Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 15, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-6233 | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1068133 | |
Entity Address, Address Line One | 100 North Michigan Street | |
Entity Address, City or Town | South Bend, | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46601 | |
City Area Code | 574 | |
Local Phone Number | 235-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock - without par value | |
Trading Symbol | SRCE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 24,732,545 | |
Entity Registrant Name | 1st Source Corp | |
Entity Central Index Key | 0000034782 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 69,195 | $ 54,420 |
Federal funds sold and interest bearing deposits with other banks | 347,697 | 470,767 |
Investment securities available-for-sale | 1,857,431 | 1,863,041 |
Other investments | 25,538 | 27,189 |
Mortgages held for sale | 4,757 | 13,284 |
Loans and leases - net of unearned discount | ||
Loans and leases | 5,394,003 | 5,346,214 |
Allowance for loan and lease losses | (129,959) | (127,492) |
Net loans and leases | 5,264,044 | 5,218,722 |
Equipment owned under operating leases, net | 41,792 | 48,433 |
Net premises and equipment | 45,960 | 47,038 |
Goodwill and intangible assets | 83,921 | 83,926 |
Accrued income and other assets | 272,128 | 269,469 |
Total assets | 8,012,463 | 8,096,289 |
Deposits: | ||
Noninterest-bearing demand | 2,061,111 | 2,052,981 |
Interest-bearing deposits: | ||
Interest-bearing demand | 2,430,979 | 2,455,580 |
Savings | 1,328,981 | 1,286,367 |
Time | 852,021 | 884,137 |
Total interest-bearing deposits | 4,611,981 | 4,626,084 |
Total deposits | 6,673,092 | 6,679,065 |
Short-term borrowings: | ||
Federal funds purchased and securities sold under agreements to repurchase | 193,798 | 194,727 |
Other short-term borrowings | 5,360 | 5,300 |
Total short-term borrowings | 199,158 | 200,027 |
Long-term debt and mandatorily redeemable securities | 69,563 | 71,251 |
Subordinated notes | 58,764 | 58,764 |
Accrued expenses and other liabilities | 92,416 | 117,718 |
Total liabilities | 7,092,993 | 7,126,825 |
SHAREHOLDERS' EQUITY | ||
Preferred stock; no par value Authorized 10,000,000 shares; none issued or outstanding | 0 | 0 |
Common stock; no par value Authorized 40,000,000 shares; issued 28,205,674 at March 31, 2022 and December 31, 2021 | 436,538 | 436,538 |
Retained earnings | 624,503 | 603,787 |
Cost of common stock in treasury (3,473,139 shares at March 31, 2022 and 3,466,162 shares at December 31, 2021) | (115,654) | (114,209) |
Accumulated other comprehensive loss | (80,537) | (9,861) |
Total shareholders’ equity | 864,850 | 916,255 |
Noncontrolling interests | 54,620 | 53,209 |
Total equity | 919,470 | 969,464 |
Total liabilities and equity | $ 8,012,463 | $ 8,096,289 |
Preferred stock; no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, Authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock; no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, Authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued shares | 28,205,674 | 28,205,674 |
Cost of common stock in treasury, shares | 3,473,139 | 3,466,162 |
Commercial and agricultural | ||
Loans and leases - net of unearned discount | ||
Loans and leases | $ 869,093 | $ 918,712 |
Allowance for loan and lease losses | (15,598) | (15,409) |
Solar | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 337,485 | 348,302 |
Allowance for loan and lease losses | (6,417) | (6,585) |
Auto and light truck | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 629,780 | 603,775 |
Allowance for loan and lease losses | (19,521) | (19,624) |
Medium and heavy duty truck | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 255,277 | 259,740 |
Allowance for loan and lease losses | (6,049) | (6,015) |
Aircraft | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 957,040 | 898,401 |
Allowance for loan and lease losses | (35,968) | (33,628) |
Construction equipment | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 775,972 | 754,273 |
Allowance for loan and lease losses | (20,041) | (19,673) |
Commercial real estate | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 920,807 | 929,341 |
Allowance for loan and lease losses | (19,246) | (19,691) |
Residential real estate and home equity | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 510,537 | 500,590 |
Allowance for loan and lease losses | (5,218) | (5,084) |
Consumer | ||
Loans and leases - net of unearned discount | ||
Loans and leases | 138,012 | 133,080 |
Allowance for loan and lease losses | $ (1,901) | $ (1,783) |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income: | ||
Loans and leases | $ 55,208 | $ 57,864 |
Investment securities, taxable | 6,344 | 3,988 |
Investment securities, tax-exempt | 134 | 174 |
Other | 363 | 266 |
Total interest income | 62,049 | 62,292 |
Interest expense: | ||
Deposits | 2,376 | 3,526 |
Short-term borrowings | 24 | 36 |
Subordinated notes | 823 | 818 |
Long-term debt and mandatorily redeemable securities | (792) | 500 |
Total interest expense | 2,431 | 4,880 |
Net interest income | 59,618 | 57,412 |
Provision for credit losses | 2,233 | 2,398 |
Net interest income after provision for loan and lease losses | 57,385 | 55,014 |
Noninterest income: | ||
Mortgage banking | 1,377 | 3,901 |
Insurance commissions | 1,905 | 2,152 |
Equipment rental | 3,662 | 4,629 |
Gains on investment securities available-for-sale | 0 | 0 |
Other | 3,301 | 3,077 |
Total noninterest income | 23,145 | 25,869 |
Noninterest expense: | ||
Salaries and employee benefits | 25,467 | 25,196 |
Net occupancy | 2,811 | 2,719 |
Furniture and equipment | 1,295 | 1,474 |
Information Technology and Data Processing | 5,208 | 4,984 |
Depreciation - leased equipment | 3,015 | 3,773 |
Professional fees | 1,608 | 1,613 |
FDIC and other insurance | 850 | 665 |
Business development and marketing | 1,268 | 997 |
Loan and lease collection and repossession | 134 | 129 |
Other | 3,680 | 2,590 |
Total noninterest expense | 45,336 | 44,140 |
Income before income taxes | 35,194 | 36,743 |
Income tax expense | 7,793 | 8,637 |
Net income | 27,401 | 28,106 |
Net (income) loss attributable to noncontrolling interests | (11) | (1) |
Net income available to common shareholders | $ 27,390 | $ 28,105 |
Per common share: | ||
Basic net income per common share (in dollars per share) | $ 1.10 | $ 1.10 |
Diluted net income per common share (in dollars per share) | 1.10 | 1.10 |
Cash dividends (in dollars per share) | $ 0.31 | $ 0.29 |
Basic weighted average common shares outstanding (in shares) | 24,743,790 | 25,320,930 |
Diluted weighted average common shares outstanding (in shares) | 24,743,790 | 25,320,930 |
Trust and wealth advisory | ||
Noninterest income: | ||
Trust and wealth advisory, service charges on deposit accounts, and debit card income | $ 5,914 | $ 5,481 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Trust and wealth advisory, service charges on deposit accounts, and debit card income | 2,792 | 2,447 |
Debit card | ||
Noninterest income: | ||
Trust and wealth advisory, service charges on deposit accounts, and debit card income | $ 4,194 | $ 4,182 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 27,401 | $ 28,106 |
Other comprehensive income (loss): | ||
Unrealized depreciation of available-for-sale securities | (93,094) | (14,658) |
Reclassification adjustment for realized gains included in net income | 0 | 0 |
Income tax effect | 22,418 | 3,530 |
Other comprehensive loss, net of tax | (70,676) | (11,128) |
Comprehensive (loss) income | (43,275) | 16,978 |
Comprehensive (income) loss attributable to noncontrolling interests | (11) | (1) |
Comprehensive (loss) income available to common shareholders | $ (43,286) | $ 16,977 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Cost of Common Stock in Treasury | Accumulated Other Comprehensive Income (Loss), Net | Total Shareholders' Equity | Noncontrolling Interests |
Balance at Dec. 31, 2020 | $ 930,670 | $ 436,538 | $ 514,176 | $ (82,240) | $ 18,371 | $ 886,845 | $ 43,825 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 28,106 | 28,105 | 28,105 | 1 | |||
Other comprehensive (loss) income | (11,128) | (11,128) | (11,128) | ||||
Issuance of 38,442 and 35,027 common shares under stock based compensation awards for the three months ended March 31, 2022 and 2021, respectively | 1,482 | 844 | 638 | 1,482 | |||
Cost of 45,419 and 155,457 shares of common stock acquired for treasury for the three months ended March 31, 2022 and 2021, respectively | (6,621) | (6,621) | (6,621) | ||||
Common stock dividend ($0.31 and $0.29 per share for the three months ended March 31, 2022 and 2021, respectively) | (7,388) | (7,388) | (7,388) | ||||
Contributions from noncontrolling interests | 887 | 0 | 887 | ||||
Distributions to noncontrolling interests | $ (249) | 0 | (249) | ||||
Issuance of common shares under stock based compensation awards (in shares) | 35,027 | ||||||
Common stock acquired for treasury (in shares) | 155,457 | ||||||
Cash dividends (in dollars per share) | $ 0.29 | ||||||
Balance at Mar. 31, 2021 | $ 935,759 | 436,538 | 535,737 | (88,223) | 7,243 | 891,295 | 44,464 |
Balance at Dec. 31, 2021 | 969,464 | 436,538 | 603,787 | (114,209) | (9,861) | 916,255 | 53,209 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 27,401 | 27,390 | 27,390 | 11 | |||
Other comprehensive (loss) income | (70,676) | (70,676) | (70,676) | ||||
Issuance of 38,442 and 35,027 common shares under stock based compensation awards for the three months ended March 31, 2022 and 2021, respectively | 1,754 | 1,024 | 730 | 1,754 | |||
Cost of 45,419 and 155,457 shares of common stock acquired for treasury for the three months ended March 31, 2022 and 2021, respectively | (2,175) | (2,175) | (2,175) | ||||
Common stock dividend ($0.31 and $0.29 per share for the three months ended March 31, 2022 and 2021, respectively) | (7,698) | (7,698) | (7,698) | ||||
Contributions from noncontrolling interests | 1,627 | 0 | 1,627 | ||||
Distributions to noncontrolling interests | $ (227) | 0 | (227) | ||||
Issuance of common shares under stock based compensation awards (in shares) | 38,442 | ||||||
Common stock acquired for treasury (in shares) | 45,419 | ||||||
Cash dividends (in dollars per share) | $ 0.31 | ||||||
Balance at Mar. 31, 2022 | $ 919,470 | $ 436,538 | $ 624,503 | $ (115,654) | $ (80,537) | $ 864,850 | $ 54,620 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 27,401 | $ 28,106 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 2,233 | 2,398 |
Depreciation of premises and equipment | 1,177 | 1,361 |
Depreciation of equipment owned and leased to others | 3,015 | 3,773 |
Stock-based compensation | 732 | 885 |
Amortization of investment securities premiums and accretion of discounts, net | 967 | 1,734 |
Amortization of mortgage servicing rights | 381 | 590 |
Mortgage servicing rights impairment recoveries | 0 | (42) |
Amortization of right of use assets | 785 | 1,133 |
Deferred income taxes | 80 | 2,452 |
Gains on investment securities available-for-sale | 0 | 0 |
Originations of loans held for sale, net of principal collected | (32,314) | (85,663) |
Proceeds from the sales of loans held for sale | 41,456 | 91,858 |
Net gain on sale of loans held for sale | (615) | (2,661) |
Net gain on sale of other real estate and repossessions | (47) | (141) |
Change in interest receivable | (530) | (142) |
Change in interest payable | 199 | 265 |
Change in other assets | 9,099 | (7,843) |
Change in other liabilities | (10,882) | 4,519 |
Other | (1,334) | (93) |
Net Cash Provided by (Used in) Operating Activities | 41,803 | 42,489 |
Investing activities: | ||
Proceeds from sales of investment securities available-for-sale | 0 | 0 |
Proceeds from maturities and paydowns of investment securities available-for-sale | 57,392 | 119,692 |
Purchases of investment securities available-for-sale | (145,843) | (229,957) |
Net change in partnership investments | (2,128) | (1,142) |
Net change in other investments | 1,651 | 0 |
Loans sold or participated to others | 7,987 | 3,813 |
Proceeds from principal payments on direct finance leases | 9,377 | 7,317 |
Net change in loans and leases | (66,069) | (49,255) |
Net change in equipment owned under operating leases | 3,626 | (128) |
Purchases of premises and equipment | (113) | (280) |
Proceeds from disposal of premises and equipment | 14 | 5 |
Proceeds from sales of other real estate and repossessions | 1,983 | 697 |
Net Cash Provided by (Used in) Investing Activities | (132,123) | (149,238) |
Financing activities: | ||
Net change in demand deposits and savings accounts | 26,143 | 271,650 |
Net change in time deposits | (32,116) | (86,337) |
Net change in short-term borrowings | (869) | 29,960 |
Payments on long-term debt | (2,440) | (2,035) |
Acquisition of treasury stock | (2,175) | (6,621) |
Net contributions from (distributions to) noncontrolling interests | 1,400 | 639 |
Cash dividends paid on common stock | (7,918) | (7,600) |
Net change in financing activities | (17,975) | 199,656 |
Net change in cash and cash equivalents | (108,295) | 92,907 |
Cash and cash equivalents, beginning of year | 525,187 | 243,047 |
Cash and cash equivalents, end of period | 416,892 | 335,954 |
Non-cash transactions: | ||
Loans transferred to other real estate and repossessed assets | 1,150 | 839 |
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan | 683 | 715 |
Right of use assets obtained in exchange for lease obligations | $ 116 | $ 46 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies 1st Source Corporation is a bank holding company headquartered in South Bend, Indiana that provides, through its subsidiaries (collectively referred to as “1st Source” or “the Company”), a broad array of financial products and services. Basis of Presentation – The accompanying unaudited consolidated financial statements reflect all adjustments (all of which are normal and recurring in nature) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in shareholders’ equity, and cash flows for the periods presented. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been omitted. The Notes to the Consolidated Financial Statements appearing in 1st Source Corporation’s Annual Report on Form 10-K (2021 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Statement of Financial Condition at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Use of Estimates in the Preparation of Financial Statements – Financial statements prepared in accordance with GAAP require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. Loans and Leases – Loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. Interest income is accrued as earned based on unpaid principal balances. Origination fees and direct loan and lease origination costs are deferred, and the net amount amortized to interest income over the estimated life of the related loan or lease. Loan commitment fees are deferred and amortized into other income over the commitment period. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, net of unamortized deferred lease origination fees and costs and unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Costs incurred as a direct result of closing lease transactions are capitalized and amortized over the life of the lease while all other initial direct costs are expensed immediately. Accrued interest is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses. The accrual of interest on loans and leases is discontinued when a loan or lease becomes contractually delinquent for 90 days, or when an individual analysis of a borrower’s credit worthiness indicates a credit should be placed on nonperforming status, except for residential mortgage loans and consumer loans that are well secured and in the process of collection. Residential mortgage loans are placed on nonaccrual at the time the loan is placed in foreclosure. When interest accruals are discontinued, interest credited to income in the current year is reversed and interest accrued in the prior year is charged to the allowance for loan and lease losses. However, in some cases, the Company may elect to continue the accrual of interest when the net realizable value of collateral is sufficient to cover the principal and accrued interest. When a loan or lease is classified as nonaccrual and the future collectability of the recorded loan or lease balance is doubtful, collections on interest and principal are applied as a reduction to principal outstanding. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, which is typically evidenced by a sustained repayment performance of at least six months. Loans and leases that have been modified and economic concessions have been granted to borrowers who have experienced financial difficulties are considered a troubled debt restructuring (TDR). These concessions typically result from the Company’s loss mitigation activities and may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Instruments–Credit Losses : In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-02 “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, these amendments require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. The guidance is effective for entities that have adopted ASU 2016-13 for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. These amendments should be applied prospectively. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is assessing ASU 2022-02 and its impact on its accounting and disclosures. Reference Rate Reform: In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to implement its transition plan toward cessation of LIBOR and the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the LIBOR transition relief allowed under ASU 2020-04 and ASU 2021-01, as applicable, and does not expect such adoption to have a material impact on its accounting and disclosures. The Company will continue to assess the impact as the reference rate transition approaches June 30, 2023. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Available-For-Sale The following table shows investment securities available-for-sale. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2022 U.S. Treasury and Federal agencies securities $ 1,137,278 $ 343 $ (56,676) $ 1,080,945 U.S. States and political subdivisions securities 102,459 145 (4,251) 98,353 Mortgage-backed securities — Federal agencies 700,666 394 (46,050) 655,010 Corporate debt securities 22,511 88 (74) 22,525 Foreign government and other securities 600 — (2) 598 Total debt securities available-for-sale $ 1,963,514 $ 970 $ (107,053) $ 1,857,431 December 31, 2021 U.S. Treasury and Federal agencies securities $ 1,093,780 $ 3,244 $ (13,018) $ 1,084,006 U.S. States and political subdivisions securities 95,700 1,130 (1,129) 95,701 Mortgage-backed securities — Federal agencies 663,441 4,745 (8,459) 659,727 Corporate debt securities 22,510 499 — 23,009 Foreign government and other securities 600 — (2) 598 Total debt securities available-for-sale $ 1,876,031 $ 9,618 $ (22,608) $ 1,863,041 Amortized cost excludes accrued interest receivable which is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition. At March 31, 2022 and December 31, 2021, accrued interest receivable on investment securities available-for-sale was $5.02 million and $4.80 million, respectively. At March 31, 2022 and December 31, 2021, the residential mortgage-backed securities held by the Company consisted primarily of GNMA, FNMA and FHLMC pass-through certificates which are guaranteed by those respective agencies of the United States government (Government Sponsored Enterprise, GSEs). The following table shows the contractual maturities of investments in debt securities available-for-sale at March 31, 2022. Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 99,452 $ 99,754 Due after one year through five years 1,073,137 1,018,725 Due after five years through ten years 89,899 83,636 Due after ten years 360 306 Mortgage-backed securities 700,666 655,010 Total debt securities available-for-sale $ 1,963,514 $ 1,857,431 The following table summarizes gross unrealized losses and fair value by investment category and age. At March 31, 2022, the Company’s available-for-sale securities portfolio consisted of 719 securities, 541 of which were in an unrealized loss position. Less than 12 Months 12 months or Longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2022 U.S. Treasury and Federal agencies securities $ 796,571 $ (40,683) $ 207,232 $ (15,993) $ 1,003,803 $ (56,676) U.S. States and political subdivisions securities 55,508 (2,367) 18,798 (1,884) 74,306 (4,251) Mortgage-backed securities - Federal agencies 486,975 (32,284) 133,048 (13,766) 620,023 (46,050) Corporate debt securities 8,109 (74) — — 8,109 (74) Foreign government and other securities 98 (2) — — 98 (2) Total debt securities available-for-sale $ 1,347,261 $ (75,410) $ 359,078 $ (31,643) $ 1,706,339 $ (107,053) December 31, 2021 U.S. Treasury and Federal agencies securities $ 789,536 $ (10,728) $ 84,191 $ (2,290) $ 873,727 $ (13,018) U.S. States and political subdivisions securities 39,585 (980) 4,875 (149) 44,460 (1,129) Mortgage-backed securities - Federal agencies 454,413 (7,312) 35,232 (1,147) 489,645 (8,459) Corporate debt securities — — — — — — Foreign government and other securities 598 (2) — — 598 (2) Total debt securities available-for-sale $ 1,284,132 $ (19,022) $ 124,298 $ (3,586) $ 1,408,430 $ (22,608) The Company does not consider available-for-sale securities with unrealized losses at March 31, 2022 to be experiencing credit losses and recognized no resulting allowance for credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. The unrealized losses occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. The following table shows the gross realized gains and losses from the available-for-sale debt securities portfolio. Realized gains and losses of all securities are computed using the specific identification cost basis. Three Months Ended (Dollars in thousands) 2022 2021 Gross realized gains $ — $ — Gross realized losses — — Net realized gains (losses) $ — $ — At March 31, 2022 and December 31, 2021, investment securities available-for-sale with carrying values of $331.28 million and $351.13 million, respectively, were pledged as collateral for security repurchase agreements and for other purposes. |
