
Total estimated amortization expense | 35,589 | 43,904 |
Customer relationship intangible | ||
Goodwill and other intangibles assets | ||
2023 | 2,816 | |
2024 | 2,318 | |
2025 | 1,887 | |
2026 | 1,479 | |
2027 | 1,091 | |
Thereafter | 1,243 | |
Total estimated amortization expense | $ 10,834 | $ 14,147 |
DEPOSITS - Schedule of composit
DEPOSITS - Schedule of composition of deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Noninterest-bearing demand deposits | $ 3,393,666 | $ 3,670,267 |
Interest-bearing transaction deposits | 2,857,818 | 2,720,417 |
Saving deposits and money market deposits | 2,964,421 | 3,442,244 |
Time deposits | 855,375 | 935,649 |
Total deposits | 10,071,280 | 10,768,577 |
Brokered savings deposits and money market deposits | 1,303 | 2,248 |
Brokered time deposits | 275 | 266 |
Total time deposits with a minimum denomination of $100,000 | 416,445 | 454,649 |
Total time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 | $ 120,377 | $ 137,449 |
DEPOSITS - Schedule of maturiti
DEPOSITS - Schedule of maturities of time deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
2023 | $ 560,147 | |
2024 | 229,263 | |
2025 | 34,307 | |
2026 | 16,637 | |
2027 | 14,301 | |
Thereafter | 720 | |
Time deposits | $ 855,375 | $ 935,649 |
BORROWINGS - Securities sold un
BORROWINGS - Securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 229,806 | $ 270,139 |
Weighted average rate for securities sold under agreements to repurchase | 1.91% | 0.08% |
BORROWINGS - Term Loan (Details
BORROWINGS - Term Loan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | May 28, 2021 | |
Borrowings | |||
Total long-term debt | $ 30,000,000 | $ 46,056,000 | |
Term Loan | |||
Borrowings | |||
Issuance of debt | $ 60,000,000 | ||
Total long-term debt | 30,000,000 | $ 42,000,000 | |
Quarterly payments on the term loan reduce the outstanding principal balance, amount | 3,000,000 | ||
Revolving Credit Facility | |||
Borrowings | |||
Issuance of debt | $ 40,000,000 | ||
Second Amended and Restated Credit Agreement | Term Loan | |||
Borrowings | |||
Total long-term debt | 42,000,000 | ||
Long-term debt, current | 12,000,000 | ||
Long term debt, noncurrent | 30,000,000 | ||
Second Amended and Restated Credit Agreement | Revolving Credit Facility | |||
Borrowings | |||
Balance outstanding | $ 0 | ||
Second Amended and Restated Credit Agreement | One-month LIBOR rate | |||
Borrowings | |||
Interest rate | 1.75% | ||
Third Amendment To Extend Credit Facility | SOFR-indexed interest rate | Term Loan | |||
Borrowings | |||
Interest rate | 1.80% |
BORROWINGS - Short-term borrowi
BORROWINGS - Short-term borrowings (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) note | Dec. 31, 2021 USD ($) note | |
Short-term borrowings | ||
Total short-term debt | $ 351,054,000 | $ 17,678,000 |
FHLB, weighted average interest rate | 1.91% | 0.08% |
Federal funds purchased | $ 0 | $ 0 |
FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months | ||
Short-term borrowings | ||
Total short-term debt | 339,054,000 | 5,678,000 |
Term Loan, current portion due within 12 months | ||
Short-term borrowings | ||
Total short-term debt | $ 12,000,000 | $ 12,000,000 |
Federal Home Loan Bank Certificates and Obligations (FHLB) | ||
Short-term borrowings | ||
Number of FHLB notes | note | 4 | 2 |
FHLB, weighted average interest rate | 4.28% | 0.36% |
Minimum | ||
Short-term borrowings | ||
Short-term borrowings, mature period | 1 day | |
Maximum | ||
Short-term borrowings | ||
Short-term borrowings, mature period | 90 days |
BORROWINGS - Long-term Debt (De
BORROWINGS - Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term debt | ||
Total long-term debt | $ 30,000 | $ 46,056 |
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock | ||
Long-term debt | ||
Total long-term debt | 0 | 4,056 |
Term Loan | ||
Long-term debt | ||
Total long-term debt | $ 30,000 | $ 42,000 |
FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months | ||
Long-term debt | ||
Interest rate | 3.04% | |
Term of debt instrument | 5 years | 5 years |
BORROWINGS - Senior Notes and S
BORROWINGS - Senior Notes and Subordinate Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 02, 2022 | Jun. 01, 2020 | Sep. 30, 2022 | May 25, 2017 | |
3.75% notes maturing May 25, 2022 | Senior Notes | ||||
Long-term debt | ||||
Issuance of debt | $ 40 | |||
Interest rate | 3.75% | |||
3.75% notes maturing May 25, 2022 | Subordinated Debt | ||||
Long-term debt | ||||
Debt Instrument, Redemption Amount | $ 60 | |||
3.75% notes maturing May 25, 2022 | London Interbank Offered Rate (LIBOR) | Subordinated Debt | ||||
Long-term debt | ||||
Floating interest rate margin | 2.919% | |||
4.75% notes maturing May 25, 2027 | Subordinated Debt | ||||
Long-term debt | ||||
Issuance of debt | $ 60 | |||
5.25% notes maturing June 1, 2030 | Subordinated Debt | ||||
Long-term debt | ||||
Issuance of debt | $ 125 | |||
Floating interest rate margin | 5.11% | |||
Duration of fixed interest rate | 5 years | |||
5.25% notes maturing June 1, 2030 | Base Rate | Subordinated Debt | ||||
Long-term debt | ||||
Interest rate | 5.25% | |||
5.000% notes maturing June 15, 2032 | Subordinated Debt | ||||
Long-term debt | ||||
Issuance of debt | $ 100 | |||
Fixed to floating interest rate | 5% | |||
Percentage of principal amount of notes | 100% | |||
5.000% notes maturing June 15, 2032 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subordinated Debt | ||||
Long-term debt | ||||
Floating interest rate margin | 2.52% |
BORROWINGS - Schedule of unamor
BORROWINGS - Schedule of unamortized debt issuance cost (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Junior subordinated debt owed to unconsolidated trusts | ||
Total unamortized debt issuance costs | $ 2,962 | $ 2,283 |
Senior notes issued in 2017 | Senior Notes | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Total unamortized debt issuance costs | 0 | 56 |
Subordinated notes issued in 2017 | Subordinated Debt | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Total unamortized debt issuance costs | 0 | 549 |
Subordinated notes issued in 2020 | Subordinated Debt | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Total unamortized debt issuance costs | 1,220 | 1,678 |
Subordinated notes issued in 2022 | Subordinated Debt | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Total unamortized debt issuance costs | $ 1,742 | $ 0 |
JUNIOR SUBORDINATED DEBT OWED_2
JUNIOR SUBORDINATED DEBT OWED TO UNCOLSOLIDATED TRUSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Junior subordinated debt owed to unconsolidated trusts | ||
Fair value adjustment, remaining balance to be accreted | $ 2,800 | |
Junior subordinated debt owed to unconsolidated trusts | 71,810 | $ 71,635 |
Trust Preferred Securities Subject to Mandatory Redemption | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Maximum of holding companies assets retained | $ 15,000,000 | |
Trust preferred securities qualified as Tier I capital (as a percent) | 100% | |
Junior Subordinated Debt | Trust Preferred Securities Subject to Mandatory Redemption | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Maximum period to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities | 5 years | |
Parent Company | ||
Junior subordinated debt owed to unconsolidated trusts | ||
Junior subordinated debt owed to unconsolidated trusts | $ 71,810 | $ 71,635 |
REGULATORY CAPITAL - Narrative
REGULATORY CAPITAL - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 02, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 25, 2017 | |
Regulatory Capital | |||||
Busey Bank paid dividends to the Company, amount received | $ 95 | $ 60 | $ 122 | ||
Subordinated Debt | 4.75% notes maturing May 25, 2027 | |||||
Regulatory Capital | |||||
