Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 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 | 44,461,045 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000357173 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 41,511 | $ 38,565 |
Interest earning deposits with financial institutions | 593,166 | 713,542 |
Cash and cash equivalents | 634,677 | 752,107 |
Securities available-for-sale, at fair value | 1,816,450 | 1,692,488 |
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock | 21,974 | 13,257 |
Loans held-for-sale | 8,075 | 4,737 |
Loans | 3,402,370 | 3,421,948 |
Less: allowance for credit losses on loans | 44,308 | 44,281 |
Net loans | 3,358,062 | 3,377,667 |
Premises and equipment, net | 86,156 | 88,005 |
Other real estate owned | 2,374 | 2,356 |
Mortgage servicing rights, at fair value | 10,376 | 7,097 |
Goodwill | 86,332 | 86,332 |
Core deposit intangible | 15,639 | 16,304 |
Bank-owned life insurance ("BOLI") | 105,424 | 105,300 |
Deferred tax assets, net | 22,628 | 6,100 |
Other assets | 55,579 | 60,439 |
Total assets | 6,223,746 | 6,212,189 |
Deposits: | ||
Noninterest bearing demand | 1,461,712 | 1,428,055 |
Interest bearing: | ||
Savings, NOW, and money market | 3,605,457 | 3,534,367 |
Time | 477,556 | 503,810 |
Total deposits | 5,544,725 | 5,466,232 |
Securities sold under repurchase agreements | 33,521 | 50,337 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,233 | 59,212 |
Senior notes | 44,506 | 44,480 |
Notes payable and other borrowings | 17,992 | 19,074 |
Other liabilities | 31,678 | 45,054 |
Total liabilities | 5,757,428 | 5,710,162 |
Stockholders' Equity | ||
Common stock | 44,705 | 44,705 |
Additional paid-in capital | 203,190 | 202,443 |
Retained earnings | 261,807 | 252,011 |
Accumulated other comprehensive (loss) income | (37,484) | 8,768 |
Treasury stock | (5,900) | (5,900) |
Total stockholders' equity | 466,318 | 502,027 |
Total liabilities and stockholders' equity | $ 6,223,746 | $ 6,212,189 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Common stock, Par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, Shares authorized | 60,000,000 | 60,000,000 |
Common stock, Shares issued | 44,705,150 | 44,705,150 |
Common stock, Shares outstanding | 44,461,045 | 44,461,045 |
Treasury stock, Shares | 244,105 | 244,105 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and dividend income | ||
Loans, including fees | $ 36,376 | $ 22,207 |
Loans held-for-sale | 57 | 55 |
Securities: | ||
Taxable | 5,047 | 1,615 |
Tax exempt | 1,433 | 1,307 |
Dividends from FHLBC and FRBC stock | 153 | 115 |
Interest bearing deposits with financial institutions | 269 | 92 |
Total interest and dividend income | 43,335 | 25,391 |
Interest expense | ||
Savings, NOW, and money market deposits | 397 | 241 |
Time deposits | 277 | 500 |
Securities sold under repurchase agreements | 11 | 31 |
Junior subordinated debentures | 280 | 280 |
Subordinated debentures | 546 | |
Senior notes | 485 | 673 |
Notes payable and other borrowings | 103 | 123 |
Total interest expense | 2,099 | 1,848 |
Net interest and dividend income | 41,236 | 23,543 |
Release of credit losses | (3,000) | |
Net interest and dividend income after release of credit losses | 41,236 | 26,543 |
Noninterest income | ||
Mortgage servicing rights mark to market gain | 2,978 | 1,113 |
Net gain on sales of mortgage loans | 1,495 | 3,721 |
Change in cash surrender value of BOLI | 124 | 334 |
Card related income | 2,550 | 1,447 |
Other income | 901 | 450 |
Total noninterest income | 13,493 | 11,300 |
Noninterest expense | ||
Salaries and employee benefits | 19,967 | 13,506 |
Occupancy, furniture and equipment | 3,733 | 2,467 |
Computer and data processing | 6,228 | 1,298 |
FDIC insurance | 410 | 201 |
General bank insurance | 315 | 276 |
Amortization of core deposit intangible | 665 | 120 |
Advertising expense | 182 | 60 |
Card related expense | 534 | 593 |
Legal fees | 294 | 55 |
Consulting & management fees | 605 | 416 |
Other real estate (gain) expense, net | (12) | 36 |
Other expense | 5,365 | 2,710 |
Total noninterest expense | 38,286 | 21,738 |
Income before income taxes | 16,443 | 16,105 |
Provision for income taxes | 4,423 | 4,226 |
Net income | $ 12,020 | $ 11,879 |
Basic earnings per share | $ 0.27 | $ 0.41 |
Diluted earnings per share | 0.27 | 0.40 |
Dividends declared per share | $ 0.05 | $ 0.01 |
Trust Income | ||
Noninterest income | ||
Service charges on deposits | $ 2,698 | $ 2,151 |
Deposit Account | ||
Noninterest income | ||
Service charges on deposits | 2,090 | 1,195 |
Secondary mortgage fees | ||
Noninterest income | ||
Service charges on deposits | 139 | 322 |
Bank Servicing | ||
Noninterest income | ||
Service charges on deposits | $ 518 | $ 567 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Statements of Comprehensive (Loss) Income | ||
Net Income | $ 12,020 | $ 11,879 |
Unrealized holding losses on available-for-sale securities arising during the period | (64,829) | (4,813) |
Related tax benefit | 18,153 | 1,371 |
Holding losses, after tax, on available-for-sale securities | (46,676) | (3,442) |
Other comprehensive loss on available-for-sale securities | (46,676) | (3,442) |
Changes in fair value of derivatives used for cash flow hedges | 589 | 2,703 |
Related tax expense | (165) | (757) |
Other comprehensive income on cash flow hedges | 424 | 1,946 |
Total other comprehensive loss | (46,252) | (1,496) |
Total comprehensive (loss) income | $ (34,232) | $ 10,383 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 12,020 | $ 11,879 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net premium / discount amortization on securities | 1,809 | 534 |
Release of provision for credit losses | (3,000) | |
Originations of loans held-for-sale | (32,739) | (78,284) |
Proceeds from sales of loans held-for-sale | 30,791 | 85,914 |
Net gains on sales of mortgage loans | (1,495) | (3,721) |
Mortgage servicing rights mark to market loss | (2,978) | (1,113) |
Net accretion of discount on loans | (2,382) | (520) |
Net change in cash surrender value of BOLI | (124) | (334) |
Net gains on sale of other real estate owned | (49) | (20) |
Provision for other real estate owned valuation losses | 6 | |
Depreciation of fixed assets and amortization of leasehold improvements | 1,086 | 765 |
Amortization of core deposit intangibles | 665 | 120 |
Change in current income taxes receivable | 2,955 | 3,557 |
Deferred tax expense (benefit) | 1,458 | 668 |
Change in accrued interest receivable and other assets | 902 | 2,200 |
Accretion of purchase accounting adjustment on time deposits | (424) | |
Amortization of senior and subordinated debentures issuance costs | 47 | 26 |
Change in accrued interest payable and other liabilities | (12,011) | (3,401) |
Stock based compensation | 747 | 114 |
Net cash provided by operating activities | 278 | 15,390 |
Cash flows from investing activities | ||
Proceeds from maturities and calls, including pay down of securities available-for-sale | 75,650 | 7,259 |
Purchases of securities available-for-sale | (266,250) | (109,708) |
Purchases of FHLBC/FRBC stock | (8,717) | |
Net change in loans | 21,900 | 75,858 |
Proceeds from sales of other real estate owned, net of participations and improvements | 118 | 325 |
Proceeds from disposition of fixed assets | 1,250 | |
Net purchases of premises and equipment | (487) | (343) |
Net cash used in investing activities | (176,536) | (26,609) |
Cash flows from financing activities | ||
Net change in deposits | 78,917 | 119,469 |
Net change in securities sold under repurchase agreements | (16,816) | 10,341 |
Repayment of term note | (1,000) | (1,000) |
Net change in notes payable and other borrowings, excluding term note | (81) | (78) |
Dividends paid on common stock | (2,192) | (293) |
Purchase of treasury stock | (6,178) | |
Net cash provided by financing activities | 58,828 | 122,261 |
Net change in cash and cash equivalents | (117,430) | 111,042 |
Cash and cash equivalents at beginning of period | 752,107 | 329,903 |
Cash and cash equivalents at end of period | $ 634,677 | $ 440,945 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2020 | $ 34,957 | $ 122,212 | $ 236,579 | $ 14,762 | $ (101,423) | $ 307,087 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income | 11,879 | 11,879 | ||||
Other comprehensive income (loss), net of tax | (1,496) | (1,496) | ||||
Dividends declared and paid | (293) | (293) | ||||
Vesting of restricted stock | (2,251) | 2,251 | ||||
Stock based compensation | 114 | 114 | ||||
Purchase of treasury stock from taxes withheld on stock awards | (577) | (577) | ||||
Purchase of treasury stock from stock repurchase program | (5,601) | (5,601) | ||||
Balance at Mar. 31, 2021 | 34,957 | 120,075 | 248,165 | 13,266 | (105,350) | 311,113 |
Balance at Dec. 31, 2021 | 44,705 | 202,443 | 252,011 | 8,768 | (5,900) | 502,027 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income | 12,020 | 12,020 | ||||
Other comprehensive income (loss), net of tax | (46,252) | (46,252) | ||||
Dividends declared and paid | (2,224) | (2,224) | ||||
Stock based compensation | 747 | 747 | ||||
Balance at Mar. 31, 2022 | $ 44,705 | $ 203,190 | $ 261,807 | $ (37,484) | $ (5,900) | $ 466,318 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ 502,027 | $ 307,087 |
Other comprehensive (loss) income, net of tax | (46,252) | (1,496) |
Balance | $ 466,318 | $ 311,113 |
Dividend declared and paid (per share) | $ 0.05 | $ 0.01 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ 8,768 | $ 14,762 |
Other comprehensive (loss) income, net of tax | (46,252) | (1,496) |
Balance | (37,484) | 13,266 |
Accumulated Unrealized Gain (Loss) on Securities Available-for-Sale | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 11,139 | 17,413 |
Other comprehensive (loss) income, net of tax | (46,676) | (3,442) |
Balance | (35,537) | 13,971 |
Accumulated Unrealized Gain (Loss) on Derivative Instruments | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (2,371) | (2,651) |
Other comprehensive (loss) income, net of tax | 424 | 1,946 |
Balance | $ (1,947) | $ (705) |
Basis of Presentation and Chang
Basis of Presentation and Changes in Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These interim consolidated financial statements 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, 2021. 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. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” Note 1 – Summary of Significant Accounting Policies, Financial Instruments – Measurement of Credit Losses on Financial Instruments (Topic 326) Recent Accounting Pronouncements The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company : ASU 2018-16, ASU 2020-04 and ASU 2021-01 - Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting. Reference Rate Reform The Company formed a LIBOR transition team in 2019, and has developed a project plan to assess the use of alternative indexes and to seek to ensure all financial instruments that reference LIBOR are identified, quantified, and researched for the LIBOR fallback language available or needed. The Company has completed the ISDA protocol adherence for LIBOR fallback language for all commercial swaps, has met with our commercial loan clients to also guide their swap fallback language adherence, and worked to revise all credit documents being issued by our Bank for new loans to ensure appropriate fallback language is included. We have discontinued the use of LIBOR as a reference rate for all consumer loans issued after July 31, 2021, and all commercial loans issued after December 31, 2021, with certain exceptions for those loans that were in the process of funding at the end of 2021. The Company’s systems have been updated to handle multiple SOFR-based indexes and we continue to meet regularly to plan for the transition of existing LIBOR exposures prior to the final LIBOR cessation date of June 30, 2023. ASU 2022-02 Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The Company is currently reviewing ASU 2022-02 for the impact to TDR recognition, measurement and disclosures, and will assess any revisions needed for reporting purposes in the next few quarters. We anticipate adopting ASU 2022-02 as of January 1, 2023. 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, 2021. 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 first quarter of 2022, the Company had no changes to significant accounting policies or estimates. Subsequent Events On April 19, 2022, the Company’s Board of Directors declared a cash dividend of $0.05 per share payable on May 9, 2022, to stockholders of record as of April 29, 2022; dividends of $2.2 million are scheduled to be paid to stockholders on May 9, 2022. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Acquisition | |
Acquisition | Note 2 – Acquisition On December 1, 2021, the Company completed its acquisition of West Suburban Bancorp, Inc. (“West Suburban”), a bank holding company, and its wholly owned subsidiary, West Suburban Bank, based in Lombard, Illinois, with operations throughout our existing market footprint. This acquisition brought increased scale and new markets to the Company, and provided new product offerings and line of business opportunities. At closing, the Company acquired $2.94 billion of assets, $1.50 billion of loans, $1.07 billion of securities, and $2.69 billion of deposits, net of fair value adjustments. Under the terms of the merger agreement, each outstanding share of West Suburban common stock was exchanged for 42.413 shares of Company common stock, plus $271.15 of cash. This resulted in merger consideration of $295.2 million, based on the closing price of the Company’s common stock on the date of acquisition, which consisted of 15.7 million shares of the Company’s common stock and $100.7 million of cash. Goodwill of $67.7 million associated with the acquisition was recorded by the Company, which was the result of expected synergies, operational efficiencies and other factors. The acquisition of West Suburban was accounted for as a business combination. We recorded the estimate of fair value based on initial valuations available at December 1, 2021. The determination of estimated fair value required management to make assumptions related to discount rates, expected future cash flows, market conditions and other future events that are often subjective in nature and may require adjustments. Accordingly, these estimated fair values are considered preliminary as of March 31, 2022, and are subject to adjustment for up to one year after December 1, 2021. These adjustments may include: (i) changes in deferred tax assets or liabilities related to fair value estimates and changes in the expected realization of items considered to be net operating loss carryforwards due to tax calculations still in process, and (ii) changes in goodwill as a result of the net effect of any adjustments. No adjustments were identified during the quarter ended March 31, 2022. None of the $67.7 million of goodwill recorded is expected to be deductible for income tax purposes. The following table provides the preliminary purchase price allocation as of the December 1, 2021 closing date of the merger for the estimated fair value of the assets acquired and liabilities assumed, as recorded by the Company. West Suburban Acquisition Summary As of Date of Acquisition December 1, 2021 Assets Cash and due from banks $ 16,794 Interest bearing deposits with financial institutions 232,880 Securities available-for-sale and held-to maturity, at fair value 1,066,373 FHLBC stock 3,340 Loans, net of allowance for credit losses Day One PCD loan adjustment 1,502,118 Premises and equipment 47,456 Other real estate owned 5,552 Core deposit intangible 14,772 Deferred tax assets 2,093 Other assets 52,710 Total assets $ 2,944,088 Liabilities Noninterest bearing demand $ 409,141 Savings, NOW and money market 2,069,890 Time 215,205 Total deposits 2,694,236 Reserve for unfunded commitments 1,787 Other liabilities 20,629 Total liabilities 2,716,652 Cash consideration paid 100,679 Stock issued for acquisition 194,484 Total Liabilities Assumed and Cash and Stock Consideration Paid for Acquisition $ 3,011,815 Goodwill $ 67,727 Expenses related to the West Suburban acquisition totaled $5.6 million for the quarter ended March 31, 2022, and $13.2 million during the year ended December 31, 2021, and are reported within noninterest expense based on the line items impacted, which are primarily salaries and employee benefits, occupancy, furniture and equipment, computer and data processing, legal fees, and other expense in the Consolidated Statements of Income. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered purchased credit deteriorated (“PCD”) loans. For PCD loans, the initial estimate of expected credit losses was recognized in the allowance for credit losses (“ACL”) on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans purchased as part of the West Suburban acquisition which were individually evaluated and determined to be PCD loans at acquisition. As of West Suburban Acquired PCD Loans December 1, 2021 Par value of acquired loans $ 108,241 Allowance for credit losses (12,075) Non-credit discount (1,723) Purchase price of PCD loans at acquisition $ 94,443 The following table presents the carrying amount of all acquired loans as of March 31, 2022 and December 21, 2021, including loans that, as of the acquisition date, had not experienced a more-than-insignificant deterioration in credit quality since origination (“non-PCD loans”): Acquired Loan Detail As of March 31, 2022 As of December 31, 2021 PCD Non-PCD Total PCD Non-PCD Total West Suburban acquired loans $ 88,601 $ 1,354,305 $ 1,442,906 $ 102,409 $ 1,418,752 $ 1,521,161 ABC Bank acquired loans 4,534 57,904 62,438 4,547 64,236 68,783 Talmer Bank acquired loans - 44,836 44,836 - 45,858 45,858 Total acquired loans net book value $ 93,135 $ 1,457,045 $ 1,550,180 $ 106,956 $ 1,528,846 $ 1,635,802 Accretion recorded on acquired loans year to date $ 400 $ 2,016 $ 2,416 $ 401 $ 565 $ 966 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2022 | |
Securities | |
Securities | Note 3 – Securities Investment Portfolio Management Our investment portfolio serves the liquidity needs and income objectives of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. Investments are comprised of debt securities and non-marketable equity investments. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. Federal Home Loan Bank of Chicago (“FHLBC”) and Federal Reserve Bank of Chicago (“FRBC”) stock are considered nonmarketable equity investments. FHLBC stock was recorded at $7.1 million at March 31, 2022, and December 31, 2021. FRBC stock was recorded at $14.9 million at March 31, 2022, and $6.2 million at December 31, 2021. The following tables summarize the amortized cost and fair value of the securities portfolio at March 31, 2022, and December 31, 2021, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2022 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 227,646 $ 13 $ (7,096) $ 220,563 U.S. government agencies 62,029 - (2,993) 59,036 U.S. government agencies mortgage-backed 161,119 117 (8,088) 153,148 States and political subdivisions 237,988 4,358 (5,938) 236,408 Corporate bonds 10,000 - (317) 9,683 Collateralized mortgage obligations 720,960 298 (24,745) 696,513 Asset-backed securities 278,941 240 (4,240) 274,941 Collateralized loan obligations 167,124 3 (969) 166,158 Total securities available-for-sale $ 1,865,807 $ 5,029 $ (54,386) $ 1,816,450 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2021 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 202,251 $ 125 $ (37) $ 202,339 U.S. government agencies 62,587 - (699) 61,888 U.S. government agencies mortgage-backed 172,016 856 (570) 172,302 States and political subdivisions 240,793 16,344 (672) 256,465 Corporate bonds 10,000 - (113) 9,887 Collateralized mortgage obligations 673,238 2,014 (2,285) 672,967 Asset-backed securities 236,293 1,245 (661) 236,877 Collateralized loan obligations 79,838 3 (78) 79,763 Total securities available-for-sale $ 1,677,016 $ 20,587 $ (5,115) $ 1,692,488 1 Excludes accrued interest receivable of $5.2 million and $4.3 million at March 31, 2022 and December 31, 2021, respectively, that is recorded in other assets on the consolidated balance sheet. The fair value, amortized cost and weighted average yield of debt securities at March 31, 2022, 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 $ 7,451 1.47 % $ 7,458 Due after one year through five years 300,065 0.95 289,731 Due after five years through ten years 46,076 2.50 44,739 Due after ten years 184,071 2.98 183,762 537,663 1.78 525,690 Mortgage-backed and collateralized mortgage obligations 882,079 1.50 849,661 Asset-backed securities 278,941 1.33 274,941 Collateralized loan obligations 167,124 2.06 166,158 Total securities available-for-sale $ 1,865,807 1.61 % $ 1,816,450 At March 31, 2022, the Company’s investments included $218.1 million of asset-backed securities that are backed by student loans originated under the Federal Family Education Loan program (“FFEL”). Under the FFEL, private lenders made federally guaranteed student loans to parents and students. While the program was modified several times before elimination in 2010, FFEL securities are generally guaranteed by the U.S Department of Education (“DOE”) at not less than 97% of the outstanding principal amount of the loans. The guarantee will reduce to 85% if the DOE receives reimbursement requests in excess of 5% of insured loans; reimbursement will drop to 75% if reimbursement requests exceed 9% of insured loans. In addition to the DOE guarantee, total added credit enhancement in the form of overcollateralization and/or subordination amounted to $20.3 million, or 9.29%, of outstanding principal. At March 31, 2022, 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries 5 $ 7,096 $ 216,531 - $ - $ - 5 $ 7,096 $ 216,531 U.S. government agencies 5 2,884 54,588 4 109 4,448 9 2,993 59,036 U.S. government agencies mortgage-backed 124 7,322 142,866 5 766 5,341 129 8,088 148,207 States and political subdivisions 27 4,535 90,991 1 1,403 3,232 28 5,938 94,223 Corporate bonds 2 317 9,683 - - - 2 317 9,683 Collateralized mortgage obligations 208 24,649 647,144 1 96 7,366 209 24,745 654,510 Asset-backed securities 41 4,109 230 4 131 4,534 45 4,240 4,764 Collateralized loan obligations 22 885 128,303 2 84 10,587 24 969 138,890 Total securities available-for-sale 434 $ 51,797 $ 1,290,336 17 $ 2,589 $ 35,508 451 $ 54,386 $ 1,325,844 Less than 12 months 12 months or more December 31, 2021 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries 1 $ 37 $ 49,719 - $ - $ - 1 $ 37 $ 49,719 U.S. government agencies 5 592 56,879 4 107 5,008 9 699 61,887 U.S. government agencies mortgage-backed 63 505 78,711 1 65 1,663 64 570 80,374 States and political subdivisions 7 55 8,430 1 617 4,051 8 672 12,481 Corporate bonds 2 113 9,887 - - - 2 113 9,887 Collateralized mortgage obligations 133 2,285 381,658 - - - 133 2,285 381,658 Asset-backed securities 20 608 103,819 3 53 3,276 23 661 107,095 Collateralized loan obligations 10 35 45,132 2 43 10,628 12 78 55,760 Total securities available-for-sale 241 $ 4,230 $ 734,235 11 $ 885 $ 24,626 252 $ 5,115 $ 758,861 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. No credit losses were determined to be present as of March 31, 2022, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the first quarter of 2022. There were no securities sold for the three months ended March 31, 2022 or March 31, 2021. As of March 31, 2022, securities valued at $478.2 million were pledged to secure deposits and borrowings, and for other purposes, a decrease from $501.3 million of securities pledged at year-end 2021. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Allowance for Credit Losses on Loans | |
