Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-09439 | |
Entity Registrant Name | INTERNATIONAL BANCSHARES CORPORATION | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-2157138 | |
Entity Address, Address Line One | 1200 San Bernardo Avenue | |
Entity Address, City or Town | Laredo | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78042-1359 | |
City Area Code | 956 | |
Local Phone Number | 722-7611 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | IBOC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,048,914 | |
Entity Central Index Key | 0000315709 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 1,025,473,000 | $ 2,087,724,000 |
Investment securities: | ||
Held to maturity debt securities (Market value of $3,400 on June 30, 2023 and $3,400 on December 31, 2022) | 3,400,000 | 3,400,000 |
Available for sale debt securities (Amortized cost of $5,285,989 on June 30, 2023 and $5,018,996 on December 31, 2022) | 4,669,847,000 | 4,417,796,000 |
Equity securities with readily determinable fair values | 5,300,000 | 5,358,000 |
Total investment securities | 4,678,547,000 | 4,426,554,000 |
Loans | 7,573,077,000 | 7,430,603,000 |
Less allowance for credit losses | (140,503,000) | (125,972,000) |
Net loans | 7,432,574,000 | 7,304,631,000 |
Bank premises and equipment, net | 430,596,000 | 431,612,000 |
Accrued interest receivable | 53,371,000 | 45,787,000 |
Other investments | 363,478,000 | 358,910,000 |
Cash surrender value of life insurance policies | 300,789,000 | 300,589,000 |
Goodwill | 282,532,000 | 282,532,000 |
Other assets | 287,476,000 | 263,137,000 |
Total assets | 14,854,836,000 | 15,501,476,000 |
Deposits: | ||
Demand-non-interest bearing | 5,261,184,000 | 5,846,055,000 |
Savings and interest bearing demand | 4,382,171,000 | 4,745,768,000 |
Time | 2,291,951,000 | 2,068,184,000 |
Total deposits | 11,935,306,000 | 12,660,007,000 |
Securities sold under repurchase agreements | 441,834,000 | 431,191,000 |
Other borrowed funds | 10,845,000 | 10,944,000 |
Junior subordinated deferrable interest debentures | 108,868,000 | 134,642,000 |
Other liabilities | 165,992,000 | 219,933,000 |
Total liabilities | 12,662,845,000 | 13,456,717,000 |
Shareholders' equity: | ||
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 96,431,643 shares on June 30, 2023 and 96,420,456 shares on December 31, 2022 | 96,432,000 | 96,420,000 |
Surplus | 154,522,000 | 154,061,000 |
Retained earnings | 2,858,544,000 | 2,695,567,000 |
Accumulated other comprehensive loss | (482,312,000) | (470,497,000) |
Total shareholders' equity before treasury stock | 2,627,186,000 | 2,475,551,000 |
Less cost of shares in treasury, 34,386,679 shares on June 30, 2023 and 34,278,617 on December 31, 2022 | (435,195,000) | (430,792,000) |
Total shareholders' equity | 2,191,991,000 | 2,044,759,000 |
Total liabilities and shareholders' equity | $ 14,854,836,000 | $ 15,501,476,000 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Consolidated Statements of Condition | ||
Held to maturity, Market value (in dollars) | $ 3,400 | $ 3,400 |
Available for sale, Amortized cost (in dollars) | $ 5,285,989 | $ 5,018,996 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, Authorized shares | 275,000,000 | 275,000,000 |
Common shares, issued shares | 96,431,643 | 96,420,456 |
Treasury, shares | 34,386,679 | 34,278,617 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||||
Loans, including fees | $ 152,896 | $ 87,630 | $ 295,166 | $ 169,118 |
Investment securities: | ||||
Taxable | 32,175 | 16,938 | 61,984 | 30,128 |
Tax-exempt | 1,569 | 351 | 3,147 | 701 |
Other interest income | 11,484 | 4,665 | 25,976 | 6,069 |
Total interest income | 198,124 | 109,584 | 386,273 | 206,016 |
Interest expense: | ||||
Savings deposits | 14,778 | 1,296 | 26,472 | 2,397 |
Time deposits | 11,628 | 2,277 | 18,457 | 4,781 |
Securities sold under repurchase agreements | 3,295 | 241 | 5,437 | 425 |
Other borrowings | 71 | 1,907 | 142 | 3,795 |
Junior subordinated deferrable interest debentures | 1,897 | 962 | 4,125 | 1,671 |
Total interest expense | 31,669 | 6,683 | 54,633 | 13,069 |
Net interest income | 166,455 | 102,901 | 331,640 | 192,947 |
Credit loss expense | 8,816 | 3,735 | 17,403 | 5,216 |
Net interest income after provision for credit losses | 157,639 | 99,166 | 314,237 | 187,731 |
Non-interest income: | ||||
Other investments (loss) income, net | (2,900) | 1,219 | 55 | 4,101 |
Other income | 5,554 | 8,798 | 9,399 | 17,890 |
Total non-interest income | 37,702 | 43,242 | 78,064 | 86,754 |
Non-interest expense: | ||||
Employee compensation and benefits | 33,294 | 31,045 | 66,153 | 62,164 |
Occupancy | 6,004 | 6,189 | 12,330 | 12,461 |
Depreciation of bank premises and equipment | 5,408 | 5,455 | 10,874 | 10,930 |
Professional fees | 3,338 | 2,942 | 6,928 | 5,260 |
Deposit insurance assessments | 1,693 | 1,979 | 5,831 | 3,036 |
Net operations, other real estate owned | 105 | (47) | (1,640) | (455) |
Advertising | 1,289 | 1,455 | 2,553 | 2,895 |
Software and software maintenance | 4,928 | 4,372 | 9,897 | 8,549 |
Other | 11,475 | 15,366 | 22,637 | 28,034 |
Total non-interest expense | 67,534 | 68,756 | 135,563 | 132,874 |
Income before income taxes | 127,807 | 73,652 | 256,738 | 141,611 |
Provision for income taxes | 27,322 | 15,681 | 54,610 | 30,147 |
Net income | $ 100,485 | $ 57,971 | $ 202,128 | $ 111,464 |
Basic earnings per common share: | ||||
Weighted average number of shares outstanding (in shares) | 62,074,485 | 62,950,103 | 62,108,188 | 63,150,061 |
Net income per common share (in dollars per share) | $ 1.62 | $ 0.92 | $ 3.25 | $ 1.77 |
Fully diluted earnings per common share: | ||||
Weighted average number of shares outstanding (in shares) | 62,205,297 | 63,085,429 | 62,243,626 | 63,290,738 |
Net income per common share (in dollars per share) | $ 1.62 | $ 0.92 | $ 3.25 | $ 1.76 |
Services charges on deposit accounts | ||||
Non-interest income: | ||||
Service charges | $ 18,075 | $ 18,248 | $ 35,628 | $ 35,505 |
Other service charges, commissions and fees, Banking | ||||
Non-interest income: | ||||
Service charges | 14,392 | 12,935 | 28,447 | 25,451 |
Other service charges, commissions and fees, Non-banking | ||||
Non-interest income: | ||||
Service charges | $ 2,581 | $ 2,042 | $ 4,535 | $ 3,807 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income (Loss) | $ 100,485 | $ 57,971 | $ 202,128 | $ 111,464 |
Other comprehensive loss, net of tax: | ||||
Net change in unrealized holding losses on securities available for sale arising during period (net of tax effects of $(16,433), $(19,033), $(3,141) and $(65,061)) | (61,821) | (71,599) | (11,815) | (244,755) |
Other comprehensive loss, net of tax | (61,821) | (71,599) | (11,815) | (244,755) |
Comprehensive income (loss) | $ 38,664 | $ (13,628) | $ 190,313 | $ (133,291) |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Comprehensive Income | ||||
Net change in unrealized holding losses on securities available for sale arising during period, tax effects | $ (16,433) | $ (19,033) | $ (3,141) | $ (65,061) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Surplus | Retained Earnings | Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2021 | $ 96,351 | $ 152,144 | $ 2,470,710 | $ (31,980) | $ (378,744) | $ 2,308,481 |
Balance (in shares) at Dec. 31, 2021 | 96,351 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income (Loss) | 111,464 | 111,464 | ||||
Dividends: | ||||||
Cash | (38,026) | (38,026) | ||||
Purchase of treasury stock | (40,549) | (40,549) | ||||
Exercise of stock options | $ 17 | 370 | 387 | |||
Exercise of stock options (in shares) | 17 | |||||
Stock compensation expense recognized in earnings | 229 | 229 | ||||
Other comprehensive loss, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (244,755) | (244,755) | ||||
Balance at Jun. 30, 2022 | $ 96,368 | 152,743 | 2,544,148 | (276,735) | (419,293) | 2,097,231 |
Balance (in shares) at Jun. 30, 2022 | 96,368 | |||||
Balance at Mar. 31, 2022 | $ 96,357 | 152,405 | 2,486,177 | (205,136) | (382,124) | 2,147,679 |
Balance (in shares) at Mar. 31, 2022 | 96,357 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income (Loss) | 57,971 | 57,971 | ||||
Dividends: | ||||||
Purchase of treasury stock | (37,169) | (37,169) | ||||
Exercise of stock options | $ 11 | 230 | 241 | |||
Exercise of stock options (in shares) | 11 | |||||
Stock compensation expense recognized in earnings | 108 | 108 | ||||
Other comprehensive loss, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (71,599) | (71,599) | ||||
Balance at Jun. 30, 2022 | $ 96,368 | 152,743 | 2,544,148 | (276,735) | (419,293) | 2,097,231 |
Balance (in shares) at Jun. 30, 2022 | 96,368 | |||||
Balance at Dec. 31, 2022 | $ 96,420 | 154,061 | 2,695,567 | (470,497) | (430,792) | 2,044,759 |
Balance (in shares) at Dec. 31, 2022 | 96,420 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income (Loss) | 202,128 | 202,128 | ||||
Dividends: | ||||||
Cash | (39,151) | (39,151) | ||||
Purchase of treasury stock | (4,403) | (4,403) | ||||
Exercise of stock options | $ 12 | 282 | 294 | |||
Exercise of stock options (in shares) | 12 | |||||
Stock compensation expense recognized in earnings | 179 | 179 | ||||
Other comprehensive loss, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (11,815) | (11,815) | ||||
Balance at Jun. 30, 2023 | $ 96,432 | 154,522 | 2,858,544 | (482,312) | (435,195) | 2,191,991 |
Balance (in shares) at Jun. 30, 2023 | 96,432 | |||||
Balance at Mar. 31, 2023 | $ 96,424 | 154,244 | 2,758,059 | (420,491) | (431,828) | 2,156,408 |
Balance (in shares) at Mar. 31, 2023 | 96,424 | |||||
Increase (decrease) in shareholders' equity | ||||||
Net Income (Loss) | 100,485 | 100,485 | ||||
Dividends: | ||||||
Purchase of treasury stock | (3,367) | (3,367) | ||||
Exercise of stock options | $ 8 | 201 | 209 | |||
Exercise of stock options (in shares) | 8 | |||||
Stock compensation expense recognized in earnings | 77 | 77 | ||||
Other comprehensive loss, net of tax: | ||||||
Net change in unrealized gains and losses on available for sale securities, net of reclassification adjustments | (61,821) | (61,821) | ||||
Balance at Jun. 30, 2023 | $ 96,432 | $ 154,522 | $ 2,858,544 | $ (482,312) | $ (435,195) | $ 2,191,991 |
Balance (in shares) at Jun. 30, 2023 | 96,432 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Shareholders' Equity | ||||
Cash Dividends (in dollars per share) | $ 0.63 | $ 0.60 | ||
Purchase of treasury stock (in shares) | 83,062 | 930,763 | 108,062 | 1,013,828 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities: | ||
Net income | $ 202,128,000 | $ 111,464,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit loss | 17,403,000 | 5,216,000 |
Specific reserve, other real estate owned | 297,000 | 16,000 |
Depreciation of bank premises and equipment | 10,874,000 | 10,930,000 |
Gain on sale of bank premises and equipment | (124,000) | (3,080,000) |
Gain on sale of other real estate owned | (2,626,000) | (1,174,000) |
Accretion of investment securities discounts | (972,000) | (732,000) |
Amortization of investment securities premiums | 3,504,000 | 8,773,000 |
Unrealized loss on equity securities with readily determinable fair values | 58,000 | 498,000 |
Stock based compensation expense | 179,000 | 229,000 |
Losses (earnings) from affiliates and other investments | 2,696,000 | (4,079,000) |
Deferred tax benefit | (3,190,000) | (589,000) |
Increase in accrued interest receivable | (7,584,000) | (137,000) |
Decrease in other assets | (18,525,000) | (3,774,000) |
Increase in other liabilities | 23,821,000 | 43,821,000 |
Net cash provided by operating activities | 227,939,000 | 167,382,000 |
Investing activities: | ||
Proceeds from maturities of securities | 51,167,000 | 2,075,000 |
Proceeds from sales and calls of available for sale securities | 450,000 | 0 |
Purchases of available for sale securities | (688,709,000) | (818,988,000) |
Principal collected on mortgage backed securities | 296,920,000 | 415,801,000 |
Net (increase) decrease in loans | (145,855,000) | 177,727,000 |
Purchases of other investments | (21,627,000) | (68,253,000) |
Distributions from other investments | 7,048,000 | 3,133,000 |
Purchases of bank premises and equipment | (9,885,000) | (8,571,000) |
Proceeds from sales of bank premises and equipment | 151,000 | 10,144,000 |
Proceeds from sales of other real estate owned | 3,341,000 | 6,237,000 |
Net cash used in investing activities | (506,999,000) | (280,695,000) |
Financing activities: | ||
Net (decrease) increase in non-interest bearing demand deposits | (584,871,000) | 263,524,000 |
Net (decrease) increase in savings and interest bearing demand deposits | (363,597,000) | 70,287,000 |
Net increase (decrease) in time deposits | 223,767,000 | (8,436,000) |
Net increase in securities sold under repurchase agreements | 10,643,000 | 73,696,000 |
Net decrease in other borrowed funds | (99,000) | (96,000) |
Redemption of long-term debt | (25,774,000) | |
Purchase of treasury stock | (4,403,000) | (40,549,000) |
Proceeds from stock transactions | 294,000 | 387,000 |
Payments of cash dividends | (39,151,000) | (38,026,000) |
Net cash (used in) provided by financing activities | (783,191,000) | 320,787,000 |
(Decrease) increase in cash and cash equivalents | (1,062,251,000) | 207,474,000 |
Cash and cash equivalents at beginning of period | 2,087,724,000 | 3,209,242,000 |
Cash and cash equivalents at end of period | 1,025,473,000 | 3,416,716,000 |
Supplemental cash flow information: | ||
Interest paid | 45,883,000 | 12,701,000 |
Income taxes paid | 48,326,000 | 3,643,000 |
Non-cash investing and financing activities: | ||
Net transfers from loans to other real estate owned | $ 519,000 | 1,277,000 |
Net transfers from bank premises and equipment to other assets | $ 2,476,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Our consolidated financial statements include the accounts of International Bancshares Corporation, and our wholly-owned bank subsidiaries, International Bank of Commerce, Laredo (“IBC”), Commerce Bank, International Bank of Commerce, Zapata, International Bank of Commerce, Brownsville, International Bank of Commerce, Oklahoma (the “Subsidiary Banks”) and our wholly-owned non-bank subsidiaries, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, Emerald Galveston Holdings, LLC, IBC Capital Corporation, and Diamond Beach Holdings, LLC. Our consolidated financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in our latest Annual Report to Shareholders on Form ARS for the fiscal year ended December 31, 2022, furnished to the U.S. Securities and Exchange Commission (“SEC”) on April 17, 2023 (our “2022 Annual Report”). Our consolidated statement of condition at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“US GAAP”) for complete financial statements. We operate as one segment. The operating information used by our chief executive officer for purposes of assessing performance and making operating decisions is the consolidated statements presented in this report. We have We have evaluated all events or transactions that occurred through the date we issued these financial statements. During this period, we did not have any material recognizable or non-recognizable subsequent events, other than the declaration of a semi-annual dividend. On July 25, 2023, the Board of Directors approved the semi-annual declaration of a |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 2 — Fair Value Measurements ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 applies to all financial instruments that are being measured and reported on a fair value basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; it also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels: ● Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 Inputs - Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 Inputs - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2023 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2023 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 4,508,112 $ — $ 4,508,112 $ — States and political subdivisions 161,735 — 161,735 — Equity Securities 5,300 5,300 — — $ 4,675,147 $ 5,300 $ 4,669,847 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2022 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities U.S. Treasury securities $ 49,393 $ — $ 49,393 $ — Residential mortgage-backed securities 4,209,212 — 4,209,212 — States and political subdivisions 159,191 — 159,191 — Equity Securities 5,358 5,358 — — $ 4,423,154 $ 5,358 $ 4,417,796 $ — Available-for-sale debt securities are classified within Level 1 or 2 of the valuation hierarchy. Equity securities with readily determinable fair values are classified within Level 1. For debt investments classified as Level 2 in the fair value hierarchy, we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. 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 following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2023 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Period ended Identical Observable Unobservable Provision June 30, Assets Inputs Inputs During 2023 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 29,763 $ — $ — $ 29,763 $ 1,010 Other real estate owned 899 — — 899 297 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2022 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2022 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 30,743 $ — $ — $ 30,743 $ 2,346 Other real estate owned 5,653 — — 5,653 1,627 Our assets measured at fair value on a non-recurring basis are limited to loans classified as Watch List – Doubtful and other real estate owned. The fair value of Watch List-Doubtful loans is derived in accordance with FASB ASC 310, “Receivables”. They are primarily comprised of collateral-dependent commercial loans. As the primary sources of loan repayments decline, the secondary repayment source, the collateral, takes on greater significance. Correctly evaluating the fair value becomes even more important. Re-measurement of the loan to fair value is done through a specific valuation allowance included in the allowance for credit losses (“ACL”). The fair value of the loan is based on the fair value of the collateral, as determined through either an appraisal or internal evaluation process. The basis for our appraisal and appraisal review process is based on regulatory guidelines and strives to comply with all regulatory appraisal laws, regulations, and the Uniform Standards of Professional Appraisal Practice. All appraisals and internal evaluations are “as is” (the property’s highest and best use) valuations based on the current conditions of the property/project at that point in time. The determination of the fair value of the collateral is based on the net realizable value, which is the appraised value less any closing costs, when applicable. As of June 30, 2023, we had had an internal evaluation performed within the immediately preceding twelve months. As of December 31, 2022, we had approximately collateral dependent loans, of which $0 had an appraisal performed within the immediately preceding twelve months and of which $51,326,000 had an internal evaluation performed within the immediately preceding twelve months. Our determination to either seek an appraisal or to perform an internal evaluation begins in weekly credit quality meetings, where the committee analyzes the existing collateral values of the doubtful loans and where obsolete appraisals are identified. In order to determine whether we would obtain a new appraisal or perform an internal evaluation to determine the fair value of the collateral, the credit committee reviews the existing appraisal to determine if the collateral value is reasonable in view of the current use of the collateral and the economic environment related to the collateral. If the analysis of the existing appraisal does not find that the collateral value is reasonable under the current circumstances, we would obtain a new appraisal on the collateral or perform an internal evaluation of the collateral. The ultimate decision to get a new appraisal rests with the independent credit administration group. A new appraisal is not required if an internal evaluation, as performed by in-house experts, is able to appropriately update the original appraisal assumptions to reflect current market conditions and provide an estimate of the collateral’s market value for analysis of the doubtful loan. The internal evaluations must be in writing and contain sufficient information detailing the analysis, assumptions and conclusions, and they must support performing an evaluation in lieu of ordering a new appraisal. Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate owned is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal) within Level 3 of the fair value hierarchy. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the ACL, if necessary. The fair value is reviewed periodically, and subsequent write-downs are made through a charge to operations, accordingly. Other real estate owned is included in other assets on the consolidated financial statements. For the three and six months ended June 30, 2023 and the twelve months ended December 31, 2022, we recorded n charges to the ACL in connection with loans transferred to other real estate owned. For the three and six months ended June 30, 2023 and the twelve months ended December 31, 2022, we recorded and The fair value estimates, methods, and assumptions for our financial instruments at June 30, 2023 and December 31, 2022 are outlined below. Cash and Cash Equivalents For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Time Deposits with Banks The carrying amounts of time deposits with banks approximate fair value. Investment Securities Held-to-Maturity The carrying amounts of investments held-to-maturity approximate fair value. Investment Securities For investment securities, which include U.S. Treasury securities, obligations of other U.S. government agencies, obligations of states and political subdivisions and mortgage pass-through and related securities, fair values are from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. See disclosures of fair value of investment securities in Note 6. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial, real estate and consumer loans, as outlined by regulatory reporting guidelines. Each category is segmented into fixed and variable interest rate terms and by performing and non-performing categories. For variable rate performing loans, the carrying amount approximates the fair value. For fixed-rate performing loans, except residential mortgage loans, the fair value is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. For performing residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary market sources or the primary origination market. Fixed-rate performing loans are within Level 3 of the fair value hierarchy. At June 30, 2023 and December 31, 2022, the carrying amount of fixed rate performing loans was Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposit accounts, savings accounts and interest-bearing demand deposit accounts, was equal to the amount payable on demand as of June 30, 2023 and December 31, 2022. The fair value of time deposits is based on the discounted value of contractual cashflows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At June 30, 2023 and December 31, 2022, the carrying amount of time deposits was Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements are short-term maturities. Due to the contractual terms of the instruments, the carrying amounts approximated fair value at June 30, 2023 and December 31, 2022. Junior Subordinated Deferrable Interest Debentures We currently have floating-rate junior subordinated deferrable interest debentures outstanding. Due to the contractual terms of the floating-rate junior subordinated deferrable interest debentures, the carrying amounts approximated fair value at June 30, 2023 and December 31, 2022. Other Borrowed Funds We currently have long-term borrowings issued from the Federal Home Loan Bank (“FHLB”). The long-term borrowings outstanding at June 30, 2023 and December 31, 2022 are fixed-rate borrowings and the fair value is based on established market spreads for similar types of borrowings. The fixed rate long-term borrowings are included in Level 2 of the fair value hierarchy. At June 30, 2023 and December 31, 2022, the carrying amount of the fixed rate long-term FHLB borrowings was , respectively. Commitments to Extend Credit and Letters of Credit Commitments to extend credit and fund letters of credit are principally at current interest rates, and, therefore, the carrying amount approximates fair value. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include the bank premises and equipment and core deposit value. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
Loans | |
Loans | Note 3 — Loans A summary of loans, by loan type at June 30, 2023 and December 31, 2022 is as follows: June 30, December 31, 2023 2022 (Dollars in Thousands) Commercial, financial and agricultural $ 4,280,036 $ 4,373,373 Real estate - mortgage 866,427 865,994 Real estate - construction 2,202,187 1,989,669 Consumer 43,411 41,592 Foreign 181,016 159,975 Total loans $ 7,573,077 $ 7,430,603 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | Note 4 — Allowance for Credit Losses The allowance for credit losses (“ACL”) is based on a loss-rate methodology that measures lifetime losses on loan pools that have similar risk characteristics. Loans that do not have similar risk characteristics are evaluated on an individual basis. The segmentation of the loan portfolio into pools requires a balancing process between capturing similar risk characteristics and containing sufficient loss history to provide meaningful results. Our segmentation starts at the general loan category with further sub-segmentation based on collateral types that may be of meaningful size and/or may contain sufficient differences in risk characteristics based on management’s judgement that would warrant further segmentation. The general loan categories along with primary risk characteristics used in our calculation are as follows: Commercial and industrial loans. Construction and land development loans. restrictive underwriting standards, which inhibits the buyer from obtaining long term financing creating excessive housing and lot inventory in the market. Commercial real estate loans. This category includes loans secured by farmland, multifamily properties, owner occupied commercial properties, and non-owner occupied commercial properties. Owner occupied commercial properties include warehouses often along the border for import/export operations, office space where the borrower is the primary tenant, restaurants and other single-tenant retail. Non-owner occupied commercial properties include hotels, retail centers, office and professional buildings, and leased warehouses. These loans carry risk of repayment when market values deteriorate, the business experiences turnover in key management, the business has an inability to attract or keep occupancy levels stable, or when the market experiences an exit of a specific business type that is significant to the local economy, such as a manufacturing plant. 1-4 family mortgages. This category includes both first and second lien mortgages for the purpose of home purchases or refinancing of existing mortgage loans. A small portion of this loan category is related to home equity lines of credits, lots purchases, and home construction. Loan repayments may be affected by unemployment or underemployment and deteriorating market values of real estate. Consumer loans. The loan pools are further broken down using a risk-based segmentation based on internal classifications for commercial loans and past due status for consumer mortgage loans. Non-mortgage consumer loans are evaluated as one segment. On a weekly basis, commercial loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on our internal Watch List report. Additionally, our credit department reviews the majority of our loans for proper internal classification purposes regardless of whether they are past due and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, we will determine if a loan should be placed on an internal Watch List report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. Our internal Watch List report is segregated into the following categories: (i) Pass, (ii) Economic Monitoring, (iii) Special Review, (iv) Watch List—Pass, (v) Watch List—Substandard, and (vi) Watch List—Doubtful. The loans placed in the Special Review category and lower rated credits reflect our opinion that the loans reflect potential weakness which require monitoring on a more frequent basis. Credits in those categories are reviewed and discussed on a regular basis, no less frequently than quarterly, with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Pass category and lower rated credits reflect our opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” Credits in this category are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the Watch List—Substandard category are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that we may sustain some future loss if such weaknesses are not corrected. The loans placed in the Watch List—Doubtful category have shown defined weaknesses and it is likely, based on current information and events, that we will be unable to collect all principal and/or interest amounts contractually due. Watch List—Doubtful loans are placed on non-accrual when they are moved to that category. For the purposes of the ACL, in order to maintain segments with sufficient history for meaningful results, the credits in the Pass and Economic Monitoring categories are aggregated, the credits in the Special Review and Watch List—Pass credits are aggregated, and the credits in the Watch List—Substandard category remain in their own segment. For loans that are classified as Watch List—Doubtful, management evaluates these credits in accordance with ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the loan. The specific reserve allocated under ASC 310-10, is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) net realizable value of the fair value of the collateral if the loan is collateral dependent. Substantially all of our loans evaluated as Watch List—Doubtful under ASC 310-10 are measured using the fair value of collateral method. In rare cases, we may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent. Within each collectively evaluated pool, the robustness of the lifetime historical loss-rate is evaluated and, if needed, is supplemented with peer loss rates through a model risk adjustment. Certain qualitative loss factors are then evaluated to incorporate management’s two-year reasonable and supportable forecast period followed by a reversion to the pool’s average lifetime loss-rate. Those qualitative loss factors are: (i) trends in portfolio volume and composition, (ii) volume and trends in classified loans, delinquencies, non-accruals and TDR’s, (iii) concentration risk, (iv) trends in underlying collateral value, (v) changes in policies, procedures, and strategies, and (vi) economic conditions. Qualitative factors also include potential losses stemming from operational risk factors arising from fraud, natural disasters, pandemics, geopolitical events, and large loans. The large loan operational risk factor was added for the second quarter 2023 ACL. Because of the magnitude of large loans, they pose a higher risk of default and recognizing this risk, and establishing an operational risk factor to capture that risk is prudent action in the current economic environment. Large loans