Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
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, $.001 par value | |
Trading Symbol | BUSE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,276,920 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000314489 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 119,891 | $ 102,983 |
Interest-bearing deposits | 359,337 | 733,112 |
Total cash and cash equivalents | 479,228 | 836,095 |
Debt securities available for sale | 2,946,055 | 3,981,251 |
Debt securities held to maturity | 976,081 | |
Equity securities | 19,520 | 13,571 |
Loans held for sale (2022 at LOCOM, 2021 at fair value) | 6,765 | 23,875 |
Portfolio loans (net of ACL of $88,213 at March 31, 2022, and $87,887 at December 31, 2021) | 7,184,660 | 7,101,111 |
Premises and equipment, net | 133,658 | 136,147 |
Right of use assets | 9,014 | 10,533 |
Goodwill | 317,873 | 317,873 |
Other intangible assets, net | 55,040 | 58,051 |
Cash surrender value of bank owned life insurance | 177,703 | 176,940 |
Other assets | 261,912 | 204,242 |
Total assets | 12,567,509 | 12,859,689 |
Deposits: | ||
Noninterest-bearing | 3,568,651 | 3,670,267 |
Interest-bearing | 7,023,185 | 7,098,310 |
Total deposits | 10,591,836 | 10,768,577 |
Securities sold under agreements to repurchase | 255,668 | 270,139 |
Short-term borrowings | 17,683 | 17,678 |
Long-term debt | 42,881 | 46,056 |
Senior notes, net of unamortized issuance costs | 39,978 | 39,944 |
Subordinated notes, net of unamortized issuance costs | 182,910 | 182,773 |
Junior subordinated debt owed to unconsolidated trusts | 71,678 | 71,635 |
Lease liabilities | 9,067 | 10,591 |
Other liabilities | 137,783 | 133,184 |
Total liabilities | 11,349,484 | 11,540,577 |
Outstanding commitments and contingent liabilities (see Notes 9 and 15) | ||
Stockholders' Equity | ||
Common stock, ($.001 par value; 100,000,000 shares authorized) | 58 | 58 |
Additional paid-in capital | 1,318,701 | 1,316,984 |
Retained earnings | 107,890 | 92,463 |
AOCI | (137,605) | (23,758) |
Total stockholders' equity before treasury stock | 1,289,044 | 1,385,747 |
Treasury stock at cost | (71,019) | (66,635) |
Total stockholders' equity | 1,218,025 | 1,319,112 |
Total liabilities and stockholders' equity | $ 12,567,509 | $ 12,859,689 |
Shares | ||
Common shares issued | 58,116,970 | 58,116,970 |
Less treasury shares | (2,838,185) | (2,682,060) |
Common shares outstanding | 55,278,785 | 55,434,910 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Portfolio Loans, allowance for loan losses (in dollars) | $ 88,213 | $ 87,887 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Interest and fees on loans | $ 60,882 | $ 62,565 |
Interest and dividends on investment securities: | ||
Taxable interest income | 14,094 | 8,611 |
Non-taxable interest income | 838 | 1,005 |
Other interest income | 277 | 150 |
Total interest income | 76,091 | 72,331 |
Interest expense | ||
Deposits | 2,124 | 3,732 |
Federal funds purchased and securities sold under agreements to repurchase | 59 | 57 |
Short-term borrowings | 89 | 19 |
Long-term debt | 226 | 29 |
Senior notes | 400 | 400 |
Subordinated notes | 2,483 | 2,476 |
Junior subordinated debt owed to unconsolidated trusts | 654 | 725 |
Total interest expense | 6,035 | 7,438 |
Net interest income | 70,056 | 64,893 |
Provision for credit losses | (253) | (6,796) |
Net interest income after provision for credit losses | 70,309 | 71,689 |
Noninterest income | ||
Income on bank owned life insurance | 884 | 964 |
Realized net gains (losses) on securities | 106 | 25 |
Unrealized net gains (losses) recognized on equity securities | (720) | 1,616 |
Other income | 4,764 | 932 |
Total noninterest income | 35,772 | 31,445 |
Noninterest expense | ||
Salaries, wages, and employee benefits | 39,354 | 30,384 |
Data processing | 4,978 | 4,280 |
Net occupancy expense of premises | 5,067 | 4,563 |
Furniture and equipment expenses | 2,030 | 2,026 |
Professional fees | 1,507 | 1,945 |
Amortization of intangible assets | 3,011 | 2,401 |
Interchange expense | 1,545 | 1,484 |
Other expense | 12,884 | 7,416 |
Total noninterest expense | 70,376 | 54,499 |
Income before income taxes | 35,705 | 48,635 |
Income taxes | 7,266 | 10,819 |
Net income | $ 28,439 | $ 37,816 |
Basic earnings per common share (in dollars per share) | $ 0.51 | $ 0.69 |
Diluted earnings per common share (in dollars per share) | 0.51 | 0.69 |
Dividends declared per share of common stock (in dollars per share) | $ 0.23 | $ 0.23 |
Wealth management fees | ||
Noninterest income | ||
Non-interest income | $ 15,779 | $ 12,584 |
Fees for customer services | ||
Noninterest income | ||
Non-interest income | 8,907 | 8,037 |
Remittance processing | ||
Noninterest income | ||
Non-interest income | 5,077 | 4,621 |
Mortgage revenue | ||
Noninterest income | ||
Mortgage revenue | $ 975 | $ 2,666 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income | $ 28,439 | $ 37,816 |
Unrealized gains (losses) on debt securities available for sale: | ||
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $29,726 and $11,993, respectively | (74,556) | (30,079) |
Unrealized gains (losses) on debt securities transferred to held to maturity from available for sale, net of taxes of $13,812 and $-, respectively | (34,644) | |
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $30 and $7, respectively | (76) | (18) |
Amortization of unrealized losses on securities transferred to held to maturity, net of taxes of ($252) and $-, respectively | 631 | |
Net change in unrealized gains (losses) on debt securities available for sale | (108,645) | (30,097) |
Unrealized gains (losses) on cash flow hedges: | ||
Net unrealized holding gains (losses) on cash flow hedges, net of taxes of $1,931 and ($164), respectively | (4,845) | 410 |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $143 and ($79), respectively | (357) | 199 |
Net change in unrealized gains (losses) on cash flow hedges | (5,202) | 609 |
Net change in AOCI | (113,847) | (29,488) |
Total comprehensive income (loss) | $ (85,408) | $ 8,328 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net unrealized holding gains (losses) on debt securities available for sale, taxes | $ 29,726 | $ 11,993 |
Net unrealized (gains) losses on debt securities transferred from held to maturity to available for sale, taxes | 13,812 | |
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, taxes | 30 | $ 7 |
Amortiztion of frozen held maturity OCI mark, net of taxes | (252) | |
Net unrealized holding gains (losses) on cash flow hedges, taxes | 1,931 | |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, taxes | $ 143 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | AOCI | Treasury Stock | Total |
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 | 37,816 | 37,816 | ||||
OCI, net of tax | (29,488) | (29,488) | ||||
Repurchase of stock | (1,510) | (1,510) | ||||
Repurchase of stock (in shares) | (59,000) | |||||
Cash dividends common stock | (12,513) | (12,513) | ||||
Stock dividend equivalents RSUs | 236 | (236) | ||||
Stock-based compensation | 1,448 | 1,448 | ||||
Ending balance at Mar. 31, 2021 | $ 56 | 1,255,044 | 45,897 | 3,821 | (38,996) | 1,265,822 |
Ending Balance (in shares) at Mar. 31, 2021 | 54,345,379 | |||||
Beginning balance at Dec. 31, 2021 | $ 58 | 1,316,984 | 92,463 | (23,758) | (66,635) | 1,319,112 |
Beginning Balance (in shares) at Dec. 31, 2021 | 55,434,910 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net income | 28,439 | 28,439 | ||||
OCI, net of tax | (113,847) | (113,847) | ||||
Repurchase of stock | (5,220) | (5,220) | ||||
Repurchase of stock (in shares) | (188,614) | |||||
Issuance of treasury stock for ESPP | (106) | 647 | 541 | |||
Issuance of treasury stock for ESPP (in shares) | 25,140 | |||||
Net issuance of treasury stock for RSU/DSU vesting and related tax | (359) | 189 | (170) | |||
Net issuance of treasury stock for RSU/DSU vesting and related tax (in shares) | 7,349 | |||||
Cash dividends common stock | (12,739) | (12,739) | ||||
Stock dividend equivalents RSUs | 273 | (273) | ||||
Stock-based compensation | 1,909 | 1,909 | ||||
Ending balance at Mar. 31, 2022 | $ 58 | $ 1,318,701 | $ 107,890 | $ (137,605) | $ (71,019) | $ 1,218,025 |
Ending Balance (in shares) at Mar. 31, 2022 | 55,278,785 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Cash dividends, common stock (in dollars per share) | $ 0.23 | $ 0.23 |
Stock dividends, restricted stock units (in dollars per share) | $ 0.23 | $ 0.23 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows Provided by (Used in) Operating Activities | ||
Net income | $ 28,439 | $ 37,816 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | (253) | (6,796) |
Amortization of intangible assets | 3,011 | 2,401 |
Amortization of mortgage servicing rights | 980 | 1,616 |
Amortization of NMTC | 1,341 | 1,829 |
Depreciation and amortization of premises and equipment | 2,756 | 2,808 |
Net amortization (accretion) on portfolio loans | (36) | (3,375) |
Net amortization (accretion) of premium (discount) on investment securities | 5,930 | 4,554 |
Net amortization (accretion) of premium (discount) on time deposits | (124) | (246) |
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings | 212 | 214 |
Impairment of OREO and other repossessed assets | 611 | |
Impairment of mortgage servicing rights | (9) | (508) |
Unrealized (gains) losses recognized on equity securities | 720 | (1,616) |
(Gain) loss on sales of debt securities, net | (106) | (25) |
(Gain) loss on sales of loans, net | (1,089) | (3,369) |
(Gain) loss on sales of OREO | (1) | |
(Gain) loss on sales of premises and equipment | (838) | (134) |
(Gain) loss on life insurance proceeds | 1 | |
(Increase) decrease in cash surrender value of bank owned life insurance | (885) | (964) |
Provision for deferred income taxes | (157) | 2,448 |
Stock-based compensation | 1,909 | 1,448 |
Mortgage loans originated for sale | (33,506) | (91,479) |
Proceeds from sales of mortgage loans | 51,350 | 98,307 |
Net change in operating assets and liabilities: | ||
(Increase) decrease in other assets | (16,429) | (1,569) |
Increase (decrease) in other liabilities | (1,323) | 750 |
Net cash provided by (used in) operating activities | 42,505 | 44,109 |
Cash Flows Provided by (Used in) Investing Activities | ||
Purchases of equity securities | (5,948) | (998) |
Purchases of debt securities available for sale | (274,964) | (789,884) |
Proceeds from sales of equity securities | 998 | |
Proceeds from paydowns and maturities of debt securities held to maturity | 9,585 | |
Proceeds from paydowns and maturities of debt securities available for sale | 166,709 | 207,490 |
Net (increase) decrease in loans | (83,392) | 37,929 |
Cash paid for premiums on bank-owned life insurance | (96) | (97) |
Proceeds from life insurance | 217 | |
Purchases of premises and equipment | (734) | (1,911) |
Proceeds from disposition of premises and equipment | 1,305 | 1,759 |
Proceeds from sales of OREO | 331 | 294 |
Net cash provided by (used in) investing activities | (186,987) | (544,420) |
Cash Flows Provided by (Used in) Financing Activities | ||
Net increase (decrease) in deposits | (176,617) | 196,244 |
Net change in federal funds purchased and securities sold under agreements to repurchase | (14,471) | 34,518 |
Repayment of FHLB advances | (168) | (163) |
Repayment of other borrowings | (3,000) | |
Cash dividends paid | (12,739) | (12,513) |
Purchase of treasury stock | (5,220) | (1,510) |
Cash paid for withholding taxes on stock-based payments | (170) | |
Net cash provided by (used in) financing activities | (212,385) | 216,576 |
Net increase (decrease) in cash and cash equivalents | (356,867) | (283,735) |
Cash and cash equivalents, beginning of period | 836,095 | 688,537 |
Cash and cash equivalents, ending of period | 479,228 | 404,802 |
Cash payments for: | ||
Interest | 3,647 | $ 5,168 |
Non-cash investing and financing activities: | ||
OREO acquired in settlement of loans | 132 | |
Transfer of debt securities available for sale to held to maturity | $ 985,199 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 $12.6 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, FirsTech, and Wealth Management. Banking The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiary, Busey Bank, with 58 banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. FirsTech The FirsTech operating segment provides comprehensive and innovative payment technology solutions that include, but are not limited to, text-based mobile bill pay; electronic payment concentration delivered to Automated Clearing House networks, money management, and credit card networks; walk-in payment processing for customers at retail pay agents; customer service payments made over a telephone; direct debit services; and lockbox remittance processing for customers to make payments by mail. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. Wealth Management 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 2021 Annual Report. These interim unaudited consolidated financial statements serve to update our 2021 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. 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 debt securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. Change in Accounting Principle Effective January 1, 2022, the Company elected to account for all newly originated loans held for sale at LOCOM. Prior to this change, the Company accounted for loans held for sale at fair value. In the first quarter of 2022, this change did not have a material impact on our results of operations. Impact of Recently Adopted Accounting Standards ASU 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” ASU 2021-05 “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” ASU 2021-04 “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” Recently Issued Accounting Standards ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” “Investments—Debt Securities” ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method” “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” “Revenue from Contracts with Customers” COVID-19 Throughout the COVID-19 pandemic, First Busey operated as an essential community resource, providing approximately $1.1 billion in payroll assistance for small businesses and select nonprofits through low-interest, 100% government-guaranteed loans as part of the PPP. First Busey had $32.5 million in PPP loans outstanding, with an amortized cost of $31.8 million, as of March 31, 2022. In comparison, First Busey had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million, as of December 31, 2021. 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. There were no significant subsequent events for the quarter ended March 31, 2022, through the filing date of these unaudited consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
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 has enhanced the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. GSB’s results of operations were included in the Company’s results of operations beginning June 1, 2021. First Busey operated GSB as a separate banking subsidiary until August 14, 2021, when it was merged with and into Busey Bank. At that time, all GSB banking centers became branches of Busey Bank. Under the terms of the definitive agreement, each share of CAC common stock issued and outstanding as of the effective date was converted into the right to receive 444.4783 shares of First Busey common stock and $14,173.96 in cash, which reflects adjustments made to the cash consideration in accordance with the terms of the definitive agreement. The fair value of the common shares of First Busey issued as part of the consideration paid to the holders of CAC common stock was determined on the basis of the closing price of First Busey’s common stock on May 28, 2021, 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 $60.0 million, or $12,087.58 per share of CAC common stock, on May 28, 2021. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date as additional information regarding the closing date fair values becomes available. There were no fair value adjustments recorded during the first quarter of 2022, and the Company does not expect any further adjustments will be necessary. As the total consideration paid for CAC exceeded the estimated fair value of net assets acquired, goodwill of $6.3 million was recorded as a result of the acquisition. The amount of goodwill recognized as a result of this transaction is expected to be fully tax deductible for federal income tax purposes in accordance with the Company’s election pursuant to Section 338(h)(10) of the Internal Revenue Code. Goodwill recorded for this transaction reflects synergies expected from the acquisition and expansion within the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area, and was assigned to the Banking operating segment. During the three months ended March 31, 2022, First Busey incurred $0.8 million in pre-tax acquisition expenses related to the acquisition of CAC, comprised primarily of compensation expense and data processing expense. Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands) : CAC May 31, 2021 Assets acquired Cash and cash equivalents $ 298,637 Securities 702,367 Portfolio loans, net of ACL 430,470 Premises and equipment 17,034 Other intangible assets 17,340 Mortgage servicing rights 629 Other assets 8,176 Total assets acquired 1,474,653 Liabilities assumed Deposits 1,315,671 Other borrowings 16,651 Other liabilities 19,205 Total liabilities assumed 1,351,527 Net assets acquired $ 123,126 Consideration paid: Cash $ 70,358 Common stock 59,105 Total consideration paid $ 129,463 Goodwill $ 6,337 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 estimated, on the date of acquisition, that $4.2 million of the contractual cash flows specific to the PCD financial assets will not be collected . |
Debt Securities
Debt Securities | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities | |
Debt Securities | Note 3: Debt Securities During the three months ended March 31, 2022, a portion of the securities available for sale were transferred to securities held to maturity. The tables below provide the amortized cost, unrealized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands) As of March 31, 2022 Amortized Unrealized Fair Cost Gross Gains Gross Losses Value Debt securities available for sale U.S. Treasury securities $ 160,990 $ 16 $ (3,498) $ 157,508 Obligations of U.S. government corporations and agencies 34,069 243 (11) 34,301 Obligations of states and political subdivisions 308,514 1,378 (10,300) 299,592 Asset-backed securities 491,269 12 (2,677) 488,604 Commercial mortgage-backed securities 111,535 30 (4,063) 107,502 Residential mortgage-backed securities 1,678,891 629 (104,144) 1,575,376 Corporate debt securities 297,447 361 (14,636) 283,172 Total debt securities available for sale $ 3,082,715 $ 2,669 $ (139,329) $ 2,946,055 Debt securities held to maturity Commercial mortgage-backed securities $ 503,285 $ — $ (15,521) $ 487,764 Residential mortgage-backed securities 472,796 — (17,714) 455,082 Total debt securities held to maturity $ 976,081 $ — $ (33,235) $ 942,846 As of December 31, 2021 Amortized Unrealized Fair Cost Gross Gains Gross Losses Value Debt securities available for sale U.S. Treasury securities $ 166,768 $ 41 $ (1,047) $ 165,762 Obligations of U.S. government corporations and agencies 37,579 891 — 38,470 Obligations of states and political subdivisions 300,602 7,760 (1,493) 306,869 Asset-backed securities 492,055 295 (164) 492,186 Commercial mortgage-backed securities 625,339 3,425 (13,766) 614,998 Residential mortgage-backed securities 2,095,104 8,889 (34,680) 2,069,313 Corporate debt securities 296,076 1,081 (3,504) 293,653 Total debt securities available for sale $ 4,013,523 $ 22,382 $ (54,654) $ 3,981,251 Maturities of debt securities Amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below. Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands) As of March 31, 2022 Amortized Fair Cost Value Debt securities available for sale Due in one year or less $ 174,918 $ 174,182 Due after one year through five years 456,926 441,159 Due after five years through ten years 313,336 303,050 Due after ten years 2,137,535 2,027,664 Debt securities available for sale $ 3,082,715 $ 2,946,055 Debt securities held to maturity Due in one year or less $ — $ — Due after one year through five years 48,405 47,185 Due after five years through ten years 66,693 64,572 Due after ten years 860,983 831,089 Debt securities held to maturity $ 976,081 $ 942,846 Gains and losses on debt 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 March 31, 2022 2021 Realized gains and losses on debt securities Gross security gains $ 113 $ 25 Gross security (losses) (7) — Realized net gains (losses) on debt securities $ 106 $ 25 Debt securities with carrying amounts of $717.6 million on March 31, 2022, and $708.9 million on December 31, 2021, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required. Debt securities in an unrealized 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 March 31, 2022 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 $ 155,422 $ (3,498) $ — $ — $ 155,422 $ (3,498) Obligations of U.S. government corporations and agencies 390 (11) — — 390 (11) Obligations of states and political subdivisions 158,528 (9,277) 9,847 (1,023) 168,375 (10,300) Asset-backed securities 470,964 (2,677) — — 470,964 (2,677) Commercial mortgage-backed securities 87,087 (3,558) 7,203 (505) 94,290 (4,063) Residential mortgage-backed securities 1,054,313 (65,980) 393,830 (38,164) 1,448,143 (104,144) Corporate debt securities 216,592 (11,652) 39,598 (2,984) 256,190 (14,636) Debt securities available for sale with gross unrealized losses $ 2,143,296 $ (96,653) $ 450,478 $ (42,676) $ 2,593,774 $ (139,329) Debt securities held to maturity Commercial mortgage-backed securities $ 281,462 $ (9,329) $ 206,302 $ (6,192) $ 487,764 $ (15,521) Residential mortgage-backed securities 412,450 (15,940) 42,632 (1,774) 455,082 (17,714) Debt securities held to maturity with gross unrealized losses $ 693,912 $ (25,269) $ 248,934 $ (7,966) $ 942,846 $ (33,235) As of December 31, 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 $ 163,653 $ (1,047) $ — $ — $ 163,653 $ (1,047) Obligations of states and political subdivisions 92,680 (1,493) — — 92,680 (1,493) Asset-backed securities 89,983 (164) — — 89,983 (164) Commercial mortgage-backed securities 389,078 (10,186) 85,905 (3,580) 474,983 (13,766) Residential mortgage-backed securities 1,700,187 (33,453) 20,538 (1,227) 1,720,725 (34,680) Corporate debt securities 241,153 (3,504) — — 241,153 (3,504) Debt securities available for sale with gross unrealized losses $ 2,676,734 $ (49,847) $ 106,443 $ (4,807) $ 2,783,177 $ (54,654) Additional information about debt securities in an unrealized loss position is presented in the tables below (dollars in thousands) As of March 31, 2022 Available for Sale Held to Maturity Total Debt securities with gross unrealized losses, fair value $ 2,593,774 $ 942,846 $ 3,536,620 Gross unrealized losses on debt securities $ 139,329 $ 33,235 $ 172,564 Ratio of gross unrealized losses to debt securities with gross unrealized losses 5.4 % 3.5 % 4.9 % Count of debt securities 1,185 55 1,240 Count of debt securities in an unrealized loss position 645 55 700 As of December 31, 2021 Available for Sale Held to Maturity Total Debt securities with gross unrealized losses, fair value $ 2,783,177 $ — $ 2,783,177 Gross unrealized losses on debt securities $ 54,654 $ — $ 54,654 Ratio of gross unrealized losses to debt securities with gross unrealized losses 2.0 % — 2.0 % Count of debt securities 1,252 — 1,252 Count of debt securities in an unrealized loss position 373 — 373 Unrealized losses were related to changes in market interest rates and market conditions that do not represent credit-related impairments. The Company does not intend to sell securities that are in an unrealized loss position, and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, no ACL was recorded in relation to the Company’s debt securities, and the impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. As of March 31, 2022, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity. |