Principal balance | $ 60 | ||||
Subordinated Debt | 5.000% notes maturing June 15, 2032 | |||||
Regulatory Capital | |||||
Principal balance | $ 100 | ||||
Fixed to floating interest rate | 5% |
REGULATORY CAPITAL - Capital Am
REGULATORY CAPITAL - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount | ||
Actual | $ 1,081,686 | $ 995,874 |
Minimum Capital Requirement | 406,980 | 378,334 |
Minimum To Be Well Capitalized | $ 587,861 | $ 546,482 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual | 11.96% | 11.85% |
Minimum Capital Requirement | 4.50% | 4.50% |
Minimum To Be Well Capitalized | 6.50% | 6.50% |
Tier 1 Capital to Risk Weighted Assets, Amount | ||
Actual | $ 1,155,686 | $ 1,069,874 |
Minimum Capital Requirement | 542,640 | 504,445 |
Minimum To Be Well Capitalized | $ 723,521 | $ 672,594 |
Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual | 12.78% | 12.73% |
Minimum Capital Requirement | 6% | 6% |
Minimum To Be Well Capitalized | 8% | 8% |
Total Capital to Risk Weighted Assets, Amount | ||
Actual | $ 1,457,994 | $ 1,320,187 |
Minimum Capital Requirement | 723,521 | 672,594 |
Minimum To Be Well Capitalized | $ 904,401 | $ 840,742 |
Total Capital to Risk Weighted Assets, Ratio | ||
Actual | 16.12% | 15.70% |
Minimum Capital Requirement | 8% | 8% |
Minimum To Be Well Capitalized | 10% | 10% |
Leverage Ratio of Tier 1 Capital to Average Assets, Amount | ||
Actual | $ 1,155,686 | $ 1,069,874 |
Minimum Capital Requirement | $ 489,124 | $ 502,336 |
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio | ||
Actual | 9.45% | 8.52% |
Minimum Capital Requirement | 4% | 4% |
Busey Bank | ||
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount | ||
Actual | $ 1,306,716 | $ 1,241,303 |
Minimum Capital Requirement | 405,736 | 377,096 |
Minimum To Be Well Capitalized | $ 586,063 | $ 544,695 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual | 14.49% | 14.81% |
Minimum Capital Requirement | 4.50% | 4.50% |
Minimum To Be Well Capitalized | 6.50% | 6.50% |
Tier 1 Capital to Risk Weighted Assets, Amount | ||
Actual | $ 1,306,716 | $ 1,241,303 |
Minimum Capital Requirement | 540,981 | 502,795 |
Minimum To Be Well Capitalized | $ 721,308 | $ 670,394 |
Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual | 14.49% | 14.81% |
Minimum Capital Requirement | 6% | 6% |
Minimum To Be Well Capitalized | 8% | 8% |
Total Capital to Risk Weighted Assets, Amount | ||
Actual | $ 1,384,024 | $ 1,306,616 |
Minimum Capital Requirement | 721,308 | 670,394 |
Minimum To Be Well Capitalized | $ 901,635 | $ 837,992 |
Total Capital to Risk Weighted Assets, Ratio | ||
Actual | 15.35% | 15.59% |
Minimum Capital Requirement | 8% | 8% |
Minimum To Be Well Capitalized | 10% | 10% |
Leverage Ratio of Tier 1 Capital to Average Assets, Amount | ||
Actual | $ 1,306,716 | $ 1,241,303 |
Minimum Capital Requirement | 487,541 | 501,104 |
Minimum To Be Well Capitalized | $ 609,426 | $ 626,379 |
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio | ||
Actual | 10.72% | 9.91% |
Minimum Capital Requirement | 4% | 4% |
Minimum To Be Well Capitalized | 5% | 5% |
INCOME TAXES - Schedule of the
INCOME TAXES - Schedule of the components of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current expense: | |||
Federal | $ 20,815 | $ 20,261 | $ 21,027 |
State | 13,883 | 8,448 | 12,144 |
Deferred expense: | |||
Federal | (700) | 3,644 | (3,657) |
State | (572) | 1,021 | (1,652) |
Income taxes | $ 33,426 | $ 33,374 | $ 27,862 |
INCOME TAXES - Schedule of th_2
INCOME TAXES - Schedule of the reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of income (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax at federal statutory rate | 21% | 21% | 21% |
Tax-exempt interest, net | (1.10%) | (1.10%) | (1.60%) |
Stock incentive | 0.10% | 0% | 0.20% |
State income taxes, net | 6.50% | 4.50% | 6.50% |
Income on bank owned life insurance | (0.50%) | (0.70%) | (0.90%) |
Tax credit investments | (5.60%) | (3.60%) | (3.20%) |
Other, net | 0.30% | 1.20% | (0.30%) |
Effective income tax rate | 20.70% | 21.30% | 21.70% |
INCOME TAXES - Schedule of th_3
INCOME TAXES - Schedule of the deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
ACL | $ 26,979 | $ 25,884 |
Unrealized loss on cash flow hedge | 8,365 | 273 |
Unrealized losses on securities available for sale | 88,666 | 9,199 |
Unrealized losses on securities held to maturity | 11,919 | 0 |
Stock-based compensation | 5,504 | 4,204 |
Deferred compensation | 53 | 55 |
Purchase accounting adjustments | 656 | 1,213 |
Accrued vacation | 411 | 398 |
Lease liabilities | 3,564 | 2,893 |
Employee costs | 3,298 | 2,847 |
Other | 376 | 390 |
Total deferred tax assets | 149,791 | 47,356 |
Deferred tax liabilities: | ||
Basis in premises and equipment | (1,541) | (1,347) |
Affordable housing partnerships and other investments | (6,669) | (3,696) |
Purchase accounting adjustments | (1,207) | (1,362) |
Mortgage servicing assets | (2,132) | (2,853) |
Basis in core deposit, customer intangible assets, and asset purchase goodwill | (6,956) | (9,485) |
Deferred loan origination costs | (3,845) | (2,454) |
Right of use assets | (3,518) | (2,877) |
Unrealized gain on equity securities | (512) | (1,099) |
Other | (586) | (560) |
Total deferred tax liabilities | (26,966) | (25,733) |
Net deferred tax asset | $ 122,825 | $ 21,623 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance, deferred tax assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
Employer matching contribution, percent of match | 100% |
Employer matching contribution, percent of employees' gross pay | 3% |
Employer matching contribution, percent of next match | 50% |
Employer next matching contribution, percent of employees' gross pay | 2% |
Vesting period | 5 years |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of expenses related to the employee benefit plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
401(k) Plan expenses | |||
Total 401(k) Plan expenses | $ 7,054 | $ 6,531 | $ 5,982 |
Profit-sharing expenses | |||
401(k) Plan expenses | |||
Total 401(k) Plan expenses | 2,960 | 2,823 | 2,551 |
Safe Harbor match expenses | |||
401(k) Plan expenses | |||
Total 401(k) Plan expenses | $ 4,094 | $ 3,708 | $ 3,431 |
STOCK-BASED COMPENSATION - Awar
STOCK-BASED COMPENSATION - Award Status (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Outstanding at beginning of year (in shares) | 31,386 | |
Exercised (in shares) | (4,840) | |
Expired (in shares) | (440) | |
Outstanding at end of year (in shares) | 26,106 | 31,386 |
Exercisable at end of year (in shares) | 26,106 | |
Weighted- Average Exercise Price | ||
Outstanding at beginning of year (in dollars per share) | $ 23.53 | |
Exercised (in dollars per share) | 23.53 | |
Expired (in dollars per share) | 23.53 | |
Outstanding at end of year (in dollars per share) | 23.53 | $ 23.53 |
Exercisable at end of year (in dollars per share) | $ 23.53 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-average remaining contractual life, options outstanding | 3 years 10 months 17 days | 4 years 10 months 17 days |
Weighted-average remaining contractual life, exercisable at end of year | 3 years 10 months 17 days | |
Intrinsic value, options outstanding | $ 31 | $ 113 |
Intrinsic value, exercisable at end of year | $ 31 |
STOCK-BASED COMPENSATION - 2020
STOCK-BASED COMPENSATION - 2020 Equity Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 23, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation | ||||
Period over which cost will be recognized | 2 years 6 months | 2 years 10 months 24 days | ||
2020 Equity Incentive Plan | ||||
Share-based Compensation | ||||
Remaining shares available for issuance (in shares) | 657,570 | |||
Common Stock | ||||