are usually part of a larger relationship with collateral that is pledged across the relationship, thus the default of one of these larger loans in a relationship may jeopardize the entire relationship. The current economic environment has created challenges for borrowers to service their debt. Increasing cap rates, elevated office vacancies, an upward trend in apartment vacancies and significant increases in interest rates are all contributing to the elevated risk in large loans. Should any of the factors considered by management in evaluating the adequacy of the ACL change, our estimate could also change, which could affect the level of future credit loss expense. We have elected to not measure an ACL for accrued interest receivable given our timely approach in identifying and writing off uncollectible accrued interest. An ACL for off-balance sheet exposure is derived from a projected usage rate of any unfunded commitment multiplied by the historical loss rate, plus model risk adjustment, if any, of the on-balance sheet loan pools. Our management continually reviews the ACL of the Subsidiary Banks using the amounts determined from the estimates established on specific doubtful loans, the estimate established on quantitative historical loss percentages, and the estimate based on qualitative current conditions and reasonable and supportable two-year forecasted data. Our methodology reverts to the average lifetime loss-rate beyond the forecast period when we can no longer develop reasonable and supportable forecasts. Should any of the factors considered by management in evaluating the adequacy of the estimate for current expected credit losses change, our estimate of current expected credit losses could also change, which could affect the level of future credit loss expense. While the calculation of our ACL utilizes management’s best judgment and all information reasonably available, the adequacy of the ACL is dependent on a variety of factors beyond our control, including, among other things, the performance of the entire loan portfolio, the economy, government actions, changes in interest rates and the view of regulatory authorities towards loan classifications. A summary of the transactions in the allowance for credit loan losses by loan class is as follows: Three Months Ended June 30, 2023 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2023 $ 27,788 $ 50,933 $ 36,556 $ 3,984 $ 4,559 $ 8,357 $ 291 $ 1,089 $ 133,557 Losses charged to allowance (2,792) — — — — (164) (26) — (2,982) Recoveries credited to allowance 556 526 6 — 1 15 8 — 1,112 Net (losses) recoveries charged to allowance (2,236) 526 6 — 1 (149) (18) — (1,870) Credit loss expense 2,093 1,605 2,126 122 532 2,234 13 91 8,816 Balance at June 30, 2023 $ 27,645 $ 53,064 $ 38,688 $ 4,106 $ 5,092 $ 10,442 $ 286 $ 1,180 $ 140,503 Three Months Ended June 30, 2022 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2022 $ 23,901 $ 36,372 $ 34,854 $ 3,062 $ 4,016 $ 7,046 $ 264 $ 712 $ 110,227 Losses charged to allowance (2,001) — — — (57) — (34) — (2,092) Recoveries credited to allowance 508 1 6 — 168 14 5 — 702 Net (losses) recoveries charged to allowance (1,493) 1 6 — 111 14 (29) — (1,390) Credit loss expense 3,169 340 410 (206) 10 (166) 35 143 3,735 Balance at June 30, 2022 $ 25,577 $ 36,713 $ 35,270 $ 2,856 $ 4,137 $ 6,894 $ 270 $ 855 $ 112,572 Six Months Ended June 30, 2023 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2022 $ 26,728 $ 44,684 $ 36,474 $ 3,794 $ 4,759 $ 8,284 $ 281 $ 968 $ 125,972 Losses charged to allowance (4,763) — — — — (165) (87) — (5,015) Recoveries credited to allowance 1,181 837 11 — 8 92 14 — 2,143 Net (losses) recoveries charged to allowance (3,582) 837 11 — 8 (73) (73) — (2,872) Credit loss expense 4,499 7,543 2,203 312 325 2,231 78 212 17,403 Balance at June 30, 2023 $ 27,645 $ 53,064 $ 38,688 $ 4,106 $ 5,092 $ 10,442 $ 286 $ 1,180 $ 140,503 Six Months Ended June 30, 2022 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2021 $ 23,178 $ 35,390 $ 35,654 $ 3,291 $ 4,073 $ 7,754 $ 272 $ 762 $ 110,374 Losses charged to allowance (4,113) (2) — — (156) (28) (122) — (4,421) Recoveries credited to allowance 1,110 3 14 — 198 62 16 — 1,403 Net (losses) recoveries charged to allowance (3,003) 1 14 — 42 34 (106) — (3,018) Credit loss expense 5,402 1,322 (398) (435) 22 (894) 104 93 5,216 Balance at June 30, 2022 $ 25,577 $ 36,713 $ 35,270 $ 2,856 $ 4,137 $ 6,894 $ 270 $ 855 $ 112,572 The credit loss charged to expense for the three and six months ended June 30, 2023 has increased from the same periods of 2022 in order to provide some protection from potential losses in our loan portfolio given the high level of uncertainty in the economy and a potential economic recession on the horizon. We have increased the severity of some of the qualitative loss factors in certain pools of the portfolio to encompass the economic uncertainty, resulting in an increase in the required ACL. The pool specific qualitative loss factors management deemed appropriate for the ACL calculation at December 31, 2022 remained constant in the June 30, 2023 ACL calculation. The tables below provide additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class as of June 30, 2023 and December 31, 2022: June 30, 2023 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 31,312 $ 3,010 $ 1,421,885 $ 24,635 Commercial real estate: other construction & land development 10,173 70 2,192,014 52,994 Commercial real estate: farmland & commercial 287 — 2,518,383 38,688 Commercial real estate: multifamily 108 — 308,061 4,106 Residential: first lien 70 — 418,831 5,092 Residential: junior lien 318 — 447,208 10,442 Consumer — — 43,411 286 Foreign — — 181,016 1,180 Total $ 42,268 $ 3,080 $ 7,530,809 $ 137,423 December 31, 2022 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 30,747 $ 2,375 $ 1,468,006 $ 24,353 Commercial real estate: other construction & land development 20,483 70 1,969,186 44,614 Commercial real estate: farmland & commercial 94 — 2,568,025 36,474 Commercial real estate: multifamily 117 — 306,384 3,794 Residential: first lien 77 — 425,647 4,759 Residential: junior lien 312 — 439,958 8,284 Consumer — — 41,592 281 Foreign — — 159,975 968 Total $ 51,830 $ 2,445 $ 7,378,773 $ 123,527 The table below provides additional information on loans accounted for on a non-accrual basis by loan class at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 (Dollars in Thousands) Domestic Commercial $ 31,312 $ 30,747 Commercial real estate: other construction & land development 10,173 20,483 Commercial real estate: farmland & commercial 287 94 Commercial real estate: multifamily 108 117 Residential: first lien 203 207 Total non-accrual loans $ 42,083 $ 51,648 We adopted the provisions of Accounting Standards Update 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) on January 1, 2023. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in existing guidance and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current period gross write-offs by year of origination for financing receivables and net investments in leases. The adoption of ASU 2022-22 did not have a significant impact to our consolidated financial statements. We occasionally provide modifications to borrowers experiencing financial difficulties. Modifications may include certain concessions that we must evaluate under ASU 2022-02 to determine the need for disclosure. Concessions to borrowers experiencing financial difficulties that would require disclosure include principal forgiveness, term extension, an other-than-insignificant payment delay, an interest rate reduction or a combination of these concessions. For the six months ended June 30, 2023, we did not provide any modifications under these circumstances to any borrower experiencing financial difficulty. Under guidance in effect prior to January 1, 2023, the following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in Watch List—Doubtful loans. December 31, 2022 (Dollars in Thousands) Domestic Residential: first lien $ 1,642 Residential: junior lien 714 Consumer 802 Foreign 55 Total troubled debt restructuring $ 3,213 The Subsidiary Banks charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when While our management believes that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the ACL can be made only on a subjective basis. It is the judgment of our management that the ACL at June 30, 2023 was adequate to absorb probable losses from loans in the portfolio at that date. The following tables present information regarding the aging of past due loans by loan class at June 30, 2023 and December 31, 2022: June 30, 2023 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 14,411 $ 1,584 $ 29,975 $ 167 $ 45,970 $ 1,407,227 $ 1,453,197 Commercial real estate: other construction & land development 629 98 10,085 — 10,812 2,191,375 2,202,187 Commercial real estate: farmland & commercial 745 — — — 745 2,517,925 2,518,670 Commercial real estate: multifamily 45 108 — — 153 308,016 308,169 Residential: first lien 3,338 758 2,713 2,588 6,809 412,093 418,902 Residential: junior lien 1,344 299 1,278 1,278 2,921 444,604 447,525 Consumer 255 19 6 6 280 43,131 43,411 Foreign 184 226 374 374 784 180,232 181,016 Total past due loans $ 20,951 $ 3,092 $ 44,431 $ 4,413 $ 68,474 $ 7,504,603 $ 7,573,077 December 31, 2022 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,732 $ 258 $ 1,014 $ 59 $ 3,004 $ 1,495,750 $ 1,498,754 Commercial real estate: other construction & land development 1,130 — — — 1,130 1,988,539 1,989,669 Commercial real estate: farmland & commercial 1,744 117 — — 1,861 2,566,257 2,568,118 Commercial real estate: multifamily — — — — — 306,501 306,501 Residential: first lien 2,023 1,068 4,189 4,061 7,280 418,444 425,724 Residential: junior lien 925 771 1,717 1,717 3,413 436,857 440,270 Consumer 281 14 7 7 302 41,290 41,592 Foreign 717 23 288 288 1,028 158,947 159,975 Total past due loans $ 8,552 $ 2,251 $ 7,215 $ 6,132 $ 18,018 $ 7,412,585 $ 7,430,603 The increase in Commercial loans past due 90 days or greater at June 30, 2023 can be primarily attributed to a loan secured by equipment and other assets used in the oil and gas industry as well as oil and gas production that is on non-accrual. The increase in Commercial Real Estate: Other Construction & Land Development loans past due 90 days or greater can be primarily attributed to a loan secured by commercial property that is on non-accrual. A summary of the loan portfolio by credit quality indicator by loan class and by year of origination at June 30, 2023 and December 31, 2022 is presented below: 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Balance at June 30, 2023 Domestic Commercial Pass $ 389,737 $ 432,583 $ 423,509 $ 58,607 $ 25,484 $ 65,813 $ 1,395,733 Special Review — 300 189 — — — 489 Watch List - Substandard 23,992 1,543 113 — 15 — 25,663 Watch List - Doubtful 32 31,280 — — — — 31,312 Total Commercial $ 413,761 $ 465,706 $ 423,811 $ 58,607 $ 25,499 $ 65,813 $ 1,453,197 Commercial Current-period gross writeoffs $ 2,443 $ 2,045 $ 9 $ 264 $ — $ 2 $ 4,763 Commercial real estate: other construction & land development Pass $ 650,337 $ 713,105 $ 479,217 $ 166,136 $ 129,419 $ 30,999 $ 2,169,213 Special Review 20,094 2,500 — — 207 — 22,801 Watch List - Doubtful 88 10,085 — — — — 10,173 Total Commercial real estate: other construction & land development $ 670,519 $ 725,690 $ 479,217 $ 166,136 $ 129,626 $ 30,999 $ 2,202,187 Commercial real estate: other construction & land development Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Commercial real estate: farmland & commercial Pass $ 427,809 $ 681,701 $ 418,069 $ 317,679 $ 210,586 $ 314,081 $ 2,369,925 Special Review 69,450 — — 829 — — 70,279 Watch List - Pass 16,722 88 239 — — — 17,049 Watch List - Substandard 56,333 2,232 — 2,473 91 1 61,130 Watch List - Doubtful 198 89 — — — — 287 Total Commercial real estate: farmland & commercial $ 570,512 $ 684,110 $ 418,308 $ 320,981 $ 210,677 $ 314,082 $ 2,518,670 Commercial real estate: farmland & commercial Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Commercial real estate: multifamily Pass $ 54,095 $ 123,832 $ 43,201 $ 58,737 $ 11,321 $ 16,875 $ 308,061 Watch List - Doubtful — 108 — — — — 108 Total Commercial real estate: multifamily $ 54,095 $ 123,940 $ 43,201 $ 58,737 $ 11,321 $ 16,875 $ 308,169 Commercial real estate: multifamily Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Residential: first lien Pass $ 93,380 $ 91,403 $ 72,269 $ 43,195 $ 30,667 $ 87,575 $ 418,489 Watch List - Substandard — — 343 — — — 343 Watch List - Doubtful — 70 — — — — 70 Total Residential: first lien $ 93,380 $ 91,473 $ 72,612 $ 43,195 $ 30,667 $ 87,575 $ 418,902 Residential: first lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Residential: junior lien Pass $ 40,329 $ 86,506 $ 103,393 $ 81,966 $ 37,583 $ 97,430 $ 447,207 Watch List- Doubtful 318 — — — — — 318 Total Residential: junior lien $ 40,647 $ 86,506 $ 103,393 $ 81,966 $ 37,583 $ 97,430 $ 447,525 Residential: junior lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ 165 $ 165 Consumer Pass $ 22,184 $ 15,853 $ 3,187 $ 441 $ 228 $ 1,518 $ 43,411 Total Consumer $ 22,184 $ 15,853 $ 3,187 $ 441 $ 228 $ 1,518 $ 43,411 Consumer Current-period gross writeoffs $ 9 $ 73 $ 4 $ — $ — $ 1 $ 87 Foreign Pass $ 60,834 $ 91,375 $ 14,995 $ 4,598 $ 3,974 $ 5,240 $ 181,016 Total Foreign $ 60,834 $ 91,375 $ 14,995 $ 4,598 $ 3,974 $ 5,240 $ 181,016 Foreign Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Total Loans $ 1,925,932 $ 2,284,653 $ 1,558,724 $ 734,661 $ 449,575 $ 619,532 $ 7,573,077 2022 2021 2020 2019 2018 Prior Total (Dollars in Thousands) Balance at December 31, 2022 Domestic Commercial Pass $ 736,462 $ 524,879 $ 96,401 $ 35,917 $ 43,792 $ 29,464 $ 1,466,915 Special Review 377 213 — — — — 590 Watch List - Substandard 161 149 143 — 49 — 502 Watch List - Doubtful 29,789 — 954 — — 4 30,747 Total Commercial $ 766,789 $ 525,241 $ 97,498 $ 35,917 $ 43,841 $ 29,468 $ 1,498,754 Commercial Commercial real estate: other construction & land development Pass $ 913,675 $ 666,347 $ 173,824 $ 174,897 $ 35,069 $ 5,165 $ 1,968,977 Special Review — — — 209 — — 209 Watch List - Doubtful 19,982 407 94 — — — 20,483 Total Commercial real estate: other construction & land development $ 933,657 $ 666,754 $ 173,918 $ 175,106 $ 35,069 $ 5,165 $ 1,989,669 Commercial real estate: farmland & commercial Pass $ 811,117 $ 584,134 $ 456,200 $ 232,537 $ 325,214 $ 81,295 $ 2,490,497 Special Review 2,855 — 842 — — — 3,697 Watch List - Pass 17,060 247 — — — — 17,307 Watch List - Substandard 2,275 — 54,152 96 — — 56,523 Watch List - Doubtful 94 — — — — — 94 Total Commercial real estate: farmland & commercial $ 833,401 $ 584,381 $ 511,194 $ 232,633 $ 325,214 $ 81,295 $ 2,568,118 Commercial real estate: multifamily Pass $ 127,680 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,384 Watch List - Doubtful 117 — — — — — 117 Total Commercial real estate: multifamily $ 127,797 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,501 Residential: first lien Pass $ 138,771 $ 82,466 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,287 Watch List - Substandard — 360 — — — — 360 Watch List - Doubtful 77 — — — — — 77 Total Residential: first lien $ 138,848 $ 82,826 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,724 Residential: junior lien Pass $ 92,256 $ 108,815 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 439,958 Watch List- Doubtful — 312 — — — — 312 Total Residential: j |
Stock Options
Stock Options | 6 Months Ended |
Jun. 30, 2023 | |
Stock Options | |