Portfolio Loans
Portfolio Loans | 3 Months Ended |
Mar. 31, 2022 | |
Portfolio Loans | |
Portfolio loans | Note 4: Portfolio Loans Loan Categories The Company’s lending can be summarized into five primary categories: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. Distributions of loan portfolio by loan category were as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Portfolio loans Commercial $ 1,906,595 $ 1,943,886 Commercial real estate 3,134,794 3,119,807 Real estate construction 445,428 385,996 Retail real estate 1,544,365 1,512,976 Retail other 241,691 226,333 Total portfolio loans 7,272,873 7,188,998 ACL (88,213) (87,887) Portfolio loans, net $ 7,184,660 $ 7,101,111 Net deferred loan origination costs included in the balances above were $10.6 million as of March 31, 2022, compared to $9.0 million as of December 31, 2021. Net accretable purchase accounting adjustments included in the balances above reduced loans by $7.7 million as of March 31, 2022, and $8.8 million as of December 31, 2021. Commercial balances include loans originated under the PPP with an amortized cost of $31.8 million as of March 31, 2022, and $75.0 million as of December 31, 2021. There were no retail real estate loans purchased during the three months ended March 31, 2022 or 2021. Risk Grading The Company utilizes a loan grading scale to assign a risk grade to all of its loans. A description of the general characteristics of each grade is as follows: ● Pass – This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards. ● Watch – This category includes loans that warrant a higher-than-average level of monitoring to ensure that weaknesses do not cause the inability of the credit to perform as expected. These loans are not necessarily a problem due to other inherent strengths of the credit, such as guarantor strength, but have above average concern and monitoring. ● Special mention – This category is for “Other Assets Specially Mentioned” loans that have potential weaknesses, which may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. ● Substandard – This category includes “Substandard” loans, determined in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. ● Substandard non-accrual – This category includes loans that have all the characteristics of a “Substandard” loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral with a value that is difficult to determine. All loans are graded at their inception. Commercial lending relationships that are $1.0 million or less are usually processed through an expedited underwriting process. Most commercial loans greater than $1.0 million are included in a portfolio review at least annually. Commercial loans greater than $0.35 million that have a grading of special mention or worse are typically reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more frequent review. The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands) As of March 31, 2022 Special Substandard Pass Watch Mention Substandard Non-accrual Total Portfolio loans Commercial $ 1,725,369 $ 73,471 $ 74,967 $ 26,028 $ 6,760 $ 1,906,595 Commercial real estate 2,769,016 262,411 53,195 47,567 2,605 3,134,794 Real estate construction 428,467 14,557 4 2,400 — 445,428 Retail real estate 1,523,791 11,352 2,062 4,071 3,089 1,544,365 Retail other 241,657 — — — 34 241,691 Total portfolio loans $ 6,688,300 $ 361,791 $ 130,228 $ 80,066 $ 12,488 $ 7,272,873 As of December 31, 2021 Special Substandard Pass Watch Mention Substandard Non-accrual Total Portfolio loans Commercial $ 1,747,756 $ 93,582 $ 69,427 $ 26,117 $ 7,004 $ 1,943,886 Commercial real estate 2,682,441 343,304 49,695 38,394 5,973 3,119,807 Real estate construction 369,797 13,793 6 2,400 — 385,996 Retail real estate 1,491,845 12,374 1,992 3,867 2,898 1,512,976 Retail other 226,262 — — — 71 226,333 Total portfolio loans $ 6,518,101 $ 463,053 $ 121,120 $ 70,778 $ 15,946 $ 7,188,998 Risk grades of portfolio loans, further sorted by origination year are as follows (dollars in thousands) As of March 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2022 2021 2020 2019 2018 Prior Loans Total Commercial Pass $ 220,582 $ 386,332 $ 187,571 $ 82,617 $ 80,606 $ 187,281 $ 580,380 $ 1,725,369 Watch 1,641 13,751 4,536 9,391 1,412 3,315 39,425 73,471 Special Mention 2,668 4,799 191 6,125 3,753 17,998 39,433 74,967 Substandard 1,736 1,586 3,222 3,248 1,561 6,550 8,125 26,028 Substandard non-accrual — 3,946 345 141 — 328 2,000 6,760 Total commercial 226,627 410,414 195,865 101,522 87,332 215,472 669,363 1,906,595 Commercial real estate Pass 287,524 961,636 608,378 349,992 216,247 330,243 14,996 2,769,016 Watch 22,162 33,489 23,614 110,412 22,540 48,163 2,031 262,411 Special Mention 5,765 5,971 12,850 2,321 7,375 18,814 99 53,195 Substandard 1,232 20,611 3,034 1,028 10,429 11,233 — 47,567 Substandard non-accrual — 111 172 359 1,946 17 — 2,605 Total commercial real estate 316,683 1,021,818 648,048 464,112 258,537 408,470 17,126 3,134,794 Real estate construction Pass 65,127 184,303 127,358 31,709 2,575 2,004 15,391 428,467 Watch 3,816 5,640 3,518 52 — 1,531 — 14,557 Special Mention — — — 4 — — — 4 Substandard — — 2,400 — — — — 2,400 Total real estate construction 68,943 189,943 133,276 31,765 2,575 3,535 15,391 445,428 Retail real estate Pass 114,026 490,691 205,598 99,087 74,589 332,410 207,390 1,523,791 Watch 1,629 1,208 1,830 1,628 1,269 172 3,616 11,352 Special Mention 145 1,892 25 — — — — 2,062 Substandard — 1,095 224 93 70 2,261 328 4,071 Substandard non-accrual — 242 118 — 236 1,935 558 3,089 Total retail real estate 115,800 495,128 207,795 100,808 76,164 336,778 211,892 1,544,365 Retail other Pass 36,922 54,381 19,799 22,563 12,982 5,594 89,416 241,657 Substandard non-accrual — 34 — — — — — 34 Total retail other 36,922 54,415 19,799 22,563 12,982 5,594 89,416 241,691 Total portfolio loans $ 764,975 $ 2,171,718 $ 1,204,783 $ 720,770 $ 437,590 $ 969,849 $ 1,003,188 $ 7,272,873 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2021 2020 2019 2018 2017 Prior Loans Total Commercial Pass $ 512,729 $ 228,811 $ 107,877 $ 84,873 $ 74,351 $ 122,418 $ 616,697 $ 1,747,756 Watch 13,847 5,913 14,274 5,060 1,361 2,866 50,261 93,582 Special Mention 7,062 898 5,961 4,025 6,790 11,845 32,846 69,427 Substandard 3,595 3,362 3,136 1,855 1,125 5,459 7,585 26,117 Substandard non-accrual 4,126 364 142 — 320 52 2,000 7,004 Total commercial 541,359 239,348 131,390 95,813 83,947 142,640 709,389 1,943,886 Commercial real estate Pass 969,548 637,550 425,850 235,928 200,373 198,002 15,190 2,682,441 Watch 51,560 38,820 123,324 48,088 46,761 32,608 2,143 343,304 Special Mention 9,542 7,060 6,585 10,098 6,357 9,870 183 49,695 Substandard 21,002 3,781 1,218 11,451 521 421 — 38,394 Substandard non-accrual 112 181 359 1,893 3,407 21 — 5,973 Total commercial real estate 1,051,764 687,392 557,336 307,458 257,419 240,922 17,516 3,119,807 Real estate construction Pass 202,082 123,491 31,927 3,155 738 1,223 7,181 369,797 Watch 7,886 4,159 54 — 1,574 120 — 13,793 Special Mention — — 6 — — — — 6 Substandard — 2,400 — — — — — 2,400 Total real estate construction 209,968 130,050 31,987 3,155 2,312 1,343 7,181 385,996 Retail real estate Pass 523,541 215,068 96,617 79,158 82,478 281,737 213,246 1,491,845 Watch 4,100 2,460 1,780 1,312 343 150 2,229 12,374 Special Mention 1,965 27 — — — — — 1,992 Substandard 1,369 232 12 71 165 1,687 331 3,867 Substandard non-accrual 235 63 — 16 227 1,705 652 2,898 Total retail real estate 531,210 217,850 98,409 80,557 83,213 285,279 216,458 1,512,976 Retail other Pass 59,366 22,305 26,126 16,189 7,180 1,326 93,770 226,262 Substandard non-accrual 34 10 — 14 13 — — 71 Total retail other 59,400 22,315 26,126 16,203 7,193 1,326 93,770 226,333 Total portfolio loans $ 2,393,701 $ 1,296,955 $ 845,248 $ 503,186 $ 434,084 $ 671,510 $ 1,044,314 $ 7,188,998 Past Due and Non-accrual Loans An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on a non-accrual status, is as follows (dollars in thousands) As of March 31, 2022 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 358 $ 93 $ — $ 6,760 Commercial real estate — — — 2,605 Real estate construction — 48 — — Retail real estate 2,732 555 173 3,089 Retail other 123 7 24 34 Total past due and non-accrual loans $ 3,213 $ 703 $ 197 $ 12,488 As of December 31, 2021 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 363 $ 10 $ 213 $ 7,004 Commercial real estate 151 441 — 5,973 Real estate construction 56 — — — Retail real estate 3,312 1,830 693 2,898 Retail other 82 16 — 71 Total past due and non-accrual loans $ 3,964 $ 2,297 $ 906 $ 15,946 Gross interest income recorded on 90+ days past due loans, and that would have been recorded on non-accrual loans if they had been accruing interest in accordance with their original terms, was $0.2 million for the three months ended March 31, 2022. Gross interest income recorded on 90+ days past due loans and that would have been recorded on non-accrual loans if they had been accruing interest in accordance with their original terms was $0.5 million for the three months ended March 31, 2021. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was $0.4 million for the three months ended March 31, 2022, and was insignificant for the three months ended March 31, 2021. Troubled Debt Restructurings TDR loan balances are summarized as follows (dollars in thousands) As of March 31, December 31, 2022 2021 TDRs In compliance with modified terms $ 1,771 $ 1,801 Non-performing TDRs 529 551 Total TDRs $ 2,300 $ 2,352 No loans were newly designated as TDRs during the three months ended March 31, 2022. Loans that were newly designated as TDRs during the three months ended March 31, 2021, are summarized as follows (dollars in thousands) Three Months Ended March 31, 2021 Recorded Investment Number of Rate Contracts Modification Newly designated TDRs Commercial 1 $ 483 There were no TDRs entered into during the 12 months ended March 31, 2022, or 2021, that had subsequent defaults during the three months ended March 31, 2022, or 2021. A default occurs when a loan is 90 days or more past due or transferred to non-accrual. Gross interest income that would have been recorded in the three months ended March 31, 2022 and 2021, if TDRs had performed in accordance with their original terms compared with their modified terms, was insignificant. As of March 31, 2022, the Company had $0.5 million of residential real estate in the process of foreclosure. The Company follows Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans. Loans Modified Under the CARES Act or Interagency Statement The CARES Act provided financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. Federal regulatory agencies, in consultation with FASB, also issued an Interagency Statement to encourage financial institutions to work with borrowers affected by COVID-19, and to update guidance which allowed banks to modify loans of customers stressed by COVID-19 without having to classify the loan as a TDR. The Company’s TDR loan totals do not include the following modified loans with payment deferrals that fall under the CARES Act or Interagency Statement, which suspended GAAP requirements related to TDR classification (dollars in thousands) As of March 31, 2022 As of December 31, 2021 Number of Recorded Number of Recorded Contracts Investment Contracts Investment COVID-19 loan modifications Commercial loans: Interest-only deferrals 15 $ 37,374 32 $ 128,730 Retail loans: Mortgage and personal loan deferrals — — 2 137 Total COVID-19 loans modifications 15 $ 37,374 34 $ 128,867 Loans Evaluated Individually The Company evaluates loans with disparate risk characteristics on an individual basis. The following tables provide details of loans evaluated individually, segregated by category. The unpaid principal balance represents customer outstanding contractual principal balances excluding any partial charge-offs. Recorded investment represents the amortized cost of customer balances net of any partial charge-offs recognized on the loan. Average recorded investment is calculated using the most recent four quarters (dollars in thousands) As of and for the Three Months Ended March 31, 2022 Unpaid Recorded Investment Average Principal With No With Related Recorded Balance Allowance Allowance Total Allowance Investment Loans evaluated individually Commercial $ 10,040 $ 490 $ 6,291 $ 6,781 $ 3,345 $ 8,473 Commercial real estate 3,093 2,386 — 2,386 — 5,654 Real estate construction 266 266 — 266 — 277 Retail real estate 2,480 2,311 25 2,336 25 3,458 Total loans evaluated individually $ 15,879 $ 5,453 $ 6,316 $ 11,769 $ 3,370 $ 17,862 As of and for the Year Ended December 31, 2021 Unpaid Recorded Investment Average Principal With No With Related Recorded Balance Allowance Allowance Total Allowance Investment Loans evaluated individually Commercial $ 10,247 $ 498 $ 6,490 $ 6,988 $ 3,564 $ 8,791 Commercial real estate 6,456 5,750 — 5,750 — 6,390 Real estate construction 272 272 — 272 — 282 Retail real estate 2,514 2,345 25 2,370 25 4,093 Total loans evaluated individually $ 19,489 $ 8,865 $ 6,515 $ 15,380 $ 3,589 $ 19,556 Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of underlying collateral, less estimated costs to sell. The Company had $4.8 million and $7.9 million of collateral dependent loans secured by real estate or business assets as of March 31, 2022, and December 31, 2021, respectively. Allowance for Credit Losses Management estimates the ACL balance using relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience beginning in 2010. As of March 31, 2022, the Company expects continued economic uncertainty in the markets in which it operates, and around 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 summarize 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) Three Months Ended March 31, 2022 Commercial Real Estate Retail Commercial Real Estate Construction Real Estate Retail Other Total ACL beginning balance $ 23,855 $ 38,249 $ 5,102 $ 17,589 $ 3,092 $ 87,887 Provision for credit losses 251 (1,218) 510 (170) 374 (253) Charged-off — — — (16) (109) (125) Recoveries 67 308 93 152 84 704 ACL ending balance $ 24,173 $ 37,339 $ 5,705 $ 17,555 $ 3,441 $ 88,213 Three Months Ended March 31, 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 Provision for credit losses (665) (2,695) (1,250) (2,276) 90 (6,796) Charged-off (262) (303) (209) (3) (187) (964) Recoveries 86 74 145 265 85 655 ACL ending balance $ 23,025 $ 43,306 $ 6,879 $ 19,978 $ 755 $ 93,943 The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands) As of March 31, 2022 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Collectively Individually Evaluated for Evaluated for Evaluated for Evaluated for Impairment Impairment Total Impairment Impairment Total Portfolio loan category Commercial $ 1,899,814 $ 6,781 $ 1,906,595 $ 20,828 $ 3,345 $ 24,173 Commercial real estate 3,132,408 2,386 3,134,794 37,339 — 37,339 Real estate construction 445,162 266 445,428 5,705 — 5,705 Retail real estate 1,542,029 2,336 1,544,365 17,530 25 17,555 Retail other 241,691 — 241,691 3,441 — 3,441 Portfolio loans and related ACL $ 7,261,104 $ 11,769 $ 7,272,873 $ 84,843 $ 3,370 $ 88,213 As of December 31, 2021 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Collectively Individually Evaluated for Evaluated for Evaluated for Evaluated for Impairment Impairment Total Impairment Impairment Total Portfolio loan category Commercial $ 1,936,898 $ 6,988 $ 1,943,886 $ 20,291 $ 3,564 $ 23,855 Commercial real estate 3,114,057 5,750 3,119,807 38,249 — 38,249 Real estate construction 385,724 272 385,996 5,102 — 5,102 Retail real estate 1,510,606 2,370 1,512,976 17,564 25 17,589 Retail other 226,333 — 226,333 3,092 — 3,092 Portfolio loans and related ACL $ 7,173,618 $ 15,380 $ 7,188,998 $ 84,298 $ 3,589 $ 87,887 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Deposits | Note 5: Deposits The composition of deposits is as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Deposits Demand deposits, noninterest-bearing $ 3,568,651 $ 3,670,267 Interest-bearing transaction deposits 2,647,305 2,720,417 Saving deposits and money market deposits 3,485,050 3,442,244 Time deposits 890,830 935,649 Total deposits $ 10,591,836 $ 10,768,577 Additional information about our deposits is as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Brokered savings deposits and money market deposits $ 2,002 $ 2,248 Brokered time deposits 268 266 Aggregate amount of time deposits with a minimum denomination of $100,000 437,048 454,649 Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 139,245 137,449 Scheduled maturities of time deposits are as follows (dollars in thousands) As of March 31, 2022 Time deposits by schedule of maturities April 1, 2022 – March 31, 2023 $ 640,465 April 1, 2023 – March 31, 2024 169,339 April 1, 2024 – March 31, 2025 49,456 April 1, 2025 – March 31, 2026 16,970 April 1, 2026 – March 31, 2027 13,920 Thereafter 680 Time deposits $ 890,830 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Borrowings | |
Borrowings | Note 6: Borrowings Securities Sold Under Agreements to Repurchase 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. Securities sold under agreements to repurchase were as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Securities sold under agreements to repurchase $ 255,668 $ 270,139 Weighted average rate for securities sold under agreements to repurchase 0.15 % 0.08 % Term Loan On May 28, 2021, the Company entered into a Second Amended and Restated Credit Agreement, pursuant to which the Company has access to (i) a $40.0 million revolving line of credit with 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 had an annual interest rate of 1.75% plus the one-month LIBOR rate. On April 30, 2022, the agreement was amended, effecting an extension of the termination date for the revolving line of credit to April 30, 2023, and providing for the transition from a LIBOR-indexed interest rate to a SOFR-indexed interest rate. Under the terms of the amendment, the loans now have an annual interest rate of 1.80% plus the one-month forward-looking term rate based on SOFR. Proceeds of the term loan were used to fund a part of the cash portion of the merger consideration related to the acquisition of CAC in the second quarter of 2021, and for general corporate purposes. As of March 31, 2022, there was no balance outstanding on the revolving credit facility and a total of $51.0 million outstanding on the term loan, of which $12.0 million was short-term and $39.0 million was long-term. The revolving credit facility incurs a non-usage fee based on any undrawn amounts. Quarterly payments on the term loan reduce the outstanding principal balance by $3.0 million each quarter. Short-term Borrowings First Busey’s short-term borrowings include loans maturing within one year of the loan origination date, as well as the current portion of long-term debt that is due within 12 months. Short-term borrowings are summarized as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Short-term borrowings FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months $ 5,683 $ 5,678 Term Loan, current portion due within 12 months 12,000 12,000 Total short-term debt $ 17,683 $ 17,678 Federal funds purchased are short-term borrowings that generally mature between one Long-term Debt First Busey’s long-term debt consists of loans maturing more than one year from the loan origination date, excluding the current portion that is due within 12 months. Long-term debt is summarized as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Long-term debt Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock $ 3,881 $ 4,056 Term Loan 39,000 42,000 Total long-term debt $ 42,881 $ 46,056 As of March 31, 2022, and December 31, 2021, funds borrowed from the FHLB, listed above, consisted of one variable-rate note maturing May 2023, with an interest rate of 3.04%. Senior and Subordinated Notes 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 $60.0 million of fixed-to-floating rate subordinated notes that mature on May 25, 2027. The subordinated notes, which qualify as Tier 2 capital for First Busey, bear interest at an annual rate of 4.75% for the first five years after issuance and thereafter bear interest at a floating rate equal to three-month LIBOR plus a spread of 2.919%, 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 five-year fixed-term, and thereafter on February 25, May 25, August 25, and November 25 of each year, commencing on August 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 5.25% for the first five years after issuance and thereafter bear interest at a floating rate equal to a three-month benchmark rate plus a spread of 5.11%, as calculated on each applicable determination date. The subordinated notes are payable semi-annually on each June 1 and December 1 during the five-year fixed-term, and thereafter on March 1, June 1, September 1, and December 1 of each year, commencing on September 1, 2025. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after June 1, 2025. The subordinated notes are unsecured obligations of the Company. Unamortized debt issuance costs related to senior notes and subordinated notes are presented in the following table (dollars in thousands) As of March 31, December 31, 2022 2021 Unamortized debt issuance costs Senior notes issued in 2017 $ 22 $ 56 Subordinated notes issued in 2017 254 549 Subordinated notes issued in 2020 1,566 1,678 Total unamortized debt issuance costs $ 1,842 $ 2,283 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital | |
Regulatory Capital | Note 7: Regulatory Capital The Company and its subsidiary bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Capital amounts and classification also are subject to qualitative judgments by regulators about components, risk weightings, and other factors. Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. As of March 31, 2022, and December 31, 2021, all capital ratios of the Company and its subsidiary bank exceeded well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to March 31, 2022, 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 was 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, has been 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 began to be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. The following tables summarize regulatory capital requirements applicable to the holding company its subsidiary bank (dollars in thousands) As of March 31, 2022 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,011,861 11.89 % $ 382,962 4.50 % $ 553,167 6.50 % Busey Bank $ 1,247,370 14.70 % $ 381,747 4.50 % $ 551,413 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,085,861 12.76 % $ 510,615 6.00 % $ 680,821 8.00 % Busey Bank $ 1,247,370 14.70 % $ 508,996 6.00 % $ 678,662 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,344,541 15.80 % $ 680,821 8.00 % $ 851,026 10.00 % Busey Bank $ 1,321,050 15.57 % $ 678,662 8.00 % $ 848,327 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,085,861 8.78 % $ 494,948 4.00 % N/A N/A Busey Bank $ 1,247,370 10.11 % $ 493,615 4.00 % $ 617,019 5.00 % As of December 31, 2021 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 995,874 11.85 % $ 378,334 4.50 % $ 546,482 6.50 % Busey Bank $ 1,241,303 14.81 % $ 377,096 4.50 % $ 544,695 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,069,874 12.73 % $ 504,445 6.00 % $ 672,594 8.00 % Busey Bank $ 1,241,303 14.81 % $ 502,795 6.00 % $ 670,394 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,320,187 15.70 % $ 672,594 8.00 % $ 840,742 10.00 % Busey Bank $ 1,306,616 15.59 % $ 670,394 8.00 % $ 837,992 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,069,874 8.52 % $ 502,336 4.00 % N/A N/A Busey Bank $ 1,241,303 9.91 % $ 501,104 4.00 % $ 626,379 5.00 % In July 2013, U.S. federal banking authorities approved the Basel III Rule for strengthening international capital standards. The Basel III Rule introduced a capital conservation buffer, composed entirely of Common Equity Tier 1 Capital, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of Common Equity Tier 1 Capital to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments based on the amount of the shortfall. In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain minimum ratios of (i) Common Equity Tier 1 Capital to risk-weighted assets of at least 7.0%, (ii) Tier 1 Capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-based Compensation | |
Stock-based Compensation | Note 8: Stock-Based Compensation Stock Options The Company has outstanding stock options assumed from acquisitions. A summary of the status of, and changes in, the Company's stock option awards for the three months ended March 31, 2022, follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Shares Price Life Outstanding at January 1, 2022 31,386 $ 23.53 4.88 Exercised — — Forfeited — — Expired (220) 23.53 Outstanding at March 31, 2022 31,166 $ 23.53 4.63 Exercisable at March 31, 2022 31,166 $ 23.53 4.63 2020 Equity Plan Under the terms of the 2020 Equity Plan, the Company has granted RSU, PSU, and DSU awards. Upon vesting/delivery, shares are expected (though not required) to be issued from treasury. RSU Awards The Company grants RSUs to members of management periodically throughout the year. Each RSU is equivalent to one share of the Company’s common stock. These units have requisite service periods ranging from one PSU Awards The Company also grants PSU awards to members of management periodically throughout the year. Each PSU is equivalent to one share of the Company’s common stock. The number of units that ultimately vest will be determined based on the achievement of the market or other performance goals, subject to accelerated service-based vesting conditions upon eligible retirement from the Company. DSU Awards The Company grants DSUs, which are restricted stock units with a deferred settlement date, to its directors and advisory directors. Each DSU is equivalent to one share of the Company’s common stock. DSUs vest over a one-year period following the grant date. These units generally are subject to the same terms as RSUs under the 2020 Equity Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, these units will continue to earn dividend equivalents. Award Grants and Activity A summary of changes in the Company’s RSU, PSU, and DSU awards for the three months ended March 31, 2022, 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 January 1, 2022 1,147,927 $ 23.97 113,915 $ 22.86 34,135 $ 24.59 Granted 156,483 25.79 195,240 25.79 32,658 25.79 Dividend equivalents earned 9,671 27.30 — — 1,107 27.30 Vested (13,594) 29.73 — — (32,801) 24.63 Forfeited (10,298) 24.05 (585) 23.48 — — Nonvested at March 31, 2022 1,290,189 $ 24.16 308,570 $ 24.71 35,099 $ 25.75 Vested and outstanding at March 31, 2022 130,098 $ 22.68 (1) Shares for PSU awards represent target shares at grant date. On March 23, 2022, under the terms of the 2020 Equity Plan, the Company granted 156,483 RSUs to members of management. The grant date fair value of the award totaled $4.0 million and will be recognized as compensation expense over the requisite service period ranging from one year to five years. The terms of these awards included an accelerated vesting provision upon eligible retirement from the Company, after a one-year minimum requisite service period. Subsequent to the requisite service period, the awards will become 100% vested. On March 23, 2022, the Company granted a target of 78,233 market-based PSUs with a maximum award of 125,173 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining a market-based total shareholder return performance goal. The grant date fair value of the award is estimated to be $2.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024. The Company expects to finalize the grant date fair value of these awards in the second quarter of 2022. On March 23, 2022, the Company granted a target of 78,233 performance-based PSUs with a maximum award of 125,173 units. The actual number of units issued at the vesting date could range from 0% to 160% of the initial grant, depending on attaining a core return on average tangible common equity performance goal. The grant date fair value of the award is $2.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024, subject to achievement of the performance goal. Further, on March 23, 2022, the Company granted a target of 38,774 PSUs with a maximum award of 77,548 units. The actual number of units issued at the vesting date could range from 0% to 200% of the initial grant, depending on attaining a performance goal based upon the compounded annual revenue growth rate of the FirsTech operating segment. The grant date fair value of the award is $1.0 million and will be recognized in compensation expense over the performance period ending December 31, 2024, subject to achievement of the performance goal. On March 23, 2022, the Company granted 32,658 DSUs to directors and advisory directors. The grant date fair value of the award totaled $0.8 million and will be recognized as compensation expense over the requisite service period of one year. Subsequent to the requisite service period, the awards will become 100% vested. 2021 Employee Stock Purchase Plan The First Busey Corporation 2021 ESPP was approved at the Company’s 2021 Annual Meeting of Stockholders and details can be found within First Busey’s Definitive Proxy Statement filed with the SEC on April 8, 2021. The plan initially reserved for issuance and purchase an aggregate of 600,000 shares of the Company’s common stock. The purpose of the 2021 ESPP is to provide a means through which our employees may acquire a proprietary interest in the Company by purchasing shares of our common stock at a 15% discount through voluntary payroll deductions, to assist us in retaining the services of our employees and securing and retaining the services of new employees, and to provide incentives for our employees to exert maximum efforts toward our success. The first offering under this plan began on July 1, 2021. Stock-based Compensation Expense The Company did not record any stock option compensation expense for the three months ended March 31, 2022, or 2021. As of March 31, 2022, the Company did not have any unrecognized stock option expense. The Company recognized compensation expense related to nonvested RSU, PSU, and DSU awards, as well as the 2021 ESPP, as summarized in the table below (dollars in thousands) Three Months Ended March 31, 2022 2021 Stock-based compensation expense RSU awards $ 1,176 $ 1,230 PSU awards 412 60 DSU awards 226 158 2021 ESPP 95 — Total stock-based compensation expense $ 1,909 $ 1,448 Unamortized compensation expense related to nonvested RSU, PSU, and DSU awards is summarized in the table below (dollars in thousands) As of March 31, December 31, 2022 2021 Unamortized stock-based compensation RSU awards $ 12,838 $ 10,204 PSU awards 5,544 1,547 DSU awards 825 209 Total unamortized stock-based compensation $ 19,207 $ 11,960 Weighted average period over which expense is to be recognized 2.9 yrs 2.9 yrs Shares Available for Issuance Under Stock-based Compensation Plans Shares remaining available for issuance pursuant to authorized stock-based compensation plans as of March 31, 2022, were as follows: Shares Remaining Available for Issuance Pursuant to the Plan 2020 Equity Plan 643,569 2021 Employee Stock Purchase Plan 544,470 |
Outstanding Commitments and Con
Outstanding Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Financial instruments whose contract amounts represent credit risk Commitments to extend credit $ 1,969,861 $ 1,983,655 Standby letters of credit 29,294 32,552 Total commitments $ 1,999,155 $ 2,016,207 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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 The Company was holding collateral of $10.9 million to secure its obligation under derivative contracts as of March 31, 2022. The Company pledged $26.5 million and $27.3 million in cash to secure its obligation under derivative contracts as of March 31, 2022, and December 31, 2021, respectively. Derivative Instruments 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 OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. Interest Rate Swaps Designated as Cash Flow Hedges Interest rate swaps with notional amounts totaling $350.0 million as of March 31, 2022, and $50.0 million as of December 31, 2021, were designated as cash flow hedges. The Company entered into one $50.0 million interest rate swap to hedge the risks of variability in cash flows (future interest payments) attributable to changes in the contractually specified 3-month LIBOR benchmark interest rate on the Company’s junior subordinated debt owed to unconsolidated trusts (Debt Swap). In addition, the Company entered into one $300.0 million interest rate swap to reduce our balance sheet asset sensitive profile and to lock in earnings in the event future interest rate hikes do not materialize (Loan Swap). These hedges were determined to be highly effective during the period, and the Company expects its hedges to remain highly effective during the remaining terms of the swaps. Changes in fair value were recorded net of tax in OCI. A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands) As of March 31, December 31, Location 2022 2021 Debt Swap Notional amount $ 50,000 $ 50,000 Weighted average fixed pay rates 1.79 % 1.79 % Weighted average variable 3-month LIBOR receive rates 0.83 % 0.20 % Weighted average maturity, in years 2.46 yrs 2.71 yrs Loan Swap Notional amount $ 300,000 $ — Weighted average fixed receive rates 4.81 % — % Weighted average variable Prime pay rates 3.40 % — % Weighted average maturity, in years 6.85 yrs — yrs Gross aggregate fair value of the swaps Gross aggregate fair value of swap assets Other assets $ 835 $ — Gross aggregate fair value of swap liabilities Other liabilities $ 8,772 $ 958 Balances carried in AOCI Unrealized gains (losses) on cash flow hedges, net of tax AOCI $ (5,887) $ (685) The Company expects $0.4 million of unrealized gains to be reclassified from OCI to interest income and $0.1 million of unrealized losses to be reclassed from OCI to interest expense during the next three months. Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to March 31, 2022. Interest expense recorded on these swap transactions was as follows for the periods presented (dollars in thousands) Three Months Ended March 31, 2022 2021 Interest income (expense) on swap transactions $ 500 $ (278) The following table reflects the net gains (losses) relating to cash flow derivative instruments that were recorded in AOCI and the unaudited Consolidated Statements of Income during the periods presented (dollars in thousands) Three Months Ended March 31, 2022 2021 Unrealized gains (losses) on cash flow hedges Gain (loss) recognized in OCI, net of tax $ (4,845) $ 410 (Gain) loss reclassified from OCI to interest expense, net of tax (357) 199 Net change in unrealized gains (losses) on cash flow hedges $ (5,202) $ 609 Derivative Instruments Not Designated as Hedges 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 $492.6 million and $491.4 million as of March 31, 2022, and December 31, 2021, respectively. These derivatives generally worked together as an economic interest rate hedge, but the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps recorded in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands) As of March 31, 2022 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 $ 119,622 $ 3,467 $ 372,968 $ 13,080 Interest rate swaps – pay fixed, receive floating 372,968 13,080 119,622 3,467 Total derivatives not designated as hedging instruments $ 492,590 $ 16,547 $ 492,590 $ 16,547 As of December 31, 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 $ 404,572 $ 17,839 $ 86,784 $ 2,259 Interest rate swaps – pay fixed, receive floating 86,784 2,259 404,572 17,839 Total derivatives not designated as hedging instruments $ 491,356 $ 20,098 $ 491,356 $ 20,098 Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the unaudited Consolidated Statements of Income and summarized as follows (dollars in thousands) Three Months Ended March 31, Location 2022 2021 Interest rate swaps Pay floating, receive fixed Noninterest expense $ (3,550) $ (10,595) Pay fixed, receive floating Noninterest expense 3,550 10,595 Net change in fair value of interest rate swaps $ — $ — Risk Participation Agreement To manage the credit risk exposure related to a customer-facing swap, the Company entered into one risk participation agreement in conjunction with a loan participation with another financial institution. The notional amount of the risk participation agreement was $4.0 million, and the fair value amount was insignificant, as of both March 31, 2022, and December 31, 2021. This risk participation agreement matures in 2028. Mortgage Banking Derivatives Interest Rate Lock Commitments Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” Forward Sales Commitments The Company economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” Amounts and fair values of mortgage banking derivatives included in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands) As of March 31, 2022 As of December 31, 2021 Notional Fair Notional Fair Location Amount Value Amount Value Derivatives with positive fair value Interest rate lock commitments Other assets $ 3,724 $ 38 $ 19,384 $ 206 Forward sales commitments Other assets 8,947 148 1,884 10 Mortgage banking derivatives recorded in other assets $ 12,671 $ 186 $ 21,268 $ 216 Derivatives with negative fair value Interest rate lock commitments Other liabilities $ 2,866 $ 23 $ 499 $ 6 Forward sales commitments Other liabilities 4,429 42 41,002 439 Mortgage banking derivatives recorded in other liabilities $ 7,295 $ 65 $ 41,501 $ 445 Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands) Three Months Ended March 31, Location 2022 2021 Net gains (losses) Interest rate lock commitments Mortgage revenue $ 15 $ 472 Forward sales commitments Mortgage revenue 106 (820) Net gains (losses) $ 121 $ (348) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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” ● Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. ● Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. ● Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to those Company assets and liabilities that are carried at fair value. In general, fair value is based upon quoted market prices, when available. If such quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable data. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect, among other things, counterparty credit quality and the company's creditworthiness as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis Debt Securities Available for Sale Debt securities classified as available for sale are reported at fair value utilizing Level 2 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 that were reported at fair value utilized Level 2 measurements at December 31, 2021. The fair values of the mortgage loans held for sale were measured using observable quoted market or contract prices or market price equivalents and were classified as Level 2. Derivative Assets and Derivative Liabilities Derivative assets and derivative liabilities are reported at fair value utilizing Level 2 or Level 3 measurements. As applicable, fair values of derivative assets and liabilities are determined based on prices that are obtained from a third-party which uses observable market inputs and are classified as Level 2. Due to the significance of unobservable inputs, derivative assets related to our risk participation agreement are classified as Level 3. The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2022, and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of March 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 157,508 $ — $ 157,508 Obligations of U.S. government corporations and agencies — 34,301 — 34,301 Obligations of states and political subdivisions — 299,592 — 299,592 Asset-backed securities — 488,604 — 488,604 Commercial mortgage-backed securities — 107,502 — 107,502 Residential mortgage-backed securities — 1,575,376 — 1,575,376 Corporate debt securities — 283,172 — 283,172 Equity securities 5,948 13,572 — 19,520 Derivative assets — 17,568 5 17,573 Derivative liabilities — 25,384 — 25,384 As of December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 165,762 $ — $ 165,762 Obligations of U.S. government corporations and agencies — 38,470 — 38,470 Obligations of states and political subdivisions — 306,869 — 306,869 Asset-backed securities — 492,186 — 492,186 Commercial mortgage-backed securities — 614,998 — 614,998 Residential mortgage-backed securities — 2,069,313 — 2,069,313 Corporate debt securities — 293,653 — 293,653 Equity securities — 13,571 — 13,571 Loans held for sale — 23,875 — 23,875 Derivative assets — 20,314 — 20,314 Derivative liabilities — 21,501 — 21,501 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Loans Evaluated Individually 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). 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 for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of March 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually, net of related allowance $ — $ — $ 2,946 $ 2,946 OREO with subsequent impairment — — 2,228 2,228 Bank property held for sale with impairment — — 9,551 9,551 As of December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually, net of related allowance $ — $ — $ 2,926 $ 2,926 OREO with subsequent impairment — — 51 51 Bank property held for sale with impairment — — 10,103 10,103 The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range March 31, 2022: Estimate Techniques Input (Weighted Average) Loans evaluated individually, net of related allowance $ 2,946 Appraisal of collateral Appraisal adjustments -50.0 % to -100.0 % (-53.4) % OREO with subsequent impairment 2,228 Appraisal of collateral Appraisal adjustments -16.0 % to -100.0 % (-24.4) % Bank property held for sale with impairment 9,551 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7 % to -70.1 % (-38.2) % December 31, 2021: Loans evaluated individually, net of related allowance $ 2,926 Appraisal of collateral Appraisal adjustments -50.0 % to -100.0 % (-55.1) % OREO with subsequent impairment 51 Appraisal of collateral Appraisal adjustments -33.0 % to -100.0 % (-67.9) % Bank property held for sale with impairment 10,103 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7 % to -70.1 % (-41.3) % Financial Assets and Financial Liabilities That Are Not Carried at Fair Value Estimated fair values of financial instruments that are not carried at fair value in the Company’s 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 March 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets Level 1 inputs: Cash and cash equivalents $ 479,228 $ 479,228 $ 836,095 $ 836,095 Level 2 inputs: Debt securities held to maturity 976,081 942,846 — — Loans held for sale (1) 6,765 6,769 — — Accrued interest receivable 31,947 31,947 31,064 31,064 Level 3 inputs: Portfolio loans, net 7,184,660 7,195,985 7,101,111 7,161,466 Mortgage servicing rights 8,085 15,499 8,608 12,133 Other servicing rights 1,712 2,093 1,830 2,268 Financial liabilities Level 2 inputs: Time deposits $ 890,830 $ 882,358 $ 935,649 $ 935,778 Securities sold under agreements to repurchase 255,668 255,668 270,139 270,139 Short-term borrowings 17,683 17,745 17,678 17,673 Long-term debt 42,881 43,007 46,056 46,164 Junior subordinated debt owed to unconsolidated trusts 71,678 62,840 71,635 63,586 Accrued interest payable 5,116 5,116 2,728 2,728 Level 3 inputs: Senior notes, net of unamortized issuance costs 39,978 40,000 39,944 40,400 Subordinated notes, net of unamortized issuance costs 182,910 188,437 182,773 195,600 (1) Effective January 1, 2022, recorded at LOCOM. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Common Share | |
Earnings Per Common 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 DSUs that are vested but not delivered. Diluted earnings per common share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding stock options and warrants were exercised, stock units were vested, and ESPP shares were issued. Earnings per common share have been computed as follows (dollars in thousands, except per share amounts) Three Months Ended March 31, 2022 2021 Net income $ 28,439 $ 37,816 Shares: Weighted average common shares outstanding 55,427,696 54,471,860 Dilutive effect of outstanding options, warrants, and stock units as determined by the application of the treasury stock method 755,748 563,946 Dilutive effect of ESPP shares 11,502 — Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation 56,194,946 55,035,806 Basic earnings per common share $ 0.51 $ 0.69 Diluted earnings per common share $ 0.51 $ 0.69 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 March 31, 2022 2021 Anti-dilutive common stock equivalents RSU and DSU awards — 243,396 PSU awards 241,452 114,883 Total anti-dilutive common stock equivalents 241,452 358,279 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss). | Note 13: Accumulated Other Comprehensive Income (Loss) The following table represents changes in AOCI by component, net of tax, for the period below (dollars in thousands) Three Months Ended March 31, 2022 2021 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 $ (32,272) $ 9,199 $ (23,073) $ 49,644 $ (14,151) $ 35,493 Unrealized holding gains (losses) on debt securities available for sale, net (104,282) 29,726 (74,556) (42,072) 11,993 (30,079) Unrealized losses on debt securities transferred from held to maturity to available for sale (48,456) 13,812 (34,644) — — — Amounts reclassified from AOCI, net (106) 30 (76) (25) 7 (18) Amortization of unrealized losses on securities transferred to held to maturity 883 (252) 631 — — — Balance at end of period $ (184,233) $ 52,515 $ (131,718) $ 7,547 $ (2,151) $ 5,396 Unrealized gains (losses) on cash flow hedges Balance at beginning of period $ (958) $ 273 $ (685) $ (3,055) $ 871 $ (2,184) Unrealized holding gains (losses) on cash flow hedges, net (6,776) 1,931 (4,845) 574 (164) 410 Amounts reclassified from AOCI, net (500) 143 (357) 278 (79) 199 Balance at end of period $ (8,234) $ 2,347 $ (5,887) $ (2,203) $ 628 $ (1,575) Total AOCI $ (192,467) $ 54,862 $ (137,605) $ 5,344 $ (1,523) $ 3,821 |
Operating Segments and Related
Operating Segments and Related Information | 3 Months Ended |
Mar. 31, 2022 | |
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, FirsTech, and Wealth Management. 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 Banking operating segment provides a full range of banking services to individual and corporate customers through its banking center network in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. The FirsTech operating segment provides solutions for online, mobile, and voice-recognition 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. The segment financial information provided below has been derived from information used by management to monitor and manage the financial performance of the Company. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies in “ Note 1. Significant Accounting Policies Following is a summary of selected financial information for the Company’s operating segments. The “other” category included in the tables below consists of the parent company, First Busey Risk Management, and the elimination of intercompany transactions (dollars in thousands) Goodwill Total Assets As of As of March 31, December 31, March 31, December 31, 2022 2021 2022 2021 Operating segment Banking $ 294,773 $ 294,773 $ 12,450,999 $ 12,746,833 FirsTech 8,992 8,992 46,900 47,481 Wealth Management 14,108 14,108 71,364 65,587 Other — — (1,754) (212) Consolidated total $ 317,873 $ 317,873 $ 12,567,509 $ 12,859,689 Three Months Ended March 31, 2022 2021 Net interest income Banking $ 73,832 $ 68,455 FirsTech 18 20 Other (3,794) (3,582) Total net interest income $ 70,056 $ 64,893 Noninterest income Banking $ 15,286 $ 12,884 FirsTech 5,419 4,861 Wealth Management 15,776 12,587 Other (709) 1,113 Total noninterest income $ 35,772 $ 31,445 Noninterest expense Banking $ 55,567 $ 42,091 FirsTech 4,683 4,290 Wealth Management 8,265 6,565 Other 1,861 1,553 Total noninterest expense $ 70,376 $ 54,499 Income before income taxes Banking $ 33,804 $ 46,044 FirsTech 754 591 Wealth Management 7,511 6,022 Other (6,364) (4,022) Total income before income taxes $ 35,705 $ 48,635 Net income Banking $ 26,451 $ 35,528 FirsTech 550 429 Wealth Management 5,840 4,682 Other (4,402) (2,823) Total net income $ 28,439 $ 37,816 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 15: Leases Busey as the Lessee The Company has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease-related information and balances the Company reported in its unaudited Consolidated Balance Sheets for the periods presented (dollars in thousands) As of March 31, December 31, 2022 2021 Lease balances Right of use assets $ 9,014 $ 10,533 Lease liabilities 9,067 10,591 Supplemental information Year through which lease terms extend 2031 2031 Weighted average remaining lease term (in years) 6.27 6.47 Weighted average discount rate 2.04 % 2.16 % The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands) Three Months Ended March 31, 2022 2021 Lease costs Operating lease costs $ 617 $ 564 Variable lease costs 128 174 Short-term lease costs 4 18 Total lease cost (1) $ 749 $ 756 Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash flows – Fixed payments $ 631 $ 546 Operating lease cash flows – Liability reduction 585 495 Right of use assets obtained during the period in exchange for operating lease liabilities 55 148 (1) Lease costs are included in net occupancy and equipment expense in the unaudited Consolidated Statements of Income. The Company was obligated under noncancelable operating leases for office space and other commitments, as follows (dollars in thousands) As of March 31, 2022 Rent commitments Remainder of 2022 $ 1,684 2023 1,889 2024 1,429 2025 1,194 2026 945 Thereafter 2,509 Total undiscounted cash flows 9,650 Less: Amounts representing interest 583 Present value of net future minimum lease payments $ 9,067 Busey as the Lessor Busey occasionally leases parking lots and office space to outside parties. Further, in connection with the acquisition of CAC in the second quarter of 2021, the Company acquired office buildings in Glenview, IL and Northbrook, IL, along with operating leases for space within these buildings that is rented to third parties. Revenues recorded in connection with these leases and reported in other income on our unaudited Consolidated Statements of Income are summarized as follows (dollars in thousands) Three Months Ended March 31, 2022 2021 Rental income $ 230 $ 44 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Significant Accounting Policies | |
Nature of operations | Nature of Operations First Busey Corporation, a Nevada corporation organized in 1980, is a $12.6 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, FirsTech, and Wealth Management. Banking The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiary, Busey Bank, with 58 banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. FirsTech The FirsTech operating segment provides comprehensive and innovative payment technology solutions that include, but are not limited to, text-based mobile bill pay; electronic payment concentration delivered to Automated Clearing House networks, money management, and credit card networks; walk-in payment processing for customers at retail pay agents; customer service payments made over a telephone; direct debit services; and lockbox remittance processing for customers to make payments by mail. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. Wealth Management 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 2021 Annual Report. These interim unaudited consolidated financial statements serve to update our 2021 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. |
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 debt securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. |
Impact of recently adopted accounting standards | Impact of Recently Adopted Accounting Standards ASU 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” ASU 2021-05 “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” ASU 2021-04 “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” Recently Issued Accounting Standards ASU 2022-02 “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” “Investments—Debt Securities” ASU 2022-01 “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method” “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2021-08 “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” “Revenue from Contracts with Customers” |
COVID-19 | COVID-19 Throughout the COVID-19 pandemic, First Busey operated as an essential community resource, providing approximately $1.1 billion in payroll assistance for small businesses and select nonprofits through low-interest, 100% government-guaranteed loans as part of the PPP. First Busey had $32.5 million in PPP loans outstanding, with an amortized cost of $31.8 million, as of March 31, 2022. In comparison, First Busey had $76.9 million in PPP loans outstanding, with an amortized cost of $75.0 million, as of December 31, 2021. |
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. There were no significant subsequent events for the quarter ended March 31, 2022, through the filing date of these unaudited consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
CAC | |
Schedule of fair value estimates of assets acquired and liabilities assumed | Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands) : CAC May 31, 2021 Assets acquired Cash and cash equivalents $ 298,637 Securities 702,367 Portfolio loans, net of ACL 430,470 Premises and equipment 17,034 Other intangible assets 17,340 Mortgage servicing rights 629 Other assets 8,176 Total assets acquired 1,474,653 Liabilities assumed Deposits 1,315,671 Other borrowings 16,651 Other liabilities 19,205 Total liabilities assumed 1,351,527 Net assets acquired $ 123,126 Consideration paid: Cash $ 70,358 Common stock 59,105 Total consideration paid $ 129,463 Goodwill $ 6,337 |
Debt Securities (Tables)
Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Securities | |
Schedule of amortized cost, unrealized gains and losses and fair values of securities classified available for sale and held to maturity | During the three months ended March 31, 2022, a portion of the securities available for sale were transferred to securities held to maturity. The tables below provide the amortized cost, unrealized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands) As of March 31, 2022 Amortized Unrealized Fair Cost Gross Gains Gross Losses Value Debt securities available for sale U.S. Treasury securities $ 160,990 $ 16 $ (3,498) $ 157,508 Obligations of U.S. government corporations and agencies 34,069 243 (11) 34,301 Obligations of states and political subdivisions 308,514 1,378 (10,300) 299,592 Asset-backed securities 491,269 12 (2,677) 488,604 Commercial mortgage-backed securities 111,535 30 (4,063) 107,502 Residential mortgage-backed securities 1,678,891 629 (104,144) 1,575,376 Corporate debt securities 297,447 361 (14,636) 283,172 Total debt securities available for sale $ 3,082,715 $ 2,669 $ (139,329) $ 2,946,055 Debt securities held to maturity Commercial mortgage-backed securities $ 503,285 $ — $ (15,521) $ 487,764 Residential mortgage-backed securities 472,796 — (17,714) 455,082 Total debt securities held to maturity $ 976,081 $ — $ (33,235) $ 942,846 As of December 31, 2021 Amortized Unrealized Fair Cost Gross Gains Gross Losses Value Debt securities available for sale U.S. Treasury securities $ 166,768 $ 41 $ (1,047) $ 165,762 Obligations of U.S. government corporations and agencies 37,579 891 — 38,470 Obligations of states and political subdivisions 300,602 7,760 (1,493) 306,869 Asset-backed securities 492,055 295 (164) 492,186 Commercial mortgage-backed securities 625,339 3,425 (13,766) 614,998 Residential mortgage-backed securities 2,095,104 8,889 (34,680) 2,069,313 Corporate debt securities 296,076 1,081 (3,504) 293,653 Total debt securities available for sale $ 4,013,523 $ 22,382 $ (54,654) $ 3,981,251 |
Schedule of amortized cost and fair value of debt securities available for sale and held to maturity by contractual maturity | As of March 31, 2022 Amortized Fair Cost Value Debt securities available for sale Due in one year or less $ 174,918 $ 174,182 Due after one year through five years 456,926 441,159 Due after five years through ten years 313,336 303,050 Due after ten years 2,137,535 2,027,664 Debt securities available for sale $ 3,082,715 $ 2,946,055 Debt securities held to maturity Due in one year or less $ — $ — Due after one year through five years 48,405 47,185 Due after five years through ten years 66,693 64,572 Due after ten years 860,983 831,089 Debt securities held to maturity $ 976,081 $ 942,846 |
Schedule of realized gains and losses related to sales of securities | Gains and losses on debt 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 March 31, 2022 2021 Realized gains and losses on debt securities Gross security gains $ 113 $ 25 Gross security (losses) (7) — Realized net gains (losses) on debt securities $ 106 $ 25 |
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 March 31, 2022 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 $ 155,422 $ (3,498) $ — $ — $ 155,422 $ (3,498) Obligations of U.S. government corporations and agencies 390 (11) — — 390 (11) Obligations of states and political subdivisions 158,528 (9,277) 9,847 (1,023) 168,375 (10,300) Asset-backed securities 470,964 (2,677) — — 470,964 (2,677) Commercial mortgage-backed securities 87,087 (3,558) 7,203 (505) 94,290 (4,063) Residential mortgage-backed securities 1,054,313 (65,980) 393,830 (38,164) 1,448,143 (104,144) Corporate debt securities 216,592 (11,652) 39,598 (2,984) 256,190 (14,636) Debt securities available for sale with gross unrealized losses $ 2,143,296 $ (96,653) $ 450,478 $ (42,676) $ 2,593,774 $ (139,329) Debt securities held to maturity Commercial mortgage-backed securities $ 281,462 $ (9,329) $ 206,302 $ (6,192) $ 487,764 $ (15,521) Residential mortgage-backed securities 412,450 (15,940) 42,632 (1,774) 455,082 (17,714) Debt securities held to maturity with gross unrealized losses $ 693,912 $ (25,269) $ 248,934 $ (7,966) $ 942,846 $ (33,235) As of December 31, 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 $ 163,653 $ (1,047) $ — $ — $ 163,653 $ (1,047) Obligations of states and political subdivisions 92,680 (1,493) — — 92,680 (1,493) Asset-backed securities 89,983 (164) — — 89,983 (164) Commercial mortgage-backed securities 389,078 (10,186) 85,905 (3,580) 474,983 (13,766) Residential mortgage-backed securities 1,700,187 (33,453) 20,538 (1,227) 1,720,725 (34,680) Corporate debt securities 241,153 (3,504) — — 241,153 (3,504) Debt securities available for sale with gross unrealized losses $ 2,676,734 $ (49,847) $ 106,443 $ (4,807) $ 2,783,177 $ (54,654) Additional information about debt securities in an unrealized loss position is presented in the tables below (dollars in thousands) As of March 31, 2022 Available for Sale Held to Maturity Total Debt securities with gross unrealized losses, fair value $ 2,593,774 $ 942,846 $ 3,536,620 Gross unrealized losses on debt securities $ 139,329 $ 33,235 $ 172,564 Ratio of gross unrealized losses to debt securities with gross unrealized losses 5.4 % 3.5 % 4.9 % Count of debt securities 1,185 55 1,240 Count of debt securities in an unrealized loss position 645 55 700 As of December 31, 2021 Available for Sale Held to Maturity Total Debt securities with gross unrealized losses, fair value $ 2,783,177 $ — $ 2,783,177 Gross unrealized losses on debt securities $ 54,654 $ — $ 54,654 Ratio of gross unrealized losses to debt securities with gross unrealized losses 2.0 % — 2.0 % Count of debt securities 1,252 — 1,252 Count of debt securities in an unrealized loss position 373 — 373 |
Portfolio Loans (Tables)
Portfolio Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Portfolio Loans | |
Distribution of portfolio loans | Loan Categories The Company’s lending can be summarized into five primary categories: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. Distributions of loan portfolio by loan category were as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Portfolio loans Commercial $ 1,906,595 $ 1,943,886 Commercial real estate 3,134,794 3,119,807 Real estate construction 445,428 385,996 Retail real estate 1,544,365 1,512,976 Retail other 241,691 226,333 Total portfolio loans 7,272,873 7,188,998 ACL (88,213) (87,887) Portfolio loans, net $ 7,184,660 $ 7,101,111 |
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 March 31, 2022 Special Substandard Pass Watch Mention Substandard Non-accrual Total Portfolio loans Commercial $ 1,725,369 $ 73,471 $ 74,967 $ 26,028 $ 6,760 $ 1,906,595 Commercial real estate 2,769,016 262,411 53,195 47,567 2,605 3,134,794 Real estate construction 428,467 14,557 4 2,400 — 445,428 Retail real estate 1,523,791 11,352 2,062 4,071 3,089 1,544,365 Retail other 241,657 — — — 34 241,691 Total portfolio loans $ 6,688,300 $ 361,791 $ 130,228 $ 80,066 $ 12,488 $ 7,272,873 As of December 31, 2021 Special Substandard Pass Watch Mention Substandard Non-accrual Total Portfolio loans Commercial $ 1,747,756 $ 93,582 $ 69,427 $ 26,117 $ 7,004 $ 1,943,886 Commercial real estate 2,682,441 343,304 49,695 38,394 5,973 3,119,807 Real estate construction 369,797 13,793 6 2,400 — 385,996 Retail real estate 1,491,845 12,374 1,992 3,867 2,898 1,512,976 Retail other 226,262 — — — 71 226,333 Total portfolio loans $ 6,518,101 $ 463,053 $ 121,120 $ 70,778 $ 15,946 $ 7,188,998 |
Risk grades of portfolio loans, further sorted by origination | Risk grades of portfolio loans, further sorted by origination year are as follows (dollars in thousands) As of March 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2022 2021 2020 2019 2018 Prior Loans Total Commercial Pass $ 220,582 $ 386,332 $ 187,571 $ 82,617 $ 80,606 $ 187,281 $ 580,380 $ 1,725,369 Watch 1,641 13,751 4,536 9,391 1,412 3,315 39,425 73,471 Special Mention 2,668 4,799 191 6,125 3,753 17,998 39,433 74,967 Substandard 1,736 1,586 3,222 3,248 1,561 6,550 8,125 26,028 Substandard non-accrual — 3,946 345 141 — 328 2,000 6,760 Total commercial 226,627 410,414 195,865 101,522 87,332 215,472 669,363 1,906,595 Commercial real estate Pass 287,524 961,636 608,378 349,992 216,247 330,243 14,996 2,769,016 Watch 22,162 33,489 23,614 110,412 22,540 48,163 2,031 262,411 Special Mention 5,765 5,971 12,850 2,321 7,375 18,814 99 53,195 Substandard 1,232 20,611 3,034 1,028 10,429 11,233 — 47,567 Substandard non-accrual — 111 172 359 1,946 17 — 2,605 Total commercial real estate 316,683 1,021,818 648,048 464,112 258,537 408,470 17,126 3,134,794 Real estate construction Pass 65,127 184,303 127,358 31,709 2,575 2,004 15,391 428,467 Watch 3,816 5,640 3,518 52 — 1,531 — 14,557 Special Mention — — — 4 — — — 4 Substandard — — 2,400 — — — — 2,400 Total real estate construction 68,943 189,943 133,276 31,765 2,575 3,535 15,391 445,428 Retail real estate Pass 114,026 490,691 205,598 99,087 74,589 332,410 207,390 1,523,791 Watch 1,629 1,208 1,830 1,628 1,269 172 3,616 11,352 Special Mention 145 1,892 25 — — — — 2,062 Substandard — 1,095 224 93 70 2,261 328 4,071 Substandard non-accrual — 242 118 — 236 1,935 558 3,089 Total retail real estate 115,800 495,128 207,795 100,808 76,164 336,778 211,892 1,544,365 Retail other Pass 36,922 54,381 19,799 22,563 12,982 5,594 89,416 241,657 Substandard non-accrual — 34 — — — — — 34 Total retail other 36,922 54,415 19,799 22,563 12,982 5,594 89,416 241,691 Total portfolio loans $ 764,975 $ 2,171,718 $ 1,204,783 $ 720,770 $ 437,590 $ 969,849 $ 1,003,188 $ 7,272,873 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Risk Grade Ratings 2021 2020 2019 2018 2017 Prior Loans Total Commercial Pass $ 512,729 $ 228,811 $ 107,877 $ 84,873 $ 74,351 $ 122,418 $ 616,697 $ 1,747,756 Watch 13,847 5,913 14,274 5,060 1,361 2,866 50,261 93,582 Special Mention 7,062 898 5,961 4,025 6,790 11,845 32,846 69,427 Substandard 3,595 3,362 3,136 1,855 1,125 5,459 7,585 26,117 Substandard non-accrual 4,126 364 142 — 320 52 2,000 7,004 Total commercial 541,359 239,348 131,390 95,813 83,947 142,640 709,389 1,943,886 Commercial real estate Pass 969,548 637,550 425,850 235,928 200,373 198,002 15,190 2,682,441 Watch 51,560 38,820 123,324 48,088 46,761 32,608 2,143 343,304 Special Mention 9,542 7,060 6,585 10,098 6,357 9,870 183 49,695 Substandard 21,002 3,781 1,218 11,451 521 421 — 38,394 Substandard non-accrual 112 181 359 1,893 3,407 21 — 5,973 Total commercial real estate 1,051,764 687,392 557,336 307,458 257,419 240,922 17,516 3,119,807 Real estate construction Pass 202,082 123,491 31,927 3,155 738 1,223 7,181 369,797 Watch 7,886 4,159 54 — 1,574 120 — 13,793 Special Mention — — 6 — — — — 6 Substandard — 2,400 — — — — — 2,400 Total real estate construction 209,968 130,050 31,987 3,155 2,312 1,343 7,181 385,996 Retail real estate Pass 523,541 215,068 96,617 79,158 82,478 281,737 213,246 1,491,845 Watch 4,100 2,460 1,780 1,312 343 150 2,229 12,374 Special Mention 1,965 27 — — — — — 1,992 Substandard 1,369 232 12 71 165 1,687 331 3,867 Substandard non-accrual 235 63 — 16 227 1,705 652 2,898 Total retail real estate 531,210 217,850 98,409 80,557 83,213 285,279 216,458 1,512,976 Retail other Pass 59,366 22,305 26,126 16,189 7,180 1,326 93,770 226,262 Substandard non-accrual 34 10 — 14 13 — — 71 Total retail other 59,400 22,315 26,126 16,203 7,193 1,326 93,770 226,333 Total portfolio loans $ 2,393,701 $ 1,296,955 $ 845,248 $ 503,186 $ 434,084 $ 671,510 $ 1,044,314 $ 7,188,998 |
Summary of portfolio loans that are past due and still accruing or on a non-accrual status | An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on a non-accrual status, is as follows (dollars in thousands) As of March 31, 2022 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 358 $ 93 $ — $ 6,760 Commercial real estate — — — 2,605 Real estate construction — 48 — — Retail real estate 2,732 555 173 3,089 Retail other 123 7 24 34 Total past due and non-accrual loans $ 3,213 $ 703 $ 197 $ 12,488 As of December 31, 2021 Loans past due, still accruing Non-accrual 30-59 Days 60-89 Days 90+Days Loans Past due and non-accrual loans Commercial $ 363 $ 10 $ 213 $ 7,004 Commercial real estate 151 441 — 5,973 Real estate construction 56 — — — Retail real estate 3,312 1,830 693 2,898 Retail other 82 16 — 71 Total past due and non-accrual loans $ 3,964 $ 2,297 $ 906 $ 15,946 |
Summary of TDR loans | Troubled Debt Restructurings TDR loan balances are summarized as follows (dollars in thousands) As of March 31, December 31, 2022 2021 TDRs In compliance with modified terms $ 1,771 $ 1,801 Non-performing TDRs 529 551 Total TDRs $ 2,300 $ 2,352 No loans were newly designated as TDRs during the three months ended March 31, 2022. Loans that were newly designated as TDRs during the three months ended March 31, 2021, are summarized as follows (dollars in thousands) Three Months Ended March 31, 2021 Recorded Investment Number of Rate Contracts Modification Newly designated TDRs Commercial 1 $ 483 |
Schedule of details of impaired loans, segregated by category | As of and for the Three Months Ended March 31, 2022 Unpaid Recorded Investment Average Principal With No With Related Recorded Balance Allowance Allowance Total Allowance Investment Loans evaluated individually Commercial $ 10,040 $ 490 $ 6,291 $ 6,781 $ 3,345 $ 8,473 Commercial real estate 3,093 2,386 — 2,386 — 5,654 Real estate construction 266 266 — 266 — 277 Retail real estate 2,480 2,311 25 2,336 25 3,458 Total loans evaluated individually $ 15,879 $ 5,453 $ 6,316 $ 11,769 $ 3,370 $ 17,862 As of and for the Year Ended December 31, 2021 Unpaid Recorded Investment Average Principal With No With Related Recorded Balance Allowance Allowance Total Allowance Investment Loans evaluated individually Commercial $ 10,247 $ 498 $ 6,490 $ 6,988 $ 3,564 $ 8,791 Commercial real estate 6,456 5,750 — 5,750 — 6,390 Real estate construction 272 272 — 272 — 282 Retail real estate 2,514 2,345 25 2,370 25 4,093 Total loans evaluated individually $ 19,489 $ 8,865 $ 6,515 $ 15,380 $ 3,589 $ 19,556 |