Share-based Compensation | ||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares) | 175,225 | 116,904 | 106,589 | |
RSU awards | ||||
Share-based Compensation | ||||
Number of shares of common stock per award (in shares) | 1 | |||
Granted (in shares) | 156,483 | |||
RSU awards | 2020 Equity Incentive Plan | Members of management, including the Vice-Chairman of the Board | ||||
Share-based Compensation | ||||
Granted (in shares) | 156,483 | |||
Grant date fair value of the award | $ 4 | |||
PSU awards | ||||
Share-based Compensation | ||||
Number of shares of common stock per award (in shares) | 1 | |||
Granted (in shares) | 38,774 | 195,240 | ||
Grant date fair value of the award | $ 1 | |||
DSU awards | ||||
Share-based Compensation | ||||
Number of shares of common stock per award (in shares) | 1 | |||
Requisite service periods | 30 days | |||
Granted (in shares) | 32,658 | |||
Vesting period | 1 year | |||
Settlement period | 30 days | |||
DSU awards | 2020 Equity Incentive Plan | Directors and Advisory Directors | ||||
Share-based Compensation | ||||
Granted (in shares) | 32,658 | |||
Grant date fair value of the award | $ 0.8 | |||
Period over which cost will be recognized | 1 year | |||
Vesting percentage (as a percent) | 100% | |||
Market Based Performance Stock Units | ||||
Share-based Compensation | ||||
Granted (in shares) | 78,233 | |||
Grant date fair value of the award | $ 2.1 | |||
Performance Based Performance Stock Units | ||||
Share-based Compensation | ||||
Granted (in shares) | 78,233 | |||
Grant date fair value of the award | $ 2 | |||
Minimum | RSU awards | ||||
Share-based Compensation | ||||
Requisite service periods | 1 year | |||
Minimum | RSU awards | 2020 Equity Incentive Plan | Members of management, including the Vice-Chairman of the Board | ||||
Share-based Compensation | ||||
Period over which cost will be recognized | 1 year | |||
Minimum | PSU awards | ||||
Share-based Compensation | ||||
Vesting percentage (as a percent) | 0% | |||
Minimum | Market Based Performance Stock Units | ||||
Share-based Compensation | ||||
Vesting percentage (as a percent) | 0% | |||
Minimum | Performance Based Performance Stock Units | ||||
Share-based Compensation | ||||
Vesting percentage (as a percent) | 0% | |||
Maximum | RSU awards | ||||
Share-based Compensation | ||||
Requisite service periods | 5 years | |||
Maximum | RSU awards | 2020 Equity Incentive Plan | Members of management, including the Vice-Chairman of the Board | ||||
Share-based Compensation | ||||
Period over which cost will be recognized | 5 years | |||
Maximum | PSU awards | ||||
Share-based Compensation | ||||
Granted (in shares) | 77,548 | |||
Vesting percentage (as a percent) | 200% | |||
Maximum | Market Based Performance Stock Units | ||||
Share-based Compensation | ||||
Granted (in shares) | 125,173 | |||
Vesting percentage (as a percent) | 160% | |||
Maximum | Performance Based Performance Stock Units | ||||
Share-based Compensation | ||||
Granted (in shares) | 125,173 | |||
Vesting percentage (as a percent) | 160% |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of changes in the Company's RSU, PSU, and DSU awards (Details) - $ / shares | 12 Months Ended | |
Mar. 23, 2022 | Dec. 31, 2022 | |
RSU awards | ||
Shares | ||
Non-vested at beginning of period (in shares) | 1,147,927 | |
Granted (in shares) | 156,483 | |
Dividend equivalents earned (in shares) | 43,916 | |
Vested (in shares) | (203,230) | |
Forfeited (in shares) | (48,165) | |
Non-vested at end of period (in shares) | 1,096,931 | |
Weighted-Average Grant Date Fair Value | ||
Non-vested at beginning of period (in dollars per share) | $ 23.97 | |
Granted (in dollars per share) | 25.79 | |
Dividend equivalents earned (in dollars per share) | 24.83 | |
Vested (in dollars per share) | 27.66 | |
Forfeited (in dollars per share) | 23.46 | |
Non-vested at end of period (in dollars per share) | $ 23.61 | |
PSU awards | ||
Shares | ||
Non-vested at beginning of period (in shares) | 113,915 | |
Granted (in shares) | 38,774 | 195,240 |
Dividend equivalents earned (in shares) | 832 | |
Vested (in shares) | (8,694) | |
Forfeited (in shares) | (8,080) | |
Adjustment for performance conditions (in shares) | (7,862) | |
Non-vested at end of period (in shares) | 285,351 | |
Vested and Outstanding at end of period (in shares) | 8,694 | |
Weighted-Average Grant Date Fair Value | ||
Non-vested at beginning of period (in dollars per share) | $ 22.86 | |
Granted (in dollars per share) | 26.14 | |
Dividend equivalents earned (in dollars per share) | 22.63 | |
Vested (in dollars per share) | 16.86 | |
Forfeited (in dollars per share) | 25.21 | |
Adjustment for performance conditions (in dollars per share) | 16.25 | |
Non-vested at end of period (in dollars per share) | 25.40 | |
Vested and Outstanding at end of period (in dollars per share) | $ 16.86 | |
DSU awards | ||
Shares | ||
Non-vested at beginning of period (in shares) | 34,135 | |
Granted (in shares) | 32,658 | |
Dividend equivalents earned (in shares) | 5,473 | |
Vested (in shares) | (41,181) | |
Non-vested at end of period (in shares) | 31,085 | |
Vested and Outstanding at end of period (in shares) | 112,434 | |
Weighted-Average Grant Date Fair Value | ||
Non-vested at beginning of period (in dollars per share) | $ 24.59 | |
Granted (in dollars per share) | 25.79 | |
Dividend equivalents earned (in dollars per share) | 24.47 | |
Vested (in dollars per share) | 24.67 | |
Non-vested at end of period (in dollars per share) | 25.75 | |
Vested and Outstanding at end of period (in dollars per share) | $ 23.10 |
STOCK-BASED COMPENSATION - 2021
STOCK-BASED COMPENSATION - 2021 Employee Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 01, 2021 | |
Share-based Compensation | ||||
Compensation expense recognized | $ 8,968,000 | $ 7,864,000 | $ 7,135,000 | |
Stock options | ||||
Share-based Compensation | ||||
Compensation expense recognized | 0 | $ 0 | $ 0 | |
Unrecognized stock-based compensation expense | $ 0 | |||
2021 ESPP | ||||
Share-based Compensation | ||||
Discount through voluntary payroll deductions (as percentage) | 15% | |||
Remaining shares available for issuance (in shares) | 512,225 | 600,000 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation | |||
Total stock-based compensation expense | $ 8,968 | $ 7,864 | $ 7,135 |
RSU awards | |||
Share-based Compensation | |||
Total stock-based compensation expense | 4,648 | 5,809 | 6,493 |
PSU awards | |||
Share-based Compensation | |||
Total stock-based compensation expense | 3,240 | 979 | 77 |
DSU awards | |||
Share-based Compensation | |||
Total stock-based compensation expense | 876 | 962 | 565 |
2021 ESPP | |||
Share-based Compensation | |||
Total stock-based compensation expense | $ 204 | $ 114 | $ 0 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Unamortized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation | ||
Total unamortized stock-based compensation | $ 13,024 | $ 11,960 |
Weighted average period over which expense is to be recognized | 2 years 6 months | 2 years 10 months 24 days |
RSU awards | ||
Share-based Compensation | ||
Total unamortized stock-based compensation | $ 8,570 | $ 10,204 |
PSU awards | ||
Share-based Compensation | ||
Total unamortized stock-based compensation | 4,279 | 1,547 |
DSU awards | ||
Share-based Compensation | ||
Total unamortized stock-based compensation | $ 175 | $ 209 |
TRANSACTIONS WITH RELATED PAR_3
TRANSACTIONS WITH RELATED PARTIES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Analysis of the changes in loans to related parties | |
Balance at beginning of year | $ 42,557 |
Change in relationship | (11,254) |
New loans/advances | 39,545 |
Repayments | (15,507) |
Balance at end of year | 55,341 |
Directors and executive officers | |