Loan and Lease Financings
Loan and Lease Financings | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loan and Lease Financings | Loan and Lease FinancingsThe Company evaluates loans and leases for credit quality at least annually but more frequently if certain circumstances occur (such as material new information which becomes available and indicates a potential change in credit risk). The Company uses two methods to assess credit risk: loan or lease credit quality grades and credit risk classifications. The purpose of the loan or lease credit quality grade is to document the degree of risk associated with individual credits as well as inform management of the degree of risk in the portfolio taken as a whole. Credit risk classifications are used to categorize loans by degree of risk and to designate individual or committee approval authorities for higher risk credits at the time of origination. Credit risk classifications include categories for: Acceptable, Marginal, Special Attention, Special Risk, Restricted by Policy, Regulated and Prohibited by Law. All loans and leases, except residential real estate and home equity loans and consumer loans, are assigned credit quality grades on a scale from 1 to 12 with grade 1 representing superior credit quality. The criteria used to assign grades to extensions of credit that exhibit potential problems or well-defined weaknesses are primarily based upon the degree of risk and the likelihood of orderly repayment, and their effect on the Company’s safety and soundness. Loans or leases graded 7 or weaker are considered “special attention” credits and, as such, relationships in excess of $250,000 are reviewed quarterly as part of management’s evaluation of the appropriateness of the allowance for loan and lease losses. Grade 7 credits are defined as “watch” and contain greater than average credit risk and are monitored to limit the exposure to increased risk; grade 8 credits are “special mention” and, following regulatory guidelines, are defined as having potential weaknesses that deserve management’s close attention. Credits that exhibit well-defined weaknesses and a distinct possibility of loss are considered “classified” and are graded 9 through 12 corresponding to the regulatory definitions of “substandard” (grades 9 and 10) and the more severe “doubtful” (grade 11) and “loss” (grade 12). For residential real estate and home equity and consumer loans, credit quality is based on the aging status of the loan and by payment activity. Nonperforming loans are those loans which are on nonaccrual status or are 90 days or more past due. Below is a summary of the Company’s loan and lease portfolio segments and a discussion of the risk characteristics relevant to each portfolio segment. Commercial and agricultural – loans are to entities within the Company’s local market communities. Loans are for business or agri-business purposes and include working capital lines of credit secured by accounts receivable and inventory that are generally renewable annually and term loans secured by equipment with amortizations based on the expected life of the underlying collateral, generally three Solar – loans are for the purpose of financing solar related projects and may include construction draw notes, operating loans, letters of credit and may entail a tax equity structure. Collateral in a multi-state area includes tangible assets of the borrower, assignment of intangible assets including power purchase agreements, and pledges of permits and licenses. Financing is provided to qualified borrowers throughout the continental United States with an emphasis on the region east of the Rocky Mountains. Auto and light truck – loans are secured by vehicles and borrowers are nationwide. The portfolio consists of multiple industries: auto rental, auto leasing and specialty vehicle which includes bus, funeral car and step van. Borrowers in the auto rental segment are primarily independent auto rental entities with on-airport and off-airport locations, and some insurance replacement business. Loan amortizations are relatively short, generally eighteen months, but up to four years. Auto leasing customers lease to businesses and the Company takes assignment of the lease stream and places its lien on the vehicles. Terms are generally longer than the auto rental sector, three Medium and heavy duty truck – loans and full-service truck leases are secured by heavy-duty trucks, commonly Class 8 trucks, and are generally personally guaranteed. In addition to economic risks, collateral risk is significant. Financing is generally at full cost, plus additional expenditures to get the vehicle operational, such as taxes, insurance and fees. It takes three Aircraft – loans are to domestic and foreign borrowers with the domestic segment further divided into two pools: 1) personal and business use, and 2) dealers and operators. The Company’s focus for the foreign sector is Latin America, principally Mexico and Brazil. Loans are primarily secured by new and used business jets and helicopters, with appropriate advances, amortizations of ten Construction equipment – loans are to borrowers throughout the country secured by specific equipment. The borrowers include highway and road builders, asphalt producers and pavers, suppliers of aggregate products, site developers, frac sand operations, general construction equipment dealers and operators, and crane rental entities. Generally, loans include personal guarantees. The construction equipment industry is heavily dependent on the U.S. economy and the global economy. Market growth is reliant on investments from public and private sectors into urbanization and infrastructure projects. Commercial real estate – loans are generally to entities within the local market communities served by the Company with advances generally within regulatory guidelines. Historically, the Company’s exposure to commercial real estate had been primarily to the less risky owner-occupied segment although growth in recent years has been in the non-owner-occupied segment which now accounts for slightly less than half of the portfolio. The non-owner-occupied segment includes hotels, apartment complexes and warehousing facilities. There is limited exposure to construction loans. Many commercial real estate loans carry personal guarantees. Additional risks in the commercial real estate portfolio stem from geographical concentration in northern Indiana and southwest Michigan and general economic conditions. Residential real estate and home equity – loans predominantly include one-to-four family mortgages to borrowers in the Company’s local market communities and are appropriately underwritten and secured by residential real estate. Consumer – loans are to individuals in the Company’s local markets and auto loans are generally secured by personal vehicles and appropriately underwritten. The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of March 31, 2022. Term Loans and Leases by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 53,128 $ 190,821 $ 107,991 $ 50,957 $ 43,930 $ 32,145 $ 363,670 $ — $ 842,642 Grades 7-12 830 2,186 166 3,338 2,242 2,218 15,471 — 26,451 Total commercial and agricultural 53,958 193,007 108,157 54,295 46,172 34,363 379,141 — 869,093 Solar Grades 1-6 22,411 128,379 40,552 81,076 18,901 38,480 — — 329,799 Grades 7-12 — — 1,131 5,837 718 — — — 7,686 Total solar 22,411 128,379 41,683 86,913 19,619 38,480 — — 337,485 Auto and light truck Grades 1-6 113,310 284,748 108,645 62,013 20,163 10,471 — — 599,350 Grades 7-12 447 7,635 9,350 4,580 3,393 5,025 — — 30,430 Total auto and light truck 113,757 292,383 117,995 66,593 23,556 15,496 — — 629,780 Medium and heavy duty truck Grades 1-6 26,377 85,103 61,748 50,070 19,724 12,068 — — 255,090 Grades 7-12 — — — — — 187 — — 187 Total medium and heavy duty truck 26,377 85,103 61,748 50,070 19,724 12,255 — — 255,277 Aircraft Grades 1-6 142,120 344,528 273,403 73,079 42,434 65,511 6,861 — 947,936 Grades 7-12 1,894 — 633 — 4,342 2,235 — — 9,104 Total aircraft 144,014 344,528 274,036 73,079 46,776 67,746 6,861 — 957,040 Construction equipment Grades 1-6 113,680 287,695 166,178 90,462 37,171 13,924 22,965 3,387 735,462 Grades 7-12 22,419 9,659 2,424 3,158 765 48 — 2,037 40,510 Total construction equipment 136,099 297,354 168,602 93,620 37,936 13,972 22,965 5,424 775,972 Commercial real estate Grades 1-6 59,945 192,722 145,247 140,328 136,562 221,961 314 — 897,079 Grades 7-12 1,118 — 8,011 7,481 49 7,069 — — 23,728 Total commercial real estate 61,063 192,722 153,258 147,809 136,611 229,030 314 — 920,807 Residential real estate and home equity Performing 28,424 101,853 109,427 37,498 9,186 96,976 120,863 4,752 508,979 Nonperforming — — — — 14 1,097 243 204 1,558 Total residential real estate and home equity 28,424 101,853 109,427 37,498 9,200 98,073 121,106 4,956 510,537 Consumer Performing 19,637 52,972 20,840 13,816 6,521 2,073 21,987 — 137,846 Nonperforming — 11 55 37 28 35 — — 166 Total consumer $ 19,637 $ 52,983 $ 20,895 $ 13,853 $ 6,549 $ 2,108 $ 21,987 $ — $ 138,012 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2021. Term Loans and Leases by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 233,512 $ 123,947 $ 60,744 $ 55,231 $ 32,545 $ 20,184 $ 364,460 $ — $ 890,623 Grades 7-12 4,682 194 3,667 2,373 2,004 484 14,685 — 28,089 Total commercial and agricultural 238,194 124,141 64,411 57,604 34,549 20,668 379,145 — 918,712 Solar Grades 1-6 159,244 42,073 81,593 18,979 34,889 3,780 — — 340,558 Grades 7-12 — 1,138 5,882 724 — — — — 7,744 Total solar 159,244 43,211 87,475 19,703 34,889 3,780 — — 348,302 Auto and light truck Grades 1-6 331,105 122,709 72,580 24,965 11,814 901 — — 564,074 Grades 7-12 10,828 11,752 7,467 3,859 4,876 919 — — 39,701 Total auto and light truck 341,933 134,461 80,047 28,824 16,690 1,820 — — 603,775 Medium and heavy duty truck Grades 1-6 92,252 68,354 57,967 23,210 12,419 5,265 — — 259,467 Grades 7-12 — — — — — 273 — — 273 Total medium and heavy duty truck 92,252 68,354 57,967 23,210 12,419 5,538 — — 259,740 Aircraft Grades 1-6 384,895 290,897 85,916 45,848 47,025 29,435 4,844 — 888,860 Grades 7-12 1,141 649 — 4,670 454 2,627 — — 9,541 Total aircraft 386,036 291,546 85,916 50,518 47,479 32,062 4,844 — 898,401 Construction equipment Grades 1-6 314,044 201,032 109,029 47,693 13,501 5,031 18,937 4,594 713,861 Grades 7-12 26,650 8,709 1,983 797 80 — — 2,193 40,412 Total construction equipment 340,694 209,741 111,012 48,490 13,581 5,031 18,937 6,787 754,273 Commercial real estate Grades 1-6 230,701 150,144 146,374 141,838 126,642 112,243 391 — 908,333 Grades 7-12 218 5,921 7,159 491 6,208 1,011 — — 21,008 Total commercial real estate 230,919 156,065 153,533 142,329 132,850 113,254 391 — 929,341 Residential real estate and home equity Performing 105,345 114,682 41,185 9,706 11,720 89,646 122,281 4,555 499,120 Nonperforming — — — 13 421 655 293 88 1,470 Total residential real estate and home equity 105,345 114,682 41,185 9,719 12,141 90,301 122,574 4,643 500,590 Consumer Performing 58,866 24,307 17,031 8,284 2,263 697 21,378 — 132,826 Nonperforming 37 107 43 30 33 4 — — 254 Total consumer $ 58,903 $ 24,414 $ 17,074 $ 8,314 $ 2,296 $ 701 $ 21,378 $ — $ 133,080 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status. (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due and Accruing Total Nonaccrual Total March 31, 2022 Commercial and agricultural $ 867,023 $ 503 $ 201 $ — $ 867,727 $ 1,366 $ 869,093 Solar 337,485 — — — 337,485 — 337,485 Auto and light truck 607,991 214 — — 608,205 21,575 629,780 Medium and heavy duty truck 254,896 194 — — 255,090 187 255,277 Aircraft 950,763 3,409 2,235 — 956,407 633 957,040 Construction equipment 766,210 2,452 — — 768,662 7,310 775,972 Commercial real estate 917,893 — — — 917,893 2,914 920,807 Residential real estate and home equity 508,270 556 153 274 509,253 1,284 510,537 Consumer 137,581 222 43 — 137,846 166 138,012 Total $ 5,348,112 $ 7,550 $ 2,632 $ 274 $ 5,358,568 $ 35,435 $ 5,394,003 December 31, 2021 Commercial and agricultural $ 916,659 $ — $ — $ — $ 916,659 $ 2,053 $ 918,712 Solar 348,302 — — — 348,302 — 348,302 Auto and light truck 579,605 — — — 579,605 24,170 603,775 Medium and heavy duty truck 259,467 — — — 259,467 273 259,740 Aircraft 894,092 1,130 2,530 — 897,752 649 898,401 Construction equipment 745,870 1,313 — — 747,183 7,090 754,273 Commercial real estate 926,345 — — — 926,345 2,996 929,341 Residential real estate and home equity 498,854 212 54 245 499,365 1,225 500,590 Consumer 132,464 332 30 4 132,830 250 133,080 Total $ 5,301,658 $ 2,987 $ 2,614 $ 249 $ 5,307,508 $ 38,706 $ 5,346,214 Accrued interest receivable on loans and leases at March 31, 2022 and December 31, 2021 was $13.11 million and $12.94 million, respectively. There were no loan and lease modifications classified as a troubled debt restructuring (TDR) during the three months ended March 31, 2022 and 2021. The classification between nonperforming and performing is determined at the time of modification. Modification programs focus on extending maturity dates or modifying payment patterns with most TDRs experiencing a combination of concessions. Modifications do not result in the contractual forgiveness of principal or interest. There were no modifications during the three months ended March 31, 2022 and 2021 that resulted in an interest rate below market rate. There were no TDRs which had payment defaults within the twelve months following modification during the three months ended March 31, 2022 and 2021, respectively. Default occurs when a loan or lease is 90 days or more past due under the modified terms or transferred to nonaccrual. The following table shows the recorded investment of loans and leases classified as troubled debt restructurings as of March 31, 2022 and December 31, 2021. (Dollars in thousands) March 31, December 31, Performing TDRs $ — $ 319 Nonperforming TDRs 5,965 6,742 Total TDRs $ 5,965 $ 7,061 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Allowance for Loan and Lease Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolios utilizing guidance in Accounting Standards Codification (ASC) Topic 326. The determination of the allowance requires significant judgment to estimate credit losses measured on a collective pool basis when similar risk characteristics exist, and for loans evaluated individually. In determining the allowance, the Company estimates expected future losses for the loan’s entire contractual term adjusted for expected payments when appropriate. The allowance estimate considers relevant available information, from internal and external sources relating to the historical loss experience, current conditions, and reasonable and supportable forecasts for the Company’s outstanding loan and lease balances. The allowance is an estimation that reflects management’s evaluation of expected losses related to the Company’s financial assets measured at amortized cost. To ensure that the allowance is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The Company categorizes its loan portfolios into nine segments based on similar risk characteristics. Loans within each segment are collectively evaluated using either: 1) a cohort cumulative loss rate methodology (“cohort”) or, 2) the probability of default (“PD”)/loss given default (“LGD”) methodology (PD/LGD). The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the three months ended March 31, 2022 and 2021. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total March 31, 2022 Balance, beginning of period $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 Charge-offs — — — — — 48 — 4 165 217 Recoveries 4 — 65 — 316 — — 1 65 451 Net charge-offs (recoveries) (4) — (65) — (316) 48 — 3 100 (234) Provision (recovery of provision) 185 (168) (168) 34 2,024 416 (445) 137 218 2,233 Balance, end of period $ 15,598 $ 6,417 $ 19,521 $ 6,049 $ 35,968 $ 20,041 $ 19,246 $ 5,218 $ 1,901 $ 129,959 March 31, 2021 Balance, beginning of period $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 Charge-offs 1 — 4,286 — — 8 — 5 152 4,452 Recoveries 377 — 49 — 119 254 15 1 135 950 Net charge-offs (recoveries) (376) — 4,237 — (119) (246) (15) 4 17 3,502 Provision (recovery of provision) (1,605) 209 4,654 (129) 1,047 (3,103) 1,561 (207) (29) 2,398 Balance, end of period $ 15,451 $ 5,758 $ 29,343 $ 6,271 $ 35,219 $ 16,309 $ 24,334 $ 5,163 $ 1,702 $ 139,550 The allowance for credit losses increased during the first quarter in response to loan growth along with a forecast adjustment due to increased risk during the forecast period attributable to heightened geopolitical uncertainty, ongoing supply chain difficulties, and persistent inflation. Credit quality remains on an improving trend as evidenced by declining total special attention credit outstandings and net recoveries during the quarter. This quarter, increases in the allowance for various portfolios, particularly aircraft and construction equipment, were driven by loan growth and to a lesser extent, the forecast adjustment. Decreases in the auto and light truck portfolio was due to continued amortization of special attention credits in the highly reserved bus segment. Reduced reserves in the commercial real estate portfolio were due to a reduction in qualitative adjustments related to COVID-19 along with lower loan balances. Commercial and agricultural – the decline in loan balances is attributable to PPP debt forgiveness coupled with a modest decline in loans in our core businesses. The small increase in the allowance was principally due to the impact of the forecast adjustment. Solar – the allowance decreased due to lower loan outstandings. Credit quality is stable to improving. Auto and light truck – the allowance decreased as a result of lower outstanding loan balances in the higher risk bus segment of the portfolio, which was significantly impacted by the pandemic. The decline in allowance attributable to the bus segment was substantially offset by loan growth in the auto rental and leasing segments, which carry lower loss ratios. Medium and heavy duty truck – the allowance was minimally changed as a decrease in loan outstandings was offset by a slight increase in the forecast adjustment. Credit quality metrics continued to be relatively strong for this portfolio. Energy price volatility and driver availability remain a challenge. Aircraft – the allowance increased due to loan growth in both domestic and foreign segments. The portfolio is currently bolstered by strengthening collateral values somewhat offset by continuing economic concerns related primarily to Latin American-based foreign loans. The Company has historically carried a higher allowance in this portfolio due to risk volatility. Construction equipment – the allowance increased due to loan growth. Commercial real estate – the allowance decrease was a result of declines in outstanding loan balances as well as a minor decrease in COVID-19-related qualitative adjustment factors. Residential real estate and home equity – the increased allowance was due to an increase in loan balances. Consumer – segment saw a slight increase in allowance due principally to loan growth. Economic Outlook As of March 31, 2022, the most significant economic factors impacting our loan portfolios are the war in Ukraine and resultant increased uncertainty for the U.S. economy, and additional inflationary pressures, further aggravated by supply chain disruptions. We remain concerned about COVID-19 surges and new variants. The forecast considers global and domestic economic impacts from these factors as well as other key economic factors such as change in Gross Domestic Product and unemployment which may impact our clients. The Company’s assumption was that economic growth will slow in 2022 and 2023 and inflation will remain well above the 2% Federal Reserve target rate resulting in an adverse impact on the loan and lease portfolio over the next two years. As a result of geopolitical risks and economic uncertainty, the Company’s future loss estimates may vary considerably from the March 31, 2022 assumptions. Liability for Credit Losses on Unfunded Loan Commitments The liability for credit losses inherent in unfunded loan commitments is included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. The following table shows the changes in the liability for credit losses on unfunded loan commitments. Three Months Ended (Dollars in thousands) 2022 2021 Balance, beginning of period $ 4,196 $ 4,499 Provision 728 94 Balance, end of period $ 4,924 $ 4,593 |
Lease Investments
Lease Investments | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease Investments | Lease Investments As a lessor, the Company’s loan and lease portfolio includes direct finance leases, which are included in Commercial and Agricultural, Solar, Auto and Light Truck, Medium and Heavy Duty Truck, Aircraft, and Construction Equipment on the Consolidated Statements of Financial Condition. The Company also finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases, which are included in Equipment Owned Under Operating Leases, net, on the Consolidated Statements of Financial Condition. The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. Three Months Ended (Dollars in thousands) 2022 2021 Direct finance leases: Interest income on lease receivable $ 1,781 $ 1,590 Operating leases: Income related to lease payments $ 3,662 $ 4,629 Depreciation expense 3,015 3,773 Income related to reimbursements from lessees for personal property tax on operating leased equipment for the three months ended March 31, 2022 and 2021 was $0.20 million and $0.24 million, respectively. Expense related to personal property tax payments on operating leased equipment for the three months ended March 31, 2022 and 2021 was $0.20 million and $0.24 million, respectively. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company recognizes the rights to service residential mortgage loans for others as separate assets, whether the servicing rights are acquired through a separate purchase or through the sale of originated loans with servicing rights retained. The Company allocates a portion of the total proceeds of a mortgage loan to servicing rights based on the relative fair value. The unpaid principal balance of residential mortgage loans serviced for third parties was $888.63 million and $883.90 million at March 31, 2022 and December 31, 2021, respectively. Mortgage servicing rights (MSRs) are evaluated for impairment at each reporting date. For purposes of impairment measurement, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. If temporary impairment exists within a tranche, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the fair value. If it is later determined all or a portion of the temporary impairment no longer exists for a particular tranche, the valuation allowance is reduced through a recovery of income. The following table shows changes in the carrying value of MSRs and the associated valuation allowance. Three Months Ended (Dollars in thousands) 2022 2021 Mortgage servicing rights: Balance at beginning of period $ 4,671 $ 4,616 Additions 335 761 Amortization (381) (590) Carrying value before valuation allowance at end of period 4,625 4,787 Valuation allowance: Balance at beginning of period — (812) Impairment recoveries — 42 Balance at end of period $ — $ (770) Net carrying value of mortgage servicing rights at end of period $ 4,625 $ 4,017 Fair value of mortgage servicing rights at end of period $ 6,363 $ 4,365 At March 31, 2022 and 2021, the fair value of MSRs exceeded the carrying value reported in the Consolidated Statements of Financial Condition by $1.74 million and $0.35 million, respectively. This difference represents increases in the fair value of certain MSRs that could not be recorded above cost basis. Mortgage loan contractual servicing fees, including late fees and ancillary income, were $0.72 million and $0.81 million for the three months ended March 31, 2022 and 2021, respectively. Mortgage loan contractual servicing fees are included in Mortgage Banking on the Consolidated Statements of Income. |
Commitments and Financial Instr
Commitments and Financial Instruments with Off-Balance-Sheet Risk | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Financial Instruments with Off-Balance-Sheet Risk | Commitments and Financial Instruments with Off-Balance-Sheet Risk Financial Instruments with Off-Balance-Sheet Risk — 1st Source and its subsidiaries are parties to financial instruments with off-balance-sheet risk in the normal course of business. These off-balance-sheet financial instruments include commitments to originate and sell loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) March 31, December 31, Amounts of commitments: Loan commitments to extend credit $ 1,204,428 $ 1,148,984 Standby letters of credit $ 22,765 $ 24,657 Commercial and similar letters of credit $ 746 $ 8,531 The exposure to credit loss in the event of nonperformance by the other party to the financial instruments for loan commitments and standby letters of credit is represented by the dollar amount of those instruments. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Company grants mortgage loan commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan commitments is managed by entering into contracts for future deliveries of loans. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments that guarantee the performance of a client to a third party. The credit risk involved in and collateral obtained when issuing standby letters of credit is essentially the same as that involved in extending loan commitments to clients. Standby letters of credit generally have terms ranging from two months to one year. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. Commercial letters of credit generally have terms ranging from two months to six months. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments. See Note 8 for further information. The Company has certain interest rate derivative positions that are not designated as hedging instruments. Derivative assets and liabilities are recorded at fair value on the Consolidated Statements of Financial Condition and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related collateral, where applicable. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, the Company agrees to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate. Because the terms of the swaps with the customers and the other financial institutions offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact the Company’s results of operations. The following table shows the amounts of non-hedging derivative financial instruments. Asset derivatives Liability derivatives (Dollars in thousands) Notional or contractual amount Statement of Financial Condition classification Fair value Statement of Financial Condition classification Fair value March 31, 2022 Interest rate swap contracts $ 1,017,365 Other assets $ 7,806 Other liabilities $ 8,006 Loan commitments 13,422 Mortgages held for sale 287 N/A — Forward contracts - mortgage loan 13,080 Mortgages held for sale 200 N/A — Total $ 1,043,867 $ 8,293 $ 8,006 December 31, 2021 Interest rate swap contracts $ 1,064,721 Other assets $ 20,735 Other liabilities $ 21,172 Loan commitments 15,086 Mortgages held for sale 452 N/A — Forward contracts - mortgage loan 22,000 N/A — Mortgages held for sale 11 Total $ 1,101,807 $ 21,187 $ 21,183 The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended (Dollars in thousands) Statement of Income classification 2022 2021 Interest rate swap contracts Other expense $ 237 $ 333 Interest rate swap contracts Other income — 86 Loan commitments Mortgage banking (165) (698) Forward contracts - mortgage loan Mortgage banking 211 577 Total $ 283 $ 298 The following table shows the offsetting of financial assets and derivative assets. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Financial Instruments Cash Collateral Received Net Amount March 31, 2022 Interest rate swaps $ 10,324 $ 2,518 $ 7,806 $ — $ 3,040 $ 4,766 December 31, 2021 Interest rate swaps $ 24,436 $ 3,701 $ 20,735 $ — $ — $ 20,735 The following table shows the offsetting of financial liabilities and derivative liabilities. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount March 31, 2022 Interest rate swaps $ 10,524 $ 2,518 $ 8,006 $ 299 $ — $ 7,707 Repurchase agreements 193,798 — 193,798 193,798 — — Total $ 204,322 $ 2,518 $ 201,804 $ 194,097 $ — $ 7,707 December 31, 2021 Interest rate swaps $ 24,873 $ 3,701 $ 21,172 $ 20,498 $ — $ 674 Repurchase agreements 194,727 — 194,727 194,727 — — Total $ 219,600 $ 3,701 $ 215,899 $ 215,225 $ — $ 674 If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. At March 31, 2022 and December 31, 2021, repurchase agreements had a remaining contractual maturity of $190.67 million and $191.47 million in overnight and $3.13 million and $3.26 million in up to 30 days, respectively and were collateralized by U.S. Treasury and Federal agencies securities. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities Disclosure | Variable Interest Entities A variable interest entity (VIE) is a partnership, limited liability company, trust or other legal entity that meets any one of the following criteria: • The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party. • The entity’s investors lack the power to direct the activities that most significantly affect the entity’s economic performance. • The entity’s at-risk holders do not have the obligation to absorb the losses or the right to receive residual returns. • The voting rights of some investors are not proportional to their economic interests in the entity, and substantially all of the entity’s activities involve, or are conducted on behalf of, investors with disproportionately few voting rights. The Company is involved in various entities that are considered to be VIEs. The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged investments support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal and state income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. Tax credits from affordable housing investments and community development investments are recognized as a reduction of tax expense. Investments in renewable energy sources qualify for investment tax credits which are recognized as a reduction to the related investment asset. The Company recognized federal income tax credits related to its affordable housing and community development tax-advantaged investments in tax expense of $0.50 million and $0.50 million for the three months ended March 31, 2022 and 2021, respectively. The Company also recognized $0.00 million and $1.92 million of investment tax credits for the three months ended March 31, 2022 and 2021, respectively. The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. As a limited partner in these operating partnerships, the Company is allocated credits and deductions associated with the underlying properties. The Company has determined that it is not the primary beneficiary of these investments because the general partners have the power to direct activities that most significantly influence the economic performance of their respective partnerships. The Company’s investments in these unconsolidated VIEs are carried in Other Assets on the Consolidated Statements of Financial Condition. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in Other Liabilities on the Consolidated Statements of Financial Condition. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Statements of Financial Condition, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business, housing projects and renewable energy projects completely fail and do not meet certain taxing authority compliance requirements resulting in recapture of the related tax credits. The following table provides a summary of investments in affordable housing, community development and renewable energy VIEs that the Company has not consolidated. (Dollars in thousands) March 31, 2022 December 31, 2021 Investment carrying amount $ 26,391 $ 35,968 Unfunded capital and other commitments 19,668 29,670 Maximum exposure to loss 48,044 50,319 The Company is required to consolidate VIEs in which it has concluded it has significant involvement in and the ability to direct the activities that impact the entity’s economic performance. The Company is the managing general partner of entities to which it shares interest in tax-advantaged investments with third parties. At March 31, 2022 and December 31, 2021, approximately $67.85 million and $59.08 million of the Company’s assets and $7.23 million and $0.00 million of its liabilities included on the Consolidated Statements of Financial Condition were related to tax-advantaged investment VIEs which the Company has consolidated, respectively. The assets of the consolidated VIEs are reported in Other Assets, the liabilities are reported in Other Liabilities and the non-controlling interest is reported in Equity on the Consolidated Statements of Financial Condition. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIE do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIE is generally limited to the carrying value of its variable interest plus any related tax credits previously recognized. Additionally, the Company sponsors one trust, 1st Source Master Trust (Capital Trust) of which 100% of the common equity is owned by the Company. The Capital Trust was formed in 2007 for the purpose of issuing corporation-obligated mandatorily redeemable capital securities (the capital securities) to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debenture securities of the Company (the subordinated notes). The subordinated notes held by the Capital Trust are the sole assets of the Capital Trust. The Capital Trust qualifies as a variable interest entity for which the Company is not the primary beneficiary and therefore reported in the financial statements as an unconsolidated subsidiary. The junior subordinated debentures are reflected as subordinated notes in the Statements of Financial Condition with the corresponding interest distributions reflected as Interest Expense in the Statements of Income. The common shares issued by the Capital Trust are included in Other Assets in the Statements of Financial Condition. Distributions on the capital securities issued by the Capital Trust are payable quarterly at a rate per annum equal to the interest rate being earned by the Capital Trust on the subordinated notes held by the Capital Trust. The capital securities are subject to mandatory redemption, in whole or in part, upon repayment of the subordinated notes. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of each of the guarantees. The capital securities held by the Capital Trust qualify as Tier 1 capital under Federal Reserve Board guidelines. The following table shows subordinated notes at March 31, 2022. (Dollars in thousands) Amount of Subordinated Notes Interest Rate Maturity Date June 2007 issuance (1) $ 41,238 7.22 % 6/15/2037 August 2007 issuance (2) 17,526 2.31 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month LIBOR +1.48% through remaining life of debt. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. There were no stock options outstanding as of March 31, 2022 and 2021. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended (Dollars in thousands - except per share amounts) 2022 2021 Distributed earnings allocated to common stock $ 7,672 $ 7,364 Undistributed earnings allocated to common stock 19,516 20,531 Net earnings allocated to common stock 27,188 27,895 Net earnings allocated to participating securities 202 210 Net income allocated to common stock and participating securities $ 27,390 $ 28,105 Weighted average shares outstanding for basic earnings per common share 24,743,790 25,320,930 Dilutive effect of stock compensation — — Weighted average shares outstanding for diluted earnings per common share 24,743,790 25,320,930 Basic earnings per common share $ 1.10 $ 1.10 Diluted earnings per common share $ 1.10 $ 1.10 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation As of March 31, 2022, the Company had four active stock-based employee compensation plans, which are more fully described in Note 16 of the Consolidated Financial Statements in 1st Source’s Annual Report on Form 10-K for the year ended December 31, 2021. These plans include three executive stock award plans, the Executive Incentive Plan (EIP), the Restricted Stock Award Plan (RSAP), the Strategic Deployment Incentive Plan (SDP); and the Employee Stock Purchase Plan. The 2011 Stock Option Plan was approved by the shareholders on April 21, 2011 but the Company had not made any grants through March 31, 2022. Stock-based compensation expense for all stock-based compensation awards granted is based on the grant-date fair value. For all awards except stock option awards, the grant date fair value is either the fair market value per share or book value per share (corresponding to the type of stock awarded) as of the grant date. For stock option awards, the grant date fair value is estimated using the Black-Scholes option pricing model. For all awards, the Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, for which the Company uses the related vesting term. Total fair value of options vested and expensed was zero for the three months ended March 31, 2022 and 2021. As of March 31, 2022 and 2021 there were no outstanding stock options. There were no stock options exercised during the three months ended March 31, 2022 and 2021. All shares issued in connection with stock option exercises are issued from available treasury stock. As of March 31, 2022, there was $9.48 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 3.56 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The following table presents reclassifications out of accumulated other comprehensive income (loss) related to unrealized gains and losses on available-for-sale securities. Three Months Ended March 31, Affected Line Item in the Statements of Income (Dollars in thousands) 2022 2021 Realized gains included in net income $ — $ — Gains on investment securities available-for-sale — — Income before income taxes Tax effect — — Income tax expense Net of tax $ — $ — Net income |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The total amount of unrecognized tax benefits that would affect the effective tax rate if recognized was zero at March 31, 2022 and December 31, 2021. Interest and penalties are recognized through the income tax provision. For the three months ended March 31, 2022 and 2021, the Company recognized no interest or penalties. There were no accrued interest and penalties at March 31, 2022 and December 31, 2021. Tax years that remain open and subject to audit include the federal 2018-2021 years and the Indiana 2018-2021 years. The Company does not anticipate a significant change in the amount of uncertain tax positions within the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company records certain assets and liabilities at fair value. Fair value is defined 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. Fair value measurements are also utilized to determine the initial value of certain assets and liabilities, to perform impairment assessments, and for disclosure purposes. The Company uses quoted market prices and observable inputs to the maximum extent possible when measuring fair value. In the absence of quoted market prices, various valuation techniques are utilized to measure fair value. When possible, observable market data for identical or similar financial instruments is used in the valuation. When market data is not available, fair value is determined using valuation models that incorporate management’s estimates of the assumptions a market participant would use in pricing the asset or liability. Fair value measurements are classified within one of three levels based on the observability of the inputs used to determine fair value, as follows: • Level 1 — The valuation is based on quoted prices in active markets for identical instruments. • Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 — The valuation is based on unobservable inputs that are supported by minimal or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques that incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument, or valuations that require significant management judgment or estimation. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company elected fair value accounting for mortgages held for sale and for its best-efforts forward sales commitments. The Company economically hedges its mortgages held for sale at the time the interest rate locks are issued to the customers. The Company believes the election for mortgages held for sale will reduce certain timing differences and better match changes in the value of these assets with changes in the value of derivatives or best-best efforts forward sales commitments. At March 31, 2022 and December 31, 2021, all mortgages held for sale were carried at fair value. The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity. (Dollars in thousands) Fair value Aggregate Excess of fair value carrying amount over (under) unpaid principal March 31, 2022 Mortgages held for sale reported at fair value $ 4,757 $ 4,256 $ 501 (1) December 31, 2021 Mortgages held for sale reported at fair value $ 13,284 $ 12,456 $ 828 (1) (1) The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding. Financial Instruments on Recurring Basis: The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis: Investment securities available-for-sale are valued primarily by a third party pricing agent. Prices supplied by the independent pricing agent, as well as their pricing methodologies and assumptions, are reviewed by the Company for reasonableness and to ensure such prices are aligned with market levels. In general, the Company’s investment securities do not possess a complex structure that could introduce greater valuation risk. The portfolio mainly consists of traditional investments including U.S. Treasury and Federal agencies securities, Federal agency mortgage pass-through securities, and general obligation and revenue municipal bonds. Pricing for such instruments is fairly generic and is easily obtained. On a quarterly basis, prices supplied by the pricing agent are validated by comparison to prices obtained from other third party sources for a material portion of the portfolio. The valuation policy and procedures for Level 3 fair value measurements of available-for-sale debt securities are decided through collaboration between management of the Corporate Accounting and Funds Management departments. The changes in fair value measurement for Level 3 securities are analyzed on a periodic basis under a collaborative framework with the aforementioned departments. The methodology and variables used for input are derived from the combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments. Both the market and income valuation approaches are implemented using the following types of inputs: • U.S. treasuries are priced using the market approach and utilizing live data feeds from active market exchanges for identical securities. • Government-sponsored agency debt securities and corporate bonds are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing. • Other government-sponsored agency securities, mortgage-backed securities and some of the actively traded REMICs and CMOs, are primarily priced using available market information including benchmark yields, prepayment speeds, spreads and volatility of similar securities. • State and political subdivisions are largely grouped by characteristics, i.e., geographical data and source of revenue in trade dissemination systems. Since some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. Local direct placement municipal securities, with very little market activity, are priced using an appropriate market yield curve, which includes a credit spread assumption. Mortgages held for sale and the related loan commitments and forward contracts (hedges) are valued by a third party pricing agent. Prices supplied by the independent pricing agent, as well as their pricing methodologies, are reviewed by the Company for reasonableness and to ensure such prices are aligned with market values. On a quarterly basis, prices supplied by the pricing agent are validated by comparison to the prices obtained from other third party sources. Interest rate swap positions, both assets and liabilities, are valued by a third-party pricing agent using an income approach and utilizing models that use as their basis readily observable market parameters. This valuation process considers various factors including interest rate yield curves, time value and volatility factors. Validation of third party agent valuations is accomplished by comparing those values to the Company’s swap counterparty valuations. Management believes an adjustment is required to “mid-market” valuations for derivatives tied to its performing loan portfolio to recognize the imprecision and related exposure inherent in the process of estimating expected credit losses as well as velocity of deterioration evident with systemic risks embedded in these portfolios. Any change in the mid-market derivative valuation adjustment will be recognized immediately through the Consolidated Statements of Income. The following table shows the balance of assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 590,484 $ 490,461 $ — $ 1,080,945 U.S. States and political subdivisions securities — 93,824 4,529 98,353 Mortgage-backed securities — Federal agencies — 655,010 — 655,010 Corporate debt securities — 22,525 — 22,525 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 590,484 1,262,418 4,529 1,857,431 Mortgages held for sale — 4,757 — 4,757 Accrued income and other assets (interest rate swap agreements) — 7,806 — 7,806 Total $ 590,484 $ 1,274,981 $ 4,529 $ 1,869,994 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 8,006 $ — $ 8,006 Total $ — $ 8,006 $ — $ 8,006 December 31, 2021 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 561,950 $ 522,056 $ — $ 1,084,006 U.S. States and political subdivisions securities — 93,852 1,849 95,701 Mortgage-backed securities — Federal agencies — 659,727 — 659,727 Corporate debt securities — 23,009 — 23,009 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 561,950 1,299,242 1,849 1,863,041 Mortgages held for sale — 13,284 — 13,284 Accrued income and other assets (interest rate swap agreements) — 20,735 — 20,735 Total $ 561,950 $ 1,333,261 $ 1,849 $ 1,897,060 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,172 $ — $ 21,172 Total $ — $ 21,172 $ — $ 21,172 The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2022 and 2021. (Dollars in thousands) U.S. States and Beginning balance January 1, 2022 $ 1,849 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (155) Purchases 3,000 Issuances — Sales — Settlements — Maturities (165) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2022 $ 4,529 Beginning January 1, 2021 $ 2,152 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (80) Purchases — Issuances — Sales — Settlements — Maturities (165) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2021 $ 1,907 There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2022 or 2021. The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average March 31, 2022 Debt securities available-for sale Direct placement municipal securities $ 4,529 Discounted cash flows Credit spread assumption 2.36% - 3.95% 2.88 % December 31, 2021 Debt securities available-for sale Direct placement municipal securities $ 1,849 Discounted cash flows Credit spread assumption 0.04% - 2.31% 1.58 % Financial Instruments on Non-recurring Basis: The Company may be required, from time to time, to measure certain other financial assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or market accounting or impairment charges of individual assets. The Credit Policy Committee (CPC), a management committee, is responsible for overseeing the valuation processes and procedures for Level 3 measurements of impaired loans, other real estate and repossessions. The CPC reviews these assets on a quarterly basis to determine the accuracy of the observable inputs, generally third party appraisals, auction values, values derived from trade publications and data submitted by the borrower, and the appropriateness of the unobservable inputs, generally discounts due to current market conditions and collection issues. The CPC establishes discounts based on asset type and valuation source; deviations from the standard are documented. The discounts are reviewed periodically, annually at a minimum, to determine they remain appropriate. Consideration is given to current trends in market values for the asset categories and gains and losses on sales of similar assets. The Loan and Funds Management Committee of the Board of Directors is responsible for overseeing the CPC. Discounts vary depending on the nature of the assets and the source of value. Aircraft are generally valued using quarterly trade publications adjusted for engine time, condition, maintenance programs, discounted by 10%. Likewise, autos are valued using current auction values, discounted by 10%; medium and heavy duty trucks are valued using trade publications and auction values, discounted by 15%. Construction equipment is generally valued using trade publications and auction values, discounted by 20%. Real estate is valued based on appraisals or evaluations, discounted by 20% with higher discounts for property in poor condition or property with characteristics which may make it more difficult to market. Commercial loans subject to borrowing base certificates are generally discounted by 20% for receivables and 40% - 75% for inventory with higher discounts when monthly borrowing base certificates are not required or received. Collateral-dependent impaired loans and related write-downs are based on the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are reviewed quarterly and estimated using customized discounting criteria, appraisals and dealer and trade magazine quotes which are used in a market valuation approach. In accordance with fair value measurements, only impaired loans for which an allowance for loan loss has been established based on the fair value of collateral require classification in the fair value hierarchy. As a result, only a portion of the Company’s impaired loans are classified in the fair value hierarchy. The Company has established MSRs valuation policies and procedures based on industry standards and to ensure valuation methodologies are consistent and verifiable. MSRs and related adjustments to fair value result from application of lower of cost or fair value accounting. For purposes of impairment, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. The fair value of each tranche of the servicing portfolio is estimated by calculating the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other economic factors. Prepayment rates and discount rates are derived through a third party pricing agent. Changes in the most significant inputs, including prepayment rates and discount rates, are compared to the changes in the fair value measurements and appropriate resolution is made. A fair value analysis is also obtained from an independent third party agent and compared to the internal valuation for reasonableness. MSRs do not trade in an active, open market with readily observable prices and though sales of MSRs do occur, precise terms and conditions typically are not readily available and the characteristics of the Company’s servicing portfolio may differ from those of any servicing portfolios that do trade. Other real estate is based on the fair value of the underlying collateral less expected selling costs. Collateral values are estimated primarily using appraisals and reflect a market value approach. Fair values are reviewed quarterly, and new appraisals are obtained annually. Repossessions are similarly valued. For assets measured at fair value on a nonrecurring basis the following represents impairment charges (recoveries) recognized on these assets during the quarter ended March 31, 2022: collateral-dependent impaired loans - $0.00 million; mortgage servicing rights - $0.00 million; repossessions - $0.00 million; and other real estate - $0.00 million. The following table shows the carrying value of assets measured at fair value on a non-recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2022 Collateral-dependent impaired loans $ — $ — $ 986 $ 986 Accrued income and other assets (mortgage servicing rights) — — 4,625 4,625 Accrued income and other assets (repossessions) — — 73 73 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 5,684 $ 5,684 December 31, 2021 Collateral-dependent impaired loans $ — $ — $ 571 $ 571 Accrued income and other assets (mortgage servicing rights) — — 4,671 4,671 Accrued income and other assets (repossessions) — — 861 861 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 6,103 $ 6,103 The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis. (Dollars in thousands) Carrying Value Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average March 31, 2022 Collateral-dependent impaired loans $ 986 $ 986 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 34.5 % Mortgage servicing rights 4,625 6,363 Discounted cash flows Constant prepayment rate (CPR) 10.2% - 17.4% 13.7 % Discount rate 9.8% - 12.6% 9.9 % Repossessions 73 241 Appraisals, trade publications and auction values Discount for lack of marketability 13% - 100% 70 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2021 Collateral-dependent impaired loans $ 571 $ 571 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 43.1 % Mortgage servicing rights 4,671 5,640 Discounted cash flows Constant prepayment rate (CPR) 11.8% - 18.5% 16.4 % Discount rate 8.6% - 11.5% 8.8 % Repossessions 861 942 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 21% 2 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring or non-recurring basis. The following table shows the fair values of the Company’s financial instruments. (Dollars in thousands) Carrying or Contract Value Fair Value Level 1 Level 2 Level 3 March 31, 2022 Assets: Cash and due from banks $ 69,195 $ 69,195 $ 69,195 $ — $ — Federal funds sold and interest bearing deposits with other banks 347,697 347,697 347,697 — — Investment securities, available-for-sale 1,857,431 1,857,431 590,484 1,262,418 4,529 Other investments 25,538 25,538 25,538 — — Mortgages held for sale 4,757 4,757 — 4,757 — Loans and leases, net of allowance for loan and lease losses 5,264,044 5,280,472 — — 5,280,472 Mortgage servicing rights 4,625 6,363 — — 6,363 Accrued interest receivable 18,289 18,289 — 18,289 — Interest rate swaps 7,806 7,806 — 7,806 — Liabilities: Deposits $ 6,673,092 $ 6,666,398 $ 5,821,071 $ 845,327 $ — Short-term borrowings 199,158 199,158 192,146 7,012 — Long-term debt and mandatorily redeemable securities 69,563 68,258 — 68,258 — Subordinated notes 58,764 58,350 — 58,350 — Accrued interest payable 2,084 2,084 — 2,084 — Interest rate swaps 8,006 8,006 — 8,006 — Off-balance-sheet instruments * — 82 — 82 — December 31, 2021 Assets: Cash and due from banks $ 54,420 $ 54,420 $ 54,420 $ — $ — Federal funds sold and interest bearing deposits with other banks 470,767 470,767 470,767 — — Investment securities, available-for-sale 1,863,041 1,863,041 561,950 1,299,242 1,849 Other investments 27,189 27,189 27,189 — — Mortgages held for sale 13,284 13,284 — 13,284 — Loans and leases, net of allowance for loan and lease losses 5,218,722 5,269,551 — — 5,269,551 Mortgage servicing rights 4,671 5,640 — — 5,640 Accrued interest receivable 17,760 17,760 — 17,760 — Interest rate swaps 20,735 20,735 — 20,735 — Liabilities: Deposits $ 6,679,065 $ 6,680,163 $ 5,794,928 $ 885,235 $ — Short-term borrowings 200,027 200,027 192,801 7,226 — Long-term debt and mandatorily redeemable securities 71,251 71,305 — 71,305 — Subordinated notes 58,764 58,553 — 58,553 — Accrued interest payable 1,885 1,885 — 1,885 — Interest rate swaps 21,172 21,172 — 21,172 — Off-balance-sheet instruments * — 364 — 364 — * Represents estimated cash outflows required to currently settle the obligations at current market rates. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. These estimates are subjective in nature and require considerable judgment to interpret market data. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange, nor are they intended to represent the fair value of the Company as a whole. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of the respective balance sheet date. Although the Company is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying unaudited consolidated financial statements reflect all adjustments (all of which are normal and recurring in nature) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in shareholders’ equity, and cash flows for the periods presented. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been omitted. The Notes to the Consolidated Financial Statements appearing in 1st Source Corporation’s Annual Report on Form 10-K (2021 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Statement of Financial Condition at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements – Financial statements prepared in accordance with GAAP require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. |
Loans and Leases | Loans and Leases – Loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. Interest income is accrued as earned based on unpaid principal balances. Origination fees and direct loan and lease origination costs are deferred, and the net amount amortized to interest income over the estimated life of the related loan or lease. Loan commitment fees are deferred and amortized into other income over the commitment period. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, net of unamortized deferred lease origination fees and costs and unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Costs incurred as a direct result of closing lease transactions are capitalized and amortized over the life of the lease while all other initial direct costs are expensed immediately. Accrued interest is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses. The accrual of interest on loans and leases is discontinued when a loan or lease becomes contractually delinquent for 90 days, or when an individual analysis of a borrower’s credit worthiness indicates a credit should be placed on nonperforming status, except for residential mortgage loans and consumer loans that are well secured and in the process of collection. Residential mortgage loans are placed on nonaccrual at the time the loan is placed in foreclosure. When interest accruals are discontinued, interest credited to income in the current year is reversed and interest accrued in the prior year is charged to the allowance for loan and lease losses. However, in some cases, the Company may elect to continue the accrual of interest when the net realizable value of collateral is sufficient to cover the principal and accrued interest. When a loan or lease is classified as nonaccrual and the future collectability of the recorded loan or lease balance is doubtful, collections on interest and principal are applied as a reduction to principal outstanding. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, which is typically evidenced by a sustained repayment performance of at least six months. Loans and leases that have been modified and economic concessions have been granted to borrowers who have experienced financial difficulties are considered a troubled debt restructuring (TDR). These concessions typically result from the Company’s loss mitigation activities and may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities available-for-sale | The following table shows investment securities available-for-sale. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2022 U.S. Treasury and Federal agencies securities $ 1,137,278 $ 343 $ (56,676) $ 1,080,945 U.S. States and political subdivisions securities 102,459 145 (4,251) 98,353 Mortgage-backed securities — Federal agencies 700,666 394 (46,050) 655,010 Corporate debt securities 22,511 88 (74) 22,525 Foreign government and other securities 600 — (2) 598 Total debt securities available-for-sale $ 1,963,514 $ 970 $ (107,053) $ 1,857,431 December 31, 2021 U.S. Treasury and Federal agencies securities $ 1,093,780 $ 3,244 $ (13,018) $ 1,084,006 U.S. States and political subdivisions securities 95,700 1,130 (1,129) 95,701 Mortgage-backed securities — Federal agencies 663,441 4,745 (8,459) 659,727 Corporate debt securities 22,510 499 — 23,009 Foreign government and other securities 600 — (2) 598 Total debt securities available-for-sale $ 1,876,031 $ 9,618 $ (22,608) $ 1,863,041 |
Schedule of contractual maturities of investments in debt securities available-for-sale | The following table shows the contractual maturities of investments in debt securities available-for-sale at March 31, 2022. Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 99,452 $ 99,754 Due after one year through five years 1,073,137 1,018,725 Due after five years through ten years 89,899 83,636 Due after ten years 360 306 Mortgage-backed securities 700,666 655,010 Total debt securities available-for-sale $ 1,963,514 $ 1,857,431 |
Schedule of gross unrealized losses and fair value by investment category and age | The following table summarizes gross unrealized losses and fair value by investment category and age. At March 31, 2022, the Company’s available-for-sale securities portfolio consisted of 719 securities, 541 of which were in an unrealized loss position. Less than 12 Months 12 months or Longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2022 U.S. Treasury and Federal agencies securities $ 796,571 $ (40,683) $ 207,232 $ (15,993) $ 1,003,803 $ (56,676) U.S. States and political subdivisions securities 55,508 (2,367) 18,798 (1,884) 74,306 (4,251) Mortgage-backed securities - Federal agencies 486,975 (32,284) 133,048 (13,766) 620,023 (46,050) Corporate debt securities 8,109 (74) — — 8,109 (74) Foreign government and other securities 98 (2) — — 98 (2) Total debt securities available-for-sale $ 1,347,261 $ (75,410) $ 359,078 $ (31,643) $ 1,706,339 $ (107,053) December 31, 2021 U.S. Treasury and Federal agencies securities $ 789,536 $ (10,728) $ 84,191 $ (2,290) $ 873,727 $ (13,018) U.S. States and political subdivisions securities 39,585 (980) 4,875 (149) 44,460 (1,129) Mortgage-backed securities - Federal agencies 454,413 (7,312) 35,232 (1,147) 489,645 (8,459) Corporate debt securities — — — — — — Foreign government and other securities 598 (2) — — 598 (2) Total debt securities available-for-sale $ 1,284,132 $ (19,022) $ 124,298 $ (3,586) $ 1,408,430 $ (22,608) |
Schedule of gross realized gains and losses from securities available-for-sale portfolio | The following table shows the gross realized gains and losses from the available-for-sale debt securities portfolio. Realized gains and losses of all securities are computed using the specific identification cost basis. Three Months Ended (Dollars in thousands) 2022 2021 Gross realized gains $ — $ — Gross realized losses — — Net realized gains (losses) $ — $ — |
Loan and Lease Financings (Tabl