Schedule of activity on the allowance for loan losses | The following tables summarize activity in the ACL. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands) Three Months Ended March 31, 2022 Commercial Real Estate Retail Commercial Real Estate Construction Real Estate Retail Other Total ACL beginning balance $ 23,855 $ 38,249 $ 5,102 $ 17,589 $ 3,092 $ 87,887 Provision for credit losses 251 (1,218) 510 (170) 374 (253) Charged-off — — — (16) (109) (125) Recoveries 67 308 93 152 84 704 ACL ending balance $ 24,173 $ 37,339 $ 5,705 $ 17,555 $ 3,441 $ 88,213 Three Months Ended March 31, 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 Provision for credit losses (665) (2,695) (1,250) (2,276) 90 (6,796) Charged-off (262) (303) (209) (3) (187) (964) Recoveries 86 74 145 265 85 655 ACL ending balance $ 23,025 $ 43,306 $ 6,879 $ 19,978 $ 755 $ 93,943 |
Schedule of allowance for loan losses and recorded investments in portfolio loans, by category | The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands) As of March 31, 2022 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Collectively Individually Evaluated for Evaluated for Evaluated for Evaluated for Impairment Impairment Total Impairment Impairment Total Portfolio loan category Commercial $ 1,899,814 $ 6,781 $ 1,906,595 $ 20,828 $ 3,345 $ 24,173 Commercial real estate 3,132,408 2,386 3,134,794 37,339 — 37,339 Real estate construction 445,162 266 445,428 5,705 — 5,705 Retail real estate 1,542,029 2,336 1,544,365 17,530 25 17,555 Retail other 241,691 — 241,691 3,441 — 3,441 Portfolio loans and related ACL $ 7,261,104 $ 11,769 $ 7,272,873 $ 84,843 $ 3,370 $ 88,213 As of December 31, 2021 Portfolio Loans ACL Attributed to Portfolio Loans Collectively Individually Collectively Individually Evaluated for Evaluated for Evaluated for Evaluated for Impairment Impairment Total Impairment Impairment Total Portfolio loan category Commercial $ 1,936,898 $ 6,988 $ 1,943,886 $ 20,291 $ 3,564 $ 23,855 Commercial real estate 3,114,057 5,750 3,119,807 38,249 — 38,249 Real estate construction 385,724 272 385,996 5,102 — 5,102 Retail real estate 1,510,606 2,370 1,512,976 17,564 25 17,589 Retail other 226,333 — 226,333 3,092 — 3,092 Portfolio loans and related ACL $ 7,173,618 $ 15,380 $ 7,188,998 $ 84,298 $ 3,589 $ 87,887 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Schedule of composition of deposits | The composition of deposits is as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Deposits Demand deposits, noninterest-bearing $ 3,568,651 $ 3,670,267 Interest-bearing transaction deposits 2,647,305 2,720,417 Saving deposits and money market deposits 3,485,050 3,442,244 Time deposits 890,830 935,649 Total deposits $ 10,591,836 $ 10,768,577 Additional information about our deposits is as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Brokered savings deposits and money market deposits $ 2,002 $ 2,248 Brokered time deposits 268 266 Aggregate amount of time deposits with a minimum denomination of $100,000 437,048 454,649 Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 139,245 137,449 |
Schedule of maturities of time deposits | Scheduled maturities of time deposits are as follows (dollars in thousands) As of March 31, 2022 Time deposits by schedule of maturities April 1, 2022 – March 31, 2023 $ 640,465 April 1, 2023 – March 31, 2024 169,339 April 1, 2024 – March 31, 2025 49,456 April 1, 2025 – March 31, 2026 16,970 April 1, 2026 – March 31, 2027 13,920 Thereafter 680 Time deposits $ 890,830 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Securities sold under agreements to repurchase $ 255,668 $ 270,139 Weighted average rate for securities sold under agreements to repurchase 0.15 % 0.08 % |
Summary of long-term debt | Short-term borrowings are summarized as follows (dollars in thousands) As of March 31, December 31, 2022 2021 Short-term borrowings FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months $ 5,683 $ 5,678 Term Loan, current portion due within 12 months 12,000 12,000 Total short-term debt $ 17,683 $ 17,678 (dollars in thousands) As of March 31, December 31, 2022 2021 Long-term debt Notes payable, FHLB, original maturity of 5 years, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock $ 3,881 $ 4,056 Term Loan 39,000 42,000 Total long-term debt $ 42,881 $ 46,056 |
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 March 31, December 31, 2022 2021 Unamortized debt issuance costs Senior notes issued in 2017 $ 22 $ 56 Subordinated notes issued in 2017 254 549 Subordinated notes issued in 2020 1,566 1,678 Total unamortized debt issuance costs $ 1,842 $ 2,283 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 bank (dollars in thousands) As of March 31, 2022 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,011,861 11.89 % $ 382,962 4.50 % $ 553,167 6.50 % Busey Bank $ 1,247,370 14.70 % $ 381,747 4.50 % $ 551,413 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,085,861 12.76 % $ 510,615 6.00 % $ 680,821 8.00 % Busey Bank $ 1,247,370 14.70 % $ 508,996 6.00 % $ 678,662 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,344,541 15.80 % $ 680,821 8.00 % $ 851,026 10.00 % Busey Bank $ 1,321,050 15.57 % $ 678,662 8.00 % $ 848,327 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,085,861 8.78 % $ 494,948 4.00 % N/A N/A Busey Bank $ 1,247,370 10.11 % $ 493,615 4.00 % $ 617,019 5.00 % As of December 31, 2021 Minimum Minimum To Be Well Actual Capital Requirement Capitalized Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk Weighted Assets Consolidated $ 995,874 11.85 % $ 378,334 4.50 % $ 546,482 6.50 % Busey Bank $ 1,241,303 14.81 % $ 377,096 4.50 % $ 544,695 6.50 % Tier 1 Capital to Risk Weighted Assets Consolidated $ 1,069,874 12.73 % $ 504,445 6.00 % $ 672,594 8.00 % Busey Bank $ 1,241,303 14.81 % $ 502,795 6.00 % $ 670,394 8.00 % Total Capital to Risk Weighted Assets Consolidated $ 1,320,187 15.70 % $ 672,594 8.00 % $ 840,742 10.00 % Busey Bank $ 1,306,616 15.59 % $ 670,394 8.00 % $ 837,992 10.00 % Leverage Ratio of Tier 1 Capital to Average Assets Consolidated $ 1,069,874 8.52 % $ 502,336 4.00 % N/A N/A Busey Bank $ 1,241,303 9.91 % $ 501,104 4.00 % $ 626,379 5.00 % |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock-based Compensation | |
Summary of changes in, the Company's stock option awards | The Company has outstanding stock options assumed from acquisitions. A summary of the status of, and changes in, the Company's stock option awards for the three months ended March 31, 2022, follows: Weighted- Weighted- Average Average Remaining Exercise Contractual Shares Price Life Outstanding at January 1, 2022 31,386 $ 23.53 4.88 Exercised — — Forfeited — — Expired (220) 23.53 Outstanding at March 31, 2022 31,166 $ 23.53 4.63 Exercisable at March 31, 2022 31,166 $ 23.53 4.63 |
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 three months ended March 31, 2022, 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 January 1, 2022 1,147,927 $ 23.97 113,915 $ 22.86 34,135 $ 24.59 Granted 156,483 25.79 195,240 25.79 32,658 25.79 Dividend equivalents earned 9,671 27.30 — — 1,107 27.30 Vested (13,594) 29.73 — — (32,801) 24.63 Forfeited (10,298) 24.05 (585) 23.48 — — Nonvested at March 31, 2022 1,290,189 $ 24.16 308,570 $ 24.71 35,099 $ 25.75 Vested and outstanding at March 31, 2022 130,098 $ 22.68 (1) Shares for PSU awards represent target shares at grant date. |
Schedule of Stock-based compensation expense | The Company recognized compensation expense related to nonvested RSU, PSU, and DSU awards, as well as the 2021 ESPP, as summarized in the table below (dollars in thousands) Three Months Ended March 31, 2022 2021 Stock-based compensation expense RSU awards $ 1,176 $ 1,230 PSU awards 412 60 DSU awards 226 158 2021 ESPP 95 — Total stock-based compensation expense $ 1,909 $ 1,448 |
Schedule of Unamortized stock-based compensation expense | Unamortized compensation expense related to nonvested RSU, PSU, and DSU awards is summarized in the table below (dollars in thousands) As of March 31, December 31, 2022 2021 Unamortized stock-based compensation RSU awards $ 12,838 $ 10,204 PSU awards 5,544 1,547 DSU awards 825 209 Total unamortized stock-based compensation $ 19,207 $ 11,960 Weighted average period over which expense is to be recognized 2.9 yrs 2.9 yrs |
Schedule of shares remaining available for issuance pursuant to authorized plans | Shares remaining available for issuance pursuant to authorized stock-based compensation plans as of March 31, 2022, were as follows: Shares Remaining Available for Issuance Pursuant to the Plan 2020 Equity Plan 643,569 2021 Employee Stock Purchase Plan 544,470 |
Outstanding Commitments and C_2
Outstanding Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Financial instruments whose contract amounts represent credit risk Commitments to extend credit $ 1,969,861 $ 1,983,655 Standby letters of credit 29,294 32,552 Total commitments $ 1,999,155 $ 2,016,207 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, Location 2022 2021 Debt Swap Notional amount $ 50,000 $ 50,000 Weighted average fixed pay rates 1.79 % 1.79 % Weighted average variable 3-month LIBOR receive rates 0.83 % 0.20 % Weighted average maturity, in years 2.46 yrs 2.71 yrs Loan Swap Notional amount $ 300,000 $ — Weighted average fixed receive rates 4.81 % — % Weighted average variable Prime pay rates 3.40 % — % Weighted average maturity, in years 6.85 yrs — yrs Gross aggregate fair value of the swaps Gross aggregate fair value of swap assets Other assets $ 835 $ — Gross aggregate fair value of swap liabilities Other liabilities $ 8,772 $ 958 Balances carried in AOCI Unrealized gains (losses) on cash flow hedges, net of tax AOCI $ (5,887) $ (685) |
Schedule of interest income (expense) recorded on swap transactions | Interest expense recorded on these swap transactions was as follows for the periods presented (dollars in thousands) Three Months Ended March 31, 2022 2021 Interest income (expense) on swap transactions $ 500 $ (278) |
Interest rate contract | |
Summary of Net gains (losses) relating to these derivative instruments | The following table reflects the net gains (losses) relating to cash flow derivative instruments that were recorded in AOCI and the unaudited Consolidated Statements of Income during the periods presented (dollars in thousands) Three Months Ended March 31, 2022 2021 Unrealized gains (losses) on cash flow hedges Gain (loss) recognized in OCI, net of tax $ (4,845) $ 410 (Gain) loss reclassified from OCI to interest expense, net of tax (357) 199 Net change in unrealized gains (losses) on cash flow hedges $ (5,202) $ 609 |
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 March 31, 2022 As of December 31, 2021 Notional Fair Notional Fair Location Amount Value Amount Value Derivatives with positive fair value Interest rate lock commitments Other assets $ 3,724 $ 38 $ 19,384 $ 206 Forward sales commitments Other assets 8,947 148 1,884 10 Mortgage banking derivatives recorded in other assets $ 12,671 $ 186 $ 21,268 $ 216 Derivatives with negative fair value Interest rate lock commitments Other liabilities $ 2,866 $ 23 $ 499 $ 6 Forward sales commitments Other liabilities 4,429 42 41,002 439 Mortgage banking derivatives recorded in other liabilities $ 7,295 $ 65 $ 41,501 $ 445 |
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 March 31, Location 2022 2021 Net gains (losses) Interest rate lock commitments Mortgage revenue $ 15 $ 472 Forward sales commitments Mortgage revenue 106 (820) Net gains (losses) $ 121 $ (348) |
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 March 31, 2022 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 $ 119,622 $ 3,467 $ 372,968 $ 13,080 Interest rate swaps – pay fixed, receive floating 372,968 13,080 119,622 3,467 Total derivatives not designated as hedging instruments $ 492,590 $ 16,547 $ 492,590 $ 16,547 As of December 31, 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 $ 404,572 $ 17,839 $ 86,784 $ 2,259 Interest rate swaps – pay fixed, receive floating 86,784 2,259 404,572 17,839 Total derivatives not designated as hedging instruments $ 491,356 $ 20,098 $ 491,356 $ 20,098 |
Summary of Net gains (losses) relating to these derivative instruments | Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the unaudited Consolidated Statements of Income and summarized as follows (dollars in thousands) Three Months Ended March 31, Location 2022 2021 Interest rate swaps Pay floating, receive fixed Noninterest expense $ (3,550) $ (10,595) Pay fixed, receive floating Noninterest expense 3,550 10,595 Net change in fair value of interest rate swaps $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of March 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 157,508 $ — $ 157,508 Obligations of U.S. government corporations and agencies — 34,301 — 34,301 Obligations of states and political subdivisions — 299,592 — 299,592 Asset-backed securities — 488,604 — 488,604 Commercial mortgage-backed securities — 107,502 — 107,502 Residential mortgage-backed securities — 1,575,376 — 1,575,376 Corporate debt securities — 283,172 — 283,172 Equity securities 5,948 13,572 — 19,520 Derivative assets — 17,568 5 17,573 Derivative liabilities — 25,384 — 25,384 As of December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Debt securities available for sale: U.S. Treasury securities $ — $ 165,762 $ — $ 165,762 Obligations of U.S. government corporations and agencies — 38,470 — 38,470 Obligations of states and political subdivisions — 306,869 — 306,869 Asset-backed securities — 492,186 — 492,186 Commercial mortgage-backed securities — 614,998 — 614,998 Residential mortgage-backed securities — 2,069,313 — 2,069,313 Corporate debt securities — 293,653 — 293,653 Equity securities — 13,571 — 13,571 Loans held for sale — 23,875 — 23,875 Derivative assets — 20,314 — 20,314 Derivative liabilities — 21,501 — 21,501 |
Schedule of assets and liabilities measured at fair value on a non-recurring basis | The following tables summarize assets and liabilities measured at fair value on a non-recurring basis for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) As of March 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually, net of related allowance $ — $ — $ 2,946 $ 2,946 OREO with subsequent impairment — — 2,228 2,228 Bank property held for sale with impairment — — 9,551 9,551 As of December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Loans evaluated individually, net of related allowance $ — $ — $ 2,926 $ 2,926 OREO with subsequent impairment — — 51 51 Bank property held for sale with impairment — — 10,103 10,103 |
Schedule of quantitative information about Level 3 fair value measurements | The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range March 31, 2022: Estimate Techniques Input (Weighted Average) Loans evaluated individually, net of related allowance $ 2,946 Appraisal of collateral Appraisal adjustments -50.0 % to -100.0 % (-53.4) % OREO with subsequent impairment 2,228 Appraisal of collateral Appraisal adjustments -16.0 % to -100.0 % (-24.4) % Bank property held for sale with impairment 9,551 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7 % to -70.1 % (-38.2) % December 31, 2021: Loans evaluated individually, net of related allowance $ 2,926 Appraisal of collateral Appraisal adjustments -50.0 % to -100.0 % (-55.1) % OREO with subsequent impairment 51 Appraisal of collateral Appraisal adjustments -33.0 % to -100.0 % (-67.9) % Bank property held for sale with impairment 10,103 Appraisal of collateral or real estate listing price Appraisal adjustments -0.7 % to -70.1 % (-41.3) % |
Schedule of estimated fair values of financial instruments | Financial Assets and Financial Liabilities That Are Not Carried at Fair Value Estimated fair values of financial instruments that are not carried at fair value in the Company’s 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 March 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets Level 1 inputs: Cash and cash equivalents $ 479,228 $ 479,228 $ 836,095 $ 836,095 Level 2 inputs: Debt securities held to maturity 976,081 942,846 — — Loans held for sale (1) 6,765 6,769 — — Accrued interest receivable 31,947 31,947 31,064 31,064 Level 3 inputs: Portfolio loans, net 7,184,660 7,195,985 7,101,111 7,161,466 Mortgage servicing rights 8,085 15,499 8,608 12,133 Other servicing rights 1,712 2,093 1,830 2,268 Financial liabilities Level 2 inputs: Time deposits $ 890,830 $ 882,358 $ 935,649 $ 935,778 Securities sold under agreements to repurchase 255,668 255,668 270,139 270,139 Short-term borrowings 17,683 17,745 17,678 17,673 Long-term debt 42,881 43,007 46,056 46,164 Junior subordinated debt owed to unconsolidated trusts 71,678 62,840 71,635 63,586 Accrued interest payable 5,116 5,116 2,728 2,728 Level 3 inputs: Senior notes, net of unamortized issuance costs 39,978 40,000 39,944 40,400 Subordinated notes, net of unamortized issuance costs 182,910 188,437 182,773 195,600 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Common 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 March 31, 2022 2021 Net income $ 28,439 $ 37,816 Shares: Weighted average common shares outstanding 55,427,696 54,471,860 Dilutive effect of outstanding options, warrants, and stock units as determined by the application of the treasury stock method 755,748 563,946 Dilutive effect of ESPP shares 11,502 — Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation 56,194,946 55,035,806 Basic earnings per common share $ 0.51 $ 0.69 Diluted earnings per common share $ 0.51 $ 0.69 |
Schedule of shares excluded from computation of diluted earnings per common share | Three Months Ended March 31, 2022 2021 Anti-dilutive common stock equivalents RSU and DSU awards — 243,396 PSU awards 241,452 114,883 Total anti-dilutive common stock equivalents 241,452 358,279 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | The following table represents changes in AOCI by component, net of tax, for the period below (dollars in thousands) Three Months Ended March 31, 2022 2021 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 $ (32,272) $ 9,199 $ (23,073) $ 49,644 $ (14,151) $ 35,493 Unrealized holding gains (losses) on debt securities available for sale, net (104,282) 29,726 (74,556) (42,072) 11,993 (30,079) Unrealized losses on debt securities transferred from held to maturity to available for sale (48,456) 13,812 (34,644) — — — Amounts reclassified from AOCI, net (106) 30 (76) (25) 7 (18) Amortization of unrealized losses on securities transferred to held to maturity 883 (252) 631 — — — Balance at end of period $ (184,233) $ 52,515 $ (131,718) $ 7,547 $ (2,151) $ 5,396 Unrealized gains (losses) on cash flow hedges Balance at beginning of period $ (958) $ 273 $ (685) $ (3,055) $ 871 $ (2,184) Unrealized holding gains (losses) on cash flow hedges, net (6,776) 1,931 (4,845) 574 (164) 410 Amounts reclassified from AOCI, net (500) 143 (357) 278 (79) 199 Balance at end of period $ (8,234) $ 2,347 $ (5,887) $ (2,203) $ 628 $ (1,575) Total AOCI $ (192,467) $ 54,862 $ (137,605) $ 5,344 $ (1,523) $ 3,821 |
Operating Segments and Relate_2
Operating Segments and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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. The “other” category included in the tables below consists of the parent company, First Busey Risk Management, and the elimination of intercompany transactions (dollars in thousands) Goodwill Total Assets As of As of March 31, December 31, March 31, December 31, 2022 2021 2022 2021 Operating segment Banking $ 294,773 $ 294,773 $ 12,450,999 $ 12,746,833 FirsTech 8,992 8,992 46,900 47,481 Wealth Management 14,108 14,108 71,364 65,587 Other — — (1,754) (212) Consolidated total $ 317,873 $ 317,873 $ 12,567,509 $ 12,859,689 Three Months Ended March 31, 2022 2021 Net interest income Banking $ 73,832 $ 68,455 FirsTech 18 20 Other (3,794) (3,582) Total net interest income $ 70,056 $ 64,893 Noninterest income Banking $ 15,286 $ 12,884 FirsTech 5,419 4,861 Wealth Management 15,776 12,587 Other (709) 1,113 Total noninterest income $ 35,772 $ 31,445 Noninterest expense Banking $ 55,567 $ 42,091 FirsTech 4,683 4,290 Wealth Management 8,265 6,565 Other 1,861 1,553 Total noninterest expense $ 70,376 $ 54,499 Income before income taxes Banking $ 33,804 $ 46,044 FirsTech 754 591 Wealth Management 7,511 6,022 Other (6,364) (4,022) Total income before income taxes $ 35,705 $ 48,635 Net income Banking $ 26,451 $ 35,528 FirsTech 550 429 Wealth Management 5,840 4,682 Other (4,402) (2,823) Total net income $ 28,439 $ 37,816 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Lease balances Right of use assets $ 9,014 $ 10,533 Lease liabilities 9,067 10,591 Supplemental information Year through which lease terms extend 2031 2031 Weighted average remaining lease term (in years) 6.27 6.47 Weighted average discount rate 2.04 % 2.16 % |
Schedule of lease costs and other lease information | The following table represents lease costs and cash flows related to leases for the periods presented (dollars in thousands) Three Months Ended March 31, 2022 2021 Lease costs Operating lease costs $ 617 $ 564 Variable lease costs 128 174 Short-term lease costs 4 18 Total lease cost (1) $ 749 $ 756 Cash flows related to leases Cash paid for amounts included in the measurement of lease liabilities: Operating lease cash flows – Fixed payments $ 631 $ 546 Operating lease cash flows – Liability reduction 585 495 Right of use assets obtained during the period in exchange for operating lease liabilities 55 148 (1) Lease costs are included in net occupancy and equipment expense in the unaudited Consolidated Statements of Income. |
Schedule of future undiscounted lease payments | The Company was obligated under noncancelable operating leases for office space and other commitments, as follows (dollars in thousands) As of March 31, 2022 Rent commitments Remainder of 2022 $ 1,684 2023 1,889 2024 1,429 2025 1,194 2026 945 Thereafter 2,509 Total undiscounted cash flows 9,650 Less: Amounts representing interest 583 Present value of net future minimum lease payments $ 9,067 |
Summary of revenue recorded in connection with leases | . Revenues recorded in connection with these leases and reported in other income on our unaudited Consolidated Statements of Income are summarized as follows (dollars in thousands) Three Months Ended March 31, 2022 2021 Rental income $ 230 $ 44 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)Centersegment | Dec. 31, 2021USD ($) | |
Nature of Operations | ||
Total Assets | $ 12,567,509 | $ 12,859,689 |
Number of Operating Segments | segment | 3 | |
Number of Banking Centers Consolidated | Center | 58 | |
COVID-19 | ||
Covid 19, Payroll Assistance | $ 1,100,000 | |
PPP Loans | ||
COVID-19 | ||
PPP loans outstanding | 32,500,000 | 76,900 |
PPP loans outstanding, amortized cost | $ 31,800 | $ 75,000 |
Acquisitions - Cummins-American
Acquisitions - Cummins-American Corp. (Details) $ / shares in Units, $ in Thousands | May 31, 2021USD ($)$ / shares | May 28, 2021USD ($)$ / shares | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Consideration paid | ||||
Goodwill | $ 317,873 | $ 317,873 | ||
CAC | ||||
Merger agreement | ||||
Share consideration conversion ratio | 444.4783 | |||
Per share cash consideration entitled (in dollars per share) | $ / shares | $ 14,173.96 | |||
Additional consideration paid in the form of a special dividend payment to CAC shareholders | $ / shares | $ 12,087.58 | |||
Special cash dividend | $ 60,000 | |||
Pre-tax acquisition expenses | 800 | |||
Assets acquired: | ||||
Cash and cash equivalents | $ 298,637 | |||
Securities | 702,367 | |||
Portfolio loans, net of ACL | 430,470 | |||
Premises and equipment | 17,034 | |||
Other intangible assets | 17,340 | |||
Mortgage servicing rights | 629 | |||
Other assets | 8,176 | |||
Total assets acquired | 1,474,653 | |||
Liabilities assumed: | ||||
Deposits | 1,315,671 | |||
Other borrowings | 16,651 | |||
Other liabilities | 19,205 | |||
Total liabilities assumed | 1,351,527 | |||
Net assets acquired | 123,126 | |||
Consideration paid | ||||
Cash | 70,358 | |||
Common stock | 59,105 | |||
Total consideration paid | 129,463 | |||
Goodwill | 6,337 | $ 6,300 | ||
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 |
Debt Securities - General Discl
Debt Securities - General Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt securities available for sale | |||
Amortized Cost | $ 3,082,715 | $ 4,013,523 | |
Gross Unrealized Gains | 2,669 | 22,382 | |
Gross Unrealized Losses | (139,329) | (54,654) | |
Fair Value | 2,946,055 | 3,981,251 | |
Debt securities held to maturity | |||
Amortized Cost | 976,081 | ||
Gross Unrealized Losses | (33,235) | ||
Fair Value | 942,846 | ||
Debt securities available for sale, Amortized Cost | |||
Due in one year or less | 174,918 | ||
Due after one year through five years | 456,926 | ||
Due after five years through ten years | 313,336 | ||
Due after ten years | 2,137,535 | ||
Amortized Cost | 3,082,715 | 4,013,523 | |
Debt securities available for sale, Fair Value | |||
Due in one year or less | 174,182 | ||
Due after one year through five years | 441,159 | ||
Due after five years through ten years | 303,050 | ||
Due after ten years | 2,027,664 | ||
Fair Value | 2,946,055 | 3,981,251 | |
Debt securities held to maturity, Amortized Cost | |||
Due after one year through five years | 48,405 | ||
Due after five years through ten years | 66,693 | ||
Due after ten years | 860,983 | ||
Amortised cost | 976,081 | ||
Debt securities held to maturity, Fair Value | |||
Due after one year through five years | 47,185 | ||
Due after five years through ten years | 64,572 | ||
Due after ten years | 831,089 | ||
Fair value | 942,846 | ||
Realized gains and losses on debt securities | |||
Gross security gains | 113 | $ 25 | |
Gross security (losses) | (7) | ||
Realized net gains (losses) on debt securities | 106 | $ 25 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 2,143,296 | 2,676,734 | |
Continuous unrealized losses existing for greater than 12 months, gross | 450,478 | 106,443 | |
Total, gross | 2,593,774 | 2,783,177 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (96,653) | (49,847) | |
Continuous unrealized losses existing greater than 12 months, gross | (42,676) | (4,807) | |
Total, gross | (139,329) | (54,654) | |
Debt securities held to maturity, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 693,912 | ||
Continuous unrealized losses existing for greater than 12 months, gross | 248,934 | ||
Total, gross | 942,846 | ||
Debt securities held to maturity, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (25,269) | ||
Continuous unrealized losses existing for greater than 12 months, gross | (7,966) | ||
Total, gross | (33,235) | ||
U.S. Treasury securities | |||
Debt securities available for sale | |||
Amortized Cost | 160,990 | 166,768 | |
Gross Unrealized Gains | 16 | 41 | |
Gross Unrealized Losses | (3,498) | (1,047) | |
Fair Value | 157,508 | 165,762 | |
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 160,990 | 166,768 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 157,508 | 165,762 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 155,422 | 163,653 | |
Total, gross | 155,422 | 163,653 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (3,498) | (1,047) | |
Total, gross | (3,498) | (1,047) | |
Obligations of U.S. government corporations and agencies | |||
Debt securities available for sale | |||
Amortized Cost | 34,069 | 37,579 | |
Gross Unrealized Gains | 243 | 891 | |
Gross Unrealized Losses | (11) | ||
Fair Value | 34,301 | 38,470 | |
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 34,069 | 37,579 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 34,301 | 38,470 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 390 | ||
Total, gross | 390 | ||
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (11) | ||
Total, gross | (11) | ||
Obligations of states and political subdivisions | |||
Debt securities available for sale | |||
Amortized Cost | 308,514 | 300,602 | |
Gross Unrealized Gains | 1,378 | 7,760 | |
Gross Unrealized Losses | (10,300) | (1,493) | |
Fair Value | 299,592 | 306,869 | |
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 308,514 | 300,602 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 299,592 | 306,869 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 158,528 | 92,680 | |
Continuous unrealized losses existing for greater than 12 months, gross | 9,847 | ||
Total, gross | 168,375 | 92,680 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (9,277) | (1,493) | |
Continuous unrealized losses existing greater than 12 months, gross | (1,023) | ||
Total, gross | (10,300) | (1,493) | |
Commercial mortgage-backed securities | |||
Debt securities available for sale | |||
Amortized Cost | 111,535 | 625,339 | |
Gross Unrealized Gains | 30 | 3,425 | |
Gross Unrealized Losses | (4,063) | (13,766) | |
Fair Value | 107,502 | 614,998 | |
Debt securities held to maturity | |||
Amortized Cost | 503,285 | ||
Gross Unrealized Losses | (15,521) | ||
Fair Value | 487,764 | ||
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 111,535 | 625,339 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 107,502 | 614,998 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 87,087 | 389,078 | |
Continuous unrealized losses existing for greater than 12 months, gross | 7,203 | 85,905 | |
Total, gross | 94,290 | 474,983 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (3,558) | (10,186) | |
Continuous unrealized losses existing greater than 12 months, gross | (505) | (3,580) | |
Total, gross | (4,063) | (13,766) | |
Debt securities held to maturity, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 281,462 | ||
Continuous unrealized losses existing for greater than 12 months, gross | 206,302 | ||
Total, gross | 487,764 | ||
Debt securities held to maturity, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (9,329) | ||
Continuous unrealized losses existing for greater than 12 months, gross | (6,192) | ||
Total, gross | (15,521) | ||
Residential mortgage-backed securities | |||
Debt securities available for sale | |||
Amortized Cost | 1,678,891 | 2,095,104 | |
Gross Unrealized Gains | 629 | 8,889 | |
Gross Unrealized Losses | (104,144) | (34,680) | |
Fair Value | 1,575,376 | 2,069,313 | |
Debt securities held to maturity | |||
Amortized Cost | 472,796 | ||
Gross Unrealized Losses | (17,714) | ||
Fair Value | 455,082 | ||
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 1,678,891 | 2,095,104 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 1,575,376 | 2,069,313 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 1,054,313 | 1,700,187 | |
Continuous unrealized losses existing for greater than 12 months, gross | 393,830 | 20,538 | |
Total, gross | 1,448,143 | 1,720,725 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (65,980) | (33,453) | |
Continuous unrealized losses existing greater than 12 months, gross | (38,164) | (1,227) | |
Total, gross | (104,144) | (34,680) | |
Debt securities held to maturity, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 412,450 | ||
Continuous unrealized losses existing for greater than 12 months, gross | 42,632 | ||
Total, gross | 455,082 | ||
Debt securities held to maturity, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (15,940) | ||
Continuous unrealized losses existing for greater than 12 months, gross | (1,774) | ||
Total, gross | (17,714) | ||
Asset-backed securities | |||
Debt securities available for sale | |||
Amortized Cost | 491,269 | 492,055 | |
Gross Unrealized Gains | 12 | 295 | |
Gross Unrealized Losses | (2,677) | (164) | |
Fair Value | 488,604 | 492,186 | |
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 491,269 | 492,055 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 488,604 | 492,186 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 470,964 | 89,983 | |
Total, gross | 470,964 | 89,983 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (2,677) | (164) | |
Total, gross | (2,677) | (164) | |
Corporate debt securities | |||
Debt securities available for sale | |||
Amortized Cost | 297,447 | 296,076 | |
Gross Unrealized Gains | 361 | 1,081 | |
Gross Unrealized Losses | (14,636) | (3,504) | |
Fair Value | 283,172 | 293,653 | |
Debt securities available for sale, Amortized Cost | |||
Amortized Cost | 297,447 | 296,076 | |
Debt securities available for sale, Fair Value | |||
Fair Value | 283,172 | 293,653 | |
Debt securities available for sale, Fair Value | |||
Continuous unrealized losses existing for less than 12 months, gross | 216,592 | 241,153 | |
Continuous unrealized losses existing for greater than 12 months, gross | 39,598 | ||
Total, gross | 256,190 | 241,153 | |
Debt securities available for sale, Unrealized Losses | |||
Continuous unrealized losses existing for less than 12 months, gross | (11,652) | (3,504) | |
Continuous unrealized losses existing greater than 12 months, gross | (2,984) | ||
Total, gross | $ (14,636) | $ (3,504) |
Debt Securities - Additional In
Debt Securities - Additional Information (Details) $ in Thousands | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Available for Sale | ||
Debt securities with gross unrealized losses, fair value | $ | $ 2,593,774 | $ 2,783,177 |
Gross unrealized losses on debt securities | $ | $ 139,329 | $ 54,654 |
Ratio of gross unrealized losses to debt securities with gross unrealized losses | 5.40% | 2.00% |
Count of debt securities | security | 1,185 | 1,252 |
Count of debt securities in an unrealized loss position | security | 645 | 373 |
Held to Maturity | ||
Debt securities with gross unrealized losses, fair value | $ | $ 942,846 | |
Gross unrealized losses on debt securities | $ | $ 33,235 | |
Ratio of gross unrealized losses to debt securities with gross unrealized losses | 3.50% | |
Count of debt securities | security | 55 | |
Count of debt securities in an unrealized loss position | security | 55 | |
Total | ||
Debt securities with gross unrealized losses, fair value | $ | $ 3,536,620 | $ 2,783,177 |
Gross unrealized losses on debt securities | $ | $ 172,564 | $ 54,654 |
Ratio of gross unrealized losses to debt securities with gross unrealized losses | 4.90% | 2.00% |
Count of debt securities | security | 1,240 | 1,252 |
Count of debt securities in an unrealized loss position | security | 700 | 373 |
Debt Securities - Narrative (De
Debt Securities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities | ||
Debt securities pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes | $ 717.6 | $ 708.9 |
Portfolio Loans- Distribution o
Portfolio Loans- Distribution of portfolio loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Distributions of portfolio loans | ||||
Portfolio loans | $ 7,272,873 | $ 7,188,998 | ||
ACL | (88,213) | (87,887) | $ (93,943) | $ (101,048) |
Portfolio loans, net | 7,184,660 | 7,101,111 | ||
Commercial Loans | ||||
Distributions of portfolio loans | ||||
Portfolio loans | 1,906,595 | 1,943,886 | ||
ACL | (24,173) | (23,855) | (23,025) | (23,866) |
Commercial Real Estate Loans | ||||
Distributions of portfolio loans | ||||
Portfolio loans | 3,134,794 | 3,119,807 | ||
ACL | (37,339) | (38,249) | (43,306) | (46,230) |
Real Estate Construction | ||||
Distributions of portfolio loans | ||||
Portfolio loans | 445,428 | 385,996 | ||
ACL | (5,705) | (5,102) | (6,879) | (8,193) |
Retail real estate | ||||
Distributions of portfolio loans | ||||
Portfolio loans | 1,544,365 | 1,512,976 | ||
ACL | (17,555) | (17,589) | (19,978) | (21,992) |
Retail other | ||||
Distributions of portfolio loans | ||||
Portfolio loans | 241,691 | 226,333 | ||
ACL | $ (3,441) | $ (3,092) | $ (755) | $ (767) |
Portfolio Loans - Narrative (De
Portfolio Loans - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022USD ($)loan | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2021USD ($) | |
Distributions of portfolio loans | ||||||
Net deferred loan origination (fees) costs | $ 9,000 | |||||
Net deferred loan origination costs | $ 10,600 | |||||
Net accretable purchase accounting adjustments | 7,700 | 8,800 | ||||
Gross interest income that would have been recorded if impaired loans had been current | $ 200 | $ 500 | ||||
Amount of interest collected and recognized on a cash basis | $ 400 | $ 400 | ||||
TDRs subsequently classified as non-performing and had payment defaults | loan | 0 | 0 | ||||
Loans in the process of foreclosure | $ 500 | |||||
Retail real estate | ||||||
Distributions of portfolio loans | ||||||
Loans purchased | $ 0 | $ 0 | ||||
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 | $ 31,800 | $ 75,000 |
Portfolio Loans - Summary of ri
Portfolio Loans - Summary of risk grades segregated by category (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans | ||
Portfolio loans | $ 7,272,873 | $ 7,188,998 |
Pass | ||
Loans | ||
Portfolio loans | 6,688,300 | 6,518,101 |
Watch | ||
Loans | ||
Portfolio loans | 361,791 | 463,053 |
Special Mention | ||
Loans | ||
Portfolio loans | 130,228 | 121,120 |
Substandard | ||
Loans | ||
Portfolio loans | 80,066 | 70,778 |
Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 12,488 | 15,946 |
Commercial | ||
Loans | ||
Portfolio loans | 1,906,595 | 1,943,886 |
Commercial | Pass | ||
Loans | ||
Portfolio loans | 1,725,369 | 1,747,756 |
Commercial | Watch | ||
Loans | ||
Portfolio loans | 73,471 | 93,582 |
Commercial | Special Mention | ||
Loans | ||
Portfolio loans | 74,967 | 69,427 |
Commercial | Substandard | ||
Loans | ||
Portfolio loans | 26,028 | 26,117 |
Commercial | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 6,760 | 7,004 |
Commercial real estate | ||
Loans | ||
Portfolio loans | 3,134,794 | 3,119,807 |
Commercial real estate | Pass | ||
Loans | ||
Portfolio loans | 2,769,016 | 2,682,441 |
Commercial real estate | Watch | ||
Loans | ||
Portfolio loans | 262,411 | 343,304 |
Commercial real estate | Special Mention | ||
Loans | ||
Portfolio loans | 53,195 | 49,695 |
Commercial real estate | Substandard | ||
Loans | ||
Portfolio loans | 47,567 | 38,394 |
Commercial real estate | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 2,605 | 5,973 |
Real estate construction | ||
Loans | ||
Portfolio loans | 445,428 | 385,996 |
Real estate construction | Pass | ||
Loans | ||
Portfolio loans | 428,467 | 369,797 |
Real estate construction | Watch | ||
Loans | ||
Portfolio loans | 14,557 | 13,793 |
Real estate construction | Special Mention | ||
Loans | ||
Portfolio loans | 4 | 6 |
Real estate construction | Substandard | ||
Loans | ||
Portfolio loans | 2,400 | 2,400 |
Retail real estate | ||
Loans | ||
Portfolio loans | 1,544,365 | 1,512,976 |
Retail real estate | Pass | ||
Loans | ||
Portfolio loans | 1,523,791 | 1,491,845 |
Retail real estate | Watch | ||
Loans | ||
Portfolio loans | 11,352 | 12,374 |
Retail real estate | Special Mention | ||
Loans | ||
Portfolio loans | 2,062 | 1,992 |
Retail real estate | Substandard | ||
Loans | ||
Portfolio loans | 4,071 | 3,867 |
Retail real estate | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 3,089 | 2,898 |
Retail other | ||
Loans | ||
Portfolio loans | 241,691 | 226,333 |
Retail other | Pass | ||
Loans | ||
Portfolio loans | 241,657 | 226,262 |
Retail other | Substandard Non-accrual | ||
Loans | ||
Portfolio loans | 34 | 71 |
Commercial Loans | ||
Loans | ||
Portfolio loans | 1,906,595 | 1,943,886 |
Commercial Real Estate Loans | ||
Loans | ||
Portfolio loans | 3,134,794 | 3,119,807 |
Real Estate Construction | ||
Loans | ||
Portfolio loans | 445,428 | 385,996 |
Retail real estate | ||
Loans | ||
Portfolio loans | 1,544,365 | 1,512,976 |
Retail other | ||
Loans | ||
Portfolio loans | $ 241,691 | $ 226,333 |
Portfolio Loans - Risk grades o
Portfolio Loans - Risk grades of portfolio loans by origination year (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans | ||
2022 / 2021 | $ 764,975 | $ 2,393,701 |
2021 / 2020 | 2,171,718 | 1,296,955 |
2020 / 2019 | 1,204,783 | 845,248 |
2019/ 2018 | 720,770 | 503,186 |
2018 / 2017 | 437,590 | 434,084 |
Prior | 969,849 | 671,510 |
Revolving loans | 1,003,188 | 1,044,314 |
Total | 7,272,873 | 7,188,998 |
Pass | ||
Loans | ||
Total | 6,688,300 | 6,518,101 |
Watch | ||
Loans | ||
Total | 361,791 | 463,053 |
Special Mention | ||
Loans | ||
Total | 130,228 | 121,120 |
Substandard | ||
Loans | ||
Total | 80,066 | 70,778 |
Substandard Non-accrual | ||
Loans | ||
Total | 12,488 | 15,946 |
Commercial | ||
Loans | ||
2022 / 2021 | 226,627 | 541,359 |
2021 / 2020 | 410,414 | 239,348 |
2020 / 2019 | 195,865 | 131,390 |
2019/ 2018 | 101,522 | 95,813 |
2018 / 2017 | 87,332 | 83,947 |
Prior | 215,472 | 142,640 |
Revolving loans | 669,363 | 709,389 |
Total | 1,906,595 | 1,943,886 |
Commercial | Pass | ||
Loans | ||
2022 / 2021 | 220,582 | 512,729 |
2021 / 2020 | 386,332 | 228,811 |
2020 / 2019 | 187,571 | 107,877 |
2019/ 2018 | 82,617 | 84,873 |
2018 / 2017 | 80,606 | 74,351 |
Prior | 187,281 | 122,418 |
Revolving loans | 580,380 | 616,697 |
Total | 1,725,369 | 1,747,756 |
Commercial | Watch | ||
Loans | ||
2022 / 2021 | 1,641 | 13,847 |
2021 / 2020 | 13,751 | 5,913 |
2020 / 2019 | 4,536 | 14,274 |
2019/ 2018 | 9,391 | 5,060 |
2018 / 2017 | 1,412 | 1,361 |
Prior | 3,315 | 2,866 |
Revolving loans | 39,425 | 50,261 |
Total | 73,471 | 93,582 |
Commercial | Special Mention | ||
Loans | ||
2022 / 2021 | 2,668 | 7,062 |
2021 / 2020 | 4,799 | 898 |
2020 / 2019 | 191 | 5,961 |
2019/ 2018 | 6,125 | 4,025 |
2018 / 2017 | 3,753 | 6,790 |
Prior | 17,998 | 11,845 |
Revolving loans | 39,433 | 32,846 |
Total | 74,967 | 69,427 |
Commercial | Substandard | ||
Loans | ||
2022 / 2021 | 1,736 | 3,595 |
2021 / 2020 | 1,586 | 3,362 |
2020 / 2019 | 3,222 | 3,136 |
2019/ 2018 | 3,248 | 1,855 |
2018 / 2017 | 1,561 | 1,125 |
Prior | 6,550 | 5,459 |
Revolving loans | 8,125 | 7,585 |
Total | 26,028 | 26,117 |
Commercial | Substandard Non-accrual | ||
Loans | ||
2022 / 2021 | 4,126 | |
2021 / 2020 | 3,946 | 364 |
2020 / 2019 | 345 | 142 |
2019/ 2018 | 141 | |
2018 / 2017 | 320 | |
Prior | 328 | 52 |
Revolving loans | 2,000 | 2,000 |
Total | 6,760 | 7,004 |
Commercial real estate | ||
Loans | ||
2022 / 2021 | 316,683 | 1,051,764 |
2021 / 2020 | 1,021,818 | 687,392 |
2020 / 2019 | 648,048 | 557,336 |
2019/ 2018 | 464,112 | 307,458 |
2018 / 2017 | 258,537 | 257,419 |
Prior | 408,470 | 240,922 |
Revolving loans | 17,126 | 17,516 |
Total | 3,134,794 | 3,119,807 |
Commercial real estate | Pass | ||
Loans | ||
2022 / 2021 | 287,524 | 969,548 |
2021 / 2020 | 961,636 | 637,550 |
2020 / 2019 | 608,378 | 425,850 |
2019/ 2018 | 349,992 | 235,928 |
2018 / 2017 | 216,247 | 200,373 |
Prior | 330,243 | 198,002 |
Revolving loans | 14,996 | 15,190 |
Total | 2,769,016 | 2,682,441 |
Commercial real estate | Watch | ||
Loans | ||
2022 / 2021 | 22,162 | 51,560 |
2021 / 2020 | 33,489 | 38,820 |
2020 / 2019 | 23,614 | 123,324 |
2019/ 2018 | 110,412 | 48,088 |
2018 / 2017 | 22,540 | 46,761 |
Prior | 48,163 | 32,608 |
Revolving loans | 2,031 | 2,143 |
Total | 262,411 | 343,304 |
Commercial real estate | Special Mention | ||
Loans | ||
2022 / 2021 | 5,765 | 9,542 |
2021 / 2020 | 5,971 | 7,060 |
2020 / 2019 | 12,850 | 6,585 |
2019/ 2018 | 2,321 | 10,098 |
2018 / 2017 | 7,375 | 6,357 |
Prior | 18,814 | 9,870 |
Revolving loans | 99 | 183 |
Total | 53,195 | 49,695 |
Commercial real estate | Substandard | ||
Loans | ||
2022 / 2021 | 1,232 | 21,002 |
2021 / 2020 | 20,611 | 3,781 |
2020 / 2019 | 3,034 | 1,218 |
2019/ 2018 | 1,028 | 11,451 |
2018 / 2017 | 10,429 | 521 |
Prior | 11,233 | 421 |
Total | 47,567 | 38,394 |
Commercial real estate | Substandard Non-accrual | ||
Loans | ||
2022 / 2021 | 112 | |
2021 / 2020 | 111 | 181 |
2020 / 2019 | 172 | 359 |
2019/ 2018 | 359 | 1,893 |
2018 / 2017 | 1,946 | 3,407 |
Prior | 17 | 21 |
Total | 2,605 | 5,973 |
Real estate construction | ||
Loans | ||
2022 / 2021 | 68,943 | 209,968 |
2021 / 2020 | 189,943 | 130,050 |
2020 / 2019 | 133,276 | 31,987 |
2019/ 2018 | 31,765 | 3,155 |
2018 / 2017 | 2,575 | 2,312 |
Prior | 3,535 | 1,343 |
Revolving loans | 15,391 | 7,181 |
Total | 445,428 | 385,996 |
Real estate construction | Pass | ||
Loans | ||
2022 / 2021 | 65,127 | 202,082 |
2021 / 2020 | 184,303 | 123,491 |
2020 / 2019 | 127,358 | 31,927 |
2019/ 2018 | 31,709 | 3,155 |
2018 / 2017 | 2,575 | 738 |
Prior | 2,004 | 1,223 |
Revolving loans | 15,391 | 7,181 |
Total | 428,467 | 369,797 |
Real estate construction | Watch | ||
Loans | ||
2022 / 2021 | 3,816 | 7,886 |
2021 / 2020 | 5,640 | 4,159 |
2020 / 2019 | 3,518 | 54 |
2019/ 2018 | 52 | |
2018 / 2017 | 1,574 | |
Prior | 1,531 | 120 |
Total | 14,557 | 13,793 |
Real estate construction | Special Mention | ||
Loans | ||
2020 / 2019 | 6 | |
2019/ 2018 | 4 | |
Total | 4 | 6 |
Real estate construction | Substandard | ||
Loans | ||
2021 / 2020 | 2,400 | |
2020 / 2019 | 2,400 | |
Total | 2,400 | 2,400 |
Retail real estate | ||
Loans | ||
2022 / 2021 | 115,800 | 531,210 |
2021 / 2020 | 495,128 | 217,850 |
2020 / 2019 | 207,795 | 98,409 |
2019/ 2018 | 100,808 | 80,557 |
2018 / 2017 | 76,164 | 83,213 |
Prior | 336,778 | 285,279 |
Revolving loans | 211,892 | 216,458 |
Total | 1,544,365 | 1,512,976 |
Retail real estate | Pass | ||
Loans | ||
2022 / 2021 | 114,026 | 523,541 |
2021 / 2020 | 490,691 | 215,068 |
2020 / 2019 | 205,598 | 96,617 |
2019/ 2018 | 99,087 | 79,158 |
2018 / 2017 | 74,589 | 82,478 |
Prior | 332,410 | 281,737 |
Revolving loans | 207,390 | 213,246 |
Total | 1,523,791 | 1,491,845 |
Retail real estate | Watch | ||
Loans | ||
2022 / 2021 | 1,629 | 4,100 |
2021 / 2020 | 1,208 | 2,460 |
2020 / 2019 | 1,830 | 1,780 |
2019/ 2018 | 1,628 | 1,312 |
2018 / 2017 | 1,269 | 343 |
Prior | 172 | 150 |
Revolving loans | 3,616 | 2,229 |
Total | 11,352 | 12,374 |
Retail real estate | Special Mention | ||
Loans | ||
2022 / 2021 | 145 | 1,965 |
2021 / 2020 | 1,892 | 27 |
2020 / 2019 | 25 | |
Total | 2,062 | 1,992 |
Retail real estate | Substandard | ||
Loans | ||
2022 / 2021 | 1,369 | |
2021 / 2020 | 1,095 | 232 |
2020 / 2019 | 224 | 12 |
2019/ 2018 | 93 | 71 |
2018 / 2017 | 70 | 165 |
Prior | 2,261 | 1,687 |
Revolving loans | 328 | 331 |
Total | 4,071 | 3,867 |
Retail real estate | Substandard Non-accrual | ||
Loans | ||
2022 / 2021 | 235 | |
2021 / 2020 | 242 | 63 |
2020 / 2019 | 118 | |
2019/ 2018 | 16 | |
2018 / 2017 | 236 | 227 |
Prior | 1,935 | 1,705 |
Revolving loans | 558 | 652 |
Total | 3,089 | 2,898 |
Retail other | ||
Loans | ||
2022 / 2021 | 36,922 | 59,400 |
2021 / 2020 | 54,415 | 22,315 |
2020 / 2019 | 19,799 | 26,126 |
2019/ 2018 | 22,563 | 16,203 |
2018 / 2017 | 12,982 | 7,193 |
Prior | 5,594 | 1,326 |
Revolving loans | 89,416 | 93,770 |
Total | 241,691 | 226,333 |
Retail other | Pass | ||
Loans | ||
2022 / 2021 | 36,922 | 59,366 |
2021 / 2020 | 54,381 | 22,305 |
2020 / 2019 | 19,799 | 26,126 |
2019/ 2018 | 22,563 | 16,189 |
2018 / 2017 | 12,982 | 7,180 |
Prior | 5,594 | 1,326 |
Revolving loans | 89,416 | 93,770 |
Total | 241,657 | 226,262 |
Retail other | Substandard Non-accrual | ||
Loans | ||
2022 / 2021 | 34 | |
2021 / 2020 | 34 | 10 |
2019/ 2018 | 14 | |
2018 / 2017 | 13 | |
Total | 34 | 71 |
Commercial Loans | ||
Loans | ||
Total | 1,906,595 | 1,943,886 |
Commercial Real Estate Loans | ||
Loans | ||
Total | 3,134,794 | 3,119,807 |
Real Estate Construction | ||
Loans | ||
Total | 445,428 | 385,996 |
Retail real estate | ||
Loans | ||
Total | 1,544,365 | 1,512,976 |
Retail other | ||
Loans | ||
Total | $ 241,691 | $ 226,333 |
Portfolio Loans - Analysis of l
Portfolio Loans - Analysis of loans past due and still accruing or non-accrual status (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans past due | ||
90+Days | $ 197 | $ 906 |
Non-accrual Loans | 12,488 | 15,946 |
30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 3,213 | 3,964 |
60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 703 | 2,297 |
Commercial | ||
Loans past due | ||
90+Days | 213 | |
Non-accrual Loans | 6,760 | 7,004 |
Commercial | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 358 | 363 |
Commercial | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 93 | 10 |
Commercial real estate | ||
Loans past due | ||
Non-accrual Loans | 2,605 | 5,973 |
Commercial real estate | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 151 | |
Commercial real estate | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 441 | |
Real estate construction | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 56 | |
Real estate construction | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 48 | |
Retail real estate | ||
Loans past due | ||
90+Days | 173 | 693 |
Non-accrual Loans | 3,089 | 2,898 |
Retail real estate | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 2,732 | 3,312 |
Retail real estate | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | 555 | 1,830 |
Retail other | ||
Loans past due | ||
90+Days | 24 | |
Non-accrual Loans | 34 | 71 |
Retail other | 30 to 59 Days | ||
Loans past due | ||
Loans past due, still accruing | 123 | 82 |
Retail other | 60 to 89 Days | ||
Loans past due | ||
Loans past due, still accruing | $ 7 | $ 16 |
Portfolio Loans - Summary of TD
Portfolio Loans - Summary of TDR Loan Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Restructured loans | ||
Total TDRs | $ 2,300 | $ 2,352 |
In compliance with modified terms | ||
Restructured loans | ||
Total TDRs | 1,771 | 1,801 |
Included in non-performing loans | ||
Restructured loans | ||
Total TDRs | $ 529 | $ 551 |
Portfolio Loans - Summarize TDR
Portfolio Loans - Summarize TDRs (Details) - Commercial $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)contract | |
Financing Receivable, Impaired [Line Items] | |
Number of Contracts | contract | 1 |
Rate Modification | |
Financing Receivable, Impaired [Line Items] | |
Recorded Investment | $ | $ 483 |
Portfolio Loans - Modified loan
Portfolio Loans - Modified loans with payment deferrals (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)contract | Mar. 31, 2021contract | Dec. 31, 2021USD ($)contract | |
COVID-19 loan modifications | |||
Loans identified as impaired | |||
Number of Contracts | 15 | 34 | |
Recorded Investment | $ | $ 37,374 | $ 128,867 | |
Commercial | |||
Loans identified as impaired | |||
Number of Contracts | 1 | ||
Commercial | Interest-only deferrals | |||
Loans identified as impaired | |||
Number of Contracts | 15 | 32 | |
Recorded Investment | $ | $ 37,374 | $ 128,730 | |
Consumer | Mortgage and personal loan deferrals | |||
Loans identified as impaired | |||
Number of Contracts | 2 | ||
Recorded Investment | $ | $ 137 |
Portfolio Loans - Loans identif
Portfolio Loans - Loans identified as impaired, segregated by category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | $ 15,879 | $ 19,489 |
Recorded Investment with No Allowance | 5,453 | 8,865 |
Recorded Investment with Allowance | 6,316 | 6,515 |
Total Recorded Investment | 11,769 | 15,380 |
Related Allowance | 3,370 | 3,589 |
Average Recorded Investment | 17,862 | 19,556 |
Collateral dependent loans secured by real estate or business assets | 4,800 | 7,900 |
Commercial Loans | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 10,040 | 10,247 |
Recorded Investment with No Allowance | 490 | 498 |
Recorded Investment with Allowance | 6,291 | 6,490 |
Total Recorded Investment | 6,781 | 6,988 |
Related Allowance | 3,345 | 3,564 |
Average Recorded Investment | 8,473 | 8,791 |
Commercial Real Estate Loans | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 3,093 | 6,456 |
Recorded Investment with No Allowance | 2,386 | 5,750 |
Total Recorded Investment | 2,386 | 5,750 |
Average Recorded Investment | 5,654 | 6,390 |
Real Estate Construction | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 266 | 272 |
Recorded Investment with No Allowance | 266 | 272 |
Total Recorded Investment | 266 | 272 |
Average Recorded Investment | 277 | 282 |
Retail real estate | ||
Loans identified as impaired | ||
Unpaid Contractual Principal Balance | 2,480 | 2,514 |
Recorded Investment with No Allowance | 2,311 | 2,345 |
Recorded Investment with Allowance | 25 | 25 |
Total Recorded Investment | 2,336 | 2,370 |
Related Allowance | 25 | 25 |
Average Recorded Investment | $ 3,458 | $ 4,093 |
Portfolio Loans - Activity in t
Portfolio Loans - Activity in the allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Activity in the allowance for loan losses | |||
ACL beginning balance | $ 87,887 | $ 101,048 | |
Provision for credit losses | (253) | (6,796) | |
Charged-off | (125) | (964) | |
Recoveries | 704 | 655 | |
ACL ending balance | 88,213 | 93,943 | |
Allowance for loan losses Ending balance attributed to: | |||
Collectively evaluated for impairment | 84,843 | $ 84,298 | |
Individually evaluated for impairment | 3,370 | 3,589 | |
Total | 88,213 | 93,943 | 87,887 |
Loans: | |||
Collectively evaluated for impairment | 7,261,104 | 7,173,618 | |
Individually evaluated for impairment | 11,769 | 15,380 | |
Total | 7,272,873 | 7,188,998 | |
Commercial Loans | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 23,855 | 23,866 | |
Provision for credit losses | 251 | (665) | |
Charged-off | (262) | ||
Recoveries | 67 | 86 | |
ACL ending balance | 24,173 | 23,025 | |
Allowance for loan losses Ending balance attributed to: | |||
Collectively evaluated for impairment | 20,828 | 20,291 | |
Individually evaluated for impairment | 3,345 | 3,564 | |
Total | 24,173 | 23,025 | 23,855 |
Loans: | |||
Collectively evaluated for impairment | 1,899,814 | 1,936,898 | |
Individually evaluated for impairment | 6,781 | 6,988 | |
Total | 1,906,595 | 1,943,886 | |
Commercial Real Estate Loans | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 38,249 | 46,230 | |
Provision for credit losses | (1,218) | (2,695) | |
Charged-off | (303) | ||
Recoveries | 308 | 74 | |
ACL ending balance | 37,339 | 43,306 | |
Allowance for loan losses Ending balance attributed to: | |||
Collectively evaluated for impairment | 37,339 | 38,249 | |
Total | 37,339 | 43,306 | 38,249 |
Loans: | |||
Collectively evaluated for impairment | 3,132,408 | 3,114,057 | |
Individually evaluated for impairment | 2,386 | 5,750 | |
Total | 3,134,794 | 3,119,807 | |
Real Estate Construction | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 5,102 | 8,193 | |
Provision for credit losses | 510 | (1,250) | |
Charged-off | (209) | ||
Recoveries | 93 | 145 | |
ACL ending balance | 5,705 | 6,879 | |
Allowance for loan losses Ending balance attributed to: | |||
Collectively evaluated for impairment | 5,705 | 5,102 | |
Total | 5,705 | 6,879 | 5,102 |
Loans: | |||
Collectively evaluated for impairment | 445,162 | 385,724 | |
Individually evaluated for impairment | 266 | 272 | |
Total | 445,428 | 385,996 | |
Retail real estate | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 17,589 | 21,992 | |
Provision for credit losses | (170) | (2,276) | |
Charged-off | (16) | (3) | |
Recoveries | 152 | 265 | |
ACL ending balance | 17,555 | 19,978 | |
Allowance for loan losses Ending balance attributed to: | |||
Collectively evaluated for impairment | 17,530 | 17,564 | |
Individually evaluated for impairment | 25 | 25 | |
Total | 17,555 | 19,978 | 17,589 |
Loans: | |||
Collectively evaluated for impairment | 1,542,029 | 1,510,606 | |
Individually evaluated for impairment | 2,336 | 2,370 | |
Total | 1,544,365 | 1,512,976 | |
Retail other | |||
Activity in the allowance for loan losses | |||
ACL beginning balance | 3,092 | 767 | |
Provision for credit losses | 374 | 90 | |
Charged-off | (109) | (187) | |
Recoveries | 84 | 85 | |
ACL ending balance | 3,441 | 755 | |
Allowance for loan losses Ending balance attributed to: | |||
Collectively evaluated for impairment | 3,441 | 3,092 | |
Total | 3,441 | $ 755 | 3,092 |
Loans: | |||
Collectively evaluated for impairment | 241,691 | 226,333 | |
Total | $ 241,691 | $ 226,333 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
Demand deposits, noninterest-bearing | $ 3,568,651 | $ 3,670,267 |
Interest-bearing transaction deposits | 2,647,305 | 2,720,417 |
Saving deposits and money market deposits | 3,485,050 | 3,442,244 |
Time deposits | 890,830 | 935,649 |
Total deposits | 10,591,836 | 10,768,577 |
Brokered saving deposits and money market deposits | 2,002 | 2,248 |
Brokered time deposits | 268 | 266 |
Aggregate amount of time deposits with a minimum denomination of $100,000 | 437,048 | 454,649 |
Aggregate amount of time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 | 139,245 | 137,449 |
Time Deposits, Rolling Year Maturity | ||
April 1, 2022 - March 31, 2023 | 640,465 | |
April 1, 2023 - March 31, 2024 | 169,339 | |
April 1, 2024 - March 31, 2025 | 49,456 | |
April 1, 2025 - March 31, 2026 | 16,970 | |
April 1, 2026 - March 31, 2027 | 13,920 | |
Thereafter | 680 | |
Time Deposits | $ 890,830 | $ 935,649 |
Borrowings - Securities sold un
Borrowings - Securities sold under agreements to repurchase (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Borrowings | ||
Securities sold under agreements to repurchase | $ 255,668 | $ 270,139 |
Securities sold under agreements to repurchase, weighted average rate | 0.15% | 0.08% |
Borrowings - Term Loan (Details
Borrowings - Term Loan (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Apr. 30, 2022 | Dec. 31, 2021 | May 28, 2021 | |
Borrowings | ||||
Long-term debt | $ 42,881,000 | $ 46,056,000 | ||
Term Loan | ||||
Borrowings | ||||
Issuance of debt | $ 60,000,000 | |||
Long-term debt | 39,000,000 | $ 42,000,000 | ||
Revolving line of credit | ||||
Borrowings | ||||
Issuance of debt | $ 40,000,000 | |||
Quarterly payments on the term loan reduce the outstanding principal balance, amount | 3,000,000 | |||
Second Amended and Restated Credit Agreement | Term Loan | ||||
Borrowings | ||||
Long-term debt | 51,000,000 | |||
Long-term debt, current | 12,000,000 | |||
Long term debt, noncurrent | 39,000,000 | |||
Second Amended and Restated Credit Agreement | Revolving line of credit | ||||
Borrowings | ||||
Balance outstanding | $ 0 | |||
Second Amended and Restated Credit Agreement | One-month LIBOR rate | Term Loan | ||||
Borrowings | ||||
Interest rate (as a percent) | 1.75% | |||
Third Amendment To Extend Credit Facility [Member] | SOFR-indexed interest rate | Term Loan | Subsequent event | ||||
Borrowings | ||||
Interest rate (as a percent) | 1.80% |
Borrowings - Short-term borrowi
Borrowings - Short-term borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Short-term borrowings | ||
Short-term borrowings | $ 17,683 | $ 17,678 |
Federal funds purchased | 0 | 0 |
FHLB advances | ||
Short-term borrowings | ||
Short-term borrowings | 5,683 | 5,678 |
Term Loan, current portion due within 12 months | ||
Short-term borrowings | ||
Short-term borrowings | $ 12,000 | $ 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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | |
Long-term debt | ||||
Long-term debt | $ 42,881 | $ 46,056 | ||
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 | $ 3,881 | $ 4,056 | ||
Term Loan | ||||
Long-term debt | ||||
Long-term debt | $ 39,000 | $ 42,000 |
Borrowings - Senior notes and S
Borrowings - Senior notes and Subordinate Notes (Details) - USD ($) $ in Thousands | Jun. 01, 2020 | May 25, 2017 | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term debt | ||||
Unamortized debt issuance cost | $ 1,842 | $ 2,283 | ||
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 | 22 | 56 | ||
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 | 254 | 549 | ||
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 | $ 1,566 | $ 1,678 | ||
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) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount | ||
Actual, Amount | $ 1,011,861 | $ 995,874 |
Minimum Capital Requirement, Amount | 382,962 | 378,334 |
Minimum To Be Well Capitalized, Amount | $ 553,167 | $ 546,482 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual, Ratio (as a percent) | 11.89% | 11.85% |
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 Risk Weighted Assets, Amount | ||
Actual, Amount | $ 1,085,861 | $ 1,069,874 |
Minimum Capital Requirement, Amount | 510,615 | 504,445 |
Minimum To Be Well Capitalized, Amount | $ 680,821 | $ 672,594 |
Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual, Ratio (as a percent) | 12.76 | 12.73 |
Minimum Capital Requirement, Ratio (as a percent) | 6 | 6 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 8 | 8 |
Total Capital to Risk Weighted Assets, Amount | ||
Actual, Amount | $ 1,344,541 | $ 1,320,187 |
Minimum Capital Requirement, Amount | 680,821 | 672,594 |
Minimum To Be Well Capitalized, Amount | $ 851,026 | $ 840,742 |
Total Capital to Risk Weighted Assets, Ratio | ||
Actual, Ratio (as a percent) | 15.80 | 15.70 |
Minimum Capital Requirement, Ratio (as a percent) | 8 | 8 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 10 | 10 |
Leverage Ratio of Tier 1 Capital to Average Assets, Amount | ||
Actual, Amount | $ 1,085,861 | $ 1,069,874 |
Minimum Capital Requirement, Amount | $ 494,948 | $ 502,336 |
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio | ||
Actual, Ratio (as a percent) | 8.78 | 8.52 |
Minimum Capital Requirement, Ratio (as a percent) | 4 | 4 |
Busey Bank | ||
Common Equity Tier 1 Capital to Risk Weighted Assets, Amount | ||
Actual, Amount | $ 1,247,370 | $ 1,241,303 |
Minimum Capital Requirement, Amount | 381,747 | 377,096 |
Minimum To Be Well Capitalized, Amount | $ 551,413 | $ 544,695 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual, Ratio (as a percent) | 14.70% | 14.81% |
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 Risk Weighted Assets, Amount | ||
Actual, Amount | $ 1,247,370 | $ 1,241,303 |
Minimum Capital Requirement, Amount | 508,996 | 502,795 |
Minimum To Be Well Capitalized, Amount | $ 678,662 | $ 670,394 |
Tier 1 Capital to Risk Weighted Assets, Ratio | ||
Actual, Ratio (as a percent) | 14.70 | 14.81 |
Minimum Capital Requirement, Ratio (as a percent) | 6 | 6 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 8 | 8 |
Total Capital to Risk Weighted Assets, Amount | ||
Actual, Amount | $ 1,321,050 | $ 1,306,616 |
Minimum Capital Requirement, Amount | 678,662 | 670,394 |
Minimum To Be Well Capitalized, Amount | $ 848,327 | $ 837,992 |
Total Capital to Risk Weighted Assets, Ratio | ||
Actual, Ratio (as a percent) | 15.57 | 15.59 |
Minimum Capital Requirement, Ratio (as a percent) | 8 | 8 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 10 | 10 |
Leverage Ratio of Tier 1 Capital to Average Assets, Amount | ||
Actual, Amount | $ 1,247,370 | $ 1,241,303 |
Minimum Capital Requirement, Amount | 493,615 | 501,104 |
Minimum To Be Well Capitalized, Amount | $ 617,019 | $ 626,379 |
Leverage Ratio of Tier 1 Capital to Average Assets, Ratio | ||
Actual, Ratio (as a percent) | 10.11 | 9.91 |
Minimum Capital Requirement, Ratio (as a percent) | 4 | 4 |
Minimum To Be Well Capitalized, Ratio (as a percent) | 5 | 5 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
RSU awards | |
Share-based Compensation | |
Number of shares of common stock per award | 1 |
DSU awards | |
Share-based Compensation | |
Number of shares of common stock per award | 1 |
Vesting period | 1 year |
Settlement period | 30 days |
PSU awards | |
Share-based Compensation | |
Number of shares of common stock per award | 1 |
Minimum | RSU awards | |
Share-based Compensation | |
Requisite service periods | 1 year |
Maximum | RSU awards | |
Share-based Compensation | |
Requisite service periods | 5 years |
Stock-based Compensation - Awar
Stock-based Compensation - Award Status (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Outstanding at beginning of year (in shares) | 31,386 | |
Expired (in shares) | (220) | |
Outstanding at end of year (in shares) | 31,166 | 31,386 |
Exercisable at end of year (in shares) | 31,166 | |
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 | 4 years 10 months 17 days | |
Weighted-Average Remaining Contractual Life, Exercisable | 4 years 7 months 17 days | |
Weighted-Average Remaining Contractual Life, Outstanding at end of year | 4 years 7 months 17 days |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted , Performance and Deferred Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 23, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Additional disclosures | ||||
Compensation expense recognized | $ 1,909 | $ 1,448 | ||
Period over which cost will be recognized | 2 years 10 months 24 days | 2 years 10 months 24 days | ||
RSU awards | ||||
Shares | ||||
Non-vested at beginning of period (in shares) | 1,147,927 | |||
Granted (in shares) | 156,483 | |||
Dividend equivalents earned (in shares) | 9,671 | |||
Vested (in shares) | (13,594) | |||
Forfeited (in shares) | (10,298) | |||
Non-vested at end of period (in shares) | 1,290,189 | 1,147,927 | ||
Weighted-Average Grant Date Fair Value | ||||
Non-vested at beginning of period (in dollars per share) | $ 23.97 | |||
Granted (in dollars per share) | 25.79 | |||
Dividend equivalents earned (in dollars per share) | 27.30 | |||
Vested (in dollars per share) | 29.73 | |||
Forfeited (in dollars per share) | 24.05 | |||
Non-vested at end of period (in dollars per share) | $ 24.16 | $ 23.97 | ||
Additional disclosures | ||||
Compensation expense recognized | $ 1,176 | 1,230 | ||
PSU awards | ||||
Shares | ||||
Non-vested at beginning of period (in shares) | 113,915 | |||
Granted (in shares) | 38,774 | 195,240 | ||
Forfeited (in shares) | (585) | |||
Non-vested at end of period (in shares) | 308,570 | 113,915 | ||
Weighted-Average Grant Date Fair Value | ||||
Non-vested at beginning of period (in dollars per share) | $ 22.86 | |||
Granted (in dollars per share) | 25.79 | |||
Forfeited (in dollars per share) | 23.48 | |||
Non-vested at end of period (in dollars per share) | $ 24.71 | $ 22.86 | ||
Additional disclosures | ||||
Grant date fair value of the award | $ 1,000 | |||
Compensation expense recognized | $ 412 | 60 | ||
PSU awards | Minimum | ||||
Additional disclosures | ||||
Vesting percentage (as a percent) | 0.00% | |||
PSU awards | Maximum | ||||
Shares | ||||
Granted (in shares) | 77,548 | |||
Additional disclosures | ||||
Vesting percentage (as a percent) | 200.00% | |||
DSU awards | ||||
Shares | ||||
Non-vested at beginning of period (in shares) | 34,135 | |||
Granted (in shares) | 32,658 | |||
Dividend equivalents earned (in shares) | 1,107 | |||
Vested (in shares) | (32,801) | |||
Non-vested at end of period (in shares) | 35,099 | 34,135 | ||
Vested and Outstanding at end of period (in shares) | 130,098 | |||
Weighted-Average Grant Date Fair Value | ||||
Non-vested at beginning of period (in dollars per share) | $ 24.59 | |||
Granted (in dollars per share) | 25.79 | |||
Dividend equivalents earned (in dollars per share) | 27.30 | |||
Vested (in dollars per share) | 24.63 | |||
Non-vested at end of period (in dollars per share) | 25.75 | $ 24.59 | ||
Vested and Outstanding at end of period (in dollars per share) | $ 22.68 | |||
Additional disclosures | ||||
Compensation expense recognized | $ 226 | $ 158 | ||
Market Based Performance Stock Units | ||||
Shares | ||||
Granted (in shares) | 78,233 | |||
Additional disclosures | ||||
Grant date fair value of the award | $ 2,000 | |||
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) | 125,173 | |||
Additional disclosures | ||||
Vesting percentage (as a percent) | 160.00% | |||
Performance Based Performance Stock Units | ||||
Shares | ||||
Granted (in shares) | 78,233 | |||
Additional disclosures | ||||
Grant date fair value of the award | $ 2,000 | |||
Performance Based Performance Stock Units | Minimum | ||||
Additional disclosures | ||||
Vesting percentage (as a percent) | 0.00% | |||
Performance Based Performance Stock Units | Maximum | ||||
Shares | ||||
Granted (in shares) | 125,173 | |||
Additional disclosures | ||||
Vesting percentage (as a percent) | 160.00% | |||
2020 Equity Incentive Plan | RSU awards | Members of management, including the Vice-Chairman of the Board | ||||
Shares | ||||
Granted (in shares) | 156,483 | |||
Additional disclosures | ||||
Grant date fair value of the award | $ 4,000 | |||
Accelerated vesting provision, minimum requisite service period | 1 year | |||
Vesting percentage (as a percent) | 100.00% | |||
2020 Equity Incentive Plan | RSU awards | 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 | RSU awards | 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 | DSU awards | Directors and Advisory Directors | ||||
Shares | ||||
Granted (in shares) | 32,658 | |||
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% |
Stock-based Compensation - 2021
Stock-based Compensation - 2021 Employee Stock Purchase Plan (Details) - 2021 ESPP - shares | Jul. 01, 2021 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount through voluntary payroll deductions (as percentage) | 15.00% | |
Shares Remaining Available for Issuance Pursuant to the Plans | 600,000 | 544,470 |
Stock-based Compensation - Reco
Stock-based Compensation - Recognized and Unamortized Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation | |||
Total stock-based compensation expense | $ 1,909 | $ 1,448 | |
Total unamortized stock-based compensation expense | $ 19,207 | $ 11,960 | |
Weighted average period over which expense is to be recognized | 2 years 10 months 24 days | 2 years 10 months 24 days | |
RSU awards | |||
Share-based Compensation | |||
Total stock-based compensation expense | $ 1,176 | 1,230 | |
Total unamortized stock-based compensation expense | 12,838 | $ 10,204 | |
PSU awards | |||
Share-based Compensation | |||
Total stock-based compensation expense | 412 | 60 | |
Total unamortized stock-based compensation expense | 5,544 | 1,547 | |
DSU awards | |||
Share-based Compensation | |||
Total stock-based compensation expense | 226 | $ 158 | |
Total unamortized stock-based compensation expense | 825 | $ 209 | |
2021 ESPP | |||
Share-based Compensation | |||
Total stock-based compensation expense | $ 95 |
Stock-based Compensation - Shar
Stock-based Compensation - Shares Remaining Available for Issuance (Details) - shares | Mar. 31, 2022 | Jul. 01, 2021 |
2020 Equity Plan | ||
Share-based Compensation | ||
Shares Remaining Available for Issuance Pursuant to the Plans | 643,569 | |
2021 ESPP | ||
Share-based Compensation | ||
Shares Remaining Available for Issuance Pursuant to the Plans | 544,470 | 600,000 |
Outstanding Commitments and C_3
Outstanding Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Credit Commitments and Contingencies | ||
Total commitments | $ 1,999,155 | $ 2,016,207 |
Commitments to extend credit | ||
Credit Commitments and Contingencies | ||
Total commitments | 1,969,861 | 1,983,655 |
Standby letters of credit | ||
Credit Commitments and Contingencies | ||
Total commitments | $ 29,294 | $ 32,552 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Interest Rate Swaps Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Notional amount | $ 4,000 | $ 4,000 | |
Balances carried in AOCI [Abstract] | |||
Interest Expense | 6,035 | $ 7,438 | |
Interest rate swap | |||
Derivative [Line Items] | |||
Notional amount | 300,000 | ||
Cash Flow Hedging | Interest rate swap | |||
Derivative [Line Items] | |||
Notional amount | 350,000 | 50,000 | |
Gross aggregate fair value of the swaps | |||
Gross aggregate fair value of swap assets | 835 | ||
Gross aggregate fair value of swap liabilities | 8,772 | 958 | |
Balances carried in AOCI [Abstract] | |||
Unrealized gains (losses) on cash flow hedges, net of tax | (5,887) | (685) | |
Unrealized loss to be reclassified from OCI to interest expense during next twelve months | (400) | ||
Interest income (expense) on swap transactions | 500 | $ (278) | |
Cash Flow Hedging | Interest rate swap | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Balances carried in AOCI [Abstract] | |||
Interest Expense | 100 | ||
Cash Flow Hedging | Debt Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 50,000 | $ 50,000 | |
Weighted average fixed interest rates | 1.79% | 1.79% | |
Weighted average variable interest rates | 0.83% | 0.20% | |
Weighted average maturity in years | 2 years 5 months 15 days | 2 years 8 months 15 days | |
Cash Flow Hedging | Loan Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 300,000 | ||
Weighted average fixed interest rates | 4.81% | ||
Weighted average variable interest rates | 3.40% | ||
Weighted average maturity in years | 6 years 10 months 6 days |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Cash pledged to secure obligations | $ 10,900 | |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Gain (loss) recognized in OCI, net of tax | (4,845) | $ 410 |
(Gain) loss reclassified from OCI to interest expense, net of tax | (357) | 199 |
Net change in unrealized gains (losses) on cash flow hedges | $ (5,202) | $ 609 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Forward Sales Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative Financial Instruments | |||
Notional amount | $ 4,000 | $ 4,000 | |
Interest rate lock commitments | Other assets | |||
Derivative Financial Instruments | |||
Notional amount | 3,724 | 19,384 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 38 | 206 | |
Interest rate lock commitments | Other liabilities | |||
Derivative Financial Instruments | |||
Notional amount | 2,866 | 499 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other liabilities | 23 | 6 | |
Foreign currency forward contracts | Other assets | |||
Derivative Financial Instruments | |||
Notional amount | 8,947 | 1,884 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 148 | 10 | |
Foreign currency forward contracts | Other liabilities | |||
Derivative Financial Instruments | |||
Notional amount | 4,429 | 41,002 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other liabilities | 42 | 439 | |
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) | 121 | $ (348) | |
Interest rate lock commitments and forward sales commitments | Other assets | Designated as hedging instrument | |||
Derivative Financial Instruments | |||
Notional amount | 12,671 | 21,268 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 186 | 216 | |
Interest rate lock commitments and forward sales commitments | Other liabilities | Designated as hedging instrument | |||
Derivative Financial Instruments | |||
Notional amount | 7,295 | 41,501 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 65 | ||
Fair value recorded in other liabilities | $ 445 | ||
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 | 15 | 472 | |
Mortgage revenue. | Foreign currency forward contracts | Designated as hedging instrument | |||
Gross gains and losses on derivative assets and liabilities recorded in Consolidated Statements of Income | |||
Gross gains | $ 106 | ||
Gross (losses) | $ (820) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Risk Participation Agreement (Details) $ in Millions | Mar. 31, 2022USD ($)agreement | Dec. 31, 2021USD ($) |
Derivative Financial Instruments | ||
Number of risk participant agreement | agreement | 1 | |
Notional amount | $ | $ 4 | $ 4 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Interest Rate Swaps Not Designated as Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
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 | $ 26,500 | $ 27,300 | |
Interest rate swap | Not designated as hedging | |||
Derivative Financial Instruments | |||
Variable rate, commercial loans that are supported by the interest rate swap contracts | 492,600 | 491,400 | |
Notional Amount, Derivative Asset | 492,590 | 491,356 | |
Notional Amount, Derivative Liability | 492,590 | 491,356 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 16,547 | 20,098 | |
Fair value recorded in other liabilities | 16,547 | 20,098 | |
Interest rate swaps - pay floating, receive fixed | Not designated as hedging | |||
Derivative Financial Instruments | |||
Notional Amount, Derivative Asset | 119,622 | 404,572 | |
Notional Amount, Derivative Liability | 372,968 | 86,784 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 3,467 | 17,839 | |
Fair value recorded in other liabilities | 13,080 | 2,259 | |
Interest rate swaps - pay fixed, receive floating | Not designated as hedging | |||
Derivative Financial Instruments | |||
Notional Amount, Derivative Asset | 372,968 | 86,784 | |
Notional Amount, Derivative Liability | 119,622 | 404,572 | |
Fair values of derivative assets and liabilities recorded in consolidated balance sheets | |||
Fair value recorded in other assets | 13,080 | 2,259 | |
Fair value recorded in other liabilities | 3,467 | $ 17,839 | |
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 | (3,550) | $ (10,595) | |
Gain (loss) pay fixed receive floating | $ 3,550 | $ 10,595 |
Fair Value Measurements - Gener
Fair Value Measurements - General Disclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | $ 2,946,055 | $ 3,981,251 |
Equity securities | 19,520 | 13,571 |
Loans held for sale (2022 at LOCOM, 2021 at fair value) | 6,765 | 23,875 |
U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 157,508 | 165,762 |
Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 34,301 | 38,470 |
Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 299,592 | 306,869 |
Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 488,604 | 492,186 |
Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 107,502 | 614,998 |
Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 1,575,376 | 2,069,313 |
Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 283,172 | 293,653 |
Recurring basis | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 19,520 | |
Loans held for sale (2022 at LOCOM, 2021 at fair value) | 23,875 | |
Recurring basis | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative asset | 17,573 | 20,314 |
Recurring basis | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liability | 25,384 | 21,501 |
Recurring basis | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 157,508 | 165,762 |
Recurring basis | Obligations of U.S. government corporations and agencies | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 34,301 | 38,470 |
Recurring basis | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 299,592 | 306,869 |
Recurring basis | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 488,604 | 492,186 |
Recurring basis | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 107,502 | 614,998 |
Recurring basis | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 1,575,376 | 2,069,313 |
Recurring basis | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 283,172 | 293,653 |
Recurring basis | Securities Equity Investments [Member] | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 13,571 | |
Recurring basis | Level 1 | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 5,948 | |
Recurring basis | Level 2 | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | 13,572 | |
Loans held for sale (2022 at LOCOM, 2021 at fair value) | 23,875 | |
Recurring basis | Level 2 | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative asset | 17,568 | 20,314 |
Recurring basis | Level 2 | Derivative liabilities | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative liability | 25,384 | 21,501 |
Recurring basis | Level 2 | U.S. Treasury securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 157,508 | 165,762 |
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 | 34,301 | 38,470 |
Recurring basis | Level 2 | Obligations of states and political subdivisions | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 299,592 | 306,869 |
Recurring basis | Level 2 | Asset-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 488,604 | 492,186 |
Recurring basis | Level 2 | Commercial mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 107,502 | 614,998 |
Recurring basis | Level 2 | Residential mortgage-backed securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 1,575,376 | 2,069,313 |
Recurring basis | Level 2 | Corporate debt securities | ||
Financial assets and financial liabilities measured at fair value | ||
Debt securities available for sale | 283,172 | 293,653 |
Recurring basis | Level 2 | Securities Equity Investments [Member] | ||
Financial assets and financial liabilities measured at fair value | ||
Equity securities | $ 13,571 | |
Recurring basis | Level 3 | Derivative assets | ||
Financial assets and financial liabilities measured at fair value | ||
Derivative asset | $ 5 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Quantitative Information (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | $ 11,769 | $ 15,380 |
Non-recurring basis | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | 2,946 | 2,926 |
OREO | 2,228 | 51 |
Bank property held for sale | 9,551 | 10,103 |
Non-recurring basis | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | 2,946 | 2,926 |
OREO | 2,228 | 51 |
Bank property held for sale | 9,551 | 10,103 |
Non-recurring basis | Level 3 | Appraisal of collateral | Loans evaluated individually | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans evaluated individually | 2,946 | 2,926 |
Non-recurring basis | Level 3 | Appraisal of collateral | OREO | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO | 2,228 | 51 |
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 | $ 9,551 | $ 10,103 |
Comparability adjustment | 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) | (50) | (50) |
Comparability adjustment | 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) |
Comparability adjustment | 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) | (53.4) | (55.1) |
Comparability adjustment | Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO (percent) | (16) | (33) |
Comparability adjustment | Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO (percent) | (100) | (100) |
Comparability adjustment | Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
OREO (percent) | (24.4) | (67.9) |
Comparability adjustment | 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) | (0.7) | (0.7) |
Comparability adjustment | 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) | (70.1) | (70.1) |
Comparability adjustment | 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) | (38.2) | (41.3) |
Fair Value Measurements - Segre
Fair Value Measurements - Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Fair Value | $ 942,846 | |
Debt securities held to maturity | 942,846 | |
Portfolio loans, net | 7,184,660 | $ 7,101,111 |
Financial liabilities: | ||
Short-term borrowings | 17,683 | 17,678 |
Junior subordinated debt owed to unconsolidated trusts | 71,678 | 71,635 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 479,228 | 836,095 |
Level 1 | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 479,228 | 836,095 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Fair Value | 976,081 | |
Debt securities held to maturity | 976,081 | |
Loans held for sale | 6,765 | |
Accrued interest receivable | 31,947 | 31,064 |
Financial liabilities: | ||
Time deposits | 890,830 | 935,649 |
Securities sold under agreements to repurchase | 255,668 | 270,139 |
Short-term borrowings | 17,683 | 17,678 |
Long-term debt | 42,881 | 46,056 |
Junior subordinated debt owed to unconsolidated trusts | 71,678 | 71,635 |
Accrued interest payable | 5,116 | 2,728 |
Level 2 | Fair Value | ||
Financial assets: | ||
Fair Value | 942,846 | |
Debt securities held to maturity | 942,846 | |
Loans held for sale | 6,769 | |
Accrued interest receivable | 31,947 | 31,064 |
Financial liabilities: | ||
Time deposits | 882,358 | 935,778 |
Securities sold under agreements to repurchase | 255,668 | 270,139 |
Short-term borrowings | 17,745 | 17,673 |
Long-term debt | 43,007 | 46,164 |
Junior subordinated debt owed to unconsolidated trusts | 62,840 | 63,586 |
Accrued interest payable | 5,116 | 2,728 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Portfolio loans, net | 7,184,660 | 7,101,111 |
Mortgage servicing rights | 8,085 | 8,608 |
Other servicing rights | 1,712 | 1,830 |
Level 3 | Fair Value | ||
Financial assets: | ||
Portfolio loans, net | 7,195,985 | 7,161,466 |
Mortgage servicing rights | 15,499 | 12,133 |
Other servicing rights | 2,093 | 2,268 |
Level 3 | Senior notes | Carrying Amount | ||
Financial liabilities: | ||
Long-term debt | 39,978 | 39,944 |
Level 3 | Senior notes | Fair Value | ||
Financial liabilities: | ||
Long-term debt | 40,000 | 40,400 |
Level 3 | Subordinated debt | Carrying Amount | ||
Financial liabilities: | ||
Long-term debt | 182,910 | 182,773 |
Level 3 | Subordinated debt | Fair Value | ||
Financial liabilities: | ||
Long-term debt | $ 188,437 | $ 195,600 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income per share calculations for basic and diluted methods | ||
Net income | $ 28,439 | $ 37,816 |
Shares: | ||
Weighted average common shares outstanding | 55,427,696 | 54,471,860 |
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method (in shares) | 755,748 | 563,946 |
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation | 56,194,946 | 55,035,806 |
Basic earnings per common share (in dollars per share) | $ 0.51 | $ 0.69 |
Diluted earnings per common share (in dollars per share) | $ 0.51 | $ 0.69 |
Total anti-dilutive common stock equivalents | 241,452 | 358,279 |
RSU and DSU awards | ||
Shares: | ||
Total anti-dilutive common stock equivalents | 243,396 | |
PSU awards | ||
Shares: | ||
Total anti-dilutive common stock equivalents | 241,452 | 114,883 |
Employee Stock Purchase Plan Shares | ||
Shares: | ||
Dilutive effect of outstanding options, warrants, and restricted stock units as determined by the application of the treasury stock method (in shares) | 11,502 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in accumulated other comprehensive income (loss) by component, net of tax | ||
Beginning balance | $ 1,319,112 | $ 1,270,069 |
Unrealized gains (losses) on debt securities available for sale: | ||
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect | (29,726) | (11,993) |
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax | (74,556) | (30,079) |
Unrealized losses on debt securities transferred from held to maturity to available for sale, Tax Effect | 13,812 | |
Unrealized losses on debt securities transferred from held to maturity to available for sale, Net of Tax | (34,644) | |
Amounts reclassified from AOCI, Tax Effect | 30 | 7 |
Amounts reclassified from AOCI, Net of Tax | (76) | (18) |
Amortization of unrealized losses on securities transferred to held to maturity, Tax Effect | 252 | |
Amortization of unrealized losses on securities transferred to held to maturity, Net of Tax | (631) | |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized holding gains (losses) on cash flow hedges, Tax Effect | (1,931) | |
Unrealized holding gains (losses) on cash flow hedges, Net of Tax | (4,845) | 410 |
Amounts reclassified from AOCI, Tax Effect | (143) | |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $143 and ($79), respectively | (357) | 199 |
Ending balance | 1,218,025 | 1,265,822 |
AOCI | ||
Changes in accumulated other comprehensive income (loss) by component, net of tax | ||
Beginning balance | (23,758) | 33,309 |
Unrealized gains (losses) on cash flow hedges: | ||
Accumulated other comprehensive income (loss) ending balance period, Before Tax | (192,467) | 5,344 |
Accumulated other comprehensive income (loss) ending balance period, Tax Effect | 54,862 | (1,523) |
Ending balance | (137,605) | 3,821 |
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 | (32,272) | 49,644 |
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect | 9,199 | (14,151) |
Beginning balance | (23,073) | 35,493 |
Unrealized gains (losses) on debt securities available for sale: | ||
Unrealized holding gains (losses) on debt securities available for sale, Before Tax | (104,282) | (42,072) |
Unrealized holding gains (losses) on debt securities available for sale, Tax Effect | 29,726 | 11,993 |
Unrealized holding gains (losses) on debt securities available for sale, Net of Tax | (74,556) | (30,079) |
Unrealized losses on debt securities transferred from held to maturity to available for sale, Before Tax | (48,456) | |
Unrealized losses on debt securities transferred from held to maturity to available for sale, Tax Effect | 13,812 | |
Unrealized losses on debt securities transferred from held to maturity to available for sale, Net of Tax | (34,644) | |
Amounts reclassified from AOCI, Before Tax | (106) | (25) |
Amounts reclassified from AOCI, Tax Effect | 30 | 7 |
Amounts reclassified from AOCI, Net of Tax | (76) | (18) |
Amortization of unrealized losses on securities transferred to held to maturity, Before Tax | 883 | |
Amortization of unrealized losses on securities transferred to held to maturity, Tax Effect | (252) | |
Amortization of unrealized losses on securities transferred to held to maturity, Net of Tax | 631 | |
Unrealized gains (losses) on cash flow hedges: | ||
Accumulated other comprehensive income (loss) ending balance period, Before Tax | (184,233) | 7,547 |
Accumulated other comprehensive income (loss) ending balance period, Tax Effect | 52,515 | (2,151) |
Ending balance | (131,718) | 5,396 |
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 | (958) | (3,055) |
Accumulated other comprehensive income (loss) beginning balance period, Tax Effect | 273 | 871 |
Beginning balance | (685) | (2,184) |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized holding gains (losses) on cash flow hedges, Before Tax | (6,776) | 574 |
Unrealized holding gains (losses) on cash flow hedges, Tax Effect | 1,931 | (164) |
Unrealized holding gains (losses) on cash flow hedges, Net of Tax | (4,845) | 410 |
Amounts reclassified from AOCI, Before Tax | (500) | 278 |
Amounts reclassified from AOCI, Tax Effect | 143 | (79) |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $143 and ($79), respectively | (357) | 199 |
Accumulated other comprehensive income (loss) ending balance period, Before Tax | (8,234) | (2,203) |
Accumulated other comprehensive income (loss) ending balance period, Tax Effect | 2,347 | 628 |
Ending balance | $ (5,887) | $ (1,575) |
Operating Segments and Relate_3
Operating Segments and Related Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Operating Segments and Related Information | |||
Number of reportable segments | segment | 3 | ||
Number of operating segments | segment | 3 | ||
Goodwill | $ 317,873 | $ 317,873 | |
Total Assets | 12,567,509 | 12,859,689 | |
Net interest income | 70,056 | $ 64,893 | |
Noninterest income | 35,772 | 31,445 | |
Noninterest expense | 70,376 | 54,499 | |
Income before income taxes | 35,705 | 48,635 | |
Net income | 28,439 | 37,816 | |
Operating segments | Banking | |||
Operating Segments and Related Information | |||
Goodwill | 294,773 | 294,773 | |
Total Assets | 12,450,999 | 12,746,833 | |
Net interest income | 73,832 | 68,455 | |
Noninterest income | 15,286 | 12,884 | |
Noninterest expense | 55,567 | 42,091 | |
Income before income taxes | 33,804 | 46,044 | |
Net income | 26,451 | 35,528 | |
Operating segments | FirsTech | |||
Operating Segments and Related Information | |||
Goodwill | 8,992 | 8,992 | |
Total Assets | 46,900 | 47,481 | |
Net interest income | 18 | 20 | |
Noninterest income | 5,419 | 4,861 | |
Noninterest expense | 4,683 | 4,290 | |
Income before income taxes | 754 | 591 | |
Net income | 550 | 429 | |
Operating segments | Wealth Management | |||
Operating Segments and Related Information | |||
Goodwill | 14,108 | 14,108 | |
Total Assets | 71,364 | 65,587 | |
Noninterest income | 15,776 | 12,587 | |
Noninterest expense | 8,265 | 6,565 | |
Income before income taxes | 7,511 | 6,022 | |
Net income | 5,840 | 4,682 | |
Other | |||
Operating Segments and Related Information | |||
Total Assets | (1,754) | $ (212) | |
Net interest income | (3,794) | (3,582) | |
Noninterest income | (709) | 1,113 | |
Noninterest expense | 1,861 | 1,553 | |
Income before income taxes | (6,364) | (4,022) | |
Net income | $ (4,402) | $ (2,823) |
Leases - Lease-related balances
Leases - Lease-related balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Right of use assets | $ 9,014 | $ 10,533 |
Lease liabilities | $ 9,067 | $ 10,591 |
Weighted average lease term (in years) | 6 years 3 months 7 days | 6 years 5 months 19 days |
Weighted average discount rate (in percent) | 2.04% | 2.16% |
Leases - Lease Cost and Other L
Leases - Lease Cost and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease Costs | ||
Operating lease costs | $ 617 | $ 564 |
Variable lease costs | 128 | 174 |
Short-term lease costs | 4 | 18 |
Total lease cost | 749 | 756 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating lease cash flows - Fixed payments | 631 | 546 |
Operating lease cash flows - Liability reduction | 585 | 495 |
Right of use assets obtained during the period in exchange for operating lease liabilities | $ 55 | $ 148 |
Leases - Undiscounted Lease Pay
Leases - Undiscounted Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Projected minimum rental payments under the terms of leases | ||
Remainder of 2022 | $ 1,684 | |
2023 | 1,889 | |
2024 | 1,429 | |
2025 | 1,194 | |
2026 | 945 | |
Thereafter | 2,509 | |
Total undiscounted cash flows | 9,650 | |
Less: Amounts representing interest | 583 | |
Present value of net future minimum lease payments | $ 9,067 | $ 10,591 |
Leases - Busey as the Lessor (D
Leases - Busey as the Lessor (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases | ||
Lease income | $ 230 | $ 44 |