Analysis of the changes in loans to related parties | |
Total unused commitments | $ 12,722 |
OUTSTANDING COMMITMENTS AND C_3
OUTSTANDING COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Commitments and Contingencies | ||
Total commitments | $ 2,024,777 | $ 2,016,207 |
Commitments to extend credit | ||
Credit Commitments and Contingencies | ||
Total commitments | 1,991,769 | 1,983,655 |
Standby letters of credit | ||
Credit Commitments and Contingencies | ||
Total commitments | $ 33,008 | $ 32,552 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of financial instruments owned and pledged as collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Interest Rate Swap | ||
Derivative Financial Instruments | ||
Cash pledged to secure obligations | $ 38,609 | $ 27,300 |
Interest Rate Contract | ||
Derivative Financial Instruments | ||
Cash pledged to secure obligations | $ 29,830 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands | Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) |
Derivative Financial Instruments | ||
Number of risk participant agreement | agreement | 2 | |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivative Financial Instruments | ||
Notional amount | $ 300,000 | |
Interest Rate Swap | Not Designated as Hedging Instrument | ||
Derivative Financial Instruments | ||
Variable rate, commercial loans that are supported by the interest rate swap contracts | 576,900 | $ 491,400 |
Interest Rate Swap | Cash Flow Hedging | ||
Derivative Financial Instruments | ||
Notional amount | 350,000 | 50,000 |
Debt Swap | Cash Flow Hedging | ||
Derivative Financial Instruments | ||
Notional amount | 50,000 | $ 50,000 |
Debt Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative Financial Instruments | ||
Notional amount | $ 50,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of the interest-rate swaps designated as cash flow hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Rate Swap | |||
Balances carried in AOCI | |||
Unrealized gains (losses) on cash flow hedges, net of tax | $ 0 | $ 0 | $ 0 |
Cash Flow Hedging | Interest Rate Swap | |||
Derivative Financial Instruments | |||
Notional amount | 350,000 | 50,000 | |
Balances carried in AOCI | |||
Unrealized gains (losses) on cash flow hedges, net of tax | (20,985) | (685) | |
Cash Flow Hedging | Interest Rate Swap | Other assets | |||
Gross aggregate fair value of the swaps | |||
Gross aggregate fair value of swap assets | 2,535 | 0 | |
Cash Flow Hedging | Interest Rate Swap | Other liabilities | |||
Gross aggregate fair value of the swaps | |||
Gross aggregate fair value of swap liabilities | 32,367 | 958 | |
Cash Flow Hedging | Debt Swap | |||
Derivative Financial Instruments | |||
Notional amount | $ 50,000 | $ 50,000 | |
Weighted average fixed pay/receive rates | 1.79% | 1.79% | |
Weighted average variable interest rates | 4.77% | 0.20% | |
Weighted average maturity, in years | 1 year 8 months 15 days | 2 years 8 months 15 days | |
Cash Flow Hedging | Loan Swap | |||
Derivative Financial Instruments | |||
Notional amount | $ 300,000 | ||
Weighted average fixed pay/receive rates | 4.81% | ||
Weighted average variable interest rates | 7.32% | ||
Weighted average maturity, in years | 6 years 1 month 6 days |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Reclassification of unrealized gains and losses from OCI (Details) - Interest Rate Swap - Cash Flow Hedging $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Derivative Financial Instruments | |
Net unrealized gains (losses) in OCI expected to be recognized in net interest income | $ (276) |
Interest Income | |
Derivative Financial Instruments | |
Net unrealized gains (losses) in OCI expected to be recognized in net interest income | 372 |
Interest Expense | |
Derivative Financial Instruments | |
Net unrealized gains (losses) in OCI expected to be recognized in net interest income | $ (648) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of interest income (expense) recorded on swap transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Rate Swap | Cash Flow Hedging | |||
Derivative Financial Instruments | |||
Interest income (expense) on swap transactions | $ (583) | $ (1,067) | $ (758) |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS - Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Financial Instruments | |||
(Gain) loss reclassified from OCI to interest expense | $ 417 | $ 763 | $ 542 |
Cash Flow Hedging | Interest Rate Contract | |||
Derivative Financial Instruments | |||
Net gain (loss) recognized in OCI, net of tax | (20,717) | 736 | (2,526) |
(Gain) loss reclassified from OCI to interest income | 395 | 0 | 0 |
(Gain) loss reclassified from OCI to interest expense | 22 | 763 | 542 |
Net change in unrealized gains (losses) on cash flow hedges, net of tax | $ (20,300) | $ 1,499 | $ (1,984) |
DERIVATIVE FINANCIAL INSTRUME_9
DERIVATIVE FINANCIAL INSTRUMENTS - Interest Rate Swaps Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Interest Rate Swap | ||
Derivative Asset | ||
Notional Amount | $ 576,911 | $ 491,356 |
Fair Value | 40,055 | 20,098 |
Derivative Liability | ||
Notional Amount | 576,911 | 491,356 |
Fair Value | 40,055 | 20,098 |
Interest rate swaps - pay floating, receive fixed | ||
Derivative Asset | ||
Notional Amount | 48,728 | 404,572 |
Fair Value | 370 | 17,839 |
Derivative Liability | ||
Notional Amount | 528,183 | 86,784 |
Fair Value | 39,685 | 2,259 |
Interest rate swaps - pay fixed, receive floating | ||
Derivative Asset | ||
Notional Amount | 528,183 | 86,784 |
Fair Value | 39,685 | 2,259 |
Derivative Liability | ||
Notional Amount | 48,728 | 404,572 |
Fair Value | $ 370 | $ 17,839 |
DERIVATIVE FINANCIAL INSTRUM_10
DERIVATIVE FINANCIAL INSTRUMENTS - Interest Rate Swaps Recorded in Noninterest Expense (Details) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Financial Instruments | |||
Net change in fair value of interest rate swaps | $ 0 | $ 0 | $ 0 |
Non-interest expense | |||
Derivative Financial Instruments | |||
Gain (loss) pay, floating receive fixed | 19,308 | (12,587) | 20,331 |
Gain (loss) pay fixed receive floating | $ (19,308) | $ 12,587 | $ (20,331) |
DERIVATIVE FINANCIAL INSTRUM_11
DERIVATIVE FINANCIAL INSTRUMENTS - Risk Participation Agreement (Details) - Risk participation agreements - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Financial Instruments | ||
Notional amount | $ 18,899 | $ 3,990 |
Fair value | $ 5 | $ 0 |
DERIVATIVE FINANCIAL INSTRUM_12
DERIVATIVE FINANCIAL INSTRUMENTS - Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives with positive fair value | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Derivatives with negative fair value | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Interest rate lock commitments | ||
Derivatives with positive fair value | ||
Notional Amount | $ 1,517 | $ 19,384 |
Fair value recorded in other assets | 16 | 206 |
Derivatives with negative fair value | ||
Notional Amount | 83 | 499 |
Fair value recorded in other liabilities | 1 | 6 |
Forward sales commitments | ||
Derivatives with positive fair value | ||
Notional Amount | 83 | 1,884 |
Fair value recorded in other assets | 1 | 10 |
Derivatives with negative fair value | ||
Notional Amount | 2,757 | 41,002 |
Fair value recorded in other liabilities | 39 | 439 |
Mortgage banking derivatives recorded in other assets | Designated as Hedging Instrument | ||
Derivatives with positive fair value | ||
Notional Amount | 1,600 | 21,268 |
Fair value recorded in other assets | 17 | 216 |
Derivatives with negative fair value | ||
Notional Amount | 2,840 | 41,501 |
Fair value recorded in other liabilities | $ 40 | $ 445 |
DERIVATIVE FINANCIAL INSTRUM_13