Loan and Lease Financings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination | The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of March 31, 2022. Term Loans and Leases by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 53,128 $ 190,821 $ 107,991 $ 50,957 $ 43,930 $ 32,145 $ 363,670 $ — $ 842,642 Grades 7-12 830 2,186 166 3,338 2,242 2,218 15,471 — 26,451 Total commercial and agricultural 53,958 193,007 108,157 54,295 46,172 34,363 379,141 — 869,093 Solar Grades 1-6 22,411 128,379 40,552 81,076 18,901 38,480 — — 329,799 Grades 7-12 — — 1,131 5,837 718 — — — 7,686 Total solar 22,411 128,379 41,683 86,913 19,619 38,480 — — 337,485 Auto and light truck Grades 1-6 113,310 284,748 108,645 62,013 20,163 10,471 — — 599,350 Grades 7-12 447 7,635 9,350 4,580 3,393 5,025 — — 30,430 Total auto and light truck 113,757 292,383 117,995 66,593 23,556 15,496 — — 629,780 Medium and heavy duty truck Grades 1-6 26,377 85,103 61,748 50,070 19,724 12,068 — — 255,090 Grades 7-12 — — — — — 187 — — 187 Total medium and heavy duty truck 26,377 85,103 61,748 50,070 19,724 12,255 — — 255,277 Aircraft Grades 1-6 142,120 344,528 273,403 73,079 42,434 65,511 6,861 — 947,936 Grades 7-12 1,894 — 633 — 4,342 2,235 — — 9,104 Total aircraft 144,014 344,528 274,036 73,079 46,776 67,746 6,861 — 957,040 Construction equipment Grades 1-6 113,680 287,695 166,178 90,462 37,171 13,924 22,965 3,387 735,462 Grades 7-12 22,419 9,659 2,424 3,158 765 48 — 2,037 40,510 Total construction equipment 136,099 297,354 168,602 93,620 37,936 13,972 22,965 5,424 775,972 Commercial real estate Grades 1-6 59,945 192,722 145,247 140,328 136,562 221,961 314 — 897,079 Grades 7-12 1,118 — 8,011 7,481 49 7,069 — — 23,728 Total commercial real estate 61,063 192,722 153,258 147,809 136,611 229,030 314 — 920,807 Residential real estate and home equity Performing 28,424 101,853 109,427 37,498 9,186 96,976 120,863 4,752 508,979 Nonperforming — — — — 14 1,097 243 204 1,558 Total residential real estate and home equity 28,424 101,853 109,427 37,498 9,200 98,073 121,106 4,956 510,537 Consumer Performing 19,637 52,972 20,840 13,816 6,521 2,073 21,987 — 137,846 Nonperforming — 11 55 37 28 35 — — 166 Total consumer $ 19,637 $ 52,983 $ 20,895 $ 13,853 $ 6,549 $ 2,108 $ 21,987 $ — $ 138,012 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2021. Term Loans and Leases by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 233,512 $ 123,947 $ 60,744 $ 55,231 $ 32,545 $ 20,184 $ 364,460 $ — $ 890,623 Grades 7-12 4,682 194 3,667 2,373 2,004 484 14,685 — 28,089 Total commercial and agricultural 238,194 124,141 64,411 57,604 34,549 20,668 379,145 — 918,712 Solar Grades 1-6 159,244 42,073 81,593 18,979 34,889 3,780 — — 340,558 Grades 7-12 — 1,138 5,882 724 — — — — 7,744 Total solar 159,244 43,211 87,475 19,703 34,889 3,780 — — 348,302 Auto and light truck Grades 1-6 331,105 122,709 72,580 24,965 11,814 901 — — 564,074 Grades 7-12 10,828 11,752 7,467 3,859 4,876 919 — — 39,701 Total auto and light truck 341,933 134,461 80,047 28,824 16,690 1,820 — — 603,775 Medium and heavy duty truck Grades 1-6 92,252 68,354 57,967 23,210 12,419 5,265 — — 259,467 Grades 7-12 — — — — — 273 — — 273 Total medium and heavy duty truck 92,252 68,354 57,967 23,210 12,419 5,538 — — 259,740 Aircraft Grades 1-6 384,895 290,897 85,916 45,848 47,025 29,435 4,844 — 888,860 Grades 7-12 1,141 649 — 4,670 454 2,627 — — 9,541 Total aircraft 386,036 291,546 85,916 50,518 47,479 32,062 4,844 — 898,401 Construction equipment Grades 1-6 314,044 201,032 109,029 47,693 13,501 5,031 18,937 4,594 713,861 Grades 7-12 26,650 8,709 1,983 797 80 — — 2,193 40,412 Total construction equipment 340,694 209,741 111,012 48,490 13,581 5,031 18,937 6,787 754,273 Commercial real estate Grades 1-6 230,701 150,144 146,374 141,838 126,642 112,243 391 — 908,333 Grades 7-12 218 5,921 7,159 491 6,208 1,011 — — 21,008 Total commercial real estate 230,919 156,065 153,533 142,329 132,850 113,254 391 — 929,341 Residential real estate and home equity Performing 105,345 114,682 41,185 9,706 11,720 89,646 122,281 4,555 499,120 Nonperforming — — — 13 421 655 293 88 1,470 Total residential real estate and home equity 105,345 114,682 41,185 9,719 12,141 90,301 122,574 4,643 500,590 Consumer Performing 58,866 24,307 17,031 8,284 2,263 697 21,378 — 132,826 Nonperforming 37 107 43 30 33 4 — — 254 Total consumer $ 58,903 $ 24,414 $ 17,074 $ 8,314 $ 2,296 $ 701 $ 21,378 $ — $ 133,080 |
Schedule of amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | The following table shows the amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status. (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due and Accruing Total Nonaccrual Total March 31, 2022 Commercial and agricultural $ 867,023 $ 503 $ 201 $ — $ 867,727 $ 1,366 $ 869,093 Solar 337,485 — — — 337,485 — 337,485 Auto and light truck 607,991 214 — — 608,205 21,575 629,780 Medium and heavy duty truck 254,896 194 — — 255,090 187 255,277 Aircraft 950,763 3,409 2,235 — 956,407 633 957,040 Construction equipment 766,210 2,452 — — 768,662 7,310 775,972 Commercial real estate 917,893 — — — 917,893 2,914 920,807 Residential real estate and home equity 508,270 556 153 274 509,253 1,284 510,537 Consumer 137,581 222 43 — 137,846 166 138,012 Total $ 5,348,112 $ 7,550 $ 2,632 $ 274 $ 5,358,568 $ 35,435 $ 5,394,003 December 31, 2021 Commercial and agricultural $ 916,659 $ — $ — $ — $ 916,659 $ 2,053 $ 918,712 Solar 348,302 — — — 348,302 — 348,302 Auto and light truck 579,605 — — — 579,605 24,170 603,775 Medium and heavy duty truck 259,467 — — — 259,467 273 259,740 Aircraft 894,092 1,130 2,530 — 897,752 649 898,401 Construction equipment 745,870 1,313 — — 747,183 7,090 754,273 Commercial real estate 926,345 — — — 926,345 2,996 929,341 Residential real estate and home equity 498,854 212 54 245 499,365 1,225 500,590 Consumer 132,464 332 30 4 132,830 250 133,080 Total $ 5,301,658 $ 2,987 $ 2,614 $ 249 $ 5,307,508 $ 38,706 $ 5,346,214 |
Schedule of recorded investment in loans and leases classified as troubled debt restructuring | The following table shows the recorded investment of loans and leases classified as troubled debt restructurings as of March 31, 2022 and December 31, 2021. (Dollars in thousands) March 31, December 31, Performing TDRs $ — $ 319 Nonperforming TDRs 5,965 6,742 Total TDRs $ 5,965 $ 7,061 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |
Schedule of changes in allowance for loan and lease losses, segregated by portfolio segment | The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the three months ended March 31, 2022 and 2021. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total March 31, 2022 Balance, beginning of period $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 Charge-offs — — — — — 48 — 4 165 217 Recoveries 4 — 65 — 316 — — 1 65 451 Net charge-offs (recoveries) (4) — (65) — (316) 48 — 3 100 (234) Provision (recovery of provision) 185 (168) (168) 34 2,024 416 (445) 137 218 2,233 Balance, end of period $ 15,598 $ 6,417 $ 19,521 $ 6,049 $ 35,968 $ 20,041 $ 19,246 $ 5,218 $ 1,901 $ 129,959 March 31, 2021 Balance, beginning of period $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 Charge-offs 1 — 4,286 — — 8 — 5 152 4,452 Recoveries 377 — 49 — 119 254 15 1 135 950 Net charge-offs (recoveries) (376) — 4,237 — (119) (246) (15) 4 17 3,502 Provision (recovery of provision) (1,605) 209 4,654 (129) 1,047 (3,103) 1,561 (207) (29) 2,398 Balance, end of period $ 15,451 $ 5,758 $ 29,343 $ 6,271 $ 35,219 $ 16,309 $ 24,334 $ 5,163 $ 1,702 $ 139,550 |
Schedule of changes in allowance for credit losses on unfunded loan commitments | The following table shows the changes in the liability for credit losses on unfunded loan commitments. Three Months Ended (Dollars in thousands) 2022 2021 Balance, beginning of period $ 4,196 $ 4,499 Provision 728 94 Balance, end of period $ 4,924 $ 4,593 |
Lease Investments (Tables)
Lease Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of the components of income from direct finance and operating lease equipment | The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. Three Months Ended (Dollars in thousands) 2022 2021 Direct finance leases: Interest income on lease receivable $ 1,781 $ 1,590 Operating leases: Income related to lease payments $ 3,662 $ 4,629 Depreciation expense 3,015 3,773 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of changes in carrying value of mortgage servicing rights and associated valuation allowance | The following table shows changes in the carrying value of MSRs and the associated valuation allowance. Three Months Ended (Dollars in thousands) 2022 2021 Mortgage servicing rights: Balance at beginning of period $ 4,671 $ 4,616 Additions 335 761 Amortization (381) (590) Carrying value before valuation allowance at end of period 4,625 4,787 Valuation allowance: Balance at beginning of period — (812) Impairment recoveries — 42 Balance at end of period $ — $ (770) Net carrying value of mortgage servicing rights at end of period $ 4,625 $ 4,017 Fair value of mortgage servicing rights at end of period $ 6,363 $ 4,365 |
Commitments and Financial Ins_2
Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of financial instruments whose contract amounts represent credit risk | The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) March 31, December 31, Amounts of commitments: Loan commitments to extend credit $ 1,204,428 $ 1,148,984 Standby letters of credit $ 22,765 $ 24,657 Commercial and similar letters of credit $ 746 $ 8,531 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of amounts of non-hedging derivative financial instruments | The following table shows the amounts of non-hedging derivative financial instruments. Asset derivatives Liability derivatives (Dollars in thousands) Notional or contractual amount Statement of Financial Condition classification Fair value Statement of Financial Condition classification Fair value March 31, 2022 Interest rate swap contracts $ 1,017,365 Other assets $ 7,806 Other liabilities $ 8,006 Loan commitments 13,422 Mortgages held for sale 287 N/A — Forward contracts - mortgage loan 13,080 Mortgages held for sale 200 N/A — Total $ 1,043,867 $ 8,293 $ 8,006 December 31, 2021 Interest rate swap contracts $ 1,064,721 Other assets $ 20,735 Other liabilities $ 21,172 Loan commitments 15,086 Mortgages held for sale 452 N/A — Forward contracts - mortgage loan 22,000 N/A — Mortgages held for sale 11 Total $ 1,101,807 $ 21,187 $ 21,183 |
Schedule of amounts included in the consolidated statements of income for non-hedging derivative financial instruments | The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended (Dollars in thousands) Statement of Income classification 2022 2021 Interest rate swap contracts Other expense $ 237 $ 333 Interest rate swap contracts Other income — 86 Loan commitments Mortgage banking (165) (698) Forward contracts - mortgage loan Mortgage banking 211 577 Total $ 283 $ 298 |
Schedule of offsetting of financial assets and derivative assets | The following table shows the offsetting of financial assets and derivative assets. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Financial Instruments Cash Collateral Received Net Amount March 31, 2022 Interest rate swaps $ 10,324 $ 2,518 $ 7,806 $ — $ 3,040 $ 4,766 December 31, 2021 Interest rate swaps $ 24,436 $ 3,701 $ 20,735 $ — $ — $ 20,735 |
Schedule of offsetting of financial liabilities and derivative liabilities | The following table shows the offsetting of financial liabilities and derivative liabilities. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount March 31, 2022 Interest rate swaps $ 10,524 $ 2,518 $ 8,006 $ 299 $ — $ 7,707 Repurchase agreements 193,798 — 193,798 193,798 — — Total $ 204,322 $ 2,518 $ 201,804 $ 194,097 $ — $ 7,707 December 31, 2021 Interest rate swaps $ 24,873 $ 3,701 $ 21,172 $ 20,498 $ — $ 674 Repurchase agreements 194,727 — 194,727 194,727 — — Total $ 219,600 $ 3,701 $ 215,899 $ 215,225 $ — $ 674 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Schedule of unconsolidated variable interest entities | The following table provides a summary of investments in affordable housing, community development and renewable energy VIEs that the Company has not consolidated. (Dollars in thousands) March 31, 2022 December 31, 2021 Investment carrying amount $ 26,391 $ 35,968 Unfunded capital and other commitments 19,668 29,670 Maximum exposure to loss 48,044 50,319 |
Summary of subordinated notes | The following table shows subordinated notes at March 31, 2022. (Dollars in thousands) Amount of Subordinated Notes Interest Rate Maturity Date June 2007 issuance (1) $ 41,238 7.22 % 6/15/2037 August 2007 issuance (2) 17,526 2.31 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month LIBOR +1.48% through remaining life of debt. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended (Dollars in thousands - except per share amounts) 2022 2021 Distributed earnings allocated to common stock $ 7,672 $ 7,364 Undistributed earnings allocated to common stock 19,516 20,531 Net earnings allocated to common stock 27,188 27,895 Net earnings allocated to participating securities 202 210 Net income allocated to common stock and participating securities $ 27,390 $ 28,105 Weighted average shares outstanding for basic earnings per common share 24,743,790 25,320,930 Dilutive effect of stock compensation — — Weighted average shares outstanding for diluted earnings per common share 24,743,790 25,320,930 Basic earnings per common share $ 1.10 $ 1.10 Diluted earnings per common share $ 1.10 $ 1.10 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of reclassifications out of accumulated other comprehensive income | The following table presents reclassifications out of accumulated other comprehensive income (loss) related to unrealized gains and losses on available-for-sale securities. Three Months Ended March 31, Affected Line Item in the Statements of Income (Dollars in thousands) 2022 2021 Realized gains included in net income $ — $ — Gains on investment securities available-for-sale — — Income before income taxes Tax effect — — Income tax expense Net of tax $ — $ — Net income |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair value measurements | |
Schedule of differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount | The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity. (Dollars in thousands) Fair value Aggregate Excess of fair value carrying amount over (under) unpaid principal March 31, 2022 Mortgages held for sale reported at fair value $ 4,757 $ 4,256 $ 501 (1) December 31, 2021 Mortgages held for sale reported at fair value $ 13,284 $ 12,456 $ 828 (1) (1) The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding. |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table shows the balance of assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 590,484 $ 490,461 $ — $ 1,080,945 U.S. States and political subdivisions securities — 93,824 4,529 98,353 Mortgage-backed securities — Federal agencies — 655,010 — 655,010 Corporate debt securities — 22,525 — 22,525 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 590,484 1,262,418 4,529 1,857,431 Mortgages held for sale — 4,757 — 4,757 Accrued income and other assets (interest rate swap agreements) — 7,806 — 7,806 Total $ 590,484 $ 1,274,981 $ 4,529 $ 1,869,994 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 8,006 $ — $ 8,006 Total $ — $ 8,006 $ — $ 8,006 December 31, 2021 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 561,950 $ 522,056 $ — $ 1,084,006 U.S. States and political subdivisions securities — 93,852 1,849 95,701 Mortgage-backed securities — Federal agencies — 659,727 — 659,727 Corporate debt securities — 23,009 — 23,009 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 561,950 1,299,242 1,849 1,863,041 Mortgages held for sale — 13,284 — 13,284 Accrued income and other assets (interest rate swap agreements) — 20,735 — 20,735 Total $ 561,950 $ 1,333,261 $ 1,849 $ 1,897,060 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,172 $ — $ 21,172 Total $ — $ 21,172 $ — $ 21,172 |
Schedule of changes in investment securities available-for-sale Level 3 assets measured at fair value on a recurring basis | The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2022 and 2021. (Dollars in thousands) U.S. States and Beginning balance January 1, 2022 $ 1,849 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (155) Purchases 3,000 Issuances — Sales — Settlements — Maturities (165) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2022 $ 4,529 Beginning January 1, 2021 $ 2,152 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (80) Purchases — Issuances — Sales — Settlements — Maturities (165) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2021 $ 1,907 |
Schedule of carrying value of assets measured at fair value on a non-recurring basis | The following table shows the carrying value of assets measured at fair value on a non-recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2022 Collateral-dependent impaired loans $ — $ — $ 986 $ 986 Accrued income and other assets (mortgage servicing rights) — — 4,625 4,625 Accrued income and other assets (repossessions) — — 73 73 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 5,684 $ 5,684 December 31, 2021 Collateral-dependent impaired loans $ — $ — $ 571 $ 571 Accrued income and other assets (mortgage servicing rights) — — 4,671 4,671 Accrued income and other assets (repossessions) — — 861 861 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 6,103 $ 6,103 |
Schedule of fair values of financial instruments | The following table shows the fair values of the Company’s financial instruments. (Dollars in thousands) Carrying or Contract Value Fair Value Level 1 Level 2 Level 3 March 31, 2022 Assets: Cash and due from banks $ 69,195 $ 69,195 $ 69,195 $ — $ — Federal funds sold and interest bearing deposits with other banks 347,697 347,697 347,697 — — Investment securities, available-for-sale 1,857,431 1,857,431 590,484 1,262,418 4,529 Other investments 25,538 25,538 25,538 — — Mortgages held for sale 4,757 4,757 — 4,757 — Loans and leases, net of allowance for loan and lease losses 5,264,044 5,280,472 — — 5,280,472 Mortgage servicing rights 4,625 6,363 — — 6,363 Accrued interest receivable 18,289 18,289 — 18,289 — Interest rate swaps 7,806 7,806 — 7,806 — Liabilities: Deposits $ 6,673,092 $ 6,666,398 $ 5,821,071 $ 845,327 $ — Short-term borrowings 199,158 199,158 192,146 7,012 — Long-term debt and mandatorily redeemable securities 69,563 68,258 — 68,258 — Subordinated notes 58,764 58,350 — 58,350 — Accrued interest payable 2,084 2,084 — 2,084 — Interest rate swaps 8,006 8,006 — 8,006 — Off-balance-sheet instruments * — 82 — 82 — December 31, 2021 Assets: Cash and due from banks $ 54,420 $ 54,420 $ 54,420 $ — $ — Federal funds sold and interest bearing deposits with other banks 470,767 470,767 470,767 — — Investment securities, available-for-sale 1,863,041 1,863,041 561,950 1,299,242 1,849 Other investments 27,189 27,189 27,189 — — Mortgages held for sale 13,284 13,284 — 13,284 — Loans and leases, net of allowance for loan and lease losses 5,218,722 5,269,551 — — 5,269,551 Mortgage servicing rights 4,671 5,640 — — 5,640 Accrued interest receivable 17,760 17,760 — 17,760 — Interest rate swaps 20,735 20,735 — 20,735 — Liabilities: Deposits $ 6,679,065 $ 6,680,163 $ 5,794,928 $ 885,235 $ — Short-term borrowings 200,027 200,027 192,801 7,226 — Long-term debt and mandatorily redeemable securities 71,251 71,305 — 71,305 — Subordinated notes 58,764 58,553 — 58,553 — Accrued interest payable 1,885 1,885 — 1,885 — Interest rate swaps 21,172 21,172 — 21,172 — Off-balance-sheet instruments * — 364 — 364 — * Represents estimated cash outflows required to currently settle the obligations at current market rates. |
Recurring | |
Fair value measurements | |
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis | The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average March 31, 2022 Debt securities available-for sale Direct placement municipal securities $ 4,529 Discounted cash flows Credit spread assumption 2.36% - 3.95% 2.88 % December 31, 2021 Debt securities available-for sale Direct placement municipal securities $ 1,849 Discounted cash flows Credit spread assumption 0.04% - 2.31% 1.58 % |
Non-recurring | |
Fair value measurements | |
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis | The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis. (Dollars in thousands) Carrying Value Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average March 31, 2022 Collateral-dependent impaired loans $ 986 $ 986 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 34.5 % Mortgage servicing rights 4,625 6,363 Discounted cash flows Constant prepayment rate (CPR) 10.2% - 17.4% 13.7 % Discount rate 9.8% - 12.6% 9.9 % Repossessions 73 241 Appraisals, trade publications and auction values Discount for lack of marketability 13% - 100% 70 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2021 Collateral-dependent impaired loans $ 571 $ 571 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 43.1 % Mortgage servicing rights 4,671 5,640 Discounted cash flows Constant prepayment rate (CPR) 11.8% - 18.5% 16.4 % Discount rate 8.6% - 11.5% 8.8 % Repossessions 861 942 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 21% 2 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % |
Accounting Policies (Details)
Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Summary of Significant Accounting Policies [Line Items] | |
Period of sustained performance required to change from non-performing to performing status | 6 months |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost | ||
Due in one year or less | $ 99,452 | |
Due after one year through five years | 1,073,137 | |
Due after five years through ten years | 89,899 | |
Due after ten years | 360 | |
Mortgage-backed securities | 700,666 | |
Total debt securities available-for-sale | 1,963,514 | $ 1,876,031 |
Contractual maturities of investments in debt securities available-for-sale, Fair Value | ||
Due in one year or less | 99,754 | |
Due after one year through five years | 1,018,725 | |
Due after five years through ten years | 83,636 | |
Due after ten years | 306 | |
Mortgage-backed securities | 655,010 | |
Total debt securities available-for-sale | 1,857,431 | 1,863,041 |
Accrued interest receivable on investment securities available-for-sale | 5,020 | 4,800 |
U.S. Treasury and Federal agencies securities | ||
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost | ||
Total debt securities available-for-sale | 1,137,278 | 1,093,780 |
Contractual maturities of investments in debt securities available-for-sale, Fair Value | ||
Total debt securities available-for-sale | 1,080,945 | 1,084,006 |
U.S. States and political subdivisions securities | ||
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost | ||
Total debt securities available-for-sale | 102,459 | 95,700 |
Contractual maturities of investments in debt securities available-for-sale, Fair Value | ||
Total debt securities available-for-sale | 98,353 | 95,701 |
Mortgage-backed securities - Federal agencies | ||
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost | ||
Total debt securities available-for-sale | 700,666 | 663,441 |
Contractual maturities of investments in debt securities available-for-sale, Fair Value | ||
Total debt securities available-for-sale | 655,010 | 659,727 |
Corporate debt securities | ||
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost | ||
Total debt securities available-for-sale | 22,511 | 22,510 |
Contractual maturities of investments in debt securities available-for-sale, Fair Value | ||
Total debt securities available-for-sale | 22,525 | 23,009 |
Foreign government and other securities | ||
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost | ||
Total debt securities available-for-sale | 600 | 600 |
Contractual maturities of investments in debt securities available-for-sale, Fair Value | ||
Total debt securities available-for-sale | $ 598 | $ 598 |
Investment Securities (Details
Investment Securities (Details 2) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Schedule Of Available For Sale Debt Securities [Line Items] | |||
Total debt securities available-for-sale | $ 1,963,514 | $ 1,876,031 | |
Gross Unrealized Gains | 970 | 9,618 | |
Gross Unrealized Losses | (107,053) | (22,608) | |
Investment securities available-for-sale | 1,857,431 | 1,863,041 | |
Fair Value | |||
Less than 12 Months | 1,347,261 | 1,284,132 | |
12 months or Longer | 359,078 | 124,298 | |
Total fair value | 1,706,339 | 1,408,430 | |
Unrealized Losses | |||
Less than 12 Months | (75,410) | (19,022) | |
12 months or Longer | (31,643) | (3,586) | |
Total unrealized losses | (107,053) | (22,608) | |
Gross realized gains and losses | |||
Gross realized gains | 0 | $ 0 | |
Gross realized losses | 0 | 0 | |
Net realized (losses) gains | 0 | $ 0 | |
Investment securities pledged as collateral | $ 331,280 | 351,130 | |
Number of available-for-sale debt securities | 719 | ||
Number of available-for-sale debt securities in an unrealized loss position | 541 | ||
U.S. Treasury and Federal agencies securities | |||
Schedule Of Available For Sale Debt Securities [Line Items] | |||
Total debt securities available-for-sale | $ 1,137,278 | 1,093,780 | |
Gross Unrealized Gains | 343 | 3,244 | |
Gross Unrealized Losses | (56,676) | (13,018) | |
Investment securities available-for-sale | 1,080,945 | 1,084,006 | |
Fair Value | |||
Less than 12 Months | 796,571 | 789,536 | |
12 months or Longer | 207,232 | 84,191 | |
Total fair value | 1,003,803 | 873,727 | |
Unrealized Losses | |||
Less than 12 Months | (40,683) | (10,728) | |
12 months or Longer | (15,993) | (2,290) | |
Total unrealized losses | (56,676) | (13,018) | |
U.S. States and political subdivisions securities | |||
Schedule Of Available For Sale Debt Securities [Line Items] | |||
Total debt securities available-for-sale | 102,459 | 95,700 | |
Gross Unrealized Gains | 145 | 1,130 | |
Gross Unrealized Losses | (4,251) | (1,129) | |
Investment securities available-for-sale | 98,353 | 95,701 | |
Fair Value | |||
Less than 12 Months | 55,508 | 39,585 | |
12 months or Longer | 18,798 | 4,875 | |
Total fair value | 74,306 | 44,460 | |
Unrealized Losses | |||
Less than 12 Months | (2,367) | (980) | |
12 months or Longer | (1,884) | (149) | |
Total unrealized losses | (4,251) | (1,129) | |
Mortgage-backed securities - Federal agencies | |||
Schedule Of Available For Sale Debt Securities [Line Items] | |||
Total debt securities available-for-sale | 700,666 | 663,441 | |
Gross Unrealized Gains | 394 | 4,745 | |
Gross Unrealized Losses | (46,050) | (8,459) | |
Investment securities available-for-sale | 655,010 | 659,727 | |
Fair Value | |||
Less than 12 Months | 486,975 | 454,413 | |
12 months or Longer | 133,048 | 35,232 | |
Total fair value | 620,023 | 489,645 | |
Unrealized Losses | |||
Less than 12 Months | (32,284) | (7,312) | |
12 months or Longer | (13,766) | (1,147) | |
Total unrealized losses | (46,050) | (8,459) | |
Corporate debt securities | |||
Schedule Of Available For Sale Debt Securities [Line Items] | |||
Total debt securities available-for-sale | 22,511 | 22,510 | |
Gross Unrealized Gains | 88 | 499 | |
Gross Unrealized Losses | (74) | 0 | |
Investment securities available-for-sale | 22,525 | 23,009 | |
Fair Value | |||
Less than 12 Months | 8,109 | 0 | |
12 months or Longer | 0 | 0 | |
Total fair value | 8,109 | 0 | |
Unrealized Losses | |||
Less than 12 Months | (74) | 0 | |
12 months or Longer | 0 | 0 | |
Total unrealized losses | (74) | 0 | |
Foreign government and other securities | |||
Schedule Of Available For Sale Debt Securities [Line Items] | |||
Total debt securities available-for-sale | 600 | 600 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (2) | (2) | |
Investment securities available-for-sale | 598 | 598 | |
Fair Value | |||
Less than 12 Months | 98 | 598 | |
12 months or Longer | 0 | 0 | |
Total fair value | 98 | 598 | |
Unrealized Losses | |||
Less than 12 Months | (2) | (2) | |
12 months or Longer | 0 | 0 | |
Total unrealized losses | $ (2) | $ (2) |
Loan and Lease Financings (Deta
Loan and Lease Financings (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)itemclass | Dec. 31, 2021USD ($) | |
Receivables [Abstract] | ||
Number of methods to assess credit risk | item | 2 | |
Loan and Lease Financings | ||
Number of methods to assess credit risk | item | 2 | |
PPP loan balance | $ 37,940,000 | |
PPP loans receivable deferred income | $ 1,240,000 | |
Number of domestic aircraft loan pools | class | 2 | |
Amortized cost of loans and leases | $ 5,394,003,000 | $ 5,346,214,000 |
Commercial and agricultural | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 53,958,000 | 238,194,000 |
Financing receivable originated one year prior to current fiscal year | 193,007,000 | 124,141,000 |
Financing receivable originated two years prior to current fiscal year | 108,157,000 | 64,411,000 |
Financing receivable originated three years prior to current fiscal year | 54,295,000 | 57,604,000 |
Financing receivable originated four years prior to current fiscal year | 46,172,000 | 34,549,000 |
Financing receivable originated five years or more prior to current fiscal year | 34,363,000 | 20,668,000 |
Revolving Loans | 379,141,000 | 379,145,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | $ 869,093,000 | 918,712,000 |
Commercial and agricultural | Minimum | ||
Loan and Lease Financings | ||
Expected life of underlying collateral | 3 years | |
Commercial and agricultural | Maximum | ||
Loan and Lease Financings | ||
Expected life of underlying collateral | 7 years | |
Solar | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | $ 22,411,000 | 159,244,000 |
Financing receivable originated one year prior to current fiscal year | 128,379,000 | 43,211,000 |
Financing receivable originated two years prior to current fiscal year | 41,683,000 | 87,475,000 |
Financing receivable originated three years prior to current fiscal year | 86,913,000 | 19,703,000 |
Financing receivable originated four years prior to current fiscal year | 19,619,000 | 34,889,000 |
Financing receivable originated five years or more prior to current fiscal year | 38,480,000 | 3,780,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 337,485,000 | 348,302,000 |
Auto and light truck | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 113,757,000 | 341,933,000 |
Financing receivable originated one year prior to current fiscal year | 292,383,000 | 134,461,000 |
Financing receivable originated two years prior to current fiscal year | 117,995,000 | 80,047,000 |
Financing receivable originated three years prior to current fiscal year | 66,593,000 | 28,824,000 |
Financing receivable originated four years prior to current fiscal year | 23,556,000 | 16,690,000 |
Financing receivable originated five years or more prior to current fiscal year | 15,496,000 | 1,820,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | $ 629,780,000 | 603,775,000 |
Auto and light truck | Minimum | ||
Loan and Lease Financings | ||
Loan amortization period | 18 months | |
Direct finance lease term | 3 years | |
Auto and light truck | Maximum | ||
Loan and Lease Financings | ||
Loan amortization period | 4 years | |
Direct finance lease term | 7 years | |
Medium and heavy duty truck | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | $ 26,377,000 | 92,252,000 |
Financing receivable originated one year prior to current fiscal year | 85,103,000 | 68,354,000 |
Financing receivable originated two years prior to current fiscal year | 61,748,000 | 57,967,000 |
Financing receivable originated three years prior to current fiscal year | 50,070,000 | 23,210,000 |
Financing receivable originated four years prior to current fiscal year | 19,724,000 | 12,419,000 |
Financing receivable originated five years or more prior to current fiscal year | 12,255,000 | 5,538,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | $ 255,277,000 | 259,740,000 |
Medium and heavy duty truck | Minimum | ||
Loan and Lease Financings | ||
Period of amortization to reach equity position in collateral | 3 years | |
Medium and heavy duty truck | Maximum | ||
Loan and Lease Financings | ||
Period of amortization to reach equity position in collateral | 4 years | |
Aircraft | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | $ 144,014,000 | 386,036,000 |
Financing receivable originated one year prior to current fiscal year | 344,528,000 | 291,546,000 |
Financing receivable originated two years prior to current fiscal year | 274,036,000 | 85,916,000 |
Financing receivable originated three years prior to current fiscal year | 73,079,000 | 50,518,000 |
Financing receivable originated four years prior to current fiscal year | 46,776,000 | 47,479,000 |
Financing receivable originated five years or more prior to current fiscal year | 67,746,000 | 32,062,000 |
Revolving Loans | 6,861,000 | 4,844,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | $ 957,040,000 | 898,401,000 |
Aircraft | Minimum | ||
Loan and Lease Financings | ||
Loan amortization period | 10 years | |
Aircraft | Maximum | ||
Loan and Lease Financings | ||
Loan amortization period | 15 years | |
Construction equipment | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | $ 136,099,000 | 340,694,000 |
Financing receivable originated one year prior to current fiscal year | 297,354,000 | 209,741,000 |
Financing receivable originated two years prior to current fiscal year | 168,602,000 | 111,012,000 |
Financing receivable originated three years prior to current fiscal year | 93,620,000 | 48,490,000 |
Financing receivable originated four years prior to current fiscal year | 37,936,000 | 13,581,000 |
Financing receivable originated five years or more prior to current fiscal year | 13,972,000 | 5,031,000 |
Revolving Loans | 22,965,000 | 18,937,000 |
Revolving Loans Converted to Term | 5,424,000 | 6,787,000 |
Amortized cost of loans and leases | 775,972,000 | 754,273,000 |
Commercial real estate | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 61,063,000 | 230,919,000 |
Financing receivable originated one year prior to current fiscal year | 192,722,000 | 156,065,000 |
Financing receivable originated two years prior to current fiscal year | 153,258,000 | 153,533,000 |
Financing receivable originated three years prior to current fiscal year | 147,809,000 | 142,329,000 |
Financing receivable originated four years prior to current fiscal year | 136,611,000 | 132,850,000 |
Financing receivable originated five years or more prior to current fiscal year | 229,030,000 | 113,254,000 |
Revolving Loans | 314,000 | 391,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 920,807,000 | 929,341,000 |
Residential real estate and home equity | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 28,424,000 | 105,345,000 |
Financing receivable originated one year prior to current fiscal year | 101,853,000 | 114,682,000 |
Financing receivable originated two years prior to current fiscal year | 109,427,000 | 41,185,000 |
Financing receivable originated three years prior to current fiscal year | 37,498,000 | 9,719,000 |
Financing receivable originated four years prior to current fiscal year | 9,200,000 | 12,141,000 |
Financing receivable originated five years or more prior to current fiscal year | 98,073,000 | 90,301,000 |
Revolving Loans | 121,106,000 | 122,574,000 |
Revolving Loans Converted to Term | 4,956,000 | 4,643,000 |
Amortized cost of loans and leases | 510,537,000 | 500,590,000 |
Consumer | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 19,637,000 | 58,903,000 |
Financing receivable originated one year prior to current fiscal year | 52,983,000 | 24,414,000 |
Financing receivable originated two years prior to current fiscal year | 20,895,000 | 17,074,000 |
Financing receivable originated three years prior to current fiscal year | 13,853,000 | 8,314,000 |
Financing receivable originated four years prior to current fiscal year | 6,549,000 | 2,296,000 |
Financing receivable originated five years or more prior to current fiscal year | 2,108,000 | 701,000 |
Revolving Loans | 21,987,000 | 21,378,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 138,012,000 | 133,080,000 |
Credit Quality Grades 1-6 | Commercial and agricultural | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 53,128,000 | 233,512,000 |
Financing receivable originated one year prior to current fiscal year | 190,821,000 | 123,947,000 |
Financing receivable originated two years prior to current fiscal year | 107,991,000 | 60,744,000 |
Financing receivable originated three years prior to current fiscal year | 50,957,000 | 55,231,000 |
Financing receivable originated four years prior to current fiscal year | 43,930,000 | 32,545,000 |
Financing receivable originated five years or more prior to current fiscal year | 32,145,000 | 20,184,000 |
Revolving Loans | 363,670,000 | 364,460,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 842,642,000 | 890,623,000 |
Credit Quality Grades 1-6 | Solar | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 22,411,000 | 159,244,000 |
Financing receivable originated one year prior to current fiscal year | 128,379,000 | 42,073,000 |
Financing receivable originated two years prior to current fiscal year | 40,552,000 | 81,593,000 |
Financing receivable originated three years prior to current fiscal year | 81,076,000 | 18,979,000 |
Financing receivable originated four years prior to current fiscal year | 18,901,000 | 34,889,000 |
Financing receivable originated five years or more prior to current fiscal year | 38,480,000 | 3,780,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 329,799,000 | 340,558,000 |
Credit Quality Grades 1-6 | Auto and light truck | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 113,310,000 | 331,105,000 |
Financing receivable originated one year prior to current fiscal year | 284,748,000 | 122,709,000 |
Financing receivable originated two years prior to current fiscal year | 108,645,000 | 72,580,000 |
Financing receivable originated three years prior to current fiscal year | 62,013,000 | 24,965,000 |
Financing receivable originated four years prior to current fiscal year | 20,163,000 | 11,814,000 |
Financing receivable originated five years or more prior to current fiscal year | 10,471,000 | 901,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 599,350,000 | 564,074,000 |
Credit Quality Grades 1-6 | Medium and heavy duty truck | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 26,377,000 | 92,252,000 |
Financing receivable originated one year prior to current fiscal year | 85,103,000 | 68,354,000 |
Financing receivable originated two years prior to current fiscal year | 61,748,000 | 57,967,000 |
Financing receivable originated three years prior to current fiscal year | 50,070,000 | 23,210,000 |
Financing receivable originated four years prior to current fiscal year | 19,724,000 | 12,419,000 |
Financing receivable originated five years or more prior to current fiscal year | 12,068,000 | 5,265,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 255,090,000 | 259,467,000 |
Credit Quality Grades 1-6 | Aircraft | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 142,120,000 | 384,895,000 |
Financing receivable originated one year prior to current fiscal year | 344,528,000 | 290,897,000 |
Financing receivable originated two years prior to current fiscal year | 273,403,000 | 85,916,000 |
Financing receivable originated three years prior to current fiscal year | 73,079,000 | 45,848,000 |
Financing receivable originated four years prior to current fiscal year | 42,434,000 | 47,025,000 |
Financing receivable originated five years or more prior to current fiscal year | 65,511,000 | 29,435,000 |
Revolving Loans | 6,861,000 | 4,844,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 947,936,000 | 888,860,000 |
Credit Quality Grades 1-6 | Construction equipment | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 113,680,000 | 314,044,000 |
Financing receivable originated one year prior to current fiscal year | 287,695,000 | 201,032,000 |
Financing receivable originated two years prior to current fiscal year | 166,178,000 | 109,029,000 |
Financing receivable originated three years prior to current fiscal year | 90,462,000 | 47,693,000 |
Financing receivable originated four years prior to current fiscal year | 37,171,000 | 13,501,000 |
Financing receivable originated five years or more prior to current fiscal year | 13,924,000 | 5,031,000 |
Revolving Loans | 22,965,000 | 18,937,000 |
Revolving Loans Converted to Term | 3,387,000 | 4,594,000 |
Amortized cost of loans and leases | 735,462,000 | 713,861,000 |
Credit Quality Grades 1-6 | Commercial real estate | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 59,945,000 | 230,701,000 |
Financing receivable originated one year prior to current fiscal year | 192,722,000 | 150,144,000 |
Financing receivable originated two years prior to current fiscal year | 145,247,000 | 146,374,000 |
Financing receivable originated three years prior to current fiscal year | 140,328,000 | 141,838,000 |
Financing receivable originated four years prior to current fiscal year | 136,562,000 | 126,642,000 |
Financing receivable originated five years or more prior to current fiscal year | 221,961,000 | 112,243,000 |
Revolving Loans | 314,000 | 391,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 897,079,000 | 908,333,000 |
Credit Quality Grades 7-12 | ||
Loan and Lease Financings | ||
Relationships reviewed quarterly as part of management's evaluation of the appropriateness of the allowance for loan and lease losses | 250,000 | |
Credit Quality Grades 7-12 | Commercial and agricultural | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 830,000 | 4,682,000 |
Financing receivable originated one year prior to current fiscal year | 2,186,000 | 194,000 |
Financing receivable originated two years prior to current fiscal year | 166,000 | 3,667,000 |
Financing receivable originated three years prior to current fiscal year | 3,338,000 | 2,373,000 |
Financing receivable originated four years prior to current fiscal year | 2,242,000 | 2,004,000 |
Financing receivable originated five years or more prior to current fiscal year | 2,218,000 | 484,000 |
Revolving Loans | 15,471,000 | 14,685,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 26,451,000 | 28,089,000 |
Credit Quality Grades 7-12 | Solar | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 0 | 0 |
Financing receivable originated one year prior to current fiscal year | 0 | 1,138,000 |
Financing receivable originated two years prior to current fiscal year | 1,131,000 | 5,882,000 |
Financing receivable originated three years prior to current fiscal year | 5,837,000 | 724,000 |
Financing receivable originated four years prior to current fiscal year | 718,000 | 0 |
Financing receivable originated five years or more prior to current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 7,686,000 | 7,744,000 |
Credit Quality Grades 7-12 | Auto and light truck | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 447,000 | 10,828,000 |
Financing receivable originated one year prior to current fiscal year | 7,635,000 | 11,752,000 |
Financing receivable originated two years prior to current fiscal year | 9,350,000 | 7,467,000 |
Financing receivable originated three years prior to current fiscal year | 4,580,000 | 3,859,000 |
Financing receivable originated four years prior to current fiscal year | 3,393,000 | 4,876,000 |
Financing receivable originated five years or more prior to current fiscal year | 5,025,000 | 919,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 30,430,000 | 39,701,000 |
Credit Quality Grades 7-12 | Medium and heavy duty truck | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 0 | 0 |
Financing receivable originated one year prior to current fiscal year | 0 | 0 |
Financing receivable originated two years prior to current fiscal year | 0 | 0 |
Financing receivable originated three years prior to current fiscal year | 0 | 0 |
Financing receivable originated four years prior to current fiscal year | 0 | 0 |
Financing receivable originated five years or more prior to current fiscal year | 187,000 | 273,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 187,000 | 273,000 |
Credit Quality Grades 7-12 | Aircraft | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 1,894,000 | 1,141,000 |
Financing receivable originated one year prior to current fiscal year | 0 | 649,000 |
Financing receivable originated two years prior to current fiscal year | 633,000 | 0 |
Financing receivable originated three years prior to current fiscal year | 0 | 4,670,000 |
Financing receivable originated four years prior to current fiscal year | 4,342,000 | 454,000 |
Financing receivable originated five years or more prior to current fiscal year | 2,235,000 | 2,627,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 9,104,000 | 9,541,000 |
Credit Quality Grades 7-12 | Construction equipment | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 22,419,000 | 26,650,000 |
Financing receivable originated one year prior to current fiscal year | 9,659,000 | 8,709,000 |
Financing receivable originated two years prior to current fiscal year | 2,424,000 | 1,983,000 |
Financing receivable originated three years prior to current fiscal year | 3,158,000 | 797,000 |
Financing receivable originated four years prior to current fiscal year | 765,000 | 80,000 |
Financing receivable originated five years or more prior to current fiscal year | 48,000 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 2,037,000 | 2,193,000 |
Amortized cost of loans and leases | 40,510,000 | 40,412,000 |
Credit Quality Grades 7-12 | Commercial real estate | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 1,118,000 | 218,000 |
Financing receivable originated one year prior to current fiscal year | 0 | 5,921,000 |
Financing receivable originated two years prior to current fiscal year | 8,011,000 | 7,159,000 |
Financing receivable originated three years prior to current fiscal year | 7,481,000 | 491,000 |
Financing receivable originated four years prior to current fiscal year | 49,000 | 6,208,000 |
Financing receivable originated five years or more prior to current fiscal year | 7,069,000 | 1,011,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | 23,728,000 | 21,008,000 |
Performing | Residential real estate and home equity | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 28,424,000 | 105,345,000 |
Financing receivable originated one year prior to current fiscal year | 101,853,000 | 114,682,000 |
Financing receivable originated two years prior to current fiscal year | 109,427,000 | 41,185,000 |
Financing receivable originated three years prior to current fiscal year | 37,498,000 | 9,706,000 |
Financing receivable originated four years prior to current fiscal year | 9,186,000 | 11,720,000 |
Financing receivable originated five years or more prior to current fiscal year | 96,976,000 | 89,646,000 |
Revolving Loans | 120,863,000 | 122,281,000 |
Revolving Loans Converted to Term | 4,752,000 | 4,555,000 |
Amortized cost of loans and leases | 508,979,000 | 499,120,000 |
Performing | Consumer | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 19,637,000 | 58,866,000 |
Financing receivable originated one year prior to current fiscal year | 52,972,000 | 24,307,000 |
Financing receivable originated two years prior to current fiscal year | 20,840,000 | 17,031,000 |
Financing receivable originated three years prior to current fiscal year | 13,816,000 | 8,284,000 |
Financing receivable originated four years prior to current fiscal year | 6,521,000 | 2,263,000 |
Financing receivable originated five years or more prior to current fiscal year | 2,073,000 | 697,000 |
Revolving Loans | 21,987,000 | 21,378,000 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | $ 137,846,000 | 132,826,000 |
Nonperforming | ||
Loan and Lease Financings | ||
Classification of nonperforming loans, threshold period past due | 90 days | |
Nonperforming | Residential real estate and home equity | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | $ 0 | 0 |
Financing receivable originated one year prior to current fiscal year | 0 | 0 |
Financing receivable originated two years prior to current fiscal year | 0 | 0 |
Financing receivable originated three years prior to current fiscal year | 0 | 13,000 |
Financing receivable originated four years prior to current fiscal year | 14,000 | 421,000 |
Financing receivable originated five years or more prior to current fiscal year | 1,097,000 | 655,000 |
Revolving Loans | 243,000 | 293,000 |
Revolving Loans Converted to Term | 204,000 | 88,000 |
Amortized cost of loans and leases | 1,558,000 | 1,470,000 |
Nonperforming | Consumer | ||
Loan and Lease Financings | ||
Financing receivable originated during current fiscal year | 0 | 37,000 |
Financing receivable originated one year prior to current fiscal year | 11,000 | 107,000 |
Financing receivable originated two years prior to current fiscal year | 55,000 | 43,000 |
Financing receivable originated three years prior to current fiscal year | 37,000 | 30,000 |
Financing receivable originated four years prior to current fiscal year | 28,000 | 33,000 |
Financing receivable originated five years or more prior to current fiscal year | 35,000 | 4,000 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Amortized cost of loans and leases | $ 166,000 | $ 254,000 |
Loan and Lease Financings (De_2
Loan and Lease Financings (Details 2) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
90 Days or More Past Due and Accruing | $ 274 | $ 249 |
Total Accruing Loans | 5,358,568 | 5,307,508 |
Nonaccrual | 35,435 | 38,706 |
Total loans and leases | 5,394,003 | 5,346,214 |
Accrued interest receivable on loans and leases | 13,110 | 12,940 |
Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 5,348,112 | 5,301,658 |
30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 7,550 | 2,987 |
60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 2,632 | 2,614 |
Commercial and agricultural | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 867,727 | 916,659 |
Nonaccrual | 1,366 | 2,053 |
Total loans and leases | 869,093 | 918,712 |
Commercial and agricultural | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 867,023 | 916,659 |
Commercial and agricultural | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 503 | 0 |
Commercial and agricultural | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 201 | 0 |
Solar | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 337,485 | 348,302 |
Nonaccrual | 0 | 0 |
Total loans and leases | 337,485 | 348,302 |
Solar | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 337,485 | 348,302 |
Solar | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Solar | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Auto and light truck | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 608,205 | 579,605 |
Nonaccrual | 21,575 | 24,170 |
Total loans and leases | 629,780 | 603,775 |
Auto and light truck | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 607,991 | 579,605 |
Auto and light truck | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 214 | 0 |
Auto and light truck | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Medium and heavy duty truck | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 255,090 | 259,467 |
Nonaccrual | 187 | 273 |
Total loans and leases | 255,277 | 259,740 |
Medium and heavy duty truck | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 254,896 | 259,467 |
Medium and heavy duty truck | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 194 | 0 |
Medium and heavy duty truck | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Aircraft | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 956,407 | 897,752 |
Nonaccrual | 633 | 649 |
Total loans and leases | 957,040 | 898,401 |
Aircraft | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 950,763 | 894,092 |
Aircraft | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 3,409 | 1,130 |
Aircraft | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 2,235 | 2,530 |
Construction equipment | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 768,662 | 747,183 |
Nonaccrual | 7,310 | 7,090 |
Total loans and leases | 775,972 | 754,273 |
Construction equipment | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 766,210 | 745,870 |
Construction equipment | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 2,452 | 1,313 |
Construction equipment | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Commercial real estate | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total Accruing Loans | 917,893 | 926,345 |
Nonaccrual | 2,914 | 2,996 |
Total loans and leases | 920,807 | 929,341 |
Commercial real estate | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 917,893 | 926,345 |
Commercial real estate | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Commercial real estate | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 0 | 0 |
Residential real estate and home equity | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
90 Days or More Past Due and Accruing | 274 | 245 |
Total Accruing Loans | 509,253 | 499,365 |
Nonaccrual | 1,284 | 1,225 |
Total loans and leases | 510,537 | 500,590 |
Residential real estate and home equity | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 508,270 | 498,854 |
Residential real estate and home equity | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 556 | 212 |
Residential real estate and home equity | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 153 | 54 |
Consumer | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
90 Days or More Past Due and Accruing | 0 | 4 |
Total Accruing Loans | 137,846 | 132,830 |
Nonaccrual | 166 | 250 |
Total loans and leases | 138,012 | 133,080 |
Consumer | Current | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 137,581 | 132,464 |
Consumer | 30 to 59 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | 222 | 332 |
Consumer | 60 to 89 Days Past Due | ||
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status | ||
Total loans and leases | $ 43 | $ 30 |
Loan and Lease Financings (De_3
Loan and Lease Financings (Details 4) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)itemdefault | Mar. 31, 2021itemdefault | Dec. 31, 2021USD ($) | |
Loans and leases classified as TDR | |||
Number of Modifications | item | 0 | 0 | |
Number of Defaults | default | 0 | 0 | |
Loans and leases classified as troubled debt restructuring | $ 5,965 | $ 7,061 | |
Troubled debt restructured loans and leases which had payment defaults within twelve months following modification | |||
Default threshold | 90 days | ||
Performing | |||
Loans and leases classified as TDR | |||
Loans and leases classified as troubled debt restructuring | $ 0 | 319 | |
Nonperforming | |||
Loans and leases classified as TDR | |||
Loans and leases classified as troubled debt restructuring | $ 5,965 | $ 6,742 | |
Interest Rate Below Market Reduction [Member] | |||
Loans and leases classified as TDR | |||
Number of Modifications | item | 0 | 0 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | |
Allowance for credit losses | ||
Number of classes existing in loan and lease portfolio | item | 9 | |
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | $ 127,492 | $ 140,654 |
Charge-offs | 217 | 4,452 |
Recoveries | 451 | 950 |
Net charge-offs (recoveries) | (234) | 3,502 |
Provision (recovery of provision) | 2,233 | 2,398 |
Balance at the end of the period | 129,959 | 139,550 |
Commercial and agricultural | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 15,409 | 16,680 |
Charge-offs | 0 | 1 |
Recoveries | 4 | 377 |
Net charge-offs (recoveries) | (4) | (376) |
Provision (recovery of provision) | 185 | (1,605) |
Balance at the end of the period | 15,598 | 15,451 |
Solar | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 6,585 | 5,549 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 |
Provision (recovery of provision) | (168) | 209 |
Balance at the end of the period | 6,417 | 5,758 |
Auto and light truck | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 19,624 | 28,926 |
Charge-offs | 0 | 4,286 |
Recoveries | 65 | 49 |
Net charge-offs (recoveries) | (65) | 4,237 |
Provision (recovery of provision) | (168) | 4,654 |
Balance at the end of the period | 19,521 | 29,343 |
Medium and heavy duty truck | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 6,015 | 6,400 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 |
Provision (recovery of provision) | 34 | (129) |
Balance at the end of the period | 6,049 | 6,271 |
Aircraft | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 33,628 | 34,053 |
Charge-offs | 0 | 0 |
Recoveries | 316 | 119 |
Net charge-offs (recoveries) | (316) | (119) |
Provision (recovery of provision) | 2,024 | 1,047 |
Balance at the end of the period | 35,968 | 35,219 |
Construction equipment | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 19,673 | 19,166 |
Charge-offs | 48 | 8 |
Recoveries | 0 | 254 |
Net charge-offs (recoveries) | 48 | (246) |
Provision (recovery of provision) | 416 | (3,103) |
Balance at the end of the period | 20,041 | 16,309 |
Commercial real estate | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 19,691 | 22,758 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 15 |
Net charge-offs (recoveries) | 0 | (15) |
Provision (recovery of provision) | (445) | 1,561 |
Balance at the end of the period | 19,246 | 24,334 |
Residential real estate and home equity | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 5,084 | 5,374 |
Charge-offs | 4 | 5 |
Recoveries | 1 | 1 |
Net charge-offs (recoveries) | 3 | 4 |
Provision (recovery of provision) | 137 | (207) |
Balance at the end of the period | 5,218 | 5,163 |
Consumer | ||
Changes in allowance for loan and lease losses | ||
Balance at the beginning of the period | 1,783 | 1,748 |
Charge-offs | 165 | 152 |
Recoveries | 65 | 135 |
Net charge-offs (recoveries) | 100 | 17 |
Provision (recovery of provision) | 218 | (29) |
Balance at the end of the period | $ 1,901 | $ 1,702 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Details 2) - Unfunded Loan Commitment - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for credit losses | ||
Balance, beginning of period | $ 4,196 | $ 4,499 |
Provision | 728 | 94 |
Balance, end of period | $ 4,924 | $ 4,593 |
Lease Investments (Details)
Lease Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Interest income on lease receivable | $ 1,781 | $ 1,590 |
Income related to lease payments | 3,662 | 4,629 |
Depreciation - leased equipment | 3,015 | 3,773 |
Income from reimbursements for personal property tax payments on operating leased equipment | 200 | 240 |
Expense for payments of personal property taxes on operating leased equipment | $ 200 | $ 240 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Residential mortgage loans | ||
Mortgage Servicing Rights | ||
Unpaid principal balance | $ 888,630 | $ 883,900 |
Mortgage Servicing Rights (De_2
Mortgage Servicing Rights (Details 2) - Residential mortgage loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in mortgage servicing assets | ||
Balance at the beginning of the period | $ 4,671 | $ 4,616 |
Additions | 335 | 761 |
Amortization | (381) | (590) |
Carrying value before valuation allowance at end of period | 4,625 | 4,787 |
Changes in valuation allowance | ||
Balance at the beginning of the period | 0 | (812) |
Impairment recoveries | 0 | 42 |
Balance at the end of the period | 0 | (770) |
Net carrying value of mortgage servicing rights at end of period | 4,625 | 4,017 |
Fair value of mortgage servicing rights at end of period | 6,363 | 4,365 |
Fair value of mortgage servicing rights exceeding the carrying value | 1,740 | 350 |
Mortgage loan contractual servicing fees, including late fees and ancillary income | $ 720 | $ 810 |
Commitments and Financial Ins_3
Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loan commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet instruments | $ 1,204,428 | $ 1,148,984 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet instruments | $ 22,765 | 24,657 |
Standby letters of credit | Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letter of credit term | 2 months | |
Standby letters of credit | Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letter of credit term | 1 year | |
Commercial and similar letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet instruments | $ 746 | $ 8,531 |
Commercial and similar letters of credit | Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letter of credit term | 2 months | |
Commercial and similar letters of credit | Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letter of credit term | 6 months |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Non-hedging derivative financial instruments | ||
Derivative Financial Instruments | ||
Notional or contractual amount | $ 1,043,867 | $ 1,101,807 |
Asset derivatives, Fair value | 8,293 | 21,187 |
Liability derivatives, Fair value | 8,006 | 21,183 |
Interest rate swap contracts | ||
Derivative Financial Instruments | ||
Asset derivatives, Fair value | 10,324 | 24,436 |
Interest rate swap contracts | Non-hedging derivative financial instruments | ||
Derivative Financial Instruments | ||
Notional or contractual amount | 1,017,365 | 1,064,721 |
Asset derivatives, Fair value | 7,806 | 20,735 |
Liability derivatives, Fair value | 8,006 | 21,172 |
Loan commitments | Non-hedging derivative financial instruments | ||
Derivative Financial Instruments | ||
Notional or contractual amount | 13,422 | 15,086 |
Asset derivatives, Fair value | 287 | 452 |
Liability derivatives, Fair value | 0 | 0 |
Forward contracts - mortgage loan | Non-hedging derivative financial instruments | ||
Derivative Financial Instruments | ||
Notional or contractual amount | 13,080 | 22,000 |
Asset derivatives, Fair value | 200 | 0 |
Liability derivatives, Fair value | $ 0 | $ 11 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 2) - Non-hedging derivative financial instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Financial Instruments | ||
Gain (loss) | $ 283 | $ 298 |
Interest rate swap contracts | Other expense | ||
Derivative Financial Instruments | ||
Gain (loss) | 237 | 333 |
Interest rate swap contracts | Other income | ||
Derivative Financial Instruments | ||
Gain (loss) | 0 | 86 |
Loan commitments | Mortgage banking income | ||
Derivative Financial Instruments | ||
Gain (loss) | (165) | (698) |
Forward contracts - mortgage loan | Mortgage banking income | ||
Derivative Financial Instruments | ||
Gain (loss) | $ 211 | $ 577 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 3) - Interest rate swaps - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting Assets | ||
Asset derivatives, Fair value | $ 10,324 | $ 24,436 |
Gross Amounts Offset in the Statement of Financial Position | 2,518 | 3,701 |
Net Amounts of Assets Presented in the Statement of Financial Position | 7,806 | 20,735 |
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Financial instruments | 0 | 0 |
Cash collateral received | 3,040 | 0 |
Net Amount | $ 4,766 | $ 20,735 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting of financial liabilities and derivative liabilities | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 204,322 | $ 219,600 |
Gross Amounts Offset in the Statement of Financial Position | 2,518 | 3,701 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 201,804 | 215,899 |
Gross amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 194,097 | 215,225 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 7,707 | 674 |
Interest rate swaps | ||
Offsetting of financial liabilities and derivative liabilities | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 10,524 | 24,873 |
Gross Amounts Offset in the Statement of Financial Position | 2,518 | 3,701 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 8,006 | 21,172 |
Derivative, Collateral, Right to Reclaim Securities | 299 | 20,498 |
Gross amounts Not Offset in the Statement of Financial Position | ||
Cash Collateral Pledged | 0 | 0 |
Net Amount | 7,707 | 674 |
Repurchase agreements | ||
Offsetting of financial liabilities and derivative liabilities | ||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 193,798 | 194,727 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 193,798 | 194,727 |
Gross amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | $ 193,798 | $ 194,727 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Details 5) - U.S. Treasury and Federal agencies securities - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements | $ 190,670 | $ 191,470 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Repurchase agreements | $ 3,130 | $ 3,260 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Subordinated Borrowing [Line Items] | |||
Federal tax credits recognized in tax expense | $ 500 | $ 500 | |
Investment tax credits | 0 | $ 1,920 | |
Investment carrying amount | 8,012,463 | $ 8,096,289 | |
Unfunded capital and other commitments | 7,092,993 | 7,126,825 | |
Maximum exposure to loss, unconsolidated VIEs | 48,044 | 50,319 | |
Variable interest entity, primary beneficiary | |||
Subordinated Borrowing [Line Items] | |||
Investment carrying amount | 67,850 | 59,080 | |
Unfunded capital and other commitments | 7,230 | 0 | |
Variable interest entity, not primary beneficiary | |||
Subordinated Borrowing [Line Items] | |||
Investment carrying amount | 26,391 | 35,968 | |
Unfunded capital and other commitments | $ 19,668 | $ 29,670 |
Variable Interest Entities (D_2
Variable Interest Entities (Details 2) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)trust | Dec. 31, 2021USD ($) | |
Variable Interest Entities [Abstract] | ||
Number of trusts sponsored | trust | 1 | |
Percentage of ownership interest | 100.00% | |
Subordinated Borrowing [Line Items] | ||
Amount of subordinated notes | $ 58,764 | $ 58,764 |
June 2007 issuance | ||
Subordinated Borrowing [Line Items] | ||
Amount of subordinated notes | $ 41,238 | |
Interest rate (as a percent) | 7.22% | |
Maturity date of subordinated notes | Jun. 15, 2037 | |
August 2007 issuance | ||
Subordinated Borrowing [Line Items] | ||
Amount of subordinated notes | $ 17,526 | |
Interest rate (as a percent) | 2.31% | |
Maturity date of subordinated notes | Sep. 15, 2037 | |
London Interbank Offered Rate (LIBOR) | August 2007 issuance | ||
Subordinated Borrowing [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.48% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Outstanding stock options (in shares) | 0 | 0 |
Distributed earnings allocated to common stock | $ 7,672 | $ 7,364 |
Undistributed earnings allocated to common stock | 19,516 | 20,531 |
Net earnings allocated to common stock | 27,188 | 27,895 |
Net earnings allocated to participating securities | 202 | 210 |
Net income available to common shareholders | $ 27,390 | $ 28,105 |
Weighted average shares outstanding for basic earnings per common share | 24,743,790 | 25,320,930 |
Dilutive effect of stock compensation (in shares) | 0 | 0 |
Weighted average shares outstanding for diluted earnings per common share | 24,743,790 | 25,320,930 |
Basic earnings per common share (in dollars per share) | $ 1.10 | $ 1.10 |
Diluted earnings per common share (in dollars per share) | $ 1.10 | $ 1.10 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)itemshares | Mar. 31, 2021USD ($)shares | |
Stock-based compensation | ||
Number of stock-based employee compensation plans | item | 4 | |
Number of executive stock award plans | item | 3 | |
Outstanding stock options (in shares) | 0 | 0 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ | $ 9,480 | |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 6 months 21 days | |
Stock options | ||
Stock-based compensation | ||
Total fair value of options vested and expensed | $ | $ 0 | $ 0 |
Outstanding stock options (in shares) | 0 | 0 |
Stock options exercised (in shares) | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassifications out of accumulated other comprehensive income | ||
Gains on investment securities available-for-sale | $ 0 | $ 0 |
Income tax expense | (7,793) | (8,637) |
Unrealized gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassifications out of accumulated other comprehensive income | ||
Gains on investment securities available-for-sale | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits that would affect the effective tax rate if recognized | $ 0 | $ 0 | |
Interest and penalties net of tax recognized | 0 | $ 0 | |
Accrued interest and penalties | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair value measurements | |||
Fair value carrying amount | $ 4,757 | $ 13,284 | |
Mortgages held for sale reported at fair value | |||
Fair value measurements | |||
Fair value carrying amount | 4,757 | 13,284 | |
Aggregate unpaid principal | 4,256 | 12,456 | |
Excess of fair value carrying amount over (under) unpaid principal | [1] | $ 501 | $ 828 |
[1] | The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding. |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair value measurements | ||
Investment securities available-for-sale | $ 1,857,431 | $ 1,863,041 |
Assets: | ||
Mortgages held for sale | 4,757 | 13,284 |
U.S. Treasury and Federal agencies securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 1,080,945 | 1,084,006 |
U.S. States and political subdivisions securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 98,353 | 95,701 |
Mortgage-backed securities - Federal agencies | ||
Fair value measurements | ||
Investment securities available-for-sale | 655,010 | 659,727 |
Corporate debt securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 22,525 | 23,009 |
Foreign government and other securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 598 | 598 |
Total | ||
Fair value measurements | ||
Investment securities available-for-sale | 1,857,431 | 1,863,041 |
Assets: | ||
Mortgages held for sale | 4,757 | 13,284 |
Level 1 | ||
Fair value measurements | ||
Investment securities available-for-sale | 590,484 | 561,950 |
Assets: | ||
Mortgages held for sale | 0 | 0 |
Level 2 | ||
Fair value measurements | ||
Investment securities available-for-sale | 1,262,418 | 1,299,242 |
Assets: | ||
Mortgages held for sale | 4,757 | 13,284 |
Level 3 | ||
Fair value measurements | ||
Investment securities available-for-sale | 4,529 | 1,849 |
Assets: | ||
Mortgages held for sale | 0 | 0 |
Recurring basis | Total | ||
Fair value measurements | ||
Investment securities available-for-sale | 1,857,431 | 1,863,041 |
Assets: | ||
Mortgages held for sale | 4,757 | 13,284 |
Total | 1,869,994 | 1,897,060 |
Liabilities: | ||
Total | 8,006 | 21,172 |
Recurring basis | Total | Interest rate swap contracts | ||
Assets: | ||
Accrued income and other assets | 7,806 | 20,735 |
Liabilities: | ||
Accrued expenses and other liabilities | 8,006 | 21,172 |
Recurring basis | Total | U.S. Treasury and Federal agencies securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 1,080,945 | 1,084,006 |
Recurring basis | Total | U.S. States and political subdivisions securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 98,353 | 95,701 |
Recurring basis | Total | Mortgage-backed securities - Federal agencies | ||
Fair value measurements | ||
Investment securities available-for-sale | 655,010 | 659,727 |
Recurring basis | Total | Corporate debt securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 22,525 | 23,009 |
Recurring basis | Total | Foreign government and other securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 598 | 598 |
Recurring basis | Level 1 | ||
Fair value measurements | ||
Investment securities available-for-sale | 590,484 | 561,950 |
Assets: | ||
Mortgages held for sale | 0 | 0 |
Total | 590,484 | 561,950 |
Liabilities: | ||
Total | 0 | 0 |
Recurring basis | Level 1 | Interest rate swap contracts | ||
Assets: | ||
Accrued income and other assets | 0 | 0 |
Liabilities: | ||
Accrued expenses and other liabilities | 0 | 0 |
Recurring basis | Level 1 | U.S. Treasury and Federal agencies securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 590,484 | 561,950 |
Recurring basis | Level 1 | U.S. States and political subdivisions securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 1 | Mortgage-backed securities - Federal agencies | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 1 | Corporate debt securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 1 | Foreign government and other securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 2 | ||
Fair value measurements | ||
Investment securities available-for-sale | 1,262,418 | 1,299,242 |
Assets: | ||
Mortgages held for sale | 4,757 | 13,284 |
Total | 1,274,981 | 1,333,261 |
Liabilities: | ||
Total | 8,006 | 21,172 |
Recurring basis | Level 2 | Interest rate swap contracts | ||
Assets: | ||
Accrued income and other assets | 7,806 | 20,735 |
Liabilities: | ||
Accrued expenses and other liabilities | 8,006 | 21,172 |
Recurring basis | Level 2 | U.S. Treasury and Federal agencies securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 490,461 | 522,056 |
Recurring basis | Level 2 | U.S. States and political subdivisions securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 93,824 | 93,852 |
Recurring basis | Level 2 | Mortgage-backed securities - Federal agencies | ||
Fair value measurements | ||
Investment securities available-for-sale | 655,010 | 659,727 |
Recurring basis | Level 2 | Corporate debt securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 22,525 | 23,009 |
Recurring basis | Level 2 | Foreign government and other securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 598 | 598 |
Recurring basis | Level 3 | ||
Fair value measurements | ||
Investment securities available-for-sale | 4,529 | 1,849 |
Assets: | ||
Mortgages held for sale | 0 | 0 |
Total | 4,529 | 1,849 |
Liabilities: | ||
Total | 0 | 0 |
Recurring basis | Level 3 | Interest rate swap contracts | ||
Assets: | ||
Accrued income and other assets | 0 | 0 |
Liabilities: | ||
Accrued expenses and other liabilities | 0 | 0 |
Recurring basis | Level 3 | U.S. Treasury and Federal agencies securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 3 | U.S. States and political subdivisions securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 4,529 | 1,849 |
Recurring basis | Level 3 | Mortgage-backed securities - Federal agencies | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 3 | Corporate debt securities | ||
Fair value measurements | ||
Investment securities available-for-sale | 0 | 0 |
Recurring basis | Level 3 | Foreign government and other securities | ||
Fair value measurements | ||
Investment securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the fair value of Level 3 assets measured on a recurring basis | ||
Total gains or losses (unrealized): included in earnings | $ 0 | $ 0 |
U.S. States and political subdivisions securities | ||
Changes in the fair value of Level 3 assets measured on a recurring basis | ||
Balance at the beginning of the period | 1,849 | 2,152 |
Total gains or losses (realized/unrealized): included in earnings | 0 | 0 |
Total gains or losses (realized/unrealized): included in other comprehensive income (loss) | (155) | (80) |
Purchases | 3,000 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Maturities | (165) | (165) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at the end of the period | $ 4,529 | $ 1,907 |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details 4) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Valuation Methodology | ||
Investment securities, available-for-sale | $ 1,857,431 | $ 1,863,041 |
Level 3 | ||
Valuation Methodology | ||
Investment securities, available-for-sale | 4,529 | 1,849 |
Recurring | Level 3 | ||
Valuation Methodology | ||
Investment securities, available-for-sale | 4,529 | 1,849 |
Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | ||
Valuation Methodology | ||
Investment securities, available-for-sale | $ 4,529 | $ 1,849 |
Discount for lack of marketability | Non-recurring | Level 3 | Trade publications | Aircraft | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.10 | |
Discount for lack of marketability | Non-recurring | Level 3 | Auction values | Autos | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.10 | |
Discount for lack of marketability | Non-recurring | Level 3 | Trade publications and auction values | Medium and heavy duty trucks | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.15 | |
Discount for lack of marketability | Non-recurring | Level 3 | Trade publications and auction values | Construction equipment | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.20 | |
Discount for lack of marketability | Non-recurring | Level 3 | Appraisals | Real estate | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.20 | |
Credit spread assumption | Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | Minimum | ||
Unobservable Inputs | ||
Debt securities available-for-sale unobservable inputs (as a percent) | 0.0236 | 0.0004 |
Credit spread assumption | Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | Maximum | ||
Unobservable Inputs | ||
Debt securities available-for-sale unobservable inputs (as a percent) | 0.0395 | 0.0231 |
Credit spread assumption | Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | Weighted Average | ||
Unobservable Inputs | ||
Debt securities available-for-sale unobservable inputs (as a percent) | 0.0288 | 0.0158 |
Receivables | Discount for lack of marketability | Non-recurring | Level 3 | Commercial loans | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.20 | |
Inventory | Discount for lack of marketability | Non-recurring | Level 3 | Minimum | Commercial loans | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.40 | |
Inventory | Discount for lack of marketability | Non-recurring | Level 3 | Maximum | Commercial loans | ||
Unobservable Inputs | ||
Discount rate (as a percent) | 0.75 |
Fair Value Measurements (Deta_5
Fair Value Measurements (Details 5) - Non-recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Impaired loans | ||
Fair value measurements | ||
Impairment charges | $ 0 | |
Mortgage servicing rights | ||
Fair value measurements | ||
Impairment recoveries | 0 | |
Repossessions | ||
Fair value measurements | ||
Impairment charges | 0 | |
Other real estate | ||
Fair value measurements | ||
Impairment charges | 0 | |
Total | ||
Fair value measurements | ||
Impaired loans - collateral based | 986 | $ 571 |
Assets measured at fair value | 5,684 | 6,103 |
Total | Mortgage servicing rights | ||
Fair value measurements | ||
Accrued income and other assets | 4,625 | 4,671 |
Total | Repossessions | ||
Fair value measurements | ||
Accrued income and other assets | 73 | 861 |
Total | Other real estate | ||
Fair value measurements | ||
Accrued income and other assets | 0 | 0 |
Level 3 | ||
Fair value measurements | ||
Impaired loans - collateral based | 986 | 571 |
Assets measured at fair value | 5,684 | 6,103 |
Level 3 | Mortgage servicing rights | ||
Fair value measurements | ||
Accrued income and other assets | 4,625 | 4,671 |
Level 3 | Repossessions | ||
Fair value measurements | ||
Accrued income and other assets | 73 | 861 |
Level 3 | Other real estate | ||
Fair value measurements | ||
Accrued income and other assets | $ 0 | $ 0 |
Fair Value Measurements (Deta_6
Fair Value Measurements (Details 6) - Non-recurring $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Level 3 | ||
Valuation Methodology | ||
Assets measured at fair value | $ 5,684 | $ 6,103 |
Carrying Value | Level 3 | Collateral based measurements | Impaired loans | ||
Valuation Methodology | ||
Assets measured at fair value | 986 | 571 |
Carrying Value | Level 3 | Discounted cash flows | Mortgage servicing rights | ||
Valuation Methodology | ||
Assets measured at fair value | 4,625 | 4,671 |
Carrying Value | Level 3 | Appraisals trade publications and auction values | Repossessions | ||
Valuation Methodology | ||
Assets measured at fair value | 73 | 861 |
Carrying Value | Level 3 | Appraisals | Other real estate | ||
Valuation Methodology | ||
Assets measured at fair value | 0 | 0 |
Fair Value | ||
Valuation Methodology | ||
Assets measured at fair value | 5,684 | 6,103 |
Fair Value | Level 3 | Collateral based measurements | Impaired loans | ||
Valuation Methodology | ||
Assets measured at fair value | 986 | 571 |
Fair Value | Level 3 | Discounted cash flows | Mortgage servicing rights | ||
Valuation Methodology | ||
Assets measured at fair value | 6,363 | 5,640 |
Fair Value | Level 3 | Appraisals trade publications and auction values | Repossessions | ||
Valuation Methodology | ||
Assets measured at fair value | 241 | 942 |
Fair Value | Level 3 | Appraisals | Other real estate | ||
Valuation Methodology | ||
Assets measured at fair value | $ 0 | $ 0 |
Discount for lack of marketability and current conditions | Level 3 | Collateral based measurements | Impaired loans | Minimum | ||
Unobservable Inputs | ||
Impaired loans unobservable inputs (as a percent) | 0.20 | 0.20 |
Discount for lack of marketability and current conditions | Level 3 | Collateral based measurements | Impaired loans | Maximum | ||
Unobservable Inputs | ||
Impaired loans unobservable inputs (as a percent) | 0.90 | 0.90 |
Discount for lack of marketability and current conditions | Level 3 | Collateral based measurements | Impaired loans | Weighted Average | ||
Unobservable Inputs | ||
Impaired loans unobservable inputs (as a percent) | 0.345 | 0.431 |
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Minimum | ||
Unobservable Inputs | ||
Mortgage servicing rights unobservable inputs (as a percent) | 0.102 | 0.118 |
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Maximum | ||
Unobservable Inputs | ||
Mortgage servicing rights unobservable inputs (as a percent) | 0.174 | 0.185 |
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Weighted Average | ||
Unobservable Inputs | ||
Mortgage servicing rights unobservable inputs (as a percent) | 0.137 | 0.164 |
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Minimum | ||
Unobservable Inputs | ||
Mortgage servicing rights unobservable inputs (as a percent) | 0.098 | 0.086 |
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Maximum | ||
Unobservable Inputs | ||
Mortgage servicing rights unobservable inputs (as a percent) | 0.126 | 0.115 |
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Weighted Average | ||
Unobservable Inputs | ||
Mortgage servicing rights unobservable inputs (as a percent) | 0.099 | 0.088 |
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Minimum | ||
Unobservable Inputs | ||
Repossessions unobservable inputs (as a percent) | 0.13 | 0 |
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Maximum | ||
Unobservable Inputs | ||
Repossessions unobservable inputs (as a percent) | 1 | 0.21 |
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Weighted Average | ||
Unobservable Inputs | ||
Repossessions unobservable inputs (as a percent) | 0.70 | 0.02 |
Discount for lack of marketability | Level 3 | Appraisals | Other real estate | Minimum | ||
Unobservable Inputs | ||
Other real estate unobservable inputs (as a percent) | 0 | 0 |
Discount for lack of marketability | Level 3 | Appraisals | Other real estate | Maximum | ||
Unobservable Inputs | ||
Other real estate unobservable inputs (as a percent) | 0 | 0 |
Discount for lack of marketability | Level 3 | Appraisals | Other real estate | Weighted Average | ||
Unobservable Inputs | ||
Other real estate unobservable inputs (as a percent) | 0 | 0 |
Fair Value Measurements (Deta_7
Fair Value Measurements (Details 7) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and due from banks | $ 69,195 | $ 54,420 |
Federal funds sold and interest bearing deposits with other banks | 347,697 | 470,767 |
Investment securities available-for-sale | 1,857,431 | 1,863,041 |
Other investments | 25,538 | 27,189 |
Mortgages held for sale | 4,757 | 13,284 |
Loans and leases, net of allowance for loan and lease losses | 5,264,044 | 5,218,722 |
Liabilities: | ||
Long-term debt and mandatorily redeemable securities | 69,563 | 71,251 |
Subordinated notes | 58,764 | 58,764 |
Carrying or Contract Value | ||
Assets: | ||
Cash and due from banks | 69,195 | 54,420 |
Federal funds sold and interest bearing deposits with other banks | 347,697 | 470,767 |
Investment securities available-for-sale | 1,857,431 | 1,863,041 |
Other investments | 25,538 | 27,189 |
Mortgages held for sale | 4,757 | 13,284 |
Loans and leases, net of allowance for loan and lease losses | 5,264,044 | 5,218,722 |
Mortgage servicing rights | 4,625 | 4,671 |
Accrued interest receivable | 18,289 | 17,760 |
Interest rate swaps | 7,806 | 20,735 |
Liabilities: | ||
Deposits | 6,673,092 | 6,679,065 |
Short-term borrowings | 199,158 | 200,027 |
Long-term debt and mandatorily redeemable securities | 69,563 | 71,251 |
Subordinated notes | 58,764 | 58,764 |
Accrued interest payable | 2,084 | 1,885 |
Interest rate swaps | 8,006 | 21,172 |
Off-balance-sheet instruments | 0 | 0 |
Fair Value | ||
Assets: | ||
Cash and due from banks | 69,195 | 54,420 |
Federal funds sold and interest bearing deposits with other banks | 347,697 | 470,767 |
Investment securities available-for-sale | 1,857,431 | 1,863,041 |
Other investments | 25,538 | 27,189 |
Mortgages held for sale | 4,757 | 13,284 |
Loans and leases, net of allowance for loan and lease losses | 5,280,472 | 5,269,551 |
Mortgage servicing rights | 6,363 | 5,640 |
Accrued interest receivable | 18,289 | 17,760 |
Interest rate swaps | 7,806 | 20,735 |
Liabilities: | ||
Deposits | 6,666,398 | 6,680,163 |
Short-term borrowings | 199,158 | 200,027 |
Long-term debt and mandatorily redeemable securities | 68,258 | 71,305 |
Subordinated notes | 58,350 | 58,553 |
Accrued interest payable | 2,084 | 1,885 |
Interest rate swaps | 8,006 | 21,172 |
Off-balance-sheet instruments | 82 | 364 |
Level 1 | ||
Assets: | ||
Cash and due from banks | 69,195 | 54,420 |
Federal funds sold and interest bearing deposits with other banks | 347,697 | 470,767 |
Investment securities available-for-sale | 590,484 | 561,950 |
Other investments | 25,538 | 27,189 |
Mortgages held for sale | 0 | 0 |
Loans and leases, net of allowance for loan and lease losses | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Liabilities: | ||
Deposits | 5,821,071 | 5,794,928 |
Short-term borrowings | 192,146 | 192,801 |
Long-term debt and mandatorily redeemable securities | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Off-balance-sheet instruments | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and interest bearing deposits with other banks | 0 | 0 |
Investment securities available-for-sale | 1,262,418 | 1,299,242 |
Other investments | 0 | 0 |
Mortgages held for sale | 4,757 | 13,284 |
Loans and leases, net of allowance for loan and lease losses | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 18,289 | 17,760 |
Interest rate swaps | 7,806 | 20,735 |
Liabilities: | ||
Deposits | 845,327 | 885,235 |
Short-term borrowings | 7,012 | 7,226 |
Long-term debt and mandatorily redeemable securities | 68,258 | 71,305 |
Subordinated notes | 58,350 | 58,553 |
Accrued interest payable | 2,084 | 1,885 |
Interest rate swaps | 8,006 | 21,172 |
Off-balance-sheet instruments | 82 | 364 |
Level 3 | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold and interest bearing deposits with other banks | 0 | 0 |
Investment securities available-for-sale | 4,529 | 1,849 |
Other investments | 0 | 0 |
Mortgages held for sale | 0 | 0 |
Loans and leases, net of allowance for loan and lease losses | 5,280,472 | 5,269,551 |
Mortgage servicing rights | 6,363 | 5,640 |
Accrued interest receivable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt and mandatorily redeemable securities | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Off-balance-sheet instruments | $ 0 | $ 0 |