Stock Options | Note 5 — Stock Options On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There were 800,000 shares of common stock available for stock option grants under the 2012 Plan, which were qualified incentive stock options (“ISOs”) or non-qualified stock options. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years . On April 4, 2022 the 2012 plan expired and was not renewed. A summary of option activity under the stock option plan for the six months ended June 30, 2023 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2022 461,822 $ 29.67 Plus: Options granted — — Less: Options exercised (11,187) 26.27 Options expired — — Options forfeited (5,188) 37.38 Options outstanding at June 30, 2023 445,447 29.67 3.58 $ 6,474 Options fully vested and exercisable at June 30, 2023 286,044 $ 26.75 2.17 $ 4,992 Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2023 was $77,000 and $179,000 , respectively. Stock-based compensation expense include in the consolidated statements of income for the three and six months ended June 30, 2022 was , respectively. As of June 30, 2023, there was approximately On April 18, 2022, the Board of Directors adopted the 2022 International Bancshares Corporation Stock Appreciation Rights Plan (the “SAR Plan”). There are shares of underlying common stock that may be used for stock appreciation right (“SAR”) grants under the plan, however, no actual shares will be granted. Upon exercise, the SAR will be settled in cash. SARs granted may be exercisable for a period of up to period. As of June 30, 2023, a total of A summary of activity under the SAR Plan for the six months ended June 30, 2023 is as follows: Weighted Weighted average Number of average remaining Aggregate stock appreciation exercise contractual intrinsic rights price term (years) value ($) (in Thousands) Stock appreciation rights outstanding at December 31, 2022 489,250 $ 39.35 Plus: Stock appreciation rights granted Less: Stock appreciation rights exercised — — Stock appreciation rights expired — — Stock appreciation rights forfeited (12,250) 39.33 Stock appreciation rights outstanding at June 30, 2023 477,000 39.35 9.50 $ 2,313 Stock appreciation rights fully vested and exercisable at June 30, 2023 — $ — The fair value of the liability for payments due to stock appreciation rights holders at June 30, 2023 is approximately $976,000 , as calculated using a Black-Sholes Merton model, and is included in other liabilities on the consolidated statements of condition. The expense recorded in connection with all grants under the SAR Plan totaled for the three and six months ended June 30, 2023, respectively. As of June 30, 2023, there was approximately |
Investment Securities, Equity S
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | Note 6 — Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments We classify debt securities into one of three categories: held-to-maturity, available-for-sale, or trading. Such debt securities are reassessed for appropriate classification at each reporting date. Securities classified as “held-to-maturity” are carried at amortized cost for financial statement reporting, while securities classified as “available-for-sale” and “trading” are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading,” while unrealized holding gains and losses related to those securities classified as “available-for-sale” are excluded from net income and reported net of tax as other comprehensive income (loss) and accumulated other comprehensive income (loss) until realized, or in the case of losses, when deemed other than temporary. Available-for-sale and held-to-maturity debt securities in an unrealized loss position are evaluated for the underlying cause of the loss. In the event that the deterioration in value is attributable to credit related reasons, then the amount of credit-related impairment will be recorded as a charge to our ACL with subsequent changes in the amount of impairment, up or down, also recorded through our ACL. We have evaluated the debt securities classified as available-for-sale and held-to-maturity at June 30, 2023 and have determined that no debt securities in an unrealized loss position are arising from credit related reasons and have therefore not recorded any allowances for debt securities in our ACL for the period. Unrealized gains and losses related to equity securities with readily determinable fair values are included in net income. The amortized cost and estimated fair value by type of investment security at June 30, 2023 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 5,123,159 $ 1,237 $ (616,284) $ 4,508,112 $ 4,508,112 Obligations of states and political subdivisions 162,830 892 (1,987) 161,735 161,735 Total investment securities $ 5,285,989 $ 2,129 $ (618,271) $ 4,669,847 $ 4,669,847 (1) Included in the carrying value of residential mortgage-backed securities are $827,045 of mortgage-backed securities issued by Ginnie Mae and $3,681,067 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2022 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) U.S. Treasury securities $ 49,752 $ — $ (359) $ 49,393 $ 49,393 Residential mortgage-backed securities 4,805,735 3,145 (599,668) 4,209,212 4,209,212 Obligations of states and political subdivisions 163,509 927 (5,245) 159,191 159,191 Total investment securities $ 5,018,996 $ 4,072 $ (605,272) $ 4,417,796 $ 4,417,796 (1) Included in the carrying value of residential mortgage-backed securities are $681,121 of mortgage-backed securities issued by Ginnie Mae and $3,528,091 of mortgage-backed securities issued by Fannie Mae and Freddie. The amortized cost and estimated fair value of investment securities at June 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 2,075 $ 2,075 $ — $ — Due after one year through five years 1,325 1,325 — — Due after five years through ten years — — 440 440 Due after ten years — — 162,390 161,295 Residential mortgage-backed securities — — 5,123,159 4,508,112 Total investment securities $ 3,400 $ 3,400 $ 5,285,989 $ 4,669,847 Residential mortgage-backed securities are securities primarily issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie Mae”), or the Government National Mortgage Association (“Ginnie Mae”). Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. Investments in residential mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government, however, we believe that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available-for-sale debt investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $1,642,812,000 and $1,394,906,000, respectively, at June 30, 2023. Proceeds from the sale and calls of debt securities available-for-sale were $0 and $450,000 for the three and six months ended June 30, 2023, which included $0 and $0 of mortgage-backed securities. Gross gains of $0 and $0 and gross losses of $0 and $0 were realized on the sales and calls for the three and six months ended June 30, 2023. Proceeds from the sale and call of debt securities available-for-sale were 2022, which included $0 and $0 of mortgage-backed securities. Gross gains of Equity securities with readily determinable fair values consist primarily of Community Reinvestment Act funds. At June 30, 2023 and December 31, 2022, the balance in equity securities with readily determinable fair values recorded at fair value were , respectively. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2023 and the three and six months ended June 30, 2022: Three Months Ended June 30, 2023 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (92) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (92) Three Months Ended June 30, 2022 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (229) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (229) Six Months Ended June 30, 2023 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (58) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (58) Six Months Ended June 30, 2022 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (498) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (498) Other investments include equity and merchant banking investments held by our subsidiary banks and non-banking entities. We hold ownership interests in limited partnerships for the purpose of investing in low-income housing tax credit (“LIHTC”) projects. The partnerships may acquire, construct or rehabilitate housing for low- and moderate-income individuals. We realize a return primarily from federal tax credits and other federal tax deductions associated with the underlying projects. We are a limited partner in the partnerships, and not required to consolidate the entities in our consolidated financial statements. Investments in LIHTC projects totaled at June 30, 2023 and at December 31, 2022, respectively, and are included in other investments on the consolidated financial statements. Unfunded commitments to LIHTC projects totaled |
Other Borrowed Funds
Other Borrowed Funds | 6 Months Ended |
Jun. 30, 2023 | |
Other Borrowed Funds | |
Other Borrowed Funds | Note 7 — Other Borrowed Funds Other borrowed funds include FHLB borrowings, which are short-term and long-term borrowings issued by the FHLB of Dallas at the market price offered at the time of funding. These borrowings are secured by residential mortgage-backed investment securities and a portion of our loan portfolio. At June 30, 2023, other borrowed funds totaled |
Junior Subordinated Interest De
Junior Subordinated Interest Deferrable Debentures | 6 Months Ended |
Jun. 30, 2023 | |
Junior Subordinated Interest Deferrable Debentures | |
Junior Subordinated Interest Deferrable Debentures | Note 8 — Junior Subordinated Interest Deferrable Debentures As of June 30, 2023, we had four statutory business trusts under the laws of the State of Delaware, for the purpose of issuing trust preferred securities. The four statutory business trusts we formed (the “Trusts”) each issued capital and common securities (“Capital and Common Securities”) and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (“Debentures”) that we issued. As of June 30, 2023 and December 31, 2022, the principal amount of Debentures outstanding totaled $108,868,000 and $134,642,000, respectively. On April 7, 2023, after receiving the regulatory approvals, we redeemed the full of Junior Subordinated Deferrable Interest Debentures related to IB Capital Trust VIII. The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness (as defined in the respective Indentures) and are pari passu For financial reporting purposes, the Trusts are treated as our investments and not consolidated in our consolidated financial statements. Although the Capital and Common Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital and Common Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital and Common Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of of Tier 1 capital on an aggregate basis. Any amount that exceeds the threshold would qualify as Tier 2 capital. At June 30, 2023 and December 31, 2022, the total $ , respectively, of the Capital and Common Securities outstanding qualified as Tier 1 capital. The following table illustrates key information about each of the Capital and Common Securities and their interest rate at June 30, 2023: Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1)(2) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust IX $ 41,238 Quarterly 6.80 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 6.95 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 6.80 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 6.95 % LIBOR + 1.45 September 2037 September 2012 $ 108,868 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. (2) The interest rate index on the Capital and Common Securities transitioned to the Secured Overnight Financing Rate (“SOFR”) effective July 1, 2023. |
Common Stock and Dividends
Common Stock and Dividends | 6 Months Ended |
Jun. 30, 2023 | |
Common Stock and Dividends | |
Common Stock and Dividends | Note 9 — Common Stock and Dividends We paid cash dividends of $.63 per share on February 28, 2023 to record holders of our common stock on February 15, 2023. We paid cash dividends of per share on February 28, 2022 to record holders of our common stock on February 15, 2022. In April 2009, the Board of Directors re-established a formal stock repurchase program that authorized the repurchase of up to $40 million of common stock within the following 12 months . Annually since then, including on February 21, 2023, the Board of Directors extended and increased the repurchase program to purchase up to |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | Note 10 — Commitments and Contingent Liabilities We are involved in various legal proceedings that are in various stages of litigation. We have determined, based on discussions with its counsel, that any material loss in such actions, individually or in the aggregate, is remote or the damages sought, even if fully recovered, would not be considered material to our consolidated financial position or results of operations. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. |
Capital Ratios
Capital Ratios | 6 Months Ended |
Jun. 30, 2023 | |
Capital Ratios | |
Capital Ratios | Note 11 — Capital Ratios Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amount and classifications are also subject to qualitative judgements by regulators about components, risk-weighting and other factors. In July 2013, the Federal Deposit Insurance Corporation (“FDIC”) and other regulatory bodies established a new, comprehensive capital framework for U.S. banking organizations, consisting of minimum requirements that increase both the quantity and quality of capital held by banking organizations. The final rules are a result of the implementation of the BASEL III capital reforms and various Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”) related capital provisions. Consistent with the Basel international framework, the rules include a minimum ratio of Common Equity Tier 1 (“CET1”) to risk-weighted assets of 4.5% and a CET1 capital conservation buffer of 2.5% of risk-weighted assets. The capital conservation buffer began phasing-in on January 1, 2016 at .625% and increased each year until January 1, 2019, when we were required to have a 2.5% capital conservation buffer, effectively resulting in a minimum ratio of CET1 capital to risk-weighted assets of at least 7% upon full implementation. The rules also raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and include a minimum leverage ratio of 4% for all banking organizations. Regarding the quality of capital, the rules emphasize CET1 capital and implements strict eligibility criteria for regulatory capital instruments. The rules also improve the methodology for calculating risk-weighted assets to enhance risk sensitivity. The rules were subject to a four-year phase in period for mandatory compliance and we were required to begin to phase in the rules beginning on January 1, 2015. We believe that as of June 30, 2023, we continue to meet all fully phased-in capital adequacy requirements. On November 21, 2017, the OCC, the Federal Reserve and the FDIC finalized a proposed rule that extends the current treatment under the regulatory capital rules for certain regulatory capital deductions and risk weights and certain minority interest requirements, as they apply to banking organizations that are not subject to the advanced approaches capital rules. Effective January 1, 2018, the rule also paused the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests. The agencies are also considering whether to make adjustments to the capital rules in response to CECL (the FASB Standard relating to current expected credit loss) and its potential impact on regulatory capital. On December 7, 2017, the Basel Committee on Banking Supervision unveiled the latest round of its regulatory capital framework, commonly called “Basel IV.” The framework makes changes to the capital framework first introduced as “Basel III” in 2010. The committee targeted 2022-2027 as the timeframe for implementation by regulators in individual countries, including the U.S. federal