DERIVATIVE FINANCIAL INSTRUMENTS - Net Gains (Losses) Relating to Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Financial Instruments | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage revenue | Mortgage revenue | Mortgage revenue |
Interest rate lock commitments | Designated as Hedging Instrument | |||
Derivative Financial Instruments | |||
Net change in fair value of interest rate swaps | $ 15 | $ 1,702 | $ 9,667 |
Forward sales commitments | Designated as Hedging Instrument | |||
Derivative Financial Instruments | |||
Net change in fair value of interest rate swaps | (38) | (4,045) | (18,329) |
Net gains (losses) | Designated as Hedging Instrument | |||
Derivative Financial Instruments | |||
Net change in fair value of interest rate swaps | $ (23) | $ (2,343) | $ (8,662) |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets and financial liabilities measured at fair value | ||
Fair Value | $ 2,461,393 | $ 3,981,251 |
Equity securities | 11,535 | 13,571 |
Loans held for sale | 1,253 | 23,875 |
U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 114,061 | 165,762 |
Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 19,779 | 38,470 |
Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 257,512 | 306,869 |
Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 469,875 | 492,186 |
Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 108,394 | 614,998 |
Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 1,243,256 | 2,069,313 |
Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 248,516 | 293,653 |
Fair Value, Recurring | ||
Financial assets and financial liabilities measured at fair value | ||
Loans held for sale | 23,875 | |
Fair Value, Recurring | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative assets | 42,612 | 20,314 |
Fair Value, Recurring | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liabilities | 72,462 | 21,501 |
Fair Value, Recurring | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 114,061 | 165,762 |
Fair Value, Recurring | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 19,779 | 38,470 |
Fair Value, Recurring | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 257,512 | 306,869 |
Fair Value, Recurring | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 469,875 | 492,186 |
Fair Value, Recurring | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 108,394 | 614,998 |
Fair Value, Recurring | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 1,243,256 | 2,069,313 |
Fair Value, Recurring | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 248,516 | 293,653 |
Fair Value, Recurring | Equity securities | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 11,535 | 13,571 |
Fair Value, Recurring | Level 1 Inputs | ||
Financial assets and financial liabilities measured at fair value | ||
Loans held for sale | 0 | |
Fair Value, Recurring | Level 1 Inputs | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 Inputs | Equity securities | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 0 | 0 |
Fair Value, Recurring | Level 2 Inputs | ||
Financial assets and financial liabilities measured at fair value | ||
Loans held for sale | 23,875 | |
Fair Value, Recurring | Level 2 Inputs | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative assets | 42,607 | 20,314 |
Fair Value, Recurring | Level 2 Inputs | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liabilities | 72,462 | 21,501 |
Fair Value, Recurring | Level 2 Inputs | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 114,061 | 165,762 |
Fair Value, Recurring | Level 2 Inputs | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 19,779 | 38,470 |
Fair Value, Recurring | Level 2 Inputs | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 257,512 | 306,869 |
Fair Value, Recurring | Level 2 Inputs | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 469,875 | 492,186 |
Fair Value, Recurring | Level 2 Inputs | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 108,394 | 614,998 |
Fair Value, Recurring | Level 2 Inputs | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 1,243,256 | 2,069,313 |
Fair Value, Recurring | Level 2 Inputs | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 248,516 | 293,653 |
Fair Value, Recurring | Level 2 Inputs | Equity securities | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 11,535 | 13,571 |
Fair Value, Recurring | Level 3 Inputs | ||
Financial assets and financial liabilities measured at fair value | ||
Loans held for sale | 0 | |
Fair Value, Recurring | Level 3 Inputs | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative assets | 5 | 0 |
Fair Value, Recurring | Level 3 Inputs | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 Inputs | Equity securities | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of assets and liabilities measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually, net of related allowance | $ 15,647 | $ 15,380 |
OREO with subsequent impairment | 70 | 3,074 |
Fair Value, Nonrecurring | Loans evaluated individually, net of related allowance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually, net of related allowance | 5,345 | 2,926 |
Fair Value, Nonrecurring | OREO with subsequent impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO with subsequent impairment | 51 | |
Fair Value, Nonrecurring | Bank property held for sale with impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale with impairment | 7,923 | 10,103 |
Fair Value, Nonrecurring | Level 1 Inputs | Loans evaluated individually, net of related allowance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually, net of related allowance | 0 | 0 |
Fair Value, Nonrecurring | Level 1 Inputs | OREO with subsequent impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO with subsequent impairment | 0 | |
Fair Value, Nonrecurring | Level 1 Inputs | Bank property held for sale with impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale with impairment | 0 | 0 |
Fair Value, Nonrecurring | Level 2 Inputs | Loans evaluated individually, net of related allowance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually, net of related allowance | 0 | 0 |
Fair Value, Nonrecurring | Level 2 Inputs | OREO with subsequent impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO with subsequent impairment | 0 | |
Fair Value, Nonrecurring | Level 2 Inputs | Bank property held for sale with impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale with impairment | 0 | 0 |
Fair Value, Nonrecurring | Level 3 Inputs | Loans evaluated individually, net of related allowance | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually, net of related allowance | 5,345 | 2,926 |
Fair Value, Nonrecurring | Level 3 Inputs | OREO with subsequent impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO with subsequent impairment | 51 | |
Fair Value, Nonrecurring | Level 3 Inputs | Bank property held for sale with impairment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale with impairment | $ 7,923 | $ 10,103 |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of quantitative information about Level 3 fair value measurements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value | ||
Loans evaluated individually, net of related allowance | $ 15,647 | $ 15,380 |
OREO with subsequent impairment | 70 | 3,074 |
Fair Value, Nonrecurring | Loans evaluated individually, net of related allowance | ||
Fair Value | ||
Loans evaluated individually, net of related allowance | 5,345 | 2,926 |
Fair Value, Nonrecurring | OREO with subsequent impairment | ||
Fair Value | ||
OREO with subsequent impairment | 51 | |
Fair Value, Nonrecurring | Bank property held for sale with impairment | ||
Fair Value | ||
Bank property held for sale with impairment | 7,923 | 10,103 |
Fair Value, Nonrecurring | Level 3 Inputs | Loans evaluated individually, net of related allowance | ||
Fair Value | ||
Loans evaluated individually, net of related allowance | 5,345 | 2,926 |
Fair Value, Nonrecurring | Level 3 Inputs | OREO with subsequent impairment | ||
Fair Value | ||
OREO with subsequent impairment | 51 | |
Fair Value, Nonrecurring | Level 3 Inputs | Bank property held for sale with impairment | ||
Fair Value | ||
Bank property held for sale with impairment | 7,923 | 10,103 |
Fair Value, Nonrecurring | Level 3 Inputs | Appraisal of collateral | Loans evaluated individually, net of related allowance | ||
Fair Value | ||
Loans evaluated individually, net of related allowance | 5,345 | 2,926 |
Fair Value, Nonrecurring | Level 3 Inputs | Appraisal of collateral | OREO with subsequent impairment | ||
Fair Value | ||
OREO with subsequent impairment | 51 | |
Fair Value, Nonrecurring | Level 3 Inputs | Appraisal of collateral or real estate listing price | Bank property held for sale with impairment | ||
Fair Value | ||
Bank property held for sale with impairment | $ 7,923 | $ 10,103 |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral | Loans evaluated individually, net of related allowance | Minimum | ||
Range (Weighted Average) | ||
Loans evaluated individually, net of related allowance | (0.227) | (0.500) |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral | Loans evaluated individually, net of related allowance | Maximum | ||
Range (Weighted Average) | ||
Loans evaluated individually, net of related allowance | (1) | (1) |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral | Loans evaluated individually, net of related allowance | Weighted Average | ||
Range (Weighted Average) | ||
Loans evaluated individually, net of related allowance | (0.457) | (0.551) |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral | OREO with subsequent impairment | Minimum | ||
Range (Weighted Average) | ||
OREO with subsequent impairment | (0.330) | |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral | OREO with subsequent impairment | Maximum | ||
Range (Weighted Average) | ||
OREO with subsequent impairment | (1) | |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral | OREO with subsequent impairment | Weighted Average | ||
Range (Weighted Average) | ||
OREO with subsequent impairment | (0.679) | |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral or real estate listing price | Bank property held for sale with impairment | Minimum | ||
Range (Weighted Average) | ||
Bank property held for sale with impairment | (0.007) | (0.007) |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral or real estate listing price | Bank property held for sale with impairment | Maximum | ||
Range (Weighted Average) | ||
Bank property held for sale with impairment | (0.701) | (0.701) |
Fair Value, Nonrecurring | Level 3 Inputs | Measurement Input, Comparability Adjustment | Appraisal of collateral or real estate listing price | Bank property held for sale with impairment | Weighted Average | ||
Range (Weighted Average) | ||
Bank property held for sale with impairment | (0.351) | (0.413) |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of estimated fair values of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets | ||
Debt securities held to maturity | $ 785,295 | |
Portfolio loans, net | 7,634,094 | $ 7,101,111 |
Mortgage servicing rights | 1,700,000 | |
Financial liabilities | ||
Short-term borrowings | 351,054 | 17,678 |
Junior subordinated debt owed to unconsolidated trusts | 71,810 | 71,635 |
Level 1 Inputs | Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 227,164 | 836,095 |
Level 1 Inputs | Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 227,164 | 836,095 |
Level 2 Inputs | Carrying Amount | ||
Financial assets | ||
Debt securities held to maturity | 918,312 | 0 |
Loans held for sale | 1,253 | 0 |
Accrued interest receivable | 43,372 | 31,064 |
Financial liabilities | ||
Time deposits | 855,375 | 935,649 |
Securities sold under agreements to repurchase | 229,806 | 270,139 |
Short-term borrowings | 351,054 | 17,678 |
Long-term debt | 30,000 | 46,056 |
Junior subordinated debt owed to unconsolidated trusts | 71,810 | 71,635 |
Accrued interest payable | 3,978 | 2,728 |
Level 2 Inputs | Fair Value | ||
Financial assets | ||
Debt securities held to maturity | 785,295 | 0 |
Loans held for sale | 1,276 | 0 |
Accrued interest receivable | 43,372 | 31,064 |
Financial liabilities | ||
Time deposits | 830,596 | 935,778 |
Securities sold under agreements to repurchase | 229,806 | 270,139 |
Short-term borrowings | 351,085 | 17,673 |
Long-term debt | 30,052 | 46,164 |
Junior subordinated debt owed to unconsolidated trusts | 59,111 | 63,586 |
Accrued interest payable | 3,978 | 2,728 |
Level 3 Inputs | Carrying Amount | ||
Financial assets | ||
Portfolio loans, net | 7,634,094 | 7,101,111 |
Mortgage servicing rights | 5,861 | 8,608 |
Other servicing rights | 1,914 | 1,830 |
Level 3 Inputs | Fair Value | ||
Financial assets | ||
Portfolio loans, net | 7,320,422 | 7,161,466 |
Mortgage servicing rights | 18,284 | 12,133 |
Other servicing rights | 2,331 | 2,268 |
Level 3 Inputs | Senior Notes | Carrying Amount | ||
Financial liabilities | ||
Long-term debt | 0 | 39,944 |
Level 3 Inputs | Senior Notes | Fair Value | ||
Financial liabilities | ||
Long-term debt | 0 | 40,400 |
Level 3 Inputs | Subordinated Debt | Carrying Amount | ||
Financial liabilities | ||
Long-term debt | 222,038 | 182,773 |
Level 3 Inputs | Subordinated Debt | Fair Value | ||
Financial liabilities | ||
Long-term debt | $ 208,562 | $ 195,600 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of computation of earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income per share calculations for basic and diluted methods | |||
Net income | $ 128,311 | $ 123,449 | $ 100,344 |
Shares: | |||
Weighted average number of common shares outstanding, basic (in shares) | 55,387,073 | 55,369,476 | 54,567,429 |
Weighted average number of common shares outstanding, diluted (in shares) | 56,137,164 | 56,008,805 | 54,826,939 |
Basic earnings per common share (in dollars per share) | $ 2.32 | $ 2.23 | $ 1.84 |
Diluted earnings per common share (in dollars per share) | $ 2.29 | $ 2.20 | $ 1.83 |
Options | |||
Shares: | |||
Dilutive effect of common stock equivalents (in shares) | 1,632 | 1,639 | 900 |
Warrants | |||
Shares: | |||
Dilutive effect of common stock equivalents (in shares) | 1,753 | 1,753 | 1,469 |
RSU awards | |||
Shares: | |||
Dilutive effect of common stock equivalents (in shares) | 665,998 | 615,759 | 252,153 |
PSU awards | |||
Shares: | |||
Dilutive effect of common stock equivalents (in shares) | 58,206 | 5,429 | 0 |
DSU awards | |||
Shares: | |||
Dilutive effect of common stock equivalents (in shares) | 15,532 | 10,641 | 4,988 |
ESPP | |||
Shares: | |||
Dilutive effect of common stock equivalents (in shares) | 6,970 | 4,108 | 0 |
EARNINGS PER SHARE - Schedule_2
EARNINGS PER SHARE - Schedule of average shares excluded from computation of diluted earnings per common share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Anti-dilutive securities excluded from the calculation of common stock equivalents | |||
Total anti-dilutive common stock equivalents (in shares) | 235,704 | 165,826 | 206,355 |
Options | |||
Anti-dilutive securities excluded from the calculation of common stock equivalents | |||
Total anti-dilutive common stock equivalents (in shares) | 7,792 | 0 | 39,085 |
RSU awards | |||
Anti-dilutive securities excluded from the calculation of common stock equivalents | |||
Total anti-dilutive common stock equivalents (in shares) | 38,912 | 65,058 | 159,408 |
PSU awards | |||
Anti-dilutive securities excluded from the calculation of common stock equivalents | |||
Total anti-dilutive common stock equivalents (in shares) | 189,000 | 93,026 | 7,862 |
DSU awards | |||
Anti-dilutive securities excluded from the calculation of common stock equivalents | |||
Total anti-dilutive common stock equivalents (in shares) | 0 | 7,742 | 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of changes in AOCI by component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,319,112 | $ 1,270,069 | $ 1,220,434 |
Unrealized/Unrecognized gains (losses) on debt securities | |||
Unrealized holding gains (losses) on debt securities available for sale, net of tax | (199,302) | (58,610) | 21,561 |
Unrealized losses on debt securities transferred to held to maturity from available for sale, net of tax | (34,644) | 0 | 0 |
Amounts reclassified from AOCI, net of tax | 19 | (44) | 1,228 |
Amortization of unrealized losses on securities transferred to held to maturity, net of tax | (4,745) | 0 | 0 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized holding gains (losses) on cash flow hedges, net of tax | (20,717) | 736 | (2,526) |
Amounts reclassified from AOCI, net of tax | (417) | (763) | (542) |
Ending balance | 1,145,977 | 1,319,112 | 1,270,069 |
AOCI | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) beginning balance period, before tax | (33,230) | 46,589 | |
Accumulated other comprehensive income (loss) beginning balance period, tax effect | 9,472 | (13,280) | |
Beginning balance | (23,758) | 33,309 | 14,960 |
Unrealized gains (losses) on cash flow hedges: | |||
Accumulated other comprehensive income (loss) ending balance period, before tax | (382,228) | (33,230) | 46,589 |
Accumulated other comprehensive income (loss) ending balance period, tax effect | 108,950 | 9,472 | (13,280) |
Ending balance | (273,278) | (23,758) | 33,309 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) beginning balance period, before tax | (32,272) | 49,644 | 21,192 |
Accumulated other comprehensive income (loss) beginning balance period, tax effect | 9,199 | (14,151) | (6,032) |
Beginning balance | (23,073) | 35,493 | 15,160 |
Unrealized/Unrecognized gains (losses) on debt securities | |||
Unrealized holding gains (losses) on debt securities available for sale, before tax | (278,762) | (81,977) | 30,176 |
Unrealized holding gains (losses) on debt securities available for sale, tax effect | 79,460 | 23,367 | (8,615) |
Unrealized holding gains (losses) on debt securities available for sale, net of tax | (199,302) | (58,610) | 21,561 |
Unrealized gains on debt securities transferred from held to maturity to available for sale, before tax | (48,456) | ||
Unrealized losses on debt securities transferred to held to maturity from available for sale, tax effect | 13,812 | 0 | 0 |
Unrealized losses on debt securities transferred to held to maturity from available for sale, net of tax | (34,644) | ||
Amounts reclassified from AOCI, before tax | (26) | 61 | (1,724) |
Amounts reclassified from AOCI, tax effect | 7 | (17) | 496 |
Amounts reclassified from AOCI, net of tax | (19) | 44 | (1,228) |
Amortization of unrealized losses on securities transferred to held to maturity, before tax | 6,638 | ||
Amortization of unrealized losses on securities transferred to held to maturity, tax effect | (1,893) | 0 | 0 |
Amortization of unrealized losses on securities transferred to held to maturity, net of tax | 4,745 | ||
Unrealized gains (losses) on cash flow hedges: | |||
Accumulated other comprehensive income (loss) ending balance period, before tax | (352,878) | (32,272) | 49,644 |
Accumulated other comprehensive income (loss) ending balance period, tax effect | 100,585 | 9,199 | (14,151) |
Ending balance | (252,293) | (23,073) | 35,493 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) beginning balance period, before tax | (958) | (3,055) | (280) |
Accumulated other comprehensive income (loss) beginning balance period, tax effect | 273 | 871 | 80 |
Beginning balance | (685) | (2,184) | (200) |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized holding gains (losses) on cash flow hedges, before tax | (28,975) | 1,030 | (3,533) |
Unrealized holding gains (losses) on cash flow hedges, tax effect | 8,258 | (294) | 1,007 |
Unrealized holding gains (losses) on cash flow hedges, net of tax | (20,717) | 736 | (2,526) |
Amounts reclassified from AOCI, before tax | 583 | 1,067 | 758 |
Amounts reclassified from AOCI, tax effect | (166) | (304) | (216) |
Amounts reclassified from AOCI, net of tax | 417 | 763 | 542 |
Accumulated other comprehensive income (loss) ending balance period, before tax | (29,350) | (958) | (3,055) |
Accumulated other comprehensive income (loss) ending balance period, tax effect | 8,365 | 273 | 871 |
Ending balance | $ (20,985) | $ (685) | $ (2,184) |
OPERATING SEGMENTS AND RELATE_3
OPERATING SEGMENTS AND RELATED INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Operating Segments and Related Information | |||
Number of reportable segments | segment | 3 | ||
Number of operating segments | segment | 3 | ||
Goodwill | $ 317,873 | $ 317,873 | |
Total Assets | 12,336,677 | 12,859,689 | |
Net interest income | 323,438 | 270,698 | $ 282,935 |
Noninterest income | 126,803 | 132,804 | 118,265 |
Noninterest expense | 283,881 | 261,780 | 234,197 |
Income before income taxes | 161,737 | 156,823 | 128,206 |
Net income | 128,311 | 123,449 | 100,344 |
Banking | |||
Operating Segments and Related Information | |||
Goodwill | 294,773 | 294,773 | |
FirsTech | |||
Operating Segments and Related Information | |||
Goodwill | 8,992 | 8,992 | |
Wealth Management | |||
Operating Segments and Related Information | |||
Goodwill | 14,108 | 14,108 | |
Operating segment | Banking | |||
Operating Segments and Related Information | |||
Goodwill | 294,773 | 294,773 | |
Total Assets | 12,199,960 | 12,746,833 | |
Net interest income | 340,083 | 285,678 | 294,728 |
Noninterest income | 54,154 | 59,393 | 61,043 |
Noninterest expense | 221,997 | 205,905 | 185,445 |
Income before income taxes | 167,617 | 154,267 | 131,529 |
Net income | 131,596 | 117,844 | 101,226 |
Operating segment | FirsTech | |||
Operating Segments and Related Information | |||
Goodwill | 8,992 | 8,992 | |
Total Assets | 48,715 | 47,481 | |
Net interest income | 65 | 79 | 79 |
Noninterest income | 21,720 | 19,629 | 16,548 |
Noninterest expense | 20,619 | 17,574 | 13,279 |
Income before income taxes | 1,166 | 2,134 | 3,348 |
Net income | 847 | 1,527 | 2,372 |
Operating segment | Wealth Management | |||
Operating Segments and Related Information | |||
Goodwill | 14,108 | 14,108 | |
Total Assets | 84,082 | 65,587 | |
Net interest income | 0 | 0 | 0 |
Noninterest income | 55,394 | 53,082 | 43,429 |
Noninterest expense | 31,545 | 29,198 | 26,086 |
Income before income taxes | 23,849 | 23,884 | 17,343 |
Net income | 18,543 | 18,570 | 13,181 |
Intersegment Eliminations | |||
Operating Segments and Related Information | |||
Goodwill | 0 | 0 | |
Total Assets | 3,920 | (212) | |
Net interest income | (16,710) | (15,059) | (11,872) |
Noninterest income | (4,465) | 700 | (2,755) |
Noninterest expense | 9,720 | 9,103 | 9,387 |
Income before income taxes | (30,895) | (23,462) | (24,014) |
Net income | $ (22,675) | $ (14,492) | $ (16,435) |
LEASES - Lease-related balances
LEASES - Lease-related balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right of use assets | $ 12,829 | $ 10,533 |
Lease liabilities | $ 12,995 | $ 10,591 |
Weighted average remaining lease term (in years) | 8 years 10 months 24 days | 6 years 5 months 19 days |
Weighted average discount rate | 3.45% | 2.16% |
LEASES - Lease Cost and Other L
LEASES - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease costs | |||
Operating lease costs | $ 2,495 | $ 2,464 | $ 2,524 |
Variable lease costs | 365 | 540 | 416 |