Loans and Allowance for Credit Losses on Loans | Note 4 – Loans and Allowance for Credit Losses on Loans Major segments of loans were as follows: March 31, 2022 December 31, 2021 Commercial 1 $ 695,545 $ 771,474 Leases 211,132 176,031 Commercial real estate - Investor 965,767 957,389 Commercial real estate - Owner occupied 655,792 574,384 Construction 165,558 206,132 Residential real estate - Investor 62,846 63,399 Residential real estate - Owner occupied 203,118 213,248 Multifamily 298,686 309,164 HELOC 110,688 115,664 HELOC - Purchased 9,553 10,626 Other 2 23,685 24,437 Total loans 3,402,370 3,421,948 Allowance for credit losses on loans (44,308) (44,281) Net loans 3 $ 3,358,062 $ 3,377,667 1 Includes $11.2 million and $38.4 million of Paycheck Protection Program (“PPP”) loans at March 31, 2022 and December 31, 2021, respectively. 2 The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans. 3 Excludes accrued interest receivable of $9.6 million and $9.2 million at March 31, 2022 and December 31, 2021, respectively, that is recorded in other assets on the consolidated balance sheet. It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to assure access to collateral, in the event of borrower default, through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. Although the Bank makes loans primarily within its market area, there are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. The real estate related categories listed above represent 72.7% and 71.6% of the portfolio at March 31, 2022, and December 31, 2021, respectively, and include a mix of owner and non-owner occupied, 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 months ended March 31, 2022 and 2021: Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended March 31, 2022 Commercial $ 11,751 $ 825 $ 30 $ 30 $ 12,576 Leases 3,480 (907) - - 2,573 Commercial real estate - Investor 13,093 2,679 236 23 15,559 Commercial real estate - Owner occupied 2,615 768 121 8 3,270 Construction 3,373 (515) - - 2,858 Residential real estate - Investor 760 (67) - 10 703 Residential real estate - Owner occupied 2,832 (965) - 83 1,950 Multifamily 3,675 (698) - - 2,977 HELOC 2,379 (820) - 35 1,594 HELOC - Purchased 131 (50) - - 81 Other 192 70 127 32 167 $ 44,281 $ 320 $ 514 $ 221 $ 44,308 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended March 31, 2021 Commercial $ 2,812 $ 446 $ 2 $ 20 $ 3,276 Leases 3,888 (506) - - 3,382 Commercial real estate - Investor 9,205 (1,317) - 20 7,908 Commercial real estate - Owner occupied 2,251 (734) 3 208 1,722 Construction 4,054 (335) - - 3,719 Residential real estate - Investor 1,740 (203) - 266 1,803 Residential real estate - Owner occupied 2,714 (235) - 49 2,528 Multifamily 3,625 640 - - 4,265 HELOC 1,749 (48) 12 24 1,713 HELOC - Purchased 199 96 - - 295 Other 1,618 (1,274) 25 37 356 $ 33,855 $ (3,470) $ 42 $ 624 $ 30,967 The ACL on loans excludes $4.2 million, $4.5 million and $3.5 million of allowance for unfunded commitments as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively, recorded within Other Liabilities. The total ACL on unfunded commitments listed as of March 31, 2022 and December 31, 2021 excludes the purchase accounting adjustment of $1.5 million and $1.7 million, respectively, recorded due to our acquisition of West Suburban, which is also recorded within Other Liabilities, and is being accreted in interest income over the estimated life of the unused commitments. The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of March 31, 2022 and December 31, 2021: Accounts ACL March 31, 2022 Real Estate Receivable Equipment Other Total Allocation Commercial $ 1,955 $ 9,022 $ - $ - $ 10,977 $ 2,432 Leases - - 2,641 - 2,641 475 Commercial real estate - Investor 4,379 - - - 4,379 288 Commercial real estate - Owner occupied 7,414 - - 2,457 9,871 554 Construction 2,098 - - - 2,098 1,007 Residential real estate - Investor 1,391 - - - 1,391 - Residential real estate - Owner occupied 3,941 - - - 3,941 260 Multifamily 938 - - - 938 - HELOC 914 - - - 914 32 HELOC - Purchased 173 - - - 173 - Other - - - - - - Total $ 23,203 $ 9,022 $ 2,641 $ 2,457 $ 37,323 $ 5,048 Accounts ACL December 31, 2021 Real Estate Receivable Equipment Other Total Allocation Commercial $ 1,986 $ 9,901 $ - $ - $ 11,887 $ 2,677 Leases - - 3,249 505 3,754 811 Commercial real estate - Investor 5,693 - - - 5,693 - Commercial real estate - Owner occupied 9,147 - - 2,490 11,637 362 Construction 2,104 - - - 2,104 992 Residential real estate - Investor 925 - - - 925 - Residential real estate - Owner occupied 4,271 - - - 4,271 276 Multifamily 1,845 - - - 1,845 75 HELOC 826 - - - 826 190 HELOC - Purchased 180 - - - 180 - Other - - - 7 7 4 Total $ 26,977 $ 9,901 $ 3,249 $ 3,002 $ 43,129 $ 5,387 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 March 31, 2022 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 4,904 $ 548 $ 7,124 $ 12,576 $ 682,969 $ 695,545 $ - Leases 401 - 1,536 1,937 209,195 211,132 - Commercial real estate - Investor 3,399 - 1 3,400 962,367 965,767 - Commercial real estate - Owner occupied 9,764 100 2,956 12,820 642,972 655,792 - Construction 117 - 7 124 165,434 165,558 7 Residential real estate - Investor 269 - 1,001 1,270 61,576 62,846 2 Residential real estate - Owner occupied 1,805 98 2,589 4,492 198,626 203,118 20 Multifamily - - 691 691 297,995 298,686 691 HELOC 354 93 319 766 109,922 110,688 23 HELOC - Purchased - - 173 173 9,380 9,553 - Other 66 - 2 68 23,617 23,685 - Total $ 21,079 $ 839 $ 16,399 $ 38,317 $ 3,364,053 $ 3,402,370 $ 743 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2021 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 3,407 $ 1,413 $ 1,828 $ 6,648 $ 764,826 $ 771,474 $ 1,396 Leases 125 - 1,571 1,696 174,335 176,031 - Commercial real estate - Investor - 267 1,107 1,374 956,015 957,389 - Commercial real estate - Owner occupied 2,324 500 4,848 7,672 566,712 574,384 1,594 Construction 854 - - 854 205,278 206,132 - Residential real estate - Investor 395 470 792 1,657 61,742 63,399 23 Residential real estate - Owner occupied 1,994 591 3,077 5,662 207,586 213,248 97 Multifamily - 1,046 - 1,046 308,118 309,164 - HELOC 193 23 218 434 115,230 115,664 - HELOC - Purchased - - 180 180 10,446 10,626 - Other 50 46 23 119 24,318 24,437 - Total $ 9,342 $ 4,356 $ 13,644 $ 27,342 $ 3,394,606 $ 3,421,948 $ 3,110 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. The table presents all nonaccrual loans as of March 31, 2022, and December 31, 2021: Nonaccrual loan detail March 31, 2022 With no ACL December 31, 2021 With no ACL Commercial $ 9,029 $ 1,496 $ 11,894 $ 9,217 Leases 2,641 464 3,754 2,943 Commercial real estate - Investor 6,335 2,858 5,694 5,694 Commercial real estate - Owner occupied 9,871 6,791 11,637 11,205 Construction 155 - 160 160 Residential real estate - Investor 1,391 881 876 876 Residential real estate - Owner occupied 4,321 4,065 4,898 4,622 Multifamily 938 938 1,573 1,573 HELOC 1,116 1,116 862 672 HELOC - Purchased 173 173 180 180 Other 3 3 3 3 Total $ 35,973 $ 18,785 $ 41,531 $ 37,145 The Company recognized $17,000 of interest on nonaccrual loans during the three months ended March 31, 2022. 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 March 31, 2022 were as follows: Revolving Loans Converted Revolving To Term 2022 2021 2020 2019 2018 Prior Loans Loans Total Commercial Pass $ 39,944 $ 112,254 $ 42,384 $ 22,145 $ 15,024 $ 8,914 $ 420,642 $ - $ 661,307 Special Mention 162 398 653 623 - - 3,135 - 4,971 Substandard - 9,819 3,377 13,814 49 63 2,145 - 29,267 Total commercial 40,106 122,471 46,414 36,582 15,073 8,977 425,922 - 695,545 Leases Pass 49,340 79,901 $ 39,973 28,478 7,891 2,605 - - 208,188 Special Mention - - - 303 - - - - 303 Substandard - - - 2,015 367 259 - - 2,641 Total leases 49,340 79,901 39,973 30,796 8,258 2,864 - - 211,132 Commercial real estate - Investor Pass 110,946 309,370 210,682 86,228 61,532 92,627 19,558 - 890,943 Special Mention - 106 12,970 51,656 - 1,283 - - 66,015 Substandard - 2,883 - 492 - 3,478 1,956 - 8,809 Total commercial real estate - investor 110,946 312,359 223,652 138,376 61,532 97,388 21,514 - 965,767 Commercial real estate - Owner occupied Pass 58,243 198,978 119,597 74,853 55,681 115,207 1,697 - 624,256 Special Mention - 15,314 - 2,963 - - - - 18,277 Substandard - 6,793 706 1,686 - 4,074 - - 13,259 Total commercial real estate - owner occupied 58,243 221,085 120,303 79,502 55,681 119,281 1,697 - 655,792 Construction Pass 7,304 74,396 46,389 11,964 2,792 1,561 1,462 - 145,868 Special Mention - 922 5,235 10,348 - - - - 16,505 Substandard 1,214 - - - 1,971 - - - 3,185 Total construction 8,518 75,318 51,624 22,312 4,763 1,561 1,462 - 165,558 Residential real estate - Investor Pass 9,367 10,468 7,951 11,330 6,734 14,482 970 - 61,302 Special Mention - - - - - - - - - Substandard - 119 - 510 153 762 - - 1,544 Total residential real estate - investor 9,367 10,587 7,951 11,840 6,887 15,244 970 - 62,846 Residential real estate - Owner occupied Pass 2,425 47,217 30,623 17,882 12,967 84,522 1,982 - 197,618 Special Mention - 638 - - - - - - 638 Substandard - 301 244 719 303 3,295 - - 4,862 Total residential real estate - owner occupied 2,425 48,156 30,867 18,601 13,270 87,817 1,982 - 203,118 Multifamily Pass 16,859 115,523 43,970 37,815 59,557 16,643 59 - 290,426 Special Mention - - - 6,891 - - - - 6,891 Substandard - 329 - - 730 310 - - 1,369 Total multifamily 16,859 115,852 43,970 44,706 60,287 16,953 59 - 298,686 HELOC Pass 117 1,878 2,052 1,972 736 676 101,653 - 109,084 Special Mention - - - - - - 108 - 108 Substandard - - 2 - 27 350 1,117 - 1,496 Total HELOC 117 1,878 2,054 1,972 763 1,026 102,878 - 110,688 HELOC - Purchased Pass - - - - - 2,499 6,881 - 9,380 Special Mention - - - - - - - - - Substandard - - - - - 173 - - 173 Total HELOC - purchased - - - - - 2,672 6,881 - 9,553 Other Pass 497 9,143 1,106 131 117 6,323 6,365 - 23,682 Special Mention - - - - - - - - - Substandard - - 3 - - - - - 3 Total other 497 9,143 1,109 131 117 6,323 6,365 - 23,685 Total loans Pass 295,042 959,128 544,727 292,798 223,031 346,059 561,269 - 3,222,054 Special Mention 162 17,378 18,858 72,784 - 1,283 3,243 - 113,708 Substandard 1,214 20,244 4,332 19,236 3,600 12,764 5,218 - 66,608 Total loans $ 296,418 $ 996,750 $ 567,917 $ 384,818 $ 226,631 $ 360,106 $ 569,730 $ - $ 3,402,370 Credit quality indicators by loan segment and loan origination date at December 31, 2021, were as follows: Revolving Loans Converted Revolving To Term 2021 2020 2019 2018 2017 Prior Loans Loans Total Commercial Pass $ 192,258 $ 50,638 $ 38,614 $ 28,177 $ 5,176 $ 10,945 $ 408,394 $ 30 $ 734,232 Special Mention 44 84 694 - - - 3,708 - 4,530 Substandard 9,498 4,048 14,121 326 - 75 4,644 - 32,712 Total commercial 201,800 54,770 53,429 28,503 5,176 11,020 416,746 30 771,474 Leases Pass 83,402 44,129 $ 32,259 8,950 1,170 2,367 - - 172,277 Special Mention - - - - - - - - - Substandard - - 2,834 623 - 297 - - 3,754 Total leases 83,402 44,129 35,093 9,573 1,170 2,664 - - 176,031 Commercial real estate - Investor Pass 315,247 233,964 147,511 85,049 64,810 55,523 18,602 - 920,706 Special Mention 15,466 - 10,550 - - - - - 26,016 Substandard 2,238 2,378 451 181 3,612 1,807 - - 10,667 Total commercial real estate - investor 332,951 236,342 158,512 85,230 68,422 57,330 18,602 - 957,389 Commercial real estate - Owner occupied Pass 220,324 96,607 61,511 60,915 54,236 59,887 2,522 - 556,002 Special Mention - - 2,953 - - - - - 2,953 Substandard 8,318 942 1,686 - 1,251 3,232 - - 15,429 Total commercial real estate - owner occupied 228,642 97,549 66,150 60,915 55,487 63,119 2,522 - 574,384 Construction Pass 88,620 65,629 37,169 2,727 477 1,193 1,143 - 196,958 Special Mention - 2,138 4,932 - - - - - 7,070 Substandard 160 - - 1,944 - - - - 2,104 Total construction 88,780 67,767 42,101 4,671 477 1,193 1,143 - 206,132 Residential real estate - Investor Pass 13,371 9,758 13,084 6,392 7,059 10,602 1,868 - 62,134 Special Mention - - - - - - - - - Substandard 121 144 - 197 385 418 - - 1,265 Total residential real estate - investor 13,492 9,902 13,084 6,589 7,444 11,020 1,868 - 63,399 Residential real estate - Owner occupied Pass 48,009 31,912 20,990 13,304 30,562 60,661 2,052 - 207,490 Special Mention 659 - - - - - - - 659 Substandard 322 183 6 1,219 176 3,193 - - 5,099 Total residential real estate - owner occupied 48,990 32,095 20,996 14,523 30,738 63,854 2,052 - 213,248 Multifamily Pass 109,175 71,748 39,293 61,190 11,399 7,117 64 - 299,986 Special Mention - - 6,900 - - - - - 6,900 Substandard 433 - - 1,543 302 - - - 2,278 Total multifamily 109,608 71,748 46,193 62,733 11,701 7,117 64 - 309,164 HELOC Pass 907 2,091 2,131 805 1,667 1,869 104,843 - 114,313 Special Mention - - - - - - 108 - 108 Substandard - - - 17 12 196 1,018 - 1,243 Total HELOC 907 2,091 2,131 822 1,679 2,065 105,969 - 115,664 HELOC - Purchased Pass - - - - - 10,446 - - 10,446 Special Mention - - - - - - - - - Substandard - - - - - 180 - - 180 Total HELOC - purchased - - - - - 10,626 - - 10,626 Other Pass 8,659 1,099 437 254 1,414 5,358 7,206 - 24,427 Special Mention - - - - - - - - - Substandard - 3 - 7 - - - - 10 Total other 8,659 1,102 437 261 1,414 5,358 7,206 - 24,437 Total loans Pass 1,079,972 607,575 392,999 267,763 177,970 225,968 546,694 30 3,298,971 Special Mention 16,169 2,222 26,029 - - - 3,816 - 48,236 Substandard 21,090 7,698 19,098 6,057 5,738 9,398 5,662 - 74,741 Total loans $ 1,117,231 $ 617,495 $ 438,126 $ 273,820 $ 183,708 $ 235,366 $ 556,172 $ 30 $ 3,421,948 The Company had $623,000 and $488,000 in residential real estate loans in the process of foreclosure as of March 31, 2022, and December 31, 2021, respectively. Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments. Additionally, in accordance with interagency guidance, short-term deferrals granted due to the COVID-19 pandemic were not considered TDRs, if modified prior to January 1, 2022, unless the borrower was experiencing financial difficulty prior to the pandemic. The specific allocation of the allowance for credit losses for TDRs is determined by calculating the present value of the TDR cash flows by discounting the original payment less an assumption for probability of default at the original note’s issue rate, and adding this amount to the present value of collateral less selling costs. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e., specific reserve) as a component of the allowance for credit losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. The allowance for credit losses also includes an allowance based on a loss migration analysis for each loan category on loans and leases that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. There was one TDR loan modification of $1.1 million for the three months ended March 31, 2022, and no TDR activity for the three months ended March 31, 2021. TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There was no TDR default activity for the periods ended March 31, 2022, and March 31, 2021, for loans that were restructured within the prior 12 month period. |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2022 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 5 – Other Real Estate Owned Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation allowance, for the periods presented are itemized in the following tables: Three Months Ended March 31, Other real estate owned 2022 2021 Balance at beginning of period $ 2,356 $ 2,474 Property additions, net of acquisition adjustments 87 - Less: Proceeds from property disposals, net of participation purchase and of gains/losses 69 305 Period valuation write-down - 6 Balance at end of period $ 2,374 $ 2,163 Activity in the valuation allowance was as follows: Three Months Ended March 31, 2022 2021 Balance at beginning of period $ 1,179 $ 1,643 Provision for unrealized losses - 6 Balance at end of period $ 1,179 $ 1,649 Expenses related to OREO, net of lease revenue includes: Three Months Ended March 31, 2022 2021 Gain on sales, net $ (49) $ (20) Provision for unrealized losses - 6 Operating expenses 37 54 Less: Lease revenue - 4 Net OREO (gain) expense $ (12) $ 36 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Deposits | Note 6 – Deposits Major classifications of deposits were as follows: March 31, 2022 December 31, 2021 Noninterest bearing demand $ 1,461,712 $ 1,428,055 Savings 1,884,352 1,826,346 NOW accounts 622,606 605,056 Money market accounts 1,098,499 1,102,965 Certificates of deposit of less than $100,000 277,135 287,238 Certificates of deposit of $100,000 through $250,000 144,663 147,854 Certificates of deposit of more than $250,000 55,758 68,718 Total deposits $ 5,544,725 $ 5,466,232 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Borrowings | |
Borrowings | Note 7 – Borrowings The following table is a summary of borrowings as of March 31, 2022, and December 31, 2021. Junior subordinated debentures are discussed in more detail in Note 8: March 31, 2022 December 31, 2021 Securities sold under repurchase agreements $ 33,521 $ 50,337 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,233 59,212 Senior notes 44,506 44,480 Notes payable and other borrowings 17,992 19,074 Total borrowings $ 181,025 $ 198,876 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 $33.5 million at March 31, 2022, and $50.3 million at December 31, 2021. The fair value of the pledged collateral was $107.3 million at March 31, 2022, and $113.0 million at December 31, 2021. At March 31, 2022, 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 March 31, 2022, and December 31, 2021, the Bank had no short-term advances outstanding under the FHLBC. The Bank assumed $23.4 million of long-term FHLBC advances with our ABC Bank acquisition in 2018. At March 31, 2022, one advance remains in long-term status, with a total outstanding balance of $6.0 million, at a 2.83% interest rate, and is scheduled to mature on February 2, 2026. FHLB stock held as of March 31, 2022 was valued at $7.1 million, and any potential FHLBC advances were collateralized by loans with a principal balance of $545.0 million, which carried a FHLBC-calculated combined collateral value of $396.9 million. The Company had excess collateral of $315.9 million available to secure borrowings at March 31, 2022. The Company also had $44.5 million of senior notes outstanding, net of deferred issuance costs, as of March 31, 2022 and December 31, 2021. The senior notes were issued in December 2016 with a ten year maturity, and terms include interest payable semiannually at 5.75% for five years . Beginning December 31, 2021, the senior debt began to pay interest at a floating rate, with interest payable quarterly at three month LIBOR plus 385 basis points. The notes are redeemable, in whole or in part, at the option of the Company, beginning with the interest payment date on December 31, 2021, and on any floating rate interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. As of March 31, 2022, and December 31, 2021, unamortized debt issuance costs related to the senior notes were $494,000 and $520,000 , respectively, and are included as a reduction of the balance of the senior notes on the Consolidated Balance Sheet. These deferred issuance costs will be amortized to interest expense over the ten year term of the notes and are included in the Consolidated Statements of Income. On February 24, 2020, the Company originated a $20.0 million term note, of which $12.0 million is outstanding as of March 31, 2022, with a correspondent bank. The term note was issued for a three year term at one-month LIBOR plus 175 basis points, requires principal and interest payments quarterly, and the balance of this note is included within Notes Payable and Other Borrowings on the Consolidated Balance Sheet. 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. On April 6, 2021, we sold and 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 Notes were offered and sold to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended and the provisions of Regulation D promulgated thereunder. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include, without limitation, the redemption of existing senior debt, common stock repurchases and strategic acquisitions. The Notes bear interest at a fixed annual rate of 3.50%, from and including the date of issuance to but excluding April 15, 2026, payable semi-annually in arrears. From and including April 15, 2026 to, but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to Three-Month Term SOFR (as defined in the Note) plus 273 basis points, payable quarterly in arrears. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 3 Months Ended |
Mar. 31, 2022 | |
Junior Subordinated Debentures. | |
Junior Subordinated Debentures | Note 8 – 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 LIBOR . Upon conversion to a floating rate, a cash flow hedge was initiated which resulted in the total interest rate paid on the debt of 4.41% for the quarters ended March 31, 2022 and March 31, 2021. The Company issued a new $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 Sheet, and the related interest expense for each issuance is included in the Consolidated Statements of Income. As of March 31, 2022, and December 31, 2021, the remaining unamortized debt issuance costs related to the junior subordinated debentures were $1,000 and are included as a reduction to the balance of the junior subordinated debentures on the Consolidated Balance Sheet. 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 | 3 Months Ended |
Mar. 31, 2022 | |
Equity Compensation Plans | |
Equity Compensation Plans | Note 9 – 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 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 March 31, 2022, 1,144,926 shares remained available for issuance under the 2019 Plan Under the 2019 Plan, unless otherwise provided in an award agreement, upon the occurrence of a change in control, all stock options and SARs 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 units 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 Generally, restricted stock and restricted stock units granted under the Plans vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change some terms including the amount of time until the vest date. There were 251,055 and 217,964 restricted stock units issued under the 2019 Plan during the three months ended March 31, 2022 and March 31, 2021, 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 Plan was $795,000 in the first three months of 2022 and $125,000 for the first three months of 2021. A summary of changes in the Company’s unvested restricted awards for the three months ended March 31, 2022, is as follows: March 31, 2022 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 540,306 $ 12.04 Granted 251,055 14.28 Vested - - Forfeited - - Unvested at March 31 791,361 $ 12.75 Total unrecognized compensation cost of restricted awards was $5.8 million as of March 31, 2022, which is expected to be recognized over a weighted-average period of 1.1 years. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 10 – Earnings Per Share The earnings per share, both basic and diluted, are as follows: Three Months Ended March 31, 2022 2021 Basic earnings per share: Weighted-average common shares outstanding 44,461,045 29,225,775 Net income $ 12,020 $ 11,879 Basic earnings per share $ 0.27 $ 0.41 Diluted earnings per share: Weighted-average common shares outstanding 44,461,045 29,225,775 Dilutive effect of unvested restricted awards 1 700,670 558,982 Diluted average common shares outstanding 45,161,715 29,784,757 Net Income $ 12,020 $ 11,879 Diluted earnings per share $ 0.27 $ 0.40 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters
Regulatory & Capital Matters | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory & Capital Matters | |
Regulatory & Capital Matters | Note 11 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 March 31, 2022, the Bank exceeded those thresholds. At March 31, 2022, the Bank’s Tier 1 capital leverage ratio was 8.61%, a decrease of 97 basis points from December 31, 2021, but is above the 8.00% objective. The Bank’s total capital ratio was 13.83%, an increase of 37 basis points from December 31, 2021, 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 March 31, 2022, and December 31, 2021. In July 2013, the U.S. federal banking authorities issued final rules (the “Basel III Rules”) establishing more stringent regulatory capital requirements for U.S. banking institutions, which went into effect on January 1, 2015. 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, 2021, under the heading “Supervision and Regulation.” At March 31, 2022 and December 31, 2021, 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 March 31, 2022 Common equity tier 1 capital to risk weighted assets Consolidated $ 404,444 9.73 % $ 290,967 7.00 % N/A N/A Old Second Bank 528,655 12.74 290,470 7.00 $ 269,722 6.50 % Total capital to risk weighted assets Consolidated 533,984 12.85 436,329 10.50 N/A N/A Old Second Bank 573,949 13.83 435,753 10.50 415,003 10.00 Tier 1 capital to risk weighted assets Consolidated 429,444 10.33 353,366 8.50 N/A N/A Old Second Bank 528,655 12.74 352,713 8.50 331,965 8.00 Tier 1 capital to average assets Consolidated 429,444 7.00 245,397 4.00 N/A N/A Old Second Bank 528,655 8.61 245,600 4.00 307,001 5.00 December 31, 2021 Common equity tier 1 capital to risk weighted assets Consolidated $ 394,421 9.46 % $ 291,855 7.00 % N/A N/A Old Second Bank 514,992 12.41 290,487 7.00 $ 269,738 6.50 % Total capital to risk weighted assets Consolidated 522,932 12.55 437,513 10.50 N/A N/A Old Second Bank 558,503 13.46 435,682 10.50 414,935 10.00 Tier 1 capital to risk weighted assets Consolidated 419,421 10.06 354,382 8.50 N/A N/A Old Second Bank 514,992 12.41 352,734 8.50 331,985 8.00 Tier 1 capital to average assets Consolidated 419,421 7.81 214,812 4.00 N/A N/A Old Second Bank 514,992 9.58 215,028 4.00 268,785 5.00 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” As part of its response to the impact of the COVID-19 pandemic, in the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provided banking organizations that adopted CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we elected to utilize the five-year CECL transition. As of March 31, 2022, the capital measures of the Company exclude $2.9 million, which is the modified CECL transition adjustment. Dividend Restrictions In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years , subject to the capital requirements described above. Pursuant to the Basel III rules that came into effect January 1, 2015, and were fully phased in as of January 1, 2019, the Bank must keep a capital conservation buffer of 2.50% above the new 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 | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 12 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. Transfers between levels are deemed to have occurred at the end of the reporting period. At March 31, 2022 and 2021, there were no transfers between levels. The majority of securities available-for-sale are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: ● Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark spreads, market valuations of like securities, like securities groupings and matrix pricing. ● Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. ● State and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. ● Auction rate securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities are considered Level 2 valuations. ● Asset-backed collateralized loan obligations were priced using data from a pricing matrix supported by our bond accounting service provider and are therefore considered Level 2 valuations. ● Annually every security holding is priced by a pricing service independent of the regular and recurring pricing services used. The independent service provides a measurement to indicate if the price assigned by the regular service is within or outside of a reasonable range. Management reviews this report and applies judgment in adjusting calculations at year end related to securities pricing. ● Residential mortgage loans available for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices. ● Lending related commitments to fund certain residential mortgage loans, e.g., residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management. ● The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness. ● Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves. ● The fair value of impaired 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 OREO are measured at fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification, or an executed pending sales contract. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balance of assets and liabilities at March 31, 2022, and December 31, 2021, respectively, measured by the Company at fair value on a recurring basis: March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 220,563 $ - $ - $ 220,563 U.S. government agencies - 59,036 - 59,036 U.S. government agencies mortgage-backed - 153,148 - 153,148 States and political subdivisions - 222,575 13,833 236,408 Corporate bonds - 9,683 - 9,683 Collateralized mortgage obligations - 696,513 - 696,513 Asset-backed securities - 274,941 - 274,941 Collateralized loan obligations - 166,158 - 166,158 Loans held-for-sale - 8,075 - 8,075 Mortgage servicing rights - - 10,376 10,376 Interest rate swap agreements - 952 - 952 Mortgage banking derivatives - 930 - 930 Total $ 220,563 $ 1,592,011 $ 24,209 $ 1,836,783 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 3,663 $ - $ 3,663 Total $ - $ 3,663 $ - $ 3,663 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 202,339 $ - $ - $ 202,339 U.S. government agencies - 61,888 - 61,888 U.S. government agencies mortgage-backed - 172,302 - 172,302 States and political subdivisions - 242,373 14,092 256,465 Corporate bonds - 9,887 - 9,887 Collateralized mortgage obligations - 672,967 - 672,967 Asset-backed securities - 236,877 - 236,877 Collateralized loan obligations - 79,763 - 79,763 Loans held-for-sale - 4,737 - 4,737 Mortgage servicing rights - - 7,097 7,097 Interest rate swap agreements - 3,494 - 3,494 Mortgage banking derivatives - 508 - 508 Total $ 202,339 $ 1,484,796 $ 21,189 $ 1,708,324 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 6,809 $ - $ 6,809 Total $ - $ 6,809 $ - $ 6,809 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Three Months Ended March 31, 2022 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2022 $ 14,092 $ 7,097 Total gains or losses Included in earnings (33) 3,228 Included in other comprehensive income (938) - Purchases, issuances, sales, and settlements Purchases 1,076 - Issuances - 301 Settlements (364) (250) Ending balance March 31, 2022 $ 13,833 $ 10,376 Three Months Ended March 31, 2021 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2021 $ 4,319 $ 4,224 Total gains or losses Included in earnings (3) 1,485 Included in other comprehensive income 299 - Purchases, issuances, sales, and settlements Purchases 58 - Issuances - 552 Settlements (32) (372) Ending balance March 31, 2021 $ 4,641 $ 5,889 The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of March 31, 2022: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 10,376 Discounted Cash Flow Discount Rate 9.0 - 11.0% 9.0 % Prepayment Speed 5.7 - 28.9% 6.2 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2021: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 7,097 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 0.0 - 36.6% 11.9 % In addition to the above, Level 3 fair value measurement included $13.8 million for state and political subdivisions representing various local municipality securities at March 31, 2022. These securities were classified as securities available-for-sale, and were valued using a discount based on market spreads of similar assets, but the liquidity premium was an unobservable input. The state and political subdivisions securities balance in Level 3 fair value at March 31, 2021, was $4.6 million. These securities were classified as securities available-for-sale, and were valued using a discount based on market spreads of similar assets, but the liquidity premium was an unobservable input. 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 (formerly, impaired) loans and OREO. For assets measured at fair value on a nonrecurring basis at March 31, 2022, and December 31, 2021, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: March 31, 2022 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 21,990 $ 21,990 Other real estate owned, net 2 - - 2,374 2,374 Total $ - $ - $ 24,364 $ 24,364 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 $33.6 million and a valuation allowance of $11.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $6.2 million for the three months ended March 31, 2022. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.4 million at March 31, 2022, which is made up of the outstanding balance of $3.7 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $1.2 million. December 31, 2021 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 13,138 $ 13,138 Other real estate owned, net 2 - - 2,356 2,356 Total $ - $ - $ 15,494 $ 15,494 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 $18.5 million and a valuation allowance of $5.4 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $2.7 million for the year December 31, 2021. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.4 million at December 31, 2021, which is made up of the outstanding balance of $3.7 million , net of a purchase accounting adjustment of $131,000 and a valuation allowance of $1.2 million. The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and impaired 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 | 3 Months Ended |
Mar. 31, 2022 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note 13 – 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. FHLBC stock is carried at cost and considered a Level 2 fair value. March 31, 2022 and December 31, 2021, the fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits is 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 is not considered material. The carrying amount and estimated fair values of financial instruments were as follows: March 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 41,511 $ 41,511 $ 41,511 $ - $ - Interest earning deposits with financial institutions 593,166 593,166 593,166 - - Securities available-for-sale 1,816,450 1,692,488 220,563 1,582,054 13,833 FHLBC and FRBC stock 21,974 21,974 - 21,974 - Loans held-for-sale 8,075 8,075 - 8,075 - Net loans 3,358,062 3,386,123 - - 3,386,123 Mortgage servicing rights 10,376 10,376 - - 10,376 Interest rate swap agreements 952 952 - 952 - Interest rate lock commitments and forward contracts 930 930 - 930 - Interest receivable on securities and loans 14,910 14,910 - 14,910 - Financial liabilities: Noninterest bearing deposits $ 1,461,712 $ 1,461,712 $ 1,461,712 $ - $ - Interest bearing deposits 4,083,013 4,083,279 - 4,083,279 - Securities sold under repurchase agreements 33,521 33,521 - 33,521 - Junior subordinated debentures 25,773 23,711 - 23,711 - Subordinated debentures 59,233 56,233 56,233 Senior notes 44,506 44,466 44,466 - - Note payable and other borrowings 17,992 18,034 - 18,034 - Interest rate swap agreements 3,657 3,657 - 3,657 - Interest payable on deposits and borrowings 1,854 1,854 - 1,854 - December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 38,565 $ 38,565 $ 38,565 $ - $ - Interest earning deposits with financial institutions 713,542 713,542 713,542 - - Securities available-for-sale 1,692,488 1,692,488 202,339 1,476,057 14,092 FHLBC and FRBC stock 13,257 13,257 - 13,257 - Loans held-for-sale 4,737 4,737 - 4,737 - Net loans 3,377,667 3,408,199 - - 3,408,199 Mortgage servicing rights 7,097 7,097 - - 7,097 Interest rate swap agreements 3,494 3,494 - 3,494 - Interest rate lock commitments and forward contracts 508 508 - 508 - Interest receivable on securities and loans 13,431 13,431 - 13,431 - Financial liabilities: Noninterest bearing deposits $ 1,428,055 $ 1,428,055 $ 1,428,055 $ - $ - Interest bearing deposits 4,038,177 4,041,369 - 4,041,369 - Securities sold under repurchase agreements 50,377 50,377 - 50,377 - Junior subordinated debentures 25,773 18,557 - 18,557 - Subordinated debentures 59,212 60,111 60,111 Senior notes 44,480 44,480 44,480 - Note payable and other borrowings 19,074 19,411 - 19,411 - Interest rate swap agreements 6,788 6,788 - 6,788 - Interest payable on deposits and borrowings 1,706 1,706 - 1,706 - |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | Note 14 – 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 expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In December of 2019, the Company also executed a loan pool hedge of $50 million to convert variable rate loans to a fixed rate index for a five year term. 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/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 expense as interest payments are received on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $178,000 will be reclassified as an increase to interest income and an additional $162,000 will be reclassified as an increase to interest expense. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives with financial counterparties are recognized directly in earnings. 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. 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. Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The Company entered into a forward starting interest rate swap on August 18, 2015, with an effective date of June 15, 2017. This transaction had a notional amount totaling $25.8 million as of March 31, 2022, was designated as a cash flow hedge of certain junior subordinated debentures and was determined to be fully effective during the period presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in 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. The Company expects the hedge to remain fully effective during the remaining term of the swap. The Bank will pay the counterparty a fixed rate and receive a floating rate based on three month LIBOR. The trust preferred securities In December 2019, the Company also executed a loan pool hedge of $50.0 million to convert variable rate loans to a fixed rate index for a five year term. This transaction falls under hedge accounting standards and is paired against a pool of the Bank’s LIBOR-based loans. Overall, the new swap only bolsters income in down rate scenarios by a modest degree. We consider the current level of interest rate risk to be moderate but intend to continue looking for market opportunities to hedge further. The Bank also has interest rate derivative positions to assist with risk management that are not designated as hedging instruments. These derivative positions relate to transactions in which the Bank enters an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. The Bank held no cash collateral and $180,000 of cash collateral related to one correspondent financial institution to cover the loan pool hedge mark to market valuation at March 31, 2022, and December 31, 2021, respectively. The Bank had $18.5 million and $17.2 million of cash collateral held by one correspondent financial institution to support interest rate swap activity and no investment securities were required to be pledged to any correspondent financial institution at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, the notional amount of non-hedging interest rate swaps was $150.7 million with a weighted average maturity of 5.9 years. At December 31, 2021, the notional amount of non-hedging interest rate swaps was $165.0 million with a weighted average maturity of 3.9 years. The Bank offsets derivative assets and liabilities that are subject to a master netting arrangement. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2022 and December 31, 2021. Fair Value of Derivative Instruments March 31, 2022 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets - Other Liabilities 2,705 Total derivatives designated as hedging instruments - 2,705 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 23 150,712 Other Assets 952 Other Liabilities 952 Interest rate lock commitments and forward contracts 81 32,994 Other Assets 930 Other Liabilities - Other contracts 3 17,050 Other Assets - Other Liabilities 6 Total derivatives not designated as hedging instruments 1,882 958 December 31, 2021 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 808 Other Liabilities 4,102 Total derivatives designated as hedging instruments 808 4,102 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 26 165,005 Other Assets 2,686 Other Liabilities 2,686 Interest rate lock commitments and forward contracts 87 34,414 Other Assets 508 Other Liabilities - Other contracts 3 17,173 Other Assets - Other Liabilities 21 Total derivatives not designated as hedging instruments 3,194 2,707 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 $1.9 million as of March 31, 2022, and $705,000 as of March 31, 2021. The amount of the gain reclassified from AOCI to interest income or interest expense on the income statement totaled $16,000 and $12,000 for the three months ended March 31, 2022, and March 31, 2021, respectively. 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 March 31, 2022, and December 31, 2021. The following table is a summary of letter of credit commitments: March 31, 2022 December 31, 2021 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 384 $ 19,416 $ 19,800 $ 384 $ 17,474 $ 17,858 Commercial standby - - - - - - Performance standby 308 15,683 15,991 456 14,907 15,363 692 35,099 35,791 840 32,381 33,221 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 692 $ 35,166 $ 35,858 $ 840 $ 32,448 $ 33,288 Unused loan commitments: $ 107,085 $ 910,602 $ 1,017,687 $ 84,225 $ 895,665 $ 979,890 As of March 31, 2022, the Company evaluated current market conditions, including any impacts related to COVID-19, market interest rate changes, and unused line of credit utilization trends during the first quarter of 2022, and based on that analysis under the CECL methodology, the Company determined credit losses related to unfunded commitments totaled $4.2 million, excluding a $1.5 million purchase accounting adjustment on unfunded commitments recorded from our West Suburban acquisition, which is being accreted to interest income over the estimated life of the unused commitments. The resultant decrease in the ACL for unfunded commitments of $320,000 for the first quarter of 2022, compared to the prior quarter end, is primarily related to a decrease in the commercial unfunded commitments funding rate assumptions based on our analysis of the last 12 months of utilization. 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 Sheet, as needed, with the appropriate offsetting entry to the provision for credit losses on our Consolidated Statements of Income. |
Basis of Presentation and Cha_2
Basis of Presentation and Changes in Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation and Changes in Significant Accounting Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company : ASU 2018-16, ASU 2020-04 and ASU 2021-01 - Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting. Reference Rate Reform The Company formed a LIBOR transition team in 2019, and has developed a project plan to assess the use of alternative indexes and to seek to ensure all financial instruments that reference LIBOR are identified, quantified, and researched for the LIBOR fallback language available or needed. The Company has completed the ISDA protocol adherence for LIBOR fallback language for all commercial swaps, has met with our commercial loan clients to also guide their swap fallback language adherence, and worked to revise all credit documents being issued by our Bank for new loans to ensure appropriate fallback language is included. We have discontinued the use of LIBOR as a reference rate for all consumer loans issued after July 31, 2021, and all commercial loans issued after December 31, 2021, with certain exceptions for those loans that were in the process of funding at the end of 2021. The Company’s systems have been updated to handle multiple SOFR-based indexes and we continue to meet regularly to plan for the transition of existing LIBOR exposures prior to the final LIBOR cessation date of June 30, 2023. ASU 2022-02 Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The Company is currently reviewing ASU 2022-02 for the impact to TDR recognition, measurement and disclosures, and will assess any revisions needed for reporting purposes in the next few quarters. We anticipate adopting ASU 2022-02 as of January 1, 2023. |
Subsequent Events | Subsequent Events On April 19, 2022, the Company’s Board of Directors declared a cash dividend of $0.05 per share payable on May 9, 2022, to stockholders of record as of April 29, 2022; dividends of $2.2 million are scheduled to be paid to stockholders on May 9, 2022. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Acquisition | |
Summary of acquisition | West Suburban Acquisition Summary As of Date of Acquisition December 1, 2021 Assets Cash and due from banks $ 16,794 Interest bearing deposits with financial institutions 232,880 Securities available-for-sale and held-to maturity, at fair value 1,066,373 FHLBC stock 3,340 Loans, net of allowance for credit losses Day One PCD loan adjustment 1,502,118 Premises and equipment 47,456 Other real estate owned 5,552 Core deposit intangible 14,772 Deferred tax assets 2,093 Other assets 52,710 Total assets $ 2,944,088 Liabilities Noninterest bearing demand $ 409,141 Savings, NOW and money market 2,069,890 Time 215,205 Total deposits 2,694,236 Reserve for unfunded commitments 1,787 Other liabilities 20,629 Total liabilities 2,716,652 Cash consideration paid 100,679 Stock issued for acquisition 194,484 Total Liabilities Assumed and Cash and Stock Consideration Paid for Acquisition $ 3,011,815 Goodwill $ 67,727 |
Schedule of Purchase price of loans at acquisition | As of West Suburban Acquired PCD Loans December 1, 2021 Par value of acquired loans $ 108,241 Allowance for credit losses (12,075) Non-credit discount (1,723) Purchase price of PCD loans at acquisition $ 94,443 |
Schedule of carrying amount of acquired loans | Acquired Loan Detail As of March 31, 2022 As of December 31, 2021 PCD Non-PCD Total PCD Non-PCD Total West Suburban acquired loans $ 88,601 $ 1,354,305 $ 1,442,906 $ 102,409 $ 1,418,752 $ 1,521,161 ABC Bank acquired loans 4,534 57,904 62,438 4,547 64,236 68,783 Talmer Bank acquired loans - 44,836 44,836 - 45,858 45,858 Total acquired loans net book value $ 93,135 $ 1,457,045 $ 1,550,180 $ 106,956 $ 1,528,846 $ 1,635,802 Accretion recorded on acquired loans year to date $ 400 $ 2,016 $ 2,416 $ 401 $ 565 $ 966 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 227,646 $ 13 $ (7,096) $ 220,563 U.S. government agencies 62,029 - (2,993) 59,036 U.S. government agencies mortgage-backed 161,119 117 (8,088) 153,148 States and political subdivisions 237,988 4,358 (5,938) 236,408 Corporate bonds 10,000 - (317) 9,683 Collateralized mortgage obligations 720,960 298 (24,745) 696,513 Asset-backed securities 278,941 240 (4,240) 274,941 Collateralized loan obligations 167,124 3 (969) 166,158 Total securities available-for-sale $ 1,865,807 $ 5,029 $ (54,386) $ 1,816,450 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2021 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 202,251 $ 125 $ (37) $ 202,339 U.S. government agencies 62,587 - (699) 61,888 U.S. government agencies mortgage-backed 172,016 856 (570) 172,302 States and political subdivisions 240,793 16,344 (672) 256,465 Corporate bonds 10,000 - (113) 9,887 Collateralized mortgage obligations 673,238 2,014 (2,285) 672,967 Asset-backed securities 236,293 1,245 (661) 236,877 Collateralized loan obligations 79,838 3 (78) 79,763 Total securities available-for-sale $ 1,677,016 $ 20,587 $ (5,115) $ 1,692,488 1 Excludes accrued interest receivable of $5.2 million and $4.3 million at March 31, 2022 and December 31, 2021, respectively, that is recorded in other assets on the consolidated balance sheet. |
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 $ 7,451 1.47 % $ 7,458 Due after one year through five years 300,065 0.95 289,731 Due after five years through ten years 46,076 2.50 44,739 Due after ten years 184,071 2.98 183,762 537,663 1.78 525,690 Mortgage-backed and collateralized mortgage obligations 882,079 1.50 849,661 Asset-backed securities 278,941 1.33 274,941 Collateralized loan obligations 167,124 2.06 166,158 Total securities available-for-sale $ 1,865,807 1.61 % $ 1,816,450 |
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 March 31, 2022 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries 5 $ 7,096 $ 216,531 - $ - $ - 5 $ 7,096 $ 216,531 U.S. government agencies 5 2,884 54,588 4 109 4,448 9 2,993 59,036 U.S. government agencies mortgage-backed 124 7,322 142,866 5 766 5,341 129 8,088 148,207 States and political subdivisions 27 4,535 90,991 1 1,403 3,232 28 5,938 94,223 Corporate bonds 2 317 9,683 - - - 2 317 9,683 Collateralized mortgage obligations 208 24,649 647,144 1 96 7,366 209 24,745 654,510 Asset-backed securities 41 4,109 230 4 131 4,534 45 4,240 4,764 Collateralized loan obligations 22 885 128,303 2 84 10,587 24 969 138,890 Total securities available-for-sale 434 $ 51,797 $ 1,290,336 17 $ 2,589 $ 35,508 451 $ 54,386 $ 1,325,844 Less than 12 months 12 months or more December 31, 2021 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries 1 $ 37 $ 49,719 - $ - $ - 1 $ 37 $ 49,719 U.S. government agencies 5 592 56,879 4 107 5,008 9 699 61,887 U.S. government agencies mortgage-backed 63 505 78,711 1 65 1,663 64 570 80,374 States and political subdivisions 7 55 8,430 1 617 4,051 8 672 12,481 Corporate bonds 2 113 9,887 - - - 2 113 9,887 Collateralized mortgage obligations 133 2,285 381,658 - - - 133 2,285 381,658 Asset-backed securities 20 608 103,819 3 53 3,276 23 661 107,095 Collateralized loan obligations 10 35 45,132 2 43 10,628 12 78 55,760 Total securities available-for-sale 241 $ 4,230 $ 734,235 11 $ 885 $ 24,626 252 $ 5,115 $ 758,861 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Allowance for Credit Losses on Loans | |
Schedule of major classifications of loans | March 31, 2022 December 31, 2021 Commercial 1 $ 695,545 $ 771,474 Leases 211,132 176,031 Commercial real estate - Investor 965,767 957,389 Commercial real estate - Owner occupied 655,792 574,384 Construction 165,558 206,132 Residential real estate - Investor 62,846 63,399 Residential real estate - Owner occupied 203,118 213,248 Multifamily 298,686 309,164 HELOC 110,688 115,664 HELOC - Purchased 9,553 10,626 Other 2 23,685 24,437 Total loans 3,402,370 3,421,948 Allowance for credit losses on loans (44,308) (44,281) Net loans 3 $ 3,358,062 $ 3,377,667 1 Includes $11.2 million and $38.4 million of Paycheck Protection Program (“PPP”) loans at March 31, 2022 and December 31, 2021, respectively. 2 The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans. 3 Excludes accrued interest receivable of $9.6 million and $9.2 million at March 31, 2022 and December 31, 2021, respectively, that is recorded in other assets on the consolidated balance sheet. |
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 March 31, 2022 Commercial $ 11,751 $ 825 $ 30 $ 30 $ 12,576 Leases 3,480 (907) - - 2,573 Commercial real estate - Investor 13,093 2,679 236 23 15,559 Commercial real estate - Owner occupied 2,615 768 121 8 3,270 Construction 3,373 (515) - - 2,858 Residential real estate - Investor 760 (67) - 10 703 Residential real estate - Owner occupied 2,832 (965) - 83 1,950 Multifamily 3,675 (698) - - 2,977 HELOC 2,379 (820) - 35 1,594 HELOC - Purchased 131 (50) - - 81 Other 192 70 127 32 167 $ 44,281 $ 320 $ 514 $ 221 $ 44,308 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended March 31, 2021 Commercial $ 2,812 $ 446 $ 2 $ 20 $ 3,276 Leases 3,888 (506) - - 3,382 Commercial real estate - Investor 9,205 (1,317) - 20 7,908 Commercial real estate - Owner occupied 2,251 (734) 3 208 1,722 Construction 4,054 (335) - - 3,719 Residential real estate - Investor 1,740 (203) - 266 1,803 Residential real estate - Owner occupied 2,714 (235) - 49 2,528 Multifamily 3,625 640 - - 4,265 HELOC 1,749 (48) 12 24 1,713 HELOC - Purchased 199 96 - - 295 Other 1,618 (1,274) 25 37 356 $ 33,855 $ (3,470) $ 42 $ 624 $ 30,967 The ACL on loans excludes $4.2 million, $4.5 million and $3.5 million of allowance for unfunded commitments as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively, recorded within Other Liabilities. The total ACL on unfunded commitments listed as of March 31, 2022 and December 31, 2021 excludes the purchase accounting adjustment of $1.5 million and $1.7 million, respectively, recorded due to our acquisition of West Suburban, which is also recorded within Other Liabilities, and is being accreted in interest income over the estimated life of the unused commitments. The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of March 31, 2022 and December 31, 2021: Accounts ACL March 31, 2022 Real Estate Receivable Equipment Other Total Allocation Commercial $ 1,955 $ 9,022 $ - $ - $ 10,977 $ 2,432 Leases - - 2,641 - 2,641 475 Commercial real estate - Investor 4,379 - - - 4,379 288 Commercial real estate - Owner occupied 7,414 - - 2,457 9,871 554 Construction 2,098 - - - 2,098 1,007 Residential real estate - Investor 1,391 - - - 1,391 - Residential real estate - Owner occupied 3,941 - - - 3,941 260 Multifamily 938 - - - 938 - HELOC 914 - - - 914 32 HELOC - Purchased 173 - - - 173 - Other - - - - - - Total $ 23,203 $ 9,022 $ 2,641 $ 2,457 $ 37,323 $ 5,048 Accounts ACL December 31, 2021 Real Estate Receivable Equipment Other Total Allocation Commercial $ 1,986 $ 9,901 $ - $ - $ 11,887 $ 2,677 Leases - - 3,249 505 3,754 811 Commercial real estate - Investor 5,693 - - - 5,693 - Commercial real estate - Owner occupied 9,147 - - 2,490 11,637 362 Construction 2,104 - - - 2,104 992 Residential real estate - Investor 925 - - - 925 - Residential real estate - Owner occupied 4,271 - - - 4,271 276 Multifamily 1,845 - - - 1,845 75 HELOC 826 - - - 826 190 HELOC - Purchased 180 - - - 180 - Other - - - 7 7 4 Total $ 26,977 $ 9,901 $ 3,249 $ 3,002 $ 43,129 $ 5,387 |
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 March 31, 2022 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 4,904 $ 548 $ 7,124 $ 12,576 $ 682,969 $ 695,545 $ - Leases 401 - 1,536 1,937 209,195 211,132 - Commercial real estate - Investor 3,399 - 1 3,400 962,367 965,767 - Commercial real estate - Owner occupied 9,764 100 2,956 12,820 642,972 655,792 - Construction 117 - 7 124 165,434 165,558 7 Residential real estate - Investor 269 - 1,001 1,270 61,576 62,846 2 Residential real estate - Owner occupied 1,805 98 2,589 4,492 198,626 203,118 20 Multifamily - - 691 691 297,995 298,686 691 HELOC 354 93 319 766 109,922 110,688 23 HELOC - Purchased - - 173 173 9,380 9,553 - Other 66 - 2 68 23,617 23,685 - Total $ 21,079 $ 839 $ 16,399 $ 38,317 $ 3,364,053 $ 3,402,370 $ 743 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2021 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 3,407 $ 1,413 $ 1,828 $ 6,648 $ 764,826 $ 771,474 $ 1,396 Leases 125 - 1,571 1,696 174,335 176,031 - Commercial real estate - Investor - 267 1,107 1,374 956,015 957,389 - Commercial real estate - Owner occupied 2,324 500 4,848 7,672 566,712 574,384 1,594 Construction 854 - - 854 205,278 206,132 - Residential real estate - Investor 395 470 792 1,657 61,742 63,399 23 Residential real estate - Owner occupied 1,994 591 3,077 5,662 207,586 213,248 97 Multifamily - 1,046 - 1,046 308,118 309,164 - HELOC 193 23 218 434 115,230 115,664 - HELOC - Purchased - - 180 180 10,446 10,626 - Other 50 46 23 119 24,318 24,437 - Total $ 9,342 $ 4,356 $ 13,644 $ 27,342 $ 3,394,606 $ 3,421,948 $ 3,110 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. |
Schedule of loans on nonaccrual for which there was no related allowance | Nonaccrual loan detail March 31, 2022 With no ACL December 31, 2021 With no ACL Commercial $ 9,029 $ 1,496 $ 11,894 $ 9,217 Leases 2,641 464 3,754 2,943 Commercial real estate - Investor 6,335 2,858 5,694 5,694 Commercial real estate - Owner occupied 9,871 6,791 11,637 11,205 Construction 155 - 160 160 Residential real estate - Investor 1,391 881 876 876 Residential real estate - Owner occupied 4,321 4,065 4,898 4,622 Multifamily 938 938 1,573 1,573 HELOC 1,116 1,116 862 672 HELOC - Purchased 173 173 180 180 Other 3 3 3 3 Total $ 35,973 $ 18,785 $ 41,531 $ 37,145 |
Schedule of credit quality indicators by class of loans | Revolving Loans Converted Revolving To Term 2022 2021 2020 2019 2018 Prior Loans Loans Total Commercial Pass $ 39,944 $ 112,254 $ 42,384 $ 22,145 $ 15,024 $ 8,914 $ 420,642 $ - $ 661,307 Special Mention 162 398 653 623 - - 3,135 - 4,971 Substandard - 9,819 3,377 13,814 49 63 2,145 - 29,267 Total commercial 40,106 122,471 46,414 36,582 15,073 8,977 425,922 - 695,545 Leases Pass 49,340 79,901 $ 39,973 28,478 7,891 2,605 - - 208,188 Special Mention - - - 303 - - - - 303 Substandard - - - 2,015 367 259 - - 2,641 Total leases 49,340 79,901 39,973 30,796 8,258 2,864 - - 211,132 Commercial real estate - Investor Pass 110,946 309,370 210,682 86,228 61,532 92,627 19,558 - 890,943 Special Mention - 106 12,970 51,656 - 1,283 - - 66,015 Substandard - 2,883 - 492 - 3,478 1,956 - 8,809 Total commercial real estate - investor 110,946 312,359 223,652 138,376 61,532 97,388 21,514 - 965,767 Commercial real estate - Owner occupied Pass 58,243 198,978 119,597 74,853 55,681 115,207 1,697 - 624,256 Special Mention - 15,314 - 2,963 - - - - 18,277 Substandard - 6,793 706 1,686 - 4,074 - - 13,259 Total commercial real estate - owner occupied 58,243 221,085 120,303 79,502 55,681 119,281 1,697 - 655,792 Construction Pass 7,304 74,396 46,389 11,964 2,792 1,561 1,462 - 145,868 Special Mention - 922 5,235 10,348 - - - - 16,505 Substandard 1,214 - - - 1,971 - - - 3,185 Total construction 8,518 75,318 51,624 22,312 4,763 1,561 1,462 - 165,558 Residential real estate - Investor Pass 9,367 10,468 7,951 11,330 6,734 14,482 970 - 61,302 Special Mention - - - - - - - - - Substandard - 119 - 510 153 762 - - 1,544 Total residential real estate - investor 9,367 10,587 7,951 11,840 6,887 15,244 970 - 62,846 Residential real estate - Owner occupied Pass 2,425 47,217 30,623 17,882 12,967 84,522 1,982 - 197,618 Special Mention - 638 - - - - - - 638 Substandard - 301 244 719 303 3,295 - - 4,862 Total residential real estate - owner occupied 2,425 48,156 30,867 18,601 13,270 87,817 1,982 - 203,118 Multifamily Pass 16,859 115,523 43,970 37,815 59,557 16,643 59 - 290,426 Special Mention - - - 6,891 - - - - 6,891 Substandard - 329 - - 730 310 - - 1,369 Total multifamily 16,859 115,852 43,970 44,706 60,287 16,953 59 - 298,686 HELOC Pass 117 1,878 2,052 1,972 736 676 101,653 - 109,084 Special Mention - - - - - - 108 - 108 Substandard - - 2 - 27 350 1,117 - 1,496 Total HELOC 117 1,878 2,054 1,972 763 1,026 102,878 - 110,688 HELOC - Purchased Pass - - - - - 2,499 6,881 - 9,380 Special Mention - - - - - - - - - Substandard - - - - - 173 - - 173 Total HELOC - purchased - - - - - 2,672 6,881 - 9,553 Other Pass 497 9,143 1,106 131 117 6,323 6,365 - 23,682 Special Mention - - - - - - - - - Substandard - - 3 - - - - - 3 Total other 497 9,143 1,109 131 117 6,323 6,365 - 23,685 Total loans Pass 295,042 959,128 544,727 292,798 223,031 346,059 561,269 - 3,222,054 Special Mention 162 17,378 18,858 72,784 - 1,283 3,243 - 113,708 Substandard 1,214 20,244 4,332 19,236 3,600 12,764 5,218 - 66,608 Total loans $ 296,418 $ 996,750 $ 567,917 $ 384,818 $ 226,631 $ 360,106 $ 569,730 $ - $ 3,402,370 Credit quality indicators by loan segment and loan origination date at December 31, 2021, were as follows: Revolving Loans Converted Revolving To Term 2021 2020 2019 2018 2017 Prior Loans Loans Total Commercial Pass $ 192,258 $ 50,638 $ 38,614 $ 28,177 $ 5,176 $ 10,945 $ 408,394 $ 30 $ 734,232 Special Mention 44 84 694 - - - 3,708 - 4,530 Substandard 9,498 4,048 14,121 326 - 75 4,644 - 32,712 Total commercial 201,800 54,770 53,429 28,503 5,176 11,020 416,746 30 771,474 Leases Pass 83,402 44,129 $ 32,259 8,950 1,170 2,367 - - 172,277 Special Mention - - - - - - - - - Substandard - - 2,834 623 - 297 - - 3,754 Total leases 83,402 44,129 35,093 9,573 1,170 2,664 - - 176,031 Commercial real estate - Investor Pass 315,247 233,964 147,511 85,049 64,810 55,523 18,602 - 920,706 Special Mention 15,466 - 10,550 - - - - - 26,016 Substandard 2,238 2,378 451 181 3,612 1,807 - - 10,667 Total commercial real estate - investor 332,951 236,342 158,512 85,230 68,422 57,330 18,602 - 957,389 Commercial real estate - Owner occupied Pass 220,324 96,607 61,511 60,915 54,236 59,887 2,522 - 556,002 Special Mention - - 2,953 - - - - - 2,953 Substandard 8,318 942 1,686 - 1,251 3,232 - - 15,429 Total commercial real estate - owner occupied 228,642 97,549 66,150 60,915 55,487 63,119 2,522 - 574,384 Construction Pass 88,620 65,629 37,169 2,727 477 1,193 1,143 - 196,958 Special Mention - 2,138 4,932 - - - - - 7,070 Substandard 160 - - 1,944 - - - - 2,104 Total construction 88,780 67,767 42,101 4,671 477 1,193 1,143 - 206,132 Residential real estate - Investor Pass 13,371 9,758 13,084 6,392 7,059 10,602 1,868 - 62,134 Special Mention - - - - - - - - - Substandard 121 144 - 197 385 418 - - 1,265 Total residential real estate - investor 13,492 9,902 13,084 6,589 7,444 11,020 1,868 - 63,399 Residential real estate - Owner occupied Pass 48,009 31,912 20,990 13,304 30,562 60,661 2,052 - 207,490 Special Mention 659 - - - - - - - 659 Substandard 322 183 6 1,219 176 3,193 - - 5,099 Total residential real estate - owner occupied 48,990 32,095 20,996 14,523 30,738 63,854 2,052 - 213,248 Multifamily Pass 109,175 71,748 39,293 61,190 11,399 7,117 64 - 299,986 Special Mention - - 6,900 - - - - - 6,900 Substandard 433 - - 1,543 302 - - - 2,278 Total multifamily 109,608 71,748 46,193 62,733 11,701 7,117 64 - 309,164 HELOC Pass 907 2,091 2,131 805 1,667 1,869 104,843 - 114,313 Special Mention - - - - - - 108 - 108 Substandard - - - 17 12 196 1,018 - 1,243 Total HELOC 907 2,091 2,131 822 1,679 2,065 105,969 - 115,664 HELOC - Purchased Pass - - - - - 10,446 - - 10,446 Special Mention - - - - - - - - - Substandard - - - - - 180 - - 180 Total HELOC - purchased - - - - - 10,626 - - 10,626 Other Pass 8,659 1,099 437 254 1,414 5,358 7,206 - 24,427 Special Mention - - - - - - - - - Substandard - 3 - 7 - - - - 10 Total other 8,659 1,102 437 261 1,414 5,358 7,206 - 24,437 Total loans Pass 1,079,972 607,575 392,999 267,763 177,970 225,968 546,694 30 3,298,971 Special Mention 16,169 2,222 26,029 - - - 3,816 - 48,236 Substandard 21,090 7,698 19,098 6,057 5,738 9,398 5,662 - 74,741 Total loans $ 1,117,231 $ 617,495 $ 438,126 $ 273,820 $ 183,708 $ 235,366 $ 556,172 $ 30 $ 3,421,948 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Real Estate Owned | |
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve | Three Months Ended March 31, Other real estate owned 2022 2021 Balance at beginning of period $ 2,356 $ 2,474 Property additions, net of acquisition adjustments 87 - Less: Proceeds from property disposals, net of participation purchase and of gains/losses 69 305 Period valuation write-down - 6 Balance at end of period $ 2,374 $ 2,163 |
Schedule of activity in valuation allowance | Three Months Ended March 31, 2022 2021 Balance at beginning of period $ 1,179 $ 1,643 Provision for unrealized losses - 6 Balance at end of period $ 1,179 $ 1,649 |
Schedule of expenses related to foreclosed assets, net of lease revenue | Three Months Ended March 31, 2022 2021 Gain on sales, net $ (49) $ (20) Provision for unrealized losses - 6 Operating expenses 37 54 Less: Lease revenue - 4 Net OREO (gain) expense $ (12) $ 36 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Schedule of major classifications of deposits | March 31, 2022 December 31, 2021 Noninterest bearing demand $ 1,461,712 $ 1,428,055 Savings 1,884,352 1,826,346 NOW accounts 622,606 605,056 Money market accounts 1,098,499 1,102,965 Certificates of deposit of less than $100,000 277,135 287,238 Certificates of deposit of $100,000 through $250,000 144,663 147,854 Certificates of deposit of more than $250,000 55,758 68,718 Total deposits $ 5,544,725 $ 5,466,232 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Borrowings | |
Summary of borrowings and junior subordinated debentures | March 31, 2022 December 31, 2021 Securities sold under repurchase agreements $ 33,521 $ 50,337 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,233 59,212 Senior notes 44,506 44,480 Notes payable and other borrowings 17,992 19,074 Total borrowings $ 181,025 $ 198,876 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Compensation Plans | |
Summary of changes in nonvested shares of restricted share rights | March 31, 2022 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 540,306 $ 12.04 Granted 251,055 14.28 Vested - - Forfeited - - Unvested at March 31 791,361 $ 12.75 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Schedule of Earnings Per Share | Three Months Ended March 31, 2022 2021 Basic earnings per share: Weighted-average common shares outstanding 44,461,045 29,225,775 Net income $ 12,020 $ 11,879 Basic earnings per share $ 0.27 $ 0.41 Diluted earnings per share: Weighted-average common shares outstanding 44,461,045 29,225,775 Dilutive effect of unvested restricted awards 1 700,670 558,982 Diluted average common shares outstanding 45,161,715 29,784,757 Net Income $ 12,020 $ 11,879 Diluted earnings per share $ 0.27 $ 0.40 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters (T
Regulatory & Capital Matters (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Common equity tier 1 capital to risk weighted assets Consolidated $ 404,444 9.73 % $ 290,967 7.00 % N/A N/A Old Second Bank 528,655 12.74 290,470 7.00 $ 269,722 6.50 % Total capital to risk weighted assets Consolidated 533,984 12.85 436,329 10.50 N/A N/A Old Second Bank 573,949 13.83 435,753 10.50 415,003 10.00 Tier 1 capital to risk weighted assets Consolidated 429,444 10.33 353,366 8.50 N/A N/A Old Second Bank 528,655 12.74 352,713 8.50 331,965 8.00 Tier 1 capital to average assets Consolidated 429,444 7.00 245,397 4.00 N/A N/A Old Second Bank 528,655 8.61 245,600 4.00 307,001 5.00 December 31, 2021 Common equity tier 1 capital to risk weighted assets Consolidated $ 394,421 9.46 % $ 291,855 7.00 % N/A N/A Old Second Bank 514,992 12.41 290,487 7.00 $ 269,738 6.50 % Total capital to risk weighted assets Consolidated 522,932 12.55 437,513 10.50 N/A N/A Old Second Bank 558,503 13.46 435,682 10.50 414,935 10.00 Tier 1 capital to risk weighted assets Consolidated 419,421 10.06 354,382 8.50 N/A N/A Old Second Bank 514,992 12.41 352,734 8.50 331,985 8.00 Tier 1 capital to average assets Consolidated 419,421 7.81 214,812 4.00 N/A N/A Old Second Bank 514,992 9.58 215,028 4.00 268,785 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) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 220,563 $ - $ - $ 220,563 U.S. government agencies - 59,036 - 59,036 U.S. government agencies mortgage-backed - 153,148 - 153,148 States and political subdivisions - 222,575 13,833 236,408 Corporate bonds - 9,683 - 9,683 Collateralized mortgage obligations - 696,513 - 696,513 Asset-backed securities - 274,941 - 274,941 Collateralized loan obligations - 166,158 - 166,158 Loans held-for-sale - 8,075 - 8,075 Mortgage servicing rights - - 10,376 10,376 Interest rate swap agreements - 952 - 952 Mortgage banking derivatives - 930 - 930 Total $ 220,563 $ 1,592,011 $ 24,209 $ 1,836,783 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 3,663 $ - $ 3,663 Total $ - $ 3,663 $ - $ 3,663 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 202,339 $ - $ - $ 202,339 U.S. government agencies - 61,888 - 61,888 U.S. government agencies mortgage-backed - 172,302 - 172,302 States and political subdivisions - 242,373 14,092 256,465 Corporate bonds - 9,887 - 9,887 Collateralized mortgage obligations - 672,967 - 672,967 Asset-backed securities - 236,877 - 236,877 Collateralized loan obligations - 79,763 - 79,763 Loans held-for-sale - 4,737 - 4,737 Mortgage servicing rights - - 7,097 7,097 Interest rate swap agreements - 3,494 - 3,494 Mortgage banking derivatives - 508 - 508 Total $ 202,339 $ 1,484,796 $ 21,189 $ 1,708,324 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 6,809 $ - $ 6,809 Total $ - $ 6,809 $ - $ 6,809 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Three Months Ended March 31, 2022 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2022 $ 14,092 $ 7,097 Total gains or losses Included in earnings (33) 3,228 Included in other comprehensive income (938) - Purchases, issuances, sales, and settlements Purchases 1,076 - Issuances - 301 Settlements (364) (250) Ending balance March 31, 2022 $ 13,833 $ 10,376 Three Months Ended March 31, 2021 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2021 $ 4,319 $ 4,224 Total gains or losses Included in earnings (3) 1,485 Included in other comprehensive income 299 - Purchases, issuances, sales, and settlements Purchases 58 - Issuances - 552 Settlements (32) (372) Ending balance March 31, 2021 $ 4,641 $ 5,889 |
Schedule of quantitative information about level 3 fair value measurements | The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of March 31, 2022: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 10,376 Discounted Cash Flow Discount Rate 9.0 - 11.0% 9.0 % Prepayment Speed 5.7 - 28.9% 6.2 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2021: Weighted Measured at fair value Significant Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 7,097 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 0.0 - 36.6% 11.9 % |
Schedule of assets measured at fair value on a nonrecurring basis | March 31, 2022 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 21,990 $ 21,990 Other real estate owned, net 2 - - 2,374 2,374 Total $ - $ - $ 24,364 $ 24,364 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 $33.6 million and a valuation allowance of $11.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $6.2 million for the three months ended March 31, 2022. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.4 million at March 31, 2022, which is made up of the outstanding balance of $3.7 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $1.2 million. December 31, 2021 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 13,138 $ 13,138 Other real estate owned, net 2 - - 2,356 2,356 Total $ - $ - $ 15,494 $ 15,494 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 $18.5 million and a valuation allowance of $5.4 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $2.7 million for the year December 31, 2021. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.4 million at December 31, 2021, which is made up of the outstanding balance of $3.7 million , net of a purchase accounting adjustment of $131,000 and a valuation allowance of $1.2 million. |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Values of Financial Instruments | |
Schedule of carrying amount and estimated fair values of financial instruments | March 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 41,511 $ 41,511 $ 41,511 $ - $ - Interest earning deposits with financial institutions 593,166 593,166 593,166 - - Securities available-for-sale 1,816,450 1,692,488 220,563 1,582,054 13,833 FHLBC and FRBC stock 21,974 21,974 - 21,974 - Loans held-for-sale 8,075 8,075 - 8,075 - Net loans 3,358,062 3,386,123 - - 3,386,123 Mortgage servicing rights 10,376 10,376 - - 10,376 Interest rate swap agreements 952 952 - 952 - Interest rate lock commitments and forward contracts 930 930 - 930 - Interest receivable on securities and loans 14,910 14,910 - 14,910 - Financial liabilities: Noninterest bearing deposits $ 1,461,712 $ 1,461,712 $ 1,461,712 $ - $ - Interest bearing deposits 4,083,013 4,083,279 - 4,083,279 - Securities sold under repurchase agreements 33,521 33,521 - 33,521 - Junior subordinated debentures 25,773 23,711 - 23,711 - Subordinated debentures 59,233 56,233 56,233 Senior notes 44,506 44,466 44,466 - - Note payable and other borrowings 17,992 18,034 - 18,034 - Interest rate swap agreements 3,657 3,657 - 3,657 - Interest payable on deposits and borrowings 1,854 1,854 - 1,854 - December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 38,565 $ 38,565 $ 38,565 $ - $ - Interest earning deposits with financial institutions 713,542 713,542 713,542 - - Securities available-for-sale 1,692,488 1,692,488 202,339 1,476,057 14,092 FHLBC and FRBC stock 13,257 13,257 - 13,257 - Loans held-for-sale 4,737 4,737 - 4,737 - Net loans 3,377,667 3,408,199 - - 3,408,199 Mortgage servicing rights 7,097 7,097 - - 7,097 Interest rate swap agreements 3,494 3,494 - 3,494 - Interest rate lock commitments and forward contracts 508 508 - 508 - Interest receivable on securities and loans 13,431 13,431 - 13,431 - Financial liabilities: Noninterest bearing deposits $ 1,428,055 $ 1,428,055 $ 1,428,055 $ - $ - Interest bearing deposits 4,038,177 4,041,369 - 4,041,369 - Securities sold under repurchase agreements 50,377 50,377 - 50,377 - Junior subordinated debentures 25,773 18,557 - 18,557 - Subordinated debentures 59,212 60,111 60,111 Senior notes 44,480 44,480 44,480 - Note payable and other borrowings 19,074 19,411 - 19,411 - Interest rate swap agreements 6,788 6,788 - 6,788 - Interest payable on deposits and borrowings 1,706 1,706 - 1,706 - |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 | March 31, 2022 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets - Other Liabilities 2,705 Total derivatives designated as hedging instruments - 2,705 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 23 150,712 Other Assets 952 Other Liabilities 952 Interest rate lock commitments and forward contracts 81 32,994 Other Assets 930 Other Liabilities - Other contracts 3 17,050 Other Assets - Other Liabilities 6 Total derivatives not designated as hedging instruments 1,882 958 December 31, 2021 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 808 Other Liabilities 4,102 Total derivatives designated as hedging instruments 808 4,102 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 26 165,005 Other Assets 2,686 Other Liabilities 2,686 Interest rate lock commitments and forward contracts 87 34,414 Other Assets 508 Other Liabilities - Other contracts 3 17,173 Other Assets - Other Liabilities 21 Total derivatives not designated as hedging instruments 3,194 2,707 |
Schedule of financial instrument commitments | March 31, 2022 December 31, 2021 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 384 $ 19,416 $ 19,800 $ 384 $ 17,474 $ 17,858 Commercial standby - - - - - - Performance standby 308 15,683 15,991 456 14,907 15,363 692 35,099 35,791 840 32,381 33,221 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 692 $ 35,166 $ 35,858 $ 840 $ 32,448 $ 33,288 Unused loan commitments: $ 107,085 $ 910,602 $ 1,017,687 $ 84,225 $ 895,665 $ 979,890 |
Basis of Presentation and Cha_3
Basis of Presentation and Changes in Significant Accounting Policies (Details) - Subsequent Event $ / shares in Units, $ in Millions | May 09, 2022USD ($)$ / shares |
Subsequent Events | |
Cash dividend declared (per share) | $ / shares | $ 0.05 |
Dividends paid | $ | $ 2.2 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Dec. 01, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Liabilities assumed: | |||
Goodwill | $ 86,332,000 | $ 86,332,000 | |
West Suburban Bancorp, Inc | |||
Assets acquired: | |||
Cash on due from banks | $ 16,794,000 | ||
Interest bearing deposits with financial institutions | 232,880,000 | ||
Securities available-for-sale, at fair value | 1,066,373,000 | ||
FHLBC stock | 3,340,000 | ||
Loans, net of allowance for credit losses Day One PCD loan adjustment | 1,502,118,000 | ||
Premises and equipment | 47,456,000 | ||
Other real estate owned | 5,552,000 | ||
Core deposit intangible | 14,772,000 | ||
Deferred tax assets, net | 2,093,000 | ||
Other assets | 52,710,000 | ||
Total assets | 2,944,088,000 | ||
Liabilities assumed: | |||
Deposits-noninterest bearing demand | 409,141,000 | ||
Deposits - Savings, NOW and money market | 2,069,890,000 | ||
Deposits-Time | 215,205,000 | ||
Total deposits | 2,694,236,000 | ||
Reserve for unfunded commitments | 1,787,000 | ||
Other liabilities | 20,629,000 | ||
Total liabilities | 2,716,652,000 | ||
Cash consideration paid | 100,679,000 | ||
Stock issued for acquisition | 194,484,000 | ||
Total Liabilities Assumed and Cash Consideration Paid for Acquisition | 3,011,815,000 | ||
Goodwill | $ 67,727,000 | ||
Shares issued or issuable | 42.413 | ||
Cash consideration for each share | $ 271.15 | ||
Merger consideration | $ 295,200,000 | ||
Common stock shares issued | 15,700,000 | ||
Expenses related to acquisition | $ 5,600,000 | $ 13,200,000 |
Acquisition - Purchase Price of
Acquisition - Purchase Price of PCD Loans (Details) - West Suburban Bancorp, Inc $ in Thousands | Dec. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Purchase price of PCD loans at acquisition | $ 1,502,118 |
PCI | |
Business Acquisition [Line Items] | |
Par value of acquired loans | 108,241 |
Allowance for credit losses | (12,075) |
Non-credit discount | (1,723) |
Purchase price of PCD loans at acquisition | $ 94,443 |
Acquisition - Carrying Value of
Acquisition - Carrying Value of Acquired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Book value of loans acquired | $ 1,550,180 | $ 1,635,802 |
Accretion recorded on acquired loans year to date | 2,416 | 966 |
West Suburban Bancorp, Inc | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 1,442,906 | 1,521,161 |
Abc Bank | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 62,438 | 68,783 |
Talmer Bank | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 44,836 | 45,858 |
PCI | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 93,135 | 106,956 |
Accretion recorded on acquired loans year to date | 400 | 401 |
PCI | West Suburban Bancorp, Inc | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 88,601 | 102,409 |
PCI | Abc Bank | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 4,534 | 4,547 |
Non-PCI | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 1,457,045 | 1,528,846 |
Accretion recorded on acquired loans year to date | 2,016 | 565 |
Non-PCI | West Suburban Bancorp, Inc | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 1,354,305 | 1,418,752 |
Non-PCI | Abc Bank | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | 57,904 | 64,236 |
Non-PCI | Talmer Bank | ||
Business Acquisition [Line Items] | ||
Book value of loans acquired | $ 44,836 | $ 45,858 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($) | |
Securities Available-for-Sale | ||
Amortized Cost | $ 1,865,807 | $ 1,677,016 |
Gross Unrealized Gains | 5,029 | 20,587 |
Gross Unrealized Losses | (54,386) | (5,115) |
Debt Securities, Available-for-sale, Total | 1,816,450 | 1,692,488 |
Accrued interest receivable | 5,200 | 4,300 |
FHLB and FRB Stock | ||
FHLBC stock | 7,100 | 7,100 |
FRBC stock | 14,900 | 6,200 |
Securities pledged to secure deposits and for other purposes | 478,200 | 501,300 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 1,816,450 | 1,692,488 |
Total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal | $ 20,300 | |
Percentage of total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal | 9.29 | |
Number of securities issued from originators | item | 0 | |
Minimum percentage of securities investment | 10.00% | |
Reimbursement requests greater than 5 % | ||
Other disclosures | ||
Percentage of outstanding principal amount of loans guaranteed by US Department of Education | 85 | |
Percent of insured loan | 5 | |
Reimbursement requests greater than 9 % | ||
Other disclosures | ||
Percentage of outstanding principal amount of loans guaranteed by US Department of Education | 75 | |
Percent of insured loan | 9 | |
U.S. Treasury | ||
Securities Available-for-Sale | ||
Amortized Cost | $ 227,646 | 202,251 |
Gross Unrealized Gains | 13 | 125 |
Gross Unrealized Losses | (7,096) | (37) |
Debt Securities, Available-for-sale, Total | 220,563 | 202,339 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 220,563 | 202,339 |
U.S. government agencies | ||
Securities Available-for-Sale | ||
Amortized Cost | 62,029 | 62,587 |
Gross Unrealized Losses | (2,993) | (699) |
Debt Securities, Available-for-sale, Total | 59,036 | 61,888 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 59,036 | 61,888 |
U.S. government agencies mortgage-backed | ||
Securities Available-for-Sale | ||
Amortized Cost | 161,119 | 172,016 |
Gross Unrealized Gains | 117 | 856 |
Gross Unrealized Losses | (8,088) | (570) |
Debt Securities, Available-for-sale, Total | 153,148 | 172,302 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 153,148 | 172,302 |
States and political subdivisions | ||
Securities Available-for-Sale | ||
Amortized Cost | 237,988 | 240,793 |
Gross Unrealized Gains | 4,358 | 16,344 |
Gross Unrealized Losses | (5,938) | (672) |
Debt Securities, Available-for-sale, Total | 236,408 | 256,465 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 236,408 | 256,465 |
Corporate bonds | ||
Securities Available-for-Sale | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Losses | (317) | (113) |
Debt Securities, Available-for-sale, Total | 9,683 | 9,887 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 9,683 | 9,887 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 720,960 | 673,238 |
Gross Unrealized Gains | 298 | 2,014 |
Gross Unrealized Losses | (24,745) | (2,285) |
Debt Securities, Available-for-sale, Total | 696,513 | 672,967 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 696,513 | 672,967 |
Asset-backed Securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 278,941 | 236,293 |
Gross Unrealized Gains | 240 | 1,245 |
Gross Unrealized Losses | (4,240) | (661) |
Debt Securities, Available-for-sale, Total | 274,941 | 236,877 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | 274,941 | 236,877 |
FFEL | ||
Securities Available-for-Sale | ||
Debt Securities, Available-for-sale, Total | 218,100 | |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | $ 218,100 | |
Percentage of outstanding principal amount of loans guaranteed by US Department of Education | 97 | |
Collateralized loan obligations. | ||
Securities Available-for-Sale | ||
Amortized Cost | $ 167,124 | 79,838 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | (969) | (78) |
Debt Securities, Available-for-sale, Total | 166,158 | 79,763 |
Other disclosures | ||
Debt Securities, Available-for-sale, Total | $ 166,158 | $ 79,763 |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 7,451 | |
Due after one year through five years | 300,065 | |
Due after five years through ten years | 46,076 | |
Due after ten years | 184,071 | |
Debt securities excluding securities not due at a single maturity date | 537,663 | |
Total | $ 1,865,807 | $ 1,677,016 |
Securities Available-for-Sale, Weighted Average Yield | ||
Due in one year or less (as a percent) | 1.47% | |
Due after one year through five years (as a percent) | 0.95% | |
Due after five years through ten years (as a percent) | 2.50% | |
Due after ten years (as a percent) | 2.98% | |
Debt securities (as a percent) | 1.78% | |
Total (as a percent) | 1.61% | |
Securities Available-for-Sale, Fair Value | ||
Due in one year or less | $ 7,458 | |
Due after one year through five years | 289,731 | |
Due after five years through ten years | 44,739 | |
Due after ten years | 183,762 | |
Debt securities | 525,690 | |
Debt Securities, Available-for-sale, Total | 1,816,450 | 1,692,488 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Total | 720,960 | 673,238 |
Securities Available-for-Sale, Fair Value | ||
Debt Securities, Available-for-sale, Total | 696,513 | 672,967 |
Asset-backed Securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 278,941 | |
Total | $ 278,941 | 236,293 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 1.33% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 274,941 | |
Debt Securities, Available-for-sale, Total | 274,941 | 236,877 |
Collateralized loan obligations. | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 167,124 | |
Total | $ 167,124 | 79,838 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 2.06% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 166,158 | |
Debt Securities, Available-for-sale, Total | 166,158 | $ 79,763 |
Mortgage-backed and collateralized mortgage obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | $ 882,079 | |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 1.50% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 849,661 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security | |
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 434 | 241 |
Greater than 12 months in an unrealized loss position | security | 17 | 11 |
Total | 451 | 252 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 51,797,000 | $ 4,230,000 |
Greater than 12 months in an unrealized loss position | 2,589,000 | 885,000 |
Total | 54,386,000 | 5,115,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 1,290,336,000 | 734,235,000 |
Greater than 12 months in an unrealized loss position | 35,508,000 | 24,626,000 |
Total | 1,325,844,000 | $ 758,861,000 |
Credit losses were determined | 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 | 5 | 1 |
Total | 5 | 1 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 7,096,000 | $ 37,000 |
Total | 7,096,000 | 37,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 216,531,000 | 49,719,000 |
Total | $ 216,531,000 | $ 49,719,000 |
U.S. government agencies | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 5 | 5 |
Greater than 12 months in an unrealized loss position | security | 4 | 4 |
Total | 9 | 9 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 2,884,000 | $ 592,000 |
Greater than 12 months in an unrealized loss position | 109,000 | 107,000 |
Total | 2,993,000 | 699,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 54,588,000 | 56,879,000 |
Greater than 12 months in an unrealized loss position | 4,448,000 | 5,008,000 |
Total | $ 59,036,000 | $ 61,887,000 |
Mortgage Backed Securities, Issued by US Government Agencies | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 124 | 63 |
Greater than 12 months in an unrealized loss position | security | 5 | 1 |
Total | 129 | 64 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 7,322,000 | $ 505,000 |
Greater than 12 months in an unrealized loss position | 766,000 | 65,000 |
Total | 8,088,000 | 570,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 142,866,000 | 78,711,000 |
Greater than 12 months in an unrealized loss position | 5,341,000 | 1,663,000 |
Total | $ 148,207,000 | $ 80,374,000 |
States and political subdivisions | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 27 | 7 |
Greater than 12 months in an unrealized loss position | security | 1 | 1 |
Total | 28 | 8 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 4,535,000 | $ 55,000 |
Greater than 12 months in an unrealized loss position | 1,403,000 | 617,000 |
Total | 5,938,000 | 672,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 90,991,000 | 8,430,000 |
Greater than 12 months in an unrealized loss position | 3,232,000 | 4,051,000 |
Total | $ 94,223,000 | $ 12,481,000 |
Corporate bonds | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 2 | 2 |
Total | 2 | 2 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 317,000 | $ 113,000 |
Total | 317,000 | 113,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 9,683,000 | 9,887,000 |
Total | $ 9,683,000 | $ 9,887,000 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 208 | 133 |
Greater than 12 months in an unrealized loss position | security | 1 | |
Total | 209 | 133 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 24,649,000 | $ 2,285,000 |
Greater than 12 months in an unrealized loss position | 96,000 | |
Total | 24,745,000 | 2,285,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 647,144,000 | 381,658,000 |
Greater than 12 months in an unrealized loss position | 7,366,000 | |
Total | $ 654,510,000 | $ 381,658,000 |
Asset-backed Securities | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 41 | 20 |
Greater than 12 months in an unrealized loss position | security | 4 | 3 |
Total | 45 | 23 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 4,109,000 | $ 608,000 |
Greater than 12 months in an unrealized loss position | 131,000 | 53,000 |
Total | 4,240,000 | 661,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 230,000 | 103,819,000 |
Greater than 12 months in an unrealized loss position | 4,534,000 | 3,276,000 |
Total | $ 4,764,000 | $ 107,095,000 |
Collateralized loan obligations. | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 22 | 10 |
Greater than 12 months in an unrealized loss position | security | 2 | 2 |
Total | 24 | 12 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 885,000 | $ 35,000 |
Greater than 12 months in an unrealized loss position | 84,000 | 43,000 |
Total | 969,000 | 78,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 128,303,000 | 45,132,000 |
Greater than 12 months in an unrealized loss position | 10,587,000 | 10,628,000 |
Total | $ 138,890,000 | $ 55,760,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans | ||
Total Loans | $ 3,402,370 | $ 3,421,948 |
Allowance for credit losses | (44,308) | (44,281) |
Net loans | 3,358,062 | 3,377,667 |
Loans and leases receivable, accrued interest receivable | 9,600 | 9,200 |
Paycheck Protection Program (PPP) | ||
Loans | ||
Total Loans | 11,200 | 38,400 |
Collateral | ||
Loans | ||
Allowance for credit losses | (5,048) | (5,387) |
Commercial | ||
Loans | ||
Total Loans | 695,545 | 771,474 |
Commercial | Collateral | ||
Loans | ||
Allowance for credit losses | (2,432) | (2,677) |
Leases | ||
Loans | ||
Total Loans | 211,132 | 176,031 |
Leases | Collateral | ||
Loans | ||
Allowance for credit losses | (475) | (811) |
Commercial real estate - Investor | ||
Loans | ||
Total Loans | 965,767 | 957,389 |
Commercial real estate - Investor | Collateral | ||
Loans | ||
Allowance for credit losses | (288) | |
Commercial real estate - Owner occupied | ||
Loans | ||
Total Loans | 655,792 | 574,384 |
Commercial real estate - Owner occupied | Collateral | ||
Loans | ||
Allowance for credit losses | (554) | (362) |
Construction | ||
Loans | ||
Total Loans | 165,558 | 206,132 |
Construction | Collateral | ||
Loans | ||
Allowance for credit losses | (1,007) | (992) |
Residential real estate - Investor | ||
Loans | ||
Total Loans | 62,846 | 63,399 |
Residential real estate - Owner occupied | ||
Loans | ||
Total Loans | 203,118 | 213,248 |
Residential real estate - Owner occupied | Collateral | ||
Loans | ||
Allowance for credit losses | (260) | (276) |
Multifamily | ||
Loans | ||
Total loans, excluding deferred loan costs and PCI loans | 298,686 | 309,164 |
Total Loans | 298,686 | 309,164 |
Multifamily | Collateral | ||
Loans | ||
Allowance for credit losses | (75) | |
HELOC | ||
Loans | ||
Total Loans | 110,688 | 115,664 |
HELOC | Collateral | ||
Loans | ||
Allowance for credit losses | (32) | (190) |
HELOC - Purchased | ||
Loans | ||
Total Loans | 9,553 | 10,626 |
Other 2 | ||
Loans | ||
Total Loans | $ 23,685 | $ 24,437 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Real estate | Loan receivables | Customer Concentration Risk | ||
Loans | ||
Loans receivable as a percentage of total portfolio | 72.70% | 71.60% |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Allowance for loan losses: | |||
Beginning Balance | $ 44,281 | $ 33,855 | |
Provision for (Release of) Credit Losses | 320 | (3,470) | |
Charge-offs | 514 | 42 | |
Recoveries | 221 | 624 | |
Ending Balance | 44,308 | 30,967 | |
Allowance for credit loss unfunded commitment, purchase accounting adjustment | 1,500 | ||
Commercial | |||
Allowance for loan losses: | |||
Beginning Balance | 11,751 | 2,812 | |
Provision for (Release of) Credit Losses | 825 | 446 | |
Charge-offs | 30 | 2 | |
Recoveries | 30 | 20 | |
Ending Balance | 12,576 | 3,276 | |
Leases | |||
Allowance for loan losses: | |||
Beginning Balance | 3,480 | 3,888 | |
Provision for (Release of) Credit Losses | (907) | (506) | |
Ending Balance | 2,573 | 3,382 | |
Commercial real estate - Investor | |||
Allowance for loan losses: | |||
Beginning Balance | 13,093 | 9,205 | |
Provision for (Release of) Credit Losses | 2,679 | (1,317) | |
Charge-offs | 236 | ||
Recoveries | 23 | 20 | |
Ending Balance | 15,559 | 7,908 | |
Commercial real estate - Owner occupied | |||
Allowance for loan losses: | |||
Beginning Balance | 2,615 | 2,251 | |
Provision for (Release of) Credit Losses | 768 | (734) | |
Charge-offs | 121 | 3 | |
Recoveries | 8 | 208 | |
Ending Balance | 3,270 | 1,722 | |
Real estate - construction | |||
Allowance for loan losses: | |||
Beginning Balance | 3,373 | 4,054 | |
Provision for (Release of) Credit Losses | (515) | (335) | |
Ending Balance | 2,858 | 3,719 | |
Residential real estate - Investor | |||
Allowance for loan losses: | |||
Beginning Balance | 760 | 1,740 | |
Provision for (Release of) Credit Losses | (67) | (203) | |
Recoveries | 10 | 266 | |
Ending Balance | 703 | 1,803 | |
Residential real estate - Owner occupied | |||
Allowance for loan losses: | |||
Beginning Balance | 2,832 | 2,714 | |
Provision for (Release of) Credit Losses | (965) | (235) | |
Recoveries | 83 | 49 | |
Ending Balance | 1,950 | 2,528 | |
Multifamily | |||
Allowance for loan losses: | |||
Beginning Balance | 3,675 | 3,625 | |
Provision for (Release of) Credit Losses | (698) | 640 | |
Ending Balance | 2,977 | 4,265 | |
HELOC | |||
Allowance for loan losses: | |||
Beginning Balance | 2,379 | 1,749 | |
Provision for (Release of) Credit Losses | (820) | (48) | |
Charge-offs | 12 | ||
Recoveries | 35 | 24 | |
Ending Balance | 1,594 | 1,713 | |
HELOC - Purchased | |||
Allowance for loan losses: | |||
Beginning Balance | 131 | 199 | |
Provision for (Release of) Credit Losses | (50) | 96 | |
Ending Balance | 81 | 295 | |
Other | |||
Allowance for loan losses: | |||
Beginning Balance | 192 | 1,618 | |
Provision for (Release of) Credit Losses | 70 | (1,274) | |
Charge-offs | 127 | 25 | |
Recoveries | 32 | 37 | |
Ending Balance | 167 | 356 | |
Unfunded Loan Commitment | |||
Allowance for loan losses: | |||
Beginning Balance | 4,500 | ||
Ending Balance | 4,200 | $ 3,500 | |
Allowance for credit loss unfunded commitment, purchase accounting adjustment | $ 1,500 | $ 1,700 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 37,323 | $ 43,129 |
ACL Allocation | 44,308 | 44,281 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 23,203 | 26,977 |
Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 9,022 | 9,901 |
Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,641 | 3,249 |
Other. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,457 | 3,002 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 5,048 | 5,387 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 10,977 | 11,887 |
Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 1,955 | 1,986 |
Commercial | Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 9,022 | 9,901 |
Commercial | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 2,432 | 2,677 |
Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,641 | 3,754 |
Leases | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,641 | 3,249 |
Leases | Other. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 505 | |
Leases | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 475 | 811 |
Commercial real estate - Investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 4,379 | 5,693 |
Commercial real estate - Investor | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 4,379 | 5,693 |
Commercial real estate - Investor | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 288 | |
Commercial real estate - Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 9,871 | 11,637 |
Commercial real estate - Owner occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 7,414 | 9,147 |
Commercial real estate - Owner occupied | Other. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,457 | 2,490 |
Commercial real estate - Owner occupied | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 554 | 362 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,098 | 2,104 |
Construction | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,098 | 2,104 |
Construction | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 1,007 | 992 |
Residential real estate - Investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 1,391 | 925 |
Residential real estate - Investor | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 1,391 | 925 |
Residential real estate - Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 3,941 | 4,271 |
Residential real estate - Owner occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 3,941 | 4,271 |
Residential real estate - Owner occupied | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 260 | 276 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 938 | 1,845 |
Multifamily | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 938 | 1,845 |
Multifamily | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 75 | |
HELOC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 914 | 826 |
HELOC | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 914 | 826 |
HELOC | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 32 | 190 |
HELOC - Purchased | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 173 | 180 |
HELOC - Purchased | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 173 | 180 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 7 | |
Other | Other. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 7 | |
Other | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | $ 4 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Aged analysis of past due loans | ||
Non accrual including PCI Loans | $ 35,973 | $ 41,531 |
Total Loans | 3,402,370 | 3,421,948 |
Total loans, including deferred loan loan costs and PCI | 3,358,062 | 3,377,667 |
Recorded Investment 90 days or Greater Past Due and Accruing | 743 | |
Total Loans | 3,110 | |
Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 113,708 | 48,236 |
Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 38,317 | |
Total Past Due Including PCI loans | 27,342 | |
30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 21,079 | |
Total Past Due Including PCI loans | 9,342 | |
60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 839 | |
Total Past Due Including PCI loans | 4,356 | |
90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 16,399 | |
Total Past Due Including PCI loans | 13,644 | |
Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 3,364,053 | |
Current including PCI Loans | 3,394,606 | |
Commercial | ||
Aged analysis of past due loans | ||
Nonaccrual | 9,029 | 11,894 |
Total Loans | 695,545 | 771,474 |
Recorded Investment 90 days or Greater Past Due and Accruing | 1,396 | |
Commercial | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 4,971 | 4,530 |
Commercial | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 12,576 | 6,648 |
Commercial | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 4,904 | 3,407 |
Commercial | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 548 | 1,413 |
Commercial | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 7,124 | 1,828 |
Commercial | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 682,969 | 764,826 |
Leases | ||
Aged analysis of past due loans | ||
Nonaccrual | 2,641 | 3,754 |
Total Loans | 211,132 | 176,031 |
Leases | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 303 | |
Leases | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 1,937 | 1,696 |
Leases | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 401 | 125 |
Leases | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,536 | 1,571 |
Leases | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 209,195 | 174,335 |
Commercial real estate - Investor | ||
Aged analysis of past due loans | ||
Nonaccrual | 6,335 | 5,694 |
Total Loans | 965,767 | 957,389 |
Commercial real estate - Investor | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 66,015 | 26,016 |
Commercial real estate - Investor | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 3,400 | 1,374 |
Commercial real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 3,399 | |
Commercial real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 267 | |
Commercial real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1 | 1,107 |
Commercial real estate - Investor | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 962,367 | 956,015 |
Commercial real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Nonaccrual | 9,871 | 11,637 |
Total Loans | 655,792 | 574,384 |
Recorded Investment 90 days or Greater Past Due and Accruing | 1,594 | |
Commercial real estate - Owner occupied | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 18,277 | 2,953 |
Commercial real estate - Owner occupied | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 12,820 | 7,672 |
Commercial real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 9,764 | 2,324 |
Commercial real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 100 | 500 |
Commercial real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 2,956 | 4,848 |
Commercial real estate - Owner occupied | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 642,972 | 566,712 |
Real estate - construction | ||
Aged analysis of past due loans | ||
Nonaccrual | 155 | 160 |
Total Loans | 165,558 | 206,132 |
Recorded Investment 90 days or Greater Past Due and Accruing | 7 | |
Real estate - construction | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 124 | 854 |
Real estate - construction | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 117 | 854 |
Real estate - construction | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 7 | |
Real estate - construction | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 165,434 | 205,278 |
Residential real estate - Investor | ||
Aged analysis of past due loans | ||
Nonaccrual | 1,391 | 876 |
Total Loans | 62,846 | 63,399 |
Recorded Investment 90 days or Greater Past Due and Accruing | 2 | 23 |
Residential real estate - Investor | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 1,270 | 1,657 |
Residential real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 269 | 395 |
Residential real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 470 | |
Residential real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 1,001 | 792 |
Residential real estate - Investor | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 61,576 | 61,742 |
Residential real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Nonaccrual | 4,321 | 4,898 |
Total Loans | 203,118 | 213,248 |
Recorded Investment 90 days or Greater Past Due and Accruing | 20 | 97 |
Residential real estate - Owner occupied | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 638 | 659 |
Residential real estate - Owner occupied | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 4,492 | 5,662 |
Residential real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 1,805 | 1,994 |
Residential real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 98 | 591 |
Residential real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 2,589 | 3,077 |
Residential real estate - Owner occupied | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 198,626 | 207,586 |
Multifamily | ||
Aged analysis of past due loans | ||
Nonaccrual | 938 | 1,573 |
Total Loans | 298,686 | 309,164 |
Recorded Investment 90 days or Greater Past Due and Accruing | 691 | |
Multifamily | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 6,891 | 6,900 |
Multifamily | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 691 | 1,046 |
Multifamily | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 1,046 | |
Multifamily | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 691 | |
Multifamily | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 297,995 | 308,118 |
HELOC | ||
Aged analysis of past due loans | ||
Nonaccrual | 1,116 | 862 |
Total Loans | 110,688 | 115,664 |
Recorded Investment 90 days or Greater Past Due and Accruing | 23 | |
HELOC | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 108 | 108 |
HELOC | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 766 | 434 |
HELOC | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 354 | 193 |
HELOC | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 93 | 23 |
HELOC | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 319 | 218 |
HELOC | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 109,922 | 115,230 |
HELOC - Purchased | ||
Aged analysis of past due loans | ||
Nonaccrual | 173 | 180 |
Total Loans | 9,553 | 10,626 |
HELOC - Purchased | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 173 | 180 |
HELOC - Purchased | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 173 | 180 |
HELOC - Purchased | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 9,380 | 10,446 |
Other | ||
Aged analysis of past due loans | ||
Nonaccrual | 3 | 3 |
Total Loans | 23,685 | 24,437 |
Other | Financial Asset, Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | 68 | 119 |
Other | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 66 | 50 |
Other | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Current | 46 | |
Other | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Current | 2 | 23 |
Other | Financial Asset, Not Past Due [Member] | ||
Aged analysis of past due loans | ||
Current | $ 23,617 | $ 24,318 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non accrual including PCI Loans | $ 35,973,000 | $ 41,531,000 |
Nonaccrual with no ACL | 18,785,000 | 37,145,000 |
Interest on nonaccrual loans | 17,000 | |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 9,029,000 | 11,894,000 |
Nonaccrual with no ACL | 1,496,000 | 9,217,000 |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 2,641,000 | 3,754,000 |
Nonaccrual with no ACL | 464,000 | 2,943,000 |
Commercial real estate - Investor | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 6,335,000 | 5,694,000 |
Nonaccrual with no ACL | 2,858,000 | 5,694,000 |
Commercial real estate - Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 9,871,000 | 11,637,000 |
Nonaccrual with no ACL | 6,791,000 | 11,205,000 |
Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 155,000 | 160,000 |
Nonaccrual with no ACL | 160,000 | |
Residential real estate - Investor | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,391,000 | 876,000 |
Nonaccrual with no ACL | 881,000 | 876,000 |
Residential real estate - Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 4,321,000 | 4,898,000 |
Nonaccrual with no ACL | 4,065,000 | 4,622,000 |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 938,000 | 1,573,000 |
Nonaccrual with no ACL | 938,000 | 1,573,000 |
HELOC | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,116,000 | 862,000 |
Nonaccrual with no ACL | 1,116,000 | 672,000 |
HELOC - Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 173,000 | 180,000 |
Nonaccrual with no ACL | 173,000 | 180,000 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 3,000 | 3,000 |
Nonaccrual with no ACL | $ 3,000 | $ 3,000 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loans by risk rating | ||
2022 / 2021 | $ 296,418,000 | |
2021 / 2020 | 996,750,000 | $ 1,117,231,000 |
2020 / 2019 | 567,917,000 | 617,495,000 |
2019 / 2018 | 384,818,000 | 438,126,000 |
2018 / 2017 | 226,631,000 | 273,820,000 |
2017 / 2016 | 183,708,000 | |
Prior | 360,106,000 | 235,366,000 |
Revolving Loans | 569,730,000 | 556,172,000 |
Revolving Loans Converted To Term Loans | 30,000 | |
Total Loans | 3,402,370,000 | 3,421,948,000 |
Total Loans | 3,110,000 | |
Minimum | ||
Loans by risk rating | ||
Loan commitment for inclusion in credit quality analysis | 50,000 | |
Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 295,042,000 | 1,079,972,000 |
2021 / 2020 | 959,128,000 | 607,575,000 |
2020 / 2019 | 544,727,000 | 392,999,000 |
2019 / 2018 | 292,798,000 | 267,763,000 |
2018 / 2017 | 223,031,000 | 177,970,000 |
Prior | 346,059,000 | 225,968,000 |
Revolving Loans | 561,269,000 | 546,694,000 |
Revolving Loans Converted To Term Loans | 30,000 | |
Total Loans | 3,222,054,000 | 3,298,971,000 |
Special Mention [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 162,000 | 16,169,000 |
2021 / 2020 | 17,378,000 | 2,222,000 |
2020 / 2019 | 18,858,000 | 26,029,000 |
2019 / 2018 | 72,784,000 | |
Prior | 1,283,000 | |
Revolving Loans | 3,243,000 | 3,816,000 |
Total Loans | 113,708,000 | 48,236,000 |
Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 1,214,000 | 21,090,000 |
2021 / 2020 | 20,244,000 | 7,698,000 |
2020 / 2019 | 4,332,000 | 19,098,000 |
2019 / 2018 | 19,236,000 | 6,057,000 |
2018 / 2017 | 3,600,000 | 5,738,000 |
Prior | 12,764,000 | 9,398,000 |
Revolving Loans | 5,218,000 | 5,662,000 |
Total Loans | 66,608,000 | 74,741,000 |
Commercial | ||
Loans by risk rating | ||
2022 / 2021 | 40,106,000 | 201,800,000 |
2021 / 2020 | 122,471,000 | 54,770,000 |
2020 / 2019 | 46,414,000 | 53,429,000 |
2019 / 2018 | 36,582,000 | 28,503,000 |
2018 / 2017 | 15,073,000 | 5,176,000 |
Prior | 8,977,000 | 11,020,000 |
Revolving Loans | 425,922,000 | 416,746,000 |
Revolving Loans Converted To Term Loans | 30,000 | |
Total Loans | 695,545,000 | 771,474,000 |
Commercial | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 39,944,000 | 192,258,000 |
2021 / 2020 | 112,254,000 | 50,638,000 |
2020 / 2019 | 42,384,000 | 38,614,000 |
2019 / 2018 | 22,145,000 | 28,177,000 |
2018 / 2017 | 15,024,000 | 5,176,000 |
Prior | 8,914,000 | 10,945,000 |
Revolving Loans | 420,642,000 | 408,394,000 |
Revolving Loans Converted To Term Loans | 30,000 | |
Total Loans | 661,307,000 | 734,232,000 |
Commercial | Special Mention [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 162,000 | 44,000 |
2021 / 2020 | 398,000 | 84,000 |
2020 / 2019 | 653,000 | 694,000 |
2019 / 2018 | 623,000 | |
Revolving Loans | 3,135,000 | 3,708,000 |
Total Loans | 4,971,000 | 4,530,000 |
Commercial | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 9,498,000 | |
2021 / 2020 | 9,819,000 | 4,048,000 |
2020 / 2019 | 3,377,000 | 14,121,000 |
2019 / 2018 | 13,814,000 | 326,000 |
2018 / 2017 | 49,000 | |
Prior | 63,000 | 75,000 |
Revolving Loans | 2,145,000 | 4,644,000 |
Total Loans | 29,267,000 | 32,712,000 |
Real estate - residential | ||
Loans by risk rating | ||
Mortgage loans in process of foreclosure | 623,000 | 488,000 |
Leases | ||
Loans by risk rating | ||
2022 / 2021 | 49,340,000 | 83,402,000 |
2021 / 2020 | 79,901,000 | 44,129,000 |
2020 / 2019 | 39,973,000 | 35,093,000 |
2019 / 2018 | 30,796,000 | 9,573,000 |
2018 / 2017 | 8,258,000 | 1,170,000 |
Prior | 2,864,000 | 2,664,000 |
Total Loans | 211,132,000 | 176,031,000 |
Leases | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 49,340,000 | 83,402,000 |
2021 / 2020 | 79,901,000 | 44,129,000 |
2020 / 2019 | 39,973,000 | 32,259,000 |
2019 / 2018 | 28,478,000 | 8,950,000 |
2018 / 2017 | 7,891,000 | 1,170,000 |
Prior | 2,605,000 | 2,367,000 |
Total Loans | 208,188,000 | 172,277,000 |
Leases | Special Mention [Member] | ||
Loans by risk rating | ||
2019 / 2018 | 303,000 | |
Total Loans | 303,000 | |
Leases | Substandard [Member] | ||
Loans by risk rating | ||
2020 / 2019 | 2,834,000 | |
2019 / 2018 | 2,015,000 | 623,000 |
2018 / 2017 | 367,000 | |
Prior | 259,000 | 297,000 |
Total Loans | 2,641,000 | 3,754,000 |
Commercial real estate - Investor | ||
Loans by risk rating | ||
2022 / 2021 | 110,946,000 | 332,951,000 |
2021 / 2020 | 312,359,000 | 236,342,000 |
2020 / 2019 | 223,652,000 | 158,512,000 |
2019 / 2018 | 138,376,000 | 85,230,000 |
2018 / 2017 | 61,532,000 | 68,422,000 |
Prior | 97,388,000 | 57,330,000 |
Revolving Loans | 21,514,000 | 18,602,000 |
Total Loans | 965,767,000 | 957,389,000 |
Commercial real estate - Investor | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 110,946,000 | 315,247,000 |
2021 / 2020 | 309,370,000 | 233,964,000 |
2020 / 2019 | 210,682,000 | 147,511,000 |
2019 / 2018 | 86,228,000 | 85,049,000 |
2018 / 2017 | 61,532,000 | 64,810,000 |
Prior | 92,627,000 | 55,523,000 |
Revolving Loans | 19,558,000 | 18,602,000 |
Total Loans | 890,943,000 | 920,706,000 |
Commercial real estate - Investor | Special Mention [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 15,466,000 | |
2021 / 2020 | 106,000 | |
2020 / 2019 | 12,970,000 | 10,550,000 |
2019 / 2018 | 51,656,000 | |
Prior | 1,283,000 | |
Total Loans | 66,015,000 | 26,016,000 |
Commercial real estate - Investor | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 2,238,000 | |
2021 / 2020 | 2,883,000 | 2,378,000 |
2020 / 2019 | 451,000 | |
2019 / 2018 | 492,000 | 181,000 |
2018 / 2017 | 3,612,000 | |
Prior | 3,478,000 | 1,807,000 |
Revolving Loans | 1,956,000 | |
Total Loans | 8,809,000 | 10,667,000 |
Commercial real estate - Owner occupied | ||
Loans by risk rating | ||
2022 / 2021 | 58,243,000 | 228,642,000 |
2021 / 2020 | 221,085,000 | 97,549,000 |
2020 / 2019 | 120,303,000 | 66,150,000 |
2019 / 2018 | 79,502,000 | 60,915,000 |
2018 / 2017 | 55,681,000 | 55,487,000 |
Prior | 119,281,000 | 63,119,000 |
Revolving Loans | 1,697,000 | 2,522,000 |
Total Loans | 655,792,000 | 574,384,000 |
Commercial real estate - Owner occupied | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 58,243,000 | 220,324,000 |
2021 / 2020 | 198,978,000 | 96,607,000 |
2020 / 2019 | 119,597,000 | 61,511,000 |
2019 / 2018 | 74,853,000 | 60,915,000 |
2018 / 2017 | 55,681,000 | 54,236,000 |
Prior | 115,207,000 | 59,887,000 |
Revolving Loans | 1,697,000 | 2,522,000 |
Total Loans | 624,256,000 | 556,002,000 |
Commercial real estate - Owner occupied | Special Mention [Member] | ||
Loans by risk rating | ||
2021 / 2020 | 15,314,000 | |
2020 / 2019 | 2,953,000 | |
2019 / 2018 | 2,963,000 | |
Total Loans | 18,277,000 | 2,953,000 |
Commercial real estate - Owner occupied | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 8,318,000 | |
2021 / 2020 | 6,793,000 | 942,000 |
2020 / 2019 | 706,000 | 1,686,000 |
2019 / 2018 | 1,686,000 | |
2018 / 2017 | 1,251,000 | |
Prior | 4,074,000 | 3,232,000 |
Total Loans | 13,259,000 | 15,429,000 |
Construction | ||
Loans by risk rating | ||
2022 / 2021 | 8,518,000 | 88,780,000 |
2021 / 2020 | 75,318,000 | 67,767,000 |
2020 / 2019 | 51,624,000 | 42,101,000 |
2019 / 2018 | 22,312,000 | 4,671,000 |
2018 / 2017 | 4,763,000 | 477,000 |
Prior | 1,561,000 | 1,193,000 |
Revolving Loans | 1,462,000 | 1,143,000 |
Total Loans | 165,558,000 | 206,132,000 |
Construction | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 7,304,000 | 88,620,000 |
2021 / 2020 | 74,396,000 | 65,629,000 |
2020 / 2019 | 46,389,000 | 37,169,000 |
2019 / 2018 | 11,964,000 | 2,727,000 |
2018 / 2017 | 2,792,000 | 477,000 |
Prior | 1,561,000 | 1,193,000 |
Revolving Loans | 1,462,000 | 1,143,000 |
Total Loans | 145,868,000 | 196,958,000 |
Construction | Special Mention [Member] | ||
Loans by risk rating | ||
2021 / 2020 | 922,000 | 2,138,000 |
2020 / 2019 | 5,235,000 | 4,932,000 |
2019 / 2018 | 10,348,000 | |
Total Loans | 16,505,000 | 7,070,000 |
Construction | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 1,214,000 | 160,000 |
2019 / 2018 | 1,944,000 | |
2018 / 2017 | 1,971,000 | |
Total Loans | 3,185,000 | 2,104,000 |
Residential real estate - Investor | ||
Loans by risk rating | ||
2022 / 2021 | 9,367,000 | 13,492,000 |
2021 / 2020 | 10,587,000 | 9,902,000 |
2020 / 2019 | 7,951,000 | 13,084,000 |
2019 / 2018 | 11,840,000 | 6,589,000 |
2018 / 2017 | 6,887,000 | 7,444,000 |
Prior | 15,244,000 | 11,020,000 |
Revolving Loans | 970,000 | 1,868,000 |
Total Loans | 62,846,000 | 63,399,000 |
Residential real estate - Investor | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 9,367,000 | 13,371,000 |
2021 / 2020 | 10,468,000 | 9,758,000 |
2020 / 2019 | 7,951,000 | 13,084,000 |
2019 / 2018 | 11,330,000 | 6,392,000 |
2018 / 2017 | 6,734,000 | 7,059,000 |
Prior | 14,482,000 | 10,602,000 |
Revolving Loans | 970,000 | 1,868,000 |
Total Loans | 61,302,000 | 62,134,000 |
Residential real estate - Investor | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 121,000 | |
2021 / 2020 | 119,000 | 144,000 |
2019 / 2018 | 510,000 | 197,000 |
2018 / 2017 | 153,000 | 385,000 |
Prior | 762,000 | 418,000 |
Total Loans | 1,544,000 | 1,265,000 |
Residential real estate - Owner occupied | ||
Loans by risk rating | ||
2022 / 2021 | 2,425,000 | 48,990,000 |
2021 / 2020 | 48,156,000 | 32,095,000 |
2020 / 2019 | 30,867,000 | 20,996,000 |
2019 / 2018 | 18,601,000 | 14,523,000 |
2018 / 2017 | 13,270,000 | 30,738,000 |
Prior | 87,817,000 | 63,854,000 |
Revolving Loans | 1,982,000 | 2,052,000 |
Total Loans | 203,118,000 | 213,248,000 |
Residential real estate - Owner occupied | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 2,425,000 | 48,009,000 |
2021 / 2020 | 47,217,000 | 31,912,000 |
2020 / 2019 | 30,623,000 | 20,990,000 |
2019 / 2018 | 17,882,000 | 13,304,000 |
2018 / 2017 | 12,967,000 | 30,562,000 |
Prior | 84,522,000 | 60,661,000 |
Revolving Loans | 1,982,000 | 2,052,000 |
Total Loans | 197,618,000 | 207,490,000 |
Residential real estate - Owner occupied | Special Mention [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 659,000 | |
2021 / 2020 | 638,000 | |
Total Loans | 638,000 | 659,000 |
Residential real estate - Owner occupied | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 322,000 | |
2021 / 2020 | 301,000 | 183,000 |
2020 / 2019 | 244,000 | 6,000 |
2019 / 2018 | 719,000 | 1,219,000 |
2018 / 2017 | 303,000 | 176,000 |
Prior | 3,295,000 | 3,193,000 |
Total Loans | 4,862,000 | 5,099,000 |
Multifamily | ||
Loans by risk rating | ||
2022 / 2021 | 16,859,000 | 109,608,000 |
2021 / 2020 | 115,852,000 | 71,748,000 |
2020 / 2019 | 43,970,000 | 46,193,000 |
2019 / 2018 | 44,706,000 | 62,733,000 |
2018 / 2017 | 60,287,000 | 11,701,000 |
Prior | 16,953,000 | 7,117,000 |
Revolving Loans | 59,000 | 64,000 |
Total Loans | 298,686,000 | 309,164,000 |
Multifamily | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 16,859,000 | 109,175,000 |
2021 / 2020 | 115,523,000 | 71,748,000 |
2020 / 2019 | 43,970,000 | 39,293,000 |
2019 / 2018 | 37,815,000 | 61,190,000 |
2018 / 2017 | 59,557,000 | 11,399,000 |
Prior | 16,643,000 | 7,117,000 |
Revolving Loans | 59,000 | 64,000 |
Total Loans | 290,426,000 | 299,986,000 |
Multifamily | Special Mention [Member] | ||
Loans by risk rating | ||
2020 / 2019 | 6,900,000 | |
2019 / 2018 | 6,891,000 | |
Total Loans | 6,891,000 | 6,900,000 |
Multifamily | Substandard [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 433,000 | |
2021 / 2020 | 329,000 | |
2019 / 2018 | 1,543,000 | |
2018 / 2017 | 730,000 | 302,000 |
Prior | 310,000 | |
Total Loans | 1,369,000 | 2,278,000 |
HELOC | ||
Loans by risk rating | ||
2022 / 2021 | 117,000 | 907,000 |
2021 / 2020 | 1,878,000 | 2,091,000 |
2020 / 2019 | 2,054,000 | 2,131,000 |
2019 / 2018 | 1,972,000 | 822,000 |
2018 / 2017 | 763,000 | 1,679,000 |
Prior | 1,026,000 | 2,065,000 |
Revolving Loans | 102,878,000 | 105,969,000 |
Total Loans | 110,688,000 | 115,664,000 |
HELOC | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 117,000 | 907,000 |
2021 / 2020 | 1,878,000 | 2,091,000 |
2020 / 2019 | 2,052,000 | 2,131,000 |
2019 / 2018 | 1,972,000 | 805,000 |
2018 / 2017 | 736,000 | 1,667,000 |
Prior | 676,000 | 1,869,000 |
Revolving Loans | 101,653,000 | 104,843,000 |
Total Loans | 109,084,000 | 114,313,000 |
HELOC | Special Mention [Member] | ||
Loans by risk rating | ||
Revolving Loans | 108,000 | 108,000 |
Total Loans | 108,000 | 108,000 |
HELOC | Substandard [Member] | ||
Loans by risk rating | ||
2020 / 2019 | 2,000 | |
2019 / 2018 | 17,000 | |
2018 / 2017 | 27,000 | 12,000 |
Prior | 350,000 | 196,000 |
Revolving Loans | 1,117,000 | 1,018,000 |
Total Loans | 1,496,000 | 1,243,000 |
HELOC - Purchased | ||
Loans by risk rating | ||
Prior | 2,672,000 | 10,626,000 |
Revolving Loans | 6,881,000 | |
Total Loans | 9,553,000 | 10,626,000 |
HELOC - Purchased | Pass [Member] | ||
Loans by risk rating | ||
Prior | 2,499,000 | 10,446,000 |
Revolving Loans | 6,881,000 | |
Total Loans | 9,380,000 | 10,446,000 |
HELOC - Purchased | Substandard [Member] | ||
Loans by risk rating | ||
Prior | 173,000 | 180,000 |
Total Loans | 173,000 | 180,000 |
Other | ||
Loans by risk rating | ||
2022 / 2021 | 497,000 | 8,659,000 |
2021 / 2020 | 9,143,000 | 1,102,000 |
2020 / 2019 | 1,109,000 | 437,000 |
2019 / 2018 | 131,000 | 261,000 |
2018 / 2017 | 117,000 | 1,414,000 |
Prior | 6,323,000 | 5,358,000 |
Revolving Loans | 6,365,000 | 7,206,000 |
Total Loans | 23,685,000 | 24,437,000 |
Other | Pass [Member] | ||
Loans by risk rating | ||
2022 / 2021 | 497,000 | 8,659,000 |
2021 / 2020 | 9,143,000 | 1,099,000 |
2020 / 2019 | 1,106,000 | 437,000 |
2019 / 2018 | 131,000 | 254,000 |
2018 / 2017 | 117,000 | 1,414,000 |
Prior | 6,323,000 | 5,358,000 |
Revolving Loans | 6,365,000 | 7,206,000 |
Total Loans | 23,682,000 | 24,427,000 |
Other | Substandard [Member] | ||
Loans by risk rating | ||
2021 / 2020 | 3,000 | |
2020 / 2019 | 3,000 | |
2019 / 2018 | 7,000 | |
Total Loans | $ 3,000 | $ 10,000 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans - TDR (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loans and Allowance for Credit Losses on Loans | ||
Loan modification activity | $ 1,100,000 | $ 0 |
TDR's defaulted | ||
Pre-modification outstanding recorded investment during the period | $ 0 | $ 0 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ||
Balance at beginning of period | $ 2,356 | $ 2,474 |
Property additions, net of acquisition adjustments | 87 | |
Less: Proceeds from property disposals, net of participation purchase and of gains/losses | 69 | 305 |
Less: Period valuation write-down | 6 | |
Balance at end of period | 2,374 | 2,163 |
Activity in the valuation allowance | ||
Balance at beginning of period | 1,179 | 1,643 |
Provision for unrealized losses | 6 | |
Provision for unrealized losses | 6 | |
Balance at end of period | 1,179 | 1,649 |
Expenses related to foreclosed assets, net of lease revenue | ||
Gain on sales, net | (49) | (20) |
Provision for unrealized losses | 6 | |
Operating expenses | 37 | 54 |
Less: Lease revenue | 4 | |
Net OREO (gain) expense | $ (12) | $ 36 |
Deposits - Classifications of D
Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
Noninterest bearing demand | $ 1,461,712 | $ 1,428,055 |
Savings | 1,884,352 | 1,826,346 |
NOW accounts | 622,606 | 605,056 |
Money market accounts | 1,098,499 | 1,102,965 |
Certificates of deposit of less than $100,000 | 277,135 | 287,238 |
Certificates of deposit of $100,000 through $250,000 | 144,663 | 147,854 |
Certificates of deposit of more than $250,000 | 55,758 | 68,718 |
Total deposits | $ 5,544,725 | $ 5,466,232 |
Borrowings - Summary (Details)
Borrowings - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Borrowings | ||
Total borrowings | $ 181,025 | $ 198,876 |
Securities sold under repurchase agreements | ||
Borrowings | ||
Total borrowings | 33,521 | 50,337 |
Junior subordinated debentures | ||
Borrowings | ||
Total borrowings | 25,773 | 25,773 |
Subordinated debentures | ||
Borrowings | ||
Total borrowings | 59,233 | 59,212 |
Senior notes | ||
Borrowings | ||
Total borrowings | 44,506 | 44,480 |
Notes payable and other borrowings | ||
Borrowings | ||
Total borrowings | $ 17,992 | $ 19,074 |
Borrowings - Additional informa
Borrowings - Additional information (Details) | Apr. 06, 2021USD ($) | Feb. 24, 2020USD ($) | Mar. 31, 2022USD ($)item | Dec. 31, 2016 | Dec. 31, 2021USD ($) | Apr. 20, 2018USD ($) |
Borrowings | ||||||
Threshold percentage of stockholders' equity | 10.00% | |||||
Borrowings at FHLBC as percentage of total assets | 35.00% | |||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60.00% | |||||
FHLBC stock | $ 7,100,000 | $ 7,100,000 | ||||
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock | 21,974,000 | 13,257,000 | ||||
Proceeds from term note | $ 30,000,000 | |||||
Senior notes | 44,506,000 | 44,480,000 | ||||
Basis points added to reference rate (as a percent) | 175.00% | |||||
Total borrowings | 181,025,000 | 198,876,000 | ||||
GCFC/ABC Bank | ||||||
Borrowings | ||||||
FHLBC advance amount | $ 6,000,000 | |||||
Debt assumed | $ 23,400,000 | |||||
GCFC/ABC Bank | Maximum | ||||||
Borrowings | ||||||
Interest rate (as a percent) | 2.83% | |||||
Three Months Secured Overnight Financing Rate | ||||||
Borrowings | ||||||
Basis points added to reference rate (as a percent) | 273.00% | |||||
Securities sold under repurchase agreements | ||||||
Borrowings | ||||||
Carrying amount of securities secured | $ 33,500,000 | 50,300,000 | ||||
Fair value of the pledged collateral | $ 107,300,000 | 113,000,000 | ||||
Number of customers having secured balances exceeding specified percentage of stockholders equity | item | 0 | |||||
Total borrowings | $ 33,521,000 | 50,337,000 | ||||
Federal Home Loan Bank Advances | ||||||
Borrowings | ||||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60.00% | |||||
FHLBC advance amount | $ 0 | 0 | ||||
FHLBC stock | 7,100,000 | |||||
Principal balance of loans collateralized | 545,000,000 | |||||
Combined collateral value | 396,900,000 | |||||
Amount available for additional borrowings | 315,900,000 | |||||
Subordinated debentures | ||||||
Borrowings | ||||||
Total borrowings | 59,233,000 | 59,212,000 | ||||
Notes payable and other borrowings | ||||||
Borrowings | ||||||
Total borrowings | 17,992,000 | 19,074,000 | ||||
Junior subordinated debentures | ||||||
Borrowings | ||||||
Total borrowings | 25,773,000 | 25,773,000 | ||||
Senior notes | ||||||
Borrowings | ||||||
Interest rate (as a percent) | 5.75% | |||||
Senior notes | 44,500,000 | 44,500,000 | ||||
Debt Instrument, Term | 10 years | |||||
Interest rate term | 5 years | |||||
Debt issuance costs | $ 494,000 | 520,000 | ||||
Amortization period for deferred financing costs | 10 years | |||||
Total borrowings | $ 44,506,000 | $ 44,480,000 | ||||
Senior notes | Debt Instrument, Variable Rate Base LIBOR [Member] | ||||||
Borrowings | ||||||
Basis points added to reference rate (as a percent) | 385.00% | |||||
Term Debt | ||||||
Borrowings | ||||||
Proceeds from term note | $ 20,000,000 | $ 12,000,000 | ||||
Debt term | 3 years | |||||
Subordinated Notes Due 2031 | ||||||
Borrowings | ||||||
Interest rate (as a percent) | 3.50% | |||||
Face amount | $ 60,000,000 |
Junior Subordinated Debentures
Junior Subordinated Debentures - Issuance (Details) - USD ($) $ in Thousands | Feb. 24, 2020 | Apr. 30, 2007 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2021 |
Junior subordinated debentures | |||||||
Junior subordinated debentures | $ 25,773 | $ 25,773 | |||||
Proceeds from term note | $ 30,000 | ||||||
Old Second Capital Trust II [Member] | |||||||
Junior subordinated debentures | |||||||
Proceeds from sale of cumulative trust preferred securities | $ 25,000 | ||||||
Maturity Period | 30 years | ||||||
Cash distribution fixed rate of trust preferred securities (as a percent) | 6.77% | ||||||
Basis points added to cash distribution floating rate base (as a percent) | 1.50% | ||||||
Cash distribution, floating rate base | three-month LIBOR | ||||||
Amortization period | 30 years | ||||||
Old Second Capital Trust II [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||
Junior subordinated debentures | |||||||
Cash distribution rate of trust preferred securities (as a percent) | 4.41% | 4.41% | |||||
Term Debt | |||||||
Junior subordinated debentures | |||||||
Proceeds from term note | $ 20,000 | $ 12,000 | |||||
Junior subordinated debentures | |||||||
Junior subordinated debentures | |||||||
Junior Subordinated Debentures issuance cost | 1 | $ 1 | |||||
Junior subordinated debentures | Old Second Capital Trust II [Member] | |||||||
Junior subordinated debentures | |||||||
Junior subordinated debentures | $ 25,800 |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
May 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | May 31, 2019 | |
Equity Compensation Plans | ||||
Total compensation cost | $ 795 | $ 125 | ||
Vesting Percentage , Fully Vest , Performance measure | 50.00% | |||
Minimum | ||||
Equity Compensation Plans | ||||
Vesting Percentage , Fully Vest , Performance measure | 50.00% | |||
Maximum | ||||
Equity Compensation Plans | ||||
Vesting Percentage , Pro rata , Performance measure | 50.00% | |||
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 | 1,144,926 | |||
Restricted Stock and Restricted Stock Units [Member] | ||||
Equity Compensation Plans | ||||
Vesting period | 3 years |
Equity Compensation Plans - Res
Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in unvested awards | ||
Nonvested at the beginning of the period (in shares) | 540,306 | |
Granted (in shares) | 251,055 | 217,964 |
Nonvested at the end of the period (in shares) | 791,361 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 12.04 | |
Granted (in dollars per share) | 14.28 | |
Nonvested at the end of the period (in dollars per share) | $ 12.75 | |
Additional information | ||
Total unrecognized compensation cost of restricted awards | $ 5.8 | |
Expected weighted-average period for recognition of unrecognized compensation | 1 year 1 month 6 days |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic earnings per share: | ||
Weighted-average common shares outstanding | 44,461,045 | 29,225,775 |
Net income | $ 12,020 | $ 11,879 |
Basic earnings per share | $ 0.27 | $ 0.41 |
Diluted earnings per share: | ||
Weighted-average common shares outstanding | 44,461,045 | 29,225,775 |
Diluted average common shares outstanding | 45,161,715 | 29,784,757 |
Net earnings available to common stockholders | $ 12,020 | $ 11,879 |
Diluted earnings per share | $ 0.27 | $ 0.40 |
Restricted Stock and Restricted Stock Units [Member] | ||
Diluted earnings per share: | ||
Dilutive effect of share-based payment awards (in shares) | 700,670 | 558,982 |
Regulatory & Capital Matters (D
Regulatory & Capital Matters (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Dec. 31, 2021 | |
Regulatory & Capital Matters | ||
Tier 1 capital leverage ratio (as a percent) | 7 | 7.81 |
Risk-based capital ratio (as a percent) | 12.85 | 12.55 |
Deferment of impact on retained earnings | $ 2.9 | |
Subsidiaries [Member] | ||
Regulatory & Capital Matters | ||
Tier 1 capital leverage ratio (as a percent) | 8.61 | 9.58 |
Risk-based capital ratio (as a percent) | 13.83 | 13.46 |
Tier One leverage ratio, basis point decrease (as a percent) | 0.97% | |
Risk-based capital ratio, basis point increase (as a percent) | 0.37% | |
Minimum | Subsidiaries [Member] | ||
Regulatory & Capital Matters | ||
Tier 1 capital leverage ratio (as a percent) | 8 | |
Risk-based capital ratio (as a percent) | 12 | |
Tier 1 capital leverage ratio, board-designated threshold | 8.00% | |
Total Capital Ratio, board-designated threshold (as a percent) | 12.00% |
Regulatory & Capital Matters -
Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 404,444 | $ 394,421 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 290,967 | $ 291,855 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 9.73% | 9.46% |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 7.00% | 7.00% |
Total capital to risk weighted assets, Amount | ||
Actual at period end | $ 533,984 | $ 522,932 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 436,329 | $ 437,513 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 12.85 | 12.55 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 10.50 | 10.50 |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | $ 429,444 | $ 419,421 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 353,366 | $ 354,382 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 10.33 | 10.06 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 8.50 | 8.50 |
Tier 1 capital to average assets, Amount | ||
Actual | $ 429,444 | $ 419,421 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 245,397 | $ 214,812 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 7 | 7.81 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 4 | 4 |
Subsidiaries [Member] | ||
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 528,655 | $ 514,992 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 290,470 | 290,487 |
Minimum Required to Be Well Capitalized | $ 269,722 | $ 269,738 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 12.74% | 12.41% |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 7.00% | 7.00% |
Minimum Required to Be Well Capitalized (as a percent) | 6.50% | 6.50% |
Total capital to risk weighted assets, Amount | ||
Actual at period end | $ 573,949 | $ 558,503 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 435,753 | 435,682 |
Minimum Required to Be Well Capitalized | $ 415,003 | $ 414,935 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 13.83 | 13.46 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 10.50 | 10.50 |
Minimum Required to Be Well Capitalized (as a percent) | 10 | 10 |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | $ 528,655 | $ 514,992 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 352,713 | 352,734 |
Minimum Required to Be Well Capitalized | $ 331,965 | $ 331,985 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 12.74 | 12.41 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 8.50 | 8.50 |
Minimum Required to Be Well Capitalized (as a percent) | 8 | 8 |
Tier 1 capital to average assets, Amount | ||
Actual | $ 528,655 | $ 514,992 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 245,600 | 215,028 |
Minimum Required to Be Well Capitalized | $ 307,001 | $ 268,785 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 8.61 | 9.58 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 4 | 4 |
Minimum Required to Be Well Capitalized (as a percent) | 5 | 5 |
Regulatory & Capital Matters _2
Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Dividend Restrictions and Deferrals | |
Number of previous years retained profit considered for dividend payment | 2 years |
Minimum capital requirements, minimum percentage required | 2.50% |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Assets: | |||
Securities available-for-sale | $ 1,816,450 | $ 1,692,488 | |
Mortgage servicing rights | 10,376 | 7,097 | |
U.S. Treasury | |||
Assets: | |||
Securities available-for-sale | 220,563 | 202,339 | |
U.S. government agencies | |||
Assets: | |||
Securities available-for-sale | 59,036 | 61,888 | |
States and political subdivisions | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Purchases | 1,076 | $ 58 | |
Assets: | |||
Securities available-for-sale | 236,408 | 256,465 | |
Corporate bonds | |||
Assets: | |||
Securities available-for-sale | 9,683 | 9,887 | |
Collateralized mortgage obligations | |||
Assets: | |||
Securities available-for-sale | 696,513 | 672,967 | |
Asset-backed Securities | |||
Assets: | |||
Securities available-for-sale | 274,941 | 236,877 | |
Collateralized loan obligations. | |||
Assets: | |||
Securities available-for-sale | 166,158 | 79,763 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Securities available-for-sale | 220,563 | 202,339 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Securities available-for-sale | 1,582,054 | 1,476,057 | |
Loans held-for-sale | 8,075 | 4,737 | |
Other assets | 952 | 3,494 | |
Liabilities: | |||
Other liabilities | 3,657 | 6,788 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Securities available-for-sale | 13,833 | 14,092 | |
Mortgage servicing rights | 10,376 | 7,097 | |
Fair Value, Inputs, Level 3 [Member] | States and political subdivisions | |||
Assets: | |||
Securities available-for-sale | 13,800 | $ 4,600 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Loans held-for-sale | 8,075 | 4,737 | |
Mortgage servicing rights | 10,376 | 7,097 | |
Total financial assets | 1,836,783 | 1,708,324 | |
Liabilities: | |||
Total | 3,663 | 6,809 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Assets: | |||
Other assets | 952 | 3,494 | |
Liabilities: | |||
Other liabilities | 3,663 | 6,809 | |
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member] | |||
Assets: | |||
Other assets | 930 | 508 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury | |||
Assets: | |||
Securities available-for-sale | 220,563 | 202,339 | |
Fair Value, Measurements, Recurring [Member] | U.S. government agencies | |||
Assets: | |||
Securities available-for-sale | 59,036 | 61,888 | |
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities, Issued by US Government Agencies | |||
Assets: | |||
Securities available-for-sale | 153,148 | 172,302 | |
Fair Value, Measurements, Recurring [Member] | States and political subdivisions | |||
Assets: | |||
Securities available-for-sale | 236,408 | 256,465 | |
Fair Value, Measurements, Recurring [Member] | Corporate bonds | |||
Assets: | |||
Securities available-for-sale | 9,683 | 9,887 | |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations | |||
Assets: | |||
Securities available-for-sale | 696,513 | 672,967 | |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities | |||
Assets: | |||
Securities available-for-sale | 274,941 | 236,877 | |
Fair Value, Measurements, Recurring [Member] | Collateralized loan obligations. | |||
Assets: | |||
Securities available-for-sale | 166,158 | 79,763 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Total financial assets | 220,563 | 202,339 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury | |||
Assets: | |||
Securities available-for-sale | 220,563 | 202,339 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Loans held-for-sale | 8,075 | 4,737 | |
Total financial assets | 1,592,011 | 1,484,796 | |
Liabilities: | |||
Total | 3,663 | 6,809 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Assets: | |||
Other assets | 952 | 3,494 | |
Liabilities: | |||
Other liabilities | 3,663 | 6,809 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | |||
Assets: | |||
Other assets | 930 | 508 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. government agencies | |||
Assets: | |||
Securities available-for-sale | 59,036 | 61,888 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Issued by US Government Agencies | |||
Assets: | |||
Securities available-for-sale | 153,148 | 172,302 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and political subdivisions | |||
Assets: | |||
Securities available-for-sale | 222,575 | 242,373 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds | |||
Assets: | |||
Securities available-for-sale | 9,683 | 9,887 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations | |||
Assets: | |||
Securities available-for-sale | 696,513 | 672,967 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities | |||
Assets: | |||
Securities available-for-sale | 274,941 | 236,877 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations. | |||
Assets: | |||
Securities available-for-sale | 166,158 | 79,763 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Mortgage servicing rights | 10,376 | 7,097 | |
Total financial assets | 24,209 | 21,189 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | States and political subdivisions | |||
Assets: | |||
Securities available-for-sale | $ 13,833 | $ 14,092 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
States and political subdivisions | ||
Changes in Level 3 | ||
Beginning balance | $ 14,092 | $ 4,319 |
Total gains or losses | ||
Included in earnings (or changes in net assets) | (3) | |
Included in other comprehensive income | (938) | 299 |
Purchases, issuances, sales, and settlements | ||
Purchases | 1,076 | 58 |
Settlements | (364) | (32) |
Ending balance | 13,833 | 4,641 |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | (33) | |
Mortgage Servicing Rights [Member] | ||
Changes in Level 3 | ||
Beginning balance | 7,097 | 4,224 |
Total gains or losses | ||
Included in earnings (or changes in net assets) | 1,485 | |
Purchases, issuances, sales, and settlements | ||
Issuances | 301 | 552 |
Settlements | (250) | (372) |
Ending balance | 10,376 | $ 5,889 |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | $ 3,228 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) |
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | $ 10,376 | $ 7,097 | |
Securities available-for-sale, at fair value | 1,816,450 | 1,692,488 | |
Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | 10,376 | 7,097 | |
Securities available-for-sale, at fair value | 13,833 | 14,092 | |
States and political subdivisions | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 236,408 | 256,465 | |
States and political subdivisions | Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 13,800 | $ 4,600 | |
Collateralized mortgage obligations | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 696,513 | 672,967 | |
Fair Value, Measurements, Recurring [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | 10,376 | 7,097 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | 10,376 | 7,097 | |
Fair Value, Measurements, Recurring [Member] | States and political subdivisions | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 236,408 | 256,465 | |
Fair Value, Measurements, Recurring [Member] | States and political subdivisions | Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 13,833 | 14,092 | |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | $ 696,513 | $ 672,967 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 9 | 11 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 11 | 15 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 9 | 11 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 5.7 | 0 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 28.9 | 36.6 | |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 6.2 | 11.9 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Assets and liabilities measured at fair value | ||||
Valuation allowance | $ 11,600,000 | |||
Carrying value of other real estate owned | 2,374,000 | $ 2,356,000 | $ 2,163,000 | $ 2,474,000 |
OREO Valuation allowance | 1,179,000 | 1,179,000 | $ 1,649,000 | $ 1,643,000 |
Impaired Loans [Member] | ||||
Assets and liabilities measured at fair value | ||||
Valuation allowance | 18,500,000 | |||
Impaired Loans [Member] | Reported Value Measurement [Member] | ||||
Assets and liabilities measured at fair value | ||||
Increase (decrease) of specific allocations within the provision for loan losses | 2,700,000 | |||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | 24,364,000 | 15,494,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | 21,990,000 | 13,138,000 | ||
Valuation allowance | 11,600,000 | 5,400,000 | ||
Increase (decrease) of specific allocations within the provision for loan losses | 6,200,000 | |||
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Reported Value Measurement [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | 33,600,000 | |||
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | 2,374,000 | 2,356,000 | ||
Carrying value of other real estate owned | 2,400,000 | 2,400,000 | ||
Outstanding balance | 3,700,000 | 3,700,000 | ||
OREO Valuation allowance | 1,200,000 | 1,200,000 | ||
OREO participations | 131,000 | 131,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | 24,364,000 | 15,494,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | 21,990,000 | 13,138,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||||
Assets and liabilities measured at fair value | ||||
Total | $ 2,374,000 | $ 2,356,000 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financial assets: | |||
Cash and due from banks | $ 41,511 | $ 38,565 | |
Interest earning deposits with financial institutions | 593,166 | 713,542 | |
Securities available-for-sale | 1,816,450 | 1,692,488 | |
FHLBC and FRBC Stock | 21,974 | 13,257 | |
Bank-owned life insurance | 105,424 | 105,300 | |
Mortgage servicing rights | 10,376 | 7,097 | |
Financial liabilities: | |||
Noninterest bearing deposits | 1,461,712 | 1,428,055 | |
Junior subordinated debentures | 25,773 | 25,773 | |
Senior notes | 44,506 | 44,480 | |
States and political subdivisions | |||
Financial assets: | |||
Securities available-for-sale | 236,408 | 256,465 | |
Reported Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 41,511 | 38,565 | |
Interest earning deposits with financial institutions | 593,166 | 713,542 | |
Securities available-for-sale | 1,816,450 | 1,692,488 | |
FHLBC and FRBC Stock | 21,974 | 13,257 | |
Loans held for sale | 8,075 | 4,737 | |
Net loans | 3,358,062 | 3,377,667 | |
Mortgage servicing rights | 10,376 | 7,097 | |
Interest rate swap agreements | 952 | 3,494 | |
Interests rate lock commitments and forward contracts | 930 | 508 | |
Interest receivable on securities and loans | 14,910 | 13,431 | |
Financial liabilities: | |||
Noninterest bearing deposits | 1,461,712 | 1,428,055 | |
Interest bearing deposits | 4,083,013 | 4,038,177 | |
Securities sold under repurchase agreements | 33,521 | 50,377 | |
Junior subordinated debentures | 25,773 | 25,773 | |
Subordinated debentures | 59,233 | 59,212 | |
Senior notes | 44,506 | 44,480 | |
Note payable and other borrowings | 17,992 | 19,074 | |
Interest rate swap agreements | 3,657 | 6,788 | |
Interest payable on deposits and borrowings | 1,854 | 1,706 | |
Estimate of Fair Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 41,511 | 38,565 | |
Interest earning deposits with financial institutions | 593,166 | 713,542 | |
Securities available-for-sale | 1,692,488 | 1,692,488 | |
FHLBC and FRBC Stock | 21,974 | 13,257 | |
Loans held for sale | 8,075 | 4,737 | |
Net loans | 3,386,123 | 3,408,199 | |
Mortgage servicing rights | 10,376 | 7,097 | |
Interest rate swap agreements | 952 | 3,494 | |
Interests rate lock commitments and forward contracts | 930 | 508 | |
Interest receivable on securities and loans | 14,910 | 13,431 | |
Financial liabilities: | |||
Noninterest bearing deposits | 1,461,712 | 1,428,055 | |
Interest bearing deposits | 4,083,279 | 4,041,369 | |
Securities sold under repurchase agreements | 33,521 | 50,377 | |
Junior subordinated debentures | 23,711 | 18,557 | |
Subordinated debentures | 56,233 | 60,111 | |
Senior notes | 44,466 | 44,480 | |
Note payable and other borrowings | 18,034 | 19,411 | |
Interest rate swap agreements | 3,657 | 6,788 | |
Interest payable on deposits and borrowings | 1,854 | 1,706 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 41,511 | 38,565 | |
Interest earning deposits with financial institutions | 593,166 | 713,542 | |
Securities available-for-sale | 220,563 | 202,339 | |
Financial liabilities: | |||
Noninterest bearing deposits | 1,461,712 | 1,428,055 | |
Senior notes | 44,466 | 44,480 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets: | |||
Securities available-for-sale | 1,582,054 | 1,476,057 | |
FHLBC and FRBC Stock | 21,974 | 13,257 | |
Loans held for sale | 8,075 | 4,737 | |
Interest rate swap agreements | 952 | 3,494 | |
Interests rate lock commitments and forward contracts | 930 | 508 | |
Interest receivable on securities and loans | 14,910 | 13,431 | |
Financial liabilities: | |||
Interest bearing deposits | 4,083,279 | 4,041,369 | |
Securities sold under repurchase agreements | 33,521 | 50,377 | |
Junior subordinated debentures | 23,711 | 18,557 | |
Subordinated debentures | 56,233 | 60,111 | |
Note payable and other borrowings | 18,034 | 19,411 | |
Interest rate swap agreements | 3,657 | 6,788 | |
Interest payable on deposits and borrowings | 1,854 | 1,706 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Securities available-for-sale | 13,833 | 14,092 | |
Net loans | 3,386,123 | 3,408,199 | |
Mortgage servicing rights | 10,376 | $ 7,097 | |
Fair Value, Inputs, Level 3 [Member] | States and political subdivisions | |||
Financial assets: | |||
Securities available-for-sale | $ 13,800 | $ 4,600 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Fair Value of Derivatives (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019USD ($) | Mar. 31, 2022USD ($)item | Dec. 31, 2021USD ($)item | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Loan pool hedge | $ 50,000,000 | ||
Term of interest rate risk cash flow hedge | 5 years | ||
Amount of ineffectiveness, included in net income | $ 0 | ||
Interest Rate Products | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Notional Amount | 25,800,000 | ||
Designated as Hedging Instrument [Member] | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative liabilities designated as hedging instruments, fair value | $ 2,705,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Products | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative assets designated as hedging instruments, classified in other assets | $ 808,000 | ||
Derivative liabilities designated as hedging instruments, fair value | $ 4,102,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Products | OSBC Affiliates | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative, number of transactions | item | 2 | 2 | |
Notional Amount | $ 75,774,000 | $ 75,774,000 | |
Derivative liabilities designated as hedging instruments, classified in other liabilities | 2,705,000 | 4,102,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Cash collateral pledged with financial institutions, dollars | 18,500,000 | 17,200,000 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | OSBC Affiliates | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative assets designated as hedging instruments, classified in other assets | $ 808,000 | ||
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative assets not designated as hedging instruments, fair value | 1,882,000 | ||
Total Derivative liabilities not designated as hedging instruments, fair value | $ 958,000 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Products | Commercial Loan Customers | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative, number of transactions | item | 23 | 26 | |
Notional Amount | $ 150,712,000 | $ 165,005,000 | |
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | 952,000 | 2,686,000 | |
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities | $ 952,000 | $ 2,686,000 | |
Weighted average maturity | 5 years 10 months 24 days | 3 years 10 months 24 days | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Cash collateral pledged with financial institutions, dollars | $ 0 | $ 180,000,000,000 | |
Investment securities pledged with financial institutions, dollars | $ 0 | $ 0 | |
Number of correspondent financial institutions where investment securities are pledged | item | 1 | 1 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts. | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative, number of transactions | item | 81 | 3 | |
Notional Amount | $ 32,994,000 | $ 17,173,000 | |
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | $ 930,000 | ||
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities | $ 21,000 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts. | Commercial Loan Customers | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative, number of transactions | item | 87 | ||
Notional Amount | $ 34,414,000 | ||
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | 508,000 | ||
Not Designated as Hedging Instrument [Member] | Other Contracts | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Derivative, number of transactions | item | 3 | ||
Notional Amount | $ 17,050,000 | ||
Derivative assets designated as hedging instruments, classified in other assets | 3,194,000 | ||
Derivative liabilities designated as hedging instruments, classified in other liabilities | $ 2,707,000 | ||
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities | 6,000 | ||
Interest Income [Member] | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Amount to be reclassified as an increase to interest expense during the next twelve months | 178,000 | ||
Interest Expense [Member] | |||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |||
Amount to be reclassified as an increase to interest expense during the next twelve months | $ 162,000 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Effect of Fair Value (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||
Amount of Loss Recognized in OCI on Derivative | $ 1,900,000 | $ 705,000,000,000 |
Interest Income (Expense) | ||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | $ 16,000 | $ 12,000 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Company's contractual commitments due to letters of credit | ||
Total letters of credit | $ 35,858 | $ 33,288 |
Allowance for Credit Loss on Unfunded Commitments | 4,200 | |
Allowance for Credit Loss Unfunded Commitment, Purchase Accounting Adjustment | 1,500 | |
Decrease In Allowance for Credit Loss on unfunded Commitments | (320,000) | |
Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 692 | 840 |
Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 35,166 | 32,448 |
Commitments to Extend Credit to Borrowers [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 35,791 | 33,221 |
Commitments to Extend Credit to Borrowers [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 692 | 840 |
Commitments to Extend Credit to Borrowers [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 35,099 | 32,381 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 19,800 | 17,858 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 384 | 384 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 19,416 | 17,474 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 15,991 | 15,363 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 308 | 456 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 15,683 | 14,907 |
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 67 | 67 |
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 67 | 67 |
Letter of Credit [Member] | Unused lines of Credit [Member] | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | 1,017,687 | 979,890 |
Letter of Credit [Member] | Unused lines of Credit [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | 107,085 | 84,225 |
Letter of Credit [Member] | Unused lines of Credit [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | $ 910,602 | $ 895,665 |