bank regulatory agencies (after notice and comment). On May 24, 2018, the EGRRCPA was enacted, and, among other things, it includes a simplified capital rule change which effectively exempts banks with assets of less than $10 billion that exceed the “community bank leverage ratio,” from all risk-based capital requirements, including Basel III and its predecessors. The federal banking agencies must establish the “community bank leverage ratio” (a ratio of tangible equity to average consolidated assets) between 8% and 10% before community banks can begin to take advantage of this regulatory relief provision. Some of the Subsidiary Banks, with assets of less than $10 billion, may qualify for this exemption. Additionally, under the EGRRCPA, qualified bank holding companies with assets of up to $3 billion (currently $1 billion) will be eligible for the Federal Reserve’s Small Bank Holding Company Policy Statement, which eases limitations on the issuance of debt by holding companies. On August 28, 2018, the Federal Reserve issued an interim final rule expanding the applicability of its Small Bank Holding Company Policy Statement. While holding companies that meet the conditions of the policy statement are excluded from consolidated capital requirements, their depository institutions continue to be subject to minimum capital requirements. Finally, for banks that continue to be subject to the risk-based capital rules of Basel III (e.g., 150%), certain commercial real estate loans that were formally classified as high volatility commercial real estate 31 (“HVCRE”) will not be subject to heightened risk weights if they meet certain criteria. Also, while acquisition, development, and construction (“ADC”) loans will generally be subject to heightened risk weights, certain exceptions will apply. On September 18, 2018, the federal banking agencies issued a proposed rule modifying the agencies’ capital rules for HVCRE. We had a CET1 to risk-weighted assets ratio of 21.32% on June 30, 2023 and 20.21% on December 31, 2022. We had a Tier 1 capital-to-average-total-asset (leverage) ratio of at June 30, 2023 and December 31, 2022, respectively. Our CET1 capital consists of common stock and related surplus, net of treasury stock, and retained earnings. We and our Subsidiary Banks elected to opt-out of the requirement to include most components of accumulated other comprehensive income (loss) in the calculation of CET1 capital. CET1 is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Tier 1 capital includes CET1 capital and additional Tier 1 capital. Additional Tier 1 capital includes the Capital and Common Securities issued by the Trusts (see Note 8 above) up to a maximum of of Tier 1 capital on an aggregate basis. Any amount that exceeds the threshold qualifies as Tier 2 capital. As of June 30, 2023, the total of of the Capital and Common Securities outstanding qualified as Tier 1 capital. We actively monitor the regulatory capital ratios to ensure that our Subsidiary Banks are well-capitalized under the regulatory framework. The CET1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk-weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. We and our Subsidiary Banks are subject to the regulatory capital requirements administered by the Federal Reserve, and, for our Subsidiary Banks, the FDIC. Regulatory authorities can initiate certain mandatory actions if we or any of our Subsidiary Banks fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of June 30, 2023, that we and each of our Subsidiary Banks meet all capital adequacy requirements to which we are subject. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Assets and liabilities measured at fair value on a recurring basis | The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2023 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2023 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 4,508,112 $ — $ 4,508,112 $ — States and political subdivisions 161,735 — 161,735 — Equity Securities 5,300 5,300 — — $ 4,675,147 $ 5,300 $ 4,669,847 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2022 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities U.S. Treasury securities $ 49,393 $ — $ 49,393 $ — Residential mortgage-backed securities 4,209,212 — 4,209,212 — States and political subdivisions 159,191 — 159,191 — Equity Securities 5,358 5,358 — — $ 4,423,154 $ 5,358 $ 4,417,796 $ — |
Assets measured at fair value on a non-recurring basis | The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2023 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Period ended Identical Observable Unobservable Provision June 30, Assets Inputs Inputs During 2023 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 29,763 $ — $ — $ 29,763 $ 1,010 Other real estate owned 899 — — 899 297 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2022 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2022 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Watch-List doubtful loans $ 30,743 $ — $ — $ 30,743 $ 2,346 Other real estate owned 5,653 — — 5,653 1,627 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans | |
Summary of loans, by loan type | June 30, December 31, 2023 2022 (Dollars in Thousands) Commercial, financial and agricultural $ 4,280,036 $ 4,373,373 Real estate - mortgage 866,427 865,994 Real estate - construction 2,202,187 1,989,669 Consumer 43,411 41,592 Foreign 181,016 159,975 Total loans $ 7,573,077 $ 7,430,603 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Allowance for Credit Losses | |
Loans individually or collectively evaluated for their impairment and related allowance, by loan class | Three Months Ended June 30, 2023 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2023 $ 27,788 $ 50,933 $ 36,556 $ 3,984 $ 4,559 $ 8,357 $ 291 $ 1,089 $ 133,557 Losses charged to allowance (2,792) — — — — (164) (26) — (2,982) Recoveries credited to allowance 556 526 6 — 1 15 8 — 1,112 Net (losses) recoveries charged to allowance (2,236) 526 6 — 1 (149) (18) — (1,870) Credit loss expense 2,093 1,605 2,126 122 532 2,234 13 91 8,816 Balance at June 30, 2023 $ 27,645 $ 53,064 $ 38,688 $ 4,106 $ 5,092 $ 10,442 $ 286 $ 1,180 $ 140,503 Three Months Ended June 30, 2022 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, 2022 $ 23,901 $ 36,372 $ 34,854 $ 3,062 $ 4,016 $ 7,046 $ 264 $ 712 $ 110,227 Losses charged to allowance (2,001) — — — (57) — (34) — (2,092) Recoveries credited to allowance 508 1 6 — 168 14 5 — 702 Net (losses) recoveries charged to allowance (1,493) 1 6 — 111 14 (29) — (1,390) Credit loss expense 3,169 340 410 (206) 10 (166) 35 143 3,735 Balance at June 30, 2022 $ 25,577 $ 36,713 $ 35,270 $ 2,856 $ 4,137 $ 6,894 $ 270 $ 855 $ 112,572 Six Months Ended June 30, 2023 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2022 $ 26,728 $ 44,684 $ 36,474 $ 3,794 $ 4,759 $ 8,284 $ 281 $ 968 $ 125,972 Losses charged to allowance (4,763) — — — — (165) (87) — (5,015) Recoveries credited to allowance 1,181 837 11 — 8 92 14 — 2,143 Net (losses) recoveries charged to allowance (3,582) 837 11 — 8 (73) (73) — (2,872) Credit loss expense 4,499 7,543 2,203 312 325 2,231 78 212 17,403 Balance at June 30, 2023 $ 27,645 $ 53,064 $ 38,688 $ 4,106 $ 5,092 $ 10,442 $ 286 $ 1,180 $ 140,503 Six Months Ended June 30, 2022 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, 2021 $ 23,178 $ 35,390 $ 35,654 $ 3,291 $ 4,073 $ 7,754 $ 272 $ 762 $ 110,374 Losses charged to allowance (4,113) (2) — — (156) (28) (122) — (4,421) Recoveries credited to allowance 1,110 3 14 — 198 62 16 — 1,403 Net (losses) recoveries charged to allowance (3,003) 1 14 — 42 34 (106) — (3,018) Credit loss expense 5,402 1,322 (398) (435) 22 (894) 104 93 5,216 Balance at June 30, 2022 $ 25,577 $ 36,713 $ 35,270 $ 2,856 $ 4,137 $ 6,894 $ 270 $ 855 $ 112,572 June 30, 2023 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 31,312 $ 3,010 $ 1,421,885 $ 24,635 Commercial real estate: other construction & land development 10,173 70 2,192,014 52,994 Commercial real estate: farmland & commercial 287 — 2,518,383 38,688 Commercial real estate: multifamily 108 — 308,061 4,106 Residential: first lien 70 — 418,831 5,092 Residential: junior lien 318 — 447,208 10,442 Consumer — — 43,411 286 Foreign — — 181,016 1,180 Total $ 42,268 $ 3,080 $ 7,530,809 $ 137,423 December 31, 2022 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 30,747 $ 2,375 $ 1,468,006 $ 24,353 Commercial real estate: other construction & land development 20,483 70 1,969,186 44,614 Commercial real estate: farmland & commercial 94 — 2,568,025 36,474 Commercial real estate: multifamily 117 — 306,384 3,794 Residential: first lien 77 — 425,647 4,759 Residential: junior lien 312 — 439,958 8,284 Consumer — — 41,592 281 Foreign — — 159,975 968 Total $ 51,830 $ 2,445 $ 7,378,773 $ 123,527 |
Loans accounted on non-accrual basis, by loan class | June 30, 2023 December 31, 2022 (Dollars in Thousands) Domestic Commercial $ 31,312 $ 30,747 Commercial real estate: other construction & land development 10,173 20,483 Commercial real estate: farmland & commercial 287 94 Commercial real estate: multifamily 108 117 Residential: first lien 203 207 Total non-accrual loans $ 42,083 $ 51,648 |
Loans accounted for as trouble debt restructuring, by loan class | December 31, 2022 (Dollars in Thousands) Domestic Residential: first lien $ 1,642 Residential: junior lien 714 Consumer 802 Foreign 55 Total troubled debt restructuring $ 3,213 |
Information regarding the aging of past due loans, by loan class | June 30, 2023 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 14,411 $ 1,584 $ 29,975 $ 167 $ 45,970 $ 1,407,227 $ 1,453,197 Commercial real estate: other construction & land development 629 98 10,085 — 10,812 2,191,375 2,202,187 Commercial real estate: farmland & commercial 745 — — — 745 2,517,925 2,518,670 Commercial real estate: multifamily 45 108 — — 153 308,016 308,169 Residential: first lien 3,338 758 2,713 2,588 6,809 412,093 418,902 Residential: junior lien 1,344 299 1,278 1,278 2,921 444,604 447,525 Consumer 255 19 6 6 280 43,131 43,411 Foreign 184 226 374 374 784 180,232 181,016 Total past due loans $ 20,951 $ 3,092 $ 44,431 $ 4,413 $ 68,474 $ 7,504,603 $ 7,573,077 December 31, 2022 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 1,732 $ 258 $ 1,014 $ 59 $ 3,004 $ 1,495,750 $ 1,498,754 Commercial real estate: other construction & land development 1,130 — — — 1,130 1,988,539 1,989,669 Commercial real estate: farmland & commercial 1,744 117 — — 1,861 2,566,257 2,568,118 Commercial real estate: multifamily — — — — — 306,501 306,501 Residential: first lien 2,023 1,068 4,189 4,061 7,280 418,444 425,724 Residential: junior lien 925 771 1,717 1,717 3,413 436,857 440,270 Consumer 281 14 7 7 302 41,290 41,592 Foreign 717 23 288 288 1,028 158,947 159,975 Total past due loans $ 8,552 $ 2,251 $ 7,215 $ 6,132 $ 18,018 $ 7,412,585 $ 7,430,603 |
Summary of the loan portfolio by credit quality indicator, by loan class | 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Balance at June 30, 2023 Domestic Commercial Pass $ 389,737 $ 432,583 $ 423,509 $ 58,607 $ 25,484 $ 65,813 $ 1,395,733 Special Review — 300 189 — — — 489 Watch List - Substandard 23,992 1,543 113 — 15 — 25,663 Watch List - Doubtful 32 31,280 — — — — 31,312 Total Commercial $ 413,761 $ 465,706 $ 423,811 $ 58,607 $ 25,499 $ 65,813 $ 1,453,197 Commercial Current-period gross writeoffs $ 2,443 $ 2,045 $ 9 $ 264 $ — $ 2 $ 4,763 Commercial real estate: other construction & land development Pass $ 650,337 $ 713,105 $ 479,217 $ 166,136 $ 129,419 $ 30,999 $ 2,169,213 Special Review 20,094 2,500 — — 207 — 22,801 Watch List - Doubtful 88 10,085 — — — — 10,173 Total Commercial real estate: other construction & land development $ 670,519 $ 725,690 $ 479,217 $ 166,136 $ 129,626 $ 30,999 $ 2,202,187 Commercial real estate: other construction & land development Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Commercial real estate: farmland & commercial Pass $ 427,809 $ 681,701 $ 418,069 $ 317,679 $ 210,586 $ 314,081 $ 2,369,925 Special Review 69,450 — — 829 — — 70,279 Watch List - Pass 16,722 88 239 — — — 17,049 Watch List - Substandard 56,333 2,232 — 2,473 91 1 61,130 Watch List - Doubtful 198 89 — — — — 287 Total Commercial real estate: farmland & commercial $ 570,512 $ 684,110 $ 418,308 $ 320,981 $ 210,677 $ 314,082 $ 2,518,670 Commercial real estate: farmland & commercial Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Commercial real estate: multifamily Pass $ 54,095 $ 123,832 $ 43,201 $ 58,737 $ 11,321 $ 16,875 $ 308,061 Watch List - Doubtful — 108 — — — — 108 Total Commercial real estate: multifamily $ 54,095 $ 123,940 $ 43,201 $ 58,737 $ 11,321 $ 16,875 $ 308,169 Commercial real estate: multifamily Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Residential: first lien Pass $ 93,380 $ 91,403 $ 72,269 $ 43,195 $ 30,667 $ 87,575 $ 418,489 Watch List - Substandard — — 343 — — — 343 Watch List - Doubtful — 70 — — — — 70 Total Residential: first lien $ 93,380 $ 91,473 $ 72,612 $ 43,195 $ 30,667 $ 87,575 $ 418,902 Residential: first lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Residential: junior lien Pass $ 40,329 $ 86,506 $ 103,393 $ 81,966 $ 37,583 $ 97,430 $ 447,207 Watch List- Doubtful 318 — — — — — 318 Total Residential: junior lien $ 40,647 $ 86,506 $ 103,393 $ 81,966 $ 37,583 $ 97,430 $ 447,525 Residential: junior lien Current-period gross writeoffs $ — $ — $ — $ — $ — $ 165 $ 165 Consumer Pass $ 22,184 $ 15,853 $ 3,187 $ 441 $ 228 $ 1,518 $ 43,411 Total Consumer $ 22,184 $ 15,853 $ 3,187 $ 441 $ 228 $ 1,518 $ 43,411 Consumer Current-period gross writeoffs $ 9 $ 73 $ 4 $ — $ — $ 1 $ 87 Foreign Pass $ 60,834 $ 91,375 $ 14,995 $ 4,598 $ 3,974 $ 5,240 $ 181,016 Total Foreign $ 60,834 $ 91,375 $ 14,995 $ 4,598 $ 3,974 $ 5,240 $ 181,016 Foreign Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — Total Loans $ 1,925,932 $ 2,284,653 $ 1,558,724 $ 734,661 $ 449,575 $ 619,532 $ 7,573,077 2022 2021 2020 2019 2018 Prior Total (Dollars in Thousands) Balance at December 31, 2022 Domestic Commercial Pass $ 736,462 $ 524,879 $ 96,401 $ 35,917 $ 43,792 $ 29,464 $ 1,466,915 Special Review 377 213 — — — — 590 Watch List - Substandard 161 149 143 — 49 — 502 Watch List - Doubtful 29,789 — 954 — — 4 30,747 Total Commercial $ 766,789 $ 525,241 $ 97,498 $ 35,917 $ 43,841 $ 29,468 $ 1,498,754 Commercial Commercial real estate: other construction & land development Pass $ 913,675 $ 666,347 $ 173,824 $ 174,897 $ 35,069 $ 5,165 $ 1,968,977 Special Review — — — 209 — — 209 Watch List - Doubtful 19,982 407 94 — — — 20,483 Total Commercial real estate: other construction & land development $ 933,657 $ 666,754 $ 173,918 $ 175,106 $ 35,069 $ 5,165 $ 1,989,669 Commercial real estate: farmland & commercial Pass $ 811,117 $ 584,134 $ 456,200 $ 232,537 $ 325,214 $ 81,295 $ 2,490,497 Special Review 2,855 — 842 — — — 3,697 Watch List - Pass 17,060 247 — — — — 17,307 Watch List - Substandard 2,275 — 54,152 96 — — 56,523 Watch List - Doubtful 94 — — — — — 94 Total Commercial real estate: farmland & commercial $ 833,401 $ 584,381 $ 511,194 $ 232,633 $ 325,214 $ 81,295 $ 2,568,118 Commercial real estate: multifamily Pass $ 127,680 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,384 Watch List - Doubtful 117 — — — — — 117 Total Commercial real estate: multifamily $ 127,797 $ 87,469 $ 59,035 $ 12,026 $ 5,490 $ 14,684 $ 306,501 Residential: first lien Pass $ 138,771 $ 82,466 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,287 Watch List - Substandard — 360 — — — — 360 Watch List - Doubtful 77 — — — — — 77 Total Residential: first lien $ 138,848 $ 82,826 $ 49,591 $ 40,985 $ 33,814 $ 79,660 $ 425,724 Residential: junior lien Pass $ 92,256 $ 108,815 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 439,958 Watch List- Doubtful — 312 — — — — 312 Total Residential: junior lien $ 92,256 $ 109,127 $ 91,130 $ 41,273 $ 21,975 $ 84,509 $ 440,270 Consumer Pass $ 31,962 $ 6,603 $ 897 $ 489 $ 28 $ 1,613 $ 41,592 Total Consumer $ 31,962 $ 6,603 $ 897 $ 489 $ 28 $ 1,613 $ 41,592 Foreign Pass $ 124,265 $ 19,082 $ 5,362 $ 4,848 $ 3,417 $ 3,001 $ 159,975 Total Foreign $ 124,265 $ 19,082 $ 5,362 $ 4,848 $ 3,417 $ 3,001 $ 159,975 Total Loans $ 3,048,975 $ 2,081,483 $ 988,625 $ 543,277 $ 468,848 $ 299,395 $ 7,430,603 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stock Options | |