Short-term lease costs | 22 | 49 | 35 |
Total lease cost | 2,882 | 3,053 | 2,975 |
Cash flows related to leases | |||
Operating lease cash flows – Fixed payments | 3,080 | 2,417 | 2,526 |
Operating lease cash flows – Liability reduction | 2,285 | 2,217 | 2,289 |
Right of use assets obtained during the period in exchange for operating lease liabilities | $ 6,206 | 5,818 | $ 743 |
CAC | |||
Cash flows related to leases | |||
Right of use assets obtained during the period in exchange for operating lease liabilities | $ 400 |
LEASES - Undiscounted Lease Pay
LEASES - Undiscounted Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Rent commitments | ||
2023 | $ 2,254 | |
2024 | 1,942 | |
2025 | 1,719 | |
2026 | 1,442 | |
2027 | 1,277 | |
Thereafter | 6,699 | |
Total undiscounted cash flows | 15,333 | |
Less: Amounts representing interest | 2,338 | |
Present value of net future minimum lease payments | $ 12,995 | $ 10,591 |
LEASES - Busey as the Lessor (D
LEASES - Busey as the Lessor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Rental income | $ 707 | $ 566 | $ 228 |
PARENT COMPANY ONLY FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Equity securities | $ 11,535 | $ 13,571 | ||
Investments in subsidiaries: | ||||
Premises and equipment, net | 126,524 | 136,147 | ||
Other assets | 398,792 | 204,242 | ||
Total assets | 12,336,677 | 12,859,689 | ||
Liabilities: | ||||
Short-term borrowings | 351,054 | 17,678 | ||
Long-term debt | 30,000 | 46,056 | ||
Senior notes, net of unamortized issuance costs | 0 | 39,944 | ||
Subordinated notes, net of unamortized issuance costs | 222,038 | 182,773 | ||
Junior subordinated debentures owed to unconsolidated trusts | 71,810 | 71,635 | ||
Other liabilities | 201,717 | 133,184 | ||
Total liabilities | 11,190,700 | 11,540,577 | ||
Total stockholders’ equity | 1,145,977 | 1,319,112 | $ 1,270,069 | $ 1,220,434 |
Total liabilities and stockholders’ equity | 12,336,677 | 12,859,689 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 91,812 | 78,217 | ||
Equity securities | 11,535 | 13,571 | ||
Investments in subsidiaries: | ||||
Bank | 1,369,261 | 1,565,226 | ||
Non-bank | 2,181 | 2,812 | ||
Premises and equipment, net | 18 | 30 | ||
Other assets | 22,316 | 22,444 | ||
Total assets | 1,497,123 | 1,682,300 | ||
Liabilities: | ||||
Short-term borrowings | 12,000 | 12,000 | ||
Long-term debt | 30,000 | 42,000 | ||
Senior notes, net of unamortized issuance costs | 0 | 39,944 | ||
Subordinated notes, net of unamortized issuance costs | 222,038 | 182,773 | ||
Junior subordinated debentures owed to unconsolidated trusts | 71,810 | 71,635 | ||
Other liabilities | 15,298 | 14,836 | ||
Total liabilities | 351,146 | 363,188 | ||
Total stockholders’ equity | 1,145,977 | 1,319,112 | ||
Total liabilities and stockholders’ equity | $ 1,497,123 | $ 1,682,300 |
PARENT COMPANY ONLY FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends from subsidiaries: | |||
Other income | $ 14,822 | $ 10,292 | $ 8,356 |
Expense: | |||
Salaries, wages, and employee benefits | 159,016 | 145,312 | 126,719 |
Interest expense | 36,548 | 28,102 | 43,663 |
Income tax benefit | (33,426) | (33,374) | (27,862) |
Equity in undistributed (in excess of) net income of subsidiaries: | |||
Net income | 128,311 | 123,449 | 100,344 |
Parent Company | |||
Dividends from subsidiaries: | |||
Bank | 95,000 | 60,000 | 122,000 |
Non-bank | 1,630 | 1,745 | 0 |
Interest income | 1,094 | 79 | 154 |
Gains (losses) recognized on equity securities, net | (2,159) | 3,041 | (393) |
Other income | 15,195 | 12,109 | 10,083 |
Total operating income | 110,760 | 76,974 | 131,844 |
Expense: | |||
Salaries, wages, and employee benefits | 20,964 | 17,914 | 16,205 |
Interest expense | 17,854 | 15,163 | 12,056 |
Operating expense | 7,294 | 7,429 | 7,685 |
Total expense | 46,112 | 40,506 | 35,946 |
Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries | 64,648 | 36,468 | 95,898 |
Income tax benefit | 8,286 | 8,974 | 7,727 |
Income (loss) before equity in undistributed (in excess of) net income of subsidiaries | 72,934 | 45,442 | 103,625 |
Equity in undistributed (in excess of) net income of subsidiaries: | |||
Bank | 55,986 | 77,941 | (5,221) |
Non-bank | (609) | 66 | 1,940 |
Net income | $ 128,311 | $ 123,449 | $ 100,344 |
PARENT COMPANY ONLY FINANCIAL_5
PARENT COMPANY ONLY FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows Provided by (Used in) Operating Activities | |||
Net income | $ 128,311 | $ 123,449 | $ 100,344 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 10,482 | 11,610 | 12,273 |
Unrealized (gains) losses recognized on equity securities, net | 2,183 | (3,041) | 393 |
Stock-based compensation | 8,968 | 7,864 | 7,135 |
Changes in assets and liabilities: | |||
(Increase) decrease in other assets | (56,284) | 7,203 | (8,210) |
Increase (decrease) in other liabilities | 2,633 | (28,096) | (6,551) |
Net cash provided by (used in) operating activities | 165,787 | 162,012 | 163,174 |
Cash Flows Provided by (Used in) Investing Activities | |||
Purchases of premises and equipment | (4,989) | (5,042) | (4,198) |
Net cash provided by (used in) investing activities | (290,856) | (829,190) | (729,539) |
Cash Flows Provided by (Used in) Financing Activities | |||
Cash paid for withholding taxes on stock-based payments | (1,276) | (997) | (635) |
Cash dividends paid | (50,863) | (50,764) | (48,012) |
Proceeds from stock options exercised | 0 | 0 | 101 |
Purchase of treasury stock | (9,912) | (33,043) | (12,272) |
Common stock issuance costs | 0 | (150) | 0 |
Net cash provided by (used in) financing activities | (483,862) | 814,736 | 725,614 |
Net increase (decrease) in cash and cash equivalents | (608,931) | 147,558 | 159,249 |
Cash and cash equivalents, beginning of period | 836,095 | 688,537 | 529,288 |
Cash and cash equivalents, ending of period | 227,164 | 836,095 | 688,537 |
Parent Company | |||
Cash Flows Provided by (Used in) Operating Activities | |||
Net income | 128,311 | 123,449 | 100,344 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,423 | 882 | 648 |
Distributions more (less) than net income of subsidiaries | (55,377) | (78,007) | 3,281 |
Unrealized (gains) losses recognized on equity securities, net | 2,159 | (3,041) | 393 |
Stock-based compensation | 8,968 | 7,864 | 7,135 |
Changes in assets and liabilities: | |||
(Increase) decrease in other assets | (17,754) | (1,186) | 405 |
Increase (decrease) in other liabilities | 21,233 | (3,302) | (5,772) |
Net cash provided by (used in) operating activities | 88,963 | 46,659 | 106,434 |
Cash Flows Provided by (Used in) Investing Activities | |||
Sales (purchases) of equity securities, net | 598 | (5,000) | 0 |
Net cash paid for acquisitions | 0 | (61,656) | 0 |
Purchases of premises and equipment | (9) | (15) | (19) |
Net cash provided by (used in) investing activities | 589 | (66,671) | (19) |
Cash Flows Provided by (Used in) Financing Activities | |||
Cash paid for withholding taxes on stock-based payments | (1,276) | (997) | (635) |
Cash dividends paid | (50,863) | (50,764) | (48,012) |
Repayments of borrowings | (112,000) | (18,500) | (74,000) |
Proceeds from issuance of debt | 98,094 | 72,500 | 142,634 |
Proceeds from stock options exercised | 0 | 0 | 101 |
Purchase of treasury stock | (9,912) | (33,043) | (12,272) |
Common stock issuance costs | 0 | (150) | 0 |
Net cash provided by (used in) financing activities | (75,957) | (30,954) | 7,816 |
Net increase (decrease) in cash and cash equivalents | 13,595 | (50,966) | 114,231 |
Cash and cash equivalents, beginning of period | 78,217 | 129,183 | 14,952 |
Cash and cash equivalents, ending of period | $ 91,812 | $ 78,217 | $ 129,183 |
Uncategorized Items - buse-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |