Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 06, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
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 | 44,849,591 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000357173 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 54,888 | $ 55,534 |
Interest earning deposits with financial institutions | 66,004 | 44,611 |
Cash and cash equivalents | 120,892 | 100,145 |
Securities available-for-sale, at fair value | 1,173,661 | 1,192,829 |
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock | 32,005 | 33,355 |
Loans held-for-sale | 2,291 | 1,322 |
Loans | 3,976,595 | 4,042,953 |
Less: allowance for credit losses on loans | 42,269 | 44,264 |
Net loans | 3,934,326 | 3,998,689 |
Premises and equipment, net | 82,871 | 79,310 |
Other real estate owned | 6,920 | 5,123 |
Mortgage servicing rights, at fair value | 10,488 | 10,344 |
Goodwill | 86,478 | 86,478 |
Core deposit intangible | 10,063 | 11,217 |
Bank-owned life insurance ("BOLI") | 110,535 | 109,318 |
Deferred tax assets, net | 28,710 | 31,077 |
Other assets | 63,460 | 63,592 |
Total assets | 5,662,700 | 5,722,799 |
Deposits: | ||
Noninterest bearing demand | 1,728,487 | 1,834,891 |
Interest bearing: | ||
Savings, NOW, and money market | 2,161,426 | 2,207,949 |
Time | 631,815 | 527,906 |
Total deposits | 4,521,728 | 4,570,746 |
Securities sold under repurchase agreements | 46,542 | 26,470 |
Other short-term borrowings | 330,000 | 405,000 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,425 | 59,382 |
Other liabilities | 59,897 | 58,147 |
Total liabilities | 5,043,365 | 5,145,518 |
Stockholders' Equity | ||
Common stock | 44,908 | 44,705 |
Additional paid-in capital | 204,012 | 202,223 |
Retained earnings | 432,037 | 393,311 |
Accumulated other comprehensive loss | (60,769) | (62,781) |
Treasury stock | (853) | (177) |
Total stockholders' equity | 619,335 | 577,281 |
Total liabilities and stockholders' equity | $ 5,662,700 | $ 5,722,799 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 44,907,619 | 44,705,150 |
Common stock, Shares outstanding | 44,849,591 | 44,697,917 |
Treasury stock, Shares | 58,028 | 7,233 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest and dividend income | ||||
Loans, including fees | $ 62,151 | $ 61,561 | $ 124,824 | $ 118,771 |
Loans held-for-sale | 19 | 19 | 33 | 31 |
Securities: | ||||
Taxable | 8,552 | 9,930 | 16,644 | 20,665 |
Tax exempt | 1,292 | 1,337 | 2,598 | 2,674 |
Dividends from FHLBC and FRBC stock | 584 | 396 | 1,219 | 676 |
Interest bearing deposits with financial institutions | 625 | 643 | 1,235 | 1,228 |
Total interest and dividend income | 73,223 | 73,886 | 146,553 | 144,045 |
Interest expense | ||||
Savings, NOW, and money market deposits | 4,317 | 1,742 | 8,354 | 2,891 |
Time deposits | 4,961 | 1,156 | 9,002 | 1,820 |
Securities sold under repurchase agreements | 83 | 7 | 169 | 16 |
Other short-term borrowings | 3,338 | 5,160 | 7,895 | 7,505 |
Junior subordinated debentures | 288 | 281 | 568 | 560 |
Subordinated debentures | 546 | 546 | 1,092 | 1,092 |
Senior notes | 1,414 | 2,408 | ||
Notes payable and other borrowings | 87 | |||
Total interest expense | 13,533 | 10,306 | 27,080 | 16,379 |
Net interest and dividend income | 59,690 | 63,580 | 119,473 | 127,666 |
Provision for credit losses | 3,750 | 2,000 | 7,250 | 5,501 |
Net interest and dividend income after provision for credit losses | 55,940 | 61,580 | 112,223 | 122,165 |
Noninterest income | ||||
Mortgage servicing rights mark to market (loss) gain | (238) | 96 | (144) | (429) |
Net gain on sales of mortgage loans | 468 | 398 | 782 | 704 |
Securities (losses) gains, net | (1,547) | 1 | (3,222) | |
Change in cash surrender value of BOLI | 820 | 418 | 1,992 | 660 |
Death benefit realized on BOLI | 893 | 893 | ||
Card related income | 2,577 | 2,690 | 4,953 | 4,934 |
Other income | 742 | 773 | 1,772 | 2,262 |
Total noninterest income | 11,127 | 8,223 | 21,628 | 15,573 |
Noninterest expense | ||||
Salaries and employee benefits | 23,424 | 21,798 | 47,736 | 44,046 |
Occupancy, furniture and equipment | 3,899 | 3,639 | 7,826 | 7,114 |
Computer and data processing | 2,184 | 1,290 | 4,439 | 3,064 |
FDIC insurance | 616 | 794 | 1,283 | 1,378 |
Net teller & bill paying | 578 | 515 | 1,099 | 1,017 |
General bank insurance | 312 | 306 | 621 | 611 |
Amortization of core deposit intangible | 574 | 618 | 1,154 | 1,242 |
Advertising expense | 472 | 103 | 664 | 245 |
Card related expense | 1,323 | 1,222 | 2,600 | 2,438 |
Legal fees | 238 | 283 | 464 | 602 |
Consulting & management fees | 797 | 520 | 1,133 | 1,310 |
Other real estate expense, net | (87) | (98) | (41) | 208 |
Other expense | 3,547 | 3,840 | 7,140 | 7,477 |
Total noninterest expense | 37,877 | 34,830 | 76,118 | 70,752 |
Income before income taxes | 29,190 | 34,973 | 57,733 | 66,986 |
Provision for income taxes | 7,299 | 9,411 | 14,530 | 17,817 |
Net income | $ 21,891 | $ 25,562 | $ 43,203 | $ 49,169 |
Basic earnings per share | $ 0.48 | $ 0.57 | $ 0.96 | $ 1.10 |
Diluted earnings per share | 0.48 | 0.56 | 0.95 | 1.08 |
Dividends declared per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Wealth management | ||||
Noninterest income | ||||
Service charges on deposits | $ 2,779 | $ 2,458 | $ 5,340 | $ 4,728 |
Service charges on deposits | ||||
Noninterest income | ||||
Service charges on deposits | 2,508 | 2,362 | 4,923 | 4,786 |
Secondary mortgage fees | ||||
Noninterest income | ||||
Service charges on deposits | 65 | 76 | 115 | 135 |
Mortgage servicing income | ||||
Noninterest income | ||||
Service charges on deposits | $ 513 | $ 499 | $ 1,001 | $ 1,015 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net Income (Loss) | $ 21,891 | $ 25,562 | $ 43,203 | $ 49,169 |
Unrealized holding gains (losses) on available-for-sale securities arising during the period | 2,405 | (8,360) | 1,529 | 7,850 |
Related tax (expense) benefit | (673) | 2,342 | (428) | (2,194) |
Holding gains (losses), after tax, on available-for-sale securities | 1,732 | (6,018) | 1,101 | 5,656 |
Less: Reclassification adjustment for the net gains (losses) realized during the period | ||||
Net realized (losses) gains | (1,547) | 1 | (3,222) | |
Related tax benefit | 434 | 905 | ||
Net realized (losses) gains, after tax | (1,113) | 1 | (2,317) | |
Other comprehensive income (loss) on available-for-sale securities | 1,732 | (4,905) | 1,100 | 7,973 |
Changes in fair value of derivatives used for cash flow hedges | 1,194 | (3,017) | 1,246 | (1,415) |
Related tax (expense) benefit | (334) | 836 | (334) | 380 |
Other comprehensive income (loss) on cash flow hedges | 860 | (2,181) | 912 | (1,035) |
Total other comprehensive income (loss) | 2,592 | (7,086) | 2,012 | 6,938 |
Total comprehensive income | $ 24,483 | $ 18,476 | $ 45,215 | $ 56,107 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | |||
Net income | $ 25,562 | $ 43,203 | $ 49,169 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net premium / discount amortization on securities | 1,544 | 1,626 | |
Securities (gains) losses, net | 1,547 | (1) | 3,222 |
Provision for credit losses | 2,000 | 7,250 | 5,501 |
Originations of loans held-for-sale | (22,114) | (24,570) | |
Proceeds from sales of loans held-for-sale | 21,650 | 24,271 | |
Net gains on sales of mortgage loans | (398) | (782) | (704) |
Mortgage servicing rights mark to market loss | (96) | 144 | 429 |
Net accretion of discount on loans and unfunded commitments | (258) | (2,093) | |
Net change in cash surrender value of BOLI | (418) | (1,992) | (660) |
Net gains on sale of other real estate owned | (186) | (259) | (158) |
Provision for other real estate owned valuation losses | 269 | ||
Depreciation of fixed assets and amortization of leasehold improvements | 2,721 | 2,135 | |
Net gains on disposal and transfer of fixed assets | (635) | ||
Amortization of core deposit intangibles | 618 | 1,154 | 1,242 |
Change in current income taxes receivable | (17) | (456) | |
Deferred tax expense | 1,605 | 2,204 | |
Change in accrued interest receivable and other assets | 1,191 | (50,594) | |
Accretion of purchase accounting adjustment on time deposits | (106) | (701) | |
Change in accrued interest payable and other liabilities | 1,998 | (5,709) | |
Stock based compensation | 2,107 | 1,774 | |
Net cash provided by operating activities | 59,038 | 5,562 | |
Cash flows from investing activities | |||
Proceeds from maturities and calls, including pay down of securities available-for-sale | 171,708 | 73,981 | |
Proceeds from sales of securities available-for-sale | 73,996 | 5,331 | 140,166 |
Purchases of securities available-for-sale | (157,886) | (4,186) | |
Net redemptions (purchases) of FHLBC/FRBC stock | 1,350 | (16,200) | |
Net change in loans | 53,983 | (143,966) | |
Purchases of BOLI policies | (460) | ||
Proceeds from claims on BOLI, net of claims receivable | 1,235 | ||
Proceeds from sales of other real estate owned, net of participations and improvements | 1,850 | 1,165 | |
Proceeds from disposition of premises and equipment | 1,105 | ||
Net purchases of premises and equipment | (6,293) | (3,047) | |
Net cash provided by investing activities | 70,818 | 49,018 | |
Cash flows from financing activities | |||
Net change in deposits | (48,912) | (392,440) | |
Net change in securities sold under repurchase agreements | 20,072 | (624) | |
Net change in other short-term borrowings | (75,000) | 395,000 | |
Repayment of term note | (9,000) | ||
Repayment of senior notes | (45,000) | ||
Dividends paid on common stock | (4,478) | (4,478) | |
Purchase of treasury stock | (791) | (605) | |
Net cash used in financing activities | (109,109) | (57,147) | |
Net change in cash and cash equivalents | 20,747 | (2,567) | |
Cash and cash equivalents at beginning of period | 100,145 | 115,177 | |
Cash and cash equivalents at end of period | $ 112,610 | $ 120,892 | $ 112,610 |
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 (Loss) Income | Treasury Stock | Total |
Balance at Dec. 31, 2022 | $ 44,705 | $ 202,276 | $ 310,512 | $ (93,124) | $ (3,228) | $ 461,141 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 49,169 | 49,169 | ||||
Other comprehensive income loss, net of tax | 6,938 | 6,938 | ||||
Dividends declared on common stock | (4,462) | (4,462) | ||||
Vesting of restricted stock | (3,087) | 3,087 | ||||
Stock based compensation | 1,774 | 1,774 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (605) | (605) | ||||
Balance at Jun. 30, 2023 | 44,705 | 200,963 | 355,219 | (86,186) | (746) | 513,955 |
Balance at Mar. 31, 2023 | 44,705 | 200,121 | 331,890 | (79,100) | (746) | 496,870 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 25,562 | 25,562 | ||||
Other comprehensive income loss, net of tax | (7,086) | (7,086) | ||||
Dividends declared on common stock | (2,233) | (2,233) | ||||
Stock based compensation | 842 | 842 | ||||
Balance at Jun. 30, 2023 | 44,705 | 200,963 | 355,219 | (86,186) | (746) | 513,955 |
Balance at Dec. 31, 2023 | 44,705 | 202,223 | 393,311 | (62,781) | (177) | 577,281 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 43,203 | 43,203 | ||||
Other comprehensive income loss, net of tax | 2,012 | 2,012 | ||||
Dividends declared on common stock | (4,477) | (4,477) | ||||
Vesting of restricted stock | 203 | (318) | 115 | |||
Stock based compensation | 2,107 | 2,107 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (791) | (791) | ||||
Balance at Jun. 30, 2024 | 44,908 | 204,012 | 432,037 | (60,769) | (853) | 619,335 |
Balance at Mar. 31, 2024 | 44,908 | 203,129 | 412,388 | (63,361) | (905) | 596,159 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 21,891 | 21,891 | ||||
Other comprehensive income loss, net of tax | 2,592 | 2,592 | ||||
Dividends declared on common stock | (2,242) | (2,242) | ||||
Vesting of restricted stock | (67) | 67 | ||||
Stock based compensation | 950 | 950 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (15) | (15) | ||||
Balance at Jun. 30, 2024 | $ 44,908 | $ 204,012 | $ 432,037 | $ (60,769) | $ (853) | $ 619,335 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 596,159 | $ 496,870 | $ 577,281 | $ 461,141 |
Other comprehensive income (loss), net of tax | 2,592 | (7,086) | 2,012 | 6,938 |
Balance | $ 619,335 | $ 513,955 | $ 619,335 | $ 513,955 |
Dividend declared and paid (per share) | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Total Accumulated Other Comprehensive Income/(Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ (63,361) | $ (79,100) | $ (62,781) | $ (93,124) |
Other comprehensive income (loss), net of tax | 2,592 | (7,086) | 2,012 | 6,938 |
Balance | (60,769) | (86,186) | (60,769) | (86,186) |
Accumulated Unrealized Gain (Loss) on Securities Available-for-Sale | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (61,222) | (76,014) | (60,590) | (88,892) |
Other comprehensive income (loss), net of tax | 1,732 | (4,905) | 1,100 | 7,973 |
Balance | (59,490) | (80,919) | (59,490) | (80,919) |
Accumulated Unrealized Gain (Loss) on Derivative Instruments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (2,139) | (3,086) | (2,191) | (4,232) |
Other comprehensive income (loss), net of tax | 860 | (2,181) | 912 | (1,035) |
Balance | $ (1,279) | $ (5,267) | $ (1,279) | $ (5,267) |
Basis of Presentation and Chang
Basis of Presentation and Changes in Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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, 2023. 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 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2024-01 – Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards ASU 2024-02 – Codification Improvements – Amendments to Remove References to the Concepts Statements 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, 2023. 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 second quarter of 2024, the Company had no changes to significant accounting policies or estimates. Subsequent Events On July 16, 2024, our Board of Directors declared a cash dividend of $0.05 per share of common stock payable on August 5, 2024, to stockholders of record as of July 26, 2024; dividends of $2.2 million were paid to stockholders on August 5, 2024. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2024 | |
Securities | |
Securities | Note 2 – 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 $17.1 million at June 30, 2024, and $18.5 million at December 31, 2023. FRBC stock was recorded at $14.9 million at June 30, 2024, and December 31, 2023. The following tables summarize the amortized cost and fair value of the securities portfolio at June 30, 2024, and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2024 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 193,615 $ 146 $ (2,487) $ 191,274 U.S. government agencies 39,653 - (2,355) 37,298 U.S. government agencies mortgage-backed 109,490 - (12,618) 96,872 States and political subdivisions 232,373 470 (12,578) 220,265 Collateralized mortgage obligations 436,623 321 (50,889) 386,055 Asset-backed securities 67,634 6 (2,763) 64,877 Collateralized loan obligations 176,897 195 (72) 177,020 Total securities available-for-sale $ 1,256,285 $ 1,138 $ (83,762) $ 1,173,661 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2023 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 174,602 $ - $ (5,028) $ 169,574 U.S. government agencies 60,011 - (3,052) 56,959 U.S. government agencies mortgage-backed 118,492 - (12,122) 106,370 States and political subdivisions 236,072 1,325 (10,332) 227,065 Collateralized mortgage obligations 442,987 421 (50,864) 392,544 Asset-backed securities 71,616 42 (3,222) 68,436 Collateralized loan obligations 173,201 30 (1,350) 171,881 Total securities available-for-sale $ 1,276,981 $ 1,818 $ (85,970) $ 1,192,829 1 Excludes accrued interest receivable of $6.7 million and $6.6 million at June 30, 2024 and December 31, 2023, 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 June 30, 2024, 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 $ 122,815 1.69 % $ 120,302 Due after one year through five years 127,580 3.63 125,243 Due after five years through ten years 58,374 2.77 53,383 Due after ten years 156,872 3.11 149,909 465,641 2.84 448,837 Mortgage-backed and collateralized mortgage obligations 546,113 2.52 482,927 Asset-backed securities 67,634 4.08 64,877 Collateralized loan obligations 176,897 6.98 177,020 Total securities available-for-sale $ 1,256,285 3.35 % $ 1,173,661 At June 30, 2024, 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 June 30, 2024, and December 31, 2023, 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 June 30, 2024 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 2 $ 12 $ 29,806 2 $ 2,475 $ 97,328 4 $ 2,487 $ 127,134 U.S. government agencies - - - 8 2,355 37,298 8 2,355 37,298 U.S. government agencies mortgage-backed - - - 128 12,618 96,872 128 12,618 96,872 States and political subdivisions 33 763 86,106 35 11,815 125,519 68 12,578 211,625 Collateralized mortgage obligations - - - 142 50,889 349,308 142 50,889 349,308 Asset-backed securities 2 10 5,064 18 2,753 59,306 20 2,763 64,370 Collateralized loan obligations 3 59 32,944 4 13 28,279 7 72 61,223 Total securities available-for-sale 40 $ 844 $ 153,920 337 $ 82,918 $ 793,910 377 $ 83,762 $ 947,830 Less than 12 months 12 months or more December 31, 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 - $ - $ - 4 $ 5,028 $ 169,574 4 $ 5,028 $ 169,574 U.S. government agencies - - - 9 3,052 56,959 9 3,052 56,959 U.S. government agencies mortgage-backed - - - 128 12,122 106,370 128 12,122 106,370 States and political subdivisions 12 137 27,974 25 10,195 106,138 37 10,332 134,112 Collateralized mortgage obligations 2 8 734 143 50,856 376,236 145 50,864 376,970 Asset-backed securities - - - 19 3,222 63,941 19 3,222 63,941 Collateralized loan obligations - - - 25 1,350 150,902 25 1,350 150,902 Total securities available-for-sale 14 $ 145 $ 28,708 353 $ 85,825 $ 1,030,120 367 $ 85,970 $ 1,058,828 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 June 30, 2024, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the second quarter of 2024. The following table presents net realized gains (losses) on securities available-for-sale for three and six months ended: Three Months Ended Six Months Ended June 30, June 30, Securities available-for-sale 2024 2023 2024 2023 Proceeds from sales of securities $ - $ 73,996 $ 5,331 $ 140,166 Gross realized gains on securities $ - $ - $ 1 $ - Gross realized losses on securities - (1,547) - (3,222) Net realized (losses) gains $ - $ (1,547) $ 1 $ (3,222) Income tax benefit on net realized losses $ - $ 434 $ - $ 905 Effective tax rate applied N/M % 28.1 % N/M % 28.1 % N/M – Not meaningful. As of June 30, 2024, securities valued at $762.2 million were pledged for borrowings and for other purposes, a decrease from $810.2 million of securities pledged at year-end 2023. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Allowance for Credit Losses on Loans | |
Loans and Allowance for Credit Losses on Loans | Note 3 – Loans and Allowance for Credit Losses on Loans Major segments of loans were as follows: June 30, 2024 December 31, 2023 Commercial $ 809,443 $ 841,697 Leases 452,957 398,223 Commercial real estate – investor 1,014,345 1,034,424 Commercial real estate – owner occupied 745,938 796,538 Construction 185,634 165,380 Residential real estate – investor 50,371 52,595 Residential real estate – owner occupied 218,974 226,248 Multifamily 388,743 401,696 HELOC 99,037 103,237 Other 1 11,153 22,915 Total loans 3,976,595 4,042,953 Allowance for credit losses on loans (42,269) (44,264) Net loans 2 $ 3,934,326 $ 3,998,689 1 The “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 3 – Loans and Allowance for Credit Losses on Loans. 2 Excludes accrued interest receivable of $19.4 million and $20.5 million at June 30, 2024, and December 31, 2023, 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 ensure 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 68.0% and 68.8% of the portfolio at June 30, 2024, and December 31, 2023, 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 six months ended June 30, 2024 and 2023: Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2024 Commercial $ 6,382 $ 327 $ 3 $ 22 $ 6,728 Leases 2,959 (900) 81 - 1,978 Commercial real estate – investor 16,270 6,132 4,580 20 17,842 Commercial real estate – owner occupied 10,992 (2,650) 1,281 119 7,180 Construction 1,097 923 - - 2,020 Residential real estate – investor 636 (30) - 3 609 Residential real estate – owner occupied 1,660 (51) - 9 1,618 Multifamily 2,593 211 - - 2,804 HELOC 1,508 (40) - 15 1,483 Other 16 28 66 29 7 Total $ 44,113 $ 3,950 $ 6,011 $ 217 $ 42,269 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Six months ended June 30, 2024 Commercial $ 3,998 $ 2,653 $ 18 $ 95 $ 6,728 Leases 2,952 (933) 81 40 1,978 Commercial real estate – investor 17,105 5,230 4,596 103 17,842 Commercial real estate – owner occupied 12,280 (70) 5,168 138 7,180 Construction 1,038 982 - - 2,020 Residential real estate – investor 669 (65) - 5 609 Residential real estate – owner occupied 1,821 (220) - 17 1,618 Multifamily 2,728 76 - - 2,804 HELOC 1,656 (205) - 32 1,483 Other 17 46 136 80 7 Total $ 44,264 $ 7,494 $ 9,999 $ 510 $ 42,269 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2023 Commercial $ 11,511 $ 319 $ 380 $ 82 $ 11,532 Leases 2,766 (83) - 7 2,690 Commercial real estate – investor 15,260 4,822 71 20 20,031 Commercial real estate – owner occupied 15,576 (2,816) 201 3 12,562 Construction 1,045 134 - - 1,179 Residential real estate – investor 746 (8) - 5 743 Residential real estate – owner occupied 1,722 110 - 36 1,868 Multifamily 2,665 72 - - 2,737 HELOC 1,788 (118) - 24 1,694 Other 313 (5) 81 51 278 Total $ 53,392 $ 2,427 $ 733 $ 228 $ 55,314 Provision for Allowance for credit losses Beginning (Release of) Ending Six months ended June 30, 2023 Balance Credit Losses Charge-offs Recoveries Balance Commercial $ 11,968 $ (262) $ 407 $ 233 $ 11,532 Leases 2,865 691 882 16 2,690 Commercial real estate – investor 10,674 9,391 71 37 20,031 Commercial real estate – owner occupied 15,001 (2,243) 201 5 12,562 Construction 1,546 (367) - - 1,179 Residential real estate – investor 768 (49) - 24 743 Residential real estate – owner occupied 2,046 (224) - 46 1,868 Multifamily 2,453 284 - - 2,737 HELOC 1,806 (165) - 53 1,694 Other 353 23 194 96 278 Total $ 49,480 $ 7,079 $ 1,755 $ 510 $ 55,314 At June 30, 2024, our allowance for credit losses (“ACL”) on loans totaled $42.3 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.5 million. During the first six months of 2024, we recorded net provision for credit losses on loans of $7.5 million based on historical loss rate updates driven by higher charge offs in commercial real estate-investor, downward risk rating migration, and our assessment of estimated future credit losses. The ACL on loans excludes an allowance for unfunded commitments of $2.5 million as of June 30, 2024, and $2.7 million as of both December 31, 2023, and June 30, 2023, which is recorded within other liabilities. Generally, the Bank considers a loan to be collateral dependent when, based on current information and events, it is probable that foreclosure could 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 or sponsors 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 $38.5 million and $63.1 million of collateral dependent loans secured by real estate or business assets as of June 30, 2024, and December 31, 2023, respectively. The following tables present the collateral dependent loans and the related ACL allocated by segment of loans as of June 30, 2024, and December 31, 2023: Accounts ACL June 30, 2024 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 825 $ 508 $ 1,227 $ 2,560 $ 1,229 Leases - - - - - - Commercial real estate – investor 9,955 - - - 9,955 3,482 Commercial real estate – owner occupied 17,207 - - - 17,207 - Construction 5,739 - - - 5,739 732 Residential real estate – investor 523 - - - 523 - Residential real estate – owner occupied 1,640 - - - 1,640 - Multifamily 839 - - - 839 - HELOC 62 - - - 62 - Total $ 35,965 $ 825 $ 508 $ 1,227 $ 38,525 $ 5,443 Accounts ACL December 31, 2023 Real Estate Receivable Equipment Other Total Allocation Commercial $ 837 $ 797 $ - $ - $ 1,634 $ 2 Leases - - 321 - 321 320 Commercial real estate – investor 15,735 - - - 15,735 3,656 Commercial real estate – owner occupied 34,894 - - - 34,894 3,900 Construction 7,162 - - - 7,162 - Residential real estate – investor 422 - - - 422 - Residential real estate – owner occupied 1,506 - - - 1,506 - Multifamily 1,402 - - - 1,402 - HELOC 39 - - - 39 - Total $ 61,997 $ 797 $ 321 $ - $ 63,115 $ 7,878 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 June 30, 2024 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 914 $ 3,127 $ 842 $ 4,883 $ 804,560 $ 809,443 $ - Leases 479 451 108 1,038 451,919 452,957 - Commercial real estate – investor 8,150 710 838 9,698 1,004,647 1,014,345 - Commercial real estate – owner occupied 2,103 108 20,733 22,944 722,994 745,938 4,835 Construction - - 5,740 5,740 179,894 185,634 - Residential real estate – investor - - 621 621 49,750 50,371 - Residential real estate – owner occupied 390 70 1,870 2,330 216,644 218,974 - Multifamily 235 - 1,054 1,289 387,454 388,743 - HELOC 371 63 309 743 98,294 99,037 74 Other - - - - 11,153 11,153 - Total $ 12,642 $ 4,529 $ 32,115 $ 49,286 $ 3,927,309 $ 3,976,595 $ 4,909 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2023 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 982 $ - $ 1,228 $ 2,210 $ 839,487 $ 841,697 $ 1,155 Leases 599 - 347 946 397,277 398,223 - Commercial real estate – investor 1,209 - 6,087 7,296 1,027,128 1,034,424 - Commercial real estate – owner occupied 2,103 3,726 15,645 21,474 775,064 796,538 - Construction 2,540 307 7,161 10,008 155,372 165,380 - Residential real estate – investor 540 579 168 1,287 51,308 52,595 - Residential real estate – owner occupied 553 125 1,944 2,622 223,626 226,248 - Multifamily 1,085 - 233 1,318 400,378 401,696 - HELOC 565 1,396 269 2,230 101,007 103,237 41 Other - 1 - 1 22,914 22,915 - Total $ 10,176 $ 6,134 $ 33,082 $ 49,392 $ 3,993,561 $ 4,042,953 $ 1,196 The table presents all nonaccrual loans as of June 30, 2024, and December 31, 2023: Nonaccrual loan detail June 30, 2024 With no ACL December 31, 2023 With no ACL Commercial $ 2,654 $ 1,427 $ 870 $ 870 Leases 284 284 639 318 Commercial real estate – investor 9,954 2,481 16,572 8,926 Commercial real estate – owner occupied 17,256 17,256 34,946 8,429 Construction 5,740 5,740 7,162 7,162 Residential real estate – investor 1,280 1,280 1,331 1,331 Residential real estate – owner occupied 2,599 2,599 3,078 3,078 Multifamily 1,395 1,395 1,775 1,775 HELOC 795 795 1,210 1,210 Other - - - - Total $ 41,957 $ 33,257 $ 67,583 $ 33,099 The Company recognized $2,000 and $36,000 of interest on nonaccrual loans during the three months and six months ended June 30, 2024, 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 June 30, 2024, were as follows: 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 115,506 $ 264,234 $ 111,600 $ 25,429 $ 9,219 $ 18,900 $ 221,006 $ $ 765,894 Special Mention - 227 2,043 2,771 50 - 19,316 - 24,407 Substandard - 20 6,227 144 - - 12,751 - 19,142 Total commercial 115,506 264,481 119,870 28,344 9,269 18,900 253,073 - 809,443 Leases Pass 131,338 186,396 $ 87,390 31,893 10,335 3,290 - - 450,642 Special Mention - 300 775 947 - 9 - - 2,031 Substandard - - 284 - - - - - 284 Total leases 131,338 186,696 88,449 32,840 10,335 3,299 - - 452,957 Commercial real estate – investor Pass 55,037 190,938 334,504 188,015 93,138 104,176 7,398 - 973,206 Special Mention - - - 4,200 - - - - 4,200 Substandard - 1,645 - 837 5,272 16,936 12,249 - 36,939 Total commercial real estate – investor 55,037 192,583 334,504 193,052 98,410 121,112 19,647 - 1,014,345 Commercial real estate – owner occupied Pass 17,675 131,499 150,692 159,537 86,192 113,781 14,700 - 674,076 Special Mention - - 18,605 2,844 - 2,026 - - 23,475 Substandard - - 13,560 4,835 12,925 17,067 - - 48,387 Total commercial real estate – owner occupied 17,675 131,499 182,857 167,216 99,117 132,874 14,700 - 745,938 Construction Pass 15,841 44,518 90,851 26,377 91 1,614 254 - 179,546 Special Mention - - 348 - - - - - 348 Substandard - - 5,740 - - - - - 5,740 Total construction 15,841 44,518 96,939 26,377 91 1,614 254 - 185,634 Residential real estate – investor Pass 1,321 3,908 14,032 7,851 6,062 13,199 2,089 - 48,462 Special Mention - - - 566 - - - - 566 Substandard - - 378 63 - 902 - - 1,343 Total residential real estate – investor 1,321 3,908 14,410 8,480 6,062 14,101 2,089 - 50,371 Residential real estate – owner occupied Pass 9,551 31,099 36,751 38,750 23,967 75,320 802 - 216,240 Special Mention - - - - - - - - - Substandard - - - - 101 2,633 - - 2,734 Total residential real estate – owner occupied 9,551 31,099 36,751 38,750 24,068 77,953 802 - 218,974 Multifamily Pass 16,590 76,747 70,903 115,700 39,835 51,594 574 - 371,943 Special Mention - - - 9,990 - - - - 9,990 Substandard - - 1,135 3,337 514 1,824 - - 6,810 Total multifamily 16,590 76,747 72,038 129,027 40,349 53,418 574 - 388,743 HELOC Pass 1,471 2,629 2,421 430 1,469 4,167 85,425 - 98,012 Special Mention - - - - - - - - - Substandard - - - - 40 287 698 - 1,025 Total HELOC 1,471 2,629 2,421 430 1,509 4,454 86,123 - 99,037 Other Pass 2,800 1,953 1,401 884 96 129 3,889 - 11,152 Special Mention - - - - - - - - - Substandard - - - - - - 1 - 1 Total other 2,800 1,953 1,401 884 96 129 3,890 - 11,153 Total loans Pass 367,130 933,921 900,545 594,866 270,404 386,170 336,137 - 3,789,173 Special Mention - 527 21,771 21,318 50 2,035 19,316 - 65,017 Substandard - 1,665 27,324 9,216 18,852 39,649 25,699 - 122,405 Total loans $ 367,130 $ 936,113 $ 949,640 $ 625,400 $ 289,306 $ 427,854 $ 381,152 $ - $ 3,976,595 Credit quality indicators by loan segment and loan origination date at December 31, 2023, were as follows: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 318,569 $ 136,668 $ 35,901 $ 11,983 $ 18,390 $ 3,426 $ 298,931 $ 1,408 $ 825,276 Special Mention - 2,737 707 171 - - 4,392 - 8,007 Substandard - 2,099 146 - 199 - 5,970 - 8,414 Total commercial 318,569 141,504 36,754 12,154 18,589 3,426 309,293 1,408 841,697 Leases Pass 219,163 113,074 $ 42,275 14,663 6,975 1,255 - - 397,405 Special Mention - - - - - - - - - Substandard - 407 203 - 208 - - - 818 Total leases 219,163 113,481 42,478 14,663 7,183 1,255 - - 398,223 Commercial real estate – investor Pass 159,654 367,512 218,084 108,384 54,322 63,281 8,122 - 979,359 Special Mention - - 11,267 - - - - - 11,267 Substandard - - 838 5,327 15,658 9,648 12,327 - 43,798 Total commercial real estate – investor 159,654 367,512 230,189 113,711 69,980 72,929 20,449 - 1,034,424 Commercial real estate – owner occupied Pass 124,059 134,383 177,553 103,109 42,839 91,062 33,243 - 706,248 Special Mention 1,650 17,415 9,585 3,128 218 3,681 - - 35,677 Substandard - 14,630 18,817 4,571 14,809 1,786 - - 54,613 Total commercial real estate – owner occupied 125,709 166,428 205,955 110,808 57,866 96,529 33,243 - 796,538 Construction Pass 42,808 66,513 32,942 100 1,593 1,083 3,186 - 148,225 Special Mention - - - - - - - - - Substandard - - - 9,993 - 7,162 - - 17,155 Total construction 42,808 66,513 32,942 10,093 1,593 8,245 3,186 - 165,380 Residential real estate – investor Pass 5,062 14,434 9,027 6,227 6,508 8,469 1,471 - 51,198 Special Mention - - 66 - - - - - 66 Substandard - 390 - - 408 533 - - 1,331 Total residential real estate – investor 5,062 14,824 9,093 6,227 6,916 9,002 1,471 - 52,595 Residential real estate – owner occupied Pass 32,574 41,528 40,335 25,322 14,233 68,277 763 - 223,032 Special Mention - - - - - - - - - Substandard - - - 191 685 2,340 - - 3,216 Total residential real estate – owner occupied 32,574 41,528 40,335 25,513 14,918 70,617 763 - 226,248 Multifamily Pass 55,310 79,060 123,834 72,539 12,231 40,825 562 - 384,361 Special Mention - 168 13,425 322 1,645 - - - 15,560 Substandard - 1,009 - - - 766 - - 1,775 Total multifamily 55,310 80,237 137,259 72,861 13,876 41,591 562 - 401,696 HELOC Pass 2,735 2,679 490 1,757 1,756 2,995 89,161 - 101,573 Special Mention - - - - - - - - - Substandard - 25 1 41 24 184 1,389 - 1,664 Total HELOC 2,735 2,704 491 1,798 1,780 3,179 90,550 - 103,237 Other Pass 4,060 2,278 1,569 153 85 73 14,697 - 22,915 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total other 4,060 2,278 1,569 153 85 73 14,697 - 22,915 Total loans Pass 963,994 958,129 682,010 344,237 158,932 280,746 450,136 1,408 3,839,592 Special Mention 1,650 20,320 35,050 3,621 1,863 3,681 4,392 - 70,577 Substandard - 18,560 20,005 20,123 31,991 22,419 19,686 - 132,784 Total loans $ 965,644 $ 997,009 $ 737,065 $ 367,981 $ 192,786 $ 306,846 $ 474,214 $ 1,408 $ 4,042,953 The gross charge-offs activity by loan type and year of origination for the six months ended June 30, 2024 and June 30, 2023, were as follows: Six months ended June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial $ - - - - - 18 $ - $ - $ 18 Leases - - 28 53 - - - - 81 Commercial real estate – investor - - 4,128 452 16 - - - 4,596 Commercial real estate – owner occupied - - 5,135 - 33 - - 5,168 Other - - - - - 136 - - 136 Total $ - $ - $ 4,156 $ 5,640 $ 16 $ 187 - - $ 9,999 Six months ended June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial $ - $ - $ - $ 364 $ - $ 43 $ - $ - $ 407 Leases - 870 - - 12 - - - 882 Commercial real estate – investor - - 71 - - - - - 71 Commercial real estate – owner occupied - 22 179 - - - - - 201 Other - 3 24 8 - 159 - - 194 Total $ - $ 895 $ 274 $ 372 $ 12 $ 202 - - $ 1,755 The Company had $431,000 and $170,000 in residential real estate loans in the process of foreclosure as of June 30, 2024, and December 31, 2023, respectively. There were six loans modified during the six-month period ending June 30, 2024, totaling $16.4 million in aggregate, which were experiencing financial difficulty. There were eleven loans modified during the six-month period ending June 30, 2023, totaling $32.7 million in aggregate, which were experiencing financial difficulty. There were no modified loans experiencing financial difficulty in payment default as of June 30, 2024, and June 30, 2023. The following tables present the amortized costs basis of loans at June 30, 2024, and June 30, 2023, that were both experiencing financial difficulty and modified during the period ended June 30, 2024, and June 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 the amortized cost basis of each class of financing receivable is also presented below. June 30, 2024 Term Extension Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction Combination - Term Extension and Interest Rate Modification Combination - Term Extension and Payment Modification (1) Total Loans Modified % of Total Loan Segment Modified to Total Loan Segment Commercial $ 247 $ - $ - $ - $ 247 0.0% Commercial real estate – owner occupied 12,156 491 3,269 212 16,128 2.2% Total $ 12,403 $ 491 $ 3,269 $ 212 $ 16,375 0.4% June 30, 2023 Term Extension Combination - Term Extension and Interest Rate Modification Combination - Term Extension and Payment Modification 1 Total Loans Modified % of Total Loan Segment Modified to Total Loan Segment Commercial $ 859 $ 979 $ - $ 1,838 0.2% Commercial real estate – investor 12,664 - 1,774 14,438 1.3% Commercial real estate – owner occupied 16,318 - - 16,318 2.0% HELOC 60 - - 60 0.1% Total $ 29,901 $ 979 $ 1,774 $ 32,654 8.0% 1 Payment modifications are either contractual delays in payment or a modification of the payment amount . The Company closely monitors the performance of loan modifications to borrowers experiencing financial difficulty. The following tables present the performance of loans that have been modified as of June 30, 2024, and June 30, 2023. June 30, 2024 30-59 days past due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Modified Commercial $ - $ - $ - $ - $ 247 $ 247 Commercial real estate – owner occupied - - - - 16,128 16,128 Total $ - $ - $ - $ - $ 16,375 $ 16,375 June 30, 2023 30-59 days past due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Modified Commercial $ - $ - $ - $ - $ 1,838 $ 1,838 Commercial real estate – investor - - 1,774 1,774 12,664 14,438 Commercial real estate – owner occupied - - - - 16,318 16,318 HELOC - - - - 60 60 Total $ - $ - $ 1,774 $ 1,774 $ 30,880 $ 32,654 The following tables summarize the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period ended June 30, 2024, and June 30, 2023. The Company had two loans that had a payment modification as of June 30, 2024. One had an increase of monthly payment until maturity and the other had a reduction of monthly payment until maturity; the financial impact of these modifications is immaterial. As of June 30, 2023, there was one loan that had a payment modification to a single payment at maturity. June 30, 2024 Weighted-Average Term Extension (In Months) Weighted-Average Interest Rate Change Weighted-Average Delay of Payment (In Months) Commercial 4.00 - % - Commercial real estate – owner occupied 5.12 0.33 - Total 5.10 0.33 % - June 30, 2023 Weighted-Average Term Extension (In Months) Weighted-Average Interest Rate Change Weighted-Average Delay of Payment (In Months) Commercial 4.90 5.00 % - Commercial real estate – investor 11.50 - 7.00 Commercial real estate – owner occupied 12.00 - - HELOC 24.00 - - Total 11.40 5.00 % 7.00 |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2024 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 4 – Other Real Estate Owned Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table: Three Months Ended Six Months Ended June 30, June 30, Other real estate owned 2024 2023 2024 2023 Balance at beginning of period $ 5,123 $ 1,255 $ 5,123 $ 1,561 Property additions, net of acquisition adjustments 3,388 185 3,388 476 Less: Proceeds from property disposals, net of participation purchase and gains/losses 1,591 679 1,591 1,007 Period valuation write-down - - - 269 Balance at end of period $ 6,920 $ 761 $ 6,920 $ 761 Activity in the valuation allowance was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Balance at beginning of period $ 118 $ 853 $ 118 $ 856 Provision for unrealized losses - - - 269 Reductions taken on sales - (739) - (1,011) Balance at end of period $ 118 $ 114 $ 118 $ 114 Expenses related to OREO, net of lease revenue, includes: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Gain on sales, net $ (259) $ (186) $ (259) $ (158) Provision for unrealized losses - - - 269 Operating expenses 239 92 352 101 Less: Lease revenue 67 4 134 4 Net OREO expense $ (87) $ (98) $ (41) $ 208 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2024 | |
Deposits | |
Deposits | Note 5 – Deposits Major classifications of deposits were as follows: June 30, 2024 December 31, 2023 Noninterest bearing demand $ 1,728,487 $ 1,834,891 Savings 908,826 971,334 NOW accounts 557,469 565,375 Money market accounts 695,131 671,240 Certificates of deposit of less than $100,000 304,195 266,035 Certificates of deposit of $100,000 through $250,000 223,137 180,289 Certificates of deposit of more than $250,000 104,483 81,582 Total deposits $ 4,521,728 $ 4,570,746 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Borrowings | |
Borrowings | Note 6 – Borrowings The following table is a summary of borrowings as of June 30, 2024, and December 31, 2023. Junior subordinated debentures are discussed in more detail in Note 7. June 30, 2024 December 31, 2023 Securities sold under repurchase agreements $ 46,542 $ 26,470 Other short-term borrowings 330,000 405,000 Junior subordinated debentures 1 25,773 25,773 Subordinated debentures 59,425 59,382 Total borrowings $ 461,740 $ 516,625 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 $46.5 million at June 30, 2024, and $26.5 million at December 31, 2023. The fair value of the pledged collateral was $73.6 million at June 30, 2024, and $45.7 million at December 31, 2023. At June 30, 2024, 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 June 30, 2024, the Bank had $330.0 million in short-term advances outstanding under the FHLBC, and $405.0 million in short-term advances as of December 31, 2023. FHLBC stock held at June 30, 2024, was valued at $17.1 million, and any potential FHLBC advances were collateralized by loans and securities with a principal balance of $1.38 billion, which carried a FHLBC-calculated combined collateral value of $933.9 billion. The Company had excess collateral of $603.9 million available to secure borrowings at June 30, 2024. 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 Secured Overnight Financing Rate (“SOFR”) (as defined by the Note) plus 273 basis points, payable quarterly in arrears. As of June 30, 2024, and December 31, 2023, we had $59.4 million of subordinated debentures outstanding, net of deferred issuance cost. The Company issued senior notes in December 2016 with a ten-year 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 4.49% and 4.37% for the quarters ended June 30, 2024, and June 30, 2023, 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 June 30, 2024, and December 31, 2023, the remaining unamortized debt issuance costs related to the junior subordinated debentures were less than $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 | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, 718,193 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 339,235 and 238,149 restricted stock units issued under the 2019 Plan during the six months ended June 30, 2024, and June 30, 2023, 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 $2.2 million for the six months ended June 30, 2024, and $1.8 million for the six months ended June 30, 2023. A summary of changes in the Company’s unvested restricted awards for the six months ended June 30, 2024, is as follows: June 30, 2024 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 709,237 $ 14.26 Granted 339,235 13.44 Vested (209,969) 11.38 Forfeited (8,954) 14.09 Unvested at June 30 829,549 $ 14.65 Total unrecognized compensation cost of restricted awards was $6.2 million as of June 30, 2024, which is expected to be recognized over a weighted-average period of 2.03 years. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic earnings per share: Weighted-average common shares outstanding 44,846,848 44,665,127 44,802,704 44,642,250 Net income $ 21,891 $ 25,562 $ 43,203 $ 49,169 Basic earnings per share $ 0.48 $ 0.57 $ 0.96 $ 1.10 Diluted earnings per share: Weighted-average common shares outstanding 44,846,848 44,665,127 44,802,704 44,642,250 Dilutive effect of unvested restricted awards 1 835,391 759,291 800,358 728,556 Diluted average common shares outstanding 45,682,239 45,424,418 45,603,062 45,370,806 Net Income $ 21,891 $ 25,562 $ 43,203 $ 49,169 Diluted earnings per share $ 0.48 $ 0.56 $ 0.95 $ 1.08 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters
Regulatory & Capital Matters | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, the Bank exceeded those thresholds. At June 30, 2024, the Bank’s Tier 1 capital leverage ratio was 11.43%, an increase of 102 basis points from December 31, 2023, and is above the 8.00% objective. The Bank’s total capital ratio was 14.42%, an increase of 118 basis points from December 31, 2023, 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 June 30, 2024, and December 31, 2023. 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, 2023, under the heading “Supervision and Regulation.” At June 30, 2024, and December 31, 2023, 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 June 30, 2024 Common equity tier 1 capital to risk weighted assets Consolidated $ 587,746 12.41 % $ 331,525 7.00 % N/A N/A Old Second Bank 638,977 13.50 331,321 7.00 $ 307,656 6.50 % Total capital to risk weighted assets Consolidated 716,185 15.12 497,351 10.50 N/A N/A Old Second Bank 682,416 14.42 496,905 10.50 473,243 10.00 Tier 1 capital to risk weighted assets Consolidated 612,746 12.94 402,499 8.50 N/A N/A Old Second Bank 638,977 13.50 402,319 8.50 378,653 8.00 Tier 1 capital to average assets Consolidated 612,746 10.96 223,630 4.00 N/A N/A Old Second Bank 638,977 11.43 223,614 4.00 279,517 5.00 December 31, 2023 Common equity tier 1 capital to risk weighted assets Consolidated $ 547,721 11.37 % $ 337,207 7.00 % N/A N/A Old Second Bank 592,413 12.32 336,598 7.00 $ 312,556 6.50 % Total capital to risk weighted assets Consolidated 677,076 14.06 505,640 10.50 N/A N/A Old Second Bank 636,768 13.24 504,990 10.50 480,943 10.00 Tier 1 capital to risk weighted assets Consolidated 572,721 11.89 409,430 8.50 N/A N/A Old Second Bank 592,413 12.32 408,727 8.50 384,684 8.00 Tier 1 capital to average assets Consolidated 572,721 10.06 227,722 4.00 N/A N/A Old Second Bank 592,413 10.41 227,632 4.00 284,540 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 the Current Expected Credit Losses (“CECL”) methodology 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 June 30, 2024, the above capital measures of the Company include $951,000, 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 June 30, 2024, the Bank had capacity to pay dividends of $117.3 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 | 6 Months Ended |
Jun. 30, 2024 | |
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. There were no transfers between levels during the six-month period ended June 30, 2024, however the Company reclassified one states and political subdivisions security to an asset-backed security in all periods presented. During the six-month period ended June 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. 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, mortgage backed 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, a valuation 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 June 30, 2024, and December 31, 2023, respectively, measured by the Company at fair value on a recurring basis: June 30, 2024 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 191,274 $ - $ - $ 191,274 U.S. government agencies - 37,298 - 37,298 U.S. government agencies mortgage-backed - 96,872 - 96,872 States and political subdivisions - 207,738 12,527 220,265 Collateralized mortgage obligations - 386,055 - 386,055 Asset-backed securities - 62,210 2,667 64,877 Collateralized loan obligations - 177,020 - 177,020 Loans held-for-sale - 2,291 - 2,291 Mortgage servicing rights - - 10,488 10,488 Interest rate derivatives 1 - 6,095 - 6,095 Mortgage banking derivatives - 64 - 64 Total $ 191,274 $ 975,643 $ 25,682 $ 1,192,599 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 7,835 $ - $ 7,835 Total $ - $ 7,835 $ - $ 7,835 1 Interest rate derivatives includes interest rate swaps, a rate cap and risk participation agreements. December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 169,574 $ - $ - $ 169,574 U.S. government agencies - 56,959 - 56,959 U.S. government agencies mortgage-backed - 106,370 - 106,370 States and political subdivisions - 214,006 13,059 227,065 Collateralized mortgage obligations - 392,544 - 392,544 Asset-backed securities - 66,166 2,270 68,436 Collateralized loan obligations - 171,881 - 171,881 Loans held-for-sale - 1,322 - 1,322 Mortgage servicing rights - - 10,344 10,344 Interest rate derivatives 1 - 5,391 - 5,391 Total $ 169,574 $ 1,014,639 $ 25,673 $ 1,209,886 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 8,324 $ - $ 8,324 Mortgage banking derivatives - 10 - 10 Total $ - $ 8,334 $ - $ 8,334 1 Interest rate derivatives includes interest rate swaps, a rate cap and risk participation agreements. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Six Months Ended June 30, 2024 Securities available-for-sale States and Mortgage Asset-backed Political Servicing Securities Subdivisions Rights Beginning balance January 1, 2024 $ 2,270 $ 13,059 $ 10,344 Transfers out of Level 3 - - - Total gains or losses Included in earnings - (66) 88 Included in other comprehensive income (98) (390) - Purchases, issuances, sales, and settlements Purchases 547 - - Issuances - - 288 Settlements (52) (76) (232) Ending balance June 30, 2024 $ 2,667 $ 12,527 $ 10,488 Six Months Ended June 30, 2023 Securities available-for-sale Collateralized States and Mortgage Asset-backed Mortgage Political Servicing Securities Obligations Subdivisions Rights Beginning balance January 1, 2023 $ 16,740 $ 6,770 $ 12,501 $ 11,189 Transfers into Level 3 - - - - Transfers out of Level 3 (14,885) (6,764) - - Total gains or losses Included in earnings (11) - (66) 6,155 Included in other comprehensive income 206 (6) 642 - Purchases, issuances, sales, and settlements Purchases 406 - - - Issuances - - - 281 Settlements (521) - (74) (6,584) Ending balance June 30, 2023 $ 1,935 $ - $ 13,003 $ 11,041 The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as of June 30, 2024: 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 $ 12,527 Discounted Cash Flow Discount Rate 4.2 – 4.3% 4.3 % Liquidity Premium 0.5 – 0.5% 0.5 % Asset-backed securities $ 2,667 Discounted Cash Flow Discount Rate 5.6 – 5.6% 5.6 % Mortgage servicing rights $ 10,488 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 2.8 – 30.6% 6.7 % The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as December 31, 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 $ 13,059 Discounted Cash Flow Discount Rate 3.2 – 5.4% 4.7 % Liquidity Premium 0.5 – 0.5% 0.5 % Asset-backed securities $ 2,270 Discounted Cash Flow Discount Rate 5.6 – 5.6% 5.6 % Mortgage servicing rights $ 10,344 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 5.1 – 33.0% 6.6 % 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 June 30, 2024, and December 31, 2023, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: June 30, 2024 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 33,082 $ 33,082 Other real estate owned, net 2 - - 6,920 6,920 Total $ - $ - $ 40,002 $ 40,002 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 $38.5 million and a valuation allowance of $5.4 million resulting in a decrease of specific allocations within the allowance for credit losses on loans of $5.7 million for the six months ended June 30, 2024. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $6.9 million at June 30, 2024, which is made up of the outstanding balance of $7.0 million, net of a valuation allowance of $118,000 December 31, 2023 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 66,180 $ 66,180 Other real estate owned, net 2 - - 5,123 5,123 Total $ - $ - $ 71,303 $ 71,303 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 $77.3 million and a valuation allowance of $11.1 million resulting in a decrease of specific allocations within the allowance for credit losses on loans of $6.5 million for the year December 31, 2023. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $5.1 million at December 31, 2023, which is made up of the outstanding balance of $5.2 million, net of a valuation allowance of $118,000 . 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, and December 31, 2023, 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: June 30, 2024 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 54,888 $ 54,888 $ 54,888 $ - $ - Interest earning deposits with financial institutions 66,004 66,004 66,004 - - Securities available-for-sale 1,173,661 1,173,661 191,274 967,193 15,194 FHLBC and FRBC stock 32,005 32,005 - 32,005 - Loans held-for-sale 2,291 2,291 - 2,291 - Net loans 3,934,326 3,857,223 - - 3,857,223 Mortgage servicing rights 10,488 10,488 - - 10,488 Interest rate swap and rate cap agreements 6,051 6,051 - 6,051 - Interest rate lock commitments and forward contracts 64 64 - 64 - Interest receivable on securities and loans 26,086 26,086 - 26,086 - Financial liabilities: Noninterest bearing deposits $ 1,728,487 $ 1,728,487 $ 1,728,487 $ - $ - Interest bearing deposits 2,793,241 2,783,984 - 2,783,984 - Securities sold under repurchase agreements 46,542 46,542 - 46,542 - Other short-term borrowings 330,000 330,000 - 330,000 - Junior subordinated debentures 25,773 20,620 - 20,620 - Subordinated debentures 59,425 50,075 - 50,075 - Interest rate swap and rate cap agreements 7,827 7,827 - 7,827 - Interest payable on deposits and borrowings 3,483 3,483 - 3,483 - December 31, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 55,534 $ 55,534 $ 55,534 $ - $ - Interest earning deposits with financial institutions 44,611 44,611 44,611 - - Securities available-for-sale 1,192,829 1,192,829 169,574 1,007,926 15,329 FHLBC and FRBC stock 33,355 33,355 - 33,355 - Loans held-for-sale 1,322 1,322 - 1,322 - Net loans 3,998,689 3,876,381 - - 3,876,381 Mortgage servicing rights 10,344 10,344 - - 10,344 Interest rate swap and rate cap agreements 5,302 5,302 - 5,302 - Interest receivable on securities and loans 27,159 27,159 - 27,159 - Financial liabilities: Noninterest bearing deposits $ 1,834,891 $ 1,834,891 $ 1,834,891 $ - $ - Interest bearing deposits 2,735,855 2,726,223 - 2,726,223 - Securities sold under repurchase agreements 26,470 26,470 - 26,470 - Other short-term borrowings 405,000 405,000 - 405,000 - Junior subordinated debentures 25,773 20,361 - 20,361 - Subordinated debentures 59,382 47,982 - 47,982 - Interest rate swap and rate cap agreements 8,234 8,324 - 8,324 - Interest rate lock commitments and forward contracts 10 10 - 10 - Interest payable on deposits and borrowings 2,962 2,962 - 2,962 - |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2024 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | 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 as of June 30, 2024, and December 31, 2023, 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 June 30, 2024, and December 31, 2023, 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 $5.1 million will be reclassified as an increase to interest income and an additional $608,000 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 and rate cap agreements with commercial banking customers to facilitate their respective risk management strategies. The notional amounts of interest rate swaps with its loan customers as of June 30, 2024, and December 31, 2023 were $97.9 million and $104.8 million, respectively. The notional amounts of interest rate cap with its loan customers were $32.9 million as of June 30, 2024, and there were no interest rate caps at December 31, 2023. Those interest rate swaps and rate cap agreements 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 June 30, 2024, and December 31, 2023, the Company had $6.8 million and $7.3 million of cash collateral pledged with two correspondent financial institutions, respectively. The Company held $5.4 million and $4.1 million of cash pledged from one correspondent financial institution to support the interest rate swap activity during the periods presented, respectively. No investment securities were required to be pledged to any correspondent financial institution during 2024 through June 30, 2024, or during 2023. 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 June 30, 2024, and December 31, 2023 was $13.7 million and $8.4 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 Consolidated Balance Sheets as of June 30, 2024, and December 31, 2023. Fair Value of Derivative Instruments June 30, 2024 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 3,618 Other Liabilities 5,394 Total derivatives designated as hedging instruments 3,618 5,394 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers and rate cap 16 130,775 Other Assets 2,433 Other Liabilities 2,433 Interest rate lock commitments and forward contracts 45 13,687 Other Assets 64 Other Liabilities - Other contracts 4 39,021 Other Assets 44 Other Liabilities 8 Total derivatives not designated as hedging instruments 2,541 2,441 December 31, 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 2,576 Other Liabilities 5,598 Total derivatives designated as hedging instruments 2,576 5,598 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 17 104,777 Other Assets 2,726 Other Liabilities 2,726 Interest rate lock commitments and forward contracts 24 8,375 Other Assets (10) Other Liabilities - Other contracts 4 44,790 Other Assets 89 Other Liabilities - Total derivatives not designated as hedging instruments 2,805 2,726 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 $1.3 million as of June 30, 2024, and $5.3 million as of June 30, 2023. The amount of the loss reclassified from AOCI to net interest income on the income statement was $3.2 million for the six months ended June 30, 2024, and $2.4 million for the six months ended June 30, 2023. 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 June 30, 2024, and December 31, 2023. The following table is a summary of letter of credit commitments: June 30, 2024 December 31, 2023 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 229 $ 17,190 $ 17,419 $ 173 $ 16,621 $ 16,794 Performance standby 562 12,467 13,029 562 13,689 14,251 791 29,657 30,448 735 30,310 31,045 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 791 $ 29,724 $ 30,515 $ 735 $ 30,377 $ 31,112 Unused loan commitments: $ 158,385 $ 635,560 $ 793,945 $ 140,305 $ 694,960 $ 835,265 As of June 30, 2024, 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 2024, and based on that analysis under the CECL methodology, the Company determined credit losses related to unfunded commitments totaled $2.5 million. The resultant decrease in the ACL for unfunded commitments of $199,000 for the second quarter of 2024, compared to the prior quarter end, is primarily driven by adjustments to historical benchmark assumptions, such as the funding rates and the period used to forecast those rates within the ACL calculation. The Company will continue to assess the credit risk at least quarterly, and adjust the allowance for unfunded commitments, which is carried within other liabilities on our Consolidated Balance Sheets, as needed, with the appropriate offsetting entry to the provision for credit losses on our Consolidated Statements of Income. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 21,891 | $ 25,562 | $ 43,203 | $ 49,169 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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 |
Basis of Presentation and Cha_2
Basis of Presentation and Changes in Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2024-01 – Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards ASU 2024-02 – Codification Improvements – Amendments to Remove References to the Concepts Statements |
Subsequent Events | Subsequent Events On July 16, 2024, our Board of Directors declared a cash dividend of $0.05 per share of common stock payable on August 5, 2024, to stockholders of record as of July 26, 2024; dividends of $2.2 million were paid to stockholders on August 5, 2024. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 193,615 $ 146 $ (2,487) $ 191,274 U.S. government agencies 39,653 - (2,355) 37,298 U.S. government agencies mortgage-backed 109,490 - (12,618) 96,872 States and political subdivisions 232,373 470 (12,578) 220,265 Collateralized mortgage obligations 436,623 321 (50,889) 386,055 Asset-backed securities 67,634 6 (2,763) 64,877 Collateralized loan obligations 176,897 195 (72) 177,020 Total securities available-for-sale $ 1,256,285 $ 1,138 $ (83,762) $ 1,173,661 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2023 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 174,602 $ - $ (5,028) $ 169,574 U.S. government agencies 60,011 - (3,052) 56,959 U.S. government agencies mortgage-backed 118,492 - (12,122) 106,370 States and political subdivisions 236,072 1,325 (10,332) 227,065 Collateralized mortgage obligations 442,987 421 (50,864) 392,544 Asset-backed securities 71,616 42 (3,222) 68,436 Collateralized loan obligations 173,201 30 (1,350) 171,881 Total securities available-for-sale $ 1,276,981 $ 1,818 $ (85,970) $ 1,192,829 1 Excludes accrued interest receivable of $6.7 million and $6.6 million at June 30, 2024 and December 31, 2023, 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 $ 122,815 1.69 % $ 120,302 Due after one year through five years 127,580 3.63 125,243 Due after five years through ten years 58,374 2.77 53,383 Due after ten years 156,872 3.11 149,909 465,641 2.84 448,837 Mortgage-backed and collateralized mortgage obligations 546,113 2.52 482,927 Asset-backed securities 67,634 4.08 64,877 Collateralized loan obligations 176,897 6.98 177,020 Total securities available-for-sale $ 1,256,285 3.35 % $ 1,173,661 |
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 June 30, 2024 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 2 $ 12 $ 29,806 2 $ 2,475 $ 97,328 4 $ 2,487 $ 127,134 U.S. government agencies - - - 8 2,355 37,298 8 2,355 37,298 U.S. government agencies mortgage-backed - - - 128 12,618 96,872 128 12,618 96,872 States and political subdivisions 33 763 86,106 35 11,815 125,519 68 12,578 211,625 Collateralized mortgage obligations - - - 142 50,889 349,308 142 50,889 349,308 Asset-backed securities 2 10 5,064 18 2,753 59,306 20 2,763 64,370 Collateralized loan obligations 3 59 32,944 4 13 28,279 7 72 61,223 Total securities available-for-sale 40 $ 844 $ 153,920 337 $ 82,918 $ 793,910 377 $ 83,762 $ 947,830 Less than 12 months 12 months or more December 31, 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 - $ - $ - 4 $ 5,028 $ 169,574 4 $ 5,028 $ 169,574 U.S. government agencies - - - 9 3,052 56,959 9 3,052 56,959 U.S. government agencies mortgage-backed - - - 128 12,122 106,370 128 12,122 106,370 States and political subdivisions 12 137 27,974 25 10,195 106,138 37 10,332 134,112 Collateralized mortgage obligations 2 8 734 143 50,856 376,236 145 50,864 376,970 Asset-backed securities - - - 19 3,222 63,941 19 3,222 63,941 Collateralized loan obligations - - - 25 1,350 150,902 25 1,350 150,902 Total securities available-for-sale 14 $ 145 $ 28,708 353 $ 85,825 $ 1,030,120 367 $ 85,970 $ 1,058,828 |
Schedule of proceeds from sale and gross realized gains and losses on sale of securities | Three Months Ended Six Months Ended June 30, June 30, Securities available-for-sale 2024 2023 2024 2023 Proceeds from sales of securities $ - $ 73,996 $ 5,331 $ 140,166 Gross realized gains on securities $ - $ - $ 1 $ - Gross realized losses on securities - (1,547) - (3,222) Net realized (losses) gains $ - $ (1,547) $ 1 $ (3,222) Income tax benefit on net realized losses $ - $ 434 $ - $ 905 Effective tax rate applied N/M % 28.1 % N/M % 28.1 % N/M – Not meaningful. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Allowance for Credit Losses on Loans | |
Schedule of major classifications of loans | June 30, 2024 December 31, 2023 Commercial $ 809,443 $ 841,697 Leases 452,957 398,223 Commercial real estate – investor 1,014,345 1,034,424 Commercial real estate – owner occupied 745,938 796,538 Construction 185,634 165,380 Residential real estate – investor 50,371 52,595 Residential real estate – owner occupied 218,974 226,248 Multifamily 388,743 401,696 HELOC 99,037 103,237 Other 1 11,153 22,915 Total loans 3,976,595 4,042,953 Allowance for credit losses on loans (42,269) (44,264) Net loans 2 $ 3,934,326 $ 3,998,689 1 The “Other” segment includes consumer loans and overdrafts in this table and in subsequent tables within Note 3 – Loans and Allowance for Credit Losses on Loans. 2 Excludes accrued interest receivable of $19.4 million and $20.5 million at June 30, 2024, and December 31, 2023, 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 June 30, 2024 Commercial $ 6,382 $ 327 $ 3 $ 22 $ 6,728 Leases 2,959 (900) 81 - 1,978 Commercial real estate – investor 16,270 6,132 4,580 20 17,842 Commercial real estate – owner occupied 10,992 (2,650) 1,281 119 7,180 Construction 1,097 923 - - 2,020 Residential real estate – investor 636 (30) - 3 609 Residential real estate – owner occupied 1,660 (51) - 9 1,618 Multifamily 2,593 211 - - 2,804 HELOC 1,508 (40) - 15 1,483 Other 16 28 66 29 7 Total $ 44,113 $ 3,950 $ 6,011 $ 217 $ 42,269 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Six months ended June 30, 2024 Commercial $ 3,998 $ 2,653 $ 18 $ 95 $ 6,728 Leases 2,952 (933) 81 40 1,978 Commercial real estate – investor 17,105 5,230 4,596 103 17,842 Commercial real estate – owner occupied 12,280 (70) 5,168 138 7,180 Construction 1,038 982 - - 2,020 Residential real estate – investor 669 (65) - 5 609 Residential real estate – owner occupied 1,821 (220) - 17 1,618 Multifamily 2,728 76 - - 2,804 HELOC 1,656 (205) - 32 1,483 Other 17 46 136 80 7 Total $ 44,264 $ 7,494 $ 9,999 $ 510 $ 42,269 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2023 Commercial $ 11,511 $ 319 $ 380 $ 82 $ 11,532 Leases 2,766 (83) - 7 2,690 Commercial real estate – investor 15,260 4,822 71 20 20,031 Commercial real estate – owner occupied 15,576 (2,816) 201 3 12,562 Construction 1,045 134 - - 1,179 Residential real estate – investor 746 (8) - 5 743 Residential real estate – owner occupied 1,722 110 - 36 1,868 Multifamily 2,665 72 - - 2,737 HELOC 1,788 (118) - 24 1,694 Other 313 (5) 81 51 278 Total $ 53,392 $ 2,427 $ 733 $ 228 $ 55,314 Provision for Allowance for credit losses Beginning (Release of) Ending Six months ended June 30, 2023 Balance Credit Losses Charge-offs Recoveries Balance Commercial $ 11,968 $ (262) $ 407 $ 233 $ 11,532 Leases 2,865 691 882 16 2,690 Commercial real estate – investor 10,674 9,391 71 37 20,031 Commercial real estate – owner occupied 15,001 (2,243) 201 5 12,562 Construction 1,546 (367) - - 1,179 Residential real estate – investor 768 (49) - 24 743 Residential real estate – owner occupied 2,046 (224) - 46 1,868 Multifamily 2,453 284 - - 2,737 HELOC 1,806 (165) - 53 1,694 Other 353 23 194 96 278 Total $ 49,480 $ 7,079 $ 1,755 $ 510 $ 55,314 |
Schedule of collateral dependent loans and related loan allowances. | Accounts ACL June 30, 2024 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 825 $ 508 $ 1,227 $ 2,560 $ 1,229 Leases - - - - - - Commercial real estate – investor 9,955 - - - 9,955 3,482 Commercial real estate – owner occupied 17,207 - - - 17,207 - Construction 5,739 - - - 5,739 732 Residential real estate – investor 523 - - - 523 - Residential real estate – owner occupied 1,640 - - - 1,640 - Multifamily 839 - - - 839 - HELOC 62 - - - 62 - Total $ 35,965 $ 825 $ 508 $ 1,227 $ 38,525 $ 5,443 Accounts ACL December 31, 2023 Real Estate Receivable Equipment Other Total Allocation Commercial $ 837 $ 797 $ - $ - $ 1,634 $ 2 Leases - - 321 - 321 320 Commercial real estate – investor 15,735 - - - 15,735 3,656 Commercial real estate – owner occupied 34,894 - - - 34,894 3,900 Construction 7,162 - - - 7,162 - Residential real estate – investor 422 - - - 422 - Residential real estate – owner occupied 1,506 - - - 1,506 - Multifamily 1,402 - - - 1,402 - HELOC 39 - - - 39 - Total $ 61,997 $ 797 $ 321 $ - $ 63,115 $ 7,878 |
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 June 30, 2024 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 914 $ 3,127 $ 842 $ 4,883 $ 804,560 $ 809,443 $ - Leases 479 451 108 1,038 451,919 452,957 - Commercial real estate – investor 8,150 710 838 9,698 1,004,647 1,014,345 - Commercial real estate – owner occupied 2,103 108 20,733 22,944 722,994 745,938 4,835 Construction - - 5,740 5,740 179,894 185,634 - Residential real estate – investor - - 621 621 49,750 50,371 - Residential real estate – owner occupied 390 70 1,870 2,330 216,644 218,974 - Multifamily 235 - 1,054 1,289 387,454 388,743 - HELOC 371 63 309 743 98,294 99,037 74 Other - - - - 11,153 11,153 - Total $ 12,642 $ 4,529 $ 32,115 $ 49,286 $ 3,927,309 $ 3,976,595 $ 4,909 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2023 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 982 $ - $ 1,228 $ 2,210 $ 839,487 $ 841,697 $ 1,155 Leases 599 - 347 946 397,277 398,223 - Commercial real estate – investor 1,209 - 6,087 7,296 1,027,128 1,034,424 - Commercial real estate – owner occupied 2,103 3,726 15,645 21,474 775,064 796,538 - Construction 2,540 307 7,161 10,008 155,372 165,380 - Residential real estate – investor 540 579 168 1,287 51,308 52,595 - Residential real estate – owner occupied 553 125 1,944 2,622 223,626 226,248 - Multifamily 1,085 - 233 1,318 400,378 401,696 - HELOC 565 1,396 269 2,230 101,007 103,237 41 Other - 1 - 1 22,914 22,915 - Total $ 10,176 $ 6,134 $ 33,082 $ 49,392 $ 3,993,561 $ 4,042,953 $ 1,196 |
Schedule of loans on nonaccrual for which there was no related allowance | Nonaccrual loan detail June 30, 2024 With no ACL December 31, 2023 With no ACL Commercial $ 2,654 $ 1,427 $ 870 $ 870 Leases 284 284 639 318 Commercial real estate – investor 9,954 2,481 16,572 8,926 Commercial real estate – owner occupied 17,256 17,256 34,946 8,429 Construction 5,740 5,740 7,162 7,162 Residential real estate – investor 1,280 1,280 1,331 1,331 Residential real estate – owner occupied 2,599 2,599 3,078 3,078 Multifamily 1,395 1,395 1,775 1,775 HELOC 795 795 1,210 1,210 Other - - - - Total $ 41,957 $ 33,257 $ 67,583 $ 33,099 |
Schedule of credit quality indicators by class of loans | Credit quality indicators by loan segment and loan origination date at June 30, 2024, were as follows: 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 115,506 $ 264,234 $ 111,600 $ 25,429 $ 9,219 $ 18,900 $ 221,006 $ $ 765,894 Special Mention - 227 2,043 2,771 50 - 19,316 - 24,407 Substandard - 20 6,227 144 - - 12,751 - 19,142 Total commercial 115,506 264,481 119,870 28,344 9,269 18,900 253,073 - 809,443 Leases Pass 131,338 186,396 $ 87,390 31,893 10,335 3,290 - - 450,642 Special Mention - 300 775 947 - 9 - - 2,031 Substandard - - 284 - - - - - 284 Total leases 131,338 186,696 88,449 32,840 10,335 3,299 - - 452,957 Commercial real estate – investor Pass 55,037 190,938 334,504 188,015 93,138 104,176 7,398 - 973,206 Special Mention - - - 4,200 - - - - 4,200 Substandard - 1,645 - 837 5,272 16,936 12,249 - 36,939 Total commercial real estate – investor 55,037 192,583 334,504 193,052 98,410 121,112 19,647 - 1,014,345 Commercial real estate – owner occupied Pass 17,675 131,499 150,692 159,537 86,192 113,781 14,700 - 674,076 Special Mention - - 18,605 2,844 - 2,026 - - 23,475 Substandard - - 13,560 4,835 12,925 17,067 - - 48,387 Total commercial real estate – owner occupied 17,675 131,499 182,857 167,216 99,117 132,874 14,700 - 745,938 Construction Pass 15,841 44,518 90,851 26,377 91 1,614 254 - 179,546 Special Mention - - 348 - - - - - 348 Substandard - - 5,740 - - - - - 5,740 Total construction 15,841 44,518 96,939 26,377 91 1,614 254 - 185,634 Residential real estate – investor Pass 1,321 3,908 14,032 7,851 6,062 13,199 2,089 - 48,462 Special Mention - - - 566 - - - - 566 Substandard - - 378 63 - 902 - - 1,343 Total residential real estate – investor 1,321 3,908 14,410 8,480 6,062 14,101 2,089 - 50,371 Residential real estate – owner occupied Pass 9,551 31,099 36,751 38,750 23,967 75,320 802 - 216,240 Special Mention - - - - - - - - - Substandard - - - - 101 2,633 - - 2,734 Total residential real estate – owner occupied 9,551 31,099 36,751 38,750 24,068 77,953 802 - 218,974 Multifamily Pass 16,590 76,747 70,903 115,700 39,835 51,594 574 - 371,943 Special Mention - - - 9,990 - - - - 9,990 Substandard - - 1,135 3,337 514 1,824 - - 6,810 Total multifamily 16,590 76,747 72,038 129,027 40,349 53,418 574 - 388,743 HELOC Pass 1,471 2,629 2,421 430 1,469 4,167 85,425 - 98,012 Special Mention - - - - - - - - - Substandard - - - - 40 287 698 - 1,025 Total HELOC 1,471 2,629 2,421 430 1,509 4,454 86,123 - 99,037 Other Pass 2,800 1,953 1,401 884 96 129 3,889 - 11,152 Special Mention - - - - - - - - - Substandard - - - - - - 1 - 1 Total other 2,800 1,953 1,401 884 96 129 3,890 - 11,153 Total loans Pass 367,130 933,921 900,545 594,866 270,404 386,170 336,137 - 3,789,173 Special Mention - 527 21,771 21,318 50 2,035 19,316 - 65,017 Substandard - 1,665 27,324 9,216 18,852 39,649 25,699 - 122,405 Total loans $ 367,130 $ 936,113 $ 949,640 $ 625,400 $ 289,306 $ 427,854 $ 381,152 $ - $ 3,976,595 Credit quality indicators by loan segment and loan origination date at December 31, 2023, were as follows: 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial Pass $ 318,569 $ 136,668 $ 35,901 $ 11,983 $ 18,390 $ 3,426 $ 298,931 $ 1,408 $ 825,276 Special Mention - 2,737 707 171 - - 4,392 - 8,007 Substandard - 2,099 146 - 199 - 5,970 - 8,414 Total commercial 318,569 141,504 36,754 12,154 18,589 3,426 309,293 1,408 841,697 Leases Pass 219,163 113,074 $ 42,275 14,663 6,975 1,255 - - 397,405 Special Mention - - - - - - - - - Substandard - 407 203 - 208 - - - 818 Total leases 219,163 113,481 42,478 14,663 7,183 1,255 - - 398,223 Commercial real estate – investor Pass 159,654 367,512 218,084 108,384 54,322 63,281 8,122 - 979,359 Special Mention - - 11,267 - - - - - 11,267 Substandard - - 838 5,327 15,658 9,648 12,327 - 43,798 Total commercial real estate – investor 159,654 367,512 230,189 113,711 69,980 72,929 20,449 - 1,034,424 Commercial real estate – owner occupied Pass 124,059 134,383 177,553 103,109 42,839 91,062 33,243 - 706,248 Special Mention 1,650 17,415 9,585 3,128 218 3,681 - - 35,677 Substandard - 14,630 18,817 4,571 14,809 1,786 - - 54,613 Total commercial real estate – owner occupied 125,709 166,428 205,955 110,808 57,866 96,529 33,243 - 796,538 Construction Pass 42,808 66,513 32,942 100 1,593 1,083 3,186 - 148,225 Special Mention - - - - - - - - - Substandard - - - 9,993 - 7,162 - - 17,155 Total construction 42,808 66,513 32,942 10,093 1,593 8,245 3,186 - 165,380 Residential real estate – investor Pass 5,062 14,434 9,027 6,227 6,508 8,469 1,471 - 51,198 Special Mention - - 66 - - - - - 66 Substandard - 390 - - 408 533 - - 1,331 Total residential real estate – investor 5,062 14,824 9,093 6,227 6,916 9,002 1,471 - 52,595 Residential real estate – owner occupied Pass 32,574 41,528 40,335 25,322 14,233 68,277 763 - 223,032 Special Mention - - - - - - - - - Substandard - - - 191 685 2,340 - - 3,216 Total residential real estate – owner occupied 32,574 41,528 40,335 25,513 14,918 70,617 763 - 226,248 Multifamily Pass 55,310 79,060 123,834 72,539 12,231 40,825 562 - 384,361 Special Mention - 168 13,425 322 1,645 - - - 15,560 Substandard - 1,009 - - - 766 - - 1,775 Total multifamily 55,310 80,237 137,259 72,861 13,876 41,591 562 - 401,696 HELOC Pass 2,735 2,679 490 1,757 1,756 2,995 89,161 - 101,573 Special Mention - - - - - - - - - Substandard - 25 1 41 24 184 1,389 - 1,664 Total HELOC 2,735 2,704 491 1,798 1,780 3,179 90,550 - 103,237 Other Pass 4,060 2,278 1,569 153 85 73 14,697 - 22,915 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total other 4,060 2,278 1,569 153 85 73 14,697 - 22,915 Total loans Pass 963,994 958,129 682,010 344,237 158,932 280,746 450,136 1,408 3,839,592 Special Mention 1,650 20,320 35,050 3,621 1,863 3,681 4,392 - 70,577 Substandard - 18,560 20,005 20,123 31,991 22,419 19,686 - 132,784 Total loans $ 965,644 $ 997,009 $ 737,065 $ 367,981 $ 192,786 $ 306,846 $ 474,214 $ 1,408 $ 4,042,953 |
Schedule of gross charge-offs | Six months ended June 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial $ - - - - - 18 $ - $ - $ 18 Leases - - 28 53 - - - - 81 Commercial real estate – investor - - 4,128 452 16 - - - 4,596 Commercial real estate – owner occupied - - 5,135 - 33 - - 5,168 Other - - - - - 136 - - 136 Total $ - $ - $ 4,156 $ 5,640 $ 16 $ 187 - - $ 9,999 Six months ended June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted To Term Loans Total Commercial $ - $ - $ - $ 364 $ - $ 43 $ - $ - $ 407 Leases - 870 - - 12 - - - 882 Commercial real estate – investor - - 71 - - - - - 71 Commercial real estate – owner occupied - 22 179 - - - - - 201 Other - 3 24 8 - 159 - - 194 Total $ - $ 895 $ 274 $ 372 $ 12 $ 202 - - $ 1,755 |
Schedule of class of financing receivable | June 30, 2024 Term Extension Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction Combination - Term Extension and Interest Rate Modification Combination - Term Extension and Payment Modification (1) Total Loans Modified % of Total Loan Segment Modified to Total Loan Segment Commercial $ 247 $ - $ - $ - $ 247 0.0% Commercial real estate – owner occupied 12,156 491 3,269 212 16,128 2.2% Total $ 12,403 $ 491 $ 3,269 $ 212 $ 16,375 0.4% June 30, 2023 Term Extension Combination - Term Extension and Interest Rate Modification Combination - Term Extension and Payment Modification 1 Total Loans Modified % of Total Loan Segment Modified to Total Loan Segment Commercial $ 859 $ 979 $ - $ 1,838 0.2% Commercial real estate – investor 12,664 - 1,774 14,438 1.3% Commercial real estate – owner occupied 16,318 - - 16,318 2.0% HELOC 60 - - 60 0.1% Total $ 29,901 $ 979 $ 1,774 $ 32,654 8.0% 1 Payment modifications are either contractual delays in payment or a modification of the payment amount . June 30, 2024 30-59 days past due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Modified Commercial $ - $ - $ - $ - $ 247 $ 247 Commercial real estate – owner occupied - - - - 16,128 16,128 Total $ - $ - $ - $ - $ 16,375 $ 16,375 June 30, 2023 30-59 days past due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Modified Commercial $ - $ - $ - $ - $ 1,838 $ 1,838 Commercial real estate – investor - - 1,774 1,774 12,664 14,438 Commercial real estate – owner occupied - - - - 16,318 16,318 HELOC - - - - 60 60 Total $ - $ - $ 1,774 $ 1,774 $ 30,880 $ 32,654 June 30, 2024 Weighted-Average Term Extension (In Months) Weighted-Average Interest Rate Change Weighted-Average Delay of Payment (In Months) Commercial 4.00 - % - Commercial real estate – owner occupied 5.12 0.33 - Total 5.10 0.33 % - June 30, 2023 Weighted-Average Term Extension (In Months) Weighted-Average Interest Rate Change Weighted-Average Delay of Payment (In Months) Commercial 4.90 5.00 % - Commercial real estate – investor 11.50 - 7.00 Commercial real estate – owner occupied 12.00 - - HELOC 24.00 - - Total 11.40 5.00 % 7.00 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Real Estate Owned | |
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve | Three Months Ended Six Months Ended June 30, June 30, Other real estate owned 2024 2023 2024 2023 Balance at beginning of period $ 5,123 $ 1,255 $ 5,123 $ 1,561 Property additions, net of acquisition adjustments 3,388 185 3,388 476 Less: Proceeds from property disposals, net of participation purchase and gains/losses 1,591 679 1,591 1,007 Period valuation write-down - - - 269 Balance at end of period $ 6,920 $ 761 $ 6,920 $ 761 |
Schedule of activity in valuation allowance | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Balance at beginning of period $ 118 $ 853 $ 118 $ 856 Provision for unrealized losses - - - 269 Reductions taken on sales - (739) - (1,011) Balance at end of period $ 118 $ 114 $ 118 $ 114 |
Schedule of expenses related to foreclosed assets, net of lease revenue | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Gain on sales, net $ (259) $ (186) $ (259) $ (158) Provision for unrealized losses - - - 269 Operating expenses 239 92 352 101 Less: Lease revenue 67 4 134 4 Net OREO expense $ (87) $ (98) $ (41) $ 208 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposits | |
Schedule of major classifications of deposits | June 30, 2024 December 31, 2023 Noninterest bearing demand $ 1,728,487 $ 1,834,891 Savings 908,826 971,334 NOW accounts 557,469 565,375 Money market accounts 695,131 671,240 Certificates of deposit of less than $100,000 304,195 266,035 Certificates of deposit of $100,000 through $250,000 223,137 180,289 Certificates of deposit of more than $250,000 104,483 81,582 Total deposits $ 4,521,728 $ 4,570,746 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Borrowings | |
Summary of borrowings and junior subordinated debentures | June 30, 2024 December 31, 2023 Securities sold under repurchase agreements $ 46,542 $ 26,470 Other short-term borrowings 330,000 405,000 Junior subordinated debentures 1 25,773 25,773 Subordinated debentures 59,425 59,382 Total borrowings $ 461,740 $ 516,625 1 See Note 7: Junior Subordinated Debentures. |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Compensation Plans | |
Summary of changes in nonvested shares of restricted share rights | June 30, 2024 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 709,237 $ 14.26 Granted 339,235 13.44 Vested (209,969) 11.38 Forfeited (8,954) 14.09 Unvested at June 30 829,549 $ 14.65 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share | |
Schedule of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic earnings per share: Weighted-average common shares outstanding 44,846,848 44,665,127 44,802,704 44,642,250 Net income $ 21,891 $ 25,562 $ 43,203 $ 49,169 Basic earnings per share $ 0.48 $ 0.57 $ 0.96 $ 1.10 Diluted earnings per share: Weighted-average common shares outstanding 44,846,848 44,665,127 44,802,704 44,642,250 Dilutive effect of unvested restricted awards 1 835,391 759,291 800,358 728,556 Diluted average common shares outstanding 45,682,239 45,424,418 45,603,062 45,370,806 Net Income $ 21,891 $ 25,562 $ 43,203 $ 49,169 Diluted earnings per share $ 0.48 $ 0.56 $ 0.95 $ 1.08 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters (T
Regulatory & Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 Common equity tier 1 capital to risk weighted assets Consolidated $ 587,746 12.41 % $ 331,525 7.00 % N/A N/A Old Second Bank 638,977 13.50 331,321 7.00 $ 307,656 6.50 % Total capital to risk weighted assets Consolidated 716,185 15.12 497,351 10.50 N/A N/A Old Second Bank 682,416 14.42 496,905 10.50 473,243 10.00 Tier 1 capital to risk weighted assets Consolidated 612,746 12.94 402,499 8.50 N/A N/A Old Second Bank 638,977 13.50 402,319 8.50 378,653 8.00 Tier 1 capital to average assets Consolidated 612,746 10.96 223,630 4.00 N/A N/A Old Second Bank 638,977 11.43 223,614 4.00 279,517 5.00 December 31, 2023 Common equity tier 1 capital to risk weighted assets Consolidated $ 547,721 11.37 % $ 337,207 7.00 % N/A N/A Old Second Bank 592,413 12.32 336,598 7.00 $ 312,556 6.50 % Total capital to risk weighted assets Consolidated 677,076 14.06 505,640 10.50 N/A N/A Old Second Bank 636,768 13.24 504,990 10.50 480,943 10.00 Tier 1 capital to risk weighted assets Consolidated 572,721 11.89 409,430 8.50 N/A N/A Old Second Bank 592,413 12.32 408,727 8.50 384,684 8.00 Tier 1 capital to average assets Consolidated 572,721 10.06 227,722 4.00 N/A N/A Old Second Bank 592,413 10.41 227,632 4.00 284,540 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) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Measurements | |
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | June 30, 2024 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 191,274 $ - $ - $ 191,274 U.S. government agencies - 37,298 - 37,298 U.S. government agencies mortgage-backed - 96,872 - 96,872 States and political subdivisions - 207,738 12,527 220,265 Collateralized mortgage obligations - 386,055 - 386,055 Asset-backed securities - 62,210 2,667 64,877 Collateralized loan obligations - 177,020 - 177,020 Loans held-for-sale - 2,291 - 2,291 Mortgage servicing rights - - 10,488 10,488 Interest rate derivatives 1 - 6,095 - 6,095 Mortgage banking derivatives - 64 - 64 Total $ 191,274 $ 975,643 $ 25,682 $ 1,192,599 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 7,835 $ - $ 7,835 Total $ - $ 7,835 $ - $ 7,835 1 Interest rate derivatives includes interest rate swaps, a rate cap and risk participation agreements. December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 169,574 $ - $ - $ 169,574 U.S. government agencies - 56,959 - 56,959 U.S. government agencies mortgage-backed - 106,370 - 106,370 States and political subdivisions - 214,006 13,059 227,065 Collateralized mortgage obligations - 392,544 - 392,544 Asset-backed securities - 66,166 2,270 68,436 Collateralized loan obligations - 171,881 - 171,881 Loans held-for-sale - 1,322 - 1,322 Mortgage servicing rights - - 10,344 10,344 Interest rate derivatives 1 - 5,391 - 5,391 Total $ 169,574 $ 1,014,639 $ 25,673 $ 1,209,886 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 8,324 $ - $ 8,324 Mortgage banking derivatives - 10 - 10 Total $ - $ 8,334 $ - $ 8,334 1 Interest rate derivatives includes interest rate swaps, a rate cap and risk participation agreements. |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Six Months Ended June 30, 2024 Securities available-for-sale States and Mortgage Asset-backed Political Servicing Securities Subdivisions Rights Beginning balance January 1, 2024 $ 2,270 $ 13,059 $ 10,344 Transfers out of Level 3 - - - Total gains or losses Included in earnings - (66) 88 Included in other comprehensive income (98) (390) - Purchases, issuances, sales, and settlements Purchases 547 - - Issuances - - 288 Settlements (52) (76) (232) Ending balance June 30, 2024 $ 2,667 $ 12,527 $ 10,488 Six Months Ended June 30, 2023 Securities available-for-sale Collateralized States and Mortgage Asset-backed Mortgage Political Servicing Securities Obligations Subdivisions Rights Beginning balance January 1, 2023 $ 16,740 $ 6,770 $ 12,501 $ 11,189 Transfers into Level 3 - - - - Transfers out of Level 3 (14,885) (6,764) - - Total gains or losses Included in earnings (11) - (66) 6,155 Included in other comprehensive income 206 (6) 642 - Purchases, issuances, sales, and settlements Purchases 406 - - - Issuances - - - 281 Settlements (521) - (74) (6,584) Ending balance June 30, 2023 $ 1,935 $ - $ 13,003 $ 11,041 |
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 June 30, 2024: 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 $ 12,527 Discounted Cash Flow Discount Rate 4.2 – 4.3% 4.3 % Liquidity Premium 0.5 – 0.5% 0.5 % Asset-backed securities $ 2,667 Discounted Cash Flow Discount Rate 5.6 – 5.6% 5.6 % Mortgage servicing rights $ 10,488 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 2.8 – 30.6% 6.7 % The following table and commentary present quantitative and qualitative information about Level 3 fair value measurements as December 31, 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 $ 13,059 Discounted Cash Flow Discount Rate 3.2 – 5.4% 4.7 % Liquidity Premium 0.5 – 0.5% 0.5 % Asset-backed securities $ 2,270 Discounted Cash Flow Discount Rate 5.6 – 5.6% 5.6 % Mortgage servicing rights $ 10,344 Discounted Cash Flow Discount Rate 9.0 – 11.0% 9.0 % Prepayment Speed 5.1 – 33.0% 6.6 % |
Schedule of assets measured at fair value on a nonrecurring basis | June 30, 2024 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 33,082 $ 33,082 Other real estate owned, net 2 - - 6,920 6,920 Total $ - $ - $ 40,002 $ 40,002 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 $38.5 million and a valuation allowance of $5.4 million resulting in a decrease of specific allocations within the allowance for credit losses on loans of $5.7 million for the six months ended June 30, 2024. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $6.9 million at June 30, 2024, which is made up of the outstanding balance of $7.0 million, net of a valuation allowance of $118,000 December 31, 2023 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 66,180 $ 66,180 Other real estate owned, net 2 - - 5,123 5,123 Total $ - $ - $ 71,303 $ 71,303 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 $77.3 million and a valuation allowance of $11.1 million resulting in a decrease of specific allocations within the allowance for credit losses on loans of $6.5 million for the year December 31, 2023. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $5.1 million at December 31, 2023, which is made up of the outstanding balance of $5.2 million, net of a valuation allowance of $118,000 . |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Values of Financial Instruments | |
Schedule of carrying amount and estimated fair values of financial instruments | June 30, 2024 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 54,888 $ 54,888 $ 54,888 $ - $ - Interest earning deposits with financial institutions 66,004 66,004 66,004 - - Securities available-for-sale 1,173,661 1,173,661 191,274 967,193 15,194 FHLBC and FRBC stock 32,005 32,005 - 32,005 - Loans held-for-sale 2,291 2,291 - 2,291 - Net loans 3,934,326 3,857,223 - - 3,857,223 Mortgage servicing rights 10,488 10,488 - - 10,488 Interest rate swap and rate cap agreements 6,051 6,051 - 6,051 - Interest rate lock commitments and forward contracts 64 64 - 64 - Interest receivable on securities and loans 26,086 26,086 - 26,086 - Financial liabilities: Noninterest bearing deposits $ 1,728,487 $ 1,728,487 $ 1,728,487 $ - $ - Interest bearing deposits 2,793,241 2,783,984 - 2,783,984 - Securities sold under repurchase agreements 46,542 46,542 - 46,542 - Other short-term borrowings 330,000 330,000 - 330,000 - Junior subordinated debentures 25,773 20,620 - 20,620 - Subordinated debentures 59,425 50,075 - 50,075 - Interest rate swap and rate cap agreements 7,827 7,827 - 7,827 - Interest payable on deposits and borrowings 3,483 3,483 - 3,483 - December 31, 2023 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 55,534 $ 55,534 $ 55,534 $ - $ - Interest earning deposits with financial institutions 44,611 44,611 44,611 - - Securities available-for-sale 1,192,829 1,192,829 169,574 1,007,926 15,329 FHLBC and FRBC stock 33,355 33,355 - 33,355 - Loans held-for-sale 1,322 1,322 - 1,322 - Net loans 3,998,689 3,876,381 - - 3,876,381 Mortgage servicing rights 10,344 10,344 - - 10,344 Interest rate swap and rate cap agreements 5,302 5,302 - 5,302 - Interest receivable on securities and loans 27,159 27,159 - 27,159 - Financial liabilities: Noninterest bearing deposits $ 1,834,891 $ 1,834,891 $ 1,834,891 $ - $ - Interest bearing deposits 2,735,855 2,726,223 - 2,726,223 - Securities sold under repurchase agreements 26,470 26,470 - 26,470 - Other short-term borrowings 405,000 405,000 - 405,000 - Junior subordinated debentures 25,773 20,361 - 20,361 - Subordinated debentures 59,382 47,982 - 47,982 - Interest rate swap and rate cap agreements 8,234 8,324 - 8,324 - Interest rate lock commitments and forward contracts 10 10 - 10 - Interest payable on deposits and borrowings 2,962 2,962 - 2,962 - |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 | June 30, 2024 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 3,618 Other Liabilities 5,394 Total derivatives designated as hedging instruments 3,618 5,394 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers and rate cap 16 130,775 Other Assets 2,433 Other Liabilities 2,433 Interest rate lock commitments and forward contracts 45 13,687 Other Assets 64 Other Liabilities - Other contracts 4 39,021 Other Assets 44 Other Liabilities 8 Total derivatives not designated as hedging instruments 2,541 2,441 December 31, 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 2,576 Other Liabilities 5,598 Total derivatives designated as hedging instruments 2,576 5,598 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 17 104,777 Other Assets 2,726 Other Liabilities 2,726 Interest rate lock commitments and forward contracts 24 8,375 Other Assets (10) Other Liabilities - Other contracts 4 44,790 Other Assets 89 Other Liabilities - Total derivatives not designated as hedging instruments 2,805 2,726 |
Schedule of financial instrument commitments | June 30, 2024 December 31, 2023 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 229 $ 17,190 $ 17,419 $ 173 $ 16,621 $ 16,794 Performance standby 562 12,467 13,029 562 13,689 14,251 791 29,657 30,448 735 30,310 31,045 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 791 $ 29,724 $ 30,515 $ 735 $ 30,377 $ 31,112 Unused loan commitments: $ 158,385 $ 635,560 $ 793,945 $ 140,305 $ 694,960 $ 835,265 |
Basis of Presentation and Cha_3
Basis of Presentation and Changes in Significant Accounting Policies (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Aug. 05, 2024 | Jul. 16, 2024 |
Cash dividend declared (per share) | $ 0.05 | |
Dividends paid | $ 2.2 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) item | Dec. 31, 2023 USD ($) | |
Securities Available-for-Sale | ||
Amortized Cost | $ 1,256,285 | $ 1,276,981 |
Gross Unrealized Gains | 1,138 | 1,818 |
Gross Unrealized Losses | (83,762) | (85,970) |
Securities available-for-sale | 1,173,661 | 1,192,829 |
Accrued interest receivable | 6,700 | 6,600 |
FHLB and FRB Stock | ||
FHLBC stock | 17,100 | 18,500 |
FRBC stock | 14,900 | 14,900 |
Securities pledged to secure deposits and for other purposes | 762,200 | 810,200 |
Other disclosures | ||
Securities available-for-sale | $ 1,173,661 | 1,192,829 |
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 | $ 193,615 | 174,602 |
Gross Unrealized Gains | 146 | |
Gross Unrealized Losses | (2,487) | (5,028) |
Securities available-for-sale | 191,274 | 169,574 |
Other disclosures | ||
Securities available-for-sale | 191,274 | 169,574 |
U.S. government agencies | ||
Securities Available-for-Sale | ||
Amortized Cost | 39,653 | 60,011 |
Gross Unrealized Losses | (2,355) | (3,052) |
Securities available-for-sale | 37,298 | 56,959 |
Other disclosures | ||
Securities available-for-sale | 37,298 | 56,959 |
U.S. government agencies mortgage-backed | ||
Securities Available-for-Sale | ||
Amortized Cost | 109,490 | 118,492 |
Gross Unrealized Losses | (12,618) | (12,122) |
Securities available-for-sale | 96,872 | 106,370 |
Other disclosures | ||
Securities available-for-sale | 96,872 | 106,370 |
States and political subdivisions | ||
Securities Available-for-Sale | ||
Amortized Cost | 232,373 | 236,072 |
Gross Unrealized Gains | 470 | 1,325 |
Gross Unrealized Losses | (12,578) | (10,332) |
Securities available-for-sale | 220,265 | 227,065 |
Other disclosures | ||
Securities available-for-sale | 220,265 | 227,065 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 436,623 | 442,987 |
Gross Unrealized Gains | 321 | 421 |
Gross Unrealized Losses | (50,889) | (50,864) |
Securities available-for-sale | 386,055 | 392,544 |
Other disclosures | ||
Securities available-for-sale | 386,055 | 392,544 |
Asset-backed Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 67,634 | 71,616 |
Gross Unrealized Gains | 6 | 42 |
Gross Unrealized Losses | (2,763) | (3,222) |
Securities available-for-sale | 64,877 | 68,436 |
Other disclosures | ||
Securities available-for-sale | 64,877 | 68,436 |
Collateralized loan obligations. | ||
Securities Available-for-Sale | ||
Amortized Cost | 176,897 | 173,201 |
Gross Unrealized Gains | 195 | 30 |
Gross Unrealized Losses | (72) | (1,350) |
Securities available-for-sale | 177,020 | 171,881 |
Other disclosures | ||
Securities available-for-sale | $ 177,020 | $ 171,881 |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 122,815 | |
Due after one year through five years | 127,580 | |
Due after five years through ten years | 58,374 | |
Due after ten years | 156,872 | |
Debt securities excluding securities not due at a single maturity date | 465,641 | |
Total | $ 1,256,285 | $ 1,276,981 |
Securities Available-for-Sale, Weighted Average Yield | ||
Due in one year or less (as a percent) | 1.69% | |
Due after one year through five years (as a percent) | 3.63% | |
Due after five years through ten years (as a percent) | 2.77% | |
Due after ten years (as a percent) | 3.11% | |
Debt securities (as a percent) | 2.84% | |
Total (as a percent) | 3.35% | |
Securities Available-for-Sale, Fair Value | ||
Due in one year or less | $ 120,302 | |
Due after one year through five years | 125,243 | |
Due after five years through ten years | 53,383 | |
Due after ten years | 149,909 | |
Debt securities | 448,837 | |
Debt Securities, Available-for-sale, Total | 1,173,661 | 1,192,829 |
Mortgage-backed and collateralized mortgage obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | $ 546,113 | |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 2.52% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 482,927 | |
Asset-backed Securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 67,634 | |
Total | $ 67,634 | 71,616 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 4.08% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 64,877 | |
Debt Securities, Available-for-sale, Total | 64,877 | 68,436 |
Collateralized loan obligations. | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 176,897 | |
Total | $ 176,897 | 173,201 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 6.98% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 177,020 | |
Debt Securities, Available-for-sale, Total | $ 177,020 | $ 171,881 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) security | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | |
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 40 | 40 | 14 |
Greater than 12 months in an unrealized loss position | security | 337 | 337 | 353 |
Total | 377 | 377 | 367 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 844,000 | $ 844,000 | $ 145,000 |
Greater than 12 months in an unrealized loss position | 82,918,000 | 82,918,000 | 85,825,000 |
Total | 83,762,000 | 83,762,000 | 85,970,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 153,920,000 | 153,920,000 | 28,708,000 |
Greater than 12 months in an unrealized loss position | 793,910,000 | 793,910,000 | 1,030,120,000 |
Total | 947,830,000 | $ 947,830,000 | 1,058,828,000 |
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 | 2 | 2 | |
Greater than 12 months in an unrealized loss position | security | 2 | 2 | 4 |
Total | 4 | 4 | 4 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 12,000 | $ 12,000 | |
Greater than 12 months in an unrealized loss position | 2,475,000 | 2,475,000 | $ 5,028,000 |
Total | 2,487,000 | 2,487,000 | 5,028,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 29,806,000 | 29,806,000 | |
Greater than 12 months in an unrealized loss position | 97,328,000 | 97,328,000 | 169,574,000 |
Total | $ 127,134,000 | $ 127,134,000 | $ 169,574,000 |
U.S. government agencies | |||
Securities Available-for-Sale, Number of Securities | |||
Greater than 12 months in an unrealized loss position | security | 8 | 8 | 9 |
Total | 8 | 8 | 9 |
Securities Available-for-Sale, Unrealized Losses | |||
Greater than 12 months in an unrealized loss position | $ 2,355,000 | $ 2,355,000 | $ 3,052,000 |
Total | 2,355,000 | 2,355,000 | 3,052,000 |
Securities Available-for-Sale, Fair Value | |||
Greater than 12 months in an unrealized loss position | 37,298,000 | 37,298,000 | 56,959,000 |
Total | $ 37,298,000 | $ 37,298,000 | $ 56,959,000 |
Mortgage Backed Securities, Issued by US Government Agencies | |||
Securities Available-for-Sale, Number of Securities | |||
Greater than 12 months in an unrealized loss position | security | 128 | 128 | 128 |
Total | 128 | 128 | 128 |
Securities Available-for-Sale, Unrealized Losses | |||
Greater than 12 months in an unrealized loss position | $ 12,618,000 | $ 12,618,000 | $ 12,122,000 |
Total | 12,618,000 | 12,618,000 | 12,122,000 |
Securities Available-for-Sale, Fair Value | |||
Greater than 12 months in an unrealized loss position | 96,872,000 | 96,872,000 | 106,370,000 |
Total | $ 96,872,000 | $ 96,872,000 | $ 106,370,000 |
States and political subdivisions | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 33 | 33 | 12 |
Greater than 12 months in an unrealized loss position | security | 35 | 35 | 25 |
Total | 68 | 68 | 37 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 763,000 | $ 763,000 | $ 137,000 |
Greater than 12 months in an unrealized loss position | 11,815,000 | 11,815,000 | 10,195,000 |
Total | 12,578,000 | 12,578,000 | 10,332,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 86,106,000 | 86,106,000 | 27,974,000 |
Greater than 12 months in an unrealized loss position | 125,519,000 | 125,519,000 | 106,138,000 |
Total | $ 211,625,000 | $ 211,625,000 | $ 134,112,000 |
Collateralized mortgage obligations | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 2 | ||
Greater than 12 months in an unrealized loss position | security | 142 | 142 | 143 |
Total | 142 | 142 | 145 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 8,000 | ||
Greater than 12 months in an unrealized loss position | $ 50,889,000 | $ 50,889,000 | 50,856,000 |
Total | 50,889,000 | 50,889,000 | 50,864,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 734,000 | ||
Greater than 12 months in an unrealized loss position | 349,308,000 | 349,308,000 | 376,236,000 |
Total | $ 349,308,000 | $ 349,308,000 | $ 376,970,000 |
Asset-backed Securities | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 2 | 2 | |
Greater than 12 months in an unrealized loss position | security | 18 | 18 | 19 |
Total | 20 | 20 | 19 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 10,000 | $ 10,000 | |
Greater than 12 months in an unrealized loss position | 2,753,000 | 2,753,000 | $ 3,222,000 |
Total | 2,763,000 | 2,763,000 | 3,222,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 5,064,000 | 5,064,000 | |
Greater than 12 months in an unrealized loss position | 59,306,000 | 59,306,000 | 63,941,000 |
Total | $ 64,370,000 | $ 64,370,000 | $ 63,941,000 |
Collateralized loan obligations. | |||
Securities Available-for-Sale, Number of Securities | |||
Less than 12 months in an unrealized loss position | security | 3 | 3 | |
Greater than 12 months in an unrealized loss position | security | 4 | 4 | 25 |
Total | 7 | 7 | 25 |
Securities Available-for-Sale, Unrealized Losses | |||
Less than 12 months in an unrealized loss position | $ 59,000 | $ 59,000 | |
Greater than 12 months in an unrealized loss position | 13,000 | 13,000 | $ 1,350,000 |
Total | 72,000 | 72,000 | 1,350,000 |
Securities Available-for-Sale, Fair Value | |||
Less than 12 months in an unrealized loss position | 32,944,000 | 32,944,000 | |
Greater than 12 months in an unrealized loss position | 28,279,000 | 28,279,000 | 150,902,000 |
Total | $ 61,223,000 | $ 61,223,000 | $ 150,902,000 |
Securities - Realized Gain (Los
Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Securities | |||
Proceeds from sales of securities | $ 73,996 | $ 5,331 | $ 140,166 |
Gross realized gains on securities | 1 | ||
Gross realized losses on securities | (1,547) | (3,222) | |
Net realized (losses) gains | (1,547) | $ 1 | (3,222) |
Income tax benefit on net realized losses | $ 434 | $ 905 | |
Effective tax rate applied (as a percent) | 28.10% | 28.10% |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans | ||||||
Total Loans | $ 3,976,595 | $ 4,042,953 | ||||
Allowance for credit losses | (42,269) | $ (44,113) | (44,264) | $ (55,314) | $ (53,392) | $ (49,480) |
Net loans | 3,934,326 | 3,998,689 | ||||
Commercial | ||||||
Loans | ||||||
Total Loans | 809,443 | 841,697 | ||||
Allowance for credit losses | (6,728) | (6,382) | (3,998) | (11,532) | (11,511) | (11,968) |
Leases | ||||||
Loans | ||||||
Total Loans | 452,957 | 398,223 | ||||
Allowance for credit losses | (1,978) | (2,959) | (2,952) | (2,690) | (2,766) | (2,865) |
Commercial real estate - Investor | ||||||
Loans | ||||||
Total Loans | 1,014,345 | 1,034,424 | ||||
Allowance for credit losses | (17,842) | (16,270) | (17,105) | (20,031) | (15,260) | (10,674) |
Commercial real estate - Owner occupied | ||||||
Loans | ||||||
Total Loans | 745,938 | 796,538 | ||||
Allowance for credit losses | (7,180) | (10,992) | (12,280) | (12,562) | (15,576) | (15,001) |
Construction | ||||||
Loans | ||||||
Total Loans | 185,634 | 165,380 | ||||
Allowance for credit losses | (2,020) | (1,038) | (1,179) | (1,546) | ||
Residential real estate - Investor | ||||||
Loans | ||||||
Total Loans | 50,371 | 52,595 | ||||
Allowance for credit losses | (609) | (636) | (669) | (743) | (746) | (768) |
Residential real estate - Owner occupied | ||||||
Loans | ||||||
Total Loans | 218,974 | 226,248 | ||||
Allowance for credit losses | (1,618) | (1,660) | (1,821) | (1,868) | (1,722) | (2,046) |
Multifamily | ||||||
Loans | ||||||
Total Loans | 388,743 | 401,696 | ||||
Allowance for credit losses | (2,804) | (2,593) | (2,728) | (2,737) | (2,665) | (2,453) |
HELOC | ||||||
Loans | ||||||
Total Loans | 99,037 | 103,237 | ||||
Allowance for credit losses | (1,483) | $ (1,508) | (1,656) | $ (1,694) | $ (1,788) | $ (1,806) |
Other | ||||||
Loans | ||||||
Total Loans | $ 11,153 | $ 22,915 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Loans | ||
Loans and leases receivable, accrued interest receivable | $ 19.4 | $ 20.5 |
Real estate | Loan receivables | Customer Concentration Risk | ||
Loans | ||
Loans receivable as a percentage of total portfolio | 68% | 68.80% |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 44,113 | $ 53,392 | $ 44,264 | $ 49,480 |
Provision for (Release of) Credit Losses | 3,950 | 2,427 | 7,494 | 7,079 |
Charge-offs | 6,011 | 733 | 9,999 | 1,755 |
Recoveries | 217 | 228 | 510 | 510 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 42,269 | 55,314 | 42,269 | 55,314 |
Net provision expense | 7,500 | |||
Commercial | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 6,382 | 11,511 | 3,998 | 11,968 |
Provision for (Release of) Credit Losses | 327 | 319 | 2,653 | (262,000) |
Charge-offs | 3 | 380 | 18 | 407 |
Recoveries | 22 | 82 | 95 | 233 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 6,728 | 11,532 | 6,728 | 11,532 |
Leases | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,959 | 2,766 | 2,952 | 2,865 |
Provision for (Release of) Credit Losses | (900) | (83) | (933) | 691,000 |
Charge-offs | 81 | 81 | 882 | |
Recoveries | 7 | 40 | 16 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,978 | 2,690 | 1,978 | 2,690 |
Commercial real estate - Investor | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 16,270 | 15,260 | 17,105 | 10,674 |
Provision for (Release of) Credit Losses | 6,132 | 4,822 | 5,230 | 9,391,000 |
Charge-offs | 4,580 | 71 | 4,596 | 71 |
Recoveries | 20 | 20 | 103 | 37 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 17,842 | 20,031 | 17,842 | 20,031 |
Commercial real estate - Owner occupied | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 10,992 | 15,576 | 12,280 | 15,001 |
Provision for (Release of) Credit Losses | (2,650) | (2,816) | (70) | (2,243,000) |
Charge-offs | 1,281 | 201 | 5,168 | 201 |
Recoveries | 119 | 3 | 138 | 5 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7,180 | 12,562 | 7,180 | 12,562 |
Real estate - construction | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,097 | 1,045 | ||
Provision for (Release of) Credit Losses | 923 | 134 | ||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,020 | 1,179 | 2,020 | 1,179 |
Construction | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,038 | 1,546 | ||
Provision for (Release of) Credit Losses | 982 | (367,000) | ||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,020 | 1,179 | 2,020 | 1,179 |
Residential real estate - Investor | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 636 | 746 | 669 | 768 |
Provision for (Release of) Credit Losses | (30) | (8) | (65) | (49,000) |
Recoveries | 3 | 5 | 5 | 24 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 609 | 743 | 609 | 743 |
Residential real estate - Owner occupied | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,660 | 1,722 | 1,821 | 2,046 |
Provision for (Release of) Credit Losses | (51) | 110 | (220) | (224,000) |
Recoveries | 9 | 36 | 17 | 46 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,618 | 1,868 | 1,618 | 1,868 |
Multifamily | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,593 | 2,665 | 2,728 | 2,453 |
Provision for (Release of) Credit Losses | 211 | 72 | 76 | 284,000 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,804 | 2,737 | 2,804 | 2,737 |
HELOC | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,508 | 1,788 | 1,656 | 1,806 |
Provision for (Release of) Credit Losses | (40) | (118) | (205) | (165,000) |
Recoveries | 15 | 24 | 32 | 53 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,483 | 1,694 | 1,483 | 1,694 |
Other | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 16 | 313 | 17 | 353 |
Provision for (Release of) Credit Losses | 28 | (5) | 46 | 23,000 |
Charge-offs | 66 | 81 | 136 | 194 |
Recoveries | 29 | 51 | 80 | 96 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7 | 278 | 7 | 278 |
Unfunded Loan Commitment | ||||
Allowance for loan losses: | ||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,700 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,500 | $ 2,700 | 2,500 | $ 2,700 |
Unfunded Loan Commitment | Other Liabilities | ||||
Allowance for loan losses: | ||||
ACL on unfunded commitments | $ 2,500 | $ 2,500 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | $ 3,934,326,000 | $ 3,998,689,000 | ||||
ACL Allocation | 42,269,000 | $ 44,113,000 | 44,264,000 | $ 55,314,000 | $ 53,392,000 | $ 49,480,000 |
Non-accruing loans | 500,000 | |||||
Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 38,525,000 | 63,115,000 | ||||
Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 35,965,000 | 61,997,000 | ||||
Accounts Receivable | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 825,000 | 797,000 | ||||
Equipment | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 508,000 | 321,000 | ||||
Other. | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 1,227,000 | |||||
Collateral | ||||||
Loans | ||||||
ACL Allocation | 5,443,000 | 7,878,000 | ||||
Commercial | ||||||
Loans | ||||||
ACL Allocation | 6,728,000 | 6,382,000 | 3,998,000 | 11,532,000 | 11,511,000 | 11,968,000 |
Commercial | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 2,560,000 | 1,634,000 | ||||
Commercial | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 837,000 | |||||
Commercial | Accounts Receivable | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 825,000 | 797,000 | ||||
Commercial | Equipment | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 508,000 | |||||
Commercial | Other. | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 1,227,000 | |||||
Commercial | Collateral | ||||||
Loans | ||||||
ACL Allocation | 1,229,000 | 2,000 | ||||
Leases | ||||||
Loans | ||||||
ACL Allocation | 1,978,000 | 2,959,000 | 2,952,000 | 2,690,000 | 2,766,000 | 2,865,000 |
Leases | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 321,000 | |||||
Leases | Equipment | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 321,000 | |||||
Leases | Collateral | ||||||
Loans | ||||||
ACL Allocation | 320,000 | |||||
Commercial real estate - Investor | ||||||
Loans | ||||||
ACL Allocation | 17,842,000 | 16,270,000 | 17,105,000 | 20,031,000 | 15,260,000 | 10,674,000 |
Commercial real estate - Investor | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 9,955,000 | 15,735,000 | ||||
Commercial real estate - Investor | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 9,955,000 | 15,735,000 | ||||
Commercial real estate - Investor | Collateral | ||||||
Loans | ||||||
ACL Allocation | 3,482,000 | 3,656,000 | ||||
Commercial real estate - Owner occupied | ||||||
Loans | ||||||
ACL Allocation | 7,180,000 | 10,992,000 | 12,280,000 | 12,562,000 | 15,576,000 | 15,001,000 |
Commercial real estate - Owner occupied | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 17,207,000 | 34,894,000 | ||||
Commercial real estate - Owner occupied | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 17,207,000 | 34,894,000 | ||||
Commercial real estate - Owner occupied | Collateral | ||||||
Loans | ||||||
ACL Allocation | 3,900,000 | |||||
Construction | ||||||
Loans | ||||||
ACL Allocation | 2,020,000 | 1,038,000 | 1,179,000 | 1,546,000 | ||
Construction | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 5,739,000 | 7,162,000 | ||||
Construction | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 5,739,000 | 7,162,000 | ||||
Construction | Collateral | ||||||
Loans | ||||||
ACL Allocation | 732,000 | |||||
Residential real estate - Investor | ||||||
Loans | ||||||
ACL Allocation | 609,000 | 636,000 | 669,000 | 743,000 | 746,000 | 768,000 |
Residential real estate - Investor | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 523,000 | 422,000 | ||||
Residential real estate - Investor | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 523,000 | 422,000 | ||||
Residential real estate - Owner occupied | ||||||
Loans | ||||||
ACL Allocation | 1,618,000 | 1,660,000 | 1,821,000 | 1,868,000 | 1,722,000 | 2,046,000 |
Residential real estate - Owner occupied | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 1,640,000 | 1,506,000 | ||||
Residential real estate - Owner occupied | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 1,640,000 | 1,506,000 | ||||
Multifamily | ||||||
Loans | ||||||
ACL Allocation | 2,804,000 | 2,593,000 | 2,728,000 | 2,737,000 | 2,665,000 | 2,453,000 |
Multifamily | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 839,000 | 1,402,000 | ||||
Multifamily | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 839,000 | 1,402,000 | ||||
HELOC | ||||||
Loans | ||||||
ACL Allocation | 1,483,000 | 1,508,000 | 1,656,000 | 1,694,000 | 1,788,000 | 1,806,000 |
HELOC | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 62,000 | 39,000 | ||||
HELOC | Real Estate | Asset Pledged as Collateral without Right | ||||||
Loans | ||||||
Total loans, including deferred loan loan costs and PCI | 62,000 | 39,000 | ||||
Other | ||||||
Loans | ||||||
ACL Allocation | $ 7,000 | $ 16,000 | $ 17,000 | $ 278,000 | $ 313,000 | $ 353,000 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Aged analysis of past due loans | ||
Total Loans | $ 3,976,595 | $ 4,042,953 |
Recorded Investment 90 days or Greater Past Due and Accruing | 4,909 | 1,196 |
Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 65,017 | 70,577 |
Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 49,286 | |
Total Past Due Including PCI loans | 49,392 | |
30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 12,642 | |
Total Past Due Including PCI loans | 10,176 | |
60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 4,529 | |
Total Past Due Including PCI loans | 6,134 | |
90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 32,115 | |
Total Past Due Including PCI loans | 33,082 | |
Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 3,927,309 | |
Current including PCI Loans | 3,993,561 | |
Commercial | ||
Aged analysis of past due loans | ||
Total Loans | 809,443 | 841,697 |
Recorded Investment 90 days or Greater Past Due and Accruing | 1,155 | |
Commercial | Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 24,407 | 8,007 |
Commercial | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 4,883 | 2,210 |
Commercial | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 914 | 982 |
Commercial | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 3,127 | |
Commercial | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 842 | 1,228 |
Commercial | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 804,560 | 839,487 |
Leases | ||
Aged analysis of past due loans | ||
Total Loans | 452,957 | 398,223 |
Leases | Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 2,031 | |
Leases | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 1,038 | 946 |
Leases | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 479 | 599 |
Leases | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 451 | |
Leases | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 108 | 347 |
Leases | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 451,919 | 397,277 |
Commercial real estate - Investor | ||
Aged analysis of past due loans | ||
Total Loans | 1,014,345 | 1,034,424 |
Commercial real estate - Investor | Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 4,200 | 11,267 |
Commercial real estate - Investor | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 9,698 | 7,296 |
Commercial real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 8,150 | 1,209 |
Commercial real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 710 | |
Commercial real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 838 | 6,087 |
Commercial real estate - Investor | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 1,004,647 | 1,027,128 |
Commercial real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Total Loans | 745,938 | 796,538 |
Recorded Investment 90 days or Greater Past Due and Accruing | 4,835 | |
Commercial real estate - Owner occupied | Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 23,475 | 35,677 |
Commercial real estate - Owner occupied | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 22,944 | 21,474 |
Commercial real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 2,103 | 2,103 |
Commercial real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 108 | 3,726 |
Commercial real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 20,733 | 15,645 |
Commercial real estate - Owner occupied | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 722,994 | 775,064 |
Real estate - construction | ||
Aged analysis of past due loans | ||
Total Loans | 185,634 | 165,380 |
Real estate - construction | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 5,740 | 10,008 |
Real estate - construction | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 2,540 | |
Real estate - construction | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 307 | |
Real estate - construction | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 5,740 | 7,161 |
Real estate - construction | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 179,894 | 155,372 |
Residential real estate - Investor | ||
Aged analysis of past due loans | ||
Total Loans | 50,371 | 52,595 |
Residential real estate - Investor | Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 566 | 66 |
Residential real estate - Investor | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 621 | 1,287 |
Residential real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 540 | |
Residential real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 579 | |
Residential real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 621 | 168 |
Residential real estate - Investor | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 49,750 | 51,308 |
Residential real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Total Loans | 218,974 | 226,248 |
Residential real estate - Owner occupied | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 2,330 | 2,622 |
Residential real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 390 | 553 |
Residential real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 70 | 125 |
Residential real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,870 | 1,944 |
Residential real estate - Owner occupied | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 216,644 | 223,626 |
Multifamily | ||
Aged analysis of past due loans | ||
Total Loans | 388,743 | 401,696 |
Multifamily | Special Mention | ||
Aged analysis of past due loans | ||
Total Loans | 9,990 | 15,560 |
Multifamily | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 1,289 | 1,318 |
Multifamily | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 235 | 1,085 |
Multifamily | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,054 | 233 |
Multifamily | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 387,454 | 400,378 |
HELOC | ||
Aged analysis of past due loans | ||
Total Loans | 99,037 | 103,237 |
Recorded Investment 90 days or Greater Past Due and Accruing | 74 | 41 |
HELOC | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 743 | 2,230 |
HELOC | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 371 | 565 |
HELOC | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 63 | 1,396 |
HELOC | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 309 | 269 |
HELOC | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | 98,294 | 101,007 |
Other | ||
Aged analysis of past due loans | ||
Total Loans | 11,153 | 22,915 |
Other | Financial Asset, Past Due | ||
Aged analysis of past due loans | ||
Current | 1 | |
Other | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 1 | |
Other | Financial Asset, Not Past Due | ||
Aged analysis of past due loans | ||
Current | $ 11,153 | $ 22,914 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Nonaccrual loans | |||
Non accrual including PCI Loans | $ 41,957 | $ 41,957 | $ 67,583 |
Nonaccrual with no ACL | 33,257 | 33,257 | 33,099 |
Interest on nonaccrual loans | 2,000 | 36,000 | |
Commercial | |||
Nonaccrual loans | |||
Nonaccrual | 2,654 | 2,654 | 870 |
Nonaccrual with no ACL | 1,427 | 1,427 | 870 |
Leases | |||
Nonaccrual loans | |||
Nonaccrual | 284 | 284 | 639 |
Nonaccrual with no ACL | 284 | 284 | 318 |
Commercial real estate - Investor | |||
Nonaccrual loans | |||
Nonaccrual | 9,954 | 9,954 | 16,572 |
Nonaccrual with no ACL | 2,481 | 2,481 | 8,926 |
Commercial real estate - Owner occupied | |||
Nonaccrual loans | |||
Nonaccrual | 17,256 | 17,256 | 34,946 |
Nonaccrual with no ACL | 17,256 | 17,256 | 8,429 |
Real estate - construction | |||
Nonaccrual loans | |||
Nonaccrual | 5,740 | 5,740 | 7,162 |
Nonaccrual with no ACL | 5,740 | 5,740 | 7,162 |
Residential real estate - Investor | |||
Nonaccrual loans | |||
Nonaccrual | 1,280 | 1,280 | 1,331 |
Nonaccrual with no ACL | 1,280 | 1,280 | 1,331 |
Residential real estate - Owner occupied | |||
Nonaccrual loans | |||
Nonaccrual | 2,599 | 2,599 | 3,078 |
Nonaccrual with no ACL | 2,599 | 2,599 | 3,078 |
Multifamily | |||
Nonaccrual loans | |||
Nonaccrual | 1,395 | 1,395 | 1,775 |
Nonaccrual with no ACL | 1,395 | 1,395 | 1,775 |
HELOC | |||
Nonaccrual loans | |||
Nonaccrual | 795 | 795 | 1,210 |
Nonaccrual with no ACL | $ 795 | $ 795 | $ 1,210 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | $ 367,130,000 | $ 965,644,000 |
2023 / 2022 | 936,113,000 | 997,009,000 |
2022/ 2021 | 949,640,000 | 737,065,000 |
2021 / 2020 | 625,400,000 | 367,981,000 |
2020/ 2019 | 289,306,000 | 192,786,000 |
Prior | 427,854,000 | 306,846,000 |
Revolving Loans | 381,152,000 | 474,214,000 |
Revolving Loans Converted To Term Loans | 1,408,000 | |
Total Loans | 3,976,595,000 | 4,042,953,000 |
Minimum | ||
The gross charge-offs activity by loan type and year of origination | ||
Loan commitment for inclusion in credit quality analysis | 50,000 | |
Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 367,130,000 | 963,994,000 |
2023 / 2022 | 933,921,000 | 958,129,000 |
2022/ 2021 | 900,545,000 | 682,010,000 |
2021 / 2020 | 594,866,000 | 344,237,000 |
2020/ 2019 | 270,404,000 | 158,932,000 |
Prior | 386,170,000 | 280,746,000 |
Revolving Loans | 336,137,000 | 450,136,000 |
Revolving Loans Converted To Term Loans | 1,408,000 | |
Total Loans | 3,789,173,000 | 3,839,592,000 |
Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 1,650,000 | |
2023 / 2022 | 527,000 | 20,320,000 |
2022/ 2021 | 21,771,000 | 35,050,000 |
2021 / 2020 | 21,318,000 | 3,621,000 |
2020/ 2019 | 50,000 | 1,863,000 |
Prior | 2,035,000 | 3,681,000 |
Revolving Loans | 19,316,000 | 4,392,000 |
Total Loans | 65,017,000 | 70,577,000 |
Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 1,665,000 | 18,560,000 |
2022/ 2021 | 27,324,000 | 20,005,000 |
2021 / 2020 | 9,216,000 | 20,123,000 |
2020/ 2019 | 18,852,000 | 31,991,000 |
Prior | 39,649,000 | 22,419,000 |
Revolving Loans | 25,699,000 | 19,686,000 |
Total Loans | 122,405,000 | 132,784,000 |
Commercial | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 115,506,000 | 318,569,000 |
2023 / 2022 | 264,481,000 | 141,504,000 |
2022/ 2021 | 119,870,000 | 36,754,000 |
2021 / 2020 | 28,344,000 | 12,154,000 |
2020/ 2019 | 9,269,000 | 18,589,000 |
Prior | 18,900,000 | 3,426,000 |
Revolving Loans | 253,073,000 | 309,293,000 |
Revolving Loans Converted To Term Loans | 1,408,000 | |
Total Loans | 809,443,000 | 841,697,000 |
Commercial | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 115,506,000 | 318,569,000 |
2023 / 2022 | 264,234,000 | 136,668,000 |
2022/ 2021 | 111,600,000 | 35,901,000 |
2021 / 2020 | 25,429,000 | 11,983,000 |
2020/ 2019 | 9,219,000 | 18,390,000 |
Prior | 18,900,000 | 3,426,000 |
Revolving Loans | 221,006,000 | 298,931,000 |
Revolving Loans Converted To Term Loans | 1,408,000 | |
Total Loans | 765,894,000 | 825,276,000 |
Commercial | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 227,000 | 2,737,000 |
2022/ 2021 | 2,043,000 | 707,000 |
2021 / 2020 | 2,771,000 | 171,000 |
2020/ 2019 | 50,000 | |
Revolving Loans | 19,316,000 | 4,392,000 |
Total Loans | 24,407,000 | 8,007,000 |
Commercial | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 20,000 | 2,099,000 |
2022/ 2021 | 6,227,000 | 146,000 |
2021 / 2020 | 144,000 | |
2020/ 2019 | 199,000 | |
Revolving Loans | 12,751,000 | 5,970,000 |
Total Loans | 19,142,000 | 8,414,000 |
Real estate - residential loans | ||
The gross charge-offs activity by loan type and year of origination | ||
Mortgage loans in process of foreclosure | 431,000 | 170,000 |
Leases | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 131,338,000 | 219,163,000 |
2023 / 2022 | 186,696,000 | 113,481,000 |
2022/ 2021 | 88,449,000 | 42,478,000 |
2021 / 2020 | 32,840,000 | 14,663,000 |
2020/ 2019 | 10,335,000 | 7,183,000 |
Prior | 3,299,000 | 1,255,000 |
Total Loans | 452,957,000 | 398,223,000 |
Leases | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 131,338,000 | 219,163,000 |
2023 / 2022 | 186,396,000 | 113,074,000 |
2022/ 2021 | 87,390,000 | 42,275,000 |
2021 / 2020 | 31,893,000 | 14,663,000 |
2020/ 2019 | 10,335,000 | 6,975,000 |
Prior | 3,290,000 | 1,255,000 |
Total Loans | 450,642,000 | 397,405,000 |
Leases | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 300,000 | |
2022/ 2021 | 775,000 | |
2021 / 2020 | 947,000 | |
Prior | 9,000 | |
Total Loans | 2,031,000 | |
Leases | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 407,000 | |
2022/ 2021 | 284,000 | 203,000 |
2020/ 2019 | 208,000 | |
Total Loans | 284,000 | 818,000 |
Commercial real estate - Investor | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 55,037,000 | 159,654,000 |
2023 / 2022 | 192,583,000 | 367,512,000 |
2022/ 2021 | 334,504,000 | 230,189,000 |
2021 / 2020 | 193,052,000 | 113,711,000 |
2020/ 2019 | 98,410,000 | 69,980,000 |
Prior | 121,112,000 | 72,929,000 |
Revolving Loans | 19,647,000 | 20,449,000 |
Total Loans | 1,014,345,000 | 1,034,424,000 |
Commercial real estate - Investor | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 55,037,000 | 159,654,000 |
2023 / 2022 | 190,938,000 | 367,512,000 |
2022/ 2021 | 334,504,000 | 218,084,000 |
2021 / 2020 | 188,015,000 | 108,384,000 |
2020/ 2019 | 93,138,000 | 54,322,000 |
Prior | 104,176,000 | 63,281,000 |
Revolving Loans | 7,398,000 | 8,122,000 |
Total Loans | 973,206,000 | 979,359,000 |
Commercial real estate - Investor | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2022/ 2021 | 11,267,000 | |
2021 / 2020 | 4,200,000 | |
Total Loans | 4,200,000 | 11,267,000 |
Commercial real estate - Investor | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 1,645,000 | |
2022/ 2021 | 838,000 | |
2021 / 2020 | 837,000 | 5,327,000 |
2020/ 2019 | 5,272,000 | 15,658,000 |
Prior | 16,936,000 | 9,648,000 |
Revolving Loans | 12,249,000 | 12,327,000 |
Total Loans | 36,939,000 | 43,798,000 |
Commercial real estate - Owner occupied | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 17,675,000 | 125,709,000 |
2023 / 2022 | 131,499,000 | 166,428,000 |
2022/ 2021 | 182,857,000 | 205,955,000 |
2021 / 2020 | 167,216,000 | 110,808,000 |
2020/ 2019 | 99,117,000 | 57,866,000 |
Prior | 132,874,000 | 96,529,000 |
Revolving Loans | 14,700,000 | 33,243,000 |
Total Loans | 745,938,000 | 796,538,000 |
Commercial real estate - Owner occupied | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 17,675,000 | 124,059,000 |
2023 / 2022 | 131,499,000 | 134,383,000 |
2022/ 2021 | 150,692,000 | 177,553,000 |
2021 / 2020 | 159,537,000 | 103,109,000 |
2020/ 2019 | 86,192,000 | 42,839,000 |
Prior | 113,781,000 | 91,062,000 |
Revolving Loans | 14,700,000 | 33,243,000 |
Total Loans | 674,076,000 | 706,248,000 |
Commercial real estate - Owner occupied | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 1,650,000 | |
2023 / 2022 | 17,415,000 | |
2022/ 2021 | 18,605,000 | 9,585,000 |
2021 / 2020 | 2,844,000 | 3,128,000 |
2020/ 2019 | 218,000 | |
Prior | 2,026,000 | 3,681,000 |
Total Loans | 23,475,000 | 35,677,000 |
Commercial real estate - Owner occupied | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 14,630,000 | |
2022/ 2021 | 13,560,000 | 18,817,000 |
2021 / 2020 | 4,835,000 | 4,571,000 |
2020/ 2019 | 12,925,000 | 14,809,000 |
Prior | 17,067,000 | 1,786,000 |
Total Loans | 48,387,000 | 54,613,000 |
Construction | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 15,841,000 | 42,808,000 |
2023 / 2022 | 44,518,000 | 66,513,000 |
2022/ 2021 | 96,939,000 | 32,942,000 |
2021 / 2020 | 26,377,000 | 10,093,000 |
2020/ 2019 | 91,000 | 1,593,000 |
Prior | 1,614,000 | 8,245,000 |
Revolving Loans | 254,000 | 3,186,000 |
Total Loans | 185,634,000 | 165,380,000 |
Construction | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 15,841,000 | 42,808,000 |
2023 / 2022 | 44,518,000 | 66,513,000 |
2022/ 2021 | 90,851,000 | 32,942,000 |
2021 / 2020 | 26,377,000 | 100,000 |
2020/ 2019 | 91,000 | 1,593,000 |
Prior | 1,614,000 | 1,083,000 |
Revolving Loans | 254,000 | 3,186,000 |
Total Loans | 179,546,000 | 148,225,000 |
Construction | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2022/ 2021 | 348,000 | |
Total Loans | 348,000 | |
Construction | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2022/ 2021 | 5,740,000 | |
2021 / 2020 | 9,993,000 | |
Prior | 7,162,000 | |
Total Loans | 5,740,000 | 17,155,000 |
Residential real estate - Investor | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 1,321,000 | 5,062,000 |
2023 / 2022 | 3,908,000 | 14,824,000 |
2022/ 2021 | 14,410,000 | 9,093,000 |
2021 / 2020 | 8,480,000 | 6,227,000 |
2020/ 2019 | 6,062,000 | 6,916,000 |
Prior | 14,101,000 | 9,002,000 |
Revolving Loans | 2,089,000 | 1,471,000 |
Total Loans | 50,371,000 | 52,595,000 |
Residential real estate - Investor | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 1,321,000 | 5,062,000 |
2023 / 2022 | 3,908,000 | 14,434,000 |
2022/ 2021 | 14,032,000 | 9,027,000 |
2021 / 2020 | 7,851,000 | 6,227,000 |
2020/ 2019 | 6,062,000 | 6,508,000 |
Prior | 13,199,000 | 8,469,000 |
Revolving Loans | 2,089,000 | 1,471,000 |
Total Loans | 48,462,000 | 51,198,000 |
Residential real estate - Investor | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2022/ 2021 | 66,000 | |
2021 / 2020 | 566,000 | |
Total Loans | 566,000 | 66,000 |
Residential real estate - Investor | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 390,000 | |
2022/ 2021 | 378,000 | |
2021 / 2020 | 63,000 | |
2020/ 2019 | 408,000 | |
Prior | 902,000 | 533,000 |
Total Loans | 1,343,000 | 1,331,000 |
Residential real estate - Owner occupied | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 9,551,000 | 32,574,000 |
2023 / 2022 | 31,099,000 | 41,528,000 |
2022/ 2021 | 36,751,000 | 40,335,000 |
2021 / 2020 | 38,750,000 | 25,513,000 |
2020/ 2019 | 24,068,000 | 14,918,000 |
Prior | 77,953,000 | 70,617,000 |
Revolving Loans | 802,000 | 763,000 |
Total Loans | 218,974,000 | 226,248,000 |
Residential real estate - Owner occupied | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 9,551,000 | 32,574,000 |
2023 / 2022 | 31,099,000 | 41,528,000 |
2022/ 2021 | 36,751,000 | 40,335,000 |
2021 / 2020 | 38,750,000 | 25,322,000 |
2020/ 2019 | 23,967,000 | 14,233,000 |
Prior | 75,320,000 | 68,277,000 |
Revolving Loans | 802,000 | 763,000 |
Total Loans | 216,240,000 | 223,032,000 |
Residential real estate - Owner occupied | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2021 / 2020 | 191,000 | |
2020/ 2019 | 101,000 | 685,000 |
Prior | 2,633,000 | 2,340,000 |
Total Loans | 2,734,000 | 3,216,000 |
Multifamily | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 16,590,000 | 55,310,000 |
2023 / 2022 | 76,747,000 | 80,237,000 |
2022/ 2021 | 72,038,000 | 137,259,000 |
2021 / 2020 | 129,027,000 | 72,861,000 |
2020/ 2019 | 40,349,000 | 13,876,000 |
Prior | 53,418,000 | 41,591,000 |
Revolving Loans | 574,000 | 562,000 |
Total Loans | 388,743,000 | 401,696,000 |
Multifamily | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 16,590,000 | 55,310,000 |
2023 / 2022 | 76,747,000 | 79,060,000 |
2022/ 2021 | 70,903,000 | 123,834,000 |
2021 / 2020 | 115,700,000 | 72,539,000 |
2020/ 2019 | 39,835,000 | 12,231,000 |
Prior | 51,594,000 | 40,825,000 |
Revolving Loans | 574,000 | 562,000 |
Total Loans | 371,943,000 | 384,361,000 |
Multifamily | Special Mention | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 168,000 | |
2022/ 2021 | 13,425,000 | |
2021 / 2020 | 9,990,000 | 322,000 |
2020/ 2019 | 1,645,000 | |
Total Loans | 9,990,000 | 15,560,000 |
Multifamily | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 1,009,000 | |
2022/ 2021 | 1,135,000 | |
2021 / 2020 | 3,337,000 | |
2020/ 2019 | 514,000 | |
Prior | 1,824,000 | 766,000 |
Total Loans | 6,810,000 | 1,775,000 |
HELOC | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 1,471,000 | 2,735,000 |
2023 / 2022 | 2,629,000 | 2,704,000 |
2022/ 2021 | 2,421,000 | 491,000 |
2021 / 2020 | 430,000 | 1,798,000 |
2020/ 2019 | 1,509,000 | 1,780,000 |
Prior | 4,454,000 | 3,179,000 |
Revolving Loans | 86,123,000 | 90,550,000 |
Total Loans | 99,037,000 | 103,237,000 |
HELOC | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 1,471,000 | 2,735,000 |
2023 / 2022 | 2,629,000 | 2,679,000 |
2022/ 2021 | 2,421,000 | 490,000 |
2021 / 2020 | 430,000 | 1,757,000 |
2020/ 2019 | 1,469,000 | 1,756,000 |
Prior | 4,167,000 | 2,995,000 |
Revolving Loans | 85,425,000 | 89,161,000 |
Total Loans | 98,012,000 | 101,573,000 |
HELOC | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
2023 / 2022 | 25,000 | |
2022/ 2021 | 1,000 | |
2021 / 2020 | 41,000 | |
2020/ 2019 | 40,000 | 24,000 |
Prior | 287,000 | 184,000 |
Revolving Loans | 698,000 | 1,389,000 |
Total Loans | 1,025,000 | 1,664,000 |
Other | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 2,800,000 | 4,060,000 |
2023 / 2022 | 1,953,000 | 2,278,000 |
2022/ 2021 | 1,401,000 | 1,569,000 |
2021 / 2020 | 884,000 | 153,000 |
2020/ 2019 | 96,000 | 85,000 |
Prior | 129,000 | 73,000 |
Revolving Loans | 3,890,000 | 14,697,000 |
Total Loans | 11,153,000 | 22,915,000 |
Other | Pass | ||
The gross charge-offs activity by loan type and year of origination | ||
2024 / 2023 | 2,800,000 | 4,060,000 |
2023 / 2022 | 1,953,000 | 2,278,000 |
2022/ 2021 | 1,401,000 | 1,569,000 |
2021 / 2020 | 884,000 | 153,000 |
2020/ 2019 | 96,000 | 85,000 |
Prior | 129,000 | 73,000 |
Revolving Loans | 3,889,000 | 14,697,000 |
Total Loans | 11,152,000 | $ 22,915,000 |
Other | Substandard | ||
The gross charge-offs activity by loan type and year of origination | ||
Revolving Loans | 1,000 | |
Total Loans | $ 1,000 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans - Charge-offs Activity by Loan Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Loans by risk rating | ||||
2023 / 2022 | $ 895 | |||
2022 / 2021 | $ 4,156 | 274 | ||
2021 / 2020 | 5,640 | 372 | ||
2020 / 2019 | 16 | 12 | ||
Prior | 187 | 202 | ||
Total | $ 6,011 | $ 733 | 9,999 | 1,755 |
Commercial | ||||
Loans by risk rating | ||||
2021 / 2020 | 364 | |||
Prior | 18 | 43 | ||
Total | 3 | 380 | 18 | 407 |
Leases | ||||
Loans by risk rating | ||||
2023 / 2022 | 870 | |||
2022 / 2021 | 28 | |||
2021 / 2020 | 53 | |||
2020 / 2019 | 12 | |||
Total | 81 | 81 | 882 | |
Commercial real estate - Investor | ||||
Loans by risk rating | ||||
2022 / 2021 | 4,128 | 71 | ||
2021 / 2020 | 452 | |||
2020 / 2019 | 16 | |||
Total | 4,580 | 71 | 4,596 | 71 |
Commercial real estate - Owner occupied | ||||
Loans by risk rating | ||||
2023 / 2022 | 22 | |||
2022 / 2021 | 179 | |||
2021 / 2020 | 5,135 | |||
Prior | 33 | |||
Total | 1,281 | 201 | 5,168 | 201 |
Other | ||||
Loans by risk rating | ||||
2023 / 2022 | 3 | |||
2022 / 2021 | 24 | |||
2021 / 2020 | 8 | |||
Prior | 136 | 159 | ||
Total | $ 66 | $ 81 | $ 136 | $ 194 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses on Loans - TDR (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) loan | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) item | Jun. 30, 2023 USD ($) loan | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) item | |
Troubled debt restructurings - modified during the period | ||||||
Number of payment modification | 6 | 2 | 11 | 2 | ||
Total Loans modified | $ 16,375 | $ 16,375 | $ 16,375 | $ 32,654 | $ 32,654 | $ 32,654 |
Payment default | 0 | 0 | ||||
Other information | ||||||
Number of payment modification | 6 | 2 | 11 | 2 | ||
Commercial | ||||||
Troubled debt restructurings - modified during the period | ||||||
Total Loans modified | $ 247 | $ 247 | $ 247 | $ 1,838 | $ 1,838 | $ 1,838 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses on Loans - Loan Modifications (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable | ||
Total Loans modified | $ 16,375 | $ 32,654 |
Total Loan Segment Modified to Total Loan Segment | 0.40% | 8% |
Weighted-Average Term Extension (In Months) | 5 months 3 days | 11 years 4 months 24 days |
Weighted-Average Interest Rate Change | 0.33% | 5% |
Weighted-Average Delay of Payment (In Months) | 7 months | |
90 Days or Greater Past Due | ||
Financing Receivable | ||
Total Loans modified | $ 1,774 | |
Total Past Due | ||
Financing Receivable | ||
Total Loans modified | 1,774 | |
Current | ||
Financing Receivable | ||
Total Loans modified | $ 16,375 | 30,880 |
Term Extension | ||
Financing Receivable | ||
Total Loans modified | 12,403 | 29,901 |
Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction | ||
Financing Receivable | ||
Total Loans modified | 491 | |
Combination - Term Extension and Interest Rate Modification | ||
Financing Receivable | ||
Total Loans modified | 3,269 | 979 |
Combination - Term Extension and Payment Modification | ||
Financing Receivable | ||
Total Loans modified | 212 | 1,774 |
Commercial | ||
Financing Receivable | ||
Total Loans modified | $ 247 | $ 1,838 |
Total Loan Segment Modified to Total Loan Segment | 0% | 0.20% |
Weighted-Average Term Extension (In Months) | 4 months | 4 years 10 months 24 days |
Weighted-Average Interest Rate Change | 5% | |
Commercial | Current | ||
Financing Receivable | ||
Total Loans modified | $ 247 | $ 1,838 |
Commercial | Term Extension | ||
Financing Receivable | ||
Total Loans modified | 247 | 859 |
Commercial | Combination - Term Extension and Interest Rate Modification | ||
Financing Receivable | ||
Total Loans modified | 979 | |
Commercial real estate - Investor | ||
Financing Receivable | ||
Total Loans modified | $ 14,438 | |
Total Loan Segment Modified to Total Loan Segment | 1.30% | |
Weighted-Average Term Extension (In Months) | 11 years 6 months | |
Weighted-Average Delay of Payment (In Months) | 7 months | |
Commercial real estate - Investor | 90 Days or Greater Past Due | ||
Financing Receivable | ||
Total Loans modified | $ 1,774 | |
Commercial real estate - Investor | Total Past Due | ||
Financing Receivable | ||
Total Loans modified | 1,774 | |
Commercial real estate - Investor | Current | ||
Financing Receivable | ||
Total Loans modified | 12,664 | |
Commercial real estate - Investor | Term Extension | ||
Financing Receivable | ||
Total Loans modified | 12,664 | |
Commercial real estate - Investor | Combination - Term Extension and Payment Modification | ||
Financing Receivable | ||
Total Loans modified | 1,774 | |
Commercial real estate - Owner occupied | ||
Financing Receivable | ||
Total Loans modified | $ 16,128 | $ 16,318 |
Total Loan Segment Modified to Total Loan Segment | 2.20% | 2% |
Weighted-Average Term Extension (In Months) | 5 months 3 days | 12 years |
Weighted-Average Interest Rate Change | 0.33% | |
Commercial real estate - Owner occupied | Current | ||
Financing Receivable | ||
Total Loans modified | $ 16,128 | $ 16,318 |
Commercial real estate - Owner occupied | Term Extension | ||
Financing Receivable | ||
Total Loans modified | 12,156 | 16,318 |
Commercial real estate - Owner occupied | Combination - Term Extension, Interest Rate Modification, Payment Modification, and Principal Reduction | ||
Financing Receivable | ||
Total Loans modified | 491 | |
Commercial real estate - Owner occupied | Combination - Term Extension and Interest Rate Modification | ||
Financing Receivable | ||
Total Loans modified | 3,269 | |
Commercial real estate - Owner occupied | Combination - Term Extension and Payment Modification | ||
Financing Receivable | ||
Total Loans modified | $ 212 | |
HELOC | ||
Financing Receivable | ||
Total Loans modified | $ 60 | |
Total Loan Segment Modified to Total Loan Segment | 0.10% | |
Weighted-Average Term Extension (In Months) | 24 years | |
HELOC | Current | ||
Financing Receivable | ||
Total Loans modified | $ 60 | |
HELOC | Term Extension | ||
Financing Receivable | ||
Total Loans modified | $ 60 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ||||
Balance at beginning of period | $ 5,123 | $ 1,255 | $ 5,123 | $ 1,561 |
Property additions, net of acquisition adjustments | 3,388 | 185 | 3,388 | 476 |
Less: Proceeds from property disposals, net of participation purchase and of gains/losses | 1,591 | 679 | 1,591 | 1,007 |
Less: Period valuation write-down | 269 | |||
Balance at end of period | 6,920 | 761 | 6,920 | 761 |
Activity in the valuation allowance | ||||
Balance at beginning of period | 118 | 853 | 118 | 856 |
Provision for unrealized losses | 269 | |||
Reductions taken on sales | (739) | (1,011) | ||
Balance at end of period | 118 | 114 | 118 | 114 |
Expenses related to foreclosed assets, net of lease revenue | ||||
Gain on sales, net | (259) | (186) | (259) | (158) |
Provision for unrealized losses | 269 | |||
Operating expenses | 239 | 92 | 352 | 101 |
Less: Lease revenue | 67 | 4 | 134 | 4 |
Net OREO expense | $ (87) | $ (98) | $ (41) | $ 208 |
Deposits - Classifications of D
Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deposits | ||
Noninterest bearing demand | $ 1,728,487 | $ 1,834,891 |
Savings | 908,826 | 971,334 |
NOW accounts | 557,469 | 565,375 |
Money market accounts | 695,131 | 671,240 |
Certificates of deposit of less than $100,000 | 304,195 | 266,035 |
Certificates of deposit of $100,000 through $250,000 | 223,137 | 180,289 |
Certificates of deposit of more than $250,000 | 104,483 | 81,582 |
Total deposits | $ 4,521,728 | $ 4,570,746 |
Borrowings - Summary (Details)
Borrowings - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Borrowings | ||
Total borrowings | $ 461,740 | $ 516,625 |
Securities sold under repurchase agreements | ||
Borrowings | ||
Total borrowings | 46,542 | 26,470 |
Other short-term borrowings | ||
Borrowings | ||
Total borrowings | 330,000 | 405,000 |
Junior Subordinated Debentures | ||
Borrowings | ||
Total borrowings | 25,773 | 25,773 |
Subordinated debentures | ||
Borrowings | ||
Total borrowings | $ 59,425 | $ 59,382 |
Borrowings - Additional informa
Borrowings - Additional information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Feb. 24, 2023 USD ($) | Feb. 24, 2020 USD ($) | Dec. 31, 2016 | Jun. 30, 2023 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2024 USD ($) item | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Borrowings | ||||||||
Number of customers having secured balances exceeding specified percentage of stockholders equity | item | 0 | |||||||
Threshold percentage of stockholders' equity | 10% | |||||||
Borrowings at FHLBC as percentage of total assets | 35% | |||||||
FHLBC stock | $ 17,100 | $ 18,500 | ||||||
Proceeds from term note | $ 30,000 | |||||||
Repayment of term note | $ 9,000 | |||||||
Basis points added to reference rate (as a percent) | 1.75% | |||||||
Outstanding, net of deferred issuance costs | 59,400 | 59,400 | ||||||
Asset Pledged as Collateral with Right | Securities sold under repurchase agreements | ||||||||
Borrowings | ||||||||
Investment securities pledged with financial institutions, dollars | 73,600 | 45,700 | ||||||
Securities sold under repurchase agreements | ||||||||
Borrowings | ||||||||
Investment securities pledged with financial institutions, dollars | $ 46,500 | 26,500 | ||||||
Federal Home Loan Bank Advances | ||||||||
Borrowings | ||||||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60% | |||||||
FHLBC advance amount | $ 330,000 | $ 405,000 | ||||||
FHLBC stock | 17,100 | |||||||
Principal balance of loans collateralized | 1,380,000 | |||||||
Combined collateral value | 933,900,000 | |||||||
Amount available for additional borrowings | $ 603,900 | |||||||
Senior notes | ||||||||
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% | ||||||
Debt issuance costs | $ 362 | $ 362 | ||||||
Debt instrument redemption price, percentage | 12.85% | 100% | ||||||
Debt redeemed amount | $ 45,000 | $ 45,000 | ||||||
Senior notes | Debt Instrument Variable Rate Base LIBOR | ||||||||
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% | |||||||
Face amount | $ 60,000 | |||||||
Subordinated Notes Due 2031 | Three Months Secured Overnight Financing Rate | ||||||||
Borrowings | ||||||||
Basis points added to reference rate (as a percent) | 2.73% |
Junior Subordinated Debentures
Junior Subordinated Debentures - Issuance (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 7 Months Ended | |||
Apr. 30, 2007 | Jun. 30, 2024 | Jun. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2023 | Jun. 30, 2023 | |
Junior subordinated debentures | ||||||
Junior subordinated debentures | $ 25,773 | $ 25,773 | ||||
Old Second Capital Trust II | ||||||
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 | Debt Instrument, Redemption, Period One | ||||||
Junior subordinated debentures | ||||||
Interest rate (as a percent) | 4.49% | 4.37% | ||||
Junior Subordinated Debentures | ||||||
Junior subordinated debentures | ||||||
Junior Subordinated Debentures issuance cost | $ 1,000 | $ 1,000 | ||||
Junior Subordinated Debentures | Old Second Capital Trust II | ||||||
Junior subordinated debentures | ||||||
Junior subordinated debentures | $ 25,800 |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
May 31, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | May 31, 2019 | |
Equity Compensation Plans | ||||
Total compensation cost | $ 2.2 | $ 1.8 | ||
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 | 718,193 |
Equity Compensation Plans - Res
Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in unvested awards | ||
Nonvested at the beginning of the period (in shares) | 709,237 | |
Granted (in shares) | 339,235 | 238,149 |
Vested (in shares) | (209,969) | |
Forfeited (in shares) | (8,954) | |
Nonvested at the end of the period (in shares) | 829,549 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 14.26 | |
Granted (in dollars per share) | 13.44 | |
Vested (in dollars per share) | 11.38 | |
Forfeited (in dollars per share) | 14.09 | |
Nonvested at the end of the period (in dollars per share) | $ 14.65 | |
Additional information | ||
Total unrecognized compensation cost of restricted awards | $ 6.2 | |
Expected weighted-average period for recognition of unrecognized compensation | 2 years 10 days |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic earnings per share: | ||||
Weighted-average common shares outstanding | 44,846,848 | 44,665,127 | 44,802,704 | 44,642,250 |
Net income | $ 21,891 | $ 25,562 | $ 43,203 | $ 49,169 |
Basic earnings per share | $ 0.48 | $ 0.57 | $ 0.96 | $ 1.10 |
Diluted earnings per share: | ||||
Weighted-average common shares outstanding | 44,846,848 | 44,665,127 | 44,802,704 | 44,642,250 |
Diluted average common shares outstanding | 45,682,239 | 45,424,418 | 45,603,062 | 45,370,806 |
Net earnings available to common stockholders | $ 21,891 | $ 25,562 | $ 43,203 | $ 49,169 |
Diluted earnings per share | $ 0.48 | $ 0.56 | $ 0.95 | $ 1.08 |
Restricted Stock and Restricted Stock Units | ||||
Diluted earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 835,391 | 759,291 | 800,358 | 728,556 |
Regulatory & Capital Matters (D
Regulatory & Capital Matters (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Dec. 31, 2023 | |
Regulatory & Capital Matters | ||
Tier 1 capital leverage ratio (as a percent) | 0.1096 | 0.1006 |
Risk-based capital ratio (as a percent) | 0.1512 | 0.1406 |
Deferment of impact on retained earnings | $ 951,000 | |
Subsidiaries | ||
Regulatory & Capital Matters | ||
Tier 1 capital leverage ratio (as a percent) | 0.1143 | 0.1041 |
Risk-based capital ratio (as a percent) | 0.1442 | 0.1324 |
Tier One leverage ratio, basis point increase (as a percent) | 1.02% | |
Risk-based capital ratio, basis point increase (as a percent) | 1.18% | |
Minimum | Subsidiaries | ||
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 | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 587,746 | $ 547,721 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 331,525 | $ 337,207 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.1241% | 0.1137% |
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 | $ 716,185 | $ 677,076 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 497,351 | $ 505,640 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 0.1512 | 0.1406 |
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 | $ 612,746 | $ 572,721 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 402,499 | $ 409,430 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.1294 | 0.1189 |
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 | $ 612,746 | $ 572,721 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 223,630 | $ 227,722 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 0.1096 | 0.1006 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 0.0400 | 0.0400 |
Subsidiaries | ||
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 638,977 | $ 592,413 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 331,321 | 336,598 |
Minimum Required to Be Well Capitalized | $ 307,656 | $ 312,556 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.135% | 0.1232% |
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 | $ 682,416 | $ 636,768 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 496,905 | 504,990 |
Minimum Required to Be Well Capitalized | $ 473,243 | $ 480,943 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 0.1442 | 0.1324 |
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 | $ 638,977 | $ 592,413 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 402,319 | 408,727 |
Minimum Required to Be Well Capitalized | $ 378,653 | $ 384,684 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 0.1350 | 0.1232 |
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 | $ 638,977 | $ 592,413 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 223,614 | 227,632 |
Minimum Required to Be Well Capitalized | $ 279,517 | $ 284,540 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 0.1143 | 0.1041 |
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 | 6 Months Ended |
Jun. 30, 2024 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 | $ 117.3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
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 | $ (6,800) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Securities available-for-sale | $ 1,173,661 | $ 1,192,829 |
Mortgage servicing rights | 10,488 | 10,344 |
U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 191,274 | 169,574 |
U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 37,298 | 56,959 |
States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 220,265 | 227,065 |
Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 386,055 | 392,544 |
Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | 64,877 | 68,436 |
Collateralized loan obligations. | ||
Assets: | ||
Securities available-for-sale | 177,020 | 171,881 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Securities available-for-sale | 191,274 | 169,574 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Securities available-for-sale | 967,193 | 1,007,926 |
Loans held-for-sale | 2,291 | 1,322 |
Interest rate derivatives | 6,051 | 5,302 |
Liabilities: | ||
Mortgage banking derivatives | 7,827 | 8,324 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Securities available-for-sale | 15,194 | 15,329 |
Mortgage servicing rights | 10,488 | 10,344 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Loans held-for-sale | 2,291 | 1,322 |
Mortgage servicing rights | 10,488 | 10,344 |
Total financial assets | 1,192,599 | 1,209,886 |
Liabilities: | ||
Mortgage banking derivatives | 10 | |
Total | 7,835 | 8,334 |
Fair Value, Measurements, Recurring | Interest rate swap agreements, including risk participation agreement | ||
Liabilities: | ||
Mortgage banking derivatives | 7,835 | 8,324 |
Fair Value, Measurements, Recurring | Forward Contracts | ||
Assets: | ||
Interest rate derivatives | 64 | |
Fair Value, Measurements, Recurring | Interest Rate Products | ||
Assets: | ||
Interest rate derivatives | 6,095 | 5,391 |
Fair Value, Measurements, Recurring | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 191,274 | 169,574 |
Fair Value, Measurements, Recurring | U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 37,298 | 56,959 |
Fair Value, Measurements, Recurring | Mortgage Backed Securities, Issued by US Government Agencies | ||
Assets: | ||
Securities available-for-sale | 96,872 | 106,370 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 220,265 | 227,065 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 386,055 | 392,544 |
Fair Value, Measurements, Recurring | Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | 64,877 | 68,436 |
Fair Value, Measurements, Recurring | Collateralized loan obligations. | ||
Assets: | ||
Securities available-for-sale | 177,020 | 171,881 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total financial assets | 191,274 | 169,574 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 191,274 | 169,574 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Loans held-for-sale | 2,291 | 1,322 |
Total financial assets | 975,643 | 1,014,639 |
Liabilities: | ||
Mortgage banking derivatives | 10 | |
Total | 7,835 | 8,334 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest rate swap agreements, including risk participation agreement | ||
Liabilities: | ||
Mortgage banking derivatives | 7,835 | 8,324 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Forward Contracts | ||
Assets: | ||
Interest rate derivatives | 64 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest Rate Products | ||
Assets: | ||
Interest rate derivatives | 6,095 | 5,391 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 37,298 | 56,959 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage Backed Securities, Issued by US Government Agencies | ||
Assets: | ||
Securities available-for-sale | 96,872 | 106,370 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 207,738 | 214,006 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 386,055 | 392,544 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | 62,210 | 66,166 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Collateralized loan obligations. | ||
Assets: | ||
Securities available-for-sale | 177,020 | 171,881 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets: | ||
Mortgage servicing rights | 10,488 | 10,344 |
Total financial assets | 25,682 | 25,673 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 12,527 | 13,059 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Asset-backed Securities | ||
Assets: | ||
Securities available-for-sale | $ 2,667 | $ 2,270 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in Level 3 | ||
Transfers into Level 3 | $ 0 | |
Collateralized Mortgage 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) | |
Asset-backed Securities | ||
Changes in Level 3 | ||
Beginning balance | 2,270 | 16,740 |
Transfers out of Level 3 | (14,885) | |
Total gains or losses | ||
Included in earnings | (11) | |
Included in other comprehensive income | (98) | 206 |
Purchases, issuances, sales, and settlements | ||
Purchases | 547 | 406 |
Settlements | (52) | (521) |
Ending balance | (2,667) | 1,935 |
Collateralized loan obligations. | ||
Changes in Level 3 | ||
Transfers out of Level 3 | 6,800 | |
States and political subdivisions | ||
Changes in Level 3 | ||
Beginning balance | 13,059 | 12,501 |
Total gains or losses | ||
Included in earnings | (66) | (66) |
Included in other comprehensive income | (390) | 642 |
Purchases, issuances, sales, and settlements | ||
Settlements | (76) | (74) |
Ending balance | (12,527) | 13,003 |
Mortgage Servicing rights | ||
Changes in Level 3 | ||
Beginning balance | 10,344 | 11,189 |
Total gains or losses | ||
Included in earnings | 88 | 6,155 |
Purchases, issuances, sales, and settlements | ||
Issuances | 288 | 281 |
Settlements | (232) | (6,584) |
Ending balance | $ (10,488) | $ 11,041 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information (Details) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | $ 10,488,000 | $ 10,344,000 |
Securities available-for-sale, at fair value | 1,173,661,000 | 1,192,829,000 |
Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 10,488,000 | 10,344,000 |
Securities available-for-sale, at fair value | 15,194,000 | 15,329,000 |
Asset-backed Securities | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 64,877,000 | 68,436,000 |
States and political subdivisions | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 220,265,000 | 227,065,000 |
Collateralized mortgage obligations | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 386,055,000 | 392,544,000 |
Fair Value, Measurements, Recurring | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 10,488,000 | 10,344,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 10,488,000 | 10,344,000 |
Fair Value, Measurements, Recurring | Asset-backed Securities | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 64,877,000 | 68,436,000 |
Fair Value, Measurements, Recurring | Asset-backed Securities | Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 2,667,000 | 2,270,000 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 220,265,000 | 227,065,000 |
Fair Value, Measurements, Recurring | States and political subdivisions | Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 12,527,000 | 13,059,000 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | 386,055,000 | 392,544,000 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | $ 2,667,000 | $ 2,270,000 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.056 | 0.056 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.056 | 0.056 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Asset-backed Securities | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.056 | 0.056 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | $ 10,488,000 | $ 10,344,000 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.090 | |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.110 | |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.090 | 0.090 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Securities available-for-sale, at fair value | $ 12,527,000 | $ 13,059,000 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.090 | |
Debt Securities, Measurement Input | 0.042 | 0.032 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.110 | |
Debt Securities, Measurement Input | 0.043 | 0.054 |
Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.043 | 0.047 |
Fair Value, Measurements, Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.028 | 0.051 |
Fair Value, Measurements, Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.306 | 0.330 |
Fair Value, Measurements, Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average | ||
Quantitative information about Level 3 fair value measurements | ||
Servicing Asset, Measurement Input | 0.067 | 0.066 |
Fair Value, Measurements, Recurring | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.005 | 0.005 |
Fair Value, Measurements, Recurring | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Debt Securities, Measurement Input | 0.005 | 0.005 |
Fair Value, Measurements, Recurring | Measurement Input, Liquidity Premium | States and political subdivisions | Discounted Cash Flow Valuation Technique | Fair Value, Inputs, Level 3 | Weighted Average | ||
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 ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets and liabilities measured at fair value | ||||||
Carrying value of other real estate owned | $ 6,920,000 | $ 5,123,000 | $ 5,123,000 | $ 761,000 | $ 1,255,000 | $ 1,561,000 |
OREO Valuation allowance | 118,000 | 118,000 | $ 118,000 | $ 114,000 | $ 853,000 | $ 856,000 |
Impaired Loans | Reported Value Measurement | ||||||
Assets and liabilities measured at fair value | ||||||
Increase (decrease) of specific allocations within the provision for loan losses | 6,500,000 | |||||
Fair Value, Measurements, Nonrecurring | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 40,002,000 | 71,303,000 | ||||
Fair Value, Measurements, Nonrecurring | Impaired Loans | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 33,082,000 | 66,180,000 | ||||
Valuation allowance | 5,400,000 | 11,100,000 | ||||
Decrease of specific allocations within the provision for loan losses | 5,700,000 | |||||
Fair Value, Measurements, Nonrecurring | Impaired Loans | Reported Value Measurement | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 38,500,000 | 77,300,000 | ||||
Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 6,920,000 | 5,123,000 | ||||
Carrying value of other real estate owned | 6,900,000 | 5,100,000 | ||||
Outstanding balance | 7,000,000 | 5,200,000 | ||||
OREO Valuation allowance | 118,000 | 118,000,000 | ||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 40,002,000 | 71,303,000 | ||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Impaired Loans | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 33,082,000 | 66,180,000 | ||||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||||||
Assets and liabilities measured at fair value | ||||||
Total | $ 6,920,000 | $ 5,123,000 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Cash and due from banks | $ 54,888 | $ 55,534 |
Interest earning deposits with financial institutions | 66,004 | 44,611 |
Securities available-for-sale | 1,173,661 | 1,192,829 |
FHLBC and FRBC Stock | 32,005 | 33,355 |
Mortgage servicing rights | 10,488 | 10,344 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,728,487 | 1,834,891 |
Other short-term borrowings | 330,000 | 405,000 |
Junior subordinated debentures | 25,773 | 25,773 |
Reported Value Measurement | ||
Financial assets: | ||
Cash and due from banks | 54,888 | 55,534 |
Interest earning deposits with financial institutions | 66,004 | 44,611 |
Securities available-for-sale | 1,173,661 | 1,192,829 |
FHLBC and FRBC Stock | 32,005 | 33,355 |
Loans held for sale | 2,291 | 1,322 |
Net loans | 3,934,326 | 3,998,689 |
Mortgage servicing rights | 10,488 | 10,344 |
Interest rate swap and rate cap agreements | 6,051 | 5,302 |
Interest rate lock commitments and forward contracts | 64 | |
Interest receivable on securities and loans | 26,086 | 27,159 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,728,487 | 1,834,891 |
Interest bearing deposits | 2,793,241 | 2,735,855 |
Securities sold under repurchase agreements | 46,542 | 26,470 |
Other short-term borrowings | 330,000 | 405,000 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,425 | 59,382 |
Interest rate swap and rate cap agreements | 7,827 | 8,234 |
Interest rate lock commitments and forward contracts | 10 | |
Interest payable on deposits and borrowings | 3,483 | 2,962 |
Estimate of Fair Value Measurement | ||
Financial assets: | ||
Cash and due from banks | 54,888 | 55,534 |
Interest earning deposits with financial institutions | 66,004 | 44,611 |
Securities available-for-sale | 1,173,661 | 1,192,829 |
FHLBC and FRBC Stock | 32,005 | 33,355 |
Loans held for sale | 2,291 | 1,322 |
Net loans | 3,857,223 | 3,876,381 |
Mortgage servicing rights | 10,488 | 10,344 |
Interest rate swap and rate cap agreements | 6,051 | 5,302 |
Interest rate lock commitments and forward contracts | 64 | |
Interest receivable on securities and loans | 26,086 | 27,159 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,728,487 | 1,834,891 |
Interest bearing deposits | 2,783,984 | 2,726,223 |
Securities sold under repurchase agreements | 46,542 | 26,470 |
Other short-term borrowings | 330,000 | 405,000 |
Junior subordinated debentures | 20,620 | 20,361 |
Subordinated debentures | 50,075 | 47,982 |
Interest rate swap and rate cap agreements | 7,827 | 8,324 |
Interest rate lock commitments and forward contracts | 10 | |
Interest payable on deposits and borrowings | 3,483 | 2,962 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Cash and due from banks | 54,888 | 55,534 |
Interest earning deposits with financial institutions | 66,004 | 44,611 |
Securities available-for-sale | 191,274 | 169,574 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,728,487 | 1,834,891 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Securities available-for-sale | 967,193 | 1,007,926 |
FHLBC and FRBC Stock | 32,005 | 33,355 |
Loans held for sale | 2,291 | 1,322 |
Interest rate swap and rate cap agreements | 6,051 | 5,302 |
Interest rate lock commitments and forward contracts | 64 | |
Interest receivable on securities and loans | 26,086 | 27,159 |
Financial liabilities: | ||
Interest bearing deposits | 2,783,984 | 2,726,223 |
Securities sold under repurchase agreements | 46,542 | 26,470 |
Other short-term borrowings | 330,000 | 405,000 |
Junior subordinated debentures | 20,620 | 20,361 |
Subordinated debentures | 50,075 | 47,982 |
Interest rate swap and rate cap agreements | 7,827 | 8,324 |
Interest rate lock commitments and forward contracts | 10 | |
Interest payable on deposits and borrowings | 3,483 | 2,962 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Securities available-for-sale | 15,194 | 15,329 |
Net loans | 3,857,223 | 3,876,381 |
Mortgage servicing rights | $ 10,488 | $ 10,344 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Fair Value of Derivatives (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 USD ($) item | Dec. 31, 2023 USD ($) item | Mar. 31, 2023 USD ($) | |
Two financial institutions | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Cash collateral pledged with financial institutions, dollars | $ 6,800,000 | $ 7,300,000 | |
Number of financial institutions in which cash collateral pledged | item | 2 | ||
Interest Rate Swap | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Cash collateral pledged with financial institutions, dollars | 5,400,000 | $ 4,100,000 | |
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 | $ 3,618,000 | $ 2,576,000 | |
Derivative liabilities designated as hedging instruments, fair value | 5,394,000 | 5,598,000 | |
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 | 300,000,000 | |
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 | 5 | |
Notional amount | $ 325,774,000 | $ 325,774,000 | |
Derivative assets designated as hedging instruments, fair value | 3,618,000 | ||
Derivative liabilities designated as hedging instruments, fair value | 5,394,000 | 5,598,000 | |
Designated as Hedging Instrument | Interest Rate Swap | OSBC Affiliates | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Derivative assets designated as hedging instruments, fair value | $ 2,576,000 | ||
Not Designated as Hedging Instrument | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Derivative assets designated as hedging instruments, fair value | 2,541,000 | ||
Derivative liabilities designated as hedging instruments, fair value | $ 2,441,000 | ||
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 | 16 | 17 | |
Notional amount | $ 130,775,000 | $ 104,777,000 | |
Derivative assets designated as hedging instruments, fair value | 2,433,000 | 2,726,000 | |
Derivative liabilities designated as hedging instruments, fair value | 2,433,000 | 2,726,000 | |
Not Designated as Hedging Instrument | Interest Rate Swap | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Notional amount | 97,900,000 | 104,800,000 | |
Not Designated as Hedging Instrument | Interest rate cap | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Notional amount | 32,900,000 | 0 | |
Not Designated as Hedging Instrument | Commitments. | |||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||
Notional amount | $ 13,700,000 | $ 8,400,000 | |
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 | 45 | 4 | |
Notional amount | $ 13,687,000 | $ 44,790,000 | |
Derivative assets designated as hedging instruments, fair value | $ 64,000 | $ 89,000 | |
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 | 24 | ||
Notional amount | $ 8,375,000 | ||
Derivative liabilities designated as hedging instruments, fair value | 10,000 | ||
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 | $ 39,021,000 | ||
Derivative assets designated as hedging instruments, fair value | 44,000 | 2,805,000 | |
Derivative liabilities designated as hedging instruments, fair value | 8,000 | $ 2,726,000 | |
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 | 5,100,000 | ||
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 | $ 608,000 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Effect of Fair Value (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||
Amount of loss recognized in OCI on derivative | $ 1.3 | $ 5.3 |
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 3.2 | $ 2.4 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Company's contractual commitments due to letters of credit | ||
Total letters of credit | $ 30,515,000 | $ 31,112,000 |
Allowance for credit loss on unfunded commitments | 2,500,000 | |
Decrease In allowance for credit loss on unfunded commitments | 199,000 | |
Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 791,000 | 735,000 |
Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 29,724,000 | 30,377,000 |
Commitments to Extend Credit to Borrowers | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 30,448,000 | 31,045,000 |
Commitments to Extend Credit to Borrowers | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 791,000 | 735,000 |
Commitments to Extend Credit to Borrowers | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 29,657,000 | 30,310,000 |
Commitments to Extend Credit to Borrowers | Financial Standby Letter of Credit | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 17,419,000 | 16,794,000 |
Commitments to Extend Credit to Borrowers | Financial Standby Letter of Credit | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 229,000 | 173,000 |
Commitments to Extend Credit to Borrowers | Financial Standby Letter of Credit | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 17,190,000 | 16,621,000 |
Commitments to Extend Credit to Borrowers | Performance Guarantee | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 13,029,000 | 14,251,000 |
Commitments to Extend Credit to Borrowers | Performance Guarantee | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 562,000 | 562,000 |
Commitments to Extend Credit to Borrowers | Performance Guarantee | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 12,467,000 | 13,689,000 |
Commitments to Extend Credit Nonborrowers | Performance Guarantee | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 67,000 | 67,000 |
Commitments to Extend Credit Nonborrowers | Performance Guarantee | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 67,000 | 67,000 |
Unused lines of Credit | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | 793,945,000 | 835,265,000 |
Unused lines of Credit | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | 158,385,000 | 140,305,000 |
Unused lines of Credit | Variable | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | $ 635,560,000 | $ 694,960,000 |