Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Entity File Number | 000-10537 | |
Entity Registrant Name | OLD SECOND BANCORP INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3143493 | |
Entity Address, Address Line One | 37 South River Street | |
Entity Address, City or Town | Aurora | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60507 | |
City Area Code | 630 | |
Local Phone Number | 892-0202 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | OSBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,697,917 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000357173 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 55,548 | $ 56,632 |
Interest earning deposits with financial institutions | 53,485 | 58,545 |
Cash and cash equivalents | 109,033 | 115,177 |
Securities available-for-sale, at fair value | 1,229,618 | 1,539,359 |
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock | 35,830 | 20,530 |
Loans held-for-sale | 2,297 | 491 |
Loans | 4,029,543 | 3,869,609 |
Less: allowance for credit losses on loans | 51,729 | 49,480 |
Net loans | 3,977,814 | 3,820,129 |
Premises and equipment, net | 76,472 | 72,355 |
Other real estate owned | 407 | 1,561 |
Mortgage servicing rights, at fair value | 11,461 | 11,189 |
Goodwill | 86,478 | 86,478 |
Core deposit intangible | 11,820 | 13,678 |
Bank-owned life insurance ("BOLI") | 108,187 | 106,608 |
Deferred tax assets, net | 44,051 | 44,750 |
Other assets | 64,688 | 56,012 |
Total assets | 5,758,156 | 5,888,317 |
Deposits: | ||
Noninterest bearing demand | 1,862,659 | 2,051,702 |
Interest bearing: | ||
Savings, NOW, and money market | 2,273,671 | 2,617,100 |
Time | 477,990 | 441,921 |
Total deposits | 4,614,320 | 5,110,723 |
Securities sold under repurchase agreements | 25,894 | 32,156 |
Other short-term borrowings | 435,000 | 90,000 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,361 | 59,297 |
Senior notes | 44,585 | |
Notes payable and other borrowings | 9,000 | |
Other liabilities | 65,250 | 55,642 |
Total liabilities | 5,225,598 | 5,427,176 |
Stockholders' Equity | ||
Common stock | 44,705 | 44,705 |
Additional paid-in capital | 201,553 | 202,276 |
Retained earnings | 377,320 | 310,512 |
Accumulated other comprehensive loss | (90,619) | (93,124) |
Treasury stock | (401) | (3,228) |
Total stockholders' equity | 532,558 | 461,141 |
Total liabilities and stockholders' equity | $ 5,758,156 | $ 5,888,317 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Common stock, Par value (in dollars per share) | $ 1 | $ 1 |
Common stock, Shares authorized | 60,000,000 | 60,000,000 |
Common stock, Shares issued | 44,705,150 | 44,705,150 |
Common stock, Shares outstanding | 44,684,987 | 44,582,311 |
Treasury stock, Shares | 20,163 | 122,839 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income | ||||
Loans, including fees | $ 62,665 | $ 46,614 | $ 181,436 | $ 121,209 |
Loans held-for-sale | 29 | 22 | 60 | 111 |
Securities: | ||||
Taxable | 8,946 | 9,116 | 29,611 | 21,071 |
Tax exempt | 1,333 | 1,332 | 4,007 | 3,946 |
Dividends from FHLBC and FRBC stock | 597 | 261 | 1,273 | 677 |
Interest bearing deposits with financial institutions | 659 | 663 | 1,887 | 1,714 |
Total interest and dividend income | 74,229 | 58,008 | 218,274 | 148,728 |
Interest expense | ||||
Savings, NOW, and money market deposits | 2,558 | 380 | 5,449 | 1,124 |
Time deposits | 1,982 | 335 | 3,802 | 877 |
Securities sold under repurchase agreements | 27 | 10 | 43 | 30 |
Other short-term borrowings | 5,840 | 44 | 13,345 | 44 |
Junior subordinated debentures | 245 | 285 | 805 | 849 |
Subordinated debentures | 547 | 546 | 1,639 | 1,639 |
Senior notes | 728 | 2,408 | 1,791 | |
Notes payable and other borrowings | 111 | 87 | 309 | |
Total interest expense | 11,199 | 2,439 | 27,578 | 6,663 |
Net interest and dividend income | 63,030 | 55,569 | 190,696 | 142,065 |
Provision for credit losses | 3,000 | 4,500 | 8,501 | 5,050 |
Net interest and dividend income after provision for credit losses | 60,030 | 51,069 | 182,195 | 137,015 |
Noninterest income | ||||
Mortgage servicing rights mark to market gain (loss) | 281 | 548 | (148) | 3,608 |
Net gain on sales of mortgage loans | 407 | 449 | 1,111 | 1,682 |
Securities losses, net | (924) | (1) | (4,146) | (34) |
Change in cash surrender value of BOLI | 919 | 146 | 1,579 | 342 |
Card related income | 2,606 | 2,653 | 7,540 | 8,194 |
Other income | 1,024 | 2,165 | 3,286 | 3,949 |
Total noninterest income | 9,877 | 11,496 | 25,450 | 34,170 |
Noninterest expense | ||||
Salaries and employee benefits | 23,115 | 21,011 | 67,161 | 62,310 |
Occupancy, furniture and equipment | 3,506 | 4,119 | 10,620 | 10,864 |
Computer and data processing | 1,922 | 2,543 | 4,986 | 12,817 |
FDIC insurance | 744 | 659 | 2,122 | 1,771 |
Net teller & bill paying | 534 | 504 | 1,551 | 3,245 |
General bank insurance | 300 | 257 | 911 | 923 |
Amortization of core deposit intangible | 616 | 657 | 1,858 | 1,981 |
Advertising expense | 93 | 83 | 338 | 459 |
Card related expense | 1,347 | 1,453 | 3,785 | 3,044 |
Legal fees | 97 | 212 | 699 | 648 |
Consulting & management fees | 549 | 607 | 1,859 | 1,746 |
Other real estate (income) expense, net | (27) | 21 | 181 | 96 |
Other expense | 4,627 | 3,862 | 12,104 | 11,585 |
Total noninterest expense | 37,423 | 35,988 | 108,175 | 111,489 |
Income before income taxes | 32,484 | 26,577 | 99,470 | 59,696 |
Provision for income taxes | 8,149 | 7,054 | 25,966 | 15,906 |
Net income | $ 24,335 | $ 19,523 | $ 73,504 | $ 43,790 |
Basic earnings per share | $ 0.55 | $ 0.43 | $ 1.65 | $ 0.98 |
Diluted earnings per share | 0.54 | 0.43 | 1.62 | 0.97 |
Dividends declared per share | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Wealth management | ||||
Noninterest income | ||||
Service charges on deposits | $ 2,475 | $ 2,280 | $ 7,203 | $ 7,484 |
Service charges on deposits | ||||
Noninterest income | ||||
Service charges on deposits | 2,504 | 2,661 | 7,290 | 7,063 |
Secondary mortgage fees | ||||
Noninterest income | ||||
Service charges on deposits | 66 | 81 | 201 | 270 |
Mortgage servicing income | ||||
Noninterest income | ||||
Service charges on deposits | $ 519 | $ 514 | $ 1,534 | $ 1,612 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net Income (Loss) | $ 24,335 | $ 19,523 | $ 73,504 | $ 43,790 |
Unrealized holding losses on available-for-sale securities arising during the period | (9,062) | (41,163) | (1,212) | (146,477) |
Related tax benefit | 2,538 | 11,526 | 344 | 41,014 |
Holding losses, after tax, on available-for-sale securities | (6,524) | (29,637) | (868) | (105,463) |
Less: Reclassification adjustment for the net losses realized during the period | ||||
Net realized losses | (924) | (1) | (4,146) | (34) |
Related tax benefit | 260 | 1 | 1,165 | 10 |
Net realized losses after tax | (664) | (2,981) | (24) | |
Other comprehensive (loss) income on available-for-sale securities | (5,860) | (29,637) | 2,113 | (105,439) |
Changes in fair value of derivatives used for cash flow hedges | 1,975 | (4,868) | 560 | (2,381) |
Related tax (expense) benefit | (548) | 1,360 | (168) | 663 |
Other comprehensive income (loss) on cash flow hedges | 1,427 | (3,508) | 392 | (1,718) |
Total other comprehensive (loss) income | (4,433) | (33,145) | 2,505 | (107,157) |
Total comprehensive income (loss) | $ 19,902 | $ (13,622) | $ 76,009 | $ (63,367) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 73,504 | $ 43,790 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net premium / discount amortization on securities | 2,506 | 4,259 |
Securities losses, net | 4,146 | 34 |
Provision for credit losses | 8,501 | 5,050 |
Originations of loans held-for-sale | (39,068) | (65,103) |
Proceeds from sales of loans held-for-sale | 37,962 | 69,263 |
Net gains on sales of mortgage loans | (1,111) | (1,682) |
Mortgage servicing rights mark to market loss (gain) | 148 | (3,608) |
Net accretion of discount on loans and unfunded commitments | (2,620) | (5,473) |
Net change in cash surrender value of BOLI | (1,579) | (342) |
Net gains on sale of other real estate owned | (229) | (163) |
Provision for other real estate owned valuation losses | 269 | 104 |
Depreciation of fixed assets and amortization of leasehold improvements | 3,246 | 3,079 |
Net gains on disposal and transfer of fixed assets | (636) | (1,872) |
Amortization of core deposit intangibles | 1,858 | 1,981 |
Change in current income taxes receivable | 1,070 | 7,279 |
Deferred tax expense | (289) | (1,854) |
Change in accrued interest receivable and other assets | (10,053) | 1,036 |
Accretion of purchase accounting adjustment on time deposits | (1,004) | (1,207) |
Change in accrued interest payable and other liabilities | 7,991 | 3,314 |
Stock based compensation | 2,709 | 2,176 |
Net cash provided by operating activities | 87,321 | 60,061 |
Cash flows from investing activities | ||
Proceeds from maturities and calls, including pay down of securities available-for-sale | 104,471 | 231,483 |
Proceeds from sales of securities available-for-sale | 205,738 | 3,303 |
Purchases of securities available-for-sale | (4,186) | (301,649) |
Net purchases of FHLBC/FRBC stock | (15,300) | (6,156) |
Net change in loans | (164,252) | (443,628) |
Proceeds from sales of other real estate owned, net of participations and improvements | 1,800 | 941 |
Proceeds from disposition of premises and equipment | 4,460 | 12,167 |
Net purchases of premises and equipment | (8,217) | (2,670) |
Cash paid for acquisition, net of cash and cash equivalents acquired | (146) | |
Net cash provided by (used in) investing activities | 124,514 | (506,355) |
Cash flows from financing activities | ||
Net change in deposits | (495,399) | (183,666) |
Net change in securities sold under repurchase agreements | (6,262) | (14,840) |
Net change in other short-term borrowings | 345,000 | 25,000 |
Repayment of term note | (9,000) | (3,000) |
Net change in notes payable and other borrowings, excluding term note | (6,056) | |
Repayment of senior notes | (45,000) | |
Dividends paid on common stock | (6,713) | (6,650) |
Purchase of treasury stock | (605) | (447) |
Net cash used in financing activities | (217,979) | (189,659) |
Net change in cash and cash equivalents | (6,144) | (635,953) |
Cash and cash equivalents at beginning of period | 115,177 | 752,107 |
Cash and cash equivalents at end of period | $ 109,033 | $ 116,154 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2021 | $ 44,705 | $ 202,443 | $ 252,011 | $ 8,768 | $ (5,900) | $ 502,027 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 43,790 | 43,790 | ||||
Other comprehensive income loss, net of tax | (107,157) | (107,157) | ||||
Dividends declared on common stock | (6,675) | (6,675) | ||||
Vesting of restricted stock | (2,919) | 2,919 | ||||
Stock based compensation | 2,176 | 2,176 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (447) | (447) | ||||
Balance at Sep. 30, 2022 | 44,705 | 201,700 | 289,126 | (98,389) | (3,428) | 433,714 |
Balance at Jun. 30, 2022 | 44,705 | 201,282 | 271,831 | (65,244) | (3,670) | 448,904 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 19,523 | 19,523 | ||||
Other comprehensive income loss, net of tax | (33,145) | (33,145) | ||||
Dividends declared on common stock | (2,228) | (2,228) | ||||
Vesting of restricted stock | (304) | 304 | ||||
Stock based compensation | 722 | 722 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (62) | (62) | ||||
Balance at Sep. 30, 2022 | 44,705 | 201,700 | 289,126 | (98,389) | (3,428) | 433,714 |
Balance at Dec. 31, 2022 | 44,705 | 202,276 | 310,512 | (93,124) | (3,228) | 461,141 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 73,504 | 73,504 | ||||
Other comprehensive income loss, net of tax | 2,505 | 2,505 | ||||
Dividends declared on common stock | (6,696) | (6,696) | ||||
Vesting of restricted stock | (3,432) | 3,432 | ||||
Stock based compensation | 2,709 | 2,709 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (605) | (605) | ||||
Balance at Sep. 30, 2023 | 44,705 | 201,553 | 377,320 | (90,619) | (401) | 532,558 |
Balance at Jun. 30, 2023 | 44,705 | 200,963 | 355,219 | (86,186) | (746) | 513,955 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 24,335 | 24,335 | ||||
Other comprehensive income loss, net of tax | (4,433) | (4,433) | ||||
Dividends declared on common stock | (2,234) | (2,234) | ||||
Vesting of restricted stock | (345) | 345 | ||||
Stock based compensation | 935 | 935 | ||||
Balance at Sep. 30, 2023 | $ 44,705 | $ 201,553 | $ 377,320 | $ (90,619) | $ (401) | $ 532,558 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 513,955 | $ 448,904 | $ 461,141 | $ 502,027 |
Other comprehensive (loss) income, net of tax | (4,433) | (33,145) | 2,505 | (107,157) |
Balance | $ 532,558 | $ 433,714 | $ 532,558 | $ 433,714 |
Dividend declared and paid (per share) | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Total Accumulated Other Comprehensive Income/(Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ (86,186) | $ (65,244) | $ (93,124) | $ 8,768 |
Other comprehensive (loss) income, net of tax | (4,433) | (33,145) | 2,505 | (107,157) |
Balance | (90,619) | (98,389) | (90,619) | (98,389) |
Accumulated Unrealized Gain (Loss) on Securities Available-for-Sale | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (80,919) | (64,663) | (88,892) | 11,139 |
Other comprehensive (loss) income, net of tax | (5,860) | (29,637) | 2,113 | (105,439) |
Balance | (86,779) | (94,300) | (86,779) | (94,300) |
Accumulated Unrealized Gain (Loss) on Derivative Instruments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (5,267) | (581) | (4,232) | (2,371) |
Other comprehensive (loss) income, net of tax | 1,427 | (3,508) | 392 | (1,718) |
Balance | $ (3,840) | $ (4,089) | $ (3,840) | $ (4,089) |
Basis of Presentation and Chang
Basis of Presentation and Changes in Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Changes in Significant Accounting Policies | |
Basis of Presentation and Changes in Significant Accounting Policies | Note 1 – Basis of Presentation and Changes in Significant Accounting Policies The accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information. The interim consolidated financial statements reflect all normal and recurring adjustments that are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. These interim consolidated financial statements and accompanying notes are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2022. Unless otherwise indicated, dollar amounts in the tables contained in the notes to the consolidated financial statements are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation. The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. Recent Accounting Pronouncements The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company : ASU 2018-16, ASU 2020-04, ASU 2021-01, and ASU 2022-06 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting. Reference Rate Reform The Company formed a LIBOR transition team in 2019 and developed a project plan to assess the use of alternative indexes and to seek to ensure all financial instruments that reference LIBOR are identified, quantified, and researched for the LIBOR fallback language available or needed. The Company completed the ISDA protocol adherence for LIBOR fallback language for all commercial swaps, met with its commercial loan clients to also guide their swap fallback language adherence, and worked to revise all credit documents being issued by Old Second National Bank (the “Bank”) for new loans to ensure appropriate fallback language was included. We discontinued the use of LIBOR as a reference rate for all consumer loans issued after July 31, 2021, and all commercial loans issued after December 31, 2021, with certain exceptions for those loans that were in the process of funding at the end of 2021. The Company’s systems were updated to handle multiple SOFR-based indexes and we planned accordingly for the transition of existing LIBOR exposures as the final LIBOR cessation date was June 30, 2023. As of September 30, 2023, the Company’s LIBOR transition processes were determined to be completed and alternative index rates are in place. ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method ASU 2022-02 Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Change in Significant Accounting Policies Significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. During the third quarter of 2023, the Company had no changes to significant accounting policies or estimates. Subsequent Events On October 17, 2023, our Board of Directors declared a cash dividend of $0.05 per share payable on November 6, 2023, to stockholders of record as of October 27, 2023; dividends of $2.2 million are scheduled to be paid to stockholders on November 6, 2023. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2023 | |
Acquisition | |
Acquisition | Note 2 – Acquisition On December 1, 2021, the Company completed its acquisition of West Suburban Bancorp, Inc. (“West Suburban”), a bank holding company, and its wholly owned subsidiary, West Suburban Bank, based in Lombard, Illinois, with operations throughout our existing market footprint. At closing, the Company acquired $2.94 billion of assets, $1.50 billion of loans, $1.07 billion of securities, and $2.69 billion of deposits, net of fair value adjustments. Under the terms of the merger agreement, each outstanding share of West Suburban common stock was exchanged for 42.413 shares of Company common stock, plus $271.15 of cash. This resulted in merger consideration of $295.2 million, based on the closing price of the Company’s common stock on the date of acquisition, which consisted of 15.7 million shares of the Company’s common stock and $100.7 million of cash. Goodwill of $67.9 million associated with the acquisition was recorded by the Company, which was the result of expected synergies, operational efficiencies and other factors. The acquisition of West Suburban was accounted for as a business combination, and none of the $67.9 million of goodwill recorded is expected to be deductible for income tax purposes. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2023 | |
Securities | |
Securities | Note 3 – Securities Investment Portfolio Management Our investment portfolio serves the liquidity needs and income objectives of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. Investments are comprised of debt securities and non-marketable equity investments. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. Federal Home Loan Bank of Chicago (“FHLBC”) and Federal Reserve Bank of Chicago (“FRBC”) stock are considered nonmarketable equity investments. FHLBC stock was recorded at $20.9 million at September 30, 2023, and $5.6 million at December 31, 2022. FRBC stock was recorded at $14.9 million at September 30, 2023 and December 31, 2022. The following tables summarize the amortized cost and fair value of the securities portfolio at September 30, 2023, and December 31, 2022, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2023 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 224,481 $ - $ (7,704) $ 216,777 U.S. government agencies 60,197 - (4,376) 55,821 U.S. government agencies mortgage-backed 122,653 - (18,084) 104,569 States and political subdivisions 240,107 142 (20,149) 220,100 Corporate bonds 5,000 - (39) 4,961 Collateralized mortgage obligations 450,470 54 (63,845) 386,679 Asset-backed securities 71,241 - (4,325) 66,916 Collateralized loan obligations 175,995 10 (2,210) 173,795 Total securities available-for-sale $ 1,350,144 $ 206 $ (120,732) $ 1,229,618 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 224,054 $ - $ (11,925) $ 212,129 U.S. government agencies 61,178 - (5,130) 56,048 U.S. government agencies mortgage-backed 140,588 - (15,598) 124,990 States and political subdivisions 239,999 363 (14,234) 226,128 Corporate bonds 10,000 - (378) 9,622 Collateralized mortgage obligations 596,336 1 (62,569) 533,768 Asset-backed securities 210,388 6 (8,466) 201,928 Collateralized loan obligations 180,276 - (5,530) 174,746 Total securities available-for-sale $ 1,662,819 $ 370 $ (123,830) $ 1,539,359 1 Excludes accrued interest receivable of $6.7 million and $6.8 million at September 30, 2023 and December 31, 2022, respectively, that is recorded in other assets on the consolidated balance sheets. The fair value, amortized cost and weighted average yield of debt securities at September 30, 2023, by contractual maturity, are listed in the table below. Securities not due at a single maturity date are shown separately. Weighted Amortized Average Fair Securities available-for-sale Cost Yield Value Due in one year or less $ 49,989 0.64 % $ 49,804 Due after one year through five years 253,955 1.17 241,430 Due after five years through ten years 60,975 2.92 53,882 Due after ten years 164,866 3.11 152,543 529,785 1.92 497,659 Mortgage-backed and collateralized mortgage obligations 573,123 2.29 491,248 Asset-backed securities 71,241 4.24 66,916 Collateralized loan obligations 175,995 7.21 173,795 Total securities available-for-sale $ 1,350,144 3.00 % $ 1,229,618 At September 30, 2023, the Company had no securities issued from any one originator, other than the U.S. Government and its agencies, which individually amounted to over 10% of the Company’s stockholders’ equity. Securities with unrealized losses with no corresponding allowance for credit losses at September 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities): Less than 12 months 12 months or more September 30, 2023 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries - $ - $ - 5 $ 7,704 $ 216,777 5 $ 7,704 $ 216,777 U.S. government agencies - - - 9 4,376 55,821 9 4,376 55,821 U.S. government agencies mortgage-backed - - - 128 18,084 104,569 128 18,084 104,569 States and political subdivisions 44 3,232 110,511 30 16,917 104,582 74 20,149 215,093 Corporate bonds - - - 1 39 4,961 1 39 4,961 Collateralized mortgage obligations 2 14 756 146 63,831 379,159 148 63,845 379,915 Asset-backed securities - - - 19 4,325 66,916 19 4,325 66,916 Collateralized loan obligations - - - 33 2,210 170,803 33 2,210 170,803 Total securities available-for-sale 46 $ 3,246 $ 111,267 371 $ 117,486 $ 1,103,588 417 $ 120,732 $ 1,214,855 Less than 12 months 12 months or more December 31, 2022 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries 1 $ 1,025 $ 24,121 4 $ 10,900 $ 188,008 5 $ 11,925 $ 212,129 U.S. government agencies - - - 9 5,130 56,048 9 5,130 56,048 U.S. government agencies mortgage-backed 15 975 11,369 117 14,623 113,621 132 15,598 124,990 States and political subdivisions 45 5,800 128,770 15 8,434 48,877 60 14,234 177,647 Corporate bonds - - - 2 378 9,622 2 378 9,622 Collateralized mortgage obligations 80 12,895 180,624 120 49,674 348,880 200 62,569 529,504 Asset-backed securities 30 3,030 121,915 21 5,436 79,659 51 8,466 201,574 Collateralized loan obligations 23 3,579 112,772 11 1,951 61,974 34 5,530 174,746 Total securities available-for-sale 194 $ 27,304 $ 579,571 299 $ 96,526 $ 906,689 493 $ 123,830 $ 1,486,260 Each quarter, we perform an analysis to determine if any of the unrealized losses on securities available-for-sale are comprised of credit losses as compared to unrealized losses due to market interest rate adjustments. Our assessment includes a review of the unrealized loss for each security issuance held; the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades; and our ability and intent to hold the security for a period of time sufficient for a recovery in value. We also consider the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. The portfolio continues to consist of a mix of fixed and floating-rate, high quality securities, largely rated AA (or better), displaying an overall effective duration of approximately 3.0 years. No credit losses were determined to be present as of September 30, 2023, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the third quarter of 2023. The following table presents net realized losses on securities available-for-sale for three and nine months ended: Three Months Ended Nine Months Ended September 30, September 30, Securities available-for-sale 2023 2022 2023 2022 Proceeds from sales of securities $ 65,572 $ - $ 205,738 $ 3,303 Gross realized losses on securities (924) (1) (4,146) (34) Net realized losses $ (924) $ (1) $ (4,146) $ (34) Income tax benefit on net realized losses $ 260 $ 1 $ 1,165 $ 10 Effective tax rate applied 28.1 % N/M 28.1 % 29.4 % N/M - Not meaningful As of September 30, 2023, securities valued at $808.7 million were pledged for borrowings, and for other purposes, an increase from $547.8 million of securities pledged at year-end 2022. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Allowance for Credit Losses on Loans | |
Loans and Allowance for Credit Losses on Loans | Note 4 – Loans and Allowance for Credit Losses on Loans Major segments of loans were as follows: September 30, 2023 December 31, 2022 Commercial $ 834,877 $ 840,964 Leases 354,827 277,385 Commercial real estate – investor 1,047,122 987,635 Commercial real estate – owner occupied 809,050 854,879 Construction 202,546 180,535 Residential real estate – investor 53,762 57,353 Residential real estate – owner occupied 227,446 219,718 Multifamily 372,020 323,691 HELOC 102,055 109,202 Other 1 25,838 18,247 Total loans 4,029,543 3,869,609 Allowance for credit losses on loans (51,729) (49,480) Net loans 2 $ 3,977,814 $ 3,820,129 1 The “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 4 – Loans and Allowance for Credit Losses on Loans. 2 Excludes accrued interest receivable of $19.2 million and $15.9 million at September 30, 2023 and December 31, 2022, respectively, that is recorded in other assets on the consolidated balance sheets. It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to assure access to collateral, in the event of borrower default, through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. Although the Bank makes loans primarily within its market area, there are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. The real estate related categories listed above represent 69.8% and 70.6% of the portfolio at September 30, 2023, and December 31, 2022, respectively, and include a mix of owner occupied and non-owner occupied commercial real estate, residential, construction and multifamily loans. The following tables represent the activity in the allowance for credit losses for loans, or the ACL, for the three and nine months ended September 30, 2023 and 2022: Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended September 30, 2023 Commercial $ 11,532 $ (1,025) $ 20 $ 12 $ 10,499 Leases 2,690 (193) - 95 2,592 Commercial real estate – investor 20,031 4,726 6,774 20 18,003 Commercial real estate – owner occupied 12,562 (154) 35 12 12,385 Construction 1,179 (39) - 100 1,240 Residential real estate – investor 743 (55) - 3 691 Residential real estate – owner occupied 1,868 (36) - 25 1,857 Multifamily 2,737 (165) - - 2,572 HELOC 1,694 (77) - 35 1,652 Other 278 30 107 37 238 Total $ 55,314 $ 3,012 $ 6,936 $ 339 $ 51,729 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Nine months ended September 30, 2023 Commercial $ 11,968 $ (1,287) $ 427 $ 245 $ 10,499 Leases 2,865 498 882 111 2,592 Commercial real estate – investor 10,674 14,117 6,845 57 18,003 Commercial real estate – owner occupied 15,001 (2,397) 236 17 12,385 Construction 1,546 (406) - 100 1,240 Residential real estate – investor 768 (104) - 27 691 Residential real estate – owner occupied 2,046 (260) - 71 1,857 Multifamily 2,453 119 - - 2,572 HELOC 1,806 (242) - 88 1,652 Other 353 53 301 133 238 Total $ 49,480 $ 10,091 $ 8,691 $ 849 $ 51,729 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended September 30, 2022 Commercial $ 14,114 $ (919) $ 67 $ 47 $ 13,175 Leases 1,736 (24) 178 - 1,534 Commercial real estate – investor 9,436 256 124 19 9,587 Commercial real estate – owner occupied 11,478 3,618 12 87 15,171 Construction 1,535 9 - - 1,544 Residential real estate – investor 661 147 - 8 816 Residential real estate – owner occupied 1,869 149 - 113 2,131 Multifamily 2,434 33 - 63 2,530 HELOC 1,542 386 - 35 1,963 Other 583 (128) 103 44 396 Total $ 45,388 $ 3,527 $ 484 $ 416 $ 48,847 Provision for Allowance for credit losses Beginning (Release of) Ending Nine months ended September 30, 2022 Balance Credit Losses Charge-offs Recoveries Balance Commercial $ 11,751 $ 1,488 $ 149 $ 85 $ 13,175 Leases 3,480 (1,768) 178 - 1,534 Commercial real estate – investor 10,795 (664) 604 60 9,587 Commercial real estate – owner occupied 4,913 10,289 133 102 15,171 Construction 3,373 (1,829) - - 1,544 Residential real estate – investor 760 33 - 23 816 Residential real estate – owner occupied 2,832 (919) - 218 2,131 Multifamily 3,675 (1,208) - 63 2,530 HELOC 2,510 (649) - 102 1,963 Other 192 404 320 120 396 Total $ 44,281 $ 5,177 $ 1,384 $ 773 $ 48,847 At September 30, 2023, our allowance for credit losses (“ACL”) on loans totaled $51.7 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.9 million including related purchase accounting adjustments. During the first nine months of 2023, we recorded net provision expense of $8.5 million based on historical loss rate updates driven by higher charge offs in commercial real estate-investor, loan growth of approximately $160.0 million, downward risk rating migration including an increased reserve on loans individually analyzed, and our assessment of estimated future credit losses. The ACL on loans excludes $2.7 million, $4.3 million and $4.4 million of allowance for unfunded commitments as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively, recorded within Other Liabilities. The total ACL on unfunded commitments listed as of September 30, 2023, December 31, 2022, and September 30, 2022 excludes the purchase accounting adjustment of $149,000, $819,000, and $1.0 million, respectively, recorded due to our acquisition of West Suburban, which is also recorded within Other Liabilities, and is being accreted in interest income over the estimated life of the unused commitments. Generally, the Bank considers a loan to be collateral dependent when, based on current information and events, it is probable that foreclosure will be initiated. Additionally, the Bank will review all loans meeting the criteria for individual analysis, to determine if repayment or satisfaction of the loan is expected through the sale of collateral. This will generally be the case for credits with high loan-to-values. Exceptions to this policy would include loans with guarantors that have the means and willingness to support the obligation. Non-accruing loans with an outstanding balance of $500,000 or more are assessed on an individual loan level basis. When a financial asset is deemed collateral-dependent, the level of credit loss is measured by the difference between amortized cost of the financial asset and the fair value of collateral adjusted for estimated cost to sell. The Company had $55.8 million and $50.5 million of collateral dependent loans secured by real estate or business assets as of September 30, 2023, and December 31, 2022, respectively. The following tables present the collateral dependent loans and the related ACL allocated by segment of loans as of September 30, 2023 and December 31, 2022: Accounts ACL September 30, 2023 Real Estate Receivable Equipment Other Total Allocation Commercial $ 849 $ 679 $ - $ - $ 1,528 $ 2 Leases - - 339 - 339 339 Commercial real estate – investor 26,724 - - - 26,724 4,848 Commercial real estate – owner occupied 17,636 - - - 17,636 4,201 Construction 7,206 - - - 7,206 - Residential real estate – investor 32 - - - 32 - Residential real estate – owner occupied 1,679 - - - 1,679 - Multifamily 568 - - - 568 - HELOC 39 - - - 39 - Total $ 54,733 $ 679 $ 339 $ - $ 55,751 $ 9,390 Accounts ACL December 31, 2022 Real Estate Receivable Equipment Other Total Allocation Commercial $ 883 $ 5,915 $ - $ 364 $ 7,162 $ 569 Leases - - 1,248 - 1,248 1,248 Commercial real estate – investor 16,576 - - - 16,576 2,875 Commercial real estate – owner occupied 19,188 - - 2,310 21,498 5,808 Residential real estate – investor 675 - - - 675 - Residential real estate – owner occupied 1,817 - - - 1,817 244 Multifamily 1,322 - - - 1,322 - HELOC 180 - - - 180 - Total $ 40,641 $ 5,915 $ 1,248 $ 2,674 $ 50,478 $ 10,744 Aged analysis of past due loans by segments of loans was as follows: 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and September 30, 2023 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 1,829 $ 1,874 $ 1,052 $ 4,755 $ 830,122 $ 834,877 $ 979 Leases 2,502 - 157 2,659 352,168 354,827 - Commercial real estate – investor 2,205 16,728 16,116 35,049 1,012,073 1,047,122 - Commercial real estate – owner occupied 15,232 120 1,879 17,231 791,819 809,050 - Construction 118 200 7,206 7,524 195,022 202,546 - Residential real estate – investor 252 - 277 529 53,233 53,762 140 Residential real estate – owner occupied 735 419 1,820 2,974 224,472 227,446 - Multifamily 713 127 - 840 371,180 372,020 - HELOC 646 88 259 993 101,062 102,055 90 Other - - - - 25,838 25,838 - Total $ 24,232 $ 19,556 $ 28,766 $ 72,554 $ 3,956,989 $ 4,029,543 $ 1,209 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2022 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 3 $ 1,012 $ 825 $ 1,840 $ 839,124 $ 840,964 $ 460 Leases 447 22 614 1,083 276,302 277,385 - Commercial real estate – investor 3,276 1,276 4,315 8,867 978,768 987,635 - Commercial real estate – owner occupied 373 113 2,211 2,697 852,182 854,879 173 Construction 14 - 116 130 180,405 180,535 - Residential real estate – investor 445 - 987 1,432 55,921 57,353 144 Residential real estate – owner occupied 1,191 - 2,232 3,423 216,295 219,718 485 Multifamily 267 361 1,322 1,950 321,741 323,691 - HELOC 291 90 392 773 108,429 109,202 - Other 19 - - 19 18,228 18,247 - Total $ 6,326 $ 2,874 $ 13,014 $ 22,214 $ 3,847,395 $ 3,869,609 $ 1,262 The table presents all nonaccrual loans as of September 30, 2023, and December 31, 2022: Nonaccrual loan detail September 30, 2023 With no ACL December 31, 2022 With no ACL Commercial $ 2,167 $ 2,167 $ 7,189 $ 6,598 Leases 377 38 1,876 - Commercial real estate – investor 26,724 11,786 4,346 4,244 Commercial real estate – owner occupied 18,290 3,833 8,050 3,813 Construction 7,206 7,206 251 - Residential real estate – investor 1,362 1,362 1,528 675 Residential real estate – owner occupied 3,627 3,627 3,713 1,572 Multifamily 1,141 1,141 2,538 1,322 HELOC 1,222 1,222 2,109 180 Other - - 2 - Total $ 62,116 $ 32,382 $ 31,602 $ 18,404 The Company recognized $189,000 and $304,000 of interest on nonaccrual loans during the three months and nine months ended September 30, 2023, respectively. Credit Quality Indicators The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison to industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings: Special Mention. Substandard. Doubtful. Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. Credit quality indicators by loan segment and loan origination date at September 30, 2023 were as follows: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 215,492 $ 187,682 $ 41,464 $ 13,359 $ 10,676 $ 4,315 $ 311,562 $ 1,379 $ 785,929 Special Mention - 500 244 - 51 - 29,855 - 30,650 Substandard - 79 1,381 2,735 9,689 - 4,414 - 18,298 Total commercial 215,492 188,261 43,089 16,094 20,416 4,315 345,831 1,379 834,877 Leases Pass 151,691 125,092 $ 47,808 17,522 9,545 2,595 - - 354,253 Special Mention - - - - - - - - - Substandard - 339 - - 235 - - - 574 Total leases 151,691 125,431 47,808 17,522 9,780 2,595 - - 354,827 Commercial real estate – investor Pass 176,779 341,597 203,972 111,333 59,770 67,264 8,148 - 968,863 Special Mention - 12,866 11,267 - - - - - 24,133 Substandard 10,964 11,787 1,950 7,748 9,278 - 12,399 - 54,126 Total commercial real estate – investor 187,743 366,250 217,189 119,081 69,048 67,264 20,547 - 1,047,122 Commercial real estate – owner occupied Pass 105,963 139,223 181,543 78,750 54,909 101,396 33,258 - 695,042 Special Mention 1,758 11,722 18,180 26,480 222 354 - - 58,716 Substandard - 14,994 19,926 1,142 18,811 419 - - 55,292 Total commercial real estate – owner occupied 107,721 165,939 219,649 106,372 73,942 102,169 33,258 - 809,050 Construction Pass 26,529 75,698 56,217 19,531 1,837 1,155 3,699 - 184,666 Special Mention 305 312 - - - - - - 617 Substandard - 7,206 - 10,057 - - - - 17,263 Total construction 26,834 83,216 56,217 29,588 1,837 1,155 3,699 - 202,546 Residential real estate – investor Pass 3,310 14,560 8,954 6,317 7,116 10,519 1,417 - 52,193 Special Mention - - 67 - - - - - 67 Substandard - 398 - - 418 686 - - 1,502 Total residential real estate – investor 3,310 14,958 9,021 6,317 7,534 11,205 1,417 - 53,762 Residential real estate – owner occupied Pass 26,371 41,915 41,439 26,544 15,147 71,637 766 - 223,819 Special Mention - - - - - - - - - Substandard - 122 - 90 686 2,729 - - 3,627 Total residential real estate – owner occupied 26,371 42,037 41,439 26,634 15,833 74,366 766 - 227,446 Multifamily Pass 69,947 79,689 101,878 57,792 12,391 42,603 382 - 364,682 Special Mention - 170 3,505 326 1,656 540 - - 6,197 Substandard - 887 - - - 254 - - 1,141 Total multifamily 69,947 80,746 105,383 58,118 14,047 43,397 382 - 372,020 HELOC Pass 1,765 2,760 211 1,443 1,631 2,494 90,317 - 100,621 Special Mention - - - - - - - - - Substandard 39 27 1 1 - 106 1,260 - 1,434 Total HELOC 1,804 2,787 212 1,444 1,631 2,600 91,577 - 102,055 Other Pass 4,461 2,068 1,415 223 151 88 17,432 25,838 Special Mention - - - - - - - - Substandard - - - - - - - - Total other 4,461 2,068 1,415 223 151 88 17,432 - 25,838 Total loans Pass 782,308 1,010,284 684,901 332,814 173,173 304,066 466,981 1,379 3,755,906 Special Mention 2,063 25,570 33,263 26,806 1,929 894 29,855 - 120,380 Substandard 11,003 35,839 23,258 21,773 39,117 4,194 18,073 - 153,257 Total loans $ 795,374 $ 1,071,693 $ 741,422 $ 381,393 $ 214,219 $ 309,154 $ 514,909 $ 1,379 $ 4,029,543 Credit quality indicators by loan segment and loan origination date at December 31, 2022, were as follows: 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 225,056 $ 70,608 $ 21,597 $ 12,742 $ 6,957 $ 2,651 $ 447,821 $ - $ 787,432 Special Mention 1,875 272 1,182 2,432 - - 21,286 - 27,047 Substandard 4,958 2,447 2,981 12,176 7 - 3,916 - 26,485 Total commercial 231,889 73,327 25,760 27,350 6,964 2,651 473,023 - 840,964 Leases Pass 161,379 64,203 $ 26,995 17,653 4,449 830 - - 275,509 Special Mention - - - - - - - - - Substandard 1,606 - - 270 - - - - 1,876 Total leases 162,985 64,203 26,995 17,923 4,449 830 - - 277,385 Commercial real estate – investor Pass 416,094 228,686 118,491 63,845 46,935 46,406 7,113 - 927,570 Special Mention 5,349 1,417 5,490 10,206 1,070 9,123 - - 32,655 Substandard 12,332 2,018 - 10,763 - 2,297 - - 27,410 Total commercial real estate – investor 433,775 232,121 123,981 84,814 48,005 57,826 7,113 - 987,635 Commercial real estate – owner occupied Pass 169,703 223,731 105,669 47,351 49,367 86,660 33,745 - 716,226 Special Mention 8,430 22,242 48,184 17,668 231 1,008 - - 97,763 Substandard 2,546 17,129 1,191 16,962 - 3,062 - - 40,890 Total commercial real estate – owner occupied 180,679 263,102 155,044 81,981 49,598 90,730 33,745 - 854,879 Construction Pass 53,058 65,758 39,542 2,390 226 1,408 1,523 - 163,905 Special Mention - - 15,297 - - - - - 15,297 Substandard 1,217 - - 116 - - - - 1,333 Total construction 54,275 65,758 54,839 2,506 226 1,408 1,523 - 180,535 Residential real estate – investor Pass 14,737 9,910 6,945 8,585 4,853 9,548 991 - 55,569 Special Mention - 70 - - - - - - 70 Substandard 621 - - 499 186 408 - - 1,714 Total residential real estate – investor 15,358 9,980 6,945 9,084 5,039 9,956 991 - 57,353 Residential real estate – owner occupied Pass 41,885 44,884 28,418 16,146 12,152 70,741 1,638 - 215,864 Special Mention - - - - - - - - - Substandard 131 267 237 723 131 2,365 - - 3,854 Total residential real estate – owner occupied 42,016 45,151 28,655 16,869 12,283 73,106 1,638 - 219,718 Multifamily Pass 76,877 126,257 52,262 13,125 39,703 6,098 329 - 314,651 Special Mention 377 3,683 342 1,684 - - - - 6,086 Substandard 2,100 - - - 587 267 - - 2,954 Total multifamily 79,354 129,940 52,604 14,809 40,290 6,365 329 - 323,691 HELOC Pass 2,760 517 1,497 1,703 657 2,288 97,258 - 106,680 Special Mention - - - - - - 111 - 111 Substandard 62 1 - - 67 309 1,972 - 2,411 Total HELOC 2,822 518 1,497 1,703 724 2,597 99,341 - 109,202 Other Pass 4,195 2,835 432 167 69 111 10,436 - 18,245 Special Mention - - - - - - - - - Substandard - - 1 - - - 1 - 2 Total other 4,195 2,835 433 167 69 111 10,437 - 18,247 Total loans Pass 1,165,744 837,389 401,848 183,707 165,368 226,741 600,854 - 3,581,651 Special Mention 16,031 27,684 70,495 31,990 1,301 10,131 21,397 - 179,029 Substandard 25,573 21,862 4,410 41,509 978 8,708 5,889 - 108,929 Total loans $ 1,207,348 $ 886,935 $ 476,753 $ 257,206 $ 167,647 $ 245,580 $ 628,140 $ - $ 3,869,609 The gross charge-offs activity by loan type and year of origination for the nine months ended September 30, 2023 were as follows: Current period gross charge-offs 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Commercial $ - - 17 364 - 46 $ - $ - $ 427 Leases - 870 - - 12 - - - 882 Commercial real estate – investor - 4,121 71 2,653 - - - - 6,845 Commercial real estate – owner occupied - 22 178 4 - 32 - - 236 Construction - - - - - - - - - Residential real estate – investor - - - - - - - - - Residential real estate – owner occupied - - - - - - - - - Multifamily - - - - - - - - - HELOC - - - - - - - - - Other - 3 26 7 - 265 - - 301 Total $ - $ 5,016 $ 292 $ 3,028 $ 12 $ 343 - - $ 8,691 The Company had $176,000 and $600,000 in residential real estate loans in the process of foreclosure as of September 30, 2023 and December 31, 2022, respectively. As of January 1, 2023, the Company prospectively adopted ASU 2022-02, Topic 326 “Troubled Debt Restructuring (“TDRs”) and Vintage Disclosures”, see Note 1. Fifteen loans, totaling $43.0 million in aggregate, were modified which were experiencing financial difficulty during the nine-month period ending September 30, 2023. There were no TDR loan modifications for the three months ended September 30, 2022, and there were two TDR loan modifications for an aggregate of $39,000 for the nine months ended September 30, 2022. TDRs were classified as being in default on a case-by-case basis when they failed to be in compliance with the modified terms. There were no financial difficulty loans modified in payment default as of September 30, 2023 and was no TDR default activity for the period ended September 30, 2023, for loans that were restructured within the prior 12-month period. The following table presents the amortized costs basis of loans at September 30, 2023 that were both experiencing financial difficulty and modified during the period ended September 30, 2023 by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to amortized costs basis of each class of financing receivable is also presented below. September 30, 2023 Term Extension Combination - Term Extension and Interest Rate Reduction Combination - Term Extension and Payment Delay Total Loans Modified % of Total Loan Segment Modified to Total Loan Segment Commercial $ 1,713 $ 979 $ - $ 2,692 0.3% Commercial real estate – investor 12,755 - 10,608 23,363 2.2% Commercial real estate – owner occupied 16,218 - - 16,218 2.0% Residential real estate – owner occupied 437 - - 437 0.2% Multifamily 254 - - 254 0.1% HELOC 39 - - 39 0.0% Total $ 31,416 $ 979 $ 10,608 $ 43,003 1.1% The Company closely monitors the performance of loan modifications to borrowers experiencing financial difficulty. The following table presents the performance of loans that have been modified as of September 30, 2023. September 30, 2023 30-59 days past due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loan Modified Commercial $ - $ - $ 979 $ 979 $ 1,713 $ 2,692 Commercial real estate – investor - - - - 23,363 23,363 Commercial real estate – owner occupied - - - - 16,218 16,218 Residential real estate – owner occupied - - - - 437 437 Multifamily - - - - 254 254 HELOC - - - - 39 39 Total $ - $ - $ 979 $ 979 $ 42,024 $ 43,003 The following table summarizes the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period ended September 30, 2023. The Company had two Commercial real estate – investor loans that had a payment modification, one changed to a single payment at maturity and the other changed from principal and interest to interest only until maturity. September 30, 2023 Weighted-Average Term Extension (In Months) Weighted-Average Interest Rate Change Weighted-Average Delay of Payment (In Months) Commercial 6.74 5.00 % - Commercial real estate – investor 9.81 - 7.17 Commercial real estate – owner occupied 14.00 - - Residential real estate – owner occupied 2.00 - - Multifamily 16.00 - - HELOC 24.00 - - Total 11.17 5.00 % 7.17 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Deposits | Note 5 – Deposits Major classifications of deposits were as follows: September 30, 2023 December 31, 2022 Noninterest bearing demand $ 1,862,659 $ 2,051,702 Savings 1,003,498 1,145,592 NOW accounts 567,997 609,338 Money market accounts 702,176 862,170 Certificates of deposit of less than $100,000 248,272 244,017 Certificates of deposit of $100,000 through $250,000 162,901 157,438 Certificates of deposit of more than $250,000 66,817 40,466 Total deposits $ 4,614,320 $ 5,110,723 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Borrowings | |
Borrowings | Note 6 – Borrowings The following table is a summary of borrowings as of September 30, 2023 and December 31, 2022. Junior subordinated debentures are discussed in more detail in Note 7. September 30, 2023 December 31, 2022 Securities sold under repurchase agreements $ 25,894 $ 32,156 Other short-term borrowings 435,000 90,000 Junior subordinated debentures 1 25,773 25,773 Subordinated debentures 59,361 59,297 Senior notes - 44,585 Notes payable and other borrowings - 9,000 Total borrowings $ 546,028 $ 260,811 1 See Note 7: Junior Subordinated Debentures The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature overnight from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies and collateralized mortgage-backed securities, and had a carrying amount of $25.9 million at September 30, 2023, and $32.2 million at December 31, 2022. The fair value of the pledged collateral was $43.8 million at September 30, 2023, and $71.4 million at December 31, 2022. At September 30, 2023, there were no customers with secured balances exceeding 10% of stockholders’ equity. The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of September 30, 2023, the Bank had $435.0 million in short-term advances outstanding under the FHLBC. There were $90.0 million in short-term advances as of December 31, 2022. FHLBC stock held at September 30, 2023 was valued at $20.9 million, and any potential FHLBC advances were collateralized by loans and securities with a principal balance of $1.47 billion, which carried a FHLBC-calculated combined collateral value of $1.02 billion. The Company had excess collateral of $581.7 million available to secure borrowings at September 30, 2023. In the second quarter of 2021, we issued $60.0 million in aggregate principal amount of our 3.50% Fixed-to-Floating Rate Subordinated Notes due April 15, 2031 (the “Notes”). The Company used the net proceeds from the offering for general corporate purposes. The Notes bear interest at a fixed annual rate of 3.50%, from and including the date of issuance to but excluding April 15, 2026, payable semi-annually in arrears. From and including April 15, 2026 to, but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to three-month Term SOFR (as defined by the Note) plus 273 basis points, payable quarterly in arrears. As of September 30, 2023 and December 31, 2022, we had $59.4 million and $59.3 million of subordinated debentures outstanding, net of deferred issuance costs, respectively. The Company issued senior notes in December 2016 with a ten-year maturity, and terms included interest payable semiannually at 5.75% for five years . Beginning December 31, 2021, the senior debt began to pay interest at a floating rate, with interest payable quarterly at three month LIBOR plus 385 basis points. The interest rate at June 30, 2023 and December 31, 2022 was 9.39% and 8.62% , respectively. The notes were redeemable, in whole or in part, at the option of the Company, beginning with the interest payment date on December 31, 2021, and on any floating rate interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. On June 30, 2023, we redeemed all of the $45.0 million senior notes. Upon redemption, the related deferred debt issuance costs of $362,000 was also recorded as interest expense, resulting in an effective cost of this debt issuance of 12.85% for the second quarter of 2023. On February 24, 2020, the Company originated a $20.0 million three-year term note with a correspondent bank. The term note was issued at one-month LIBOR plus 175 basis points, and required principal payments quarterly and interest payments monthly. This note was included within Notes payable and other borrowings on the Consolidated Balance Sheets, and the remaining $9.0 million balance of the note was paid off on February 24, 2023. The Company also has an undrawn line of credit of $30.0 million with a correspondent bank to be used for short-term funding needs; advances under this line can be outstanding up to 360 days from the date of issuance. This line of credit has not been utilized since early 2019. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 9 Months Ended |
Sep. 30, 2023 | |
Junior Subordinated Debentures. | |
Junior Subordinated Debentures | Note 7 – Junior Subordinated Debentures The Company issued $25.0 million of cumulative trust preferred securities through a private placement completed by an unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. These trust preferred securities mature in 30 years , but subject to regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017. The quarterly cash distributions on the securities were fixed at 6.77% through June 15, 2017, and now have a floating rate of 150 basis points over three-month SOFR . Upon conversion to a floating rate, a cash flow hedge was initiated which resulted in the total interest rate paid on the debt of 3.77% and 4.39% for the quarters ended September 30, 2023 and September 30, 2022, respectively. The Company issued a $25.8 million subordinated debenture to Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. The junior subordinated debentures issued by the Company are disclosed on the Consolidated Balance Sheets, and the related interest expense for each issuance is included in the Consolidated Statements of Income. As of September 30, 2023 and December 31, 2022, the remaining unamortized debt issuance costs related to the junior subordinated debentures were $1,000 and are included as a reduction to the balance of the junior subordinated debentures on the Consolidated Balance Sheets. The remaining deferred issuance costs on the junior subordinated debentures related to the issuance of Old Second Capital Trust II will be amortized to interest expense over the remainder of the 30 -year term of the notes and are included in the Consolidated Statements of Income. |
Equity Compensation Plans
Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Equity Compensation Plans | |
Equity Compensation Plans | Note 8 – Equity Compensation Plans Stock-based awards are outstanding under the Company’s 2019 Equity Incentive Plan, as amended and restated (the “2019 Plan”). The 2019 Plan was originally approved at the May 2019 annual stockholders’ meeting and authorized 600,000 shares, and at the May 2021 annual stockholders’ meeting, the Company obtained stockholder approval to increase the number of shares of common stock authorized for issuance under the 2019 Plan by 1,200,000 shares, from 600,000 shares to 1,800,000 shares. Following the approval of the 2019 Plan, no further awards will be granted under any other prior plan. The 2019 Plan authorizes the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights (“SARs”). Awards may be granted to selected directors, officers, employees or eligible service providers under the 2019 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors. As of September 30, 2023, 975,712 shares remained available for issuance under the 2019 Plan. The Company has granted only restricted stock units under the 2019 Equity Plan. Generally, restricted stock units granted under the 2019 Plan vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change the terms of particular awards including the vesting schedule. Under the 2019 Plan, unless otherwise provided in an award agreement, upon the occurrence of a change in control, all equity awards then held by the participant will become fully exercisable immediately if, and all stock awards and cash incentive awards will become fully earned and vested immediately if, (i) the 2019 Plan is not an obligation of the successor entity following a change in control or (ii) the 2019 Plan is an obligation of the successor entity following a change in control and the participant incurs a termination of service without cause or for good reason following the change in control. Notwithstanding the immediately preceding sentence, if the vesting of an award is conditioned upon the achievement of performance measures, then such vesting will generally be subject to the following: if, at the time of the change in control, the performance measures are less than 50% attained (pro rata based upon the time of the period through the change in control), the award will become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50%; and if, at the time of the change in control, the performance measures are at least 50% attained (pro rata based upon the time of the period through the change in control), the award will become fully earned and vested immediately upon the change in control. Awards of restricted stock under the 2019 Plan generally entitle holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Awards of restricted stock units under the 2019 Plan are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period, but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units. There were 240,149 and 268,160 restricted stock units issued under the 2019 Plan during the nine months ended September 30, 2023 and September 30, 2022, respectively. Compensation expense is recognized over the vesting period of the restricted stock units based on the market value of the award on the issue date. Total compensation cost that has been recorded for the 2019 Plan was $2.7 million for the nine months ended September 30, 2023 and $2.3 million for the nine months ended September 30, 2022. A summary of changes in the Company’s unvested restricted awards for the nine months ended September 30, 2023, is as follows: September 30, 2023 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 649,210 $ 12.84 Granted 240,149 17.02 Vested (137,534) 12.53 Forfeited (15,191) 14.25 Unvested at September 30 736,634 $ 14.23 Total unrecognized compensation cost of restricted awards was $5.0 million as of September 30, 2023, which is expected to be recognized over a weighted-average period of 1.87 years. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 9 – Earnings Per Share The earnings per share, both basic and diluted, are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic earnings per share: Weighted-average common shares outstanding 44,675,489 44,565,626 44,653,451 44,509,072 Net income $ 24,335 $ 19,523 $ 73,504 $ 43,790 Basic earnings per share $ 0.55 $ 0.43 $ 1.65 $ 0.98 Diluted earnings per share: Weighted-average common shares outstanding 44,675,489 44,565,626 44,653,451 44,509,072 Dilutive effect of unvested restricted awards 1 752,920 655,915 736,767 698,920 Diluted average common shares outstanding 45,428,409 45,221,541 45,390,218 45,207,992 Net Income $ 24,335 $ 19,523 $ 73,504 $ 43,790 Diluted earnings per share $ 0.54 $ 0.43 $ 1.62 $ 0.97 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters
Regulatory & Capital Matters | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory & Capital Matters | |
Regulatory & Capital Matters | Note 10 Regulatory & Capital Matters The Bank is subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighted Bank assets, developed by the Office of the Comptroller of the Currency (the “OCC”) and the other bank regulatory agencies. In connection with the current risk-based capital regulatory guidelines, the Bank’s Board of Directors has established an internal guideline requiring the Bank to maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%). At September 30, 2023, the Bank exceeded those thresholds. At September 30, 2023, the Bank’s Tier 1 capital leverage ratio was 10.43%, an increase of 111 basis points from December 31, 2022, and is above the 8.00% objective. The Bank’s total capital ratio was 13.57%, an increase of 82 basis points from December 31, 2022, and also above the objective of 12.00%. Bank holding companies are generally required to maintain minimum levels of capital in accordance with capital guidelines implemented by the Board of Governors of the Federal Reserve System. The general bank and holding company capital adequacy guidelines are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of September 30, 2023 and December 31, 2022. The Basel III Rules are applicable to all banking organizations that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as to bank and savings and loan holding companies, other than “small bank holding companies”, which are generally holding companies with consolidated assets of less than $3.0 billion. A detailed discussion of the Basel III Rules is included in Part I, Item 1 of the Company’s Form 10-K for the year ended December 31, 2022, under the heading “Supervision and Regulation.” At September 30, 2023 and December 31, 2022, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “well capitalized” under current regulatory defined capital ratios. Capital levels and industry defined regulatory minimum required levels are as follows: Minimum Capital Well Capitalized Adequacy with Capital Under Prompt Corrective Actual Conservation Buffer, if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio September 30, 2023 Common equity tier 1 capital to risk weighted assets Consolidated $ 530,368 11.00 % $ 337,507 7.00 % N/A N/A Old Second Bank 601,999 12.49 337,389 7.00 $ 313,290 6.50 % Total capital to risk weighted assets Consolidated 667,182 13.84 506,171 10.50 N/A N/A Old Second Bank 653,813 13.57 505,898 10.50 481,808 10.00 Tier 1 capital to risk weighted assets Consolidated 555,368 11.52 409,777 8.50 N/A N/A Old Second Bank 601,999 12.49 409,687 8.50 385,588 8.00 Tier 1 capital to average assets Consolidated 555,368 9.62 230,922 4.00 N/A N/A Old Second Bank 601,999 10.43 230,872 4.00 288,590 5.00 December 31, 2022 Common equity tier 1 capital to risk weighted assets Consolidated $ 457,206 9.67 % $ 330,966 7.00 % N/A N/A Old Second Bank 552,404 11.70 330,498 7.00 $ 306,891 6.50 % Total capital to risk weighted assets Consolidated 592,039 12.52 496,518 10.50 N/A N/A Old Second Bank 602,237 12.75 495,960 10.50 472,343 10.00 Tier 1 capital to risk weighted assets Consolidated 482,206 10.20 401,838 8.50 N/A N/A Old Second Bank 552,404 11.70 401,319 8.50 377,712 8.00 Tier 1 capital to average assets Consolidated 482,206 8.14 236,956 4.00 N/A N/A Old Second Bank 552,404 9.32 237,083 4.00 296,354 5.00 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” As part of its response to the impact of the COVID-19 pandemic, in the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provided banking organizations that adopted CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we elected to utilize the five-year CECL transition. As of September 30, 2023, the capital measures of the Company exclude $1.9 million, which is the modified CECL transition adjustment. Dividend Restrictions In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years , subject to the capital requirements described above. As of September 30, 2023, the Bank had capacity to pay dividends of $70.4 million to the Company without prior regulatory approval. Pursuant to the Basel III rules, the Bank must keep a capital conservation buffer of 2.50% above the regulatory minimum capital requirements, which must consist entirely of Common Equity Tier 1 capital in order to avoid additional limitations on capital distributions and certain other payments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 11 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability. During the nine-month period ended September 30, 2023, $14.9 million of asset-backed securities and $6.8 million of collateralized mortgage obligations were transferred to Level 2 from Level 3. There were no transfers between levels at September 30, 2022. The majority of securities available-for-sale are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: ● Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark spreads, market valuations of like securities, like securities groupings and matrix pricing. ● Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. ● State and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. ● Auction rate securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities are considered Level 2 valuations. ● Asset-backed collateralized loan obligations were priced using data from a pricing matrix supported by our bond accounting service provider and are therefore considered Level 2 valuations. ● Annually every security holding is priced by a pricing service independent of the regular and recurring pricing services used. The independent service provides a measurement to indicate if the price assigned by the regular service is within or outside of a reasonable range. Management reviews this report and applies judgment in adjusting calculations at year end related to securities pricing. ● Residential mortgage loans available for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices. ● Lending related commitments to fund certain residential mortgage loans, e.g., residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management. ● The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness. ● Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves. ● The fair value of individually evaluated loans with specific allocations of the allowance for credit losses is essentially based on recent real estate appraisals or the fair value of the collateralized asset. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. ● Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (“OREO”) are measured at fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification, or an executed pending sales contract. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balance of assets and liabilities at September 30, 2023 and December 31, 2022, respectively, measured by the Company at fair value on a recurring basis: September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 216,777 $ - $ - $ 216,777 U.S. government agencies - 55,821 - 55,821 U.S. government agencies mortgage-backed - 104,569 - 104,569 States and political subdivisions - 206,034 14,066 220,100 Corporate bonds - 4,961 - 4,961 Collateralized mortgage obligations - 386,679 - 386,679 Asset-backed securities - 66,916 - 66,916 Collateralized loan obligations - 173,795 - 173,795 Loans held-for-sale - 2,297 - 2,297 Mortgage servicing rights - - 11,461 11,461 Interest rate swap agreements, including risk participation agreement - 9,028 - 9,028 Mortgage banking derivatives - 37 - 37 Total $ 216,777 $ 1,010,137 $ 25,527 $ 1,252,441 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 14,293 $ - $ 14,293 Total $ - $ 14,293 $ - $ 14,293 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 212,129 $ - $ - $ 212,129 U.S. government agencies - 56,048 - 56,048 U.S. government agencies mortgage-backed - 124,990 - 124,990 States and political subdivisions - 211,899 14,229 226,128 Corporate bonds - 9,622 - 9,622 Collateralized mortgage obligations - 526,998 6,770 533,768 Asset-backed securities - 186,916 15,012 201,928 Collateralized loan obligations - 174,746 - 174,746 Loans held-for-sale - 491 - 491 Mortgage servicing rights - - 11,189 11,189 Interest rate swap agreements - 6,516 - 6,516 Mortgage banking derivatives - 76 - 76 Total $ 212,129 $ 1,298,302 $ 47,200 $ 1,557,631 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 12,265 $ - $ 12,265 Total $ - $ 12,265 $ - $ 12,265 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Nine Months Ended September 30, 2023 Securities available-for-sale Collateralized States and Mortgage Asset-backed Mortgage Political Servicing Securities Obligations Subdivisions Rights Beginning balance January 1, 2023 $ 15,012 $ 6,770 $ 14,229 $ 11,189 Transfers out of Level 3 (14,885) (6,764) - - Total gains or losses Included in earnings (11) - (99) 232 Included in other comprehensive income 226 (6) (132) - Purchases, issuances, sales, and settlements Purchases - - 406 - Issuances - - - 420 Settlements (342) - (338) (380) Ending balance September 30, 2023 $ - $ - $ 14,066 $ 11,461 Nine Months Ended September 30, 2022 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2022 $ 15,236 $ 7,097 Total gains or losses Included in earnings (98) 4,384 Included in other comprehensive income (1,333) - Purchases, issuances, sales, and settlements Issuances 519 756 Settlements (1,015) (776) Ending balance September 30, 2022 $ 13,309 $ 11,461 The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as of September 30, 2023: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs States and political subdivisions $ 14,066 Discounted Cash Flow Discount Rate 3.5 – 5.9% 4.3 % Liquidity Premium 0.3 – 0.5% 0.5 % Mortgage servicing rights $ 11,461 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 0.0 – 16.4% 6.2 % The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as December 31, 2022: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs States and political subdivisions $ 14,229 Discounted Cash Flow Discount Rate 2.3 – 5.8% 4.4 % Liquidity Premium 0.3 – 0.5% 0.5 % Collateralized mortgage obligations $ 6,770 Discounted Cash Flow Discount Rate 7.0 – 7.0% 7.0 % Asset-backed securities $ 15,012 Discounted Cash Flow Discount Rate 6.2 – 6.5% 6.3 % Mortgage servicing rights $ 11,189 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 3.6 – 27.3% 6.2 % Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis: The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of individually evaluated loans and OREO. For assets measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: September 30, 2023 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 63,322 $ 63,322 Other real estate owned, net 2 - - 407 407 Total $ - $ - $ 63,729 $ 63,729 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, which had a carrying amount of $82.0 million and a valuation allowance of $18.7 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.0 million for the nine months ended September 30, 2023. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $407,000 at September 30, 2023, which is made up of the outstanding balance of $525,000 , and a valuation allowance of $118,000 December 31, 2022 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 47,700 $ 47,700 Other real estate owned, net 2 - - 1,561 1,561 Total $ - $ - $ 49,261 $ 49,261 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, which had a carrying amount of $65.3 million and a valuation allowance of $17.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $12.2 million for the year December 31, 2022. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.6 million at December 31, 2022, which is made up of the outstanding balance of $2.5 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $856,000 . The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and individually evaluated loans are generally valued using the fair value of collateral provided by third party appraisals. These valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales. The numerical ranges of unobservable inputs for these valuation assumptions are not meaningful. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note 12 – Fair Values of Financial Instruments The estimated fair values approximate carrying amount for all items except those described in the following table. Securities available-for-sale fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par. At September 30, 2023 and December 31, 2022, the fair values of loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits was estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off balance sheet volume was not considered material. The carrying amount and estimated fair values of financial instruments were as follows: September 30, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 55,548 $ 55,548 $ 55,548 $ - $ - Interest earning deposits with financial institutions 53,485 53,485 53,485 - - Securities available-for-sale 1,229,618 1,229,618 216,777 998,775 14,066 FHLBC and FRBC stock 35,830 35,830 - 35,830 - Loans held-for-sale 2,297 2,297 - 2,297 - Net loans 3,977,814 3,855,774 - - 3,855,774 Mortgage servicing rights 11,641 11,641 - - 11,641 Interest rate swap agreements 8,980 8,980 - 8,980 - Interest rate lock commitments and forward contracts 37 37 - 37 - Interest receivable on securities and loans 25,921 25,921 - 25,921 - Financial liabilities: Noninterest bearing deposits $ 1,862,659 $ 1,862,659 $ 1,862,659 $ - $ - Interest bearing deposits 2,751,661 2,738,632 - 2,738,632 - Securities sold under repurchase agreements 25,894 25,894 - 25,894 - Other short-term borrowings 435,000 435,000 - 435,000 - Junior subordinated debentures 25,773 19,072 - 19,072 - Subordinated debentures 59,361 46,161 - 46,161 - Senior notes - - - - - Note payable and other borrowings - - - - - Interest rate swap agreements 14,293 14,293 - 14,293 - Interest payable on deposits and borrowings 3,066 3,066 - 3,066 - December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 56,632 $ 56,632 $ 56,632 $ - $ - Interest earning deposits with financial institutions 58,545 58,545 58,545 - - Securities available-for-sale 1,539,359 1,539,359 212,129 1,291,219 36,011 FHLBC and FRBC stock 20,530 20,530 - 20,530 - Loans held-for-sale 491 491 - 491 - Net loans 3,820,129 3,681,387 - - 3,681,387 Mortgage servicing rights 11,189 11,189 - - 11,189 Interest rate swap agreements 6,391 6,391 - 6,391 - Interest rate lock commitments and forward contracts 76 76 - 76 - Interest receivable on securities and loans 22,661 22,661 - 22,661 - Financial liabilities: Noninterest bearing deposits $ 2,051,702 $ 2,051,702 $ 2,051,702 $ - $ - Interest bearing deposits 3,059,021 3,042,740 - 3,042,740 - Securities sold under repurchase agreements 32,156 32,156 - 32,156 - Other short-term borrowings 90,000 90,000 - 90,000 - Junior subordinated debentures 25,773 21,907 - 21,907 - Subordinated debentures 59,297 52,322 - 52,322 - Senior notes 44,585 44,248 44,248 - - Note payable and other borrowings 9,000 8,984 - 8,984 - Interest rate swap agreements 12,264 12,264 - 12,264 - Interest payable on deposits and borrowings 1,657 1,657 - 1,657 - |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2023 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | Note 13 – Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loan portfolio. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. The aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in fair value recorded in other comprehensive income, net of tax. The amount included in other comprehensive income would be reclassified to current earnings should all or a portion of the hedge no longer be considered effective. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest income or interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are received on the variable rate loan pools or paid on the Company’s fixed-rate borrowings. Interest rate swaps with notional amounts totaling $300.0 million and $250.0 million as of September 30, 2023 and December 31, 2022, respectively, were designated as cash flow hedges of certain variable rate commercial and commercial real estate loan pools. Each of these hedges were executed to pay variable and receive fixed rate cash flows. Each of these hedges was determined to be effective during all periods presented and the Company expects the hedges to remain effective during the remaining terms of the swaps. An interest rate swap with a notional amount of $25.8 million as of September 30, 2023 and December 31, 2022, is designated as a cash flow hedge of junior subordinated debentures and was executed to pay fixed and receive variable rate cash flows. The hedge was determined to be effective during all periods presented and the Company expects the hedge to remain effective during the remaining terms of the swap. During the next twelve months, the Company estimates that an additional $7.0 million will be reclassified as an increase to interest income and an additional $708,000 will be reclassified as an increase to interest expense. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. The notional amounts of interest rate swaps with its loan customers as of September 30, 2023 and December 31, 2022 were $105.6 million and $110.6 million, respectively. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. At September 30, 2023 and December 31, 2022, the Company had $9.2 million and $11.2 million of cash collateral pledged with two correspondent financial institutions, respectively. The Company held $8.1 million and $5.3 million of cash pledged from one correspondent financial institution to support the interest rate swap activity during the years presented, respectively. No investment securities were required to be pledged to any correspondent financial institution during 2023 through September 30, 2023, or during 2022. The Company offsets derivative assets and liabilities that are subject to a master netting arrangement. The Company also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan interest rate lock commitments is managed with contracts for future deliveries of loans as well as selling forward mortgage-backed securities contracts. Loan interest rate lock 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. The notional amount of these commitments at September 30, 2023 and December 31, 2022 was $7.6 million and $5.3 million, respectively. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking revenue. Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheets as of September 30, 2023 and December 31, 2022. Fair Value of Derivative Instruments September 30, 2023 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 5 325,774 Other Assets 4,517 Other Liabilities 9,830 Total derivatives designated as hedging instruments 4,517 9,830 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 17 105,558 Other Assets 4,463 Other Liabilities 4,463 Interest rate lock commitments and forward contracts 28 7,613 Other Assets 37 Other Liabilities - Other contracts 4 44,892 Other Assets 48 Other Liabilities - Total derivatives not designated as hedging instruments 4,548 4,463 December 31, 2022 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 4 275,774 Other Assets 2,737 Other Liabilities 8,610 Total derivatives designated as hedging instruments 2,737 8,610 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 21 110,647 Other Assets 3,654 Other Liabilities 3,654 Interest rate lock commitments and forward contracts 28 5,298 Other Assets 76 Other Liabilities - Other contracts 4 43,699 Other Assets 125 Other Liabilities 1 Total derivatives not designated as hedging instruments 3,855 3,655 Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting The fair value and cash flow hedge accounting related to derivatives covered under ASC Subtopic 815-20 impacted Accumulated Other Comprehensive Income (“AOCI”) and the Income Statement. The loss recognized in AOCI on derivatives totaled $3.8 million as of September 30, 2023, and $4.1 million as of September 30, 2022. The amount of the loss reclassified from AOCI to net interest income on the income statement was $3.9 million for the nine months ended September 30, 2023 and $15,000 of gain for the nine months ended September 30, 2022. Credit-risk-related Contingent Features For derivative transactions involving counterparties who are lending customers of the Company, the derivative credit exposure is managed through the normal credit review and monitoring process, which may include collateralization, financial covenants and/or financial guarantees of affiliated parties. Agreements with such customers require that losses associated with derivative transactions receive payment priority from any funds recovered should a customer default and ultimate disposition of collateral or guarantees occur. Credit exposure to broker/dealer counterparties is managed through agreements with each derivative counterparty that require collateralization of fair value gains owed by such counterparties. Some small degree of credit exposure exists due to timing differences between when a gain may occur and the subsequent point in time that collateral is delivered to secure that gain. This is monitored by the Company and procedures are in place to minimize this exposure. Such agreements also require the Company to collateralize counterparties in circumstances wherein the fair value of the derivatives result in loss to the Company. Other provisions of such agreements include the definition of certain events that may lead to the declaration of default and/or the early termination of the derivative transaction(s): ● If the Company either defaults or is capable of being declared in default on any of its indebtedness (exclusive of deposit obligations), then the Company could also be declared in default on its derivative obligations. ● If a merger occurs that materially changes the Company's creditworthiness in an adverse manner. ● If certain specified adverse regulatory actions occur, such as the issuance of a Cease and Desist Order, or citations for actions considered Unsafe and Unsound or that may lead to the termination of deposit insurance coverage by the FDIC. The Bank also issues letters of credit, which are conditional commitments that guarantee the performance of a customer to a third party. The credit risk involved and collateral obtained in issuing letters of credit are essentially the same as that involved in extending loan commitments to our customers. In addition to customer related commitments, the Company is responsible for letters of credit commitments that relate to properties held in OREO. The following table represents the Company’s contractual commitments due to letters of credit as of September 30, 2023, and December 31, 2022. The following table is a summary of letter of credit commitments: September 30, 2023 December 31, 2022 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 173 $ 16,543 $ 16,716 $ 3,514 $ 15,365 $ 18,879 Performance standby 353 15,733 16,086 3,161 13,989 17,150 526 32,276 32,802 6,675 29,354 36,029 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 526 $ 32,343 $ 32,869 $ 6,675 $ 29,421 $ 36,096 Unused loan commitments: $ 146,201 $ 710,271 $ 856,472 $ 139,070 $ 860,255 $ 999,325 As of September 30, 2023, the Company evaluated current market conditions, including any impacts related to market interest rate changes and unused line of credit utilization trends during the second quarter of 2023, and based on that analysis under the CECL methodology, the Company determined credit losses related to unfunded commitments totaled $2.7 million, excluding a $149,000 purchase accounting adjustment on unfunded commitments recorded from our West Suburban acquisition, which is being accreted to interest income over the estimated life of the unused commitments. The resultant decrease in the ACL for unfunded commitments of $235,000 for the third quarter of 2023, compared to the prior quarter end, is primarily related to a $223,000 decrease by accretion to interest income of the purchase accounting adjustment, as well as adjustments to historical benchmark assumptions, such as the funding rates and the period used to forecast those rates within the ACL calculation, resulting in a $12,000 reduction. The Company will continue to assess the credit risk at least quarterly, and adjust the allowance for unfunded commitments, which is carried within other liabilities on our Consolidated Balance Sheets, as needed, with the appropriate offsetting entry to the provision for credit losses on our Consolidated Statements of Income. |
Basis of Presentation and Cha_2
Basis of Presentation and Changes in Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Changes in Significant Accounting Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company : ASU 2018-16, ASU 2020-04, ASU 2021-01, and ASU 2022-06 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting. Reference Rate Reform The Company formed a LIBOR transition team in 2019 and developed a project plan to assess the use of alternative indexes and to seek to ensure all financial instruments that reference LIBOR are identified, quantified, and researched for the LIBOR fallback language available or needed. The Company completed the ISDA protocol adherence for LIBOR fallback language for all commercial swaps, met with its commercial loan clients to also guide their swap fallback language adherence, and worked to revise all credit documents being issued by Old Second National Bank (the “Bank”) for new loans to ensure appropriate fallback language was included. We discontinued the use of LIBOR as a reference rate for all consumer loans issued after July 31, 2021, and all commercial loans issued after December 31, 2021, with certain exceptions for those loans that were in the process of funding at the end of 2021. The Company’s systems were updated to handle multiple SOFR-based indexes and we planned accordingly for the transition of existing LIBOR exposures as the final LIBOR cessation date was June 30, 2023. As of September 30, 2023, the Company’s LIBOR transition processes were determined to be completed and alternative index rates are in place. ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method ASU 2022-02 Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures |
Subsequent Events | Subsequent Events On October 17, 2023, our Board of Directors declared a cash dividend of $0.05 per share payable on November 6, 2023, to stockholders of record as of October 27, 2023; dividends of $2.2 million are scheduled to be paid to stockholders on November 6, 2023. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Securities | |
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss | Gross Gross Amortized Unrealized Unrealized Fair September 30, 2023 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 224,481 $ - $ (7,704) $ 216,777 U.S. government agencies 60,197 - (4,376) 55,821 U.S. government agencies mortgage-backed 122,653 - (18,084) 104,569 States and political subdivisions 240,107 142 (20,149) 220,100 Corporate bonds 5,000 - (39) 4,961 Collateralized mortgage obligations 450,470 54 (63,845) 386,679 Asset-backed securities 71,241 - (4,325) 66,916 Collateralized loan obligations 175,995 10 (2,210) 173,795 Total securities available-for-sale $ 1,350,144 $ 206 $ (120,732) $ 1,229,618 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 224,054 $ - $ (11,925) $ 212,129 U.S. government agencies 61,178 - (5,130) 56,048 U.S. government agencies mortgage-backed 140,588 - (15,598) 124,990 States and political subdivisions 239,999 363 (14,234) 226,128 Corporate bonds 10,000 - (378) 9,622 Collateralized mortgage obligations 596,336 1 (62,569) 533,768 Asset-backed securities 210,388 6 (8,466) 201,928 Collateralized loan obligations 180,276 - (5,530) 174,746 Total securities available-for-sale $ 1,662,819 $ 370 $ (123,830) $ 1,539,359 1 Excludes accrued interest receivable of $6.7 million and $6.8 million at September 30, 2023 and December 31, 2022, respectively, that is recorded in other assets on the consolidated balance sheets. |
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized loan obligations | Weighted Amortized Average Fair Securities available-for-sale Cost Yield Value Due in one year or less $ 49,989 0.64 % $ 49,804 Due after one year through five years 253,955 1.17 241,430 Due after five years through ten years 60,975 2.92 53,882 Due after ten years 164,866 3.11 152,543 529,785 1.92 497,659 Mortgage-backed and collateralized mortgage obligations 573,123 2.29 491,248 Asset-backed securities 71,241 4.24 66,916 Collateralized loan obligations 175,995 7.21 173,795 Total securities available-for-sale $ 1,350,144 3.00 % $ 1,229,618 |
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 months 12 months or more September 30, 2023 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries - $ - $ - 5 $ 7,704 $ 216,777 5 $ 7,704 $ 216,777 U.S. government agencies - - - 9 4,376 55,821 9 4,376 55,821 U.S. government agencies mortgage-backed - - - 128 18,084 104,569 128 18,084 104,569 States and political subdivisions 44 3,232 110,511 30 16,917 104,582 74 20,149 215,093 Corporate bonds - - - 1 39 4,961 1 39 4,961 Collateralized mortgage obligations 2 14 756 146 63,831 379,159 148 63,845 379,915 Asset-backed securities - - - 19 4,325 66,916 19 4,325 66,916 Collateralized loan obligations - - - 33 2,210 170,803 33 2,210 170,803 Total securities available-for-sale 46 $ 3,246 $ 111,267 371 $ 117,486 $ 1,103,588 417 $ 120,732 $ 1,214,855 Less than 12 months 12 months or more December 31, 2022 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries 1 $ 1,025 $ 24,121 4 $ 10,900 $ 188,008 5 $ 11,925 $ 212,129 U.S. government agencies - - - 9 5,130 56,048 9 5,130 56,048 U.S. government agencies mortgage-backed 15 975 11,369 117 14,623 113,621 132 15,598 124,990 States and political subdivisions 45 5,800 128,770 15 8,434 48,877 60 14,234 177,647 Corporate bonds - - - 2 378 9,622 2 378 9,622 Collateralized mortgage obligations 80 12,895 180,624 120 49,674 348,880 200 62,569 529,504 Asset-backed securities 30 3,030 121,915 21 5,436 79,659 51 8,466 201,574 Collateralized loan obligations 23 3,579 112,772 11 1,951 61,974 34 5,530 174,746 Total securities available-for-sale 194 $ 27,304 $ 579,571 299 $ 96,526 $ 906,689 493 $ 123,830 $ 1,486,260 |
Schedule of proceeds from sale and gross realized gains and losses on sale of securities | Three Months Ended Nine Months Ended September 30, September 30, Securities available-for-sale 2023 2022 2023 2022 Proceeds from sales of securities $ 65,572 $ - $ 205,738 $ 3,303 Gross realized losses on securities (924) (1) (4,146) (34) Net realized losses $ (924) $ (1) $ (4,146) $ (34) Income tax benefit on net realized losses $ 260 $ 1 $ 1,165 $ 10 Effective tax rate applied 28.1 % N/M 28.1 % 29.4 % |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Allowance for Credit Losses on Loans | |
Schedule of major classifications of loans | September 30, 2023 December 31, 2022 Commercial $ 834,877 $ 840,964 Leases 354,827 277,385 Commercial real estate – investor 1,047,122 987,635 Commercial real estate – owner occupied 809,050 854,879 Construction 202,546 180,535 Residential real estate – investor 53,762 57,353 Residential real estate – owner occupied 227,446 219,718 Multifamily 372,020 323,691 HELOC 102,055 109,202 Other 1 25,838 18,247 Total loans 4,029,543 3,869,609 Allowance for credit losses on loans (51,729) (49,480) Net loans 2 $ 3,977,814 $ 3,820,129 1 The “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 4 – Loans and Allowance for Credit Losses on Loans. 2 Excludes accrued interest receivable of $19.2 million and $15.9 million at September 30, 2023 and December 31, 2022, respectively, that is recorded in other assets on the consolidated balance sheets. |
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment | Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended September 30, 2023 Commercial $ 11,532 $ (1,025) $ 20 $ 12 $ 10,499 Leases 2,690 (193) - 95 2,592 Commercial real estate – investor 20,031 4,726 6,774 20 18,003 Commercial real estate – owner occupied 12,562 (154) 35 12 12,385 Construction 1,179 (39) - 100 1,240 Residential real estate – investor 743 (55) - 3 691 Residential real estate – owner occupied 1,868 (36) - 25 1,857 Multifamily 2,737 (165) - - 2,572 HELOC 1,694 (77) - 35 1,652 Other 278 30 107 37 238 Total $ 55,314 $ 3,012 $ 6,936 $ 339 $ 51,729 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Nine months ended September 30, 2023 Commercial $ 11,968 $ (1,287) $ 427 $ 245 $ 10,499 Leases 2,865 498 882 111 2,592 Commercial real estate – investor 10,674 14,117 6,845 57 18,003 Commercial real estate – owner occupied 15,001 (2,397) 236 17 12,385 Construction 1,546 (406) - 100 1,240 Residential real estate – investor 768 (104) - 27 691 Residential real estate – owner occupied 2,046 (260) - 71 1,857 Multifamily 2,453 119 - - 2,572 HELOC 1,806 (242) - 88 1,652 Other 353 53 301 133 238 Total $ 49,480 $ 10,091 $ 8,691 $ 849 $ 51,729 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended September 30, 2022 Commercial $ 14,114 $ (919) $ 67 $ 47 $ 13,175 Leases 1,736 (24) 178 - 1,534 Commercial real estate – investor 9,436 256 124 19 9,587 Commercial real estate – owner occupied 11,478 3,618 12 87 15,171 Construction 1,535 9 - - 1,544 Residential real estate – investor 661 147 - 8 816 Residential real estate – owner occupied 1,869 149 - 113 2,131 Multifamily 2,434 33 - 63 2,530 HELOC 1,542 386 - 35 1,963 Other 583 (128) 103 44 396 Total $ 45,388 $ 3,527 $ 484 $ 416 $ 48,847 Provision for Allowance for credit losses Beginning (Release of) Ending Nine months ended September 30, 2022 Balance Credit Losses Charge-offs Recoveries Balance Commercial $ 11,751 $ 1,488 $ 149 $ 85 $ 13,175 Leases 3,480 (1,768) 178 - 1,534 Commercial real estate – investor 10,795 (664) 604 60 9,587 Commercial real estate – owner occupied 4,913 10,289 133 102 15,171 Construction 3,373 (1,829) - - 1,544 Residential real estate – investor 760 33 - 23 816 Residential real estate – owner occupied 2,832 (919) - 218 2,131 Multifamily 3,675 (1,208) - 63 2,530 HELOC 2,510 (649) - 102 1,963 Other 192 404 320 120 396 Total $ 44,281 $ 5,177 $ 1,384 $ 773 $ 48,847 |
Schedule of collateral dependent loans and related loan allowances. | Accounts ACL September 30, 2023 Real Estate Receivable Equipment Other Total Allocation Commercial $ 849 $ 679 $ - $ - $ 1,528 $ 2 Leases - - 339 - 339 339 Commercial real estate – investor 26,724 - - - 26,724 4,848 Commercial real estate – owner occupied 17,636 - - - 17,636 4,201 Construction 7,206 - - - 7,206 - Residential real estate – investor 32 - - - 32 - Residential real estate – owner occupied 1,679 - - - 1,679 - Multifamily 568 - - - 568 - HELOC 39 - - - 39 - Total $ 54,733 $ 679 $ 339 $ - $ 55,751 $ 9,390 Accounts ACL December 31, 2022 Real Estate Receivable Equipment Other Total Allocation Commercial $ 883 $ 5,915 $ - $ 364 $ 7,162 $ 569 Leases - - 1,248 - 1,248 1,248 Commercial real estate – investor 16,576 - - - 16,576 2,875 Commercial real estate – owner occupied 19,188 - - 2,310 21,498 5,808 Residential real estate – investor 675 - - - 675 - Residential real estate – owner occupied 1,817 - - - 1,817 244 Multifamily 1,322 - - - 1,322 - HELOC 180 - - - 180 - Total $ 40,641 $ 5,915 $ 1,248 $ 2,674 $ 50,478 $ 10,744 |
Schedule of aged analysis of past due loans by class of loans | 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and September 30, 2023 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 1,829 $ 1,874 $ 1,052 $ 4,755 $ 830,122 $ 834,877 $ 979 Leases 2,502 - 157 2,659 352,168 354,827 - Commercial real estate – investor 2,205 16,728 16,116 35,049 1,012,073 1,047,122 - Commercial real estate – owner occupied 15,232 120 1,879 17,231 791,819 809,050 - Construction 118 200 7,206 7,524 195,022 202,546 - Residential real estate – investor 252 - 277 529 53,233 53,762 140 Residential real estate – owner occupied 735 419 1,820 2,974 224,472 227,446 - Multifamily 713 127 - 840 371,180 372,020 - HELOC 646 88 259 993 101,062 102,055 90 Other - - - - 25,838 25,838 - Total $ 24,232 $ 19,556 $ 28,766 $ 72,554 $ 3,956,989 $ 4,029,543 $ 1,209 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2022 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 3 $ 1,012 $ 825 $ 1,840 $ 839,124 $ 840,964 $ 460 Leases 447 22 614 1,083 276,302 277,385 - Commercial real estate – investor 3,276 1,276 4,315 8,867 978,768 987,635 - Commercial real estate – owner occupied 373 113 2,211 2,697 852,182 854,879 173 Construction 14 - 116 130 180,405 180,535 - Residential real estate – investor 445 - 987 1,432 55,921 57,353 144 Residential real estate – owner occupied 1,191 - 2,232 3,423 216,295 219,718 485 Multifamily 267 361 1,322 1,950 321,741 323,691 - HELOC 291 90 392 773 108,429 109,202 - Other 19 - - 19 18,228 18,247 - Total $ 6,326 $ 2,874 $ 13,014 $ 22,214 $ 3,847,395 $ 3,869,609 $ 1,262 |
Schedule of loans on nonaccrual for which there was no related allowance | Nonaccrual loan detail September 30, 2023 With no ACL December 31, 2022 With no ACL Commercial $ 2,167 $ 2,167 $ 7,189 $ 6,598 Leases 377 38 1,876 - Commercial real estate – investor 26,724 11,786 4,346 4,244 Commercial real estate – owner occupied 18,290 3,833 8,050 3,813 Construction 7,206 7,206 251 - Residential real estate – investor 1,362 1,362 1,528 675 Residential real estate – owner occupied 3,627 3,627 3,713 1,572 Multifamily 1,141 1,141 2,538 1,322 HELOC 1,222 1,222 2,109 180 Other - - 2 - Total $ 62,116 $ 32,382 $ 31,602 $ 18,404 |
Schedule of credit quality indicators by class of loans | Credit quality indicators by loan segment and loan origination date at September 30, 2023 were as follows: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 215,492 $ 187,682 $ 41,464 $ 13,359 $ 10,676 $ 4,315 $ 311,562 $ 1,379 $ 785,929 Special Mention - 500 244 - 51 - 29,855 - 30,650 Substandard - 79 1,381 2,735 9,689 - 4,414 - 18,298 Total commercial 215,492 188,261 43,089 16,094 20,416 4,315 345,831 1,379 834,877 Leases Pass 151,691 125,092 $ 47,808 17,522 9,545 2,595 - - 354,253 Special Mention - - - - - - - - - Substandard - 339 - - 235 - - - 574 Total leases 151,691 125,431 47,808 17,522 9,780 2,595 - - 354,827 Commercial real estate – investor Pass 176,779 341,597 203,972 111,333 59,770 67,264 8,148 - 968,863 Special Mention - 12,866 11,267 - - - - - 24,133 Substandard 10,964 11,787 1,950 7,748 9,278 - 12,399 - 54,126 Total commercial real estate – investor 187,743 366,250 217,189 119,081 69,048 67,264 20,547 - 1,047,122 Commercial real estate – owner occupied Pass 105,963 139,223 181,543 78,750 54,909 101,396 33,258 - 695,042 Special Mention 1,758 11,722 18,180 26,480 222 354 - - 58,716 Substandard - 14,994 19,926 1,142 18,811 419 - - 55,292 Total commercial real estate – owner occupied 107,721 165,939 219,649 106,372 73,942 102,169 33,258 - 809,050 Construction Pass 26,529 75,698 56,217 19,531 1,837 1,155 3,699 - 184,666 Special Mention 305 312 - - - - - - 617 Substandard - 7,206 - 10,057 - - - - 17,263 Total construction 26,834 83,216 56,217 29,588 1,837 1,155 3,699 - 202,546 Residential real estate – investor Pass 3,310 14,560 8,954 6,317 7,116 10,519 1,417 - 52,193 Special Mention - - 67 - - - - - 67 Substandard - 398 - - 418 686 - - 1,502 Total residential real estate – investor 3,310 14,958 9,021 6,317 7,534 11,205 1,417 - 53,762 Residential real estate – owner occupied Pass 26,371 41,915 41,439 26,544 15,147 71,637 766 - 223,819 Special Mention - - - - - - - - - Substandard - 122 - 90 686 2,729 - - 3,627 Total residential real estate – owner occupied 26,371 42,037 41,439 26,634 15,833 74,366 766 - 227,446 Multifamily Pass 69,947 79,689 101,878 57,792 12,391 42,603 382 - 364,682 Special Mention - 170 3,505 326 1,656 540 - - 6,197 Substandard - 887 - - - 254 - - 1,141 Total multifamily 69,947 80,746 105,383 58,118 14,047 43,397 382 - 372,020 HELOC Pass 1,765 2,760 211 1,443 1,631 2,494 90,317 - 100,621 Special Mention - - - - - - - - - Substandard 39 27 1 1 - 106 1,260 - 1,434 Total HELOC 1,804 2,787 212 1,444 1,631 2,600 91,577 - 102,055 Other Pass 4,461 2,068 1,415 223 151 88 17,432 25,838 Special Mention - - - - - - - - Substandard - - - - - - - - Total other 4,461 2,068 1,415 223 151 88 17,432 - 25,838 Total loans Pass 782,308 1,010,284 684,901 332,814 173,173 304,066 466,981 1,379 3,755,906 Special Mention 2,063 25,570 33,263 26,806 1,929 894 29,855 - 120,380 Substandard 11,003 35,839 23,258 21,773 39,117 4,194 18,073 - 153,257 Total loans $ 795,374 $ 1,071,693 $ 741,422 $ 381,393 $ 214,219 $ 309,154 $ 514,909 $ 1,379 $ 4,029,543 Credit quality indicators by loan segment and loan origination date at December 31, 2022, were as follows: 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 225,056 $ 70,608 $ 21,597 $ 12,742 $ 6,957 $ 2,651 $ 447,821 $ - $ 787,432 Special Mention 1,875 272 1,182 2,432 - - 21,286 - 27,047 Substandard 4,958 2,447 2,981 12,176 7 - 3,916 - 26,485 Total commercial 231,889 73,327 25,760 27,350 6,964 2,651 473,023 - 840,964 Leases Pass 161,379 64,203 $ 26,995 17,653 4,449 830 - - 275,509 Special Mention - - - - - - - - - Substandard 1,606 - - 270 - - - - 1,876 Total leases 162,985 64,203 26,995 17,923 4,449 830 - - 277,385 Commercial real estate – investor Pass 416,094 228,686 118,491 63,845 46,935 46,406 7,113 - 927,570 Special Mention 5,349 1,417 5,490 10,206 1,070 9,123 - - 32,655 Substandard 12,332 2,018 - 10,763 - 2,297 - - 27,410 Total commercial real estate – investor 433,775 232,121 123,981 84,814 48,005 57,826 7,113 - 987,635 Commercial real estate – owner occupied Pass 169,703 223,731 105,669 47,351 49,367 86,660 33,745 - 716,226 Special Mention 8,430 22,242 48,184 17,668 231 1,008 - - 97,763 Substandard 2,546 17,129 1,191 16,962 - 3,062 - - 40,890 Total commercial real estate – owner occupied 180,679 263,102 155,044 81,981 49,598 90,730 33,745 - 854,879 Construction Pass 53,058 65,758 39,542 2,390 226 1,408 1,523 - 163,905 Special Mention - - 15,297 - - - - - 15,297 Substandard 1,217 - - 116 - - - - 1,333 Total construction 54,275 65,758 54,839 2,506 226 1,408 1,523 - 180,535 Residential real estate – investor Pass 14,737 9,910 6,945 8,585 4,853 9,548 991 - 55,569 Special Mention - 70 - - - - - - 70 Substandard 621 - - 499 186 408 - - 1,714 Total residential real estate – investor 15,358 9,980 6,945 9,084 5,039 9,956 991 - 57,353 Residential real estate – owner occupied Pass 41,885 44,884 28,418 16,146 12,152 70,741 1,638 - 215,864 Special Mention - - - - - - - - - Substandard 131 267 237 723 131 2,365 - - 3,854 Total residential real estate – owner occupied 42,016 45,151 28,655 16,869 12,283 73,106 1,638 - 219,718 Multifamily Pass 76,877 126,257 52,262 13,125 39,703 6,098 329 - 314,651 Special Mention 377 3,683 342 1,684 - - - - 6,086 Substandard 2,100 - - - 587 267 - - 2,954 Total multifamily 79,354 129,940 52,604 14,809 40,290 6,365 329 - 323,691 HELOC Pass 2,760 517 1,497 1,703 657 2,288 97,258 - 106,680 Special Mention - - - - - - 111 - 111 Substandard 62 1 - - 67 309 1,972 - 2,411 Total HELOC 2,822 518 1,497 1,703 724 2,597 99,341 - 109,202 Other Pass 4,195 2,835 432 167 69 111 10,436 - 18,245 Special Mention - - - - - - - - - Substandard - - 1 - - - 1 - 2 Total other 4,195 2,835 433 167 69 111 10,437 - 18,247 Total loans Pass 1,165,744 837,389 401,848 183,707 165,368 226,741 600,854 - 3,581,651 Special Mention 16,031 27,684 70,495 31,990 1,301 10,131 21,397 - 179,029 Substandard 25,573 21,862 4,410 41,509 978 8,708 5,889 - 108,929 Total loans $ 1,207,348 $ 886,935 $ 476,753 $ 257,206 $ 167,647 $ 245,580 $ 628,140 $ - $ 3,869,609 |
Schedule of gross charge-offs | Current period gross charge-offs 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Commercial $ - - 17 364 - 46 $ - $ - $ 427 Leases - 870 - - 12 - - - 882 Commercial real estate – investor - 4,121 71 2,653 - - - - 6,845 Commercial real estate – owner occupied - 22 178 4 - 32 - - 236 Construction - - - - - - - - - Residential real estate – investor - - - - - - - - - Residential real estate – owner occupied - - - - - - - - - Multifamily - - - - - - - - - HELOC - - - - - - - - - Other - 3 26 7 - 265 - - 301 Total $ - $ 5,016 $ 292 $ 3,028 $ 12 $ 343 - - $ 8,691 |
Schedule of class of financing receivable | September 30, 2023 Term Extension Combination - Term Extension and Interest Rate Reduction Combination - Term Extension and Payment Delay Total Loans Modified % of Total Loan Segment Modified to Total Loan Segment Commercial $ 1,713 $ 979 $ - $ 2,692 0.3% Commercial real estate – investor 12,755 - 10,608 23,363 2.2% Commercial real estate – owner occupied 16,218 - - 16,218 2.0% Residential real estate – owner occupied 437 - - 437 0.2% Multifamily 254 - - 254 0.1% HELOC 39 - - 39 0.0% Total $ 31,416 $ 979 $ 10,608 $ 43,003 1.1% September 30, 2023 30-59 days past due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loan Modified Commercial $ - $ - $ 979 $ 979 $ 1,713 $ 2,692 Commercial real estate – investor - - - - 23,363 23,363 Commercial real estate – owner occupied - - - - 16,218 16,218 Residential real estate – owner occupied - - - - 437 437 Multifamily - - - - 254 254 HELOC - - - - 39 39 Total $ - $ - $ 979 $ 979 $ 42,024 $ 43,003 September 30, 2023 Weighted-Average Term Extension (In Months) Weighted-Average Interest Rate Change Weighted-Average Delay of Payment (In Months) Commercial 6.74 5.00 % - Commercial real estate – investor 9.81 - 7.17 Commercial real estate – owner occupied 14.00 - - Residential real estate – owner occupied 2.00 - - Multifamily 16.00 - - HELOC 24.00 - - Total 11.17 5.00 % 7.17 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Schedule of major classifications of deposits | September 30, 2023 December 31, 2022 Noninterest bearing demand $ 1,862,659 $ 2,051,702 Savings 1,003,498 1,145,592 NOW accounts 567,997 609,338 Money market accounts 702,176 862,170 Certificates of deposit of less than $100,000 248,272 244,017 Certificates of deposit of $100,000 through $250,000 162,901 157,438 Certificates of deposit of more than $250,000 66,817 40,466 Total deposits $ 4,614,320 $ 5,110,723 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Borrowings | |
Summary of borrowings and junior subordinated debentures | September 30, 2023 December 31, 2022 Securities sold under repurchase agreements $ 25,894 $ 32,156 Other short-term borrowings 435,000 90,000 Junior subordinated debentures 1 25,773 25,773 Subordinated debentures 59,361 59,297 Senior notes - 44,585 Notes payable and other borrowings - 9,000 Total borrowings $ 546,028 $ 260,811 1 See Note 7: Junior Subordinated Debentures |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Compensation Plans | |
Summary of changes in nonvested shares of restricted share rights | September 30, 2023 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 649,210 $ 12.84 Granted 240,149 17.02 Vested (137,534) 12.53 Forfeited (15,191) 14.25 Unvested at September 30 736,634 $ 14.23 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Schedule of Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic earnings per share: Weighted-average common shares outstanding 44,675,489 44,565,626 44,653,451 44,509,072 Net income $ 24,335 $ 19,523 $ 73,504 $ 43,790 Basic earnings per share $ 0.55 $ 0.43 $ 1.65 $ 0.98 Diluted earnings per share: Weighted-average common shares outstanding 44,675,489 44,565,626 44,653,451 44,509,072 Dilutive effect of unvested restricted awards 1 752,920 655,915 736,767 698,920 Diluted average common shares outstanding 45,428,409 45,221,541 45,390,218 45,207,992 Net Income $ 24,335 $ 19,523 $ 73,504 $ 43,790 Diluted earnings per share $ 0.54 $ 0.43 $ 1.62 $ 0.97 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters (T
Regulatory & Capital Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory & Capital Matters | |
Schedule of capital levels and industry defined regulatory minimum required levels | Minimum Capital Well Capitalized Adequacy with Capital Under Prompt Corrective Actual Conservation Buffer, if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio September 30, 2023 Common equity tier 1 capital to risk weighted assets Consolidated $ 530,368 11.00 % $ 337,507 7.00 % N/A N/A Old Second Bank 601,999 12.49 337,389 7.00 $ 313,290 6.50 % Total capital to risk weighted assets Consolidated 667,182 13.84 506,171 10.50 N/A N/A Old Second Bank 653,813 13.57 505,898 10.50 481,808 10.00 Tier 1 capital to risk weighted assets Consolidated 555,368 11.52 409,777 8.50 N/A N/A Old Second Bank 601,999 12.49 409,687 8.50 385,588 8.00 Tier 1 capital to average assets Consolidated 555,368 9.62 230,922 4.00 N/A N/A Old Second Bank 601,999 10.43 230,872 4.00 288,590 5.00 December 31, 2022 Common equity tier 1 capital to risk weighted assets Consolidated $ 457,206 9.67 % $ 330,966 7.00 % N/A N/A Old Second Bank 552,404 11.70 330,498 7.00 $ 306,891 6.50 % Total capital to risk weighted assets Consolidated 592,039 12.52 496,518 10.50 N/A N/A Old Second Bank 602,237 12.75 495,960 10.50 472,343 10.00 Tier 1 capital to risk weighted assets Consolidated 482,206 10.20 401,838 8.50 N/A N/A Old Second Bank 552,404 11.70 401,319 8.50 377,712 8.00 Tier 1 capital to average assets Consolidated 482,206 8.14 236,956 4.00 N/A N/A Old Second Bank 552,404 9.32 237,083 4.00 296,354 5.00 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 216,777 $ - $ - $ 216,777 U.S. government agencies - 55,821 - 55,821 U.S. government agencies mortgage-backed - 104,569 - 104,569 States and political subdivisions - 206,034 14,066 220,100 Corporate bonds - 4,961 - 4,961 Collateralized mortgage obligations - 386,679 - 386,679 Asset-backed securities - 66,916 - 66,916 Collateralized loan obligations - 173,795 - 173,795 Loans held-for-sale - 2,297 - 2,297 Mortgage servicing rights - - 11,461 11,461 Interest rate swap agreements, including risk participation agreement - 9,028 - 9,028 Mortgage banking derivatives - 37 - 37 Total $ 216,777 $ 1,010,137 $ 25,527 $ 1,252,441 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 14,293 $ - $ 14,293 Total $ - $ 14,293 $ - $ 14,293 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 212,129 $ - $ - $ 212,129 U.S. government agencies - 56,048 - 56,048 U.S. government agencies mortgage-backed - 124,990 - 124,990 States and political subdivisions - 211,899 14,229 226,128 Corporate bonds - 9,622 - 9,622 Collateralized mortgage obligations - 526,998 6,770 533,768 Asset-backed securities - 186,916 15,012 201,928 Collateralized loan obligations - 174,746 - 174,746 Loans held-for-sale - 491 - 491 Mortgage servicing rights - - 11,189 11,189 Interest rate swap agreements - 6,516 - 6,516 Mortgage banking derivatives - 76 - 76 Total $ 212,129 $ 1,298,302 $ 47,200 $ 1,557,631 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 12,265 $ - $ 12,265 Total $ - $ 12,265 $ - $ 12,265 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Nine Months Ended September 30, 2023 Securities available-for-sale Collateralized States and Mortgage Asset-backed Mortgage Political Servicing Securities Obligations Subdivisions Rights Beginning balance January 1, 2023 $ 15,012 $ 6,770 $ 14,229 $ 11,189 Transfers out of Level 3 (14,885) (6,764) - - Total gains or losses Included in earnings (11) - (99) 232 Included in other comprehensive income 226 (6) (132) - Purchases, issuances, sales, and settlements Purchases - - 406 - Issuances - - - 420 Settlements (342) - (338) (380) Ending balance September 30, 2023 $ - $ - $ 14,066 $ 11,461 Nine Months Ended September 30, 2022 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2022 $ 15,236 $ 7,097 Total gains or losses Included in earnings (98) 4,384 Included in other comprehensive income (1,333) - Purchases, issuances, sales, and settlements Issuances 519 756 Settlements (1,015) (776) Ending balance September 30, 2022 $ 13,309 $ 11,461 |
Schedule of quantitative information about level 3 fair value measurements | The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as of September 30, 2023: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs States and political subdivisions $ 14,066 Discounted Cash Flow Discount Rate 3.5 – 5.9% 4.3 % Liquidity Premium 0.3 – 0.5% 0.5 % Mortgage servicing rights $ 11,461 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 0.0 – 16.4% 6.2 % The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as December 31, 2022: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs States and political subdivisions $ 14,229 Discounted Cash Flow Discount Rate 2.3 – 5.8% 4.4 % Liquidity Premium 0.3 – 0.5% 0.5 % Collateralized mortgage obligations $ 6,770 Discounted Cash Flow Discount Rate 7.0 – 7.0% 7.0 % Asset-backed securities $ 15,012 Discounted Cash Flow Discount Rate 6.2 – 6.5% 6.3 % Mortgage servicing rights $ 11,189 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 3.6 – 27.3% 6.2 % |
Schedule of assets measured at fair value on a nonrecurring basis | September 30, 2023 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 63,322 $ 63,322 Other real estate owned, net 2 - - 407 407 Total $ - $ - $ 63,729 $ 63,729 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, which had a carrying amount of $82.0 million and a valuation allowance of $18.7 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.0 million for the nine months ended September 30, 2023. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $407,000 at September 30, 2023, which is made up of the outstanding balance of $525,000 , and a valuation allowance of $118,000 December 31, 2022 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 47,700 $ 47,700 Other real estate owned, net 2 - - 1,561 1,561 Total $ - $ - $ 49,261 $ 49,261 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, which had a carrying amount of $65.3 million and a valuation allowance of $17.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $12.2 million for the year December 31, 2022. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.6 million at December 31, 2022, which is made up of the outstanding balance of $2.5 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $856,000 . |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Values of Financial Instruments | |
Schedule of carrying amount and estimated fair values of financial instruments | September 30, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 55,548 $ 55,548 $ 55,548 $ - $ - Interest earning deposits with financial institutions 53,485 53,485 53,485 - - Securities available-for-sale 1,229,618 1,229,618 216,777 998,775 14,066 FHLBC and FRBC stock 35,830 35,830 - 35,830 - Loans held-for-sale 2,297 2,297 - 2,297 - Net loans 3,977,814 3,855,774 - - 3,855,774 Mortgage servicing rights 11,641 11,641 - - 11,641 Interest rate swap agreements 8,980 8,980 - 8,980 - Interest rate lock commitments and forward contracts 37 37 - 37 - Interest receivable on securities and loans 25,921 25,921 - 25,921 - Financial liabilities: Noninterest bearing deposits $ 1,862,659 $ 1,862,659 $ 1,862,659 $ - $ - Interest bearing deposits 2,751,661 2,738,632 - 2,738,632 - Securities sold under repurchase agreements 25,894 25,894 - 25,894 - Other short-term borrowings 435,000 435,000 - 435,000 - Junior subordinated debentures 25,773 19,072 - 19,072 - Subordinated debentures 59,361 46,161 - 46,161 - Senior notes - - - - - Note payable and other borrowings - - - - - Interest rate swap agreements 14,293 14,293 - 14,293 - Interest payable on deposits and borrowings 3,066 3,066 - 3,066 - December 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 56,632 $ 56,632 $ 56,632 $ - $ - Interest earning deposits with financial institutions 58,545 58,545 58,545 - - Securities available-for-sale 1,539,359 1,539,359 212,129 1,291,219 36,011 FHLBC and FRBC stock 20,530 20,530 - 20,530 - Loans held-for-sale 491 491 - 491 - Net loans 3,820,129 3,681,387 - - 3,681,387 Mortgage servicing rights 11,189 11,189 - - 11,189 Interest rate swap agreements 6,391 6,391 - 6,391 - Interest rate lock commitments and forward contracts 76 76 - 76 - Interest receivable on securities and loans 22,661 22,661 - 22,661 - Financial liabilities: Noninterest bearing deposits $ 2,051,702 $ 2,051,702 $ 2,051,702 $ - $ - Interest bearing deposits 3,059,021 3,042,740 - 3,042,740 - Securities sold under repurchase agreements 32,156 32,156 - 32,156 - Other short-term borrowings 90,000 90,000 - 90,000 - Junior subordinated debentures 25,773 21,907 - 21,907 - Subordinated debentures 59,297 52,322 - 52,322 - Senior notes 44,585 44,248 44,248 - - Note payable and other borrowings 9,000 8,984 - 8,984 - Interest rate swap agreements 12,264 12,264 - 12,264 - Interest payable on deposits and borrowings 1,657 1,657 - 1,657 - |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |
Schedule of fair value of derivative financial instruments as well as their classification on the Balance Sheet | September 30, 2023 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 5 325,774 Other Assets 4,517 Other Liabilities 9,830 Total derivatives designated as hedging instruments 4,517 9,830 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 17 105,558 Other Assets 4,463 Other Liabilities 4,463 Interest rate lock commitments and forward contracts 28 7,613 Other Assets 37 Other Liabilities - Other contracts 4 44,892 Other Assets 48 Other Liabilities - Total derivatives not designated as hedging instruments 4,548 4,463 December 31, 2022 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 4 275,774 Other Assets 2,737 Other Liabilities 8,610 Total derivatives designated as hedging instruments 2,737 8,610 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 21 110,647 Other Assets 3,654 Other Liabilities 3,654 Interest rate lock commitments and forward contracts 28 5,298 Other Assets 76 Other Liabilities - Other contracts 4 43,699 Other Assets 125 Other Liabilities 1 Total derivatives not designated as hedging instruments 3,855 3,655 |
Schedule of financial instrument commitments | September 30, 2023 December 31, 2022 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 173 $ 16,543 $ 16,716 $ 3,514 $ 15,365 $ 18,879 Performance standby 353 15,733 16,086 3,161 13,989 17,150 526 32,276 32,802 6,675 29,354 36,029 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 526 $ 32,343 $ 32,869 $ 6,675 $ 29,421 $ 36,096 Unused loan commitments: $ 146,201 $ 710,271 $ 856,472 $ 139,070 $ 860,255 $ 999,325 |
Basis of Presentation and Cha_3
Basis of Presentation and Changes in Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 06, 2023 | Oct. 17, 2023 |
Subsequent Events | ||
Cash dividend declared (per share) | $ 0.05 | |
Dividends paid | $ 2.2 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Dec. 01, 2021 | Sep. 30, 2023 | Dec. 31, 2022 |
Liabilities | |||
Goodwill | $ 86,478,000 | $ 86,478,000 | |
West Suburban acquired loans | |||
Assets | |||
Securities available-for-sale and held-to maturity, at fair value | $ 1,070,000,000 | ||
Loans, net of allowance for credit losses Day One PCD loan adjustment | 1,500,000,000 | ||
Total assets | 2,940,000,000 | ||
Liabilities | |||
Total deposits | 2,690,000,000 | ||
Cash consideration paid | 100,700,000 | ||
Goodwill | $ 67,900,000 | ||
Shares issued or issuable | 42.413 | ||
Cash consideration for each share | $ 271.15 | ||
Merger consideration | $ 295,200,000 | ||
Common stock shares issued | 15,700,000 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Securities Available-for-Sale | ||
Amortized Cost | $ 1,350,144 | $ 1,662,819 |
Gross Unrealized Gains | 206 | 370 |
Gross Unrealized Losses | (120,732) | (123,830) |
Securities available-for-sale | 1,229,618 | 1,539,359 |
Accrued interest receivable | 6,700 | 6,800 |
FHLB and FRB Stock | ||
FHLBC stock | 20,900 | 5,600 |
FRBC stock | 14,900 | 14,900 |
Securities pledged to secure deposits and for other purposes | 808,700 | 547,800 |
Other disclosures | ||
Securities available-for-sale | $ 1,229,618 | 1,539,359 |
Number of securities issued from originators | item | 0 | |
Number of originators | item | 1 | |
Minimum percentage of securities investment | 10% | |
U.S. Treasury | ||
Securities Available-for-Sale | ||
Amortized Cost | $ 224,481 | 224,054 |
Gross Unrealized Losses | (7,704) | (11,925) |
Securities available-for-sale | 216,777 | 212,129 |
Other disclosures | ||
Securities available-for-sale | 216,777 | 212,129 |
U.S. government agencies | ||
Securities Available-for-Sale | ||
Amortized Cost | 60,197 | 61,178 |
Gross Unrealized Losses | (4,376) | (5,130) |
Securities available-for-sale | 55,821 | 56,048 |
Other disclosures | ||
Securities available-for-sale | 55,821 | 56,048 |
U.S. government agencies mortgage-backed | ||
Securities Available-for-Sale | ||
Amortized Cost | 122,653 | 140,588 |
Gross Unrealized Losses | (18,084) | (15,598) |
Securities available-for-sale | 104,569 | 124,990 |
Other disclosures | ||
Securities available-for-sale | 104,569 | 124,990 |
States and political subdivisions | ||
Securities Available-for-Sale | ||
Amortized Cost | 240,107 | 239,999 |
Gross Unrealized Gains | 142 | 363 |
Gross Unrealized Losses | (20,149) | (14,234) |
Securities available-for-sale | 220,100 | 226,128 |
Other disclosures | ||
Securities available-for-sale | 220,100 | 226,128 |
Corporate bonds | ||
Securities Available-for-Sale | ||
Amortized Cost | 5,000 | 10,000 |
Gross Unrealized Losses | (39) | (378) |
Securities available-for-sale | 4,961 | 9,622 |
Other disclosures | ||
Securities available-for-sale | 4,961 | 9,622 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 450,470 | 596,336 |
Gross Unrealized Gains | 54 | 1 |
Gross Unrealized Losses | (63,845) | (62,569) |
Securities available-for-sale | 386,679 | 533,768 |
Other disclosures | ||
Securities available-for-sale | 386,679 | 533,768 |
Asset-backed Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 71,241 | 210,388 |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | (4,325) | (8,466) |
Securities available-for-sale | 66,916 | 201,928 |
Other disclosures | ||
Securities available-for-sale | 66,916 | 201,928 |
Collateralized loan obligations. | ||
Securities Available-for-Sale | ||
Amortized Cost | 175,995 | 180,276 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (2,210) | (5,530) |
Securities available-for-sale | 173,795 | 174,746 |
Other disclosures | ||
Securities available-for-sale | $ 173,795 | $ 174,746 |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 49,989 | |
Due after one year through five years | 253,955 | |
Due after five years through ten years | 60,975 | |
Due after ten years | 164,866 | |
Debt securities excluding securities not due at a single maturity date | 529,785 | |
Total | $ 1,350,144 | $ 1,662,819 |
Securities Available-for-Sale, Weighted Average Yield | ||
Due in one year or less (as a percent) | 0.64% | |
Due after one year through five years (as a percent) | 1.17% | |
Due after five years through ten years (as a percent) | 2.92% | |
Due after ten years (as a percent) | 3.11% | |
Debt securities (as a percent) | 1.92% | |
Total (as a percent) | 3% | |
Securities Available-for-Sale, Fair Value | ||
Due in one year or less | $ 49,804 | |
Due after one year through five years | 241,430 | |
Due after five years through ten years | 53,882 | |
Due after ten years | 152,543 | |
Debt securities | 497,659 | |
Debt Securities, Available-for-sale, Total | 1,229,618 | 1,539,359 |
Mortgage-backed and collateralized mortgage obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | $ 573,123 | |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 2.29% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 491,248 | |
Asset-backed Securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 71,241 | |
Total | $ 71,241 | 210,388 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 4.24% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 66,916 | |
Debt Securities, Available-for-sale, Total | 66,916 | 201,928 |
Collateralized loan obligations. | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 175,995 | |
Total | $ 175,995 | 180,276 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 7.21% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 173,795 | |
Debt Securities, Available-for-sale, Total | $ 173,795 | $ 174,746 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 USD ($) security | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 46 | 46 | 194 |
Greater than 12 months in an unrealized loss position | security | 371 | 371 | 299 |
Total | 417 | 417 | 493 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 3,246,000 | $ 3,246,000 | $ 27,304,000 |
Greater than 12 months in an unrealized loss position | 117,486,000 | 117,486,000 | 96,526,000 |
Total | 120,732,000 | 120,732,000 | 123,830,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 111,267,000 | 111,267,000 | 579,571,000 |
Greater than 12 months in an unrealized loss position | 1,103,588,000 | 1,103,588,000 | 906,689,000 |
Total | 1,214,855,000 | $ 1,214,855,000 | 1,486,260,000 |
Effective duration (in years) | 3 years | ||
Credit losses were determined | 0 | $ 0 | $ 0 |
Provision for credit losses on securities | $ 0 | ||
U.S. Treasury | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 1 | ||
Greater than 12 months in an unrealized loss position | security | 5 | 5 | 4 |
Total | 5 | 5 | 5 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 1,025,000 | ||
Greater than 12 months in an unrealized loss position | $ 7,704,000 | $ 7,704,000 | 10,900,000 |
Total | 7,704,000 | 7,704,000 | 11,925,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 24,121,000 | ||
Greater than 12 months in an unrealized loss position | 216,777,000 | 216,777,000 | 188,008,000 |
Total | $ 216,777,000 | $ 216,777,000 | $ 212,129,000 |
U.S. government agencies | |||
Securities Available-for-Sale, Number of Securities | |||
Greater than 12 months in an unrealized loss position | security | 9 | 9 | 9 |
Total | 9 | 9 | 9 |
Securities Available-for-Sale, Unrealized Losses | |||
Greater than 12 months in an unrealized loss position | $ 4,376,000 | $ 4,376,000 | $ 5,130,000 |
Total | 4,376,000 | 4,376,000 | 5,130,000 |
Securities Available-for-Sale, Fair Value | |||
Greater than 12 months in an unrealized loss position | 55,821,000 | 55,821,000 | 56,048,000 |
Total | $ 55,821,000 | $ 55,821,000 | $ 56,048,000 |
Mortgage Backed Securities, Issued by US Government Agencies | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 15 | ||
Greater than 12 months in an unrealized loss position | security | 128 | 128 | 117 |
Total | 128 | 128 | 132 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 975,000 | ||
Greater than 12 months in an unrealized loss position | $ 18,084,000 | $ 18,084,000 | 14,623,000 |
Total | 18,084,000 | 18,084,000 | 15,598,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 11,369,000 | ||
Greater than 12 months in an unrealized loss position | 104,569,000 | 104,569,000 | 113,621,000 |
Total | $ 104,569,000 | $ 104,569,000 | $ 124,990,000 |
States and political subdivisions | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 44 | 44 | 45 |
Greater than 12 months in an unrealized loss position | security | 30 | 30 | 15 |
Total | 74 | 74 | 60 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 3,232,000 | $ 3,232,000 | $ 5,800,000 |
Greater than 12 months in an unrealized loss position | 16,917,000 | 16,917,000 | 8,434,000 |
Total | 20,149,000 | 20,149,000 | 14,234,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 110,511,000 | 110,511,000 | 128,770,000 |
Greater than 12 months in an unrealized loss position | 104,582,000 | 104,582,000 | 48,877,000 |
Total | $ 215,093,000 | $ 215,093,000 | $ 177,647,000 |
Corporate bonds | |||
Securities Available-for-Sale, Number of Securities | |||
Greater than 12 months in an unrealized loss position | security | 1 | 1 | 2 |
Total | 1 | 1 | 2 |
Securities Available-for-Sale, Unrealized Losses | |||
Greater than 12 months in an unrealized loss position | $ 39,000 | $ 39,000 | $ 378,000 |
Total | 39,000 | 39,000 | 378,000 |
Securities Available-for-Sale, Fair Value | |||
Greater than 12 months in an unrealized loss position | 4,961,000 | 4,961,000 | 9,622,000 |
Total | $ 4,961,000 | $ 4,961,000 | $ 9,622,000 |
Collateralized mortgage obligations | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 2 | 2 | 80 |
Greater than 12 months in an unrealized loss position | security | 146 | 146 | 120 |
Total | 148 | 148 | 200 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 14,000 | $ 14,000 | $ 12,895,000 |
Greater than 12 months in an unrealized loss position | 63,831,000 | 63,831,000 | 49,674,000 |
Total | 63,845,000 | 63,845,000 | 62,569,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 756,000 | 756,000 | 180,624,000 |
Greater than 12 months in an unrealized loss position | 379,159,000 | 379,159,000 | 348,880,000 |
Total | $ 379,915,000 | $ 379,915,000 | $ 529,504,000 |
Asset-backed Securities | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 30 | ||
Greater than 12 months in an unrealized loss position | security | 19 | 19 | 21 |
Total | 19 | 19 | 51 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 3,030,000 | ||
Greater than 12 months in an unrealized loss position | $ 4,325,000 | $ 4,325,000 | 5,436,000 |
Total | 4,325,000 | 4,325,000 | 8,466,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 121,915,000 | ||
Greater than 12 months in an unrealized loss position | 66,916,000 | 66,916,000 | 79,659,000 |
Total | $ 66,916,000 | $ 66,916,000 | $ 201,574,000 |
Collateralized loan obligations. | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 23 | ||
Greater than 12 months in an unrealized loss position | security | 33 | 33 | 11 |
Total | 33 | 33 | 34 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 3,579,000 | ||
Greater than 12 months in an unrealized loss position | $ 2,210,000 | $ 2,210,000 | 1,951,000 |
Total | 2,210,000 | 2,210,000 | 5,530,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 112,772,000 | ||
Greater than 12 months in an unrealized loss position | 170,803,000 | 170,803,000 | 61,974,000 |
Total | $ 170,803,000 | $ 170,803,000 | $ 174,746,000 |
Securities - Realized Gain (Los
Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Securities | ||||
Proceeds from sales of securities | $ 65,572 | $ 205,738 | $ 3,303 | |
Gross realized losses on securities | (924) | $ (1) | (4,146) | (34) |
Net realized losses | (924) | (1) | (4,146) | (34) |
Income tax benefit on net realized losses | $ 260 | $ 1 | $ 1,165 | $ 10 |
Effective tax rate applied (as a percent) | 28.10% | 28.10% | 29.40% |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans | ||||||
Total Loans | $ 4,029,543 | $ 3,869,609 | ||||
Allowance for credit losses | (51,729) | $ (55,314) | (49,480) | $ (48,847) | $ (45,388) | $ (44,281) |
Net loans | 3,977,814 | 3,820,129 | ||||
Loans and leases receivable, accrued interest receivable | 19,200 | 15,900 | ||||
Commercial | ||||||
Loans | ||||||
Total Loans | 834,877 | 840,964 | ||||
Allowance for credit losses | (10,499) | (11,532) | (11,968) | (13,175) | (14,114) | (11,751) |
Leases | ||||||
Loans | ||||||
Total Loans | 354,827 | 277,385 | ||||
Allowance for credit losses | (2,592) | (2,690) | (2,865) | (1,534) | (1,736) | (3,480) |
Commercial real estate - Investor | ||||||
Loans | ||||||
Total Loans | 1,047,122 | 987,635 | ||||
Allowance for credit losses | (18,003) | (20,031) | (10,674) | (9,587) | (9,436) | (10,795) |
Commercial real estate - Owner occupied | ||||||
Loans | ||||||
Total Loans | 809,050 | 854,879 | ||||
Allowance for credit losses | (12,385) | (12,562) | (15,001) | (15,171) | (11,478) | (4,913) |
Construction | ||||||
Loans | ||||||
Total Loans | 202,546 | 180,535 | ||||
Residential real estate - Investor | ||||||
Loans | ||||||
Total Loans | 53,762 | 57,353 | ||||
Allowance for credit losses | (691) | (743) | (768) | (816) | (661) | (760) |
Residential real estate - Owner occupied | ||||||
Loans | ||||||
Total Loans | 227,446 | 219,718 | ||||
Allowance for credit losses | (1,857) | (1,868) | (2,046) | (2,131) | (1,869) | (2,832) |
Multifamily | ||||||
Loans | ||||||
Total Loans | 372,020 | 323,691 | ||||
Allowance for credit losses | (2,572) | (2,737) | (2,453) | (2,530) | (2,434) | (3,675) |
HELOC | ||||||
Loans | ||||||
Total Loans | 102,055 | 109,202 | ||||
Allowance for credit losses | (1,652) | $ (1,694) | (1,806) | $ (1,963) | $ (1,542) | $ (2,510) |
Other | ||||||
Loans | ||||||
Total Loans | $ 25,838 | $ 18,247 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Real estate | Loan receivables | Customer Concentration Risk | ||
Loans | ||
Loans receivable as a percentage of total portfolio | 69.80% | 70.60% |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 55,314,000 | $ 45,388,000 | $ 49,480,000 | $ 44,281,000 | |
(Release of) Provision for Credit Losses | 3,012,000 | 3,527,000 | 10,091,000 | 5,177,000 | |
Charge-offs | 6,936,000 | 484,000 | 8,691,000 | 1,384,000 | |
Recoveries | 339,000 | 416,000 | 849,000 | 773,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 51,729,000 | 48,847,000 | 51,729,000 | 48,847,000 | |
Less: allowance for credit losses on loans | 51,729,000 | 48,847,000 | 51,729,000 | 48,847,000 | $ 49,480,000 |
Net provision expense | 8,500,000 | ||||
Increased reserve on loans | 160,000,000 | ||||
Allowance for credit loss unfunded commitment, purchase accounting adjustment | 149,000 | 149,000 | |||
Commercial | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 11,532,000 | 14,114,000 | 11,968,000 | 11,751,000 | |
(Release of) Provision for Credit Losses | (1,025,000) | (919,000) | (1,287,000) | 1,488,000 | |
Charge-offs | 20,000 | 67,000 | 427,000 | 149,000 | |
Recoveries | 12,000 | 47,000 | 245,000 | 85,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 10,499,000 | 13,175,000 | 10,499,000 | 13,175,000 | |
Less: allowance for credit losses on loans | 10,499,000 | 13,175,000 | 10,499,000 | 13,175,000 | 11,968,000 |
Leases | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,690,000 | 1,736,000 | 2,865,000 | 3,480,000 | |
(Release of) Provision for Credit Losses | (193,000) | (24,000) | 498,000 | (1,768,000) | |
Charge-offs | 178,000 | 882,000 | 178,000 | ||
Recoveries | 95,000 | 111,000 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,592,000 | 1,534,000 | 2,592,000 | 1,534,000 | |
Less: allowance for credit losses on loans | 2,592,000 | 1,534,000 | 2,592,000 | 1,534,000 | 2,865,000 |
Commercial real estate - Investor | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 20,031,000 | 9,436,000 | 10,674,000 | 10,795,000 | |
(Release of) Provision for Credit Losses | 4,726,000 | 256,000 | 14,117,000 | (664,000) | |
Charge-offs | 6,774,000 | 124,000 | 6,845,000 | 604,000 | |
Recoveries | 20,000 | 19,000 | 57,000 | 60,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 18,003,000 | 9,587,000 | 18,003,000 | 9,587,000 | |
Less: allowance for credit losses on loans | 18,003,000 | 9,587,000 | 18,003,000 | 9,587,000 | 10,674,000 |
Commercial real estate - Owner occupied | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 12,562,000 | 11,478,000 | 15,001,000 | 4,913,000 | |
(Release of) Provision for Credit Losses | (154,000) | 3,618,000 | (2,397,000) | 10,289,000 | |
Charge-offs | 35,000 | 12,000 | 236,000 | 133,000 | |
Recoveries | 12,000 | 87,000 | 17,000 | 102,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 12,385,000 | 15,171,000 | 12,385,000 | 15,171,000 | |
Less: allowance for credit losses on loans | 12,385,000 | 15,171,000 | 12,385,000 | 15,171,000 | 15,001,000 |
Real estate - construction | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,179,000 | 1,535,000 | 1,546,000 | 3,373,000 | |
(Release of) Provision for Credit Losses | (39,000) | 9,000 | (406,000) | (1,829,000) | |
Recoveries | 100,000 | 100,000 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,240,000 | 1,544,000 | 1,240,000 | 1,544,000 | |
Less: allowance for credit losses on loans | 1,240,000 | 1,544,000 | 1,240,000 | 1,544,000 | 1,546,000 |
Residential real estate - Investor | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 743,000 | 661,000 | 768,000 | 760,000 | |
(Release of) Provision for Credit Losses | (55,000) | 147,000 | (104,000) | 33,000 | |
Recoveries | 3,000 | 8,000 | 27,000 | 23,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 691,000 | 816,000 | 691,000 | 816,000 | |
Less: allowance for credit losses on loans | 691,000 | 816,000 | 691,000 | 816,000 | 768,000 |
Residential real estate - Owner occupied | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,868,000 | 1,869,000 | 2,046,000 | 2,832,000 | |
(Release of) Provision for Credit Losses | (36,000) | 149,000 | (260,000) | (919,000) | |
Recoveries | 25,000 | 113,000 | 71,000 | 218,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,857,000 | 2,131,000 | 1,857,000 | 2,131,000 | |
Less: allowance for credit losses on loans | 1,857,000 | 2,131,000 | 1,857,000 | 2,131,000 | 2,046,000 |
Multifamily | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,737,000 | 2,434,000 | 2,453,000 | 3,675,000 | |
(Release of) Provision for Credit Losses | (165,000) | 33,000 | 119,000 | (1,208,000) | |
Recoveries | 63,000 | 63,000 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,572,000 | 2,530,000 | 2,572,000 | 2,530,000 | |
Less: allowance for credit losses on loans | 2,572,000 | 2,530,000 | 2,572,000 | 2,530,000 | 2,453,000 |
HELOC | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,694,000 | 1,542,000 | 1,806,000 | 2,510,000 | |
(Release of) Provision for Credit Losses | (77,000) | 386,000 | (242,000) | (649,000) | |
Recoveries | 35,000 | 35,000 | 88,000 | 102,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,652,000 | 1,963,000 | 1,652,000 | 1,963,000 | |
Less: allowance for credit losses on loans | 1,652,000 | 1,963,000 | 1,652,000 | 1,963,000 | 1,806,000 |
Other | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 278,000 | 583,000 | 353,000 | 192,000 | |
(Release of) Provision for Credit Losses | 30,000 | (128,000) | 53,000 | 404,000 | |
Charge-offs | 107,000 | 103,000 | 301,000 | 320,000 | |
Recoveries | 37,000 | 44,000 | 133,000 | 120,000 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 238,000 | 396,000 | 238,000 | 396,000 | |
Less: allowance for credit losses on loans | 238,000 | 396,000 | 238,000 | 396,000 | 353,000 |
Unfunded Loan Commitment | |||||
Allowance for loan losses: | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4,300,000 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,700,000 | 4,400,000 | 2,700,000 | 4,400,000 | |
Less: allowance for credit losses on loans | 2,700,000 | 4,400,000 | 2,700,000 | 4,400,000 | 4,300,000 |
Allowance for credit loss unfunded commitment, purchase accounting adjustment | 149,000 | $ 1,000,000 | 149,000 | $ 1,000,000 | $ 819,000 |
Unfunded Loan Commitment | Other Liabilities [Member] | |||||
Allowance for loan losses: | |||||
ACL on unfunded commitments | $ 2,900,000 | $ 2,900,000 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | $ 3,977,814,000 | $ 3,820,129,000 | ||||
Less: allowance for credit losses on loans | 51,729,000 | $ 55,314,000 | 49,480,000 | $ 48,847,000 | $ 45,388,000 | $ 44,281,000 |
Non accuring loan | 500,000 | |||||
Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 55,751,000 | 50,478,000 | ||||
Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 54,733,000 | 40,641,000 | ||||
Accounts Receivable | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 679,000 | 5,915,000 | ||||
Equipment | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 339,000 | 1,248,000 | ||||
Other. | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 2,674,000 | |||||
Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 9,390,000 | 10,744,000 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 10,499,000 | 11,532,000 | 11,968,000 | 13,175,000 | 14,114,000 | 11,751,000 |
Commercial | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 1,528,000 | 7,162,000 | ||||
Commercial | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 849,000 | 883,000 | ||||
Commercial | Accounts Receivable | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 679,000 | 5,915,000 | ||||
Commercial | Other. | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 364,000 | |||||
Commercial | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 2,000 | 569,000 | ||||
Leases | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 2,592,000 | 2,690,000 | 2,865,000 | 1,534,000 | 1,736,000 | 3,480,000 |
Leases | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 339,000 | 1,248,000 | ||||
Leases | Equipment | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 339,000 | 1,248,000 | ||||
Leases | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 339,000 | 1,248,000 | ||||
Commercial real estate - Investor | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 18,003,000 | 20,031,000 | 10,674,000 | 9,587,000 | 9,436,000 | 10,795,000 |
Commercial real estate - Investor | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 26,724,000 | 16,576,000 | ||||
Commercial real estate - Investor | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 26,724,000 | 16,576,000 | ||||
Commercial real estate - Investor | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 4,848,000 | 2,875,000 | ||||
Commercial real estate - Owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 12,385,000 | 12,562,000 | 15,001,000 | 15,171,000 | 11,478,000 | 4,913,000 |
Commercial real estate - Owner occupied | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 17,636,000 | 21,498,000 | ||||
Commercial real estate - Owner occupied | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 17,636,000 | 19,188,000 | ||||
Commercial real estate - Owner occupied | Other. | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 2,310,000 | |||||
Commercial real estate - Owner occupied | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 4,201,000 | 5,808,000 | ||||
Construction | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 7,206,000 | |||||
Construction | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 7,206,000 | |||||
Residential real estate - Investor | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 691,000 | 743,000 | 768,000 | 816,000 | 661,000 | 760,000 |
Residential real estate - Investor | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 32,000 | 675,000 | ||||
Residential real estate - Investor | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 32,000 | 675,000 | ||||
Residential real estate - Owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 1,857,000 | 1,868,000 | 2,046,000 | 2,131,000 | 1,869,000 | 2,832,000 |
Residential real estate - Owner occupied | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 1,679,000 | 1,817,000 | ||||
Residential real estate - Owner occupied | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 1,679,000 | 1,817,000 | ||||
Residential real estate - Owner occupied | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 244,000 | |||||
Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 2,572,000 | 2,737,000 | 2,453,000 | 2,530,000 | 2,434,000 | 3,675,000 |
Multifamily | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 568,000 | 1,322,000 | ||||
Multifamily | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 568,000 | 1,322,000 | ||||
HELOC | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | 1,652,000 | 1,694,000 | 1,806,000 | 1,963,000 | 1,542,000 | 2,510,000 |
HELOC | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 39,000 | 180,000 | ||||
HELOC | Real Estate | Asset Pledged as Collateral without Right | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans, including deferred loan loan costs and PCI | 39,000 | 180,000 | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: allowance for credit losses on loans | $ 238,000 | $ 278,000 | $ 353,000 | $ 396,000 | $ 583,000 | $ 192,000 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Aged analysis of past due loans | ||
Total Loans | $ 4,029,543 | $ 3,869,609 |
Total loans, including deferred loan loan costs and PCI | 3,977,814 | 3,820,129 |
Recorded Investment 90 days or Greater Past Due and Accruing | 1,209 | 1,262 |
Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 120,380 | 179,029 |
Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 72,554 | |
Total Past Due Including PCI loans | 22,214 | |
30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 24,232 | |
Total Past Due Including PCI loans | 6,326 | |
60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 19,556 | |
Total Past Due Including PCI loans | 2,874 | |
90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 28,766 | |
Total Past Due Including PCI loans | 13,014 | |
Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 3,956,989 | |
Current including PCI Loans | 3,847,395 | |
Commercial | ||
Aged analysis of past due loans | ||
Total Loans | 834,877 | 840,964 |
Recorded Investment 90 days or Greater Past Due and Accruing | 979 | 460 |
Commercial | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 30,650 | 27,047 |
Commercial | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 4,755 | 1,840 |
Commercial | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 1,829 | 3 |
Commercial | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 1,874 | 1,012 |
Commercial | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,052 | 825 |
Commercial | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 830,122 | 839,124 |
Leases | ||
Aged analysis of past due loans | ||
Total Loans | 354,827 | 277,385 |
Leases | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 2,659 | 1,083 |
Leases | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 2,502 | 447 |
Leases | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 22 | |
Leases | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 157 | 614 |
Leases | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 352,168 | 276,302 |
Commercial real estate - Investor | ||
Aged analysis of past due loans | ||
Total Loans | 1,047,122 | 987,635 |
Commercial real estate - Investor | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 24,133 | 32,655 |
Commercial real estate - Investor | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 35,049 | 8,867 |
Commercial real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 2,205 | 3,276 |
Commercial real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 16,728 | 1,276 |
Commercial real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 16,116 | 4,315 |
Commercial real estate - Investor | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 1,012,073 | 978,768 |
Commercial real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Total Loans | 809,050 | 854,879 |
Recorded Investment 90 days or Greater Past Due and Accruing | 173 | |
Commercial real estate - Owner occupied | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 58,716 | 97,763 |
Commercial real estate - Owner occupied | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 17,231 | 2,697 |
Commercial real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 15,232 | 373 |
Commercial real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 120 | 113 |
Commercial real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,879 | 2,211 |
Commercial real estate - Owner occupied | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 791,819 | 852,182 |
Real estate - construction | ||
Aged analysis of past due loans | ||
Total Loans | 202,546 | 180,535 |
Real estate - construction | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 7,524 | 130 |
Real estate - construction | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 118 | 14 |
Real estate - construction | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 200 | |
Real estate - construction | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 7,206 | 116 |
Real estate - construction | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 195,022 | 180,405 |
Residential real estate - Investor | ||
Aged analysis of past due loans | ||
Total Loans | 53,762 | 57,353 |
Recorded Investment 90 days or Greater Past Due and Accruing | 140 | 144 |
Residential real estate - Investor | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 67 | 70 |
Residential real estate - Investor | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 529 | 1,432 |
Residential real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 252 | 445 |
Residential real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 277 | 987 |
Residential real estate - Investor | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 53,233 | 55,921 |
Residential real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Total Loans | 227,446 | 219,718 |
Recorded Investment 90 days or Greater Past Due and Accruing | 485 | |
Residential real estate - Owner occupied | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 2,974 | 3,423 |
Residential real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 735 | 1,191 |
Residential real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 419 | |
Residential real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,820 | 2,232 |
Residential real estate - Owner occupied | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 224,472 | 216,295 |
Multifamily | ||
Aged analysis of past due loans | ||
Total Loans | 372,020 | 323,691 |
Multifamily | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 6,197 | 6,086 |
Multifamily | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 840 | 1,950 |
Multifamily | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 713 | 267 |
Multifamily | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 127 | 361 |
Multifamily | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,322 | |
Multifamily | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 371,180 | 321,741 |
HELOC | ||
Aged analysis of past due loans | ||
Total Loans | 102,055 | 109,202 |
Recorded Investment 90 days or Greater Past Due and Accruing | 90 | |
HELOC | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 111 | |
HELOC | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 993 | 773 |
HELOC | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 646 | 291 |
HELOC | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 88 | 90 |
HELOC | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 259 | 392 |
HELOC | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 101,062 | 108,429 |
Other | ||
Aged analysis of past due loans | ||
Total Loans | 25,838 | 18,247 |
Other | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 19 | |
Other | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 19 | |
Other | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | $ 25,838 | $ 18,228 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non accrual including PCI Loans | $ 62,116,000 | $ 62,116,000 | $ 31,602,000 |
Nonaccrual with no ACL | 32,382,000 | 32,382,000 | 18,404,000 |
Interest on nonaccrual loans | 189,000 | 304,000 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 2,167,000 | 2,167,000 | 7,189,000 |
Nonaccrual with no ACL | 2,167,000 | 2,167,000 | 6,598,000 |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 377,000 | 377,000 | 1,876,000 |
Nonaccrual with no ACL | 38,000 | 38,000 | |
Commercial real estate - Investor | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 26,724,000 | 26,724,000 | 4,346,000 |
Nonaccrual with no ACL | 11,786,000 | 11,786,000 | 4,244,000 |
Commercial real estate - Owner occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 18,290,000 | 18,290,000 | 8,050,000 |
Nonaccrual with no ACL | 3,833,000 | 3,833,000 | 3,813,000 |
Real estate - construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 7,206,000 | 7,206,000 | 251,000 |
Nonaccrual with no ACL | 7,206,000 | 7,206,000 | |
Residential real estate - Investor | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 1,362,000 | 1,362,000 | 1,528,000 |
Nonaccrual with no ACL | 1,362,000 | 1,362,000 | 675,000 |
Residential real estate - Owner occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 3,627,000 | 3,627,000 | 3,713,000 |
Nonaccrual with no ACL | 3,627,000 | 3,627,000 | 1,572,000 |
Multifamily | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 1,141,000 | 1,141,000 | 2,538,000 |
Nonaccrual with no ACL | 1,141,000 | 1,141,000 | 1,322,000 |
HELOC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 1,222,000 | 1,222,000 | 2,109,000 |
Nonaccrual with no ACL | $ 1,222,000 | $ 1,222,000 | 180,000 |
Other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | $ 2,000 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
2022 | $ 5,016,000 | ||||
2021 | 292,000 | ||||
2020 | 3,028,000 | ||||
2019 | 12,000 | ||||
Prior | 343,000 | ||||
Total | $ 6,936,000 | $ 484,000 | 8,691,000 | $ 1,384,000 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 795,374,000 | 795,374,000 | $ 1,207,348,000 | ||
2022 / 2021 | 1,071,693,000 | 1,071,693,000 | 886,935,000 | ||
2021 / 2020 | 741,422,000 | 741,422,000 | 476,753,000 | ||
2020 / 2019 | 381,393,000 | 381,393,000 | 257,206,000 | ||
2019 / 2018 | 214,219,000 | 214,219,000 | 167,647,000 | ||
Prior | 309,154,000 | 309,154,000 | 245,580,000 | ||
Revolving Loans | 514,909,000 | 514,909,000 | 628,140,000 | ||
Revolving Loans Converted To Term Loans | 1,379,000 | 1,379,000 | |||
Total Loans | 4,029,543,000 | 4,029,543,000 | 3,869,609,000 | ||
Minimum | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Loan commitment for inclusion in credit quality analysis | 50,000 | ||||
Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 782,308,000 | 782,308,000 | 1,165,744,000 | ||
2022 / 2021 | 1,010,284,000 | 1,010,284,000 | 837,389,000 | ||
2021 / 2020 | 684,901,000 | 684,901,000 | 401,848,000 | ||
2020 / 2019 | 332,814,000 | 332,814,000 | 183,707,000 | ||
2019 / 2018 | 173,173,000 | 173,173,000 | 165,368,000 | ||
Prior | 304,066,000 | 304,066,000 | 226,741,000 | ||
Revolving Loans | 466,981,000 | 466,981,000 | 600,854,000 | ||
Revolving Loans Converted To Term Loans | 1,379,000 | 1,379,000 | |||
Total Loans | 3,755,906,000 | 3,755,906,000 | 3,581,651,000 | ||
Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 2,063,000 | 2,063,000 | 16,031,000 | ||
2022 / 2021 | 25,570,000 | 25,570,000 | 27,684,000 | ||
2021 / 2020 | 33,263,000 | 33,263,000 | 70,495,000 | ||
2020 / 2019 | 26,806,000 | 26,806,000 | 31,990,000 | ||
2019 / 2018 | 1,929,000 | 1,929,000 | 1,301,000 | ||
Prior | 894,000 | 894,000 | 10,131,000 | ||
Revolving Loans | 29,855,000 | 29,855,000 | 21,397,000 | ||
Total Loans | 120,380,000 | 120,380,000 | 179,029,000 | ||
Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 11,003,000 | 11,003,000 | 25,573,000 | ||
2022 / 2021 | 35,839,000 | 35,839,000 | 21,862,000 | ||
2021 / 2020 | 23,258,000 | 23,258,000 | 4,410,000 | ||
2020 / 2019 | 21,773,000 | 21,773,000 | 41,509,000 | ||
2019 / 2018 | 39,117,000 | 39,117,000 | 978,000 | ||
Prior | 4,194,000 | 4,194,000 | 8,708,000 | ||
Revolving Loans | 18,073,000 | 18,073,000 | 5,889,000 | ||
Total Loans | 153,257,000 | 153,257,000 | 108,929,000 | ||
Commercial | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
2021 | 17,000 | ||||
2020 | 364,000 | ||||
Prior | 46,000 | ||||
Total | 20,000 | 67,000 | 427,000 | 149,000 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 215,492,000 | 215,492,000 | 231,889,000 | ||
2022 / 2021 | 188,261,000 | 188,261,000 | 73,327,000 | ||
2021 / 2020 | 43,089,000 | 43,089,000 | 25,760,000 | ||
2020 / 2019 | 16,094,000 | 16,094,000 | 27,350,000 | ||
2019 / 2018 | 20,416,000 | 20,416,000 | 6,964,000 | ||
Prior | 4,315,000 | 4,315,000 | 2,651,000 | ||
Revolving Loans | 345,831,000 | 345,831,000 | 473,023,000 | ||
Revolving Loans Converted To Term Loans | 1,379,000 | 1,379,000 | |||
Total Loans | 834,877,000 | 834,877,000 | 840,964,000 | ||
Commercial | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 215,492,000 | 215,492,000 | 225,056,000 | ||
2022 / 2021 | 187,682,000 | 187,682,000 | 70,608,000 | ||
2021 / 2020 | 41,464,000 | 41,464,000 | 21,597,000 | ||
2020 / 2019 | 13,359,000 | 13,359,000 | 12,742,000 | ||
2019 / 2018 | 10,676,000 | 10,676,000 | 6,957,000 | ||
Prior | 4,315,000 | 4,315,000 | 2,651,000 | ||
Revolving Loans | 311,562,000 | 311,562,000 | 447,821,000 | ||
Revolving Loans Converted To Term Loans | 1,379,000 | 1,379,000 | |||
Total Loans | 785,929,000 | 785,929,000 | 787,432,000 | ||
Commercial | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 1,875,000 | ||||
2022 / 2021 | 500,000 | 500,000 | 272,000 | ||
2021 / 2020 | 244,000 | 244,000 | 1,182,000 | ||
2020 / 2019 | 2,432,000 | ||||
2019 / 2018 | 51,000 | 51,000 | |||
Revolving Loans | 29,855,000 | 29,855,000 | 21,286,000 | ||
Total Loans | 30,650,000 | 30,650,000 | 27,047,000 | ||
Commercial | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 4,958,000 | ||||
2022 / 2021 | 79,000 | 79,000 | 2,447,000 | ||
2021 / 2020 | 1,381,000 | 1,381,000 | 2,981,000 | ||
2020 / 2019 | 2,735,000 | 2,735,000 | 12,176,000 | ||
2019 / 2018 | 9,689,000 | 9,689,000 | 7,000 | ||
Revolving Loans | 4,414,000 | 4,414,000 | 3,916,000 | ||
Total Loans | 18,298,000 | 18,298,000 | 26,485,000 | ||
Real estate - residential loans | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Mortgage loans in process of foreclosure | 176,000 | 176,000 | 600,000 | ||
Leases | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
2022 | 870,000 | ||||
2019 | 12,000 | ||||
Total | 178,000 | 882,000 | 178,000 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 151,691,000 | 151,691,000 | 162,985,000 | ||
2022 / 2021 | 125,431,000 | 125,431,000 | 64,203,000 | ||
2021 / 2020 | 47,808,000 | 47,808,000 | 26,995,000 | ||
2020 / 2019 | 17,522,000 | 17,522,000 | 17,923,000 | ||
2019 / 2018 | 9,780,000 | 9,780,000 | 4,449,000 | ||
Prior | 2,595,000 | 2,595,000 | 830,000 | ||
Total Loans | 354,827,000 | 354,827,000 | 277,385,000 | ||
Leases | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 151,691,000 | 151,691,000 | 161,379,000 | ||
2022 / 2021 | 125,092,000 | 125,092,000 | 64,203,000 | ||
2021 / 2020 | 47,808,000 | 47,808,000 | 26,995,000 | ||
2020 / 2019 | 17,522,000 | 17,522,000 | 17,653,000 | ||
2019 / 2018 | 9,545,000 | 9,545,000 | 4,449,000 | ||
Prior | 2,595,000 | 2,595,000 | 830,000 | ||
Total Loans | 354,253,000 | 354,253,000 | 275,509,000 | ||
Leases | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 1,606,000 | ||||
2022 / 2021 | 339,000 | 339,000 | |||
2020 / 2019 | 270,000 | ||||
2019 / 2018 | 235,000 | 235,000 | |||
Total Loans | 574,000 | 574,000 | 1,876,000 | ||
Commercial real estate - Investor | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
2022 | 4,121,000 | ||||
2021 | 71,000 | ||||
2020 | 2,653,000 | ||||
Total | 6,774,000 | 124,000 | 6,845,000 | 604,000 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 187,743,000 | 187,743,000 | 433,775,000 | ||
2022 / 2021 | 366,250,000 | 366,250,000 | 232,121,000 | ||
2021 / 2020 | 217,189,000 | 217,189,000 | 123,981,000 | ||
2020 / 2019 | 119,081,000 | 119,081,000 | 84,814,000 | ||
2019 / 2018 | 69,048,000 | 69,048,000 | 48,005,000 | ||
Prior | 67,264,000 | 67,264,000 | 57,826,000 | ||
Revolving Loans | 20,547,000 | 20,547,000 | 7,113,000 | ||
Total Loans | 1,047,122,000 | 1,047,122,000 | 987,635,000 | ||
Commercial real estate - Investor | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 176,779,000 | 176,779,000 | 416,094,000 | ||
2022 / 2021 | 341,597,000 | 341,597,000 | 228,686,000 | ||
2021 / 2020 | 203,972,000 | 203,972,000 | 118,491,000 | ||
2020 / 2019 | 111,333,000 | 111,333,000 | 63,845,000 | ||
2019 / 2018 | 59,770,000 | 59,770,000 | 46,935,000 | ||
Prior | 67,264,000 | 67,264,000 | 46,406,000 | ||
Revolving Loans | 8,148,000 | 8,148,000 | 7,113,000 | ||
Total Loans | 968,863,000 | 968,863,000 | 927,570,000 | ||
Commercial real estate - Investor | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 5,349,000 | ||||
2022 / 2021 | 12,866,000 | 12,866,000 | 1,417,000 | ||
2021 / 2020 | 11,267,000 | 11,267,000 | 5,490,000 | ||
2020 / 2019 | 10,206,000 | ||||
2019 / 2018 | 1,070,000 | ||||
Prior | 9,123,000 | ||||
Total Loans | 24,133,000 | 24,133,000 | 32,655,000 | ||
Commercial real estate - Investor | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 10,964,000 | 10,964,000 | 12,332,000 | ||
2022 / 2021 | 11,787,000 | 11,787,000 | 2,018,000 | ||
2021 / 2020 | 1,950,000 | 1,950,000 | |||
2020 / 2019 | 7,748,000 | 7,748,000 | 10,763,000 | ||
2019 / 2018 | 9,278,000 | 9,278,000 | |||
Prior | 2,297,000 | ||||
Revolving Loans | 12,399,000 | 12,399,000 | |||
Total Loans | 54,126,000 | 54,126,000 | 27,410,000 | ||
Commercial real estate - Owner occupied | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
2022 | 22,000 | ||||
2021 | 178,000 | ||||
2020 | 4,000 | ||||
Prior | 32,000 | ||||
Total | 35,000 | 12,000 | 236,000 | 133,000 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 107,721,000 | 107,721,000 | 180,679,000 | ||
2022 / 2021 | 165,939,000 | 165,939,000 | 263,102,000 | ||
2021 / 2020 | 219,649,000 | 219,649,000 | 155,044,000 | ||
2020 / 2019 | 106,372,000 | 106,372,000 | 81,981,000 | ||
2019 / 2018 | 73,942,000 | 73,942,000 | 49,598,000 | ||
Prior | 102,169,000 | 102,169,000 | 90,730,000 | ||
Revolving Loans | 33,258,000 | 33,258,000 | 33,745,000 | ||
Total Loans | 809,050,000 | 809,050,000 | 854,879,000 | ||
Commercial real estate - Owner occupied | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 105,963,000 | 105,963,000 | 169,703,000 | ||
2022 / 2021 | 139,223,000 | 139,223,000 | 223,731,000 | ||
2021 / 2020 | 181,543,000 | 181,543,000 | 105,669,000 | ||
2020 / 2019 | 78,750,000 | 78,750,000 | 47,351,000 | ||
2019 / 2018 | 54,909,000 | 54,909,000 | 49,367,000 | ||
Prior | 101,396,000 | 101,396,000 | 86,660,000 | ||
Revolving Loans | 33,258,000 | 33,258,000 | 33,745,000 | ||
Total Loans | 695,042,000 | 695,042,000 | 716,226,000 | ||
Commercial real estate - Owner occupied | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 1,758,000 | 1,758,000 | 8,430,000 | ||
2022 / 2021 | 11,722,000 | 11,722,000 | 22,242,000 | ||
2021 / 2020 | 18,180,000 | 18,180,000 | 48,184,000 | ||
2020 / 2019 | 26,480,000 | 26,480,000 | 17,668,000 | ||
2019 / 2018 | 222,000 | 222,000 | 231,000 | ||
Prior | 354,000 | 354,000 | 1,008,000 | ||
Total Loans | 58,716,000 | 58,716,000 | 97,763,000 | ||
Commercial real estate - Owner occupied | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 2,546,000 | ||||
2022 / 2021 | 14,994,000 | 14,994,000 | 17,129,000 | ||
2021 / 2020 | 19,926,000 | 19,926,000 | 1,191,000 | ||
2020 / 2019 | 1,142,000 | 1,142,000 | 16,962,000 | ||
2019 / 2018 | 18,811,000 | 18,811,000 | |||
Prior | 419,000 | 419,000 | 3,062,000 | ||
Total Loans | 55,292,000 | 55,292,000 | 40,890,000 | ||
Construction | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 26,834,000 | 26,834,000 | 54,275,000 | ||
2022 / 2021 | 83,216,000 | 83,216,000 | 65,758,000 | ||
2021 / 2020 | 56,217,000 | 56,217,000 | 54,839,000 | ||
2020 / 2019 | 29,588,000 | 29,588,000 | 2,506,000 | ||
2019 / 2018 | 1,837,000 | 1,837,000 | 226,000 | ||
Prior | 1,155,000 | 1,155,000 | 1,408,000 | ||
Revolving Loans | 3,699,000 | 3,699,000 | 1,523,000 | ||
Total Loans | 202,546,000 | 202,546,000 | 180,535,000 | ||
Construction | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 26,529,000 | 26,529,000 | 53,058,000 | ||
2022 / 2021 | 75,698,000 | 75,698,000 | 65,758,000 | ||
2021 / 2020 | 56,217,000 | 56,217,000 | 39,542,000 | ||
2020 / 2019 | 19,531,000 | 19,531,000 | 2,390,000 | ||
2019 / 2018 | 1,837,000 | 1,837,000 | 226,000 | ||
Prior | 1,155,000 | 1,155,000 | 1,408,000 | ||
Revolving Loans | 3,699,000 | 3,699,000 | 1,523,000 | ||
Total Loans | 184,666,000 | 184,666,000 | 163,905,000 | ||
Construction | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 305,000 | 305,000 | |||
2022 / 2021 | 312,000 | 312,000 | |||
2021 / 2020 | 15,297,000 | ||||
Total Loans | 617,000 | 617,000 | 15,297,000 | ||
Construction | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 1,217,000 | ||||
2022 / 2021 | 7,206,000 | 7,206,000 | |||
2020 / 2019 | 10,057,000 | 10,057,000 | 116,000 | ||
Total Loans | 17,263,000 | 17,263,000 | 1,333,000 | ||
Residential real estate - Investor | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 3,310,000 | 3,310,000 | 15,358,000 | ||
2022 / 2021 | 14,958,000 | 14,958,000 | 9,980,000 | ||
2021 / 2020 | 9,021,000 | 9,021,000 | 6,945,000 | ||
2020 / 2019 | 6,317,000 | 6,317,000 | 9,084,000 | ||
2019 / 2018 | 7,534,000 | 7,534,000 | 5,039,000 | ||
Prior | 11,205,000 | 11,205,000 | 9,956,000 | ||
Revolving Loans | 1,417,000 | 1,417,000 | 991,000 | ||
Total Loans | 53,762,000 | 53,762,000 | 57,353,000 | ||
Residential real estate - Investor | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 3,310,000 | 3,310,000 | 14,737,000 | ||
2022 / 2021 | 14,560,000 | 14,560,000 | 9,910,000 | ||
2021 / 2020 | 8,954,000 | 8,954,000 | 6,945,000 | ||
2020 / 2019 | 6,317,000 | 6,317,000 | 8,585,000 | ||
2019 / 2018 | 7,116,000 | 7,116,000 | 4,853,000 | ||
Prior | 10,519,000 | 10,519,000 | 9,548,000 | ||
Revolving Loans | 1,417,000 | 1,417,000 | 991,000 | ||
Total Loans | 52,193,000 | 52,193,000 | 55,569,000 | ||
Residential real estate - Investor | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2022 / 2021 | 70,000 | ||||
2021 / 2020 | 67,000 | 67,000 | |||
Total Loans | 67,000 | 67,000 | 70,000 | ||
Residential real estate - Investor | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 621,000 | ||||
2022 / 2021 | 398,000 | 398,000 | |||
2020 / 2019 | 499,000 | ||||
2019 / 2018 | 418,000 | 418,000 | 186,000 | ||
Prior | 686,000 | 686,000 | 408,000 | ||
Total Loans | 1,502,000 | 1,502,000 | 1,714,000 | ||
Residential real estate - Owner occupied | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 26,371,000 | 26,371,000 | 42,016,000 | ||
2022 / 2021 | 42,037,000 | 42,037,000 | 45,151,000 | ||
2021 / 2020 | 41,439,000 | 41,439,000 | 28,655,000 | ||
2020 / 2019 | 26,634,000 | 26,634,000 | 16,869,000 | ||
2019 / 2018 | 15,833,000 | 15,833,000 | 12,283,000 | ||
Prior | 74,366,000 | 74,366,000 | 73,106,000 | ||
Revolving Loans | 766,000 | 766,000 | 1,638,000 | ||
Total Loans | 227,446,000 | 227,446,000 | 219,718,000 | ||
Residential real estate - Owner occupied | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 26,371,000 | 26,371,000 | 41,885,000 | ||
2022 / 2021 | 41,915,000 | 41,915,000 | 44,884,000 | ||
2021 / 2020 | 41,439,000 | 41,439,000 | 28,418,000 | ||
2020 / 2019 | 26,544,000 | 26,544,000 | 16,146,000 | ||
2019 / 2018 | 15,147,000 | 15,147,000 | 12,152,000 | ||
Prior | 71,637,000 | 71,637,000 | 70,741,000 | ||
Revolving Loans | 766,000 | 766,000 | 1,638,000 | ||
Total Loans | 223,819,000 | 223,819,000 | 215,864,000 | ||
Residential real estate - Owner occupied | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 131,000 | ||||
2022 / 2021 | 122,000 | 122,000 | 267,000 | ||
2021 / 2020 | 237,000 | ||||
2020 / 2019 | 90,000 | 90,000 | 723,000 | ||
2019 / 2018 | 686,000 | 686,000 | 131,000 | ||
Prior | 2,729,000 | 2,729,000 | 2,365,000 | ||
Total Loans | 3,627,000 | 3,627,000 | 3,854,000 | ||
Multifamily | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 69,947,000 | 69,947,000 | 79,354,000 | ||
2022 / 2021 | 80,746,000 | 80,746,000 | 129,940,000 | ||
2021 / 2020 | 105,383,000 | 105,383,000 | 52,604,000 | ||
2020 / 2019 | 58,118,000 | 58,118,000 | 14,809,000 | ||
2019 / 2018 | 14,047,000 | 14,047,000 | 40,290,000 | ||
Prior | 43,397,000 | 43,397,000 | 6,365,000 | ||
Revolving Loans | 382,000 | 382,000 | 329,000 | ||
Total Loans | 372,020,000 | 372,020,000 | 323,691,000 | ||
Multifamily | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 69,947,000 | 69,947,000 | 76,877,000 | ||
2022 / 2021 | 79,689,000 | 79,689,000 | 126,257,000 | ||
2021 / 2020 | 101,878,000 | 101,878,000 | 52,262,000 | ||
2020 / 2019 | 57,792,000 | 57,792,000 | 13,125,000 | ||
2019 / 2018 | 12,391,000 | 12,391,000 | 39,703,000 | ||
Prior | 42,603,000 | 42,603,000 | 6,098,000 | ||
Revolving Loans | 382,000 | 382,000 | 329,000 | ||
Total Loans | 364,682,000 | 364,682,000 | 314,651,000 | ||
Multifamily | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 377,000 | ||||
2022 / 2021 | 170,000 | 170,000 | 3,683,000 | ||
2021 / 2020 | 3,505,000 | 3,505,000 | 342,000 | ||
2020 / 2019 | 326,000 | 326,000 | 1,684,000 | ||
2019 / 2018 | 1,656,000 | 1,656,000 | |||
Prior | 540,000 | 540,000 | |||
Total Loans | 6,197,000 | 6,197,000 | 6,086,000 | ||
Multifamily | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 2,100,000 | ||||
2022 / 2021 | 887,000 | 887,000 | |||
2019 / 2018 | 587,000 | ||||
Prior | 254,000 | 254,000 | 267,000 | ||
Total Loans | 1,141,000 | 1,141,000 | 2,954,000 | ||
HELOC | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 1,804,000 | 1,804,000 | 2,822,000 | ||
2022 / 2021 | 2,787,000 | 2,787,000 | 518,000 | ||
2021 / 2020 | 212,000 | 212,000 | 1,497,000 | ||
2020 / 2019 | 1,444,000 | 1,444,000 | 1,703,000 | ||
2019 / 2018 | 1,631,000 | 1,631,000 | 724,000 | ||
Prior | 2,600,000 | 2,600,000 | 2,597,000 | ||
Revolving Loans | 91,577,000 | 91,577,000 | 99,341,000 | ||
Total Loans | 102,055,000 | 102,055,000 | 109,202,000 | ||
HELOC | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 1,765,000 | 1,765,000 | 2,760,000 | ||
2022 / 2021 | 2,760,000 | 2,760,000 | 517,000 | ||
2021 / 2020 | 211,000 | 211,000 | 1,497,000 | ||
2020 / 2019 | 1,443,000 | 1,443,000 | 1,703,000 | ||
2019 / 2018 | 1,631,000 | 1,631,000 | 657,000 | ||
Prior | 2,494,000 | 2,494,000 | 2,288,000 | ||
Revolving Loans | 90,317,000 | 90,317,000 | 97,258,000 | ||
Total Loans | 100,621,000 | 100,621,000 | 106,680,000 | ||
HELOC | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans | 111,000 | ||||
Total Loans | 111,000 | ||||
HELOC | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 39,000 | 39,000 | 62,000 | ||
2022 / 2021 | 27,000 | 27,000 | 1,000 | ||
2021 / 2020 | 1,000 | 1,000 | |||
2020 / 2019 | 1,000 | 1,000 | |||
2019 / 2018 | 67,000 | ||||
Prior | 106,000 | 106,000 | 309,000 | ||
Revolving Loans | 1,260,000 | 1,260,000 | 1,972,000 | ||
Total Loans | 1,434,000 | 1,434,000 | 2,411,000 | ||
Other | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
2022 | 3,000 | ||||
2021 | 26,000 | ||||
2020 | 7,000 | ||||
Prior | 265,000 | ||||
Total | 107,000 | $ 103,000 | 301,000 | $ 320,000 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 4,461,000 | 4,461,000 | 4,195,000 | ||
2022 / 2021 | 2,068,000 | 2,068,000 | 2,835,000 | ||
2021 / 2020 | 1,415,000 | 1,415,000 | 433,000 | ||
2020 / 2019 | 223,000 | 223,000 | 167,000 | ||
2019 / 2018 | 151,000 | 151,000 | 69,000 | ||
Prior | 88,000 | 88,000 | 111,000 | ||
Revolving Loans | 17,432,000 | 17,432,000 | 10,437,000 | ||
Total Loans | 25,838,000 | 25,838,000 | 18,247,000 | ||
Other | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 / 2022 | 4,461,000 | 4,461,000 | 4,195,000 | ||
2022 / 2021 | 2,068,000 | 2,068,000 | 2,835,000 | ||
2021 / 2020 | 1,415,000 | 1,415,000 | 432,000 | ||
2020 / 2019 | 223,000 | 223,000 | 167,000 | ||
2019 / 2018 | 151,000 | 151,000 | 69,000 | ||
Prior | 88,000 | 88,000 | 111,000 | ||
Revolving Loans | 17,432,000 | 17,432,000 | 10,436,000 | ||
Total Loans | $ 25,838,000 | $ 25,838,000 | 18,245,000 | ||
Other | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2021 / 2020 | 1,000 | ||||
Revolving Loans | 1,000 | ||||
Total Loans | $ 2,000 |
Charge-offs Activity by Loan Ty
Charge-offs Activity by Loan Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loans by risk rating | ||||
2022 | $ 5,016 | |||
2021 | 292 | |||
2020 | 3,028 | |||
2019 | 12 | |||
Prior | 343 | |||
Total | $ 6,936 | $ 484 | 8,691 | $ 1,384 |
Commercial | ||||
Loans by risk rating | ||||
2021 | 17 | |||
2020 | 364 | |||
Prior | 46 | |||
Total | 20 | 67 | 427 | 149 |
Leases | ||||
Loans by risk rating | ||||
2022 | 870 | |||
2019 | 12 | |||
Total | 178 | 882 | 178 | |
Commercial real estate - Investor | ||||
Loans by risk rating | ||||
2022 | 4,121 | |||
2021 | 71 | |||
2020 | 2,653 | |||
Total | 6,774 | 124 | 6,845 | 604 |
Commercial real estate - Owner occupied | ||||
Loans by risk rating | ||||
2022 | 22 | |||
2021 | 178 | |||
2020 | 4 | |||
Prior | 32 | |||
Total | 35 | 12 | 236 | 133 |
Other | ||||
Loans by risk rating | ||||
2022 | 3 | |||
2021 | 26 | |||
2020 | 7 | |||
Prior | 265 | |||
Total | $ 107 | $ 103 | $ 301 | $ 320 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans - TDR (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 loan | Sep. 30, 2023 USD ($) item loan | Sep. 30, 2022 USD ($) loan | |
Troubled debt restructurings - modified during the period | |||
Number of TDR loan modifications | loan | 0 | 15 | 2 |
Total Loans modified | $ 43,003,000 | ||
TDR's defaulted | |||
Pre-modification outstanding recorded investment during the period | $ 39,000 | ||
Other information | |||
Number of payment modification | item | 2 | ||
HELOC | Others | |||
TDR's defaulted | |||
Pre-modification outstanding recorded investment during the period | $ 0 | ||
Commercial | |||
Troubled debt restructurings - modified during the period | |||
Total Loans modified | $ 2,692,000 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses on Loans - Loan Modifications (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable | |
Total Loans modified | $ 43,003 |
Total Loan Segment Modified to Total Loan Segment | 1.10% |
Weighted-Average Term Extension (In Months) | 11 months 5 days |
Weighted-Average Interest Rate Change | 5% |
Weighted-Average Delay of Payment (In Months) | 7 months 5 days |
90 Days or Greater Past Due | |
Financing Receivable | |
Total Loans modified | $ 979 |
Total Past Due | |
Financing Receivable | |
Total Loans modified | 979 |
Current | |
Financing Receivable | |
Total Loans modified | 42,024 |
Term Extension | |
Financing Receivable | |
Total Loans modified | 31,416 |
Combination - Term Extension and Payment Delay | |
Financing Receivable | |
Total Loans modified | 10,608 |
Combination - Term Extension and Interest Rate Reduction | |
Financing Receivable | |
Total Loans modified | 979 |
Commercial | |
Financing Receivable | |
Total Loans modified | $ 2,692 |
Total Loan Segment Modified to Total Loan Segment | 0.30% |
Weighted-Average Term Extension (In Months) | 6 months 22 days |
Weighted-Average Interest Rate Change | 5% |
Commercial | 90 Days or Greater Past Due | |
Financing Receivable | |
Total Loans modified | $ 979 |
Commercial | Total Past Due | |
Financing Receivable | |
Total Loans modified | 979 |
Commercial | Current | |
Financing Receivable | |
Total Loans modified | 1,713 |
Commercial | Term Extension | |
Financing Receivable | |
Total Loans modified | 1,713 |
Commercial | Combination - Term Extension and Interest Rate Reduction | |
Financing Receivable | |
Total Loans modified | 979 |
Commercial real estate - Investor | |
Financing Receivable | |
Total Loans modified | $ 23,363 |
Total Loan Segment Modified to Total Loan Segment | 2.20% |
Weighted-Average Term Extension (In Months) | 9 months 24 days |
Weighted-Average Delay of Payment (In Months) | 7 months 5 days |
Commercial real estate - Investor | Current | |
Financing Receivable | |
Total Loans modified | $ 23,363 |
Commercial real estate - Investor | Term Extension | |
Financing Receivable | |
Total Loans modified | 12,755 |
Commercial real estate - Investor | Combination - Term Extension and Payment Delay | |
Financing Receivable | |
Total Loans modified | 10,608 |
Commercial real estate - Owner occupied | |
Financing Receivable | |
Total Loans modified | $ 16,218 |
Total Loan Segment Modified to Total Loan Segment | 2% |
Weighted-Average Term Extension (In Months) | 14 months |
Commercial real estate - Owner occupied | Current | |
Financing Receivable | |
Total Loans modified | $ 16,218 |
Commercial real estate - Owner occupied | Term Extension | |
Financing Receivable | |
Total Loans modified | 16,218 |
Residential real estate - Owner occupied | |
Financing Receivable | |
Total Loans modified | $ 437 |
Total Loan Segment Modified to Total Loan Segment | 0.20% |
Weighted-Average Term Extension (In Months) | 2 months |
Residential real estate - Owner occupied | Current | |
Financing Receivable | |
Total Loans modified | $ 437 |
Residential real estate - Owner occupied | Term Extension | |
Financing Receivable | |
Total Loans modified | 437 |
Multifamily | |
Financing Receivable | |
Total Loans modified | $ 254 |
Total Loan Segment Modified to Total Loan Segment | 0.10% |
Weighted-Average Term Extension (In Months) | 16 months |
Multifamily | Current | |
Financing Receivable | |
Total Loans modified | $ 254 |
Multifamily | Term Extension | |
Financing Receivable | |
Total Loans modified | 254 |
HELOC | |
Financing Receivable | |
Total Loans modified | $ 39 |
Total Loan Segment Modified to Total Loan Segment | 0% |
Weighted-Average Term Extension (In Months) | 24 months |
HELOC | Current | |
Financing Receivable | |
Total Loans modified | $ 39 |
HELOC | Term Extension | |
Financing Receivable | |
Total Loans modified | $ 39 |
Deposits - Classifications of D
Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits | ||
Noninterest bearing demand | $ 1,862,659 | $ 2,051,702 |
Savings | 1,003,498 | 1,145,592 |
NOW accounts | 567,997 | 609,338 |
Money market accounts | 702,176 | 862,170 |
Certificates of deposit of less than $100,000 | 248,272 | 244,017 |
Certificates of deposit of $100,000 through $250,000 | 162,901 | 157,438 |
Certificates of deposit of more than $250,000 | 66,817 | 40,466 |
Total deposits | $ 4,614,320 | $ 5,110,723 |
Borrowings - Summary (Details)
Borrowings - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Borrowings | ||
Total borrowings | $ 546,028 | $ 260,811 |
Securities sold under repurchase agreements | ||
Borrowings | ||
Total borrowings | 25,894 | 32,156 |
Other short-term borrowings | ||
Borrowings | ||
Total borrowings | 435,000 | 90,000 |
Junior subordinated debentures | ||
Borrowings | ||
Total borrowings | 25,773 | 25,773 |
Subordinated debentures | ||
Borrowings | ||
Total borrowings | $ 59,361 | 59,297 |
Senior notes | ||
Borrowings | ||
Total borrowings | 44,585 | |
Notes payable and other borrowings | ||
Borrowings | ||
Total borrowings | $ 9,000 |
Borrowings - Additional informa
Borrowings - Additional information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Feb. 24, 2023 USD ($) | Feb. 24, 2020 USD ($) | Dec. 31, 2016 | Sep. 30, 2023 USD ($) item | Jun. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Borrowings | |||||||||
Securities available-for-sale, at fair value | $ 1,229,618 | $ 1,229,618 | $ 1,539,359 | ||||||
Number of customers having secured balances exceeding specified percentage of stockholders equity | item | 0 | 0 | |||||||
Threshold percentage of stockholders' equity | 10% | ||||||||
Borrowings at FHLBC as percentage of total assets | 35% | 35% | |||||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60% | 60% | |||||||
FHLBC stock | $ 20,900 | $ 20,900 | 5,600 | ||||||
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock | 35,830 | 35,830 | 20,530 | ||||||
Proceeds from term note | $ 30,000 | ||||||||
Repayment of term note | 9,000 | $ 3,000 | |||||||
Senior notes | 44,585 | ||||||||
Basis points added to reference rate (as a percent) | 175% | ||||||||
Total borrowings | 546,028 | 546,028 | 260,811 | ||||||
Asset Pledged as Collateral with Right | Securities sold under repurchase agreements | |||||||||
Borrowings | |||||||||
Securities available-for-sale, at fair value | 43,800 | 43,800 | 71,400 | ||||||
Three Months Secured Overnight Financing Rate | |||||||||
Borrowings | |||||||||
Basis points added to reference rate (as a percent) | 273% | ||||||||
Securities sold under repurchase agreements | |||||||||
Borrowings | |||||||||
Total borrowings | 25,894 | 25,894 | 32,156 | ||||||
Securities sold under repurchase agreements | Asset Pledged as Collateral with Right | Securities sold under repurchase agreements | |||||||||
Borrowings | |||||||||
Investment securities pledged with financial institutions, dollars | $ 25,900 | $ 25,900 | 32,200 | ||||||
Federal Home Loan Bank Advances | |||||||||
Borrowings | |||||||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60% | 60% | |||||||
FHLBC advance amount | $ 435,000 | $ 435,000 | 90,000 | ||||||
FHLBC stock | 20,900 | 20,900 | |||||||
Principal balance of loans collateralized | 1,470,000 | 1,470,000 | |||||||
Combined collateral value | 1,020,000 | 1,020,000 | |||||||
Amount available for additional borrowings | 581,700 | 581,700 | |||||||
Subordinated debentures | |||||||||
Borrowings | |||||||||
Total borrowings | 59,361 | 59,361 | 59,297 | ||||||
Notes Payable to Banks [Member] | |||||||||
Borrowings | |||||||||
Total borrowings | 9,000 | ||||||||
Junior subordinated debentures | |||||||||
Borrowings | |||||||||
Total borrowings | $ 25,773 | $ 25,773 | $ 25,773 | ||||||
Senior Notes [Member] | |||||||||
Borrowings | |||||||||
Interest rate (as a percent) | 5.75% | ||||||||
Debt Instrument, Term | 10 years | ||||||||
Interest rate term | 5 years | ||||||||
Effective interest rate | 9.39% | 9.39% | 8.62% | ||||||
Total borrowings | $ 44,585 | ||||||||
Debt instrument redemption price, percentage | 12.85% | 100% | |||||||
Debt redeemed amount | $ 45,000 | ||||||||
Debt issuance costs | $ 362 | ||||||||
Senior Notes [Member] | Debt Instrument Variable Rate Base LIBOR [Member] | |||||||||
Borrowings | |||||||||
Basis points added to reference rate (as a percent) | 3.85% | ||||||||
Term Debt | |||||||||
Borrowings | |||||||||
Proceeds from term note | $ 20,000 | ||||||||
Repayment of term note | $ 9,000 | ||||||||
Debt term | 3 years | ||||||||
Subordinated Notes Due 2031 | |||||||||
Borrowings | |||||||||
Interest rate (as a percent) | 3.50% | ||||||||
Outstanding, net of deferred issuance costs | $ 59,400 | $ 59,400 | $ 59,300 | ||||||
Face amount | $ 60,000 |
Junior Subordinated Debentures
Junior Subordinated Debentures - Issuance (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 9 Months Ended | ||
Apr. 30, 2007 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 15, 2017 | Dec. 31, 2017 | Sep. 30, 2023 | Dec. 31, 2022 | |
Junior subordinated debentures | |||||||
Junior subordinated debentures | $ 25,773 | $ 25,773 | $ 25,773 | ||||
Old Second Capital Trust II [Member] | |||||||
Junior subordinated debentures | |||||||
Proceeds from sale of cumulative trust preferred securities | $ 25,000 | ||||||
Maturity Period | 30 years | ||||||
Cash distribution fixed rate of trust preferred securities (as a percent) | 6.77% | ||||||
Basis points added to cash distribution floating rate base (as a percent) | 1.50% | ||||||
Cash distribution, floating rate base | three-month SOFR | ||||||
Amortization period | 30 years | ||||||
Old Second Capital Trust II [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||
Junior subordinated debentures | |||||||
Cash distribution rate of trust preferred securities (as a percent) | 3.77% | 4.39% | |||||
Junior subordinated debentures | |||||||
Junior subordinated debentures | |||||||
Junior Subordinated Debentures issuance cost | $ 1,000 | $ 1,000 | $ 1,000 | ||||
Junior subordinated debentures | Old Second Capital Trust II [Member] | |||||||
Junior subordinated debentures | |||||||
Junior subordinated debentures | $ 25,800 | $ 25,800 |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
May 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | May 31, 2019 | |
Equity Compensation Plans | ||||
Total compensation cost | $ 2.7 | $ 2.3 | ||
Vesting Percentage , Fully Vest , Performance measure | 50% | |||
Minimum | ||||
Equity Compensation Plans | ||||
Vesting Percentage , Fully Vest , Performance measure | 50% | |||
Maximum | ||||
Equity Compensation Plans | ||||
Vesting Percentage , Pro rata , Performance measure | 50% | |||
2019 Plan | ||||
Equity Compensation Plans | ||||
Number of shares authorized | 1,800,000 | 600,000 | ||
Increase in number of shares authorized | 1,200,000 | |||
Number of shares available for issuance | 975,712 |
Equity Compensation Plans - Res
Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Changes in unvested awards | ||
Nonvested at the beginning of the period (in shares) | 649,210 | |
Granted (in shares) | 240,149 | 268,160 |
Vested (in shares) | (137,534) | |
Forfeited (in shares) | (15,191) | |
Nonvested at the end of the period (in shares) | 736,634 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 12.84 | |
Granted (in dollars per share) | 17.02 | |
Vested (in dollars per share) | 12.53 | |
Forfeited (in dollars per share) | 14.25 | |
Nonvested at the end of the period (in dollars per share) | $ 14.23 | |
Additional information | ||
Total unrecognized compensation cost of restricted awards | $ 5 | |
Expected weighted-average period for recognition of unrecognized compensation | 1 year 10 months 13 days |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic earnings per share: | ||||
Weighted-average common shares outstanding | 44,675,489 | 44,565,626 | 44,653,451 | 44,509,072 |
Net income | $ 24,335 | $ 19,523 | $ 73,504 | $ 43,790 |
Basic earnings per share | $ 0.55 | $ 0.43 | $ 1.65 | $ 0.98 |
Diluted earnings per share: | ||||
Weighted-average common shares outstanding | 44,675,489 | 44,565,626 | 44,653,451 | 44,509,072 |
Diluted average common shares outstanding | 45,428,409 | 45,221,541 | 45,390,218 | 45,207,992 |
Net earnings available to common stockholders | $ 24,335 | $ 19,523 | $ 73,504 | $ 43,790 |
Diluted earnings per share | $ 0.54 | $ 0.43 | $ 1.62 | $ 0.97 |
Restricted Stock and Restricted Stock Units [Member] | ||||
Diluted earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 752,920 | 655,915 | 736,767 | 698,920 |
Regulatory & Capital Matters (D
Regulatory & Capital Matters (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Nov. 06, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 | |
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 0.0962 | 0.0814 | |
Risk-based capital ratio (as a percent) | 0.1384 | 0.1252 | |
Payments of Dividends | $ 2.2 | ||
Deferment of impact on retained earnings | $ 1.9 | ||
Subsidiaries [Member] | |||
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 0.1043 | 0.0932 | |
Risk-based capital ratio (as a percent) | 0.1357 | 0.1275 | |
Tier One leverage ratio, basis point increase (as a percent) | 1.11% | ||
Risk-based capital ratio, basis point increase (as a percent) | 0.82% | ||
Minimum | Subsidiaries [Member] | |||
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 0.08 | ||
Risk-based capital ratio (as a percent) | 0.12 | ||
Tier 1 capital leverage ratio, board-designated threshold | 8% | ||
Total Capital Ratio, board-designated threshold (as a percent) | 12% |
Regulatory & Capital Matters -
Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 530,368 | $ 457,206 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 337,507 | $ 330,966 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.11% | 0.0967% |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 7% | 0.07% |
Total capital to risk weighted assets, Amount | ||
Actual at period end | $ 667,182 | $ 592,039 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 506,171 | $ 496,518 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 0.1384 | 0.1252 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.1050 | 0.1050 |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | $ 555,368 | $ 482,206 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 409,777 | $ 401,838 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.1152 | 0.1020 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.0850 | 0.0850 |
Tier 1 capital to average assets, Amount | ||
Actual | $ 555,368 | $ 482,206 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 230,922 | $ 236,956 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 0.0962 | 0.0814 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.0400 | 0.0400 |
Subsidiaries [Member] | ||
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 601,999 | $ 552,404 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 337,389 | 330,498 |
Minimum Required to Be Well Capitalized | $ 313,290 | $ 306,891 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.1249% | 0.117% |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 7% | 0.07% |
Minimum Required to Be Well Capitalized (as a percent) | 6.50% | 6.50% |
Total capital to risk weighted assets, Amount | ||
Actual at period end | $ 653,813 | $ 602,237 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 505,898 | 495,960 |
Minimum Required to Be Well Capitalized | $ 481,808 | $ 472,343 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 0.1357 | 0.1275 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.1050 | 0.1050 |
Minimum Required to Be Well Capitalized (as a percent) | 0.1000 | 0.1000 |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | $ 601,999 | $ 552,404 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 409,687 | 401,319 |
Minimum Required to Be Well Capitalized | $ 385,588 | $ 377,712 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.1249 | 0.1170 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.0850 | 0.0850 |
Minimum Required to Be Well Capitalized (as a percent) | 0.0800 | 0.0800 |
Tier 1 capital to average assets, Amount | ||
Actual | $ 601,999 | $ 552,404 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 230,872 | 237,083 |
Minimum Required to Be Well Capitalized | $ 288,590 | $ 296,354 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 0.1043 | 0.0932 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.0400 | 0.0400 |
Minimum Required to Be Well Capitalized (as a percent) | 0.0500 | 0.0500 |
Regulatory & Capital Matters _2
Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Dividend Restrictions and Deferrals | |
Number of previous years retained profit considered for dividend payment | 2 years |
Minimum capital requirements, minimum percentage required | 2.50% |
Payments of dividends | $ 70.4 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value transfer assets into level 3 | $ 0 | |
Asset-backed Securities | ||
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value transfer assets out of level 3 | $ 14,885 | |
Collateralized loan obligations. | ||
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value transfer assets out of level 3 | $ 6,764 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Securities available-for-sale | $ 1,229,618 | $ 1,539,359 |
Mortgage servicing rights | 11,461 | 11,189 |
U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 216,777 | 212,129 |
U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 55,821 | 56,048 |
States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 220,100 | 226,128 |
Corporate bonds | ||
Assets: | ||
Securities available-for-sale | 4,961 | 9,622 |
Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 386,679 | 533,768 |
Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | 66,916 | 201,928 |
Collateralized loan obligations. | ||
Assets: | ||
Securities available-for-sale | 173,795 | 174,746 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Securities available-for-sale | 216,777 | 212,129 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Securities available-for-sale | 998,775 | 1,291,219 |
Loans held-for-sale | 2,297 | 491 |
Other assets | 8,980 | 6,391 |
Liabilities: | ||
Other liabilities | 14,293 | 12,264 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Securities available-for-sale | 14,066 | 36,011 |
Mortgage servicing rights | 11,641 | 11,189 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Loans held-for-sale | 2,297 | 491 |
Mortgage servicing rights | 11,461 | 11,189 |
Total financial assets | 1,252,441 | 1,557,631 |
Liabilities: | ||
Total | 14,293 | 12,265 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap agreements, including risk participation agreement | ||
Assets: | ||
Other assets | 9,028 | 6,516 |
Liabilities: | ||
Other liabilities | 14,293 | 12,265 |
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | ||
Assets: | ||
Other assets | 37 | 76 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 216,777 | 212,129 |
Fair Value, Measurements, Recurring [Member] | U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 55,821 | 56,048 |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities, Issued by US Government Agencies | ||
Assets: | ||
Securities available-for-sale | 104,569 | 124,990 |
Fair Value, Measurements, Recurring [Member] | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 220,100 | 226,128 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds | ||
Assets: | ||
Securities available-for-sale | 4,961 | 9,622 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 386,679 | 533,768 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | 66,916 | 201,928 |
Fair Value, Measurements, Recurring [Member] | Collateralized loan obligations. | ||
Assets: | ||
Securities available-for-sale | 173,795 | 174,746 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Total financial assets | 216,777 | 212,129 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 216,777 | 212,129 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Loans held-for-sale | 2,297 | 491 |
Total financial assets | 1,010,137 | 1,298,302 |
Liabilities: | ||
Total | 14,293 | 12,265 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap agreements, including risk participation agreement | ||
Assets: | ||
Other assets | 9,028 | 6,516 |
Liabilities: | ||
Other liabilities | 14,293 | 12,265 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | ||
Assets: | ||
Other assets | 37 | 76 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 55,821 | 56,048 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Issued by US Government Agencies | ||
Assets: | ||
Securities available-for-sale | 104,569 | 124,990 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 206,034 | 211,899 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds | ||
Assets: | ||
Securities available-for-sale | 4,961 | 9,622 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 386,679 | 526,998 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | 66,916 | 186,916 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations. | ||
Assets: | ||
Securities available-for-sale | 173,795 | 174,746 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Mortgage servicing rights | 11,461 | 11,189 |
Total financial assets | 25,527 | 47,200 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | $ 14,066 | 14,229 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 6,770 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | $ 15,012 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Changes in Level 3 | ||
Transfers into Level 3 | $ 0 | |
Asset-backed Securities | ||
Changes in Level 3 | ||
Beginning balance | $ 15,012 | |
Transfers out of Level 3 | (14,885) | |
Total gains or losses | ||
Included in other comprehensive income | 226 | |
Purchases, issuances, sales, and settlements | ||
Settlements | (342) | |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | (11) | |
Collateralized loan obligations. | ||
Changes in Level 3 | ||
Beginning balance | 6,770 | |
Transfers out of Level 3 | (6,764) | |
Total gains or losses | ||
Included in other comprehensive income | (6) | |
States and political subdivisions | ||
Changes in Level 3 | ||
Beginning balance | 14,229 | 15,236 |
Total gains or losses | ||
Included in other comprehensive income | (132) | (1,333) |
Purchases, issuances, sales, and settlements | ||
Purchases | 406 | |
Issuances | 519 | |
Settlements | (338) | (1,015) |
Ending balance | 14,066 | 13,309 |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | (99) | (98) |
Mortgage Servicing Rights [Member] | ||
Changes in Level 3 | ||
Beginning balance | 11,189 | 7,097 |
Purchases, issuances, sales, and settlements | ||
Issuances | 420 | 756 |
Settlements | (380) | (776) |
Ending balance | 11,461 | 11,461 |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | $ 232 | $ 4,384 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | $ 11,461 | $ 11,189 |
Securities available-for-sale, at fair value | 1,229,618 | 1,539,359 |
Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 11,641 | 11,189 |
Securities available-for-sale, at fair value | 14,066 | 36,011 |
Asset-backed Securities | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 66,916 | 201,928 |
States and political subdivisions | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 220,100 | 226,128 |
Collateralized mortgage obligations | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 386,679 | 533,768 |
Fair Value, Measurements, Recurring [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 11,461 | 11,189 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 11,461 | 11,189 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 66,916 | 201,928 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 15,012 | |
Fair Value, Measurements, Recurring [Member] | States and political subdivisions | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 220,100 | 226,128 |
Fair Value, Measurements, Recurring [Member] | States and political subdivisions | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 14,066 | 14,229 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 386,679 | 533,768 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 6,770 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | $ 15,012 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.062 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.065 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.063 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | $ 11,461 | $ 11,189 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.090 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.110 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.090 | 0.090 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | $ 14,066 | $ 14,229 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.090 | |
Debt Securities, Measurement Input | 0.035 | 0.023 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.110 | |
Debt Securities, Measurement Input | 0.059 | 0.058 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.043 | 0.044 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Collateralized mortgage obligations | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | $ 6,770 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Collateralized mortgage obligations | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.070 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Collateralized mortgage obligations | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.070 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Collateralized mortgage obligations | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.070 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0 | 0.036 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.164 | 0.273 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.062 | 0.062 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.003 | 0.003 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.005 | 0.005 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.005 | 0.005 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Assets and liabilities measured at fair value | ||
Valuation allowance | $ 18,700,000 | |
Carrying value of other real estate owned | 407,000 | $ 1,561,000 |
Impaired Loans [Member] | ||
Assets and liabilities measured at fair value | ||
Valuation allowance | 65,300,000 | |
Impaired Loans [Member] | Reported Value Measurement [Member] | ||
Assets and liabilities measured at fair value | ||
Increase (decrease) of specific allocations within the provision for loan losses | 12,200,000 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets and liabilities measured at fair value | ||
Total | 63,729,000 | 49,261,000 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Assets and liabilities measured at fair value | ||
Total | 63,322,000 | 47,700,000 |
Valuation allowance | 18,700,000 | 17,600,000 |
Increase (decrease) of specific allocations within the provision for loan losses | 1,000,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Reported Value Measurement [Member] | ||
Assets and liabilities measured at fair value | ||
Total | 82,000,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Assets and liabilities measured at fair value | ||
Total | 407,000 | 1,561,000 |
Carrying value of other real estate owned | 407,000 | 1,600,000 |
Outstanding balance | 525,000 | 2,500,000 |
OREO Valuation allowance | 118,000 | 856,000 |
OREO participations | 131,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets and liabilities measured at fair value | ||
Total | 63,729,000 | 49,261,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Assets and liabilities measured at fair value | ||
Total | 63,322,000 | 47,700,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Assets and liabilities measured at fair value | ||
Total | $ 407,000 | $ 1,561,000 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and due from banks | $ 55,548 | $ 56,632 |
Interest earning deposits with financial institutions | 53,485 | 58,545 |
Securities available-for-sale | 1,229,618 | 1,539,359 |
FHLBC and FRBC Stock | 35,830 | 20,530 |
Mortgage servicing rights | 11,461 | 11,189 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,862,659 | 2,051,702 |
Other short-term borrowings | 435,000 | 90,000 |
Junior subordinated debentures | 25,773 | 25,773 |
Senior notes | 44,585 | |
Reported Value Measurement | ||
Financial assets: | ||
Cash and due from banks | 55,548 | 56,632 |
Interest earning deposits with financial institutions | 53,485 | 58,545 |
Securities available-for-sale | 1,229,618 | 1,539,359 |
FHLBC and FRBC Stock | 35,830 | 20,530 |
Loans held for sale | 2,297 | 491 |
Net loans | 3,977,814 | 3,820,129 |
Mortgage servicing rights | 11,641 | 11,189 |
Interest rate swap agreements | 8,980 | 6,391 |
Interest rate lock commitments and forward contracts | 37 | 76 |
Interest receivable on securities and loans | 25,921 | 22,661 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,862,659 | 2,051,702 |
Interest bearing deposits | 2,751,661 | 3,059,021 |
Securities sold under repurchase agreements | 25,894 | 32,156 |
Other short-term borrowings | 435,000 | 90,000 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,361 | 59,297 |
Senior notes | 44,585 | |
Note payable and other borrowings | 9,000 | |
Interest rate swap agreements | 14,293 | 12,264 |
Interest payable on deposits and borrowings | 3,066 | 1,657 |
Estimate of Fair Value Measurement | ||
Financial assets: | ||
Cash and due from banks | 55,548 | 56,632 |
Interest earning deposits with financial institutions | 53,485 | 58,545 |
Securities available-for-sale | 1,229,618 | 1,539,359 |
FHLBC and FRBC Stock | 35,830 | 20,530 |
Loans held for sale | 2,297 | 491 |
Net loans | 3,855,774 | 3,681,387 |
Mortgage servicing rights | 11,641 | 11,189 |
Interest rate swap agreements | 8,980 | 6,391 |
Interest rate lock commitments and forward contracts | 37 | 76 |
Interest receivable on securities and loans | 25,921 | 22,661 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,862,659 | 2,051,702 |
Interest bearing deposits | 2,738,632 | 3,042,740 |
Securities sold under repurchase agreements | 25,894 | 32,156 |
Other short-term borrowings | 435,000 | 90,000 |
Junior subordinated debentures | 19,072 | 21,907 |
Subordinated debentures | 46,161 | 52,322 |
Senior notes | 44,248 | |
Note payable and other borrowings | 8,984 | |
Interest rate swap agreements | 14,293 | 12,264 |
Interest payable on deposits and borrowings | 3,066 | 1,657 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 55,548 | 56,632 |
Interest earning deposits with financial institutions | 53,485 | 58,545 |
Securities available-for-sale | 216,777 | 212,129 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,862,659 | 2,051,702 |
Senior notes | 44,248 | |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Securities available-for-sale | 998,775 | 1,291,219 |
FHLBC and FRBC Stock | 35,830 | 20,530 |
Loans held for sale | 2,297 | 491 |
Interest rate swap agreements | 8,980 | 6,391 |
Interest rate lock commitments and forward contracts | 37 | 76 |
Interest receivable on securities and loans | 25,921 | 22,661 |
Financial liabilities: | ||
Interest bearing deposits | 2,738,632 | 3,042,740 |
Securities sold under repurchase agreements | 25,894 | 32,156 |
Other short-term borrowings | 435,000 | 90,000 |
Junior subordinated debentures | 19,072 | 21,907 |
Subordinated debentures | 46,161 | 52,322 |
Note payable and other borrowings | 8,984 | |
Interest rate swap agreements | 14,293 | 12,264 |
Interest payable on deposits and borrowings | 3,066 | 1,657 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Securities available-for-sale | 14,066 | 36,011 |
Net loans | 3,855,774 | 3,681,387 |
Mortgage servicing rights | $ 11,641 | $ 11,189 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Fair Value of Derivatives (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | |
Two financial institutions | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Cash collateral pledged with financial institutions, dollars | $ 9,200,000 | $ 11,200,000 |
Number of financial institutions in which cash collateral pledged | item | 2 | |
Interest Rate Swap [Member] | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Cash collateral pledged with financial institutions, dollars | 8,100,000 | $ 5,300,000 |
Investment securities pledged with financial institutions, dollars | $ 0 | $ 0 |
Number of financial institutions in which cash collateral pledged | item | 1 | 1 |
Designated as Hedging Instrument | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative assets designated as hedging instruments, fair value | $ 4,517,000 | $ 2,737,000 |
Derivative liabilities designated as hedging instruments, fair value | 9,830,000 | 8,610,000 |
Designated as Hedging Instrument | Interest Rate Products | Cash flow hedges of certain variable rate commercial and commercial real estate loan pools | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Notional amount | 300,000,000 | 250,000,000 |
Designated as Hedging Instrument | Interest Rate Products | Cash flow hedge of junior subordinated debentures and was executed to pay fixed and receive variable rate cash flows | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Notional amount | $ 25,800,000 | $ 25,800,000 |
Designated as Hedging Instrument | Interest Rate Products | OSBC Affiliates | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative, number of transactions | item | 5 | 4 |
Notional amount | $ 325,774,000 | $ 275,774,000 |
Derivative assets designated as hedging instruments, fair value | 4,517,000 | |
Derivative liabilities designated as hedging instruments, fair value | 9,830,000 | 8,610,000 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | OSBC Affiliates | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative assets designated as hedging instruments, fair value | 2,737,000 | |
Not Designated as Hedging Instrument | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative assets designated as hedging instruments, fair value | 4,548,000 | |
Derivative liabilities designated as hedging instruments, fair value | 4,463,000 | |
Not Designated as Hedging Instrument | Interest Rate Products | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Notional amount | $ 105,600,000 | $ 110,600,000 |
Not Designated as Hedging Instrument | Interest Rate Products | Commercial Loan Customers | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative, number of transactions | item | 17 | 21 |
Notional amount | $ 105,558,000 | $ 110,647,000 |
Derivative assets designated as hedging instruments, fair value | 4,463,000 | 3,654,000 |
Derivative liabilities designated as hedging instruments, fair value | 4,463,000 | 3,654,000 |
Not Designated as Hedging Instrument | Commitments. | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Notional amount | $ 7,600,000 | $ 5,300,000 |
Not Designated as Hedging Instrument | Interest Rate Lock Commitments and Forward Contracts. | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative, number of transactions | item | 28 | 4 |
Notional amount | $ 7,613,000 | $ 43,699,000 |
Derivative assets designated as hedging instruments, fair value | $ 37,000 | 125,000 |
Derivative liabilities designated as hedging instruments, fair value | $ 1,000 | |
Not Designated as Hedging Instrument | Interest Rate Lock Commitments and Forward Contracts. | Commercial Loan Customers | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative, number of transactions | item | 28 | |
Notional amount | $ 5,298,000 | |
Derivative assets designated as hedging instruments, fair value | 76,000 | |
Not Designated as Hedging Instrument | Other Contracts | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Derivative, number of transactions | item | 4 | |
Notional amount | $ 44,892,000 | |
Derivative assets designated as hedging instruments, fair value | 48,000 | 3,855,000 |
Derivative liabilities designated as hedging instruments, fair value | $ 3,655,000 | |
Interest Income | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Amount to be reclassified as an decrease to interest expense during the next twelve months | 7,000,000 | |
Interest Expense | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Amount to be reclassified as an decrease to interest expense during the next twelve months | $ 708,000 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Effect of Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||
Amount of loss recognized in OCI on derivative | $ 3,800 | $ 4,100 |
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 3,900 | $ 15,000 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Company's contractual commitments due to letters of credit | |||
Total letters of credit | $ 32,869,000 | $ 32,869,000 | $ 36,096,000 |
Allowance for credit loss on unfunded commitments | 2,700,000 | 2,700,000 | |
Allowance for credit loss unfunded commitment, purchase accounting adjustment | 149,000 | 149,000 | |
Decrease In allowance for credit loss on unfunded commitments | 235,000 | ||
Commercial unfunded commitments assumptions for decrease in the allowance for credit losses | 12,000 | ||
Accretion of interest income for decrease in the allowance for credit losses | 223,000 | ||
Fixed [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 526,000 | 526,000 | 6,675,000 |
Variable [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 32,343,000 | 32,343,000 | 29,421,000 |
Commitments to Extend Credit to Borrowers [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 32,802,000 | 32,802,000 | 36,029,000 |
Commitments to Extend Credit to Borrowers [Member] | Fixed [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 526,000 | 526,000 | 6,675,000 |
Commitments to Extend Credit to Borrowers [Member] | Variable [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 32,276,000 | 32,276,000 | 29,354,000 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 16,716,000 | 16,716,000 | 18,879,000 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Fixed [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 173,000 | 173,000 | 3,514,000 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Variable [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 16,543,000 | 16,543,000 | 15,365,000 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 16,086,000 | 16,086,000 | 17,150,000 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Fixed [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 353,000 | 353,000 | 3,161,000 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Variable [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 15,733,000 | 15,733,000 | 13,989,000 |
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 67,000 | 67,000 | 67,000 |
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | Variable [Member] | |||
Company's contractual commitments due to letters of credit | |||
Total letters of credit | 67,000 | 67,000 | 67,000 |
Unused lines of Credit [Member] | |||
Company's contractual commitments due to letters of credit | |||
Loan commitments | 856,472,000 | 856,472,000 | 999,325,000 |
Unused lines of Credit [Member] | Fixed [Member] | |||
Company's contractual commitments due to letters of credit | |||
Loan commitments | 146,201,000 | 146,201,000 | 139,070,000 |
Unused lines of Credit [Member] | Variable [Member] | |||
Company's contractual commitments due to letters of credit | |||
Loan commitments | $ 710,271,000 | $ 710,271,000 | $ 860,255,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 24,335 | $ 19,523 | $ 73,504 | $ 43,790 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |