Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 05, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
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, $.001 par value | |
Trading Symbol | BUSE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,267,775 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000314489 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 300,884 | $ 118,824 |
Interest-bearing deposits | 619,926 | 569,713 |
Total cash and cash equivalents | 920,810 | 688,537 |
Debt securities available for sale | 3,464,517 | 2,261,187 |
Equity securities | 13,950 | 5,530 |
Loans held for sale, at fair value | 17,834 | 42,813 |
Portfolio loans (net of ACL 2021 $95,410; 2020 $101,048) | 7,090,240 | 6,713,129 |
Premises and equipment, net | 145,437 | 135,191 |
Right of use assets | 8,228 | 7,714 |
Goodwill | 317,521 | 311,536 |
Other intangible assets, net | 64,274 | 51,985 |
Cash surrender value of bank owned life insurance | 175,732 | 176,405 |
Other assets | 196,906 | 150,020 |
Total assets | 12,415,449 | 10,544,047 |
Deposits: | ||
Noninterest-bearing | 3,186,650 | 2,552,039 |
Interest-bearing | 7,150,467 | 6,125,810 |
Total deposits | 10,337,117 | 8,677,849 |
Securities sold under agreements to repurchase | 207,266 | 175,614 |
Short-term borrowings | 30,168 | 4,658 |
Long-term debt (prior filing) | 52,409 | 4,757 |
Senior notes, net of unamortized issuance costs | 39,876 | 39,809 |
Subordinated notes, net of unamortized issuance costs | 182,503 | 182,226 |
Junior subordinated debt owed to unconsolidated trusts | 71,551 | 71,468 |
Lease liabilities | 8,280 | 7,757 |
Other liabilities | 140,588 | 109,840 |
Total liabilities | 11,069,758 | 9,273,978 |
Outstanding commitments and contingent liabilities (see Notes 9 and 15) | ||
Stockholders' Equity | ||
Common stock, $.001 par value; 100,000,000 shares authorized; 2021 58,116,970 shares issued; 2020 55,910,733 shares issued | 58 | 56 |
Additional paid-in capital | 1,316,716 | 1,253,360 |
Retained earnings | 62,926 | 20,830 |
Accumulated other comprehensive income (loss) | 10,725 | 33,309 |
Total stockholders' equity before treasury stock | 1,390,425 | 1,307,555 |
Treasury stock at cost 2021 1,786,354 shares; 2020 1,506,354 shares | (44,734) | (37,486) |
Total stockholders' equity | 1,345,691 | 1,270,069 |
Total liabilities and stockholders' equity | $ 12,415,449 | $ 10,544,047 |
Common shares outstanding at period end | 56,330,616 | 54,404,379 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Portfolio Loans, allowance for loan losses (in dollars) | $ 95,410 | $ 101,048 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,116,970 | 55,910,733 |
Treasury stock, shares | 1,786,354 | 1,506,354 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Interest and fees on loans | $ 61,404 | $ 71,089 | $ 123,969 | $ 143,625 |
Interest and dividends on investment securities: | ||||
Taxable interest income | 9,081 | 8,833 | 17,692 | 18,341 |
Non-taxable interest income | 958 | 1,166 | 1,963 | 2,317 |
Other interest income | 245 | 145 | 395 | 1,383 |
Total interest income | 71,688 | 81,233 | 144,019 | 165,666 |
Interest expense: | ||||
Deposits | 3,295 | 7,721 | 7,027 | 19,948 |
Federal funds purchased and securities sold under agreements to repurchase | 60 | 100 | 117 | 508 |
Short-term borrowings | 64 | 118 | 83 | 185 |
Long-term debt | 116 | 34 | 145 | 457 |
Senior notes | 399 | 399 | 799 | 799 |
Subordinated notes | 2,480 | 1,312 | 4,956 | 2,043 |
Junior subordinated debt owed to unconsolidated trusts | 732 | 736 | 1,457 | 1,480 |
Total interest expense | 7,146 | 10,420 | 14,584 | 25,420 |
Net interest income | 64,542 | 70,813 | 129,435 | 140,246 |
Provision for credit losses | (1,700) | 12,891 | (8,496) | 30,107 |
Net interest income after provision for credit losses | 66,242 | 57,922 | 137,931 | 110,139 |
Non-interest income: | ||||
Income on bank owned life insurance | 1,476 | 2,282 | 2,440 | 3,339 |
Net gains (losses) on sales of securities | 94 | 125 | 119 | 1,699 |
Unrealized gains (losses) recognized on equity securities | 804 | 190 | 2,420 | (797) |
Other income | 2,928 | 1,726 | 4,063 | 2,549 |
Total non-interest income | 33,011 | 27,964 | 64,456 | 55,481 |
Non-interest expense: | ||||
Salaries, wages, and employee benefits | 34,889 | 28,555 | 65,273 | 62,558 |
Data processing | 4,819 | 4,051 | 9,099 | 8,446 |
Net occupancy expense of premises | 4,246 | 4,448 | 8,809 | 9,163 |
Furniture and equipment expenses | 2,066 | 2,537 | 4,092 | 4,986 |
Professional fees | 2,311 | 1,986 | 4,256 | 3,810 |
Amortization of intangible assets | 2,650 | 2,519 | 5,051 | 5,076 |
Interchange expense | 1,442 | 1,198 | 2,926 | 2,367 |
Other expense | 10,202 | 7,774 | 17,618 | 17,176 |
Total non-interest expense | 62,625 | 53,068 | 117,124 | 113,582 |
Income before income taxes | 36,628 | 32,818 | 85,263 | 52,038 |
Income taxes | 6,862 | 7,012 | 17,681 | 10,868 |
Net income | $ 29,766 | $ 25,806 | $ 67,582 | $ 41,170 |
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.47 | $ 1.23 | $ 0.75 |
Diluted earnings per common share (in dollars per share) | 0.53 | 0.47 | 1.22 | 0.75 |
Dividends declared per share of common stock (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
Wealth management fees | ||||
Non-interest income: | ||||
Non-interest income | $ 13,002 | $ 10,193 | $ 25,586 | $ 21,748 |
Fees for customer services | ||||
Non-interest income: | ||||
Non-interest income | 8,611 | 7,025 | 16,648 | 15,386 |
Remittance processing | ||||
Non-interest income: | ||||
Non-interest income | 4,349 | 3,718 | 8,767 | 7,471 |
Mortgage revenue | ||||
Non-interest income: | ||||
Mortgage revenue | $ 1,747 | $ 2,705 | $ 4,413 | $ 4,086 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Net income | $ 29,766 | $ 25,806 | $ 67,582 | $ 41,170 |
Unrealized gains (losses) on debt securities available for sale: | ||||
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of ($2,700), ($1,670), $9,293, and ($10,259), respectively | 6,769 | 4,187 | (23,310) | 25,684 |
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $1, $41, $8, and $489, respectively | (2) | (102) | (20) | (1,210) |
Net change in unrealized gains (losses) on debt securities available for sale | 6,767 | 4,085 | (23,330) | 24,474 |
Unrealized gains (losses) on cash flow hedges: | ||||
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of $28, $4, ($136), and $896, respectively | (69) | (10) | 341 | (2,247) |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of ($82), $56, ($161), and $60, respectively | 206 | (139) | 405 | (150) |
Net change in unrealized gains (losses) on cash flow hedges | 137 | (149) | 746 | (2,397) |
Net change in accumulated other comprehensive income (loss) | 6,904 | 3,936 | (22,584) | 22,077 |
Total comprehensive income | $ 36,670 | $ 29,742 | $ 44,998 | $ 63,247 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Net unrealized holding gains (losses) on debt securities available for sale, taxes | $ 2,700 | $ 1,670 | $ (9,293) | $ 10,259 |
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, taxes | 1 | 41 | 8 | 489 |
Net unrealized holding gains (losses) on cash flow hedges, taxes | (28) | (4) | 136 | (896) |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, taxes | $ 82 | $ (56) | $ 161 | $ (60) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit).Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit). | Accumulated other comprehensive income (loss) | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning balance at Dec. 31, 2019 | $ 56 | $ 1,248,216 | $ (15,922) | $ (14,813) | $ 14,960 | $ (27,985) | $ (15,922) | $ 1,220,434 |
Beginning Balance (in shares) at Dec. 31, 2019 | 54,788,772 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Net income | 41,170 | 41,170 | ||||||
Other comprehensive income (loss) | 22,077 | 22,077 | ||||||
Repurchase of stock | 9,669 | 9,669 | ||||||
Repurchase of stock (in shares) | (407,850) | |||||||
Issuance of treasury stock for employee stock purchase plan | (45) | 388 | 343 | |||||
Issuance of treasury stock for employee stock purchase plan (in shares) | 20,532 | |||||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax | (2,646) | 2,011 | (635) | |||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares) | 106,477 | |||||||
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax | (51) | 152 | 101 | |||||
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares) | 8,069 | |||||||
Cash dividends common stock | (24,023) | (24,023) | ||||||
Stock dividend equivalents restricted stock units | 363 | (363) | ||||||
Stock-based compensation | 2,208 | 2,208 | ||||||
Ending balance at Jun. 30, 2020 | $ 56 | 1,248,045 | (13,951) | 37,037 | (35,103) | 1,236,084 | ||
Ending Balance (in shares) at Jun. 30, 2020 | 54,516,000 | |||||||
Beginning balance at Mar. 31, 2020 | $ 56 | 1,249,301 | (27,599) | 33,101 | (37,274) | 1,217,585 | ||
Beginning Balance (in shares) at Mar. 31, 2020 | 54,401,208 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Net income | 25,806 | 25,806 | ||||||
Other comprehensive income (loss) | 3,936 | 3,936 | ||||||
Repurchase of stock | (3) | (3) | ||||||
Issuance of treasury stock for employee stock purchase plan | (7) | 119 | 112 | |||||
Issuance of treasury stock for employee stock purchase plan (in shares) | 6,296 | |||||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax | (2,467) | 1,907 | (560) | |||||
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax (in shares) | 100,968 | |||||||
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax | (41) | 142 | 101 | |||||
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax (in shares) | 7,528 | |||||||
Cash dividends common stock | (11,968) | (11,968) | ||||||
Stock dividend equivalents restricted stock units | 190 | (190) | ||||||
Stock-based compensation | 1,069 | 1,069 | ||||||
Ending balance at Jun. 30, 2020 | $ 56 | 1,248,045 | (13,951) | 37,037 | (35,103) | 1,236,084 | ||
Ending Balance (in shares) at Jun. 30, 2020 | 54,516,000 | |||||||
Beginning balance at Dec. 31, 2020 | $ 56 | 1,253,360 | 20,830 | 33,309 | (37,486) | 1,270,069 | ||
Beginning Balance (in shares) at Dec. 31, 2020 | 54,404,379 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Net income | 67,582 | 67,582 | ||||||
Other comprehensive income (loss) | (22,584) | (22,584) | ||||||
Stock issued in acquisition, net of stock issuance costs | $ 2 | 58,982 | 58,984 | |||||
Stock issued in acquisition, net of stock issuance costs (in shares) | 2,206,237 | |||||||
Repurchase of stock | 7,248 | 7,248 | ||||||
Repurchase of stock (in shares) | (280,000) | |||||||
Cash dividends common stock | (24,997) | (24,997) | ||||||
Stock dividend equivalents restricted stock units | 489 | (489) | ||||||
Stock-based compensation | 3,885 | 3,885 | ||||||
Ending balance at Jun. 30, 2021 | $ 58 | 1,316,716 | 62,926 | 10,725 | (44,734) | 1,345,691 | ||
Ending Balance (in shares) at Jun. 30, 2021 | 56,330,616 | |||||||
Beginning balance at Mar. 31, 2021 | $ 56 | 1,255,044 | 45,897 | 3,821 | (38,996) | 1,265,822 | ||
Beginning Balance (in shares) at Mar. 31, 2021 | 54,345,379 | |||||||
Increase (decrease) in shareholders' equity | ||||||||
Net income | 29,766 | 29,766 | ||||||
Other comprehensive income (loss) | 6,904 | 6,904 | ||||||
Stock issued in acquisition, net of stock issuance costs | $ 2 | 58,982 | 58,984 | |||||
Stock issued in acquisition, net of stock issuance costs (in shares) | 2,206,237 | |||||||
Repurchase of stock | 5,738 | 5,738 | ||||||
Repurchase of stock (in shares) | (221,000) | |||||||
Cash dividends common stock | (12,484) | (12,484) | ||||||
Stock dividend equivalents restricted stock units | 253 | (253) | ||||||
Stock-based compensation | 2,437 | 2,437 | ||||||
Ending balance at Jun. 30, 2021 | $ 58 | $ 1,316,716 | $ 62,926 | $ 10,725 | $ (44,734) | $ 1,345,691 | ||
Ending Balance (in shares) at Jun. 30, 2021 | 56,330,616 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) | ||||
Cash dividends, common stock (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
Stock dividends, restricted stock units (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows Provided by (Used in) Operating Activities | ||
Net income | $ 67,582 | $ 41,170 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | (8,496) | 30,107 |
Amortization of intangible assets | 5,051 | 5,076 |
Amortization of mortgage servicing rights | 2,961 | 2,625 |
Depreciation and amortization of premises and equipment | 5,709 | 6,316 |
Net amortization (accretion) of premium (discount) on portfolio loans | (3,404) | (4,663) |
Net amortization (accretion) of premium (discount) on investment securities | 10,460 | 4,061 |
Net amortization (accretion) of premium (discount) on time deposits | (550) | (709) |
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings | 416 | 220 |
Impairment of fixed assets held for sale | 36 | |
Impairment of mortgage servicing rights | (506) | 526 |
Change in fair value of equity securities, net | (2,420) | 797 |
(Gain) loss on sales of debt securities, net | (119) | (1,699) |
(Gain) loss on sales of loans, net | (6,133) | (11,387) |
(Gain) loss on sales of OREO | 161 | 47 |
(Gain) loss on sales of premises and equipment | (986) | 191 |
(Gain) loss on life insurance proceeds | (488) | (1,256) |
Provision for deferred income taxes | 3,804 | (1,142) |
Stock-based and non-cash compensation | 3,885 | 2,208 |
(Increase) decrease in cash surrender value of bank owned life insurance | (1,953) | (2,083) |
Mortgage loans originated for sale | (157,670) | (511,670) |
Proceeds from sales of mortgage loans | 188,216 | 483,238 |
Net change in operating assets and liabilities: | ||
(Increase) decrease in other assets | (8,995) | 12,225 |
Increase (decrease) in other liabilities | (14,260) | 496 |
Net cash provided by (used in) operating activities | 82,265 | 54,730 |
Cash Flows Provided by (Used in) Investing Activities | ||
Purchases of equity securities | (5,998) | (4) |
Purchases of debt securities available for sale | (1,274,797) | (356,700) |
Proceeds from sales of equity securities | 1,235 | 33 |
Proceeds from sales of debt securities available for sale | 290,955 | |
Proceeds from paydowns and maturities of debt securities available for sale | 424,725 | 315,988 |
Net cash received in (paid for) acquisitions | 236,981 | |
Net (increase) decrease in loans | 79,088 | (546,599) |
Cash paid for premiums on bank-owned life insurance | (113) | (116) |
Purchases of premises and equipment | (3,093) | (3,029) |
Proceeds from life insurance | 3,227 | 2,512 |
Proceeds from disposition of premises and equipment | 5,158 | 802 |
Proceeds from sales of OREO | 1,410 | 413 |
Net cash provided by (used in) investing activities | (241,222) | (586,700) |
Cash Flows Provided by (Used in) Financing Activities | ||
Net increase (decrease) in deposits | 335,422 | 1,007,979 |
Net change in federal funds purchased and securities sold under agreements to repurchase | 15,001 | (11,242) |
Proceeds from other borrowings | 72,500 | 142,634 |
Repayment of other borrowings | (54,000) | |
Proceeds from FHLB advances | 5,000 | 1,609 |
Repayment of FHLB advances | (4,327) | |
Cash dividends paid | (24,997) | (24,023) |
Purchase of treasury stock | (7,248) | (9,669) |
Cash paid for withholding taxes on stock-based payments | (635) | |
Proceeds from stock options exercised | 101 | |
Common stock issuance costs | (121) | |
Net cash provided by (used in) financing activities | 391,230 | 1,052,754 |
Net increase (decrease) in cash and cash equivalents | 232,273 | 520,784 |
Cash and cash equivalents, beginning of period | 688,537 | 529,288 |
Cash and cash equivalents, ending of period | 920,810 | 1,050,072 |
Cash payments for: | ||
Interest | 11,571 | 25,761 |
Income taxes | 9,211 | 4,510 |
Non-cash investing and financing activities: | ||
OREO acquired in settlement of loans | $ 137 | $ 1,158 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Nature of Operations First Busey Corporation, a Nevada corporation organized in 1980, is a $12.4 billion financial holding company headquartered in Champaign, Illinois. Our common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE.” The Company operates and reports its business in three segments: Banking, Remittance Processing, and Wealth Management. The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiaries, Busey Bank and GSB, with banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. The Remittance Processing operating segment provides solutions for online bill payments, lockbox, and walk-in payments through the Company’s subsidiary, FirsTech. 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. Basis of Financial Statement Presentation These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements included in our 2020 Annual Report. These interim unaudited consolidated financial statements serve to update our 2020 Annual Report and may not include all information and notes necessary to constitute a complete set of financial statements. We prepared these unaudited consolidated financial statements in conformity with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the current period presentation. These reclassifications did not have a material impact on our consolidated financial condition or results of operations. In our opinion, the unaudited consolidated financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. COVID-19 First Busey has continued to operate as an essential community resource during these challenging and unprecedented times. Federal bank regulatory agencies, along with their state counterparts, have issued a steady stream of guidance responding to the COVID-19 pandemic and have taken a number of steps to help banks navigate the pandemic and mitigate its impact. The Company remains vigilant as the negative impacts of COVID-19, such as further margin compression and a deterioration in asset quality, could impact future quarters. As part of the CARES Act, Congress appropriated approximately $349 billion for the creation of the PPP and then authorized a second phase for an additional $310 billion in PPP loans. The program provided payroll assistance for the nation’s nearly 30 million small businesses—and select nonprofits—in the form of government-guaranteed low-interest loans from the SBA. On December 27, 2020, the Economic Aid Act extended the authority to make PPP loans through March 31, 2021, and revised certain PPP requirements. On March 30, 2021, the President signed the PPP Extension Act of 2021, which extended the PPP application deadline to May 31, 2021, or until funding was exhausted, which occurred on May 28, 2021. First Busey served as a bridge for these programs, actively helping existing and new business clients sign up for this important financial resource. The following table summarizes First Busey’s PPP loans as of June 30, 2021, (dollars in thousands) CARES Economic Aid PPP Loan Act Act Totals Busey Bank customers with PPP loans processed 4,569 2,474 7,043 PPP loans originated by Busey Bank $ 749,429 $ 296,346 $ 1,045,775 GSB customers with PPP loans acquired 26 266 292 PPP loans acquired from GSB $ 15,783 $ 27,694 $ 43,477 Customers with PPP loans outstanding (1) 581 2,523 3,104 PPP loans outstanding (1) $ 93,455 $ 306,249 $ 399,704 PPP loans outstanding, amortized cost (1) 93,099 297,296 390,395 PPP loan balance forgiveness: (1) Received $ 667,796 $ 17,788 $ 685,584 Balances submitted to the SBA for forgiveness 18,652 2,239 20,891 (1) Consolidated totals include Busey Bank and GSB. Use of Estimates In preparing the accompanying unaudited 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 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 investment securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report were issued. On July 27, 2021, the Company announced its Personal Banking Transformation Plan which includes plans to close and consolidate Busey Bank banking centers. In addition, the Company announced plans to consolidate GSB banking centers, with the banking centers in connection with the integration of the acquisition. Each of these banking center closures is expected to occur in the fourth quarter of 2021. There were no other significant subsequent events for the quarter ended June 30, 2021, through the filing date of these unaudited consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions | |
Acquisitions | Note 2: Acquisitions Cummins-American Corp. Effective May 31, 2021, the Company completed its acquisition of CAC, the holding company for GSB. The partnership will enhance 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 operation beginning June 1, 2021. Busey will operate GSB as a separate banking subsidiary of Busey until it is merged with Busey Bank, which is expected to occur in the third quarter of 2021. At the time of the bank merger, all GSB banking centers will become branches of Busey Bank. Under 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 the adjustments made to the cash consideration in accordance with the terms of the definitive agreement. The fair value of the common shares issued as part of the consideration paid for CAC was determined on the basis of the closing price of the Company’s common shares on the last trading day immediately preceding the acquisition date of May 31, 2021. As additional consideration provided to CAC’s shareholders in the merger, CAC paid a special dividend to its shareholders in the amount of 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 are considered provisional until final fair values are determined, or the measurement period has passed, but no later than one year from the acquisition date. Reviews of third-party valuations for loans, deposits, and other intangible assets are still being performed by management. Therefore, amounts are subject to change, and could change materially from the provisional amounts discussed below. As the total consideration paid for CAC exceeded the provisional fair value of net assets acquired, estimated goodwill of $6.0 million was recorded as of the acquisition date. 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. The following table presents the estimated fair value of CAC’s assets acquired and liabilities assumed as of May 31, 2021 (dollars in thousands) : Fair Value Assets acquired Cash and cash equivalents $ 307,339 Securities 702,367 Portfolio loans, net of ACL 430,491 Premises and equipment 17,034 Other intangible assets 17,340 Mortgage servicing rights 629 Other assets 8,178 Total assets acquired 1,483,378 Liabilities assumed Deposits 1,324,396 Other borrowings 16,651 Other liabilities 18,853 Total liabilities assumed 1,359,900 Net assets acquired $ 123,478 Consideration paid: Cash $ 70,358 Common stock 59,105 Total consideration paid $ 129,463 Goodwill $ 5,985 The fair value of PCD financial assets was $60.5 million on the date of acquisition. Gross contractual amounts receivable relating to the PCD financial assets was $65.2 million. The Company estimates, on the date of acquisition, that $4.2 million of the contractual cash flows specific to the PCD financial assets will not be collected. During three and six months ended June 30, 2021, First Busey incurred $2.7 million and $3.0 million, respectively, in pre-tax acquisition expenses related to the acquisition of CAC, comprised primarily of professional fees, compensation expense, and data processing expense. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2021 | |
Securities | |
Securities | Note 3: Securities The table below provides the amortized cost, unrealized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands) As of June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses ACL Value Debt securities available for sale U.S. Treasury securities $ 212,022 $ 150 $ (279) $ — $ 211,893 Obligations of U.S. government corporations and agencies 49,528 1,470 — — 50,998 Obligations of states and political subdivisions 292,221 9,634 (513) — 301,342 Commercial mortgage-backed securities 513,067 6,528 (5,543) — 514,052 Residential mortgage-backed securities 1,837,271 16,875 (11,952) — 1,842,194 Asset-backed securities 246,998 179 (180) — 246,997 Corporate debt securities 296,397 1,457 (813) — 297,041 Total debt securities available for sale $ 3,447,504 $ 36,293 $ (19,280) $ — $ 3,464,517 As of December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses ACL Value Debt securities available for sale U.S. Treasury securities $ 27,481 $ 356 $ — $ — $ 27,837 Obligations of U.S. government corporations and agencies 67,406 2,162 (49) — 69,519 Obligations of states and political subdivisions 292,940 11,779 (8) — 304,711 Commercial mortgage-backed securities 408,716 10,212 (312) — 418,616 Residential mortgage-backed securities 1,344,047 24,571 (303) — 1,368,315 Corporate debt securities 70,953 1,237 (1) — 72,189 Total debt securities available for sale $ 2,211,543 $ 50,317 $ (673) — $ 2,261,187 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. (dollars in thousands) As of June 30, 2021 Amortized Fair Cost Value Debt securities available for sale Due in one year or less $ 122,809 $ 123,502 Due after one year through five years 573,422 579,219 Due after five years through ten years 398,111 407,150 Due after ten years 2,353,162 2,354,646 Total debt securities available for sale $ 3,447,504 $ 3,464,517 Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Realized gains and losses on sales of debt securities Gross security gains $ 499 $ 146 $ 524 $ 1,707 Gross security (losses) (405) (3) (405) (8) Net gains (losses) on sales of debt securities (1) $ 94 $ 143 $ 119 $ 1,699 (1) Net gains (losses) on sales of securities reported on the unaudited Consolidated Statements of Income includes sales of equity securities, excluded in this table. Debt securities with carrying amounts of $703.1 million on June 30, 2021, and $628.0 million December 31, 2020, 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 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 June 30, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Debt securities available for sale U.S. Treasury securities $ 150,811 $ (279) $ — $ — $ 150,811 $ (279) Obligations of states and political subdivisions 48,579 (513) — — 48,579 (513) Commercial mortgage-backed securities 322,082 (5,543) — — 322,082 (5,543) Residential mortgage-backed securities 1,073,263 (11,948) 344 (4) 1,073,607 (11,952) Asset-backed securities 98,703 (180) — — 98,703 (180) Corporate debt securities 200,076 (813) — — 200,076 (813) Total temporarily impaired securities $ 1,893,514 $ (19,276) $ 344 $ (4) $ 1,893,858 $ (19,280) As of December 31, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Debt securities available for sale Obligations of U.S. government corporations and agencies $ — $ — $ 4,957 $ (49) $ 4,957 $ (49) Obligations of states and political subdivisions 762 (8) — — 762 (8) Commercial mortgage-backed securities 129,655 (312) — — 129,655 (312) Residential mortgage-backed securities 89,997 (300) 139 (3) 90,136 (303) Corporate debt securities 1,499 (1) — — 1,499 (1) Total temporarily impaired securities $ 221,913 $ (621) $ 5,096 $ (52) $ 227,009 $ (673) Debt securities available for sale are not within the scope of CECL, however, the accounting for credit losses on these securities is affected by ASC 326-30. As of June 30, 2021, the Company’s debt security portfolio consisted of 31, 2020. The number of debt securities in the investment portfolio in an unrealized loss position as of June 30, 2021, was of the aggregate fair value. Unrealized losses related to changes in market interest rates and market conditions that do not represent credit-related impairments. Furthermore, the Company does not intend to sell such securities 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, the impairment related to noncredit factors is recognized in accumulated other comprehensive income (loss), net of applicable taxes. As of June 30, 2021, 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 | 6 Months Ended |
Jun. 30, 2021 | |
Portfolio Loans | |
Portfolio loans | Note 4: Portfolio Loans Distributions of portfolio loans are as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Portfolio loans Commercial $ 2,054,550 $ 2,014,576 Commercial real estate 2,920,312 2,892,535 Real estate construction 500,599 461,786 Retail real estate 1,525,810 1,407,852 Retail other 184,379 37,428 Total portfolio loans $ 7,185,650 $ 6,814,177 ACL (95,410) (101,048) Portfolio loans, net $ 7,090,240 $ 6,713,129 Net deferred loan origination (fees) costs included in the balances above were ($0.3) million as of June 30, 2021, compared to $2.4 million as of December 31, 2020. Net accretable purchase accounting adjustments included in the balances above reduced loans by 31, 2020. The June 30, 2021, commercial balance includes loans originated under PPP with an amortized cost of During the three and six months ended June 30, 2021, the Company purchased retail real estate loans totaling $32.2 million, compared to no retail real estate loan purchases during the three months ended June 30, 2020, and $43.9 million of retail real estate loan purchases in the six months ended June 30, 2020. 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 million or less are usually processed through an expedited underwriting process. Most commercial loans greater than million are included in a portfolio review at least annually. Commercial loans greater than 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. GSB’s policies are similar in nature to Busey Bank’s policies and the Company is migrating such loan production and grading toward the Busey Bank policies. The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands) As of June 30, 2021 Special Substandard Pass Watch Mention Substandard Non-accrual Portfolio loans Commercial $ 1,816,456 $ 131,361 $ 76,706 $ 19,349 $ 10,678 Commercial real estate 2,446,143 379,546 67,179 18,679 8,765 Real estate construction 482,718 15,473 8 2,400 — Retail real estate 1,496,677 13,878 2,342 4,672 8,241 Retail other 184,338 — — — 41 Total portfolio loans $ 6,426,332 $ 540,258 $ 146,235 $ 45,100 $ 27,725 As of December 31, 2020 Special Substandard Pass Watch Mention Substandard Non-accrual Portfolio loans Commercial $ 1,768,755 $ 136,948 $ 72,447 $ 27,903 $ 8,523 Commercial real estate 2,393,372 383,277 75,486 34,897 5,503 Real estate construction 434,681 24,481 77 2,546 1 Retail real estate 1,382,616 10,264 2,471 3,702 8,799 Retail other 37,324 — — — 104 Total portfolio loans $ 6,016,748 $ 554,970 $ 150,481 $ 69,048 $ 22,930 Risk grades of portfolio loans, further sorted by origination year, are as follows (dollars in thousands) As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2021 2020 2019 2018 2017 Prior loans Total Commercial Pass $ 550,732 $ 363,044 $ 118,095 $ 94,495 $ 79,018 $ 129,150 $ 481,922 $ 1,816,456 Watch 11,051 7,412 20,256 5,597 8,415 9,830 68,800 131,361 Special 2,739 2,650 2,864 4,845 6,920 18,111 38,577 76,706 Substandard 3,794 4,588 3,504 1,807 1,338 80 4,238 19,349 Substandard non-accrual 4,356 469 1,591 — 2,144 118 2,000 10,678 Total commercial 572,672 378,163 146,310 106,744 97,835 157,289 595,537 2,054,550 Commercial real estate Pass 420,841 691,476 441,952 313,315 269,126 291,896 17,537 2,446,143 Watch 39,642 53,762 130,096 84,131 28,486 41,473 1,956 379,546 Special 22,415 7,389 6,780 9,907 10,285 9,794 609 67,179 Substandard 2,134 9,898 2,465 2,397 25 1,760 — 18,679 Substandard non-accrual 78 775 1,233 821 4,004 1,854 — 8,765 Total commercial real estate 485,110 763,300 582,526 410,571 311,926 346,777 20,102 2,920,312 Real estate construction Pass 99,885 183,938 148,531 34,750 957 1,277 13,380 482,718 Watch 2,330 10,174 886 283 1,659 141 — 15,473 Special — — 8 — — — — 8 Substandard — 2,400 — — — — — 2,400 Substandard non-accrual — — — — — — — — Total real estate construction 102,215 196,512 149,425 35,033 2,616 1,418 13,380 500,599 Retail real estate Pass 335,450 246,690 133,617 110,169 110,300 349,052 211,399 1,496,677 Watch 2,925 2,415 2,002 1,515 305 388 4,328 13,878 Special 377 31 — — — 1,934 — 2,342 Substandard 730 967 73 98 235 2,485 84 4,672 Substandard non-accrual 339 161 74 536 1,200 4,673 1,258 8,241 Total retail real estate 339,821 250,264 135,766 112,318 112,040 358,532 217,069 1,525,810 Retail other Pass 22,532 28,477 35,134 23,894 13,223 4,535 56,543 184,338 Watch — — — — — — — — Special — — — — — — — — Substandard — — — — — — — — Substandard non-accrual — 13 7 5 14 2 — 41 Total retail other 22,532 28,490 35,141 23,899 13,237 4,537 56,543 184,379 Total portfolio loans $ 1,522,350 $ 1,616,729 $ 1,049,168 $ 688,565 $ 537,654 $ 868,553 $ 902,631 $ 7,185,650 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2020 2019 2018 2017 2016 Prior loans Total Commercial Pass $ 812,536 $ 158,307 $ 107,565 $ 93,190 $ 61,847 $ 79,970 $ 455,340 $ 1,768,755 Watch 16,544 22,247 14,954 13,724 2,577 10,943 55,959 136,948 Special Mention 6,402 2,671 2,069 7,164 6,763 13,733 33,645 72,447 Substandard 7,772 3,791 2,371 1,939 819 1,233 9,978 27,903 Substandard non-accrual 150 3,045 451 2,168 641 68 2,000 8,523 Total commercial 843,404 190,061 127,410 118,185 72,647 105,947 556,922 2,014,576 Commercial real estate Pass 717,559 503,977 360,573 384,843 180,555 227,068 18,797 2,393,372 Watch 88,297 110,526 90,412 33,734 32,887 27,023 398 383,277 Special Mention 16,490 8,858 10,490 10,505 7,102 21,808 233 75,486 Substandard 17,445 4,166 1,491 7,812 2,111 1,377 495 34,897 Substandard non-accrual 1,091 776 821 882 286 1,647 — 5,503 Total commercial real estate 840,882 628,303 463,787 437,776 222,941 278,923 19,923 2,892,535 Real estate construction Pass 179,232 171,663 64,025 1,468 761 1,444 16,088 434,681 Watch 18,485 3,657 337 1,838 164 24,481 Special Mention 67 10 — — — — — 77 Substandard 2,400 — — — 146 — — 2,546 Substandard non-accrual — — — — — 1 — 1 Total real estate construction 200,184 175,330 64,362 3,306 1,071 1,445 16,088 461,786 Retail real estate Pass 319,302 162,711 135,065 136,427 140,600 257,147 231,364 1,382,616 Watch 2,715 2,053 1,396 349 579 233 2,939 10,264 Special Mention 509 — — — 1,962 — — 2,471 Substandard 899 96 56 26 727 1,631 267 3,702 Substandard non-accrual 687 78 646 1,147 233 4,815 1,193 8,799 Total retail real estate 324,112 164,938 137,163 137,949 144,101 263,826 235,763 1,407,852 Retail other Pass 8,357 9,430 5,600 2,516 691 440 10,290 37,324 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — — — — — — — — Substandard non-accrual 14 7 5 15 5 57 1 104 Total retail other 8,371 9,437 5,605 2,531 696 497 10,291 37,428 Total portfolio loans $ 2,216,953 $ 1,168,069 $ 798,327 $ 699,747 $ 441,456 $ 650,638 $ 838,987 $ 6,814,177 An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on a non-accrual status, is as follows (dollars in thousands) As of June 30, 2021 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 241 $ — $ 2 $ 10,678 Commercial real estate 330 — — 8,765 Real estate construction — 426 — — Retail real estate 2,014 814 587 8,241 Retail other 54 9 1 41 Total past due and non-accrual loans $ 2,639 $ 1,249 $ 590 $ 27,725 As of December 31, 2020 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 243 $ — $ — $ 8,523 Commercial real estate — — — 5,503 Real estate construction 237 235 — 1 Retail real estate 6,248 400 1,305 8,799 Retail other 66 149 66 104 Total past due and non-accrual loans $ 6,794 $ 784 $ 1,371 $ 22,930 Gross interest income recorded on 90+ day 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 $0.4 million for the three months ended June 30, 2021 and 2020. Gross interest income recorded on 90+ day 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 30, 2021 and 2020. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was insignificant for the three and six months ended June 30, 2021 and 2020. A summary of TDR loans is as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Performing TDR loans: In compliance with modified terms $ 2,518 $ 3,814 30 – — 15 Non-performing TDR loans 1,314 1,249 Total TDR loans $ 3,832 $ 5,078 We did not newly classify any loans as performing TDRs during the three or six months ended June 30, 2021. Loans newly classified as performing TDRs during the three and six months ended June 30, 2020, included one retail real estate loan for $0.2 million for payment modification. During the six months ended June 30, 2021, one commercial loan for $0.5 million was newly classified as a non-performing TDR for payment and rate modifications. This loan had been non-accrual since the second quarter of 2020. Also, during the six months ended June 30, 2021, one retail real estate loan for $0.1 million that had been a performing TDR for longer than 12 months, with a rate modification, became non-performing. During the six months ended June 30, 2020, three commercial loans for $0.5 million and one commercial real estate loan for $0.7 million were newly classified as non-performing TDRs for payment and rate modifications. These loans had been non-accrual since 2019. There were no TDRs that were entered into during the last 12 months that were subsequently classified as non-performing and had payment defaults (a default occurs when a loan is 90 days or more past due or transferred to non-accrual) during the three and six months ended June 30, 2021 or 2020. Gross interest income that would have been recorded in the three and six months ended June 30, 2021 and 2020 if TDRs had performed in accordance with their original terms compared with their modified terms was insignificant. Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classification are not included in the Company’s TDR totals. As of June 30, 2021, the Company had $0.2 million of residential real estate in the process of foreclosure. The Company follows FHFA guidelines on single-family foreclosures and real estate owned evictions on portfolio loans, as well as all COVID-19 related state foreclosure and eviction orders. The existing moratoriums on single-family foreclosures expired on July 31, 2021; however, moratoriums on single-family real estate owned evictions have been extended until September 30, 2021. The following tables provide details of loans evaluated individually, segregated by category. The Company evaluates loans with disparate risk characteristics on an individual basis. The unpaid contractual principal balance represents the customer outstanding balance excluding any partial charge-offs. Amortized cost represents customer balances net of any partial charge-offs recognized on the loan. Average amortized cost is calculated using the most recent four quarters (dollars in thousands) As of June 30, 2021 Unpaid Amortized Contractual Cost Amortized Total Average Principal with No Cost Amortized Related Amortized Balance Allowance with Allowance Cost Allowance Cost Loans evaluated on an individual basis Commercial $ 14,624 $ 2,237 $ 8,348 $ 10,585 $ 4,470 $ 8,156 Commercial real estate 9,647 8,360 — 8,360 — 7,683 Real estate construction 283 283 — 283 — 395 Retail real estate 4,295 3,911 25 3,936 25 4,933 Retail other — — — — — — Total loans evaluated individually $ 28,849 $ 14,791 $ 8,373 $ 23,164 $ 4,495 $ 21,167 As of December 31, 2020 Unpaid Amortized Contractual Cost Amortized Total Average Principal with No Cost Amortized Related Amortized Balance Allowance with Allowance Cost Allowance Cost Loans evaluated on an individual basis Commercial $ 16,771 $ 4,001 $ 4,371 $ 8,372 $ 1,600 $ 7,920 Commercial real estate 7,406 6,067 — 6,067 — 9,349 Real estate construction 292 292 — 292 — 581 Retail real estate 5,873 5,490 25 5,515 25 7,439 Retail other — — — — — 10 Total loans evaluated individually $ 30,342 $ 15,850 $ 4,396 $ 20,246 $ 1,625 $ 25,299 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. As of June 30, 2021, there were 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. As of June 30, 2021, the Company expects the markets in which it operates to experience continued economic uncertainty around the levels of delinquencies over the next 12 months. Management adjusted the historical loss experience for these expectations with an immediate reversion to historical loss rate beyond this forecast period. PPP loans were excluded from the ACL calculation as they are 100% government guaranteed. The following tables detail activity in the ACL. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands) As of and for the Three Months Ended June 30, 2021 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL beginning balance $ 23,025 $ 43,306 $ 6,879 $ 19,978 $ 755 $ 93,943 Day 1 PCD 3,546 336 — 129 167 4,178 Provision for credit losses (1,420) (3,390) 671 404 2,035 (1,700) Charged-off (1,000) (317) — (157) (64) (1,538) Recoveries 205 39 49 151 83 527 ACL ending balance $ 24,356 $ 39,974 $ 7,599 $ 20,505 $ 2,976 $ 95,410 As of and for the Six Months Ended June 30, 2021 Commercial Real Estate Retail Commercial Real Estate Construction Real Estate Retail Other Total ACL beginning balance $ 23,866 $ 46,230 $ 8,193 $ 21,992 $ 767 $ 101,048 Day 1 PCD 3,546 336 — 129 167 4,178 Provision for credit losses (2,084) (6,085) (579) (1,873) 2,125 (8,496) Charged-off (1,262) (620) (209) (160) (251) (2,502) Recoveries 290 113 194 417 168 1,182 ACL ending balance $ 24,356 $ 39,974 $ 7,599 $ 20,505 $ 2,976 $ 95,410 As of and for the Three Months Ended June 30, 2020 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL beginning balance $ 22,725 $ 35,967 $ 7,193 $ 17,454 $ 1,045 $ 84,384 Provision for credit losses 2,473 6,861 574 2,981 2 12,891 Charged-off (1,140) (165) — (292) (105) (1,702) Recoveries 88 17 25 262 81 473 ACL ending balance $ 24,146 $ 42,680 $ 7,792 $ 20,405 $ 1,023 $ 96,046 As of and for the Six Months Ended June 30, 2020 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total Beginning balance, prior to adoption of ASC $ 18,291 $ 21,190 $ 3,204 $ 10,495 $ 568 $ 53,748 Adoption of ASC 715 9,306 2,954 3,292 566 16,833 Provision for credit losses 8,146 13,387 1,463 7,018 93 30,107 Charged-off (3,182) (1,264) — (1,000) (404) (5,850) Recoveries 176 61 171 600 200 1,208 ACL ending balance $ 24,146 $ 42,680 $ 7,792 $ 20,405 $ 1,023 $ 96,046 The following table presents the ACL and amortized cost of portfolio loans by category (dollars in thousands) As of June 30, 2021 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL Ending balance attributed to: Loans individually evaluated for impairment $ 4,470 $ — $ — $ 25 $ — $ 4,495 Loans collectively evaluated for impairment 19,886 39,974 7,599 20,480 2,976 90,915 ACL ending balance $ 24,356 $ 39,974 $ 7,599 $ 20,505 $ 2,976 $ 95,410 Loans Loans individually evaluated for impairment $ 10,585 $ 8,360 $ 283 $ 3,936 $ — $ 23,164 Loans collectively evaluated for impairment 2,043,965 2,911,952 500,316 1,521,874 184,379 7,162,486 Loans ending balance $ 2,054,550 $ 2,920,312 $ 500,599 $ 1,525,810 $ 184,379 $ 7,185,650 As of December 31, 2020 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL Ending balance attributed to: Loans individually evaluated for impairment $ 1,600 $ — $ — $ 25 $ — $ 1,625 Loans collectively evaluated for impairment 22,266 46,230 8,193 21,967 767 99,423 ACL ending balance $ 23,866 $ 46,230 $ 8,193 $ 21,992 $ 767 $ 101,048 Loans Loans individually evaluated for impairment $ 8,372 $ 6,067 $ 292 $ 5,515 $ — $ 20,246 Loans collectively evaluated for impairment 2,006,204 2,886,468 461,494 1,402,337 37,428 6,793,931 Loans ending balance $ 2,014,576 $ 2,892,535 $ 461,786 $ 1,407,852 $ 37,428 $ 6,814,177 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits | |
Deposits | Note 5: Deposits The composition of deposits is as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Deposits Demand deposits, noninterest-bearing $ 3,186,650 $ 2,552,039 Interest-bearing transaction deposits 2,722,053 2,263,093 Saving deposits and money market deposits 3,312,818 2,743,369 Time deposits 1,115,596 1,119,348 Total deposits $ 10,337,117 $ 8,677,849 Additional information about our deposits is as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Brokered savings deposits and money market deposits $ 2,002 $ 2,251 Brokered time deposits 261 5,257 Aggregate amount of time deposits with a minimum denomination of $100,000 377,832 568,735 Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 171,460 192,563 As of June 30, 2021, the scheduled maturities of time deposits are as follows (dollars in thousands) As of June 30, 2021 Time deposits by schedule of maturities July 1, 2021 – June 30, 2022 $ 773,787 July 1, 2022 – June 30, 2023 193,316 July 1, 2023 – June 30, 2024 100,287 July 1, 2024 – June 30, 2025 23,990 July 1, 2025 – June 30, 2026 13,786 Thereafter 10,430 Total time deposits $ 1,115,596 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings | |
Borrowings | Note 6: Borrowings Securities sold under agreements to repurchase, which are classified as secured borrowings, generally 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. (dollars in thousands) As of June 30, December 31, 2021 2020 Securities sold under agreements to repurchase $ 207,266 $ 175,614 Weighted average rate for securities sold under agreements to repurchase 0.12 % 0.13 % 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 a termination date of April 30, 2022, and (ii) a $60.0 million term loan with a maturity date of May 31, 2026. The loans have an annual interest rate of 1.75 % plus the one-month LIBOR rate. 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 and for general corporate purposes. The revolving credit facility incurs a non-usage fee based on any undrawn amounts. Short-term borrowings are summarized as follows (dollars in thousands) As of June 30, December 31, 2021 2020 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 $ 5,668 $ 4,658 Revolving line of credit 12,500 — Term Loan, current portion due within 12 months 12,000 — Total short-term debt $ 30,168 $ 4,658 Federal funds purchased are short-term borrowings that generally mature between one . The Company had Long-term debt is summarized as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Long-term debt Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock $ 4,409 $ 4,757 Term Loan 48,000 — Total long-term debt $ 52,409 $ 4,757 As of June 30, 2021, and December 31, 2020, funds borrowed from the FHLB, listed above, consisted of one variable-rate note maturing May 2023, with an interest rate of 3.04%. On May 25, 2017, the Company issued $40.0 million of 3.75% senior notes that mature on May 25, 2022. The senior notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017. The senior notes are not subject to optional redemption by the Company. Additionally, on May 25, 2017, the Company issued 25, 2027. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of , as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each May 25 and November 25, commencing on November 25, 2017, during the 25, 2022. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after May 25, 2022. The senior notes and subordinated notes are unsecured obligations of the Company. 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 , as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each June 1 and December 1 during the 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. Unamortized debt issuance costs related to senior notes and subordinated notes are presented in the following table (dollars in thousands) As of June 30, December 31, 2021 2020 Unamortized debt issuance costs Senior notes issued in 2017 $ 124 $ 191 Subordinated notes issued in 2017 600 651 Subordinated notes issued in 2020 1,897 2,123 Total unamortized debt issuance costs $ 2,621 $ 2,965 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital | |
Regulatory Capital | Note 7: Regulatory Capital The Company and its subsidiary banks 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 June 30, 2021, and December 31, 2020, all capital ratios of the Company and its subsidiary banks exceeded the well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to June 30, 2021, that would change this designation. On March 27, 2020, the FDIC and other federal banking agencies published an interim final rule that provides those banking organizations adopting 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. On August 26, 2020, the CECL final rule was finalized and was substantially similar to the interim final rule. 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, from the adoption of CECL will be deferred for two years, until January 1, 2022. 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, will be added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. At the conclusion of the two-year period the adjusted transition amounts will 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. GSB adopted CECL as of the acquisition date, and based on the timing of the acquisition, GSB is not eligible for this deferral option. The following tables summarize regulatory capital requirements applicable to the holding company its subsidiary banks (dollars in thousands) As of June 30, 2021 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 1,322,889 16.41 % $ 644,804 8.00 % $ 806,004 10.00 % Busey Bank $ 1,200,761 16.22 % $ 592,339 8.00 % $ 740,424 10.00 % GSB $ 113,250 18.20 % $ 49,779 8.00 % $ 62,223 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 1,062,182 13.18 % $ 483,603 6.00 % $ 644,804 8.00 % Busey Bank $ 1,133,213 15.30 % $ 444,254 6.00 % $ 592,339 8.00 % GSB $ 105,472 16.95 % $ 37,334 6.00 % $ 49,779 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 988,182 12.26 % $ 362,702 4.50 % $ 523,903 6.50 % Busey Bank $ 1,133,213 15.30 % $ 333,191 4.50 % $ 481,275 6.50 % GSB $ 105,472 16.95 % $ 28,000 4.50 % $ 40,445 6.50 % Tier 1 Capital (to Average Assets) Consolidated $ 1,062,182 9.62 % $ 441,602 4.00 % N/A N/A Busey Bank $ 1,133,213 10.78 % $ 420,434 4.00 % $ 525,542 5.00 % GSB $ 105,472 7.35 % $ 57,425 4.00 % $ 71,782 5.00 % As of December 31, 2020 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 1,245,997 17.04 % $ 585,015 8.00 % $ 731,269 10.00 % Busey Bank $ 1,131,875 15.50 % $ 584,082 8.00 % $ 730,103 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 983,033 13.44 % $ 438,761 6.00 % $ 585,015 8.00 % Busey Bank $ 1,053,910 14.44 % $ 438,062 6.00 % $ 584,082 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 909,033 12.43 % $ 329,071 4.50 % $ 475,325 6.50 % Busey Bank $ 1,053,910 14.44 % $ 328,546 4.50 % $ 474,567 6.50 % Tier 1 Capital (to Average Assets) Consolidated $ 983,033 9.79 % $ 401,717 4.00 % N/A N/A Busey Bank $ 1,053,910 10.52 % $ 400,581 4.00 % $ 500,727 5.00 % 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 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) total capital to risk-weighted assets of at least 10.50%, (ii) Tier 1 Capital to risk-weighted assets of at least 8.50%, and (iii) Common Equity Tier 1 to risk-weighted assets of at least 7.00%. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Stock-based Compensation | |
Stock-based Compensation | Note 8: Stock-Based Compensation Under the terms of the 2020 Equity Plan, the Company has granted restricted stock units, deferred stock units and performance-based restricted stock unit awards. The Company grants restricted stock units to members of management periodically throughout the year. Each restricted stock unit is equivalent to share of the Company’s common stock. These units have requisite service periods ranging from one , 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 deferred stock units, which are restricted stock units with a deferred settlement date, to its directors and advisory directors. Each deferred stock unit is equivalent to share of the Company’s common stock. Deferred stock units vest over a period following the grant date. These units generally are subject to the same terms as restricted stock units under the 2020 Equity Plan, except that, following vesting, settlement occurs within 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 performance-based restricted stock unit awards to members of management periodically throughout the year. Each performance-based restricted stock unit is equivalent to 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. The Company has outstanding stock options assumed from acquisitions. Upon vesting/delivery, shares are expected (though not required) to be issued from treasury. Stock Option Plan A summary of the status of, and changes in, the Company's stock option awards for the six months ended June 30, 2021, follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Shares Price Life Outstanding at beginning of period 39,085 $ 23.53 5.88 Expired (6,379) 23.53 Outstanding at end of period 32,706 $ 23.53 5.38 Exercisable at end of period 32,706 $ 23.53 5.38 The Company did not record any stock option compensation expense for the three or six months ended June 30, 2021. As of June 30, 2021, the Company did not have any unrecognized stock option expense. Restricted Stock Unit, Performance-Based Restricted Stock Unit, and Deferred Stock Unit Awards A summary of changes in the Company’s RSU, PSU, and DSU awards for the six months ended June 30, 2021, is as follows: RSU Awards PSU Awards DSU Awards Weighted- Weighted- Weighted- Average Average Average Grant Date Grant Date Grant Date Shares Fair Value Shares (1) Fair Value Shares Fair Value Nonvested at beginning of period 1,017,038 $ 23.87 15,724 $ 16.25 34,263 $ 17.18 Granted 212,426 24.54 99,159 23.91 35,664 24.59 Dividend equivalents earned 22,573 22.82 — — 2,459 22.93 Vested — — — — (1,452) 22.63 Forfeited (19,907) 25.04 (459) 23.48 — — Nonvested at end of period 1,232,130 $ 23.95 114,424 $ 22.86 70,934 $ 20.99 Vested and outstanding at end of period 72,496 $ 24.30 (1) Shares for PSU awards represent target shares at grant date. On March 24, 2021, under the terms of the 2020 Equity Plan, the Company granted 212,426 restricted stock units to members of management, including the Vice-Chairman of the Board. The grant date fair value of the award totaled . The terms of these awards included an accelerated vesting provision upon eligible retirement from the Company, after a minimum requisite service period. Subsequent to the requisite service period, the awards will become vested. Further, the Company granted deferred stock units to directors and advisory directors. The grant date fair value of the award totaled . Subsequent to the requisite service period, the awards will become During the first quarter of 2021, the Company also granted a target of 70,815 market-based performance stock units with a maximum award of 113,304 units. The actual number of units issued at the vesting date could range from of the initial grant, depending on attaining the market-based total shareholder return performance goal. The grant date fair value of the award was Further, during the first quarter of 2021, the Company granted a target of 28,344 performance-based stock units with a maximum award of 39,682 units. The actual number of units issued at the vest date could range from of the initial grant, depending on attaining a performance goal based upon the compounded annual revenue growth rate of the Remittance Processing segment. The grant date fair value of the award is On May 19, 2021, under the terms of the 2020 Equity Plan, the Company granted 2,376 deferred stock units to directors. The grant date fair value of the award totaled . Subsequent to the requisite service period, the awards will become Stock-based compensation expense related to nonvested restricted stock units, deferred stock units, and performance-based restricted stock awards is presented in the table below (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock-based compensation expense RSU awards $ 1,816 $ 924 $ 3,046 $ 2,069 PSU awards 268 — 328 — DSU awards 353 145 511 139 Total stock-based compensation expense $ 2,437 $ 1,069 $ 3,885 $ 2,208 Unamortized stock-based compensation expense related to nonvested restricted stock units, deferred stock units, and performance-based restricted stock awards is presented in the table below (dollars in thousands) As of June 30, December 31, 2021 2020 Unamortized stock-based compensation expense RSU awards $ 12,094 $ 10,411 PSU awards 1,690 179 DSU awards 660 294 Total unamortized stock-based compensation expense $ 14,444 $ 10,884 Weighted average period over which expense is to be recognized 3.2 yrs 3.0 yrs The First Busey Corporation 2021 Employee Stock Purchase Plan was approved at the Company’s 2021 Annual Meeting of Stockholders and details can be found within its Definitive Proxy Statement filed April 8, 2021. The first offering under this plan began on July 1, 2021. The table below presents shares remaining available for issuance pursuant to authorized plans as of June 30, 2021: Shares Remaining Available for Issuance Pursuant to the Plans 2020 Equity Plan 1,087,266 2021 Employee Stock Purchase Plan 600,000 |
Outstanding Commitments and Con
Outstanding Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Outstanding Commitments and Contingent Liabilities | |
Outstanding Commitments and Contingent Liabilities | Note 9: 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 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 June 30, December 31, 2021 2020 Financial instruments whose contract amounts represent credit risk Commitments to extend credit $ 1,785,205 $ 1,754,370 Standby letters of credit 38,050 38,937 Total commitments $ 1,823,255 $ 1,793,307 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 10: 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 11: Fair Value Measurements 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. The change in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. Interest rate swaps with notional amounts totaling $70.0 million as of June 30, 2021, and December 31, 2020, were designated as cash flow hedges to hedge the risk of variability in cash flows (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 and were determined to be highly effective during the period. The gross aggregate fair value of the swaps of 31, 2020, is recorded in other liabilities in the unaudited Consolidated Balance Sheets, with changes in fair value recorded net of tax in other comprehensive income (loss). The Company expects the hedges to remain highly effective during the remaining terms of the swaps. A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands) As of June 30, December 31, 2021 2020 Notional amount $ 70,000 $ 70,000 Weighted average fixed pay rates 1.80 % 1.80 % Weighted average variable 3-month LIBOR receive rates 0.12 % 0.22 % Weighted average maturity, in years 2.36 yrs 2.85 yrs Unrealized gains (losses), net of tax $ (1,438) $ (2,184) Interest expense recorded on these swap transactions was $0.3 million and $0.6 million during the three and six months ended June 30, 2021, respectively. The Company expects million of the unrealized loss to be reclassified from OCI to interest expense during the next three months. This reclassified amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to June 30, 2021. The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the unaudited Consolidated Statements of Income relating to cash flow derivative instruments for the periods presented (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest rate contracts Gain (loss) recognized in OCI, net of tax $ (69) $ (10) $ 341 $ (2,247) (Gain) loss reclassified from OCI to interest expense, net of tax 206 (139) 405 (150) Net change in unrealized gains (losses) on cash flow hedges $ 137 $ (149) $ 746 $ (2,397) The Company pledged $2.1 million in cash to secure its obligation under these contracts as of June 30, 2021, compared to $3.2 million pledged as of December 31, 2020. Interest Rate Lock Commitments Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815, Derivatives and Hedging 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 unaudited 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. Amounts and fair values of mortgage banking derivatives included in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands) As of June 30, 2021 As of December 31, 2020 Notional Fair Notional Fair Location Amount Value Amount Value Derivatives with positive fair value Interest rate lock commitments Other assets $ 25,373 $ 496 $ 45,004 $ 1,201 Forward sales commitments Other assets 172 3 978 32 Mortgage banking derivatives recorded in other assets $ 25,545 $ 499 $ 45,982 $ 1,233 Derivatives with negative fair value Interest rate lock commitments Other liabilities $ 172 $ 3 $ 118 $ 1 Forward sales commitments Other liabilities 42,043 1,361 84,964 2,662 Mortgage banking derivatives recorded in other liabilities $ 42,215 $ 1,364 $ 85,082 $ 2,663 Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Location 2021 2020 2021 2020 Net gains (losses) related to Interest rate lock commitments Mortgage revenue $ 493 $ 2,213 $ 965 $ 7,062 Forward sales commitments Mortgage revenue (1,358) (4,778) (2,178) (11,825) Net gains (losses) $ (865) $ (2,565) $ (1,213) $ (4,763) The impact of the net gains or losses on derivative financial instruments related to interest rate lock commitments issued to residential loan customers for loans that will be held for sale and forward sales commitments to sell residential mortgage loans to loan investors are almost entirely offset by a corresponding change in the fair value of loans held for sale. 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 equal and offsetting derivative agreements with a third-party dealer. These contracts support variable rate, commercial loan relationships totaling 31, 2020, 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 recorded in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands) As of June 30, 2021 Derivative Asset Derivative Liability Notional Fair Notional Fair Amount Value Amount Value Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 326,513 $ 21,981 $ 81,964 $ 1,373 Interest rate swaps – pay fixed, receive floating 81,964 1,373 326,513 21,981 Total derivatives not designated as hedging instruments $ 408,477 $ 23,354 $ 408,477 $ 23,354 As of December 31, 2020 Derivative Asset Derivative Liability Notional Fair Notional Fair Amount Value Amount Value Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 394,954 $ 32,685 $ — $ — Interest rate swaps – pay fixed, receive floating — — 394,954 32,685 Total derivatives not designated as hedging instruments $ 394,954 $ 32,685 $ 394,954 $ 32,685 Changes in fair value of these derivative assets and liabilities are recorded in non-interest expense in the unaudited Consolidated Statements of Income and summarized as follows (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Location 2021 2020 2021 2020 Interest rate swaps Pay floating, receive fixed Non-interest expense $ 1,264 $ 2,861 $ (9,331) $ 26,339 Pay fixed, receive floating Non-interest expense (1,264) (2,861) 9,331 (26,339) Net change in fair value of interest rate swaps $ — $ — $ — $ — The Company pledged $28.3 million in cash to secure its obligation under these contracts as of June 30, 2021, compared to $36.0 million pledged as of December 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 11: 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. Debt Securities Available for Sale Debt securities classified as available for sale are reported at fair value utilizing Level 2 measurements. 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 measurements. As applicable, for mutual funds, unadjusted quoted prices in active markets for identical assets are utilized to determine fair value 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 Loans held for sale are reported at fair value utilizing Level 2 measurements. The fair value of the mortgage loans held for sale are measured using observable quoted market or contract prices or market price equivalents and are classified as Level 2. Derivative Assets and Derivative Liabilities Derivative assets and derivative liabilities are reported at fair value utilizing Level 2 measurements. Fair values of derivative assets and liabilities are determined based on prices that are obtained from a third-party which uses observable market inputs. Derivative assets and liabilities are classified as Level 2. The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2021, and December 31, 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of June 30, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 211,893 $ — $ 211,893 Obligations of U.S. government corporations and agencies — 50,998 — 50,998 Obligations of states and political subdivisions — 301,342 — 301,342 Commercial mortgage-backed securities — 514,052 — 514,052 Residential mortgage-backed securities — 1,842,194 — 1,842,194 Asset-backed securities — 246,997 — 246,997 Corporate debt securities — 297,041 — 297,041 Equity securities — 13,950 — 13,950 Loans held for sale — 17,834 — 17,834 Derivative assets — 23,853 — 23,853 Derivative liabilities — 26,730 — 26,730 As of December 31, 2020 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 27,837 $ — $ 27,837 Obligations of U.S. government corporations and agencies — 69,519 — 69,519 Obligations of states and political subdivisions — 304,711 — 304,711 Commercial mortgage-backed securities — 418,616 — 418,616 Residential mortgage-backed securities — 1,368,315 — 1,368,315 Corporate debt securities — 72,189 — 72,189 Equity securities — 5,530 — 5,530 Loans held for sale — 42,813 — 42,813 Derivative assets — 33,918 — 33,918 Derivative liabilities — 38,403 — 38,403 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. 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 as of June 30, 2021 and December 31, 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of June 30, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually $ — $ — $ 3,878 $ 3,878 OREO — — 51 51 Bank property held for sale — — 7,379 7,379 As of December 31, 2020 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually $ — $ — $ 2,771 $ 2,771 OREO — — 106 106 Bank property held for sale — — 10,676 10,676 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) Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range June 30, 2021: Estimate Techniques Input (Weighted Average) Loans evaluated individually $ 3,878 Appraisal of collateral Appraisal adjustments -17.0 % to -100.0 % (-53.7) % OREO 51 Appraisal of collateral Appraisal adjustments -33.0 % to -100.0 % (-67.9) % Bank property held for sale 7,379 Appraisal of collateral or real estate listing price Appraisal adjustments -6.2 % to -64.9 % (-38.5) % December 31, 2020: Loans evaluated individually $ 2,771 Appraisal of collateral Appraisal adjustments -30.0 % to -100.0 % (-37.0) % OREO 106 Appraisal of collateral Appraisal adjustments -25.0 % to -100.0 % (-54.5) % Bank property held for sale 10,676 Appraisal of collateral or real estate listing price Appraisal adjustments -6.2 % to -64.9 % (-42.8) % Estimated fair values of financial instruments that are reported at amortized cost in the Company’s unaudited 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 June 30, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets Level 1 inputs: Cash and cash equivalents $ 920,810 $ 920,810 $ 688,537 $ 688,537 Level 2 inputs: Accrued interest receivable 32,689 32,689 33,240 33,240 Level 3 inputs: Portfolio loans, net 7,090,240 7,161,247 6,713,129 6,755,425 Mortgage servicing rights 10,153 12,187 10,912 11,107 Other servicing rights 1,573 2,084 1,434 1,966 Financial liabilities Level 2 inputs: Time deposits $ 1,115,596 $ 1,121,554 $ 1,119,348 $ 1,132,107 Securities sold under agreements to repurchase 207,266 207,266 175,614 175,614 Short-term borrowings 30,168 30,169 4,658 4,661 Long-term debt 52,409 52,532 4,757 5,014 Junior subordinated debt owed to unconsolidated trusts 71,551 62,141 71,468 59,943 Accrued interest payable 3,013 3,013 3,401 3,401 Level 3 inputs: Senior notes, net of unamortized issuance costs 39,876 40,900 39,809 40,104 Subordinated notes, net of unamortized issuance costs 182,503 184,725 182,226 187,697 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 12: Earnings Per Common Share Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding, which include deferred stock units 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 and restricted stock units were vested. Earnings per common share have been computed as follows (dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 29,766 $ 25,806 $ 67,582 $ 41,170 Shares: Weighted average common shares outstanding 55,050,071 54,489,403 54,762,563 54,575,595 Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method 680,812 215,870 622,379 231,575 Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation 55,730,883 54,705,273 55,384,942 54,807,170 Basic earnings per common share $ 0.54 $ 0.47 $ 1.23 $ 0.75 Diluted earnings per common share $ 0.53 $ 0.47 $ 1.22 $ 0.75 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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Anti-dilutive common stock equivalents Options — 39,525 — 39,525 RSU and DSU awards — 367,468 121,698 367,121 PSU awards 86,080 — 100,482 — Total anti-dilutive common stock equivalents 86,080 406,993 222,180 406,646 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss). | Note 13: Accumulated Other Comprehensive Income (Loss) The following tables represent changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods below (dollars in thousands) Three Months Ended June 30, 2021 2020 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Unrealized gains (losses) on debt securities available for sale Balance at beginning of period $ 7,547 $ (2,151) $ 5,396 $ 49,722 $ (14,173) $ 35,549 Unrealized holding gains (losses) on debt securities available for sale, net 9,469 (2,700) 6,769 5,857 (1,670) 4,187 Amounts reclassified from accumulated other comprehensive income, net (3) 1 (2) (143) 41 (102) Balance at end of period $ 17,013 $ (4,850) $ 12,163 $ 55,436 $ (15,802) $ 39,634 Unrealized gains (losses) on cash flow hedges Balance at beginning of period $ (2,203) $ 628 $ (1,575) $ (3,424) $ 976 $ (2,448) Unrealized holding gains (losses) on cash flow hedges, net (97) 28 (69) (14) 4 (10) Amounts reclassified from accumulated other comprehensive income, net 288 (82) 206 (195) 56 (139) Balance at end of period $ (2,012) $ 574 $ (1,438) $ (3,633) $ 1,036 $ (2,597) Total accumulated other comprehensive income (loss) $ 15,001 $ (4,276) $ 10,725 $ 51,803 $ (14,766) $ 37,037 Six Months Ended June 30, 2021 2020 Before Tax Tax Effect Net of Tax 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 $ 21,192 $ (6,032) $ 15,160 Unrealized holding gains (losses) on debt securities available for sale, net (32,603) 9,293 (23,310) 35,943 (10,259) 25,684 Amounts reclassified from accumulated other comprehensive income, net (28) 8 (20) (1,699) 489 (1,210) Balance at end of period $ 17,013 $ (4,850) $ 12,163 $ 55,436 $ (15,802) $ 39,634 Unrealized gains (losses) on cash flow hedges Balance at beginning of period $ (3,055) $ 871 $ (2,184) $ (280) $ 80 $ (200) Unrealized holding gains (losses) on cash flow hedges, net 477 (136) 341 (3,143) 896 (2,247) Amounts reclassified from accumulated other comprehensive income, net 566 (161) 405 (210) 60 (150) Balance at end of period $ (2,012) $ 574 $ (1,438) $ (3,633) $ 1,036 $ (2,597) Total accumulated other comprehensive income (loss) $ 15,001 $ (4,276) $ 10,725 $ 51,803 $ (14,766) $ 37,037 |
Operating Segments and Related
Operating Segments and Related Information | 6 Months Ended |
Jun. 30, 2021 | |
Operating Segments and Related Information | |
Operating Segments and Related Information | Note 14: Operating Segments and Related Information The Company has three reportable operating segments: Banking, Remittance Processing, and Wealth Management. 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 through its banking center in Indianapolis, Indiana. Banking services for Busey Bank and GSB are aggregated into the Banking operating segment as they have similar operations and activities. The Remittance Processing operating segment provides solutions for online bill payments, lockbox, and walk-in payments. 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 for Busey Bank and GSB are aggregated into the Wealth Management operating segment as they have similar operations and activities. The Company’s three operating segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. The “other” category consists of the Parent Company, First Busey Risk Management, and the elimination of intercompany transactions. 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 Note 1. Significant Accounting Policies ” to the Company’s 2020 Annual Report. The Company accounts for intersegment revenue and transfers at current market value. Following is a summary of selected financial information for the Company’s operating segments (dollars in thousands) Goodwill Total Assets As of As of June 30, December 31, June 30, December 31, 2021 2020 2021 2020 Operating segment Banking $ 294,421 $ 288,436 $ 12,301,878 $ 10,462,673 Remittance Processing 8,992 8,992 46,761 46,553 Wealth Management 14,108 14,108 63,529 46,504 Other — — 3,281 (11,683) Consolidated total $ 317,521 $ 311,536 $ 12,415,449 $ 10,544,047 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net interest income Banking $ 68,250 $ 73,318 $ 136,705 $ 144,891 Remittance Processing 21 19 41 38 Wealth Management — — — — Other (3,729) (2,524) (7,311) (4,683) Total net interest income $ 64,542 $ 70,813 $ 129,435 $ 140,246 Non-interest income Banking $ 14,938 $ 14,026 $ 27,822 $ 27,194 Remittance Processing 4,809 3,962 9,670 8,031 Wealth Management 13,000 10,310 25,587 22,019 Other 264 (334) 1,377 (1,763) Total non-interest income $ 33,011 $ 27,964 $ 64,456 $ 55,481 Non-interest expense Banking $ 48,421 $ 41,659 $ 90,512 $ 90,174 Remittance Processing 4,277 3,243 8,567 6,146 Wealth Management 6,717 6,254 13,282 13,228 Other 3,210 1,912 4,763 4,034 Total non-interest expense $ 62,625 $ 53,068 $ 117,124 $ 113,582 Income before income taxes Banking $ 36,467 $ 32,794 $ 82,511 $ 51,804 Remittance Processing 553 738 1,144 1,923 Wealth Management 6,283 4,056 12,305 8,791 Other (6,675) (4,770) (10,697) (10,480) Total income before income taxes $ 36,628 $ 32,818 $ 85,263 $ 52,038 Net income Banking $ 29,238 $ 25,985 $ 64,766 $ 40,909 Remittance Processing 401 528 830 1,388 Wealth Management 4,884 3,082 9,566 6,681 Other (4,757) (3,789) (7,580) (7,808) Total net income $ 29,766 $ 25,806 $ 67,582 $ 41,170 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | Note 15: Leases The Company has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. (dollars in thousands) As of June 30, December 31, 2021 2020 Lease balances Right of use assets $ 8,228 $ 7,714 Lease liabilities 8,280 7,757 Supplemental information Year through which lease terms extend 2031 2032 Weighted average remaining lease term (in years) 5.28 5.93 Weighted average discount rate 2.38 % 2.82 % The following tables represents lease costs and other lease information for the periods presented (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease costs Operating lease costs $ 608 $ 635 $ 1,172 $ 1,255 Variable lease costs 126 131 300 302 Short-term lease costs 16 15 34 30 Total lease cost $ 750 $ 781 $ 1,506 $ 1,587 Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash flows – Fixed payments $ 590 $ 612 $ 1,136 $ 1,223 Operating lease cash flows – Liability reduction 546 534 1,041 1,064 Right of use assets obtained during the period in exchange for operating lease liabilities (1) 1,462 — 1,610 128 (1) The three and six months ended June 30, 2021, include $371 related to a lease obtained in the acquisition of CAC. As of June 30, 2021, the Company was obligated under noncancelable operating leases for office space and other commitments. Rent expense under operating leases, included in net occupancy and equipment expense, was 30, 2021 and 2020. Rent expense under operating leases, included in net occupancy and equipment expense, was Rent commitments were as follows (dollars in thousands) As of June 30, 2021 Rent commitments Remainder of 2021 $ 1,129 2022 1,945 2023 1,724 2024 1,289 2025 1,050 Thereafter 1,708 Amounts representing interest (565) Present value of net future minimum lease payments $ 8,280 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Significant Accounting Policies | |
Nature of operations | Nature of Operations First Busey Corporation, a Nevada corporation organized in 1980, is a $12.4 billion financial holding company headquartered in Champaign, Illinois. Our common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE.” The Company operates and reports its business in three segments: Banking, Remittance Processing, and Wealth Management. The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiaries, Busey Bank and GSB, with banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. The Remittance Processing operating segment provides solutions for online bill payments, lockbox, and walk-in payments through the Company’s subsidiary, FirsTech. 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. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements included in our 2020 Annual Report. These interim unaudited consolidated financial statements serve to update our 2020 Annual Report and may not include all information and notes necessary to constitute a complete set of financial statements. We prepared these unaudited consolidated financial statements in conformity with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the current period presentation. These reclassifications did not have a material impact on our consolidated financial condition or results of operations. In our opinion, the unaudited consolidated financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. |
COVID-19 | COVID-19 First Busey has continued to operate as an essential community resource during these challenging and unprecedented times. Federal bank regulatory agencies, along with their state counterparts, have issued a steady stream of guidance responding to the COVID-19 pandemic and have taken a number of steps to help banks navigate the pandemic and mitigate its impact. The Company remains vigilant as the negative impacts of COVID-19, such as further margin compression and a deterioration in asset quality, could impact future quarters. As part of the CARES Act, Congress appropriated approximately $349 billion for the creation of the PPP and then authorized a second phase for an additional $310 billion in PPP loans. The program provided payroll assistance for the nation’s nearly 30 million small businesses—and select nonprofits—in the form of government-guaranteed low-interest loans from the SBA. On December 27, 2020, the Economic Aid Act extended the authority to make PPP loans through March 31, 2021, and revised certain PPP requirements. On March 30, 2021, the President signed the PPP Extension Act of 2021, which extended the PPP application deadline to May 31, 2021, or until funding was exhausted, which occurred on May 28, 2021. First Busey served as a bridge for these programs, actively helping existing and new business clients sign up for this important financial resource. The following table summarizes First Busey’s PPP loans as of June 30, 2021, (dollars in thousands) CARES Economic Aid PPP Loan Act Act Totals Busey Bank customers with PPP loans processed 4,569 2,474 7,043 PPP loans originated by Busey Bank $ 749,429 $ 296,346 $ 1,045,775 GSB customers with PPP loans acquired 26 266 292 PPP loans acquired from GSB $ 15,783 $ 27,694 $ 43,477 Customers with PPP loans outstanding (1) 581 2,523 3,104 PPP loans outstanding (1) $ 93,455 $ 306,249 $ 399,704 PPP loans outstanding, amortized cost (1) 93,099 297,296 390,395 PPP loan balance forgiveness: (1) Received $ 667,796 $ 17,788 $ 685,584 Balances submitted to the SBA for forgiveness 18,652 2,239 20,891 (1) Consolidated totals include Busey Bank and GSB. |
Use of Estimates | Use of Estimates In preparing the accompanying unaudited 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 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 investment securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report were issued. On July 27, 2021, the Company announced its Personal Banking Transformation Plan which includes plans to close and consolidate Busey Bank banking centers. In addition, the Company announced plans to consolidate GSB banking centers, with the banking centers in connection with the integration of the acquisition. Each of these banking center closures is expected to occur in the fourth quarter of 2021. There were no other significant subsequent events for the quarter ended June 30, 2021, through the filing date of these unaudited consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Significant Accounting Policies | |
Summary of Paycheck Protection Program loans | CARES Economic Aid PPP Loan Act Act Totals Busey Bank customers with PPP loans processed 4,569 2,474 7,043 PPP loans originated by Busey Bank $ 749,429 $ 296,346 $ 1,045,775 GSB customers with PPP loans acquired 26 266 292 PPP loans acquired from GSB $ 15,783 $ 27,694 $ 43,477 Customers with PPP loans outstanding (1) 581 2,523 3,104 PPP loans outstanding (1) $ 93,455 $ 306,249 $ 399,704 PPP loans outstanding, amortized cost (1) 93,099 297,296 390,395 PPP loan balance forgiveness: (1) Received $ 667,796 $ 17,788 $ 685,584 Balances submitted to the SBA for forgiveness 18,652 2,239 20,891 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
CAC | |
Schedule of fair value estimates of assets acquired and liabilities assumed | The following table presents the estimated fair value of CAC’s assets acquired and liabilities assumed as of May 31, 2021 (dollars in thousands) : Fair Value Assets acquired Cash and cash equivalents $ 307,339 Securities 702,367 Portfolio loans, net of ACL 430,491 Premises and equipment 17,034 Other intangible assets 17,340 Mortgage servicing rights 629 Other assets 8,178 Total assets acquired 1,483,378 Liabilities assumed Deposits 1,324,396 Other borrowings 16,651 Other liabilities 18,853 Total liabilities assumed 1,359,900 Net assets acquired $ 123,478 Consideration paid: Cash $ 70,358 Common stock 59,105 Total consideration paid $ 129,463 Goodwill $ 5,985 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Securities | |
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 gains and losses, and fair values of debt securities summarized by major category (dollars in thousands) As of June 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses ACL Value Debt securities available for sale U.S. Treasury securities $ 212,022 $ 150 $ (279) $ — $ 211,893 Obligations of U.S. government corporations and agencies 49,528 1,470 — — 50,998 Obligations of states and political subdivisions 292,221 9,634 (513) — 301,342 Commercial mortgage-backed securities 513,067 6,528 (5,543) — 514,052 Residential mortgage-backed securities 1,837,271 16,875 (11,952) — 1,842,194 Asset-backed securities 246,998 179 (180) — 246,997 Corporate debt securities 296,397 1,457 (813) — 297,041 Total debt securities available for sale $ 3,447,504 $ 36,293 $ (19,280) $ — $ 3,464,517 As of December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses ACL Value Debt securities available for sale U.S. Treasury securities $ 27,481 $ 356 $ — $ — $ 27,837 Obligations of U.S. government corporations and agencies 67,406 2,162 (49) — 69,519 Obligations of states and political subdivisions 292,940 11,779 (8) — 304,711 Commercial mortgage-backed securities 408,716 10,212 (312) — 418,616 Residential mortgage-backed securities 1,344,047 24,571 (303) — 1,368,315 Corporate debt securities 70,953 1,237 (1) — 72,189 Total debt securities available for sale $ 2,211,543 $ 50,317 $ (673) — $ 2,261,187 |
Schedule of amortized cost and fair value of debt securities available for sale and held to maturity by contractual maturity | All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands) As of June 30, 2021 Amortized Fair Cost Value Debt securities available for sale Due in one year or less $ 122,809 $ 123,502 Due after one year through five years 573,422 579,219 Due after five years through ten years 398,111 407,150 Due after ten years 2,353,162 2,354,646 Total debt securities available for sale $ 3,447,504 $ 3,464,517 |
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) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Realized gains and losses on sales of debt securities Gross security gains $ 499 $ 146 $ 524 $ 1,707 Gross security (losses) (405) (3) (405) (8) Net gains (losses) on sales of debt securities (1) $ 94 $ 143 $ 119 $ 1,699 (1) Net gains (losses) on sales of securities reported on the unaudited Consolidated Statements of Income includes sales 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 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 June 30, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Debt securities available for sale U.S. Treasury securities $ 150,811 $ (279) $ — $ — $ 150,811 $ (279) Obligations of states and political subdivisions 48,579 (513) — — 48,579 (513) Commercial mortgage-backed securities 322,082 (5,543) — — 322,082 (5,543) Residential mortgage-backed securities 1,073,263 (11,948) 344 (4) 1,073,607 (11,952) Asset-backed securities 98,703 (180) — — 98,703 (180) Corporate debt securities 200,076 (813) — — 200,076 (813) Total temporarily impaired securities $ 1,893,514 $ (19,276) $ 344 $ (4) $ 1,893,858 $ (19,280) As of December 31, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Debt securities available for sale Obligations of U.S. government corporations and agencies $ — $ — $ 4,957 $ (49) $ 4,957 $ (49) Obligations of states and political subdivisions 762 (8) — — 762 (8) Commercial mortgage-backed securities 129,655 (312) — — 129,655 (312) Residential mortgage-backed securities 89,997 (300) 139 (3) 90,136 (303) Corporate debt securities 1,499 (1) — — 1,499 (1) Total temporarily impaired securities $ 221,913 $ (621) $ 5,096 $ (52) $ 227,009 $ (673) |
Portfolio Loans (Tables)
Portfolio Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Portfolio Loans | |
Distribution of portfolio loans | Distributions of portfolio loans are as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Portfolio loans Commercial $ 2,054,550 $ 2,014,576 Commercial real estate 2,920,312 2,892,535 Real estate construction 500,599 461,786 Retail real estate 1,525,810 1,407,852 Retail other 184,379 37,428 Total portfolio loans $ 7,185,650 $ 6,814,177 ACL (95,410) (101,048) Portfolio loans, net $ 7,090,240 $ 6,713,129 |
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 June 30, 2021 Special Substandard Pass Watch Mention Substandard Non-accrual Portfolio loans Commercial $ 1,816,456 $ 131,361 $ 76,706 $ 19,349 $ 10,678 Commercial real estate 2,446,143 379,546 67,179 18,679 8,765 Real estate construction 482,718 15,473 8 2,400 — Retail real estate 1,496,677 13,878 2,342 4,672 8,241 Retail other 184,338 — — — 41 Total portfolio loans $ 6,426,332 $ 540,258 $ 146,235 $ 45,100 $ 27,725 As of December 31, 2020 Special Substandard Pass Watch Mention Substandard Non-accrual Portfolio loans Commercial $ 1,768,755 $ 136,948 $ 72,447 $ 27,903 $ 8,523 Commercial real estate 2,393,372 383,277 75,486 34,897 5,503 Real estate construction 434,681 24,481 77 2,546 1 Retail real estate 1,382,616 10,264 2,471 3,702 8,799 Retail other 37,324 — — — 104 Total portfolio loans $ 6,016,748 $ 554,970 $ 150,481 $ 69,048 $ 22,930 |
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 June 30, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2021 2020 2019 2018 2017 Prior loans Total Commercial Pass $ 550,732 $ 363,044 $ 118,095 $ 94,495 $ 79,018 $ 129,150 $ 481,922 $ 1,816,456 Watch 11,051 7,412 20,256 5,597 8,415 9,830 68,800 131,361 Special 2,739 2,650 2,864 4,845 6,920 18,111 38,577 76,706 Substandard 3,794 4,588 3,504 1,807 1,338 80 4,238 19,349 Substandard non-accrual 4,356 469 1,591 — 2,144 118 2,000 10,678 Total commercial 572,672 378,163 146,310 106,744 97,835 157,289 595,537 2,054,550 Commercial real estate Pass 420,841 691,476 441,952 313,315 269,126 291,896 17,537 2,446,143 Watch 39,642 53,762 130,096 84,131 28,486 41,473 1,956 379,546 Special 22,415 7,389 6,780 9,907 10,285 9,794 609 67,179 Substandard 2,134 9,898 2,465 2,397 25 1,760 — 18,679 Substandard non-accrual 78 775 1,233 821 4,004 1,854 — 8,765 Total commercial real estate 485,110 763,300 582,526 410,571 311,926 346,777 20,102 2,920,312 Real estate construction Pass 99,885 183,938 148,531 34,750 957 1,277 13,380 482,718 Watch 2,330 10,174 886 283 1,659 141 — 15,473 Special — — 8 — — — — 8 Substandard — 2,400 — — — — — 2,400 Substandard non-accrual — — — — — — — — Total real estate construction 102,215 196,512 149,425 35,033 2,616 1,418 13,380 500,599 Retail real estate Pass 335,450 246,690 133,617 110,169 110,300 349,052 211,399 1,496,677 Watch 2,925 2,415 2,002 1,515 305 388 4,328 13,878 Special 377 31 — — — 1,934 — 2,342 Substandard 730 967 73 98 235 2,485 84 4,672 Substandard non-accrual 339 161 74 536 1,200 4,673 1,258 8,241 Total retail real estate 339,821 250,264 135,766 112,318 112,040 358,532 217,069 1,525,810 Retail other Pass 22,532 28,477 35,134 23,894 13,223 4,535 56,543 184,338 Watch — — — — — — — — Special — — — — — — — — Substandard — — — — — — — — Substandard non-accrual — 13 7 5 14 2 — 41 Total retail other 22,532 28,490 35,141 23,899 13,237 4,537 56,543 184,379 Total portfolio loans $ 1,522,350 $ 1,616,729 $ 1,049,168 $ 688,565 $ 537,654 $ 868,553 $ 902,631 $ 7,185,650 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2020 2019 2018 2017 2016 Prior loans Total Commercial Pass $ 812,536 $ 158,307 $ 107,565 $ 93,190 $ 61,847 $ 79,970 $ 455,340 $ 1,768,755 Watch 16,544 22,247 14,954 13,724 2,577 10,943 55,959 136,948 Special Mention 6,402 2,671 2,069 7,164 6,763 13,733 33,645 72,447 Substandard 7,772 3,791 2,371 1,939 819 1,233 9,978 27,903 Substandard non-accrual 150 3,045 451 2,168 641 68 2,000 8,523 Total commercial 843,404 190,061 127,410 118,185 72,647 105,947 556,922 2,014,576 Commercial real estate Pass 717,559 503,977 360,573 384,843 180,555 227,068 18,797 2,393,372 Watch 88,297 110,526 90,412 33,734 32,887 27,023 398 383,277 Special Mention 16,490 8,858 10,490 10,505 7,102 21,808 233 75,486 Substandard 17,445 4,166 1,491 7,812 2,111 1,377 495 34,897 Substandard non-accrual 1,091 776 821 882 286 1,647 — 5,503 Total commercial real estate 840,882 628,303 463,787 437,776 222,941 278,923 19,923 2,892,535 Real estate construction Pass 179,232 171,663 64,025 1,468 761 1,444 16,088 434,681 Watch 18,485 3,657 337 1,838 164 24,481 Special Mention 67 10 — — — — — 77 Substandard 2,400 — — — 146 — — 2,546 Substandard non-accrual — — — — — 1 — 1 Total real estate construction 200,184 175,330 64,362 3,306 1,071 1,445 16,088 461,786 Retail real estate Pass 319,302 162,711 135,065 136,427 140,600 257,147 231,364 1,382,616 Watch 2,715 2,053 1,396 349 579 233 2,939 10,264 Special Mention 509 — — — 1,962 — — 2,471 Substandard 899 96 56 26 727 1,631 267 3,702 Substandard non-accrual 687 78 646 1,147 233 4,815 1,193 8,799 Total retail real estate 324,112 164,938 137,163 137,949 144,101 263,826 235,763 1,407,852 Retail other Pass 8,357 9,430 5,600 2,516 691 440 10,290 37,324 Watch — — — — — — — — Special Mention — — — — — — — — Substandard — — — — — — — — Substandard non-accrual 14 7 5 15 5 57 1 104 Total retail other 8,371 9,437 5,605 2,531 696 497 10,291 37,428 Total portfolio loans $ 2,216,953 $ 1,168,069 $ 798,327 $ 699,747 $ 441,456 $ 650,638 $ 838,987 $ 6,814,177 |
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 a non-accrual status, is as follows (dollars in thousands) As of June 30, 2021 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 241 $ — $ 2 $ 10,678 Commercial real estate 330 — — 8,765 Real estate construction — 426 — — Retail real estate 2,014 814 587 8,241 Retail other 54 9 1 41 Total past due and non-accrual loans $ 2,639 $ 1,249 $ 590 $ 27,725 As of December 31, 2020 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 243 $ — $ — $ 8,523 Commercial real estate — — — 5,503 Real estate construction 237 235 — 1 Retail real estate 6,248 400 1,305 8,799 Retail other 66 149 66 104 Total past due and non-accrual loans $ 6,794 $ 784 $ 1,371 $ 22,930 |
Summary of TDR loans | A summary of TDR loans is as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Performing TDR loans: In compliance with modified terms $ 2,518 $ 3,814 30 – — 15 Non-performing TDR loans 1,314 1,249 Total TDR loans $ 3,832 $ 5,078 |
Schedule of details of impaired loans, segregated by category | As of June 30, 2021 Unpaid Amortized Contractual Cost Amortized Total Average Principal with No Cost Amortized Related Amortized Balance Allowance with Allowance Cost Allowance Cost Loans evaluated on an individual basis Commercial $ 14,624 $ 2,237 $ 8,348 $ 10,585 $ 4,470 $ 8,156 Commercial real estate 9,647 8,360 — 8,360 — 7,683 Real estate construction 283 283 — 283 — 395 Retail real estate 4,295 3,911 25 3,936 25 4,933 Retail other — — — — — — Total loans evaluated individually $ 28,849 $ 14,791 $ 8,373 $ 23,164 $ 4,495 $ 21,167 As of December 31, 2020 Unpaid Amortized Contractual Cost Amortized Total Average Principal with No Cost Amortized Related Amortized Balance Allowance with Allowance Cost Allowance Cost Loans evaluated on an individual basis Commercial $ 16,771 $ 4,001 $ 4,371 $ 8,372 $ 1,600 $ 7,920 Commercial real estate 7,406 6,067 — 6,067 — 9,349 Real estate construction 292 292 — 292 — 581 Retail real estate 5,873 5,490 25 5,515 25 7,439 Retail other — — — — — 10 Total loans evaluated individually $ 30,342 $ 15,850 $ 4,396 $ 20,246 $ 1,625 $ 25,299 |
Schedule of activity on the allowance for loan losses | The following tables detail activity in the ACL. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands) As of and for the Three Months Ended June 30, 2021 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL beginning balance $ 23,025 $ 43,306 $ 6,879 $ 19,978 $ 755 $ 93,943 Day 1 PCD 3,546 336 — 129 167 4,178 Provision for credit losses (1,420) (3,390) 671 404 2,035 (1,700) Charged-off (1,000) (317) — (157) (64) (1,538) Recoveries 205 39 49 151 83 527 ACL ending balance $ 24,356 $ 39,974 $ 7,599 $ 20,505 $ 2,976 $ 95,410 As of and for the Six Months Ended June 30, 2021 Commercial Real Estate Retail Commercial Real Estate Construction Real Estate Retail Other Total ACL beginning balance $ 23,866 $ 46,230 $ 8,193 $ 21,992 $ 767 $ 101,048 Day 1 PCD 3,546 336 — 129 167 4,178 Provision for credit losses (2,084) (6,085) (579) (1,873) 2,125 (8,496) Charged-off (1,262) (620) (209) (160) (251) (2,502) Recoveries 290 113 194 417 168 1,182 ACL ending balance $ 24,356 $ 39,974 $ 7,599 $ 20,505 $ 2,976 $ 95,410 As of and for the Three Months Ended June 30, 2020 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL beginning balance $ 22,725 $ 35,967 $ 7,193 $ 17,454 $ 1,045 $ 84,384 Provision for credit losses 2,473 6,861 574 2,981 2 12,891 Charged-off (1,140) (165) — (292) (105) (1,702) Recoveries 88 17 25 262 81 473 ACL ending balance $ 24,146 $ 42,680 $ 7,792 $ 20,405 $ 1,023 $ 96,046 As of and for the Six Months Ended June 30, 2020 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total Beginning balance, prior to adoption of ASC $ 18,291 $ 21,190 $ 3,204 $ 10,495 $ 568 $ 53,748 Adoption of ASC 715 9,306 2,954 3,292 566 16,833 Provision for credit losses 8,146 13,387 1,463 7,018 93 30,107 Charged-off (3,182) (1,264) — (1,000) (404) (5,850) Recoveries 176 61 171 600 200 1,208 ACL ending balance $ 24,146 $ 42,680 $ 7,792 $ 20,405 $ 1,023 $ 96,046 |
Schedule of allowance for loan losses and recorded investments in portfolio loans, by category | The following table presents the ACL and amortized cost of portfolio loans by category (dollars in thousands) As of June 30, 2021 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL Ending balance attributed to: Loans individually evaluated for impairment $ 4,470 $ — $ — $ 25 $ — $ 4,495 Loans collectively evaluated for impairment 19,886 39,974 7,599 20,480 2,976 90,915 ACL ending balance $ 24,356 $ 39,974 $ 7,599 $ 20,505 $ 2,976 $ 95,410 Loans Loans individually evaluated for impairment $ 10,585 $ 8,360 $ 283 $ 3,936 $ — $ 23,164 Loans collectively evaluated for impairment 2,043,965 2,911,952 500,316 1,521,874 184,379 7,162,486 Loans ending balance $ 2,054,550 $ 2,920,312 $ 500,599 $ 1,525,810 $ 184,379 $ 7,185,650 As of December 31, 2020 Commercial Real Estate Retail Real Commercial Real Estate Construction Estate Retail Other Total ACL Ending balance attributed to: Loans individually evaluated for impairment $ 1,600 $ — $ — $ 25 $ — $ 1,625 Loans collectively evaluated for impairment 22,266 46,230 8,193 21,967 767 99,423 ACL ending balance $ 23,866 $ 46,230 $ 8,193 $ 21,992 $ 767 $ 101,048 Loans Loans individually evaluated for impairment $ 8,372 $ 6,067 $ 292 $ 5,515 $ — $ 20,246 Loans collectively evaluated for impairment 2,006,204 2,886,468 461,494 1,402,337 37,428 6,793,931 Loans ending balance $ 2,014,576 $ 2,892,535 $ 461,786 $ 1,407,852 $ 37,428 $ 6,814,177 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits | |
Schedule of composition of deposits | The composition of deposits is as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Deposits Demand deposits, noninterest-bearing $ 3,186,650 $ 2,552,039 Interest-bearing transaction deposits 2,722,053 2,263,093 Saving deposits and money market deposits 3,312,818 2,743,369 Time deposits 1,115,596 1,119,348 Total deposits $ 10,337,117 $ 8,677,849 Additional information about our deposits is as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Brokered savings deposits and money market deposits $ 2,002 $ 2,251 Brokered time deposits 261 5,257 Aggregate amount of time deposits with a minimum denomination of $100,000 377,832 568,735 Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 171,460 192,563 |
Schedule of maturities of time deposits | As of June 30, 2021, the scheduled maturities of time deposits are as follows (dollars in thousands) As of June 30, 2021 Time deposits by schedule of maturities July 1, 2021 – June 30, 2022 $ 773,787 July 1, 2022 – June 30, 2023 193,316 July 1, 2023 – June 30, 2024 100,287 July 1, 2024 – June 30, 2025 23,990 July 1, 2025 – June 30, 2026 13,786 Thereafter 10,430 Total time deposits $ 1,115,596 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings | |
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 June 30, December 31, 2021 2020 Securities sold under agreements to repurchase $ 207,266 $ 175,614 Weighted average rate for securities sold under agreements to repurchase 0.12 % 0.13 % |
Summary of long-term debt | Short-term borrowings are summarized as follows (dollars in thousands) As of June 30, December 31, 2021 2020 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 $ 5,668 $ 4,658 Revolving line of credit 12,500 — Term Loan, current portion due within 12 months 12,000 — Total short-term debt $ 30,168 $ 4,658 Federal funds purchased are short-term borrowings that generally mature between one . The Company had Long-term debt is summarized as follows (dollars in thousands) As of June 30, December 31, 2021 2020 Long-term debt Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock $ 4,409 $ 4,757 Term Loan 48,000 — Total long-term debt $ 52,409 $ 4,757 |
Schedule of unamortized debt issuance cost | Unamortized debt issuance costs related to senior notes and subordinated notes are presented in the following table (dollars in thousands) As of June 30, December 31, 2021 2020 Unamortized debt issuance costs Senior notes issued in 2017 $ 124 $ 191 Subordinated notes issued in 2017 600 651 Subordinated notes issued in 2020 1,897 2,123 Total unamortized debt issuance costs $ 2,621 $ 2,965 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory Capital | |
Schedule of applicable holding company and bank regulatory capital requirements | The following tables summarize regulatory capital requirements applicable to the holding company its subsidiary banks (dollars in thousands) As of June 30, 2021 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 1,322,889 16.41 % $ 644,804 8.00 % $ 806,004 10.00 % Busey Bank $ 1,200,761 16.22 % $ 592,339 8.00 % $ 740,424 10.00 % GSB $ 113,250 18.20 % $ 49,779 8.00 % $ 62,223 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 1,062,182 13.18 % $ 483,603 6.00 % $ 644,804 8.00 % Busey Bank $ 1,133,213 15.30 % $ 444,254 6.00 % $ 592,339 8.00 % GSB $ 105,472 16.95 % $ 37,334 6.00 % $ 49,779 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 988,182 12.26 % $ 362,702 4.50 % $ 523,903 6.50 % Busey Bank $ 1,133,213 15.30 % $ 333,191 4.50 % $ 481,275 6.50 % GSB $ 105,472 16.95 % $ 28,000 4.50 % $ 40,445 6.50 % Tier 1 Capital (to Average Assets) Consolidated $ 1,062,182 9.62 % $ 441,602 4.00 % N/A N/A Busey Bank $ 1,133,213 10.78 % $ 420,434 4.00 % $ 525,542 5.00 % GSB $ 105,472 7.35 % $ 57,425 4.00 % $ 71,782 5.00 % As of December 31, 2020 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 1,245,997 17.04 % $ 585,015 8.00 % $ 731,269 10.00 % Busey Bank $ 1,131,875 15.50 % $ 584,082 8.00 % $ 730,103 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 983,033 13.44 % $ 438,761 6.00 % $ 585,015 8.00 % Busey Bank $ 1,053,910 14.44 % $ 438,062 6.00 % $ 584,082 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 909,033 12.43 % $ 329,071 4.50 % $ 475,325 6.50 % Busey Bank $ 1,053,910 14.44 % $ 328,546 4.50 % $ 474,567 6.50 % Tier 1 Capital (to Average Assets) Consolidated $ 983,033 9.79 % $ 401,717 4.00 % N/A N/A Busey Bank $ 1,053,910 10.52 % $ 400,581 4.00 % $ 500,727 5.00 % |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-based Compensation | |
Summary of changes in, the Company's stock option awards | A summary of the status of, and changes in, the Company's stock option awards for the six months ended June 30, 2021, follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Shares Price Life Outstanding at beginning of period 39,085 $ 23.53 5.88 Expired (6,379) 23.53 Outstanding at end of period 32,706 $ 23.53 5.38 Exercisable at end of period 32,706 $ 23.53 5.38 |
Summary of changes in the Company's RSU, PSU, and DSU awards | A summary of changes in the Company’s RSU, PSU, and DSU awards for the six months ended June 30, 2021, is as follows: RSU Awards PSU Awards DSU Awards Weighted- Weighted- Weighted- Average Average Average Grant Date Grant Date Grant Date Shares Fair Value Shares (1) Fair Value Shares Fair Value Nonvested at beginning of period 1,017,038 $ 23.87 15,724 $ 16.25 34,263 $ 17.18 Granted 212,426 24.54 99,159 23.91 35,664 24.59 Dividend equivalents earned 22,573 22.82 — — 2,459 22.93 Vested — — — — (1,452) 22.63 Forfeited (19,907) 25.04 (459) 23.48 — — Nonvested at end of period 1,232,130 $ 23.95 114,424 $ 22.86 70,934 $ 20.99 Vested and outstanding at end of period 72,496 $ 24.30 |
Schedule of Stock-based compensation expense | Stock-based compensation expense related to nonvested restricted stock units, deferred stock units, and performance-based restricted stock awards is presented in the table below (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock-based compensation expense RSU awards $ 1,816 $ 924 $ 3,046 $ 2,069 PSU awards 268 — 328 — DSU awards 353 145 511 139 Total stock-based compensation expense $ 2,437 $ 1,069 $ 3,885 $ 2,208 |
Schedule of Unamortized stock-based compensation expense | Unamortized stock-based compensation expense related to nonvested restricted stock units, deferred stock units, and performance-based restricted stock awards is presented in the table below (dollars in thousands) As of June 30, December 31, 2021 2020 Unamortized stock-based compensation expense RSU awards $ 12,094 $ 10,411 PSU awards 1,690 179 DSU awards 660 294 Total unamortized stock-based compensation expense $ 14,444 $ 10,884 Weighted average period over which expense is to be recognized 3.2 yrs 3.0 yrs |
Schedule of shares remaining available for issuance pursuant to authorized plans | Shares Remaining Available for Issuance Pursuant to the Plans 2020 Equity Plan 1,087,266 2021 Employee Stock Purchase Plan 600,000 |
Outstanding Commitments and C_2
Outstanding Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Outstanding Commitments and Contingent Liabilities | |
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 June 30, December 31, 2021 2020 Financial instruments whose contract amounts represent credit risk Commitments to extend credit $ 1,785,205 $ 1,754,370 Standby letters of credit 38,050 38,937 Total commitments $ 1,823,255 $ 1,793,307 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, December 31, 2021 2020 Notional amount $ 70,000 $ 70,000 Weighted average fixed pay rates 1.80 % 1.80 % Weighted average variable 3-month LIBOR receive rates 0.12 % 0.22 % Weighted average maturity, in years 2.36 yrs 2.85 yrs Unrealized gains (losses), net of tax $ (1,438) $ (2,184) |
Interest rate contract | |
Summary of Net gains (losses) relating to these derivative instruments | The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the unaudited Consolidated Statements of Income relating to cash flow derivative instruments for the periods presented (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest rate contracts Gain (loss) recognized in OCI, net of tax $ (69) $ (10) $ 341 $ (2,247) (Gain) loss reclassified from OCI to interest expense, net of tax 206 (139) 405 (150) Net change in unrealized gains (losses) on cash flow hedges $ 137 $ (149) $ 746 $ (2,397) |
Interest rate lock commitments and forward sales commitments | |
Summary of fair values of derivative assets and liabilities recorded in consolidated balance sheet | Amounts and fair values of mortgage banking derivatives included in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands) As of June 30, 2021 As of December 31, 2020 Notional Fair Notional Fair Location Amount Value Amount Value Derivatives with positive fair value Interest rate lock commitments Other assets $ 25,373 $ 496 $ 45,004 $ 1,201 Forward sales commitments Other assets 172 3 978 32 Mortgage banking derivatives recorded in other assets $ 25,545 $ 499 $ 45,982 $ 1,233 Derivatives with negative fair value Interest rate lock commitments Other liabilities $ 172 $ 3 $ 118 $ 1 Forward sales commitments Other liabilities 42,043 1,361 84,964 2,662 Mortgage banking derivatives recorded in other liabilities $ 42,215 $ 1,364 $ 85,082 $ 2,663 |
Summary of Net gains (losses) relating to these derivative instruments | Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Location 2021 2020 2021 2020 Net gains (losses) related to Interest rate lock commitments Mortgage revenue $ 493 $ 2,213 $ 965 $ 7,062 Forward sales commitments Mortgage revenue (1,358) (4,778) (2,178) (11,825) Net gains (losses) $ (865) $ (2,565) $ (1,213) $ (4,763) |
Interest rate swap | |
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 recorded in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands) As of June 30, 2021 Derivative Asset Derivative Liability Notional Fair Notional Fair Amount Value Amount Value Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 326,513 $ 21,981 $ 81,964 $ 1,373 Interest rate swaps – pay fixed, receive floating 81,964 1,373 326,513 21,981 Total derivatives not designated as hedging instruments $ 408,477 $ 23,354 $ 408,477 $ 23,354 As of December 31, 2020 Derivative Asset Derivative Liability Notional Fair Notional Fair Amount Value Amount Value Derivatives not designated as hedging instruments Interest rate swaps – pay floating, receive fixed $ 394,954 $ 32,685 $ — $ — Interest rate swaps – pay fixed, receive floating — — 394,954 32,685 Total derivatives not designated as hedging instruments $ 394,954 $ 32,685 $ 394,954 $ 32,685 |
Summary of Net gains (losses) relating to these derivative instruments | Changes in fair value of these derivative assets and liabilities are recorded in non-interest expense in the unaudited Consolidated Statements of Income and summarized as follows (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Location 2021 2020 2021 2020 Interest rate swaps Pay floating, receive fixed Non-interest expense $ 1,264 $ 2,861 $ (9,331) $ 26,339 Pay fixed, receive floating Non-interest expense (1,264) (2,861) 9,331 (26,339) Net change in fair value of interest rate swaps $ — $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
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 June 30, 2021, and December 31, 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of June 30, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 211,893 $ — $ 211,893 Obligations of U.S. government corporations and agencies — 50,998 — 50,998 Obligations of states and political subdivisions — 301,342 — 301,342 Commercial mortgage-backed securities — 514,052 — 514,052 Residential mortgage-backed securities — 1,842,194 — 1,842,194 Asset-backed securities — 246,997 — 246,997 Corporate debt securities — 297,041 — 297,041 Equity securities — 13,950 — 13,950 Loans held for sale — 17,834 — 17,834 Derivative assets — 23,853 — 23,853 Derivative liabilities — 26,730 — 26,730 As of December 31, 2020 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 27,837 $ — $ 27,837 Obligations of U.S. government corporations and agencies — 69,519 — 69,519 Obligations of states and political subdivisions — 304,711 — 304,711 Commercial mortgage-backed securities — 418,616 — 418,616 Residential mortgage-backed securities — 1,368,315 — 1,368,315 Corporate debt securities — 72,189 — 72,189 Equity securities — 5,530 — 5,530 Loans held for sale — 42,813 — 42,813 Derivative assets — 33,918 — 33,918 Derivative liabilities — 38,403 — 38,403 |
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 as of June 30, 2021 and December 31, 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of June 30, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually $ — $ — $ 3,878 $ 3,878 OREO — — 51 51 Bank property held for sale — — 7,379 7,379 As of December 31, 2020 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually $ — $ — $ 2,771 $ 2,771 OREO — — 106 106 Bank property held for sale — — 10,676 10,676 |
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) Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range June 30, 2021: Estimate Techniques Input (Weighted Average) Loans evaluated individually $ 3,878 Appraisal of collateral Appraisal adjustments -17.0 % to -100.0 % (-53.7) % OREO 51 Appraisal of collateral Appraisal adjustments -33.0 % to -100.0 % (-67.9) % Bank property held for sale 7,379 Appraisal of collateral or real estate listing price Appraisal adjustments -6.2 % to -64.9 % (-38.5) % December 31, 2020: Loans evaluated individually $ 2,771 Appraisal of collateral Appraisal adjustments -30.0 % to -100.0 % (-37.0) % OREO 106 Appraisal of collateral Appraisal adjustments -25.0 % to -100.0 % (-54.5) % Bank property held for sale 10,676 Appraisal of collateral or real estate listing price Appraisal adjustments -6.2 % to -64.9 % (-42.8) % |
Schedule of estimated fair values of financial instruments | Estimated fair values of financial instruments that are reported at amortized cost in the Company’s unaudited 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 June 30, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets Level 1 inputs: Cash and cash equivalents $ 920,810 $ 920,810 $ 688,537 $ 688,537 Level 2 inputs: Accrued interest receivable 32,689 32,689 33,240 33,240 Level 3 inputs: Portfolio loans, net 7,090,240 7,161,247 6,713,129 6,755,425 Mortgage servicing rights 10,153 12,187 10,912 11,107 Other servicing rights 1,573 2,084 1,434 1,966 Financial liabilities Level 2 inputs: Time deposits $ 1,115,596 $ 1,121,554 $ 1,119,348 $ 1,132,107 Securities sold under agreements to repurchase 207,266 207,266 175,614 175,614 Short-term borrowings 30,168 30,169 4,658 4,661 Long-term debt 52,409 52,532 4,757 5,014 Junior subordinated debt owed to unconsolidated trusts 71,551 62,141 71,468 59,943 Accrued interest payable 3,013 3,013 3,401 3,401 Level 3 inputs: Senior notes, net of unamortized issuance costs 39,876 40,900 39,809 40,104 Subordinated notes, net of unamortized issuance costs 182,503 184,725 182,226 187,697 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Schedule of computation of earnings per common share | Earnings per common share have been computed as follows (dollars in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income $ 29,766 $ 25,806 $ 67,582 $ 41,170 Shares: Weighted average common shares outstanding 55,050,071 54,489,403 54,762,563 54,575,595 Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method 680,812 215,870 622,379 231,575 Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation 55,730,883 54,705,273 55,384,942 54,807,170 Basic earnings per common share $ 0.54 $ 0.47 $ 1.23 $ 0.75 Diluted earnings per common share $ 0.53 $ 0.47 $ 1.22 $ 0.75 |
Schedule of shares excluded from computation of diluted earnings per common share | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Anti-dilutive common stock equivalents Options — 39,525 — 39,525 RSU and DSU awards — 367,468 121,698 367,121 PSU awards 86,080 — 100,482 — Total anti-dilutive common stock equivalents 86,080 406,993 222,180 406,646 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | The following tables represent changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods below (dollars in thousands) Three Months Ended June 30, 2021 2020 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Unrealized gains (losses) on debt securities available for sale Balance at beginning of period $ 7,547 $ (2,151) $ 5,396 $ 49,722 $ (14,173) $ 35,549 Unrealized holding gains (losses) on debt securities available for sale, net 9,469 (2,700) 6,769 5,857 (1,670) 4,187 Amounts reclassified from accumulated other comprehensive income, net (3) 1 (2) (143) 41 (102) Balance at end of period $ 17,013 $ (4,850) $ 12,163 $ 55,436 $ (15,802) $ 39,634 Unrealized gains (losses) on cash flow hedges Balance at beginning of period $ (2,203) $ 628 $ (1,575) $ (3,424) $ 976 $ (2,448) Unrealized holding gains (losses) on cash flow hedges, net (97) 28 (69) (14) 4 (10) Amounts reclassified from accumulated other comprehensive income, net 288 (82) 206 (195) 56 (139) Balance at end of period $ (2,012) $ 574 $ (1,438) $ (3,633) $ 1,036 $ (2,597) Total accumulated other comprehensive income (loss) $ 15,001 $ (4,276) $ 10,725 $ 51,803 $ (14,766) $ 37,037 Six Months Ended June 30, 2021 2020 Before Tax Tax Effect Net of Tax 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 $ 21,192 $ (6,032) $ 15,160 Unrealized holding gains (losses) on debt securities available for sale, net (32,603) 9,293 (23,310) 35,943 (10,259) 25,684 Amounts reclassified from accumulated other comprehensive income, net (28) 8 (20) (1,699) 489 (1,210) Balance at end of period $ 17,013 $ (4,850) $ 12,163 $ 55,436 $ (15,802) $ 39,634 Unrealized gains (losses) on cash flow hedges Balance at beginning of period $ (3,055) $ 871 $ (2,184) $ (280) $ 80 $ (200) Unrealized holding gains (losses) on cash flow hedges, net 477 (136) 341 (3,143) 896 (2,247) Amounts reclassified from accumulated other comprehensive income, net 566 (161) 405 (210) 60 (150) Balance at end of period $ (2,012) $ 574 $ (1,438) $ (3,633) $ 1,036 $ (2,597) Total accumulated other comprehensive income (loss) $ 15,001 $ (4,276) $ 10,725 $ 51,803 $ (14,766) $ 37,037 |
Operating Segments and Relate_2
Operating Segments and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Operating Segments and Related Information | |
Summary of information relating to operating segments | Following is a summary of selected financial information for the Company’s operating segments (dollars in thousands) Goodwill Total Assets As of As of June 30, December 31, June 30, December 31, 2021 2020 2021 2020 Operating segment Banking $ 294,421 $ 288,436 $ 12,301,878 $ 10,462,673 Remittance Processing 8,992 8,992 46,761 46,553 Wealth Management 14,108 14,108 63,529 46,504 Other — — 3,281 (11,683) Consolidated total $ 317,521 $ 311,536 $ 12,415,449 $ 10,544,047 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net interest income Banking $ 68,250 $ 73,318 $ 136,705 $ 144,891 Remittance Processing 21 19 41 38 Wealth Management — — — — Other (3,729) (2,524) (7,311) (4,683) Total net interest income $ 64,542 $ 70,813 $ 129,435 $ 140,246 Non-interest income Banking $ 14,938 $ 14,026 $ 27,822 $ 27,194 Remittance Processing 4,809 3,962 9,670 8,031 Wealth Management 13,000 10,310 25,587 22,019 Other 264 (334) 1,377 (1,763) Total non-interest income $ 33,011 $ 27,964 $ 64,456 $ 55,481 Non-interest expense Banking $ 48,421 $ 41,659 $ 90,512 $ 90,174 Remittance Processing 4,277 3,243 8,567 6,146 Wealth Management 6,717 6,254 13,282 13,228 Other 3,210 1,912 4,763 4,034 Total non-interest expense $ 62,625 $ 53,068 $ 117,124 $ 113,582 Income before income taxes Banking $ 36,467 $ 32,794 $ 82,511 $ 51,804 Remittance Processing 553 738 1,144 1,923 Wealth Management 6,283 4,056 12,305 8,791 Other (6,675) (4,770) (10,697) (10,480) Total income before income taxes $ 36,628 $ 32,818 $ 85,263 $ 52,038 Net income Banking $ 29,238 $ 25,985 $ 64,766 $ 40,909 Remittance Processing 401 528 830 1,388 Wealth Management 4,884 3,082 9,566 6,681 Other (4,757) (3,789) (7,580) (7,808) Total net income $ 29,766 $ 25,806 $ 67,582 $ 41,170 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Summary of lease-related balances | The following table summarizes lease-related information and balances the Company reported in its unaudited Consolidated Balance Sheets for the periods presented (dollars in thousands) As of June 30, December 31, 2021 2020 Lease balances Right of use assets $ 8,228 $ 7,714 Lease liabilities 8,280 7,757 Supplemental information Year through which lease terms extend 2031 2032 Weighted average remaining lease term (in years) 5.28 5.93 Weighted average discount rate 2.38 % 2.82 % |
Schedule of lease costs and other lease information | The following tables represents lease costs and other lease information for the periods presented (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease costs Operating lease costs $ 608 $ 635 $ 1,172 $ 1,255 Variable lease costs 126 131 300 302 Short-term lease costs 16 15 34 30 Total lease cost $ 750 $ 781 $ 1,506 $ 1,587 Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash flows – Fixed payments $ 590 $ 612 $ 1,136 $ 1,223 Operating lease cash flows – Liability reduction 546 534 1,041 1,064 Right of use assets obtained during the period in exchange for operating lease liabilities (1) 1,462 — 1,610 128 (1) The three and six months ended June 30, 2021, include $371 related to a lease obtained in the acquisition of CAC. |
Schedule of future undiscounted lease payments | Rent commitments were as follows (dollars in thousands) As of June 30, 2021 Rent commitments Remainder of 2021 $ 1,129 2022 1,945 2023 1,724 2024 1,289 2025 1,050 Thereafter 1,708 Amounts representing interest (565) Present value of net future minimum lease payments $ 8,280 |
Significant Accounting Polici_4
Significant Accounting Policies - Impact of new financial accounting standards (Details) $ in Billions | 6 Months Ended |
Jun. 30, 2021USD ($)segment | |
Significant Accounting Policies | |
Value of company | $ | $ 12.4 |
Number of operating segments | segment | 3 |
Significant Accounting Polici_5
Significant Accounting Policies - COVID-19 (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)customer | Dec. 31, 2020USD ($) | |
COVID-19 | ||
Percentage of remaining loan maintains government guarantee | 100.00% | |
PPP Loans | ||
COVID-19 | ||
Customers with PPP loans processed | customer | 7,043 | |
PPP loans originated | $ 1,045,775 | |
Customers with PPP loans outstanding | customer | 3,104 | |
PPP loans acquired from GSB | $ 43,477 | |
PPP loans outstanding | 399,704 | |
PPP loans outstanding, amortized cost | 390,395 | $ 446,400 |
Received | 685,584 | |
Applications in process | $ 20,891 | |
CARES Act | ||
COVID-19 | ||
Customers with PPP loans processed | customer | 4,569 | |
PPP loans originated | $ 749,429 | |
Customers with PPP loans outstanding | customer | 581 | |
PPP loans acquired from GSB | $ 15,783 | |
PPP loans outstanding | 93,455 | |
PPP loans outstanding, amortized cost | 93,099 | |
Received | 667,796 | |
Applications in process | $ 18,652 | |
Economic Aid Act | ||
COVID-19 | ||
Customers with PPP loans processed | customer | 2,474 | |
PPP loans originated | $ 296,346 | |
Customers with PPP loans outstanding | customer | 2,523 | |
PPP loans acquired from GSB | $ 27,694 | |
PPP loans outstanding | 306,249 | |
PPP loans outstanding, amortized cost | 297,296 | |
Received | 17,788 | |
Applications in process | $ 2,239 | |
GSB | PPP Loans | ||
COVID-19 | ||
GSB customers with PPP loans acquired | customer | 292 | |
GSB | CARES Act | ||
COVID-19 | ||
GSB customers with PPP loans acquired | customer | 26 | |
GSB | Economic Aid Act | ||
COVID-19 | ||
GSB customers with PPP loans acquired | customer | 266 |
Significant Accounting Polici_6
Significant Accounting Policies - Subsequent Events (Details) - Subsequent event | Jul. 27, 2021Center |
Subsequent Event [Line Items] | |
Number of banking centers consolidated | 15 |
GSB | |
Subsequent Event [Line Items] | |
Number of banking centers consolidated | 2 |
Acquisitions - Cummins-American
Acquisitions - Cummins-American Corp. (Details) $ / shares in Units, $ in Thousands | May 31, 2021USD ($)$ / shares | May 28, 2021USD ($)$ / shares | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Consideration paid | |||||
Goodwill | $ 317,521 | $ 317,521 | $ 311,536 | ||
CAC | |||||
Merger agreement | |||||