Summary of option activity under stock option plans | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2022 461,822 $ 29.67 Plus: Options granted — — Less: Options exercised (11,187) 26.27 Options expired — — Options forfeited (5,188) 37.38 Options outstanding at June 30, 2023 445,447 29.67 3.58 $ 6,474 Options fully vested and exercisable at June 30, 2023 286,044 $ 26.75 2.17 $ 4,992 |
Summary of activity under the SAR Plan | Weighted Weighted average Number of average remaining Aggregate stock appreciation exercise contractual intrinsic rights price term (years) value ($) (in Thousands) Stock appreciation rights outstanding at December 31, 2022 489,250 $ 39.35 Plus: Stock appreciation rights granted Less: Stock appreciation rights exercised — — Stock appreciation rights expired — — Stock appreciation rights forfeited (12,250) 39.33 Stock appreciation rights outstanding at June 30, 2023 477,000 39.35 9.50 $ 2,313 Stock appreciation rights fully vested and exercisable at June 30, 2023 — $ — |
Investment Securities, Equity_2
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | |
Amortized cost and estimated fair value by type of investment security | The amortized cost and estimated fair value by type of investment security at June 30, 2023 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 5,123,159 $ 1,237 $ (616,284) $ 4,508,112 $ 4,508,112 Obligations of states and political subdivisions 162,830 892 (1,987) 161,735 161,735 Total investment securities $ 5,285,989 $ 2,129 $ (618,271) $ 4,669,847 $ 4,669,847 (1) Included in the carrying value of residential mortgage-backed securities are $827,045 of mortgage-backed securities issued by Ginnie Mae and $3,681,067 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2022 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Total investment securities $ 3,400 $ — $ — $ 3,400 $ 3,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) U.S. Treasury securities $ 49,752 $ — $ (359) $ 49,393 $ 49,393 Residential mortgage-backed securities 4,805,735 3,145 (599,668) 4,209,212 4,209,212 Obligations of states and political subdivisions 163,509 927 (5,245) 159,191 159,191 Total investment securities $ 5,018,996 $ 4,072 $ (605,272) $ 4,417,796 $ 4,417,796 (1) Included in the carrying value of residential mortgage-backed securities are $681,121 of mortgage-backed securities issued by Ginnie Mae and $3,528,091 of mortgage-backed securities issued by Fannie Mae and Freddie. |
Amortized cost and fair value of investment securities, by contractual maturity | Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 2,075 $ 2,075 $ — $ — Due after one year through five years 1,325 1,325 — — Due after five years through ten years — — 440 440 Due after ten years — — 162,390 161,295 Residential mortgage-backed securities — — 5,123,159 4,508,112 Total investment securities $ 3,400 $ 3,400 $ 5,285,989 $ 4,669,847 |
Summary of unrealized and realized gains and losses recognized in net income on equity securities | Three Months Ended June 30, 2023 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (92) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (92) Three Months Ended June 30, 2022 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (229) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (229) Six Months Ended June 30, 2023 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (58) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (58) Six Months Ended June 30, 2022 (Dollars in Thousands) Net losses recognized during the period on equity securities $ (498) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (498) |
Junior Subordinated Interest _2
Junior Subordinated Interest Deferrable Debentures (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Junior Subordinated Interest Deferrable Debentures | |
Junior subordinated interest deferrable debentures, major types of business trusts | Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1)(2) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust IX $ 41,238 Quarterly 6.80 % LIBOR + 1.62 October 2036 October 2011 Trust X 21,021 Quarterly 6.95 % LIBOR + 1.65 February 2037 February 2012 Trust XI 25,990 Quarterly 6.80 % LIBOR + 1.62 July 2037 July 2012 Trust XII 20,619 Quarterly 6.95 % LIBOR + 1.45 September 2037 September 2012 $ 108,868 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date. (2) The interest rate index on the Capital and Common Securities transitioned to the Secured Overnight Financing Rate (“SOFR”) effective July 1, 2023. |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended | ||
Jul. 25, 2023 $ / shares | Jun. 30, 2023 segment subsidiary $ / shares | Jun. 30, 2022 $ / shares | |
Basis of presentation | |||
Number of operating segments | segment | 1 | ||
Number of active operating bank subsidiaries | subsidiary | 5 | ||
Cash Dividends (in dollars per share) | $ 0.63 | $ 0.60 | |
Subsequent Event | |||
Basis of presentation | |||
Cash Dividends (in dollars per share) | $ 0.63 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value By Level) (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Available for sale debt securities | $ 4,669,847,000 | $ 4,417,796,000 |
Equity Securities | 5,300,000 | 5,358,000 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Available for sale debt securities | 4,669,847,000 | 4,417,796,000 |
Estimate of Fair Value Measurement | US Treasury Securities | ||
Assets: | ||
Available for sale debt securities | 49,393,000 | |
Estimate of Fair Value Measurement | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 4,508,112,000 | 4,209,212,000 |
Estimate of Fair Value Measurement | States and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 161,735,000 | 159,191,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | ||
Assets: | ||
Equity Securities | 5,300,000 | 5,358,000 |
Marketable Securities | 4,675,147,000 | 4,423,154,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | US Treasury Securities | ||
Assets: | ||
Available for sale debt securities | 49,393,000 | |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 4,508,112,000 | 4,209,212,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | States and political subdivisions | ||
Assets: | ||
Available for sale debt securities | 161,735,000 | 159,191,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Assets: | ||
Equity Securities | 5,300,000 | 5,358,000 |
Marketable Securities | 5,300,000 | 5,358,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Marketable Securities | 4,669,847,000 | 4,417,796,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | US Treasury Securities | ||
Assets: | ||
Available for sale debt securities | 49,393,000 | |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | Residential mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities | 4,508,112,000 | 4,209,212,000 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | States and political subdivisions | ||
Assets: | ||
Available for sale debt securities | $ 161,735,000 | $ 159,191,000 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurement and Assumptions) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Doubtful and Impaired commercial collateral dependent loans | $ 41,653,000 | $ 41,653,000 | $ 51,326,000 |
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months | 0 | 0 | 0 |
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months | 40,224,000 | 40,224,000 | 51,326,000 |
Charges to allowance for probable loan losses in connection with other real estate owned | 0 | 0 | 2,000 |
Adjustment to fair value in connection with other real estate owned | 47,000 | 250,000 | 1,627,000 |
Fair Value, Measurements, Nonrecurring | |||
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3 | |||
Change in net provision, impaired loans | 1,010,000 | 1,010,000 | 2,346,000 |
Change in net provision, other real estate owned | 297,000 | 297,000 | 1,627,000 |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | |||
Assets: | |||
Watch-List doubtful loans | 29,763,000 | 29,763,000 | 30,743,000 |
Non-financial assets: | |||
Other real estate owned | 899,000 | 899,000 | 5,653,000 |
Fair Value, Measurements, Nonrecurring | Estimated Fair Value | Fair Value, Inputs, Level 3 | |||
Assets: | |||
Watch-List doubtful loans | 29,763,000 | 29,763,000 | 30,743,000 |
Non-financial assets: | |||
Other real estate owned | $ 899,000 | $ 899,000 | $ 5,653,000 |
Fair Value Measurements (Other
Fair Value Measurements (Other Assumptions) (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits | ||
Carrying amount of time deposits | $ 2,291,951,000 | $ 2,068,184,000 |
Fair Value, Inputs, Level 3 | ||
Loans | ||
Carrying amount of fixed rate performing loans | 1,179,615,000 | 1,203,381,000 |
Estimated fair value of fixed rate performing loans | 1,077,069,000 | 1,100,848,000 |
Deposits | ||
Carrying amount of time deposits | 2,291,951,000 | 2,068,184,000 |
Estimated fair value of time deposits | 2,297,750,000 | 2,076,231,000 |
Fair Value, Inputs, Level 2 | ||
Other borrowed funds | ||
Carrying amount of the long-term FHLB borrowings | 10,845,000 | 10,944,000 |
Estimated fair value of long-term FHLB borrowings | $ 10,845,000 | $ 10,944,000 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Summary of loans, by loan type | ||
Total loans | $ 7,573,077 | $ 7,430,603 |
Commercial, financial and agricultural | ||
Summary of loans, by loan type | ||
Total loans | 4,280,036 | 4,373,373 |
Real estate - mortgage | ||
Summary of loans, by loan type | ||
Total loans | 866,427 | 865,994 |
Obligations of states and political subdivisions | ||
Summary of loans, by loan type | ||
Total loans | 2,202,187 | 1,989,669 |
Consumer | ||
Summary of loans, by loan type | ||
Total loans | 43,411 | 41,592 |
Foreign. | ||
Summary of loans, by loan type | ||
Total loans | $ 181,016 | $ 159,975 |
Allowance for Credit Losses (By
Allowance for Credit Losses (By Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | $ 133,557 | $ 110,227 | $ 125,972 | $ 110,374 |
Losses charged to allowance | (2,982) | (2,092) | (5,015) | (4,421) |
Recoveries credited to allowance | 1,112 | 702 | 2,143 | 1,403 |
Net (losses) recoveries charged to allowance | (1,870) | (1,390) | (2,872) | (3,018) |
Credit loss expense | 8,816 | 3,735 | 17,403 | 5,216 |
Balance at the end of the period | 140,503 | 112,572 | 140,503 | 112,572 |
Commercial, financial and agricultural | Domestic | Commercial. | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 27,788 | 23,901 | 26,728 | 23,178 |
Losses charged to allowance | (2,792) | (2,001) | (4,763) | (4,113) |
Recoveries credited to allowance | 556 | 508 | 1,181 | 1,110 |
Net (losses) recoveries charged to allowance | (2,236) | (1,493) | (3,582) | (3,003) |
Credit loss expense | 2,093 | 3,169 | 4,499 | 5,402 |
Balance at the end of the period | 27,645 | 25,577 | 27,645 | 25,577 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 36,556 | 34,854 | 36,474 | 35,654 |
Recoveries credited to allowance | 6 | 6 | 11 | 14 |
Net (losses) recoveries charged to allowance | 6 | 6 | 11 | 14 |
Credit loss expense | 2,126 | 410 | 2,203 | (398) |
Balance at the end of the period | 38,688 | 35,270 | 38,688 | 35,270 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 3,984 | 3,062 | 3,794 | 3,291 |
Credit loss expense | 122 | (206) | 312 | (435) |
Balance at the end of the period | 4,106 | 2,856 | 4,106 | 2,856 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 50,933 | 36,372 | 44,684 | 35,390 |
Losses charged to allowance | (2) | |||
Recoveries credited to allowance | 526 | 1 | 837 | 3 |
Net (losses) recoveries charged to allowance | 526 | 1 | 837 | 1 |
Credit loss expense | 1,605 | 340 | 7,543 | 1,322 |
Balance at the end of the period | 53,064 | 36,713 | 53,064 | 36,713 |
Real estate - mortgage | Domestic | Residential: first lien | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 4,559 | 4,016 | 4,759 | 4,073 |
Losses charged to allowance | (57) | (156) | ||
Recoveries credited to allowance | 1 | 168 | 8 | 198 |
Net (losses) recoveries charged to allowance | 1 | 111 | 8 | 42 |
Credit loss expense | 532 | 10 | 325 | 22 |
Balance at the end of the period | 5,092 | 4,137 | 5,092 | 4,137 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 8,357 | 7,046 | 8,284 | 7,754 |
Losses charged to allowance | (164) | (165) | (28) | |
Recoveries credited to allowance | 15 | 14 | 92 | 62 |
Net (losses) recoveries charged to allowance | (149) | 14 | (73) | 34 |
Credit loss expense | 2,234 | (166) | 2,231 | (894) |
Balance at the end of the period | 10,442 | 6,894 | 10,442 | 6,894 |
Consumer | Domestic | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 291 | 264 | 281 | 272 |
Losses charged to allowance | (26) | (34) | (87) | (122) |
Recoveries credited to allowance | 8 | 5 | 14 | 16 |
Net (losses) recoveries charged to allowance | (18) | (29) | (73) | (106) |
Credit loss expense | 13 | 35 | 78 | 104 |
Balance at the end of the period | 286 | 270 | 286 | 270 |
Foreign. | Foreign | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at the beginning of the period | 1,089 | 712 | 968 | 762 |
Credit loss expense | 91 | 143 | 212 | 93 |
Balance at the end of the period | $ 1,180 | $ 855 | $ 1,180 | $ 855 |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | $ 42,268 | $ 51,830 |
Loans Individually Evaluated for Impairment, Allowance | 3,080 | 2,445 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 7,530,809 | 7,378,773 |
Loans Collectively Evaluated for Impairment, Allowance | 137,423 | 123,527 |
Commercial, financial and agricultural | Domestic | Commercial. | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 31,312 | 30,747 |
Loans Individually Evaluated for Impairment, Allowance | 3,010 | 2,375 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 1,421,885 | 1,468,006 |
Loans Collectively Evaluated for Impairment, Allowance | 24,635 | 24,353 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 287 | 94 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,518,383 | 2,568,025 |
Loans Collectively Evaluated for Impairment, Allowance | 38,688 | 36,474 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 108 | 117 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 308,061 | 306,384 |
Loans Collectively Evaluated for Impairment, Allowance | 4,106 | 3,794 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 10,173 | 20,483 |
Loans Individually Evaluated for Impairment, Allowance | 70 | 70 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 2,192,014 | 1,969,186 |
Loans Collectively Evaluated for Impairment, Allowance | 52,994 | 44,614 |
Real estate - mortgage | Domestic | Residential: first lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 70 | 77 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 418,831 | 425,647 |
Loans Collectively Evaluated for Impairment, Allowance | 5,092 | 4,759 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Individually Evaluated for Impairment, Recorded Investment | 318 | 312 |
Loans Collectively Evaluated for Impairment, Recorded Investment | 447,208 | 439,958 |
Loans Collectively Evaluated for Impairment, Allowance | 10,442 | 8,284 |
Consumer | Domestic | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Collectively Evaluated for Impairment, Recorded Investment | 43,411 | 41,592 |
Loans Collectively Evaluated for Impairment, Allowance | 286 | 281 |
Foreign. | Foreign | ||
Loan loss allowances, impaired financing receivable, evaluated individually or collectively | ||