Share consideration conversion ratio | 444.4783 | ||||
Per share cash consideration entitled (in dollars per share) | $ / shares | $ 14,173.96 | ||||
Business acquisition share price | $ / shares | $ 12,087.58 | ||||
Special cash dividend | $ 60,000 | ||||
Pre-tax acquisition expenses | 2,700 | 3,000 | |||
Assets acquired: | |||||
Cash and cash equivalents | $ 307,339 | ||||
Securities | 702,367 | ||||
Portfolio loans | 430,491 | ||||
Premises and equipment | 17,034 | ||||
Other intangible assets | 17,340 | ||||
Mortgage servicing rights | 629 | ||||
Other assets | 8,178 | ||||
Total assets acquired | 1,483,378 | ||||
Liabilities assumed: | |||||
Deposits | 1,324,396 | ||||
Other borrowings | 16,651 | ||||
Other liabilities | 18,853 | ||||
Total liabilities assumed | 1,359,900 | ||||
Net assets acquired | 123,478 | ||||
Consideration paid | |||||
Cash | 70,358 | ||||
Common stock | 59,105 | ||||
Total consideration paid | 129,463 | ||||
Goodwill | 5,985 | $ 6,000 | $ 6,000 | ||
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 |
Securities - General Disclosure
Securities - General Disclosures (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)securityshares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)securityshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)securityshares | |
Debt securities available for sale | |||||
Amortized Cost | $ 3,447,504 | $ 3,447,504 | $ 2,211,543 | ||
Gross Unrealized Gains | 36,293 | 36,293 | 50,317 | ||
Gross Unrealized Losses | (19,280) | (19,280) | (673) | ||
Fair Value | 3,464,517 | 3,464,517 | 2,261,187 | ||
Debt securities available for sale, Amortized Cost | |||||
Due in one year or less | 122,809 | 122,809 | |||
Due after one year through five years | 573,422 | 573,422 | |||
Due after five years through ten years | 398,111 | 398,111 | |||
Due after ten years | 2,353,162 | 2,353,162 | |||
Amortized Cost | 3,447,504 | 3,447,504 | 2,211,543 | ||
Debt securities available for sale, Fair Value | |||||
Due in one year or less | 123,502 | 123,502 | |||
Due after one year through five years | 579,219 | 579,219 | |||
Due after five years through ten years | 407,150 | 407,150 | |||
Due after ten years | 2,354,646 | 2,354,646 | |||
Fair Value | 3,464,517 | 3,464,517 | 2,261,187 | ||
Realized gains and losses on sales of debt securities | |||||
Gross security gains | 499 | $ 146 | 524 | $ 1,707 | |
Gross security (losses) | (405) | (3) | (405) | (8) | |
Net gains (losses) on sales of debt securities | 94 | $ 143 | 119 | $ 1,699 | |
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 1,893,514 | 1,893,514 | 221,913 | ||
Continuous unrealized losses existing for greater than 12 months, gross | 344 | 344 | 5,096 | ||
Total, gross | 1,893,858 | 1,893,858 | 227,009 | ||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (19,276) | (19,276) | (621) | ||
Continuous unrealized losses existing greater than 12 months, gross | (4) | (4) | (52) | ||
Total, gross | $ (19,280) | $ (19,280) | $ (673) | ||
Debt security portfolio | shares | 1,249 | 1,249 | 1,114 | ||
Number of securities in unrealized loss position | security | 252 | 252 | 23 | ||
Securities in unrealized loss position as a percentage of aggregate carrying value of investments | 1.02% | 1.02% | 0.30% | ||
Collateral | |||||
Realized gains and losses on sales of debt securities | |||||
Carrying amount of debt securities pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes | $ 703,100 | $ 703,100 | $ 628,000 | ||
U.S. Treasury securities | |||||
Debt securities available for sale | |||||
Amortized Cost | 212,022 | 212,022 | 27,481 | ||
Gross Unrealized Gains | 150 | 150 | 356 | ||
Gross Unrealized Losses | (279) | (279) | |||
Fair Value | 211,893 | 211,893 | 27,837 | ||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 212,022 | 212,022 | 27,481 | ||
Debt securities available for sale, Fair Value | |||||
Fair Value | 211,893 | 211,893 | 27,837 | ||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 150,811 | 150,811 | |||
Total, gross | 150,811 | 150,811 | |||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (279) | (279) | |||
Total, gross | (279) | (279) | |||
Obligations of U.S. government corporations and agencies | |||||
Debt securities available for sale | |||||
Amortized Cost | 49,528 | 49,528 | 67,406 | ||
Gross Unrealized Gains | 1,470 | 1,470 | 2,162 | ||
Gross Unrealized Losses | (49) | ||||
Fair Value | 50,998 | 50,998 | 69,519 | ||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 49,528 | 49,528 | 67,406 | ||
Debt securities available for sale, Fair Value | |||||
Fair Value | 50,998 | 50,998 | 69,519 | ||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for greater than 12 months, gross | 4,957 | ||||
Total, gross | 4,957 | ||||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing greater than 12 months, gross | (49) | ||||
Total, gross | (49) | ||||
Obligations of states and political subdivisions | |||||
Debt securities available for sale | |||||
Amortized Cost | 292,221 | 292,221 | 292,940 | ||
Gross Unrealized Gains | 9,634 | 9,634 | 11,779 | ||
Gross Unrealized Losses | (513) | (513) | (8) | ||
Fair Value | 301,342 | 301,342 | 304,711 | ||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 292,221 | 292,221 | 292,940 | ||
Debt securities available for sale, Fair Value | |||||
Fair Value | 301,342 | 301,342 | 304,711 | ||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 48,579 | 48,579 | 762 | ||
Total, gross | 48,579 | 48,579 | 762 | ||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (513) | (513) | (8) | ||
Total, gross | (513) | (513) | (8) | ||
Commercial mortgage-backed securities | |||||
Debt securities available for sale | |||||
Amortized Cost | 513,067 | 513,067 | 408,716 | ||
Gross Unrealized Gains | 6,528 | 6,528 | 10,212 | ||
Gross Unrealized Losses | (5,543) | (5,543) | (312) | ||
Fair Value | 514,052 | 514,052 | 418,616 | ||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 513,067 | 513,067 | 408,716 | ||
Debt securities available for sale, Fair Value | |||||
Fair Value | 514,052 | 514,052 | 418,616 | ||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 322,082 | 322,082 | 129,655 | ||
Total, gross | 322,082 | 322,082 | 129,655 | ||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (5,543) | (5,543) | (312) | ||
Total, gross | (5,543) | (5,543) | (312) | ||
Residential mortgage-backed securities | |||||
Debt securities available for sale | |||||
Amortized Cost | 1,837,271 | 1,837,271 | 1,344,047 | ||
Gross Unrealized Gains | 16,875 | 16,875 | 24,571 | ||
Gross Unrealized Losses | (11,952) | (11,952) | (303) | ||
Fair Value | 1,842,194 | 1,842,194 | 1,368,315 | ||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 1,837,271 | 1,837,271 | 1,344,047 | ||
Debt securities available for sale, Fair Value | |||||
Fair Value | 1,842,194 | 1,842,194 | 1,368,315 | ||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 1,073,263 | 1,073,263 | 89,997 | ||
Continuous unrealized losses existing for greater than 12 months, gross | 344 | 344 | 139 | ||
Total, gross | 1,073,607 | 1,073,607 | 90,136 | ||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (11,948) | (11,948) | (300) | ||
Continuous unrealized losses existing greater than 12 months, gross | (4) | (4) | (3) | ||
Total, gross | (11,952) | (11,952) | (303) | ||
Asset-backed securities | |||||
Debt securities available for sale | |||||
Amortized Cost | 246,998 | 246,998 | |||
Gross Unrealized Gains | 179 | 179 | |||
Gross Unrealized Losses | (180) | (180) | |||
Fair Value | 246,997 | 246,997 | |||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 246,998 | 246,998 | |||
Debt securities available for sale, Fair Value | |||||
Fair Value | 246,997 | 246,997 | |||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 98,703 | 98,703 | |||
Total, gross | 98,703 | 98,703 | |||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (180) | (180) | |||
Total, gross | (180) | (180) | |||
Corporate debt securities | |||||
Debt securities available for sale | |||||
Amortized Cost | 296,397 | 296,397 | 70,953 | ||
Gross Unrealized Gains | 1,457 | 1,457 | 1,237 | ||
Gross Unrealized Losses | (813) | (813) | (1) | ||
Fair Value | 297,041 | 297,041 | 72,189 | ||
Debt securities available for sale, Amortized Cost | |||||
Amortized Cost | 296,397 | 296,397 | 70,953 | ||
Debt securities available for sale, Fair Value | |||||
Fair Value | 297,041 | 297,041 | 72,189 | ||
Debt securities available for sale, Fair Value | |||||
Continuous unrealized losses existing for less than 12 months, gross | 200,076 | 200,076 | 1,499 | ||
Total, gross | 200,076 | 200,076 | 1,499 | ||
Debt securities available for sale, Unrealized Losses | |||||
Continuous unrealized losses existing for less than 12 months, gross | (813) | (813) | (1) | ||
Total, gross | $ (813) | $ (813) | $ (1) |
Portfolio Loans- Distribution o
Portfolio Loans- Distribution of portfolio loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Distributions of portfolio loans | ||||||
Portfolio loans | $ 7,185,650 | $ 6,814,177 | ||||
ACL | (95,410) | $ (93,943) | (101,048) | $ (96,046) | $ (84,384) | $ (53,748) |
Portfolio loans, net | 7,090,240 | 6,713,129 | ||||
Commercial Loans | ||||||
Distributions of portfolio loans | ||||||
Portfolio loans | 2,054,550 | 2,014,576 | ||||
ACL | (24,356) | (23,025) | (23,866) | (24,146) | (22,725) | (18,291) |
Commercial Real Estate Loans | ||||||
Distributions of portfolio loans | ||||||
Portfolio loans | 2,920,312 | 2,892,535 | ||||
ACL | (39,974) | (43,306) | (46,230) | (42,680) | (35,967) | (21,190) |
Real Estate Construction | ||||||
Distributions of portfolio loans | ||||||
Portfolio loans | 500,599 | 461,786 | ||||
ACL | (7,599) | (6,879) | (8,193) | (7,792) | (7,193) | (3,204) |
Retail Real Estate | ||||||
Distributions of portfolio loans | ||||||
Portfolio loans | 1,525,810 | 1,407,852 | ||||
ACL | (20,505) | (19,978) | (21,992) | (20,405) | (17,454) | (10,495) |
Retail Other | ||||||
Distributions of portfolio loans | ||||||
Portfolio loans | 184,379 | 37,428 | ||||
ACL | $ (2,976) | $ (755) | $ (767) | $ (1,023) | $ (1,045) | $ (568) |
Portfolio Loans - Narrative (De
Portfolio Loans - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Distributions of portfolio loans | |||||
Net deferred loan origination (fees) costs | $ (300) | $ (300) | $ 2,400 | ||
Net accretable purchase accounting adjustments | 11,500 | 10,900 | |||
Loans classified as a TDR | $ 400 | $ 400 | $ 900 | $ 900 | |
TDRs subsequently classified as non-performing and had payment defaults | loan | 0 | 0 | 0 | 0 | |
Loans in the process of foreclosure | $ 200 | $ 200 | |||
Commercial Loans | Included in non-performing loans | |||||
Distributions of portfolio loans | |||||
Loans classified as a TDR | $ 500 | $ 500 | |||
Performing loans classified as TDRs | loan | 1 | 3 | |||
Commercial Real Estate Loans | Included in non-performing loans | |||||
Distributions of portfolio loans | |||||
Loans classified as a TDR | $ 700 | ||||
Performing loans classified as TDRs | loan | 1 | ||||
Retail Real Estate | |||||
Distributions of portfolio loans | |||||
Loans purchased | 32,200 | $ 0 | $ 32,200 | $ 43,900 | |
Loans classified as a TDR | $ 200 | $ 200 | |||
Performing loans classified as TDRs | loan | 1 | 1 | |||
Retail Real Estate | Included in non-performing loans | |||||
Distributions of portfolio loans | |||||
Loans classified as a TDR | $ 100 | ||||
TDRs subsequently classified as non-performing and had payment defaults | loan | 1 | ||||
Maximum | Commercial Real Estate Loans | |||||
Distributions of portfolio loans | |||||
Limit where loans are processed through an expedited underwriting process | $ 1,000 | ||||
Watch | Commercial Loans | |||||
Distributions of portfolio loans | |||||
Limit above which loans are annually reviewed | 1,000 | ||||
Special Mention | Commercial Loans | |||||
Distributions of portfolio loans | |||||
Limit above which loans are annually reviewed | 350 | ||||
PPP Loans | |||||
Distributions of portfolio loans | |||||
Amortized cost of the loans outstanding | $ 390,395 | $ 390,395 | $ 446,400 |
Portfolio Loans - Summary of ri
Portfolio Loans - Summary of risk grades segregated by category (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans | ||
Portfolio loans | $ 7,185,650 | $ 6,814,177 |
Pass | ||
Loans | ||
Portfolio loans | 6,426,332 | 6,016,748 |
Watch | ||
Loans | ||
Portfolio loans | 540,258 | 554,970 |
Special Mention | ||
Loans | ||
Portfolio loans | 146,235 | 150,481 |
Substandard | ||
Loans | ||
Portfolio loans | 45,100 | 69,048 |
Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 27,725 | 22,930 |
Commercial | ||
Loans | ||
Portfolio loans | 2,054,550 | 2,014,576 |
Commercial | Pass | ||
Loans | ||
Portfolio loans | 1,816,456 | 1,768,755 |
Commercial | Watch | ||
Loans | ||
Portfolio loans | 131,361 | 136,948 |
Commercial | Special Mention | ||
Loans | ||
Portfolio loans | 76,706 | 72,447 |
Commercial | Substandard | ||
Loans | ||
Portfolio loans | 19,349 | 27,903 |
Commercial | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 10,678 | 8,523 |
Commercial real estate | ||
Loans | ||
Portfolio loans | 2,920,312 | 2,892,535 |
Commercial real estate | Pass | ||
Loans | ||
Portfolio loans | 2,446,143 | 2,393,372 |
Commercial real estate | Watch | ||
Loans | ||
Portfolio loans | 379,546 | 383,277 |
Commercial real estate | Special Mention | ||
Loans | ||
Portfolio loans | 67,179 | 75,486 |
Commercial real estate | Substandard | ||
Loans | ||
Portfolio loans | 18,679 | 34,897 |
Commercial real estate | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 8,765 | 5,503 |
Real estate construction | ||
Loans | ||
Portfolio loans | 500,599 | 461,786 |
Real estate construction | Pass | ||
Loans | ||
Portfolio loans | 482,718 | 434,681 |
Real estate construction | Watch | ||
Loans | ||
Portfolio loans | 15,473 | 24,481 |
Real estate construction | Special Mention | ||
Loans | ||
Portfolio loans | 8 | 77 |
Real estate construction | Substandard | ||
Loans | ||
Portfolio loans | 2,400 | 2,546 |
Real estate construction | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 1 | |
Retail Real Estate | ||
Loans | ||
Portfolio loans | 1,525,810 | 1,407,852 |
Retail Real Estate | Pass | ||
Loans | ||
Portfolio loans | 1,496,677 | 1,382,616 |
Retail Real Estate | Watch | ||
Loans | ||
Portfolio loans | 13,878 | 10,264 |
Retail Real Estate | Special Mention | ||
Loans | ||
Portfolio loans | 2,342 | 2,471 |
Retail Real Estate | Substandard | ||
Loans | ||
Portfolio loans | 4,672 | 3,702 |
Retail Real Estate | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 8,241 | 8,799 |
Retail Other | ||
Loans | ||
Portfolio loans | 184,379 | 37,428 |
Retail Other | Pass | ||
Loans | ||
Portfolio loans | 184,338 | 37,324 |
Retail Other | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 41 | 104 |
Commercial Loans | ||
Loans | ||
Portfolio loans | 2,054,550 | 2,014,576 |
Commercial Real Estate Loans | ||
Loans | ||
Portfolio loans | 2,920,312 | 2,892,535 |
Real Estate Construction | ||
Loans | ||
Portfolio loans | 500,599 | 461,786 |
Retail Real Estate | ||
Loans | ||
Portfolio loans | 1,525,810 | 1,407,852 |
Retail Other | ||
Loans | ||
Portfolio loans | $ 184,379 | $ 37,428 |
Portfolio Loans and allowance f
Portfolio Loans and allowance for credit losses - Risk grades of portfolio loans by origination year (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans | ||
2021 | $ 1,522,350 | |
2020 | 1,616,729 | $ 2,216,953 |
2019 | 1,049,168 | 1,168,069 |
2018 | 688,565 | 798,327 |
2017 | 537,654 | 699,747 |
2016 | 441,456 | |
Prior | 868,553 | 650,638 |
Revolving loans | 902,631 | 838,987 |
Ending balance | 7,185,650 | 6,814,177 |
Pass | ||
Loans | ||
Ending balance | 6,426,332 | 6,016,748 |
Watch | ||
Loans | ||
Ending balance | 540,258 | 554,970 |
Special Mention | ||
Loans | ||
Ending balance | 146,235 | 150,481 |
Substandard | ||
Loans | ||
Ending balance | 45,100 | 69,048 |
Substandard Non-accrual | ||
Loans | ||
Ending balance | 27,725 | 22,930 |
Commercial | ||
Loans | ||
2021 | 572,672 | |
2020 | 378,163 | 843,404 |
2019 | 146,310 | 190,061 |
2018 | 106,744 | 127,410 |
2017 | 97,835 | 118,185 |
2016 | 72,647 | |
Prior | 157,289 | 105,947 |
Revolving loans | 595,537 | 556,922 |
Ending balance | 2,054,550 | 2,014,576 |
Commercial | Pass | ||
Loans | ||
2021 | 550,732 | |
2020 | 363,044 | 812,536 |
2019 | 118,095 | 158,307 |
2018 | 94,495 | 107,565 |
2017 | 79,018 | 93,190 |
2016 | 61,847 | |
Prior | 129,150 | 79,970 |
Revolving loans | 481,922 | 455,340 |
Ending balance | 1,816,456 | 1,768,755 |
Commercial | Watch | ||
Loans | ||
2021 | 11,051 | |
2020 | 7,412 | 16,544 |
2019 | 20,256 | 22,247 |
2018 | 5,597 | 14,954 |
2017 | 8,415 | 13,724 |
2016 | 2,577 | |
Prior | 9,830 | 10,943 |
Revolving loans | 68,800 | 55,959 |
Ending balance | 131,361 | 136,948 |
Commercial | Special Mention | ||
Loans | ||
2021 | 2,739 | |
2020 | 2,650 | 6,402 |
2019 | 2,864 | 2,671 |
2018 | 4,845 | 2,069 |
2017 | 6,920 | 7,164 |
2016 | 6,763 | |
Prior | 18,111 | 13,733 |
Revolving loans | 38,577 | 33,645 |
Ending balance | 76,706 | 72,447 |
Commercial | Substandard | ||
Loans | ||
2021 | 3,794 | |
2020 | 4,588 | 7,772 |
2019 | 3,504 | 3,791 |
2018 | 1,807 | 2,371 |
2017 | 1,338 | 1,939 |
2016 | 819 | |
Prior | 80 | 1,233 |
Revolving loans | 4,238 | 9,978 |
Ending balance | 19,349 | 27,903 |
Commercial | Substandard Non-accrual | ||
Loans | ||
2021 | 4,356 | |
2020 | 469 | 150 |
2019 | 1,591 | 3,045 |
2018 | 451 | |
2017 | 2,144 | 2,168 |
2016 | 641 | |
Prior | 118 | 68 |
Revolving loans | 2,000 | 2,000 |
Ending balance | 10,678 | 8,523 |
Commercial real estate | ||
Loans | ||
2021 | 485,110 | |
2020 | 763,300 | 840,882 |
2019 | 582,526 | 628,303 |
2018 | 410,571 | 463,787 |
2017 | 311,926 | 437,776 |
2016 | 222,941 | |
Prior | 346,777 | 278,923 |
Revolving loans | 20,102 | 19,923 |
Ending balance | 2,920,312 | 2,892,535 |
Commercial real estate | Pass | ||
Loans | ||
2021 | 420,841 | |
2020 | 691,476 | 717,559 |
2019 | 441,952 | 503,977 |
2018 | 313,315 | 360,573 |
2017 | 269,126 | 384,843 |
2016 | 180,555 | |
Prior | 291,896 | 227,068 |
Revolving loans | 17,537 | 18,797 |
Ending balance | 2,446,143 | 2,393,372 |
Commercial real estate | Watch | ||
Loans | ||
2021 | 39,642 | |
2020 | 53,762 | 88,297 |
2019 | 130,096 | 110,526 |
2018 | 84,131 | 90,412 |
2017 | 28,486 | 33,734 |
2016 | 32,887 | |
Prior | 41,473 | 27,023 |
Revolving loans | 1,956 | 398 |
Ending balance | 379,546 | 383,277 |
Commercial real estate | Special Mention | ||
Loans | ||
2021 | 22,415 | |
2020 | 7,389 | 16,490 |
2019 | 6,780 | 8,858 |
2018 | 9,907 | 10,490 |
2017 | 10,285 | 10,505 |
2016 | 7,102 | |
Prior | 9,794 | 21,808 |
Revolving loans | 609 | 233 |
Ending balance | 67,179 | 75,486 |
Commercial real estate | Substandard | ||
Loans | ||
2021 | 2,134 | |
2020 | 9,898 | 17,445 |
2019 | 2,465 | 4,166 |
2018 | 2,397 | 1,491 |
2017 | 25 | 7,812 |
2016 | 2,111 | |
Prior | 1,760 | 1,377 |
Revolving loans | 495 | |
Ending balance | 18,679 | 34,897 |
Commercial real estate | Substandard Non-accrual | ||
Loans | ||
2021 | 78 | |
2020 | 775 | 1,091 |
2019 | 1,233 | 776 |
2018 | 821 | 821 |
2017 | 4,004 | 882 |
2016 | 286 | |
Prior | 1,854 | 1,647 |
Ending balance | 8,765 | 5,503 |
Real estate construction | ||
Loans | ||
2021 | 102,215 | |
2020 | 196,512 | 200,184 |
2019 | 149,425 | 175,330 |
2018 | 35,033 | 64,362 |
2017 | 2,616 | 3,306 |
2016 | 1,071 | |
Prior | 1,418 | 1,445 |
Revolving loans | 13,380 | 16,088 |
Ending balance | 500,599 | 461,786 |
Real estate construction | Pass | ||
Loans | ||
2021 | 99,885 | |
2020 | 183,938 | 179,232 |
2019 | 148,531 | 171,663 |
2018 | 34,750 | 64,025 |
2017 | 957 | 1,468 |
2016 | 761 | |
Prior | 1,277 | 1,444 |
Revolving loans | 13,380 | 16,088 |
Ending balance | 482,718 | 434,681 |
Real estate construction | Watch | ||
Loans | ||
2021 | 2,330 | |
2020 | 10,174 | 18,485 |
2019 | 886 | 3,657 |
2018 | 283 | 337 |
2017 | 1,659 | 1,838 |
2016 | 164 | |
Prior | 141 | |
Ending balance | 15,473 | 24,481 |
Real estate construction | Special Mention | ||
Loans | ||
2020 | 67 | |
2019 | 8 | 10 |
Ending balance | 8 | 77 |
Real estate construction | Substandard | ||
Loans | ||
2020 | 2,400 | 2,400 |
2016 | 146 | |
Ending balance | 2,400 | 2,546 |
Real estate construction | Substandard Non-accrual | ||
Loans | ||
Prior | 1 | |
Ending balance | 1 | |
Retail Real Estate | ||
Loans | ||
2021 | 339,821 | |
2020 | 250,264 | 324,112 |
2019 | 135,766 | 164,938 |
2018 | 112,318 | 137,163 |
2017 | 112,040 | 137,949 |
2016 | 144,101 | |
Prior | 358,532 | 263,826 |
Revolving loans | 217,069 | 235,763 |
Ending balance | 1,525,810 | 1,407,852 |
Retail Real Estate | Pass | ||
Loans | ||
2021 | 335,450 | |
2020 | 246,690 | 319,302 |
2019 | 133,617 | 162,711 |
2018 | 110,169 | 135,065 |
2017 | 110,300 | 136,427 |
2016 | 140,600 | |
Prior | 349,052 | 257,147 |
Revolving loans | 211,399 | 231,364 |
Ending balance | 1,496,677 | 1,382,616 |
Retail Real Estate | Watch | ||
Loans | ||
2021 | 2,925 | |
2020 | 2,415 | 2,715 |
2019 | 2,002 | 2,053 |
2018 | 1,515 | 1,396 |
2017 | 305 | 349 |
2016 | 579 | |
Prior | 388 | 233 |
Revolving loans | 4,328 | 2,939 |
Ending balance | 13,878 | 10,264 |
Retail Real Estate | Special Mention | ||
Loans | ||
2021 | 377 | |
2020 | 31 | 509 |
2016 | 1,962 | |
Prior | 1,934 | |
Ending balance | 2,342 | 2,471 |
Retail Real Estate | Substandard | ||
Loans | ||
2021 | 730 | |
2020 | 967 | 899 |
2019 | 73 | 96 |
2018 | 98 | 56 |
2017 | 235 | 26 |
2016 | 727 | |
Prior | 2,485 | 1,631 |
Revolving loans | 84 | 267 |
Ending balance | 4,672 | 3,702 |
Retail Real Estate | Substandard Non-accrual | ||
Loans | ||
2021 | 339 | |
2020 | 161 | 687 |
2019 | 74 | 78 |
2018 | 536 | 646 |
2017 | 1,200 | 1,147 |
2016 | 233 | |
Prior | 4,673 | 4,815 |
Revolving loans | 1,258 | 1,193 |
Ending balance | 8,241 | 8,799 |
Retail Other | ||
Loans | ||
2021 | 22,532 | |
2020 | 28,490 | 8,371 |
2019 | 35,141 | 9,437 |
2018 | 23,899 | 5,605 |
2017 | 13,237 | 2,531 |
2016 | 696 | |
Prior | 4,537 | 497 |
Revolving loans | 56,543 | 10,291 |
Ending balance | 184,379 | 37,428 |
Retail Other | Pass | ||
Loans | ||
2021 | 22,532 | |
2020 | 28,477 | 8,357 |
2019 | 35,134 | 9,430 |
2018 | 23,894 | 5,600 |
2017 | 13,223 | 2,516 |
2016 | 691 | |
Prior | 4,535 | 440 |
Revolving loans | 56,543 | 10,290 |
Ending balance | 184,338 | 37,324 |
Retail Other | Substandard Non-accrual | ||
Loans | ||
2020 | 13 | 14 |
2019 | 7 | 7 |
2018 | 5 | 5 |
2017 | 14 | 15 |
2016 | 5 | |
Prior | 2 | 57 |
Revolving loans | 1 | |
Ending balance | 41 | 104 |
Commercial Loans | ||
Loans | ||
Ending balance | 2,054,550 | 2,014,576 |
Commercial Real Estate Loans | ||
Loans | ||
Ending balance | 2,920,312 | 2,892,535 |
Real Estate Construction | ||
Loans | ||
Ending balance | 500,599 | 461,786 |
Retail Real Estate | ||
Loans | ||
Ending balance | 1,525,810 | 1,407,852 |
Retail Other | ||
Loans | ||
Ending balance | $ 184,379 | $ 37,428 |
Portfolio Loans and allowance_2
Portfolio Loans and allowance for credit losses - Analysis of loans past due and still accruing or non-accrual status (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans past due | ||
90+Days | $ 590 | $ 1,371 |
Non-accrual Loans | 27,725 | 22,930 |
30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 2,639 | 6,794 |
60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 1,249 | 784 |
Commercial | ||
Loans past due | ||
90+Days | 2 | |
Non-accrual Loans | 10,678 | 8,523 |
Commercial | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 241 | 243 |
Commercial real estate | ||
Loans past due | ||
Non-accrual Loans | 8,765 | 5,503 |
Commercial real estate | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 330 | |
Real estate construction | ||
Loans past due | ||
Non-accrual Loans | 1 | |
Real estate construction | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 237 | |
Real estate construction | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 426 | 235 |
Retail Real Estate | ||
Loans past due | ||
90+Days | 587 | 1,305 |
Non-accrual Loans | 8,241 | 8,799 |
Retail Real Estate | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 2,014 | 6,248 |
Retail Real Estate | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 814 | 400 |
Retail Other | ||
Loans past due | ||
90+Days | 1 | 66 |
Non-accrual Loans | 41 | 104 |
Retail Other | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 54 | 66 |
Retail Other | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | $ 9 | $ 149 |
Portfolio Loans - Summary of TD
Portfolio Loans - Summary of TDR loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Restructured loans | ||
Total loans | $ 3,832 | $ 5,078 |
In compliance with modified terms | ||
Restructured loans | ||
Total loans | 2,518 | 3,814 |
30-89 days past due | ||
Restructured loans | ||
Total loans | 15 | |
Included in non-performing loans | ||
Restructured loans | ||
Total loans | $ 1,314 | $ 1,249 |
Portfolio Loans - Loans identif
Portfolio Loans - Loans identified as impaired, segregated by category (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | $ 28,849 | $ 30,342 |
Recorded Investment with No Allowance | 14,791 | 15,850 |
Recorded Investment with Allowance | 8,373 | 4,396 |
Total Recorded Investment | 23,164 | 20,246 |
Related Allowance | 4,495 | 1,625 |
Average Recorded Investment | 21,167 | 25,299 |
Collateral dependent loans secured by real estate or business assets | 17,200 | |
Commercial Loans | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 14,624 | 16,771 |
Recorded Investment with No Allowance | 2,237 | 4,001 |
Recorded Investment with Allowance | 8,348 | 4,371 |
Total Recorded Investment | 10,585 | 8,372 |
Related Allowance | 4,470 | 1,600 |
Average Recorded Investment | 8,156 | 7,920 |
Commercial Real Estate Loans | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 9,647 | 7,406 |
Recorded Investment with No Allowance | 8,360 | 6,067 |
Total Recorded Investment | 8,360 | 6,067 |
Average Recorded Investment | 7,683 | 9,349 |
Real Estate Construction | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 283 | 292 |
Recorded Investment with No Allowance | 283 | 292 |
Total Recorded Investment | 283 | 292 |
Average Recorded Investment | 395 | 581 |
Retail Real Estate | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 4,295 | 5,873 |
Recorded Investment with No Allowance | 3,911 | 5,490 |
Recorded Investment with Allowance | 25 | 25 |
Total Recorded Investment | 3,936 | 5,515 |
Related Allowance | 25 | 25 |
Average Recorded Investment | $ 4,933 | 7,439 |
Retail Other | ||
Loans identified as impaired | ||
Average Recorded Investment | $ 10 |
Portfolio Loans - Activity in t
Portfolio Loans - Activity in the allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Activity in the allowance for loan losses | |||||
ACL beginning balance | $ 93,943 | $ 84,384 | $ 101,048 | $ 53,748 | |
Provision for credit losses | (1,700) | 12,891 | (8,496) | 30,107 | |
Charged-off | (1,538) | (1,702) | (2,502) | (5,850) | |
Recoveries | 527 | 473 | 1,182 | 1,208 | |
ACL ending balance | 95,410 | 96,046 | 95,410 | 96,046 | |
Allowance for loan losses Ending balance attributed to: | |||||
Loans individually evaluated for impairment | 4,495 | 4,495 | $ 1,625 | ||
Loans collectively evaluated for impairment | 90,915 | 90,915 | 99,423 | ||
Ending balance | 95,410 | 96,046 | 95,410 | 96,046 | 101,048 |
Loans: | |||||
Loans individually evaluated for impairment | 23,164 | 23,164 | 20,246 | ||
Loans collectively evaluated for impairment | 7,162,486 | 7,162,486 | 6,793,931 | ||
Ending balance | 7,185,650 | 7,185,650 | 6,814,177 | ||
Day 1 PCD | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 4,178 | 4,178 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 4,178 | ||||
Commercial Loans | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 23,025 | 22,725 | 23,866 | 18,291 | |
Provision for credit losses | (1,420) | 2,473 | (2,084) | 8,146 | |
Charged-off | (1,000) | (1,140) | (1,262) | (3,182) | |
Recoveries | 205 | 88 | 290 | 176 | |
ACL ending balance | 24,356 | 24,146 | 24,356 | 24,146 | |
Allowance for loan losses Ending balance attributed to: | |||||
Loans individually evaluated for impairment | 4,470 | 4,470 | 1,600 | ||
Loans collectively evaluated for impairment | 19,886 | 19,886 | 22,266 | ||
Ending balance | 24,356 | 24,146 | 24,356 | 24,146 | 23,866 |
Loans: | |||||
Loans individually evaluated for impairment | 10,585 | 10,585 | 8,372 | ||
Loans collectively evaluated for impairment | 2,043,965 | 2,043,965 | 2,006,204 | ||
Ending balance | 2,054,550 | 2,054,550 | 2,014,576 | ||
Commercial Loans | Day 1 PCD | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 3,546 | 3,546 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 3,546 | ||||
Commercial Real Estate Loans | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 43,306 | 35,967 | 46,230 | 21,190 | |
Provision for credit losses | (3,390) | 6,861 | (6,085) | 13,387 | |
Charged-off | (317) | (165) | (620) | (1,264) | |
Recoveries | 39 | 17 | 113 | 61 | |
ACL ending balance | 39,974 | 42,680 | 39,974 | 42,680 | |
Allowance for loan losses Ending balance attributed to: | |||||
Loans collectively evaluated for impairment | 39,974 | 39,974 | 46,230 | ||
Ending balance | 39,974 | 42,680 | 39,974 | 42,680 | 46,230 |
Loans: | |||||
Loans individually evaluated for impairment | 8,360 | 8,360 | 6,067 | ||
Loans collectively evaluated for impairment | 2,911,952 | 2,911,952 | 2,886,468 | ||
Ending balance | 2,920,312 | 2,920,312 | 2,892,535 | ||
Commercial Real Estate Loans | Day 1 PCD | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 336 | 336 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 336 | ||||
Real Estate Construction | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 6,879 | 7,193 | 8,193 | 3,204 | |
Provision for credit losses | 671 | 574 | (579) | 1,463 | |
Charged-off | (209) | ||||
Recoveries | 49 | 25 | 194 | 171 | |
ACL ending balance | 7,599 | 7,792 | 7,599 | 7,792 | |
Allowance for loan losses Ending balance attributed to: | |||||
Loans collectively evaluated for impairment | 7,599 | 7,599 | 8,193 | ||
Ending balance | 7,599 | 7,792 | 7,599 | 7,792 | 8,193 |
Loans: | |||||
Loans individually evaluated for impairment | 283 | 283 | 292 | ||
Loans collectively evaluated for impairment | 500,316 | 500,316 | 461,494 | ||
Ending balance | 500,599 | 500,599 | 461,786 | ||
Retail Real Estate | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 19,978 | 17,454 | 21,992 | 10,495 | |
Provision for credit losses | 404 | 2,981 | (1,873) | 7,018 | |
Charged-off | (157) | (292) | (160) | (1,000) | |
Recoveries | 151 | 262 | 417 | 600 | |
ACL ending balance | 20,505 | 20,405 | 20,505 | 20,405 | |
Allowance for loan losses Ending balance attributed to: | |||||
Loans individually evaluated for impairment | 25 | 25 | 25 | ||
Loans collectively evaluated for impairment | 20,480 | 20,480 | 21,967 | ||
Ending balance | 20,505 | 20,405 | 20,505 | 20,405 | 21,992 |
Loans: | |||||
Loans individually evaluated for impairment | 3,936 | 3,936 | 5,515 | ||
Loans collectively evaluated for impairment | 1,521,874 | 1,521,874 | 1,402,337 | ||
Ending balance | 1,525,810 | 1,525,810 | 1,407,852 | ||
Retail Real Estate | Day 1 PCD | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 129 | 129 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 129 | ||||
Retail Other | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | 755 | 1,045 | 767 | 568 | |
Provision for credit losses | 2,035 | 2 | 2,125 | 93 | |
Charged-off | (64) | (105) | (251) | (404) | |
Recoveries | 83 | 81 | 168 | 200 | |
ACL ending balance | 2,976 | 1,023 | 2,976 | 1,023 | |
Allowance for loan losses Ending balance attributed to: | |||||
Loans collectively evaluated for impairment | 2,976 | 2,976 | 767 | ||
Ending balance | 2,976 | 1,023 | 2,976 | 1,023 | 767 |
Loans: | |||||
Loans collectively evaluated for impairment | 184,379 | 184,379 | 37,428 | ||
Ending balance | 184,379 | 184,379 | 37,428 | ||
Retail Other | Day 1 PCD | |||||
Activity in the allowance for loan losses | |||||
ACL beginning balance | $ 167 | $ 167 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | $ 167 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Activity in the allowance for loan losses | |||||
ACL ending balance | 16,833 | 16,833 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 16,833 | 16,833 | |||
Cumulative Effect, Period of Adoption, Adjustment | Commercial Loans | |||||
Activity in the allowance for loan losses | |||||
ACL ending balance | 715 | 715 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 715 | 715 | |||
Cumulative Effect, Period of Adoption, Adjustment | Commercial Real Estate Loans | |||||
Activity in the allowance for loan losses | |||||
ACL ending balance | 9,306 | 9,306 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 9,306 | 9,306 | |||
Cumulative Effect, Period of Adoption, Adjustment | Real Estate Construction | |||||
Activity in the allowance for loan losses | |||||
ACL ending balance | 2,954 | 2,954 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 2,954 | 2,954 | |||
Cumulative Effect, Period of Adoption, Adjustment | Retail Real Estate | |||||
Activity in the allowance for loan losses | |||||
ACL ending balance | 3,292 | 3,292 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | 3,292 | 3,292 | |||
Cumulative Effect, Period of Adoption, Adjustment | Retail Other | |||||
Activity in the allowance for loan losses | |||||
ACL ending balance | 566 | 566 | |||
Allowance for loan losses Ending balance attributed to: | |||||
Ending balance | $ 566 | $ 566 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits | ||
Demand deposits, noninterest-bearing | $ 3,186,650 | $ 2,552,039 |
Interest-bearing transaction deposits | 2,722,053 | 2,263,093 |
Saving deposits and money market deposits | 3,312,818 | 2,743,369 |
Time deposits | 1,115,596 | 1,119,348 |
Total deposits | 10,337,117 | 8,677,849 |
Brokered saving deposits and money market deposits | 2,002 | 2,251 |
Brokered time deposits | 261 | 5,257 |
Aggregate amount of time deposits with a minimum denomination of $100,000 | 377,832 | 568,735 |
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 | 171,460 | 192,563 |
Maturities of time deposits | ||
July 1, 2021 - June 30, 2022 | 773,787 | |
July 1, 2022 - June 30, 2023 | 193,316 | |
July 1, 2023 - June 30, 2024 | 100,287 | |
July 1, 2024 - June 30, 2025 | 23,990 | |
July 1, 2025 - June 30, 2026 | 13,786 | |
Thereafter | 10,430 | |
Total time deposits | $ 1,115,596 | $ 1,119,348 |
Borrowings - Securities sold un
Borrowings - Securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Borrowings | ||
Securities sold under agreements to repurchase | $ 207,266 | $ 175,614 |
Securities sold under agreements to repurchase, weighted average rate | 0.12% | 0.13% |
Borrowings - Amended and Restat
Borrowings - Amended and Restated Credit Agreement (Details) $ in Millions | May 28, 2021USD ($) |
Term Loan | |
Borrowings | |
Issuance of debt | $ 60 |
Revolving line of credit | |
Borrowings | |
Issuance of debt | $ 40 |
Second Amended and Restated Credit Agreement | One-month LIBOR rate | |
Borrowings | |
Interest rate (as a percent) | 1.75% |
Borrowings - Short-term borrowi
Borrowings - Short-term borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Short-term borrowings | ||
Short-term borrowings | $ 30,168 | $ 4,658 |
Federal funds purchased | 0 | 0 |
FHLB advances | ||
Short-term borrowings | ||
Short-term borrowings | 5,668 | $ 4,658 |
Revolving line of credit | ||
Short-term borrowings | ||
Short-term borrowings | 12,500 | |
Term Loan, current portion due within 12 months | ||
Short-term borrowings | ||
Short-term borrowings | $ 12,000 | |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Long-term debt | ||
Long-term debt | $ 52,409 | $ 4,757 |
FHLB advances | ||
Long-term debt | ||
Notes payable original maturity term | 5 years | 5 years |
Interest rate (as a percent) | 3.04% | 3.04% |
Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock | ||
Long-term debt | ||
Long-term debt | $ 4,409 | $ 4,757 |
Term Loan | ||
Long-term debt | ||
Long-term debt | $ 48,000 |
Borrowings - Senior notes and S
Borrowings - Senior notes and Subordinate Notes (Details) - USD ($) $ in Thousands | Jun. 01, 2020 | May 25, 2017 | Jun. 30, 2021 | Dec. 31, 2020 |
Long-term debt | ||||
Unamortized debt issuance cost | $ 2,621 | $ 2,965 | ||
3.75% notes maturing May 25, 2022 | Senior notes | ||||
Long-term debt | ||||
Issuance of debt | $ 40,000 | |||
Interest rate (as a percent) | 3.75% | |||
Unamortized debt issuance cost | 124 | 191 | ||
4.75% notes maturing May 25, 2027 | Subordinated debt | ||||
Long-term debt | ||||
Issuance of debt | $ 60,000 | |||
Fixed payment term of note | 5 years | |||
Duration of fixed interest rate | 5 years | |||
Unamortized debt issuance cost | 600 | 651 | ||
4.75% notes maturing May 25, 2027 | First Five Years | Subordinated debt | ||||
Long-term debt | ||||
Interest rate (as a percent) | 4.75% | |||
4.75% notes maturing May 25, 2027 | Three-month LIBOR | Subordinated debt | ||||
Long-term debt | ||||
Floating interest rate margin (as a percent) | 2.919% | |||
5.25% notes maturing June 1, 2030 | Subordinated debt | ||||
Long-term debt | ||||
Issuance of debt | $ 125,000 | |||
Duration of fixed interest rate | 5 years | |||
Floating interest rate margin (as a percent) | 5.11% | |||
Unamortized debt issuance cost | $ 1,897 | $ 2,123 | ||
5.25% notes maturing June 1, 2030 | First Five Years | Subordinated debt | ||||
Long-term debt | ||||
Interest rate (as a percent) | 5.25% |
Regulatory Capital (Details)
Regulatory Capital (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Total Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 1,322,889 | $ 1,245,997 |
Minimum Capital Requirement, Amount | 644,804 | 585,015 |
Minimum To Be Well Capitalized, Amount | $ 806,004 | $ 731,269 |
Total Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 16.41 | 17.04 |
Minimum Capital Requirement, Ratio (as a percent) | 8 | 8 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 1,062,182 | $ 983,033 |
Minimum Capital Requirement, Amount | 483,603 | 438,761 |
Minimum To Be Well Capitalized, Amount | $ 644,804 | $ 585,015 |
Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 13.18 | 13.44 |
Minimum Capital Requirement, Ratio (as a percent) | 6 | 6 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 8 | 8 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 988,182 | $ 909,033 |
Minimum Capital Requirement, Amount | 362,702 | 329,071 |
Minimum To Be Well Capitalized, Amount | $ 523,903 | $ 475,325 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 12.26% | 12.43% |
Minimum Capital Requirement, Ratio (as a percent) | 4.50% | 4.50% |
Minimum To Be Well Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), Amount | ||
Actual, Amount | $ 1,062,182 | $ 983,033 |
Minimum Capital Requirement, Amount | $ 441,602 | $ 401,717 |
Tier 1 Capital (to Average Assets), Ratio | ||
Actual, Ratio (as a percent) | 9.62 | 9.79 |
Minimum Capital Requirement, Ratio (as a percent) | 4 | 4 |
Busey Bank | ||
Total Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 1,200,761 | $ 1,131,875 |
Minimum Capital Requirement, Amount | 592,339 | 584,082 |
Minimum To Be Well Capitalized, Amount | $ 740,424 | $ 730,103 |
Total Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 16.22 | 15.50 |
Minimum Capital Requirement, Ratio (as a percent) | 8 | 8 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 1,133,213 | $ 1,053,910 |
Minimum Capital Requirement, Amount | 444,254 | 438,062 |
Minimum To Be Well Capitalized, Amount | $ 592,339 | $ 584,082 |
Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 15.30 | 14.44 |
Minimum Capital Requirement, Ratio (as a percent) | 6 | 6 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 8 | 8 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 1,133,213 | $ 1,053,910 |
Minimum Capital Requirement, Amount | 333,191 | 328,546 |
Minimum To Be Well Capitalized, Amount | $ 481,275 | $ 474,567 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 15.30% | 14.44% |
Minimum Capital Requirement, Ratio (as a percent) | 4.50% | 4.50% |
Minimum To Be Well Capitalized, Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), Amount | ||
Actual, Amount | $ 1,133,213 | $ 1,053,910 |
Minimum Capital Requirement, Amount | 420,434 | 400,581 |
Minimum To Be Well Capitalized, Amount | $ 525,542 | $ 500,727 |
Tier 1 Capital (to Average Assets), Ratio | ||
Actual, Ratio (as a percent) | 10.78 | 10.52 |
Minimum Capital Requirement, Ratio (as a percent) | 4 | 4 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 5 | 5 |
GSB | ||
Total Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 113,250 | |
Minimum Capital Requirement, Amount | 49,779 | |
Minimum To Be Well Capitalized, Amount | $ 62,223 | |
Total Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 18.20 | |
Minimum Capital Requirement, Ratio (as a percent) | 8 | |
Minimum To Be Well Capitalized, Ratio (as a percent) | 10 | |
Tier 1 Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 105,472 | |
Minimum Capital Requirement, Amount | 37,334 | |
Minimum To Be Well Capitalized, Amount | $ 49,779 | |
Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 16.95 | |
Minimum Capital Requirement, Ratio (as a percent) | 6 | |
Minimum To Be Well Capitalized, Ratio (as a percent) | 8 | |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Amount | ||
Actual, Amount | $ 105,472 | |
Minimum Capital Requirement, Amount | 28,000 | |
Minimum To Be Well Capitalized, Amount | $ 40,445 | |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | ||
Actual, Ratio (as a percent) | 16.95% | |
Minimum Capital Requirement, Ratio (as a percent) | 4.50% | |
Minimum To Be Well Capitalized, Ratio (as a percent) | 6.50% | |
Tier 1 Capital (to Average Assets), Amount | ||
Actual, Amount | $ 105,472 | |
Minimum Capital Requirement, Amount | 57,425 | |
Minimum To Be Well Capitalized, Amount | $ 71,782 | |
Tier 1 Capital (to Average Assets), Ratio | ||
Actual, Ratio (as a percent) | 7.35 | |
Minimum Capital Requirement, Ratio (as a percent) | 4 | |
Minimum To Be Well Capitalized, Ratio (as a percent) | 5 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) | 6 Months Ended |
Jun. 30, 2021shares | |
RSUs | |
Share-based Compensation | |
Number of shares of common stock per award | 1 |
DSUs | |
Share-based Compensation | |
Number of shares of common stock per award | 1 |
Vesting period | 1 year |
Settlement period | 30 days |
PSUs | |
Share-based Compensation | |
Number of shares of common stock per award | 1 |
Minimum | RSUs | |
Share-based Compensation | |
Requisite service periods | 1 year |
Maximum | RSUs | |
Share-based Compensation | |
Requisite service periods | 5 years |
Stock-based Compensation - Awar
Stock-based Compensation - Award Status (Details) - Options - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Shares | ||
Outstanding at beginning of year (in shares) | 39,085 | |
Expired (in shares) | (6,379) | |
Outstanding at end of year (in shares) | 32,706 | 39,085 |
Exercisable at end of year (in shares) | 32,706 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of year (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, Outstanding | 5 years 4 months 17 days | 5 years 10 months 17 days |
Weighted-Average Remaining Contractual Life, Exercisable | 5 years 4 months 17 days |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted , Performance and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | May 19, 2021 | Mar. 24, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Additional disclosures | ||||||||
Compensation expense recognized | $ 2,437 | $ 1,069 | $ 3,885 | $ 2,208 | ||||
Period over which cost will be recognized | 3 years 2 months 12 days | 3 years | ||||||
RSUs | ||||||||
Shares | ||||||||
Non-vested at beginning of year (in shares) | 1,017,038 | 1,017,038 | ||||||
Granted (in shares) | 212,426 | |||||||
Dividend equivalents earned (in shares) | 22,573 | |||||||
Forfeited (in shares) | (19,907) | |||||||
Non-vested at end of year (in shares) | 1,232,130 | 1,232,130 | 1,017,038 | |||||
Weighted-Average Grant Date Fair Value | ||||||||
Non-vested at beginning of year (in dollars per share) | $ 23.87 | $ 23.87 | ||||||
Granted (in dollars per share) | 24.54 | |||||||
Dividend equivalents earned (in dollars per share) | 22.82 | |||||||
Forfeited (in dollars per share) | 25.04 | |||||||
Non-vested at end of year (in dollars per share) | $ 23.95 | $ 23.95 | $ 23.87 | |||||
Additional disclosures | ||||||||
Compensation expense recognized | $ 1,816 | 924 | $ 3,046 | 2,069 | ||||
DSUs | ||||||||
Shares | ||||||||
Non-vested at beginning of year (in shares) | 34,263 | 34,263 | ||||||
Granted (in shares) | 35,664 | |||||||
Dividend equivalents earned (in shares) | 2,459 | |||||||
Vested (in shares) | (1,452) | |||||||
Non-vested at end of year (in shares) | 70,934 | 70,934 | 34,263 | |||||
Vested and Outstanding at end of year (in shares) | 72,496 | 72,496 | ||||||
Weighted-Average Grant Date Fair Value | ||||||||
Non-vested at beginning of year (in dollars per share) | $ 17.18 | $ 17.18 | ||||||
Granted (in dollars per share) | 24.59 | |||||||
Dividend equivalents earned (in dollars per share) | 22.93 | |||||||
Vested (in dollars per share) | 22.63 | |||||||
Non-vested at end of year (in dollars per share) | $ 20.99 | 20.99 | $ 17.18 | |||||
Vested and Outstanding at end of year (in dollars per share) | $ 24.30 | $ 24.30 | ||||||
Additional disclosures | ||||||||
Compensation expense recognized | $ 353 | $ 145 | $ 511 | $ 139 | ||||
PSUs | ||||||||
Shares | ||||||||
Non-vested at beginning of year (in shares) | 15,724 | 15,724 | ||||||
Granted (in shares) | 28,344 | 99,159 | ||||||
Forfeited (in shares) | (459) | |||||||
Non-vested at end of year (in shares) | 114,424 | 114,424 | 15,724 | |||||
Weighted-Average Grant Date Fair Value | ||||||||
Non-vested at beginning of year (in dollars per share) | $ 16.25 | $ 16.25 | ||||||
Granted (in dollars per share) | 23.91 | |||||||
Forfeited (in dollars per share) | 23.48 | |||||||
Non-vested at end of year (in dollars per share) | $ 22.86 | $ 22.86 | $ 16.25 | |||||
Additional disclosures | ||||||||
Grant date fair value of the award | $ 700 | |||||||
Compensation expense recognized | $ 268 | $ 328 | ||||||
PSUs | Minimum | ||||||||
Additional disclosures | ||||||||
Vesting percentage (as a percent) | 0.00% | |||||||
PSUs | Maximum | ||||||||
Shares | ||||||||
Granted (in shares) | 39,682 | |||||||
Additional disclosures | ||||||||
Vesting percentage (as a percent) | 140.00% | |||||||
Market Based Performance Stock Units | ||||||||
Shares | ||||||||
Granted (in shares) | 70,815 | |||||||
Additional disclosures | ||||||||
Grant date fair value of the award | $ 1,700 | |||||||
Market Based Performance Stock Units | Minimum | ||||||||
Additional disclosures | ||||||||
Vesting percentage (as a percent) | 0.00% | |||||||
Market Based Performance Stock Units | Maximum | ||||||||
Shares | ||||||||
Granted (in shares) | 113,304 | |||||||
Additional disclosures | ||||||||
Vesting percentage (as a percent) | 160.00% | |||||||
2020 Equity Incentive Plan | RSUs | Members of management, including the Vice-Chairman of the Board | ||||||||
Shares | ||||||||
Granted (in shares) | 212,426 | |||||||
Additional disclosures | ||||||||
Grant date fair value of the award | $ 5,200 | |||||||
Accelerated vesting provision, minimum requisite service period | 1 year | |||||||
Vesting percentage (as a percent) | 100.00% | |||||||
2020 Equity Incentive Plan | RSUs | Members of management, including the Vice-Chairman of the Board | Minimum | ||||||||
Additional disclosures | ||||||||
Period over which cost will be recognized | 1 year | |||||||
2020 Equity Incentive Plan | RSUs | Members of management, including the Vice-Chairman of the Board | Maximum | ||||||||
Additional disclosures | ||||||||
Period over which cost will be recognized | 5 years | |||||||
2020 Equity Incentive Plan | DSUs | Directors and Advisory Directors | ||||||||
Shares | ||||||||
Granted (in shares) | 33,288 | |||||||
Additional disclosures | ||||||||
Grant date fair value of the award | $ 800 | |||||||
Period over which cost will be recognized | 1 year | |||||||
Vesting percentage (as a percent) | 100.00% | |||||||
2020 Equity Incentive Plan | DSUs | Directors | ||||||||
Shares | ||||||||
Granted (in shares) | 2,376 | |||||||
Additional disclosures | ||||||||
Grant date fair value of the award | $ 100 | |||||||
Period over which cost will be recognized | 1 year | |||||||
Vesting percentage (as a percent) | 100.00% |
Stock-based Compensation - Reco
Stock-based Compensation - Recognized and Unamortized Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation | |||||
Total stock-based compensation expense | $ 2,437 | $ 1,069 | $ 3,885 | $ 2,208 | |
Total unamortized stock-based compensation expense | 14,444 | $ 14,444 | $ 10,884 | ||
Weighted average period over which expense is to be recognized | 3 years 2 months 12 days | 3 years | |||
RSUs | |||||
Share-based Compensation | |||||
Total stock-based compensation expense | 1,816 | 924 | $ 3,046 | 2,069 | |
Total unamortized stock-based compensation expense | 12,094 | 12,094 | $ 10,411 | ||
PSUs | |||||
Share-based Compensation | |||||
Total stock-based compensation expense | 268 | 328 | |||
Total unamortized stock-based compensation expense | 1,690 | 1,690 | 179 | ||
DSUs | |||||
Share-based Compensation | |||||
Total stock-based compensation expense | 353 | $ 145 | 511 | $ 139 | |
Total unamortized stock-based compensation expense | $ 660 | $ 660 | $ 294 |
Stock-based Compensation - Shar
Stock-based Compensation - Shares Remaining Available for Issuance (Details) | Jun. 30, 2021shares |
2020 Equity Plan | |
Share-based Compensation | |
Shares Remaining Available for Issuance Pursuant to the Plans | 1,087,266 |
2021 Employee Stock Purchase Plan | |
Share-based Compensation | |
Shares Remaining Available for Issuance Pursuant to the Plans | 600,000 |
Outstanding Commitments and C_3
Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Credit Commitments and Contingencies | ||
Total commitments | $ 1,823,255 | $ 1,793,307 |
Commitments to extend credit | ||
Credit Commitments and Contingencies | ||
Total commitments | 1,785,205 | 1,754,370 |
Standby letters of credit | ||
Credit Commitments and Contingencies | ||
Total commitments | $ 38,050 | $ 38,937 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Interest rate swap - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Notional amount | $ 70,000 | $ 70,000 | $ 70,000 |
Weighted average fixed pay rates | 1.80% | 1.80% | 1.80% |
Weighted average variable 3 month LIBOR receive rates | 0.12% | 0.12% | 0.22% |
Weighted average maturity in years | 2 years 4 months 9 days | 2 years 10 months 6 days | |
Unrealized gains (losses), net of tax | $ (1,438) | $ (2,184) | |
Interest expense on swap transactions | $ 300 | 600 | |
Unrealized loss to be reclassified from OCI to interest expense during next twelve months | (300) | ||
Other liabilities | |||
Derivative [Line Items] | |||
Fair value recorded in other liabilities | $ 2,000 | $ 2,000 | $ 3,100 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - Interest rate contract - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||||
Cash pledged to secure obligations | $ 2,100 | $ 2,100 | $ 3,200 | ||
Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in OCI, net of tax | (69) | $ (10) | 341 | $ (2,247) | |
(Gain) loss reclassified from OCI to interest expense, net of tax | 206 | (139) | 405 | (150) | |
Net change in unrealized gains (losses) on cash flow hedges | $ 137 | $ (149) | $ 746 | $ (2,397) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Forward Sales Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Interest rate lock commitments | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | $ 25,373 | $ 25,373 | $ 45,004 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other assets | 496 | 496 | 1,201 | ||
Interest rate lock commitments | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 172 | 172 | 118 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other liabilities | 3 | 3 | 1 | ||
Forward sales commitments | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | 172 | 172 | 978 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other assets | 3 | 3 | 32 | ||
Forward sales commitments | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 42,043 | 42,043 | 84,964 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other liabilities | 1,361 | 1,361 | 2,662 | ||
Interest rate lock commitments and forward sales commitments | Designated as hedging instrument | |||||
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income | |||||
Net gains (losses) | (865) | $ (2,565) | (1,213) | $ (4,763) | |
Interest rate lock commitments and forward sales commitments | Other assets | Designated as hedging instrument | |||||
Derivative Financial Instruments | |||||
Notional amount | 25,545 | 25,545 | 45,982 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other assets | 499 | 499 | 1,233 | ||
Interest rate lock commitments and forward sales commitments | Other liabilities | Designated as hedging instrument | |||||
Derivative Financial Instruments | |||||
Notional amount | 42,215 | 42,215 | 85,082 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other liabilities | 1,364 | 1,364 | $ 2,663 | ||
Mortgage revenue | Interest rate lock commitments | Designated as hedging instrument | |||||
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income | |||||
Gross gains | 493 | 2,213 | 965 | 7,062 | |
Mortgage revenue | Forward sales commitments | Designated as hedging instrument | |||||
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income | |||||
Gross (losses) | $ (1,358) | $ (4,778) | $ (2,178) | $ (11,825) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Interest Rate Swaps Not Designated as Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Interest rate swap | |||||
Gains and losses on these derivative assets and liabilities recorded in non-interest expense in the unaudited Consolidated Statements of Income | |||||
Cash pledged to secure obligations | $ 28,300 | $ 28,300 | $ 36,000 | ||
Interest rate swap | Not designated as hedging | |||||
Derivative Financial Instruments | |||||
Variable rate, commercial loans that are supported by the interest rate swap contracts | 408,500 | 408,500 | 395,000 | ||
Notional Amount, Derivative Asset | 408,477 | 408,477 | 394,954 | ||
Notional Amount, Derivative Liability | 408,477 | 408,477 | 394,954 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other assets | 23,354 | 23,354 | 32,685 | ||
Fair value recorded in other liabilities | 23,354 | 23,354 | 32,685 | ||
Interest rate swaps - pay floating, receive fixed | Not designated as hedging | |||||
Derivative Financial Instruments | |||||
Notional Amount, Derivative Asset | 326,513 | 326,513 | 394,954 | ||
Notional Amount, Derivative Liability | 81,964 | 81,964 | |||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other assets | 21,981 | 21,981 | 32,685 | ||
Fair value recorded in other liabilities | 1,373 | 1,373 | |||
Interest rate swaps - pay fixed, receive floating | Not designated as hedging | |||||
Derivative Financial Instruments | |||||
Notional Amount, Derivative Asset | 81,964 | 81,964 | |||
Notional Amount, Derivative Liability | 326,513 | 326,513 | 394,954 | ||
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||||
Fair value recorded in other assets | 1,373 | 1,373 | |||
Fair value recorded in other liabilities | 21,981 | 21,981 | $ 32,685 | ||
Non-interest expense | Interest rate swap | |||||
Gains and losses on these derivative assets and liabilities recorded in non-interest expense in the unaudited Consolidated Statements of Income | |||||
Gain (loss) pay, floating receive fixed | 1,264 | $ 2,861 | (9,331) | $ 26,339 | |
Gain (loss) pay fixed receive floating | $ (1,264) | $ (2,861) | $ 9,331 | $ (26,339) |
Fair Value Measurements - Gener
Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | $ 3,464,517 | $ 2,261,187 |
Equity securities | 13,950 | 5,530 |
Loans held for sale, at fair value | 17,834 | 42,813 |
U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 211,893 | 27,837 |
Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 50,998 | 69,519 |
Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 301,342 | 304,711 |
Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 514,052 | 418,616 |
Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 1,842,194 | 1,368,315 |
Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 246,997 | |
Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 297,041 | 72,189 |
Recurring basis | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 13,950 | 5,530 |
Loans held for sale, at fair value | 17,834 | 42,813 |
Recurring basis | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative asset | 23,853 | 33,918 |
Recurring basis | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liability | 26,730 | 38,403 |
Recurring basis | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 211,893 | 27,837 |
Recurring basis | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 50,998 | 69,519 |
Recurring basis | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 301,342 | 304,711 |
Recurring basis | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 514,052 | 418,616 |
Recurring basis | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 1,842,194 | 1,368,315 |
Recurring basis | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 246,997 | |
Recurring basis | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 297,041 | 72,189 |
Recurring basis | Level 2 | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 13,950 | 5,530 |
Loans held for sale, at fair value | 17,834 | 42,813 |
Recurring basis | Level 2 | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative asset | 23,853 | 33,918 |
Recurring basis | Level 2 | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liability | 26,730 | 38,403 |
Recurring basis | Level 2 | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 211,893 | 27,837 |
Recurring basis | Level 2 | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 50,998 | 69,519 |
Recurring basis | Level 2 | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 301,342 | 304,711 |
Recurring basis | Level 2 | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 514,052 | 418,616 |
Recurring basis | Level 2 | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 1,842,194 | 1,368,315 |
Recurring basis | Level 2 | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 246,997 | |
Recurring basis | Level 2 | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | $ 297,041 | $ 72,189 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Quantitative Information (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | $ 23,164 | $ 20,246 |
Non-recurring basis | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | 3,878 | 2,771 |
OREO | 51 | 106 |
Bank property held for sale | 7,379 | 10,676 |
Non-recurring basis | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | 3,878 | 2,771 |
OREO | 51 | 106 |
Bank property held for sale | 7,379 | 10,676 |
Non-recurring basis | Level 3 | Appraisal of collateral | Loans evaluated individually | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | 3,878 | 2,771 |
Non-recurring basis | Level 3 | Appraisal of collateral | OREO | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO | 51 | 106 |
Non-recurring basis | Level 3 | Appraisal of collateral or real estate listing price | Bank property held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale | $ 7,379 | $ 10,676 |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral | Loans evaluated individually | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually (percent) | (17) | (30) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral | Loans evaluated individually | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually (percent) | (100) | (100) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral | Loans evaluated individually | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually (percent) | (53.7) | (37) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO (percent) | (33) | (25) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO (percent) | (100) | (100) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO (percent) | (67.9) | (54.5) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral or real estate listing price | Bank property held for sale | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale (percent) | (6.2) | (6.2) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral or real estate listing price | Bank property held for sale | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale (percent) | (64.9) | (64.9) |
Appraisal adjustments | Non-recurring basis | Level 3 | Appraisal of collateral or real estate listing price | Bank property held for sale | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank property held for sale (percent) | (38.5) | (42.8) |
Fair Value Measurements - Segre
Fair Value Measurements - Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Portfolio loans, net | $ 7,090,240 | $ 6,713,129 |
Financial liabilities: | ||
Short-term borrowings | 30,168 | 4,658 |
Junior subordinated debt owed to unconsolidated trusts | 71,551 | 71,468 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 920,810 | 688,537 |
Level 1 | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 920,810 | 688,537 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Accrued interest receivable | 32,689 | 33,240 |
Financial liabilities: | ||
Time deposits | 1,115,596 | 1,119,348 |
Securities sold under agreements to repurchase | 207,266 | 175,614 |
Short-term borrowings | 30,168 | 4,658 |
Long-term debt | 52,409 | 4,757 |
Junior subordinated debt owed to unconsolidated trusts | 71,551 | 71,468 |
Accrued interest payable | 3,013 | 3,401 |
Level 2 | Fair Value | ||
Financial assets: | ||
Accrued interest receivable | 32,689 | 33,240 |
Financial liabilities: | ||
Time deposits | 1,121,554 | 1,132,107 |
Securities sold under agreements to repurchase | 207,266 | 175,614 |
Short-term borrowings | 30,169 | 4,661 |
Long-term debt | 52,532 | 5,014 |
Junior subordinated debt owed to unconsolidated trusts | 62,141 | 59,943 |
Accrued interest payable | 3,013 | 3,401 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Portfolio loans, net | 7,090,240 | 6,713,129 |
Mortgage servicing rights | 10,153 | 10,912 |
Other servicing rights | 1,573 | 1,434 |
Level 3 | Fair Value | ||
Financial assets: | ||
Portfolio loans, net | 7,161,247 | 6,755,425 |
Mortgage servicing rights | 12,187 | 11,107 |
Other servicing rights | 2,084 | 1,966 |
Level 3 | Senior notes | Carrying Amount | ||
Financial liabilities: | ||
Long-term debt | 39,876 | 39,809 |
Level 3 | Senior notes | Fair Value | ||
Financial liabilities: | ||
Long-term debt | 40,900 | 40,104 |
Level 3 | Subordinated debt | Carrying Amount | ||
Financial liabilities: | ||
Long-term debt | 182,503 | 182,226 |
Level 3 | Subordinated debt | Fair Value | ||
Financial liabilities: | ||
Long-term debt | $ 184,725 | $ 187,697 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income per share calculations for basic and diluted methods | ||||
Net income | $ 29,766 | $ 25,806 | $ 67,582 | $ 41,170 |
Shares: | ||||
Weighted average common shares outstanding | 55,050,071 | 54,489,403 | 54,762,563 | 54,575,595 |
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method (in shares) | 680,812 | 215,870 | 622,379 | 231,575 |
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation | 55,730,883 | 54,705,273 | 55,384,942 | 54,807,170 |
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.47 | $ 1.23 | $ 0.75 |
Diluted earnings per common share (in dollars per share) | $ 0.53 | $ 0.47 | $ 1.22 | $ 0.75 |
Total anti-dilutive common stock equivalents | 86,080 | 406,993 | 222,180 | 406,646 |
Options | ||||
Shares: | ||||
Total anti-dilutive common stock equivalents | 39,525 | 39,525 | ||
RSUs and DSUs | ||||
Shares: | ||||
Total anti-dilutive common stock equivalents | 367,468 | 121,698 | 367,121 | |
PSUs | ||||
Shares: | ||||
Total anti-dilutive common stock equivalents | 86,080 | 100,482 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in accumulated other comprehensive income (loss) by component, net of tax | ||||
Beginning balance | $ 1,265,822 | $ 1,217,585 | $ 1,270,069 | $ 1,220,434 |
Unrealized gains (losses) on debt securities available for sale: | ||||
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect | (2,700) | (1,670) | 9,293 | (10,259) |
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax | 6,769 | 4,187 | (23,310) | 25,684 |
Amounts reclassified from accumulated other comprehensive income, Tax Effect | 1 | 41 | 8 | 489 |
Amounts reclassified from accumulated other comprehensive income, Net of Tax | (2) | (102) | (20) | (1,210) |
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized holding gains (losses) on cash flow hedges, Tax Effect | 28 | 4 | (136) | 896 |
Unrealized holding gains (losses) on cash flow hedges, Net of Tax | (69) | (10) | 341 | (2,247) |
Amounts reclassified from accumulated other comprehensive income, Tax Effect | (82) | 56 | (161) | 60 |
Amounts reclassified from accumulated other comprehensive income, Net of Tax | 206 | (139) | 405 | (150) |
Ending balance | 1,345,691 | 1,236,084 | 1,345,691 | 1,236,084 |
Accumulated other comprehensive income (loss) | ||||
Changes in accumulated other comprehensive income (loss) by component, net of tax | ||||
Beginning balance | 3,821 | 33,101 | 33,309 | 14,960 |
Unrealized gains (losses) on cash flow hedges: | ||||
Accumulated other comprehensive income (loss) ending balance period, Before Tax | 15,001 | 51,803 | 15,001 | 51,803 |
Accumulated other comprehensive income (loss) ending balance period, Tax Effect | (4,276) | (14,766) | (4,276) | (14,766) |
Ending balance | 10,725 | 37,037 | 10,725 | 37,037 |
Unrealized gains (losses) on debt securities available for sale | ||||
Changes in accumulated other comprehensive income (loss) by component, net of tax | ||||
Accumulated other comprehensive income (loss) beginning balance period, Before Tax | 7,547 | 49,722 | 49,644 | 21,192 |
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect | (2,151) | (14,173) | (14,151) | (6,032) |
Beginning balance | 5,396 | 35,549 | 35,493 | 15,160 |
Unrealized gains (losses) on debt securities available for sale: | ||||
Unrealized holding gains (losses) on debt securities available for sale, Before Tax | 9,469 | 5,857 | (32,603) | 35,943 |
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect | (2,700) | (1,670) | 9,293 | (10,259) |
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax | 6,769 | 4,187 | (23,310) | 25,684 |
Amounts reclassified from accumulated other comprehensive income, Before Tax | (3) | (143) | (28) | (1,699) |
Amounts reclassified from accumulated other comprehensive income, Tax Effect | 1 | 41 | 8 | 489 |
Amounts reclassified from accumulated other comprehensive income, Net of Tax | (2) | (102) | (20) | (1,210) |
Unrealized gains (losses) on cash flow hedges: | ||||
Accumulated other comprehensive income (loss) ending balance period, Before Tax | 17,013 | 55,436 | 17,013 | 55,436 |
Accumulated other comprehensive income (loss) ending balance period, Tax Effect | (4,850) | (15,802) | (4,850) | (15,802) |
Ending balance | 12,163 | 39,634 | 12,163 | 39,634 |
Unrealized gains (losses) on cash flow hedges | ||||
Changes in accumulated other comprehensive income (loss) by component, net of tax | ||||
Accumulated other comprehensive income (loss) beginning balance period, Before Tax | (2,203) | (3,424) | (3,055) | (280) |
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect | 628 | 976 | 871 | 80 |
Beginning balance | (1,575) | (2,448) | (2,184) | (200) |
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized holding gains (losses) on cash flow hedges, Before Tax | (97) | (14) | 477 | (3,143) |
Unrealized holding gains (losses) on cash flow hedges, Tax Effect | 28 | 4 | (136) | 896 |
Unrealized holding gains (losses) on cash flow hedges, Net of Tax | (69) | (10) | 341 | (2,247) |
Amounts reclassified from accumulated other comprehensive income, Before Tax | 288 | (195) | 566 | (210) |
Amounts reclassified from accumulated other comprehensive income, Tax Effect | (82) | 56 | (161) | 60 |
Amounts reclassified from accumulated other comprehensive income, Net of Tax | 206 | (139) | 405 | (150) |
Accumulated other comprehensive income (loss) ending balance period, Before Tax | (2,012) | (3,633) | (2,012) | (3,633) |
Accumulated other comprehensive income (loss) ending balance period, Tax Effect | 574 | 1,036 | 574 | 1,036 |
Ending balance | $ (1,438) | $ (2,597) | $ (1,438) | $ (2,597) |
Operating Segments and Relate_3
Operating Segments and Related Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Operating Segments and Related Information | |||||
Number of reportable segments | segment | 3 | ||||
Number of operating segments | segment | 3 | ||||
Goodwill | $ 317,521 | $ 317,521 | $ 311,536 | ||
Total Assets | 12,415,449 | 12,415,449 | 10,544,047 | ||
Net interest income | 64,542 | $ 70,813 | 129,435 | $ 140,246 | |
Non-interest income: | 33,011 | 27,964 | 64,456 | 55,481 | |
Non-interest expense: | 62,625 | 53,068 | 117,124 | 113,582 | |
Income before income taxes | 36,628 | 32,818 | 85,263 | 52,038 | |
Net income: | 29,766 | 25,806 | 67,582 | 41,170 | |
Operating segments | Banking | |||||
Operating Segments and Related Information | |||||
Goodwill | 294,421 | 294,421 | 288,436 | ||
Total Assets | 12,301,878 | 12,301,878 | 10,462,673 | ||
Net interest income | 68,250 | 73,318 | 136,705 | 144,891 | |
Non-interest income: | 14,938 | 14,026 | 27,822 | 27,194 | |
Non-interest expense: | 48,421 | 41,659 | 90,512 | 90,174 | |
Income before income taxes | 36,467 | 32,794 | 82,511 | 51,804 | |
Net income: | 29,238 | 25,985 | 64,766 | 40,909 | |
Operating segments | Remittance Processing | |||||
Operating Segments and Related Information | |||||
Goodwill | 8,992 | 8,992 | 8,992 | ||
Total Assets | 46,761 | 46,761 | 46,553 | ||
Net interest income | 21 | 19 | 41 | 38 | |
Non-interest income: | 4,809 | 3,962 | 9,670 | 8,031 | |
Non-interest expense: | 4,277 | 3,243 | 8,567 | 6,146 | |
Income before income taxes | 553 | 738 | 1,144 | 1,923 | |
Net income: | 401 | 528 | 830 | 1,388 | |
Operating segments | Wealth Management | |||||
Operating Segments and Related Information | |||||
Goodwill | 14,108 | 14,108 | 14,108 | ||
Total Assets | 63,529 | 63,529 | 46,504 | ||
Non-interest income: | 13,000 | 10,310 | 25,587 | 22,019 | |
Non-interest expense: | 6,717 | 6,254 | 13,282 | 13,228 | |
Income before income taxes | 6,283 | 4,056 | 12,305 | 8,791 | |
Net income: | 4,884 | 3,082 | 9,566 | 6,681 | |
Other | |||||
Operating Segments and Related Information | |||||
Total Assets | 3,281 | 3,281 | $ (11,683) | ||
Net interest income | (3,729) | (2,524) | (7,311) | (4,683) | |
Non-interest income: | 264 | (334) | 1,377 | (1,763) | |
Non-interest expense: | 3,210 | 1,912 | 4,763 | 4,034 | |
Income before income taxes | (6,675) | (4,770) | (10,697) | (10,480) | |
Net income: | $ (4,757) | $ (3,789) | $ (7,580) | $ (7,808) |
Leases - Lease-related balances
Leases - Lease-related balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Leases | ||
Right of use assets | $ 8,228 | $ 7,714 |
Lease liabilities | $ 8,280 | $ 7,757 |
Weighted average lease term (in years) | 5 years 3 months 10 days | 5 years 11 months 4 days |
Weighted average discount rate (in percent) | 2.38% | 2.82% |
Option to extend | true |
Leases - Lease Cost and Other L
Leases - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Costs | ||||
Operating lease costs | $ 608 | $ 635 | $ 1,172 | $ 1,255 |
Variable lease costs | 126 | 131 | 300 | 302 |
Short-term lease costs | 16 | 15 | 34 | 30 |
Total lease cost | 750 | 781 | 1,506 | 1,587 |
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating lease cash flows - Fixed payments | 590 | 612 | 1,136 | 1,223 |
Operating lease cash flows - Liability reduction | 546 | 534 | 1,041 | 1,064 |
Right of use assets obtained during the period in exchange for operating lease liabilities | 1,462 | 1,610 | 128 | |
Rent expense under operating leases, included in net occupancy and equipment expense | 750 | $ 781 | 1,506 | $ 1,587 |
CAC | ||||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Right of use assets obtained during the period in exchange for operating lease liabilities | $ 371 | $ 371 |
Leases - Future Rent Commitment
Leases - Future Rent Commitments (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Projected minimum rental payments under the terms of leases | |
Remainder of 2021 | $ 1,129 |
2022 | 1,945 |
2023 | 1,724 |
2024 | 1,289 |
2025 | 1,050 |
Thereafter | 1,708 |
Amounts representing interest | (565) |
Present value of net future minimum lease payments | $ 8,280 |