Loans Collectively Evaluated for Impairment, Recorded Investment | 181,016 | 159,975 |
Loans Collectively Evaluated for Impairment, Allowance | $ 1,180 | $ 968 |
Allowance for Credit Losses (No
Allowance for Credit Losses (Non-accrual Basis By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | $ 42,083 | $ 51,648 |
Commercial, financial and agricultural | Domestic | Commercial. | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 31,312 | 30,747 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 287 | 94 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 108 | 117 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | 10,173 | 20,483 |
Real estate - mortgage | Domestic | Residential: first lien | ||
Loan loss allowances, financing receivable past due | ||
Non-accrual loans, total | $ 203 | $ 207 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Impaired Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Loan loss allowances | ||
Total troubled debt restructuring | $ 3,213 | |
Period of charge off for past due unsecured commercial loans | 90 days | |
Real estate - mortgage | Domestic | Residential: first lien | ||
Loan loss allowances | ||
Total troubled debt restructuring | 1,642 | |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Loan loss allowances | ||
Total troubled debt restructuring | 714 | |
Consumer | Domestic | ||
Loan loss allowances | ||
Total troubled debt restructuring | 802 | |
Foreign. | Foreign | ||
Loan loss allowances | ||
Total troubled debt restructuring | $ 55 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Aging By Loan Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | $ 4,413 | $ 6,132 |
Loans | 7,573,077 | 7,430,603 |
Current | ||
Financing receivable recorded investment | ||
Loans | 7,504,603 | 7,412,585 |
Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 68,474 | 18,018 |
30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 20,951 | 8,552 |
60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 3,092 | 2,251 |
90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | 44,431 | 7,215 |
Commercial, financial and agricultural | ||
Financing receivable recorded investment | ||
Loans | 4,280,036 | 4,373,373 |
Commercial, financial and agricultural | Domestic | Commercial. | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 167 | 59 |
Loans | 1,453,197 | 1,498,754 |
Commercial, financial and agricultural | Domestic | Commercial. | Current | ||
Financing receivable recorded investment | ||
Loans | 1,407,227 | 1,495,750 |
Commercial, financial and agricultural | Domestic | Commercial. | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 45,970 | 3,004 |
Commercial, financial and agricultural | Domestic | Commercial. | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 14,411 | 1,732 |
Commercial, financial and agricultural | Domestic | Commercial. | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 1,584 | 258 |
Commercial, financial and agricultural | Domestic | Commercial. | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | 29,975 | 1,014 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | ||
Financing receivable recorded investment | ||
Loans | 2,518,670 | 2,568,118 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Current | ||
Financing receivable recorded investment | ||
Loans | 2,517,925 | 2,566,257 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 745 | 1,861 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 745 | 1,744 |
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 117 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | ||
Financing receivable recorded investment | ||
Loans | 308,169 | 306,501 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Current | ||
Financing receivable recorded investment | ||
Loans | 308,016 | 306,501 |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 153 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 45 | |
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 108 | |
Obligations of states and political subdivisions | ||
Financing receivable recorded investment | ||
Loans | 2,202,187 | 1,989,669 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | ||
Financing receivable recorded investment | ||
Loans | 2,202,187 | 1,989,669 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Current | ||
Financing receivable recorded investment | ||
Loans | 2,191,375 | 1,988,539 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 10,812 | 1,130 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 629 | 1,130 |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 98 | |
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | 10,085 | |
Real estate - mortgage | ||
Financing receivable recorded investment | ||
Loans | 866,427 | 865,994 |
Real estate - mortgage | Domestic | Residential: first lien | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 2,588 | 4,061 |
Loans | 418,902 | 425,724 |
Real estate - mortgage | Domestic | Residential: first lien | Current | ||
Financing receivable recorded investment | ||
Loans | 412,093 | 418,444 |
Real estate - mortgage | Domestic | Residential: first lien | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 6,809 | 7,280 |
Real estate - mortgage | Domestic | Residential: first lien | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 3,338 | 2,023 |
Real estate - mortgage | Domestic | Residential: first lien | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 758 | 1,068 |
Real estate - mortgage | Domestic | Residential: first lien | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | 2,713 | 4,189 |
Real estate - mortgage | Domestic | Residential Junior Lien | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 1,278 | 1,717 |
Loans | 447,525 | 440,270 |
Real estate - mortgage | Domestic | Residential Junior Lien | Current | ||
Financing receivable recorded investment | ||
Loans | 444,604 | 436,857 |
Real estate - mortgage | Domestic | Residential Junior Lien | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 2,921 | 3,413 |
Real estate - mortgage | Domestic | Residential Junior Lien | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 1,344 | 925 |
Real estate - mortgage | Domestic | Residential Junior Lien | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 299 | 771 |
Real estate - mortgage | Domestic | Residential Junior Lien | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | 1,278 | 1,717 |
Consumer | ||
Financing receivable recorded investment | ||
Loans | 43,411 | 41,592 |
Consumer | Domestic | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 6 | 7 |
Loans | 43,411 | 41,592 |
Consumer | Domestic | Current | ||
Financing receivable recorded investment | ||
Loans | 43,131 | 41,290 |
Consumer | Domestic | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 280 | 302 |
Consumer | Domestic | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 255 | 281 |
Consumer | Domestic | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 19 | 14 |
Consumer | Domestic | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | 6 | 7 |
Foreign. | ||
Financing receivable recorded investment | ||
Loans | 181,016 | 159,975 |
Foreign. | Foreign | ||
Financing receivable recorded investment | ||
Past due 90 days or Greater and Still Accruing | 374 | 288 |
Loans | 181,016 | 159,975 |
Foreign. | Foreign | Current | ||
Financing receivable recorded investment | ||
Loans | 180,232 | 158,947 |
Foreign. | Foreign | Total Past Due | ||
Financing receivable recorded investment | ||
Loans | 784 | 1,028 |
Foreign. | Foreign | 30 to 59 Days | ||
Financing receivable recorded investment | ||
Loans | 184 | 717 |
Foreign. | Foreign | 60 to 89 Days | ||
Financing receivable recorded investment | ||
Loans | 226 | 23 |
Foreign. | Foreign | 90 Days or Greater | ||
Financing receivable recorded investment | ||
Loans | $ 374 | $ 288 |
Allowance for Credit Losses (Po
Allowance for Credit Losses (Portfolio Credit Quality) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Loan portfolio by credit quality indicator | |||||
2023 | $ 1,925,932 | $ 1,925,932 | |||
2022 | 2,284,653 | 2,284,653 | $ 3,048,975 | ||
2021 | 1,558,724 | 1,558,724 | 2,081,483 | ||
2020 | 734,661 | 734,661 | 988,625 | ||
2019 | 449,575 | 449,575 | 543,277 | ||
2018/Prior | 619,532 | 619,532 | 468,848 | ||
Prior | 299,395 | ||||
Total loans | 7,573,077 | 7,573,077 | 7,430,603 | ||
Current-period gross writeoffs | |||||
Total | 2,982 | $ 2,092 | 5,015 | $ 4,421 | |
Commercial, financial and agricultural | |||||
Loan portfolio by credit quality indicator | |||||
Total loans | 4,280,036 | 4,280,036 | 4,373,373 | ||
Commercial, financial and agricultural | Domestic | Commercial. | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 413,761 | 413,761 | |||
2022 | 465,706 | 465,706 | 766,789 | ||
2021 | 423,811 | 423,811 | 525,241 | ||
2020 | 58,607 | 58,607 | 97,498 | ||
2019 | 25,499 | 25,499 | 35,917 | ||
2018/Prior | 65,813 | 65,813 | 43,841 | ||
Prior | 29,468 | ||||
Total loans | 1,453,197 | 1,453,197 | 1,498,754 | ||
Current-period gross writeoffs | |||||
2023 | 2,443 | ||||
2022 | 2,045 | ||||
2021 | 9 | ||||
2020 | 264 | ||||
Prior | 2 | ||||
Total | 2,792 | 2,001 | 4,763 | 4,113 | |
Commercial, financial and agricultural | Domestic | Commercial. | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 389,737 | 389,737 | |||
2022 | 432,583 | 432,583 | 736,462 | ||
2021 | 423,509 | 423,509 | 524,879 | ||
2020 | 58,607 | 58,607 | 96,401 | ||
2019 | 25,484 | 25,484 | 35,917 | ||
2018/Prior | 65,813 | 65,813 | 43,792 | ||
Prior | 29,464 | ||||
Total loans | 1,395,733 | 1,395,733 | 1,466,915 | ||
Commercial, financial and agricultural | Domestic | Commercial. | Special Review | |||||
Loan portfolio by credit quality indicator | |||||
2022 | 300 | 300 | 377 | ||
2021 | 189 | 189 | 213 | ||
Total loans | 489 | 489 | 590 | ||
Commercial, financial and agricultural | Domestic | Commercial. | Watch List - Substandard | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 23,992 | 23,992 | |||
2022 | 1,543 | 1,543 | 161 | ||
2021 | 113 | 113 | 149 | ||
2020 | 143 | ||||
2019 | 15 | 15 | |||
2018/Prior | 49 | ||||
Total loans | 25,663 | 25,663 | 502 | ||
Commercial, financial and agricultural | Domestic | Commercial. | Watch List - Doubtful | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 32 | 32 | |||
2022 | 31,280 | 31,280 | 29,789 | ||
2020 | 954 | ||||
Prior | 4 | ||||
Total loans | 31,312 | 31,312 | 30,747 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 570,512 | 570,512 | |||
2022 | 684,110 | 684,110 | 833,401 | ||
2021 | 418,308 | 418,308 | 584,381 | ||
2020 | 320,981 | 320,981 | 511,194 | ||
2019 | 210,677 | 210,677 | 232,633 | ||
2018/Prior | 314,082 | 314,082 | 325,214 | ||
Prior | 81,295 | ||||
Total loans | 2,518,670 | 2,518,670 | 2,568,118 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 427,809 | 427,809 | |||
2022 | 681,701 | 681,701 | 811,117 | ||
2021 | 418,069 | 418,069 | 584,134 | ||
2020 | 317,679 | 317,679 | 456,200 | ||
2019 | 210,586 | 210,586 | 232,537 | ||
2018/Prior | 314,081 | 314,081 | 325,214 | ||
Prior | 81,295 | ||||
Total loans | 2,369,925 | 2,369,925 | 2,490,497 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Special Review | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 69,450 | 69,450 | |||
2022 | 2,855 | ||||
2020 | 829 | 829 | 842 | ||
Total loans | 70,279 | 70,279 | 3,697 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Watch List - Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 16,722 | 16,722 | |||
2022 | 88 | 88 | 17,060 | ||
2021 | 239 | 239 | 247 | ||
Total loans | 17,049 | 17,049 | 17,307 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Watch List - Substandard | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 56,333 | 56,333 | |||
2022 | 2,232 | 2,232 | 2,275 | ||
2020 | 2,473 | 2,473 | 54,152 | ||
2019 | 91 | 91 | 96 | ||
2018/Prior | 1 | 1 | |||
Total loans | 61,130 | 61,130 | 56,523 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: farmland & commercial | Watch List - Doubtful | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 198 | 198 | |||
2022 | 89 | 89 | 94 | ||
Total loans | 287 | 287 | 94 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 54,095 | 54,095 | |||
2022 | 123,940 | 123,940 | 127,797 | ||
2021 | 43,201 | 43,201 | 87,469 | ||
2020 | 58,737 | 58,737 | 59,035 | ||
2019 | 11,321 | 11,321 | 12,026 | ||
2018/Prior | 16,875 | 16,875 | 5,490 | ||
Prior | 14,684 | ||||
Total loans | 308,169 | 308,169 | 306,501 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 54,095 | 54,095 | |||
2022 | 123,832 | 123,832 | 127,680 | ||
2021 | 43,201 | 43,201 | 87,469 | ||
2020 | 58,737 | 58,737 | 59,035 | ||
2019 | 11,321 | 11,321 | 12,026 | ||
2018/Prior | 16,875 | 16,875 | 5,490 | ||
Prior | 14,684 | ||||
Total loans | 308,061 | 308,061 | 306,384 | ||
Commercial, financial and agricultural | Domestic | Commercial real estate: multifamily | Watch List - Doubtful | |||||
Loan portfolio by credit quality indicator | |||||
2022 | 108 | 108 | 117 | ||
Total loans | 108 | 108 | 117 | ||
Obligations of states and political subdivisions | |||||
Loan portfolio by credit quality indicator | |||||
Total loans | 2,202,187 | 2,202,187 | 1,989,669 | ||
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 670,519 | 670,519 | |||
2022 | 725,690 | 725,690 | 933,657 | ||
2021 | 479,217 | 479,217 | 666,754 | ||
2020 | 166,136 | 166,136 | 173,918 | ||
2019 | 129,626 | 129,626 | 175,106 | ||
2018/Prior | 30,999 | 30,999 | 35,069 | ||
Prior | 5,165 | ||||
Total loans | 2,202,187 | 2,202,187 | 1,989,669 | ||
Current-period gross writeoffs | |||||
Total | 2 | ||||
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 650,337 | 650,337 | |||
2022 | 713,105 | 713,105 | 913,675 | ||
2021 | 479,217 | 479,217 | 666,347 | ||
2020 | 166,136 | 166,136 | 173,824 | ||
2019 | 129,419 | 129,419 | 174,897 | ||
2018/Prior | 30,999 | 30,999 | 35,069 | ||
Prior | 5,165 | ||||
Total loans | 2,169,213 | 2,169,213 | 1,968,977 | ||
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Special Review | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 20,094 | 20,094 | |||
2022 | 2,500 | 2,500 | |||
2019 | 207 | 207 | 209 | ||
Total loans | 22,801 | 22,801 | 209 | ||
Obligations of states and political subdivisions | Domestic | Commercial Real Estate: other construction and land development | Watch List - Doubtful | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 88 | 88 | |||
2022 | 10,085 | 10,085 | 19,982 | ||
2021 | 407 | ||||
2020 | 94 | ||||
Total loans | 10,173 | 10,173 | 20,483 | ||
Real estate - mortgage | |||||
Loan portfolio by credit quality indicator | |||||
Total loans | 866,427 | 866,427 | 865,994 | ||
Real estate - mortgage | Domestic | Residential: first lien | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 93,380 | 93,380 | |||
2022 | 91,473 | 91,473 | 138,848 | ||
2021 | 72,612 | 72,612 | 82,826 | ||
2020 | 43,195 | 43,195 | 49,591 | ||
2019 | 30,667 | 30,667 | 40,985 | ||
2018/Prior | 87,575 | 87,575 | 33,814 | ||
Prior | 79,660 | ||||
Total loans | 418,902 | 418,902 | 425,724 | ||
Current-period gross writeoffs | |||||
Total | 57 | 156 | |||
Real estate - mortgage | Domestic | Residential: first lien | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 93,380 | 93,380 | |||
2022 | 91,403 | 91,403 | 138,771 | ||
2021 | 72,269 | 72,269 | 82,466 | ||
2020 | 43,195 | 43,195 | 49,591 | ||
2019 | 30,667 | 30,667 | 40,985 | ||
2018/Prior | 87,575 | 87,575 | 33,814 | ||
Prior | 79,660 | ||||
Total loans | 418,489 | 418,489 | 425,287 | ||
Real estate - mortgage | Domestic | Residential: first lien | Watch List - Substandard | |||||
Loan portfolio by credit quality indicator | |||||
2021 | 343 | 343 | 360 | ||
Total loans | 343 | 343 | 360 | ||
Real estate - mortgage | Domestic | Residential: first lien | Watch List - Doubtful | |||||
Loan portfolio by credit quality indicator | |||||
2022 | 70 | 70 | 77 | ||
Total loans | 70 | 70 | 77 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 40,647 | 40,647 | |||
2022 | 86,506 | 86,506 | 92,256 | ||
2021 | 103,393 | 103,393 | 109,127 | ||
2020 | 81,966 | 81,966 | 91,130 | ||
2019 | 37,583 | 37,583 | 41,273 | ||
2018/Prior | 97,430 | 97,430 | 21,975 | ||
Prior | 84,509 | ||||
Total loans | 447,525 | 447,525 | 440,270 | ||
Current-period gross writeoffs | |||||
Prior | 165 | ||||
Total | 164 | 165 | 28 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 40,329 | 40,329 | |||
2022 | 86,506 | 86,506 | 92,256 | ||
2021 | 103,393 | 103,393 | 108,815 | ||
2020 | 81,966 | 81,966 | 91,130 | ||
2019 | 37,583 | 37,583 | 41,273 | ||
2018/Prior | 97,430 | 97,430 | 21,975 | ||
Prior | 84,509 | ||||
Total loans | 447,207 | 447,207 | 439,958 | ||
Real estate - mortgage | Domestic | Residential Junior Lien | Watch List - Doubtful | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 318 | 318 | |||
2021 | 312 | ||||
Total loans | 318 | 318 | 312 | ||
Consumer | |||||
Loan portfolio by credit quality indicator | |||||
Total loans | 43,411 | 43,411 | 41,592 | ||
Consumer | Domestic | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 22,184 | 22,184 | |||
2022 | 15,853 | 15,853 | 31,962 | ||
2021 | 3,187 | 3,187 | 6,603 | ||
2020 | 441 | 441 | 897 | ||
2019 | 228 | 228 | 489 | ||
2018/Prior | 1,518 | 1,518 | 28 | ||
Prior | 1,613 | ||||
Total loans | 43,411 | 43,411 | 41,592 | ||
Current-period gross writeoffs | |||||
2023 | 9 | ||||
2022 | 73 | ||||
2021 | 4 | ||||
Prior | 1 | ||||
Total | 26 | $ 34 | 87 | $ 122 | |
Consumer | Domestic | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 22,184 | 22,184 | |||
2022 | 15,853 | 15,853 | 31,962 | ||
2021 | 3,187 | 3,187 | 6,603 | ||
2020 | 441 | 441 | 897 | ||
2019 | 228 | 228 | 489 | ||
2018/Prior | 1,518 | 1,518 | 28 | ||
Prior | 1,613 | ||||
Total loans | 43,411 | 43,411 | 41,592 | ||
Foreign. | |||||
Loan portfolio by credit quality indicator | |||||
Total loans | 181,016 | 181,016 | 159,975 | ||
Foreign. | Foreign | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 60,834 | 60,834 | |||
2022 | 91,375 | 91,375 | 124,265 | ||
2021 | 14,995 | 14,995 | 19,082 | ||
2020 | 4,598 | 4,598 | 5,362 | ||
2019 | 3,974 | 3,974 | 4,848 | ||
2018/Prior | 5,240 | 5,240 | 3,417 | ||
Prior | 3,001 | ||||
Total loans | 181,016 | 181,016 | 159,975 | ||
Foreign. | Foreign | Pass | |||||
Loan portfolio by credit quality indicator | |||||
2023 | 60,834 | 60,834 | |||
2022 | 91,375 | 91,375 | 124,265 | ||
2021 | 14,995 | 14,995 | 19,082 | ||
2020 | 4,598 | 4,598 | 5,362 | ||
2019 | 3,974 | 3,974 | 4,848 | ||
2018/Prior | 5,240 | 5,240 | 3,417 | ||
Prior | 3,001 | ||||
Total loans | $ 181,016 | $ 181,016 | $ 159,975 |
Stock Options - Options (Detail
Stock Options - Options (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Apr. 05, 2012 | |
Employee Stock Option | |||||
Stock Options, Aggregate intrinsic value | |||||
Stock-based compensation expense | $ 77,000 | $ 108,000 | $ 179,000 | $ 229,000 | |
Employee Stock Option | 2012 Plan | |||||
Stock option details | |||||
Shares available for future grants | 800,000 | ||||
Maximum exercisable period for granted share-based compensation | 10 years | ||||
Stock option activity | |||||
Options outstanding at the beginning of the period (in shares) | 461,822 | ||||
Less: | |||||
Options exercised (in shares) | (11,187) | ||||
Options forfeited (in shares) | (5,188) | ||||
Options outstanding at the end of the period (in shares) | 445,447 | 445,447 | |||
Options fully vested and exercisable at the end of the period (in shares) | 286,044 | 286,044 | |||
Stock Options, Weighted average exercise price | |||||
Options outstanding at the beginning, weighted average exercise price (in dollars per share) | $ 29.67 | ||||
Less: | |||||
Options exercised, weighted average exercise price (in dollars per share) | 26.27 | ||||
Options forfeited, weighted average exercise price (in dollars per share) | 37.38 | ||||
Options outstanding at the end, weighted average exercise price (in dollars per share) | $ 29.67 | 29.67 | |||
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share) | $ 26.75 | $ 26.75 | |||
Stock Options, Weighted average remaining contractual term (years) | |||||
Options outstanding at the end, weighted average remaining contractual term (years) | 3 years 6 months 29 days | ||||
Options fully vested and exercisable at the end, weighted average remaining contractual term (years) | 2 years 2 months 1 day | ||||
Stock Options, Aggregate intrinsic value | |||||
Options outstanding at the end, aggregate intrinsic value | $ 6,474,000 | $ 6,474,000 | |||
Options fully vested and exercisable at the end, aggregate intrinsic value | 4,992,000 | 4,992,000 | |||
Stock-based compensation cost, unrecognized | $ 583,000 | $ 583,000 | |||
Stock-based compensation cost, unrecognized, weighted-average period of recognition | 1 year 7 months 6 days | ||||
Incentive Stock Options to 10 Percent Shareholders | 2012 Plan | |||||
Stock option details | |||||
Maximum exercisable period for granted share-based compensation | 5 years |
Stock Options - SARs (Details)
Stock Options - SARs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Apr. 18, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | |
SARs | |||
Outstanding beginning balance | 489,250 | ||
Forfeited | (12,250) | ||
Outstanding ending balance | 477,000 | 477,000 | |
Weighted average exercise price | |||
Weighted average exercise price, beginning balance (per share) | $ 39.35 | ||
Weighted average exercise price, forfeited (per share) | 39.33 | ||
Weighted average exercise price, ending balance (per share) | $ 39.35 | $ 39.35 | |
Aggregate intrinsic value | |||
Aggregate intrinsic value | $ 2,313,000 | $ 2,313,000 | |
Weighted average remaining contractual term (years) | 9 years 6 months | ||
Stock Appreciation Rights (SARs) | |||
Aggregate intrinsic value | |||
Fair Value of Liability | 976,000 | $ 976,000 | |
Stock-based compensation expense | 264,000 | 166,000 | |
Stock-based compensation cost, unrecognized | $ 5,820,000 | $ 5,820,000 | |
Stock-based compensation cost, unrecognized, weighted-average period of recognition | 9 years 6 months | ||
Stock Appreciation Rights (SARs) | SAR Plan | |||
Stock option details | |||
Shares available for future grants | 750,000 | ||
Maximum exercisable period for granted share-based compensation | 10 years | ||
Number of rights issued | 502,250 | ||
Vesting period | 8 years | ||
SARs | |||
Granted | 502,250 |
Investment Securities, Equity_3
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Held-to-maturity securities | ||
Amortized Value | $ 3,400,000 | $ 3,400,000 |
Estimated fair value | 3,400,000 | 3,400,000 |
Carrying Value | 3,400,000 | 3,400,000 |
Available-for-sale securities | ||
Amortized cost | 5,285,989,000 | 5,018,996,000 |
Gross unrealized gains | 2,129,000 | 4,072,000 |
Gross unrealized losses | (618,271,000) | (605,272,000) |
Estimated fair value, Available for sale securities | 4,669,847,000 | 4,417,796,000 |
Collateral Pledged | ||
Available-for-sale securities | ||
Amortized cost | 1,642,812,000 | |
Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 4,669,847,000 | 4,417,796,000 |
Reported Value Measurement | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 4,669,847,000 | 4,417,796,000 |
US Treasury Securities | ||
Available-for-sale securities | ||
Amortized cost | 49,752,000 | |
Gross unrealized losses | (359,000) | |
US Treasury Securities | Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 49,393,000 | |
US Treasury Securities | Reported Value Measurement | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 49,393,000 | |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized cost | 5,123,159,000 | 4,805,735,000 |
Gross unrealized gains | 1,237,000 | 3,145,000 |
Gross unrealized losses | (616,284,000) | (599,668,000) |
Residential mortgage-backed securities | Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 4,508,112,000 | 4,209,212,000 |
Residential mortgage-backed securities | Reported Value Measurement | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 4,508,112,000 | 4,209,212,000 |
US Government Corporations and Agencies Securities [Member] | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 827,045,000 | 681,121,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 3,681,067,000 | 3,528,091,000 |
States and political subdivisions | ||
Available-for-sale securities | ||
Amortized cost | 162,830,000 | 163,509,000 |
Gross unrealized gains | 892,000 | 927,000 |
Gross unrealized losses | (1,987,000) | (5,245,000) |
States and political subdivisions | Estimated Fair Value | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 161,735,000 | 159,191,000 |
States and political subdivisions | Reported Value Measurement | ||
Available-for-sale securities | ||
Estimated fair value, Available for sale securities | 161,735,000 | 159,191,000 |
Other Debt Obligations | ||
Held-to-maturity securities | ||
Amortized Value | 3,400,000 | 3,400,000 |
Estimated fair value | 3,400,000 | 3,400,000 |
Carrying Value | $ 3,400,000 | $ 3,400,000 |
Investment Securities, Equity_4
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Contractual Maturities and Estimated Fair Values) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Amortized Cost | |||||
Due in one year or less, held-to-maturity debt securities amortized cost | $ 2,075,000 | $ 2,075,000 | |||
Due after one year through five years, held-to-maturity debt securities amortized cost | 1,325,000 | 1,325,000 | |||
Amortized cost, held-to-maturity debt securities | 3,400,000 | 3,400,000 | $ 3,400,000 | ||
Fair Value | |||||
Due in one year or less, held-to-maturity debt securities, Estimated fair value | 2,075,000 | 2,075,000 | |||
Due after one year through five years, held-to-maturity debt securities, Estimated fair value | 1,325,000 | 1,325,000 | |||
Estimated fair value | 3,400,000 | 3,400,000 | 3,400,000 | ||
Available-for-sale debt securities amortized cost disclosures | |||||
Due after five years through ten years, available-for-sale debt securities amortized cost | 440,000 | 440,000 | |||
Due after ten years, available-for-sale debt securities amortized cost | 162,390,000 | 162,390,000 | |||
Residential mortgage-backed securities, amortized cost | 5,123,159,000 | 5,123,159,000 | |||
Amortized cost, Available-for-sale securities | 5,285,989,000 | 5,285,989,000 | 5,018,996,000 | ||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value | 440,000 | 440,000 | |||
Due after ten years, available-for-sale debt securities, Estimated Fair Value | 161,295,000 | 161,295,000 | |||
Residential mortgage-backed securities, Estimated Fair Value | 4,508,112,000 | 4,508,112,000 | |||
Estimated fair value, Available for sale securities | 4,669,847,000 | 4,669,847,000 | $ 4,417,796,000 | ||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Proceeds from sales and calls of available for sale securities | 0 | $ 0 | 450,000 | $ 0 | |
Proceeds from sales of mortgage-backed securities | 0 | 0 | 0 | 0 | |
Gross gains realized on sales | 0 | 0 | 0 | 0 | |
Gross losses realized on sales | 0 | $ 0 | 0 | $ 0 | |
Collateral Pledged | |||||
Available-for-sale debt securities amortized cost disclosures | |||||
Amortized cost, Available-for-sale securities | 1,642,812,000 | 1,642,812,000 | |||
Available for sale debt securities, Estimated Fair Value Disclosures | |||||
Fair value of available for sale investment securities pledged | $ 1,394,906,000 | $ 1,394,906,000 |
Investment Securities, Equity_5
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments (Unrealized and realized gains and losses recognized in net income on equity securities ) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Investment Securities, Equity Securities with Readily Determinable Fair Values and Other Investments | |||||
Equity Securities | $ 5,300,000 | $ 5,300,000 | $ 5,358,000 | ||
Summary of unrealized and realized gains and losses recognized in net income on equity securities | |||||
Net losses recognized during the period on equity securities | (92,000) | $ (229,000) | (58,000) | $ (498,000) | |
Unrealized gain on equity securities with readily determinable fair values | $ (92,000) | $ (229,000) | $ (58,000) | $ (498,000) |
Investment Securities (Other In
Investment Securities (Other Investments) (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Other investments | ||
LIHTC | ||
Investments | $ 220,276,000 | $ 214,549,000 |
Other liabilities | ||
LIHTC | ||
Unfunded commitments | $ 33,869,000 | $ 41,191,000 |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank advances | ||
Other borrowed funds | $ 10,845,000 | $ 10,944,000 |
Junior Subordinated Interest _3
Junior Subordinated Interest Deferrable Debentures (Details) | 6 Months Ended | ||
Jun. 30, 2023 USD ($) item | Apr. 07, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Junior subordinated interest deferrable debentures, major types of business trusts | |||
Number of statutory business trusts issuing trust preferred securities | item | 4 | ||
Junior subordinated deferrable interest debentures | $ 108,868,000 | $ 134,642,000 | |
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts IX, X, XI and XII | item | 20 | ||
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum | 25% | ||
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum | 25% | ||
Capital securities issued by the trust, qualifying as Tier I capital | $ 108,868,000 | $ 134,642,000 | |
Trust VIII | |||
Junior subordinated interest deferrable debentures, major types of business trusts | |||
Junior subordinated deferrable interest debentures | $ 25,000,000 |
Junior Subordinated Interest _4
Junior Subordinated Interest Deferrable Debentures (Key Information) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 108,868,000 | $ 134,642,000 |
Trust IX | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 41,238,000 | |
Interest rate (as a percent) | 6.80% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust X | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 21,021,000 | |
Interest rate (as a percent) | 6.95% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.65% | |
Trust XI | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 25,990,000 | |
Interest rate (as a percent) | 6.80% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.62% | |
Trust XII | ||
Junior subordinated interest deferrable debentures, major types of business trusts | ||
Junior subordinated deferrable interest debentures | $ 20,619,000 | |
Interest rate (as a percent) | 6.95% | |
Interest rate index | LIBOR | |
Spread on interest rate index (as a percent) | 1.45% |
Common Stock and Dividends (Det
Common Stock and Dividends (Details) - USD ($) | 1 Months Ended | ||||
Jul. 31, 2023 | Feb. 28, 2023 | Feb. 21, 2023 | Feb. 28, 2022 | Apr. 30, 2009 | |
Common Stock and Dividends | |||||
Cash dividends paid to common shareholders (in dollars per share) | $ 0.63 | $ 0.60 | |||
Repurchase of common stock, authorized amount | $ 124,000,000 | $ 40,000,000 | |||
Period of repurchase of common stock | 12 months | 12 months | |||
Cumulative number of shares repurchased under all stock repurchase programs | 13,692,792 | ||||
Cumulative cost of shares repurchased under all stock repurchase programs | $ 414,222,000 |
Capital Requirements (Capital A
Capital Requirements (Capital Amounts and Ratios) (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Capital Ratios | ||
CET 1 ratio | 0.2132 | 0.2021 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2328 | 0.2222 |
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.2203 | 0.2104 |
Tier 1 capital (to Average Assets), Actual Ratio (as a percent) | 0.1629 | 0.1459 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 100,485 | $ 57,971 | $ 202,128 | $ 111,464 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |