DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity File Number | 000-12247 | ||
Entity Registrant Name | SOUTHSIDE BANCSHARES, INC. | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Central Index Key | 0000705432 | ||
Entity Tax Identification Number | 75-1848732 | ||
Entity Address, Address Line One | 1201 S. Beckham Avenue, | ||
Entity Address, City or Town | Tyler, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75701 | ||
City Area Code | 903 | ||
Local Phone Number | 531-7111 | ||
Title of 12(b) Security | Common Stock, $1.25 par value | ||
Trading Symbol | SBSI | ||
Security Exchange Name | NASDAQ | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,130 | ||
Entity Common Stock Shares Outstanding (in shares) | 31,393,360 | ||
Documents Incorporated by Reference | Certain portions of the Registrant’s Proxy statement to be filed for the Annual Meeting of Shareholders to be held May 17, 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K. Other than those portions of the proxy statement specifically incorporated by reference pursuant to Items 10-14 of Part III hereof, no other portions of the proxy statement shall be deemed so incorporated. |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and due from banks | $ 106,143,000 | $ 91,120,000 | |
Interest earning deposits | 9,276,000 | 110,633,000 | |
Federal funds sold | 83,833,000 | 0 | |
Total cash and cash equivalents | 199,252,000 | 201,753,000 | |
Securities AFS, at estimated fair value (amortized cost of $1,387,874 and $2,655,594, respectively) | 1,299,014,000 | 2,764,325,000 | |
Securities HTM (estimated fair value of $1,149,156 and $95,235, respectively) | 1,326,729,000 | 90,780,000 | |
FHLB stock, at cost | 9,190,000 | 14,375,000 | |
Equity investments | 11,181,000 | 11,841,000 | |
Loans held for sale | 667,000 | 1,684,000 | |
Loans: | |||
Loans | 4,147,691,000 | 3,645,162,000 | |
Less: Allowance for loan losses | (36,515,000) | (35,273,000) | |
Total loans | 4,111,176,000 | 3,609,889,000 | |
Premises and equipment, net | 141,256,000 | 142,509,000 | |
Operating lease ROU assets | 15,314,000 | 15,073,000 | |
Goodwill | 201,116,000 | 201,116,000 | |
Other intangible assets, net | 4,622,000 | 6,895,000 | |
Interest receivable | 49,350,000 | 39,145,000 | |
Deferred tax asset, net | 34,695,000 | 0 | |
BOLI | 133,911,000 | 131,232,000 | |
Other assets | 21,163,000 | 28,985,000 | |
Total assets | 7,558,636,000 | 7,259,602,000 | |
Deposits: | |||
Noninterest bearing | 1,671,562,000 | 1,644,775,000 | |
Interest bearing | 4,526,457,000 | 4,077,552,000 | |
Total deposits | 6,198,019,000 | 5,722,327,000 | |
Other borrowings | 221,153,000 | 23,219,000 | |
FHLB borrowings | 153,358,000 | 344,038,000 | |
Subordinated notes, net of unamortized debt issuance costs | [1] | 98,674,000 | 98,534,000 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,265,000 | 60,260,000 | |
Deferred tax liability, net | 0 | 17,808,000 | |
Unsettled trades to purchase securities | 0 | 18,995,000 | |
Operating lease liabilities | 17,070,000 | 16,676,000 | |
Other liabilities | 64,100,000 | 45,573,000 | |
Total liabilities | 6,812,639,000 | 6,347,430,000 | |
Off-balance-sheet arrangements, commitments and contingencies (Note 17) | |||
Shareholders’ equity: | |||
Common stock: ($1.25 par value, 80,000,000 shares authorized, 38,000,822 shares issued at December 31, 2022 and 37,968,969 shares issued at December 31, 2021) | 47,501,000 | 47,461,000 | |
Paid-in capital | 784,545,000 | 780,501,000 | |
Retained earnings | 239,610,000 | 179,813,000 | |
Treasury stock: (shares at cost, 6,454,192 at December 31, 2022 and 5,616,917 at December 31, 2021) | (188,203,000) | (155,308,000) | |
AOCI | (137,456,000) | 59,705,000 | |
Total shareholders’ equity | 745,997,000 | 912,172,000 | |
Total liabilities and shareholders’ equity | $ 7,558,636,000 | $ 7,259,602,000 | |
[1]This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
AVAILABLE FOR SALE: | ||
Securities available for sale, amortized cost | $ 1,387,874 | $ 2,655,594 |
Held to maturity | ||
Securities held to maturity, fair value | $ 1,149,156 | $ 95,235 |
Stockholders' equity | ||
Common Stock, Par or Stated Value Per Share | $ 1.25 | $ 1.25 |
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock, Shares, Issued | 38,000,822 | 37,968,969 |
Treasury Stock, Shares | 6,454,192 | 5,616,917 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
Loans | $ 170,410 | $ 144,803 | $ 158,450 |
Taxable investment securities | 18,940 | 13,312 | 4,172 |
Tax-exempt investment securities | 45,001 | 37,730 | 33,416 |
MBS | 16,639 | 19,534 | 34,319 |
FHLB stock and equity investments | 503 | 530 | 1,233 |
Other interest earning assets | 1,488 | 78 | 238 |
Total interest income | 252,981 | 215,987 | 231,828 |
Interest expense: | |||
Deposits | 29,075 | 9,404 | 24,648 |
FHLB borrowings | 3,291 | 7,348 | 11,397 |
Subordinated notes | 4,015 | 8,246 | 6,301 |
Trust preferred subordinated debentures | 2,397 | 1,390 | 1,829 |
Other borrowings | 1,862 | 42 | 388 |
Total interest expense | 40,640 | 26,430 | 44,563 |
Net interest income | 212,341 | 189,557 | 187,265 |
Provision for (reversal of) credit losses | 3,241 | (16,964) | 20,201 |
Net interest income after provision for credit losses | 209,100 | 206,521 | 167,064 |
Noninterest income: | |||
Deposit services | 25,843 | 26,368 | 24,359 |
Net gain (loss) on sale of securities available for sale | (3,819) | 3,862 | 8,257 |
Gain on sale of loans | 531 | 1,641 | 2,772 |
Trust fees | 5,992 | 5,959 | 5,133 |
BOLI | 2,647 | 2,618 | 2,554 |
Brokerage services | 3,335 | 3,383 | 2,271 |
Other | 6,328 | 5,505 | 4,386 |
Total noninterest income | 40,857 | 49,336 | 49,732 |
Noninterest expense: | |||
Salaries and employee benefits | 82,633 | 79,892 | 77,225 |
Net occupancy | 15,130 | 14,239 | 14,369 |
Advertising, travel & entertainment | 3,430 | 2,367 | 2,147 |
ATM expense | 1,314 | 1,166 | 1,018 |
Professional fees | 4,959 | 4,015 | 4,224 |
Software and data processing | 6,847 | 5,675 | 4,957 |
Communications | 1,896 | 2,233 | 1,984 |
FDIC insurance | 1,945 | 1,807 | 1,124 |
Amortization of intangibles | 2,273 | 2,849 | 3,617 |
Loss on redemption of subordinated notes | 0 | 1,118 | 0 |
Other | 9,899 | 9,669 | 12,642 |
Total noninterest expense | 130,326 | 125,030 | 123,307 |
Income before income tax expense | 119,631 | 130,827 | 93,489 |
Income tax expense | 14,611 | 17,426 | 11,336 |
Net income | $ 105,020 | $ 113,401 | $ 82,153 |
Earnings per common share - basic (in dollars per share) | $ 3.27 | $ 3.48 | $ 2.47 |
Earnings per common share - diluted (in dollars per share) | 3.26 | 3.47 | 2.47 |
Cash dividends paid per common share | $ 1.40 | $ 1.37 | $ 1.30 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 105,020 | $ 113,401 | $ 82,153 | |
Securities AFS and transferred securities: | ||||
Change in unrealized holding gain (loss) on AFS securities during the period | (179,684) | (37,199) | 105,845 | |
Change in net unrealized loss on securities transferred from AFS to HTM | (125,175) | 0 | 0 | |
Reclassification adjustment for amortization related to AFS and HTM debt securities | 4,968 | 1,363 | 1,197 | |
Reclassification adjustment for net (gain) loss on sale of AFS securities, included in net income | 3,819 | (3,862) | (8,257) | |
Derivatives: | ||||
Change in net unrealized gain (loss) on effective cash flow hedge interest rate swap derivatives | 44,757 | 13,648 | (23,462) | |
Reclassification adjustment of net (gain) loss related to derivatives designated as cash flow hedges | (3,638) | 6,395 | 3,945 | |
Retirement plans: | ||||
Amortization of net actuarial loss, included in net periodic benefit cost | 895 | 1,264 | 3,028 | |
Effect of settlement recognition | 0 | 0 | 215 | |
Prior service cost adjustment due to plan amendments | $ 163 | 0 | 0 | 163 |
Change in net actuarial gain (loss) | 4,487 | 6,524 | (593) | |
Other comprehensive income (loss), before tax | (249,571) | (11,867) | 82,081 | |
Income tax (expense) benefit related to items of other comprehensive income (loss) | 52,410 | 2,492 | (17,237) | |
Other comprehensive income (loss), net of tax | (197,161) | (9,375) | 64,844 | |
Comprehensive income (loss) | $ (92,141) | $ 104,026 | $ 146,997 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of accounting change | Cumulative effect of accounting change Retained Earnings | Cumulative effect of accounting change Accumulated Other Comprehensive Income (Loss) | Adjusted beginning balance | Adjusted beginning balance Common Stock | Adjusted beginning balance Paid In Capital | Adjusted beginning balance Retained Earnings | Adjusted beginning balance Treasury Stock | Adjusted beginning balance Accumulated Other Comprehensive Income (Loss) |
Beginning balance, net of tax at Dec. 31, 2019 | $ 804,580 | $ 47,360 | $ 766,718 | $ 80,274 | $ (94,008) | $ 4,236 | $ (7,830) | $ (7,830) | $ 0 | $ 796,750 | $ 47,360 | $ 766,718 | $ 72,444 | $ (94,008) | $ 4,236 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 82,153 | 82,153 | |||||||||||||
Other comprehensive income (loss) | 64,844 | 64,844 | |||||||||||||
Issuance of common stock for dividend reinvestment plan | 1,424 | 59 | 1,365 | ||||||||||||
Purchase of common stock | (30,989) | (30,989) | |||||||||||||
Stock compensation expense | 3,020 | 3,020 | |||||||||||||
Net issuance of common stock under employee stock plan | 1,299 | 0 | 408 | (185) | 1,076 | ||||||||||
Cash dividends paid on common stock | (43,204) | (43,204) | |||||||||||||
Ending balance, net of tax at Dec. 31, 2020 | 875,297 | 47,419 | 771,511 | 111,208 | (123,921) | 69,080 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 113,401 | 113,401 | |||||||||||||
Other comprehensive income (loss) | (9,375) | (9,375) | |||||||||||||
Issuance of common stock for dividend reinvestment plan | 1,353 | 42 | 1,311 | ||||||||||||
Purchase of common stock | (34,148) | (34,148) | |||||||||||||
Stock compensation expense | 3,020 | 3,020 | |||||||||||||
Net issuance of common stock under employee stock plan | 7,193 | 0 | 4,659 | (227) | 2,761 | ||||||||||
Cash dividends paid on common stock | (44,569) | (44,569) | |||||||||||||
Ending balance, net of tax at Dec. 31, 2021 | 912,172 | 47,461 | 780,501 | 179,813 | (155,308) | 59,705 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 105,020 | 105,020 | |||||||||||||
Other comprehensive income (loss) | (197,161) | (197,161) | |||||||||||||
Issuance of common stock for dividend reinvestment plan | 1,233 | 40 | 1,193 | ||||||||||||
Purchase of common stock | (33,841) | (33,841) | |||||||||||||
Stock compensation expense | 3,221 | 3,221 | |||||||||||||
Net issuance of common stock under employee stock plan | 289 | 0 | (370) | (287) | 946 | ||||||||||
Cash dividends paid on common stock | (44,936) | (44,936) | |||||||||||||
Ending balance, net of tax at Dec. 31, 2022 | $ 745,997 | $ 47,501 | $ 784,545 | $ 239,610 | $ (188,203) | $ (137,456) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock for dividend reinvestment plan (in shares) | 31,853 | 34,150 | 47,157 |
Common Stock purchased (in shares) | 923,775 | 938,484 | 1,035,901 |
Net issuance of common stock under employee stock plan (in shares) | 86,500 | 305,212 | 116,661 |
Cash dividends paid on common stock (in dollars per share) | $ 1.40 | $ 1.37 | $ 1.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income | $ 105,020,000 | $ 113,401,000 | $ 82,153,000 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and net amortization | 11,105,000 | 11,421,000 | 12,084,000 |
Securities premium amortization (discount accretion), net | 18,261,000 | 22,770,000 | 24,291,000 |
Loan (discount accretion) premium amortization, net | (52,000) | (829,000) | (1,107,000) |
Provision for (reversal of) credit losses | 3,241,000 | (16,964,000) | 20,201,000 |
Stock compensation expense | 3,221,000 | 3,020,000 | 3,020,000 |
Deferred tax expense (benefit) | (89,000) | 4,752,000 | (4,430,000) |
Net (gain) loss on sale of AFS securities | 3,819,000 | (3,862,000) | (8,257,000) |
Loss on impairment of investments | 38,000 | 0 | 0 |
Net loss on premises and equipment | 576,000 | 324,000 | 877,000 |
Gross proceeds from sales of loans held for sale | 23,774,000 | 45,803,000 | 74,814,000 |
Gross originations of loans held for sale | (22,757,000) | (43,792,000) | (78,126,000) |
Net (gain) loss on OREO | (40,000) | (174,000) | 151,000 |
Retirement plan curtailment expense | 0 | 0 | 163,000 |
Retirement plan settlement expense | 0 | 0 | 215,000 |
Loss on redemption of subordinated notes | 0 | 1,118,000 | 0 |
Net change in: | |||
Interest receivable | (10,205,000) | (437,000) | (10,256,000) |
Other assets | (5,447,000) | (2,672,000) | (6,445,000) |
Interest payable | 1,378,000 | (2,257,000) | (3,234,000) |
Other liabilities | 94,674,000 | 24,482,000 | (15,594,000) |
Net cash provided by (used in) operating activities | 226,517,000 | 156,104,000 | 90,520,000 |
Securities AFS: | |||
Purchases | (708,307,000) | (692,675,000) | (916,873,000) |
Sales | 460,765,000 | 160,498,000 | 316,043,000 |
Maturities, calls and principal repayments | 107,787,000 | 315,455,000 | 437,098,000 |
Securities HTM: | |||
Purchases | (1,632,000) | 0 | 0 |
Maturities, calls and principal repayments | 12,002,000 | 18,304,000 | 26,044,000 |
Proceeds from redemption of FHLB stock and equity investments | 46,812,000 | 32,174,000 | 31,000,000 |
Purchases of FHLB stock and equity investments | (40,967,000) | (21,221,000) | (5,689,000) |
Net loan paydowns (originations) | (503,647,000) | 11,891,000 | (90,206,000) |
Purchases of premises and equipment | (9,301,000) | (8,365,000) | (11,435,000) |
Purchases of BOLI | 0 | (13,000,000) | (12,500,000) |
Proceeds from sales of premises and equipment | 1,365,000 | 1,861,000 | 1,846,000 |
Net proceeds from sales of OREO | 220,000 | 816,000 | 766,000 |
Proceeds from sales of repossessed assets | 124,000 | 254,000 | 171,000 |
Net cash provided by (used in) investing activities | (634,779,000) | (194,008,000) | (223,735,000) |
FINANCING ACTIVITIES: | |||
Net change in deposits | 475,629,000 | 789,968,000 | 249,321,000 |
Net change in other borrowings | 197,934,000 | 47,000 | (5,186,000) |
Proceeds from FHLB borrowings | 3,321,000,000 | 14,998,118,000 | 21,797,280,000 |
Repayment of FHLB borrowings | (3,511,680,000) | (15,486,607,000) | (21,937,497,000) |
Net proceeds from issuance of subordinated notes | 0 | (95,000) | 98,478,000 |
Redemption of subordinated notes | 0 | (100,011,000) | 0 |
Proceeds from stock option exercises | 790,000 | 7,672,000 | 1,692,000 |
Cash paid to tax authority related to tax withholding on share-based awards | (501,000) | (479,000) | (393,000) |
Purchase of common stock | (33,708,000) | (34,148,000) | (30,989,000) |
Proceeds from the issuance of common stock for dividend reinvestment plan | 1,233,000 | 1,353,000 | 1,424,000 |
Cash dividends paid | (44,936,000) | (44,569,000) | (43,204,000) |
Net cash provided by (used in) financing activities | 405,761,000 | 131,249,000 | 130,926,000 |
Net increase (decrease) in cash and cash equivalents | (2,501,000) | 93,345,000 | (2,289,000) |
Cash and cash equivalents at beginning of period | 201,753,000 | 108,408,000 | 110,697,000 |
Cash and cash equivalents at end of period | 199,252,000 | 201,753,000 | 108,408,000 |
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | |||
Interest paid | 39,262,000 | 28,687,000 | 47,201,000 |
Income taxes paid | 11,950,000 | 10,750,000 | 12,000,000 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||
Loans transferred to other repossessed assets and real estate through foreclosure | 465,000 | 740,000 | 749,000 |
Transfer of AFS to HTM securities | 1,369,639,000 | 0 | 0 |
Unsettled trades to purchase securities | 0 | (18,995,000) | 0 |
Unsettled trades to repurchase common stock | $ (133,000) | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Organization . Southside Bancshares, Inc., incorporated in Texas in 1982, is a bank holding company for Southside Bank, a Texas state bank headquartered in Tyler, Texas that was formed in 1960. We operate through 55 branches, 13 of which are located in grocery stores. We consider our primary market areas to be East Texas, Southeast Texas, as well as the greater Fort Worth, Austin and Houston, Texas areas. We are a community-focused financial institution that offers a full range of financial services to individuals, businesses, municipal entities and nonprofit organizations in the communities that we serve. These services include consumer and commercial loans, deposit accounts, wealth management and trust services, brokerage services and safe deposit services. Basis of Presentation and Consolidation . The consolidated financial statements are prepared in conformity with U.S. GAAP and include the accounts of Southside Bancshares, Inc., and its wholly-owned subsidiary, Southside Bank and the nonbank subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. We determine if we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. We consolidate voting interest entities in which we have all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. Accounting Changes and Reclassifications . Certain prior period amounts may be reclassified to conform to current period presentation. Current Expected Credit Losses We adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020, the effective date of the guidance. ASU 2016-13 replaced the incurred loss model with an expected loss methodology that is referred to as CECL. The CECL model is used to estimate credit losses on certain off-balance-sheet credit exposures and certain types of financial instruments measured at amortized cost including loan receivables and HTM debt securities. ASU 2016-13 also modified the impairment model on AFS debt securities, whereby credit losses are recognized as an allowance rather than a direct write-down of the AFS debt security. In addition, ASU 2016-13 modified the accounting model for PCD financial assets since their origination. We adopted ASU 2016-13 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Adoption of this guidance on January 1, 2020, resulted in a cumulative-effect adjustment to reduce retained earnings by $7.8 million, net of tax. The impairment model for AFS securities was applied using a prospective approach. We adopted ASU 2016-13 using the prospective transition approach for financial assets purchased with credit deterioration since their origination that were previously classified as PCI and accounted for under ASC 310-30. On the date of adoption, the amortized cost basis of the PCD assets was adjusted by an allowance for credit losses of $231,000. The remaining noncredit discount based upon the adjusted amortized cost basis will be accreted into interest income at the effective interest rate as of the date of adoption. Use of Estimates . In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. These estimates are subjective in nature and involve matters of judgment. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses. The status of contingencies are particularly subject to change. Segment Information . Operating segments are components of a business about which separate financial information is available and that are evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and assess performance. Our chief operating decision-maker uses consolidated results to make operating and strategic decisions. Therefore, we have determined that our business is conducted in one reportable segment. Cash Equivalents . Cash equivalents, for purposes of reporting cash flow, include cash, amounts due from banks and federal funds sold that have an initial maturity of less than 90 days. We maintain deposits with other institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that we are not exposed to any significant credit risks on cash and cash equivalents. There was no cash required to be on hand or on deposit with the Federal Reserve Bank to meet regulatory reserves or clearing requirements at December 31, 2022 or 2021. Basic and Diluted Earnings per Common Share . Basic earnings per common share is based on net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of stock awards granted using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in “Note 2 – Earnings Per Share.” Comprehensive Income . Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of comprehensive income include the after tax effect of changes in the fair value of AFS securities, changes in the net unrealized loss on securities transferred to/from HTM, changes in the accumulated gain or loss on effective cash flow hedging instruments and changes in the funded status of defined benefit retirement plans. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income and in “Note 3 – Accumulated Other Comprehensive Income (Loss).” Loans . Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at amortized cost. Amortized cost consists of the outstanding principal balance adjusted for any charge-offs and any unamortized origination fees and unamortized premiums or discounts on purchased loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the loan. A loan is considered impaired, based on current information and events, if it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Substantially all of our impaired loans are collateral-dependent, and as such, are measured for impairment based on the fair value of the collateral. Loans Held For Sale . Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loan Fees . We treat loan fees, net of direct costs, as an adjustment to the yield of the related loan over its term. Allowance for Credit Losses - Loans . In accordance with ASC 326, the allowance for credit losses on loans is estimated and recognized upon origination of the loan based on expected credit losses. The CECL model uses historical experience and current conditions for homogeneous pools of loans, and reasonable and supportable forecasts about future events. The impact of varying economic conditions and portfolio stress factors are a component of the credit loss models applied to each portfolio. Reserve factors are specific to the loan segments that share similar risk characteristics based on the probability of default assumptions and loss given default assumptions, over the contractual term. The forecasted periods gradually mean-revert the economic inputs to their long-run historical trends. Management evaluates the economic data points used in the Moody’s forecasting scenarios on a quarterly basis to determine the most appropriate impact to the various portfolio characteristics based on management’s view and applies weighting to various forecasting scenarios as deemed appropriate based on known and expected economic activities. Management also considers and may apply relevant qualitative factors, not previously considered, to determine the appropriate allowance level. The use of the CECL model includes significant judgment by management and may differ from those of our peers due to different historical loss patterns, economic forecasts, and the length of time of the reasonable and supportable forecast period and reversion period. We utilize Moody’s Analytics economic forecast scenarios and assign probability weighting to those scenarios which best reflect management’s views on the economic forecast. The probability weighting and scenarios utilized for the estimate of the allowance were generally reflective of improved asset quality, offset slightly by continued economic uncertainty related to inflation and recessionary concerns, as based on known and knowable information as of December 31, 2022. When determining the appropriate allowance for credit losses on our loan portfolio, our commercial construction and real estate loans, commercial loans and municipal loans utilize the probability of default/loss given default discounted cash flow approach. Reserves on these loans are based upon risk factors including the loan type and structure, collateral type, leverage ratio, refinancing risk and origination quality, among others. Our consumer construction real estate loans, 1-4 family residential loans and our loans to individuals use a loss rate based upon risk factors including loan types, origination year and credit scores. Loans evaluated collectively in a pool are monitored to ensure they continue to exhibit similar risk characteristics with other loans in the pool. If a loan does not share similar risk characteristics with other loans, expected credit losses for that loan are evaluated individually. When assessing for credit losses from period to period, the change may be indicative of changes in the estimates of timing or the amount of future cash flows, based on the probability of economic forecast scenarios applied, as well as the passage of time. We have elected to report the entire change in present value as provision for credit losses. When using the discounted cash flow method to determine the allowance for credit losses, management does not adjust the effective interest rate used to discount expected cash flows to incorporate expected prepayments, but rather applies separate prepayment factors. Accrued Interest . Accrued interest for our loans and debt securities, included in interest receivable on our consolidated balance sheets, is excluded from the estimate of allowance for credit losses. Nonaccrual Assets and Loan Charge-offs . Nonaccrual assets include financial assets 90 days or more delinquent and full collection of both principal and interest is not expected. Financial instruments that are not delinquent or that are delinquent less than 90 days may be placed on nonaccrual status if it is probable that we will not receive contractual principal or interest. When an asset is categorized as nonaccrual, the accrual of interest is discontinued and any accrued balance is reversed for financial statement purposes. Payments received on nonaccrual assets are applied to the outstanding principal balance. Payments of contractual interest are recognized as income only to the extent that full recovery of the principal balance is reasonably certain. Assets are returned to accrual status when all payments contractually due are brought current and future payments are reasonably assured. Industry and our own experience indicate that a portion of our loans will become delinquent and a portion of our loans will require partial or full charge-off. Regardless of the underwriting criteria utilized, losses may occur as a result of various factors beyond our control, including, among other things, changes in market conditions affecting the value of properties used as collateral for loans and problems affecting the credit worthiness of the borrower and the ability of the borrower to make payments on the loan. We charge-off loans when deemed uncollectible. Our policy is to charge-off or partially charge-off a retail credit after it is 120 days past due. Charge-offs on commercial credits are determined on a case-by-case basis when a credit loss has been determined. PCD Loans . We have purchased certain loans that as of the date of purchase have experienced more-than-insignificant deterioration in credit quality since origination. Management evaluates these loans against a probability threshold to determine if substantially all of the contractually required payments will be received. With the adoption of ASU 2016-13, PCD loans are recorded at the purchase price plus an allowance for credit losses which becomes the PCD loan's initial amortized cost. The non-credit related discount or premium, the difference between the initial amortized cost and the par value, will be amortized into interest income over the life of the loan. Any further changes to the allowance for credit losses are recorded through provision expense. Prior to the adoption of ASU 2016-13, acquired loans considered PCI were measured at fair value at acquisition date. The difference in expected cash flows at the acquisition date in excess of the fair value was recorded as interest income over the life of the loan. In accordance with the adoption of ASU 2016-13, management did not reassess whether PCI assets met the criteria of PCD assets and elected to not maintain pools of loans as of the date of adoption. All PCD loans are evaluated based upon product type within the underlying segment. TDRs . A loan is considered a TDR if the original terms of a loan are modified and concessions are made to accommodate a borrower experiencing financial duress. The modification or concession may include reduction of interest rates, reduced payment amounts, and/or extension of terms, among others. The likelihood of initiating a TDR is evaluated at each reporting date for each loan. This evaluation is based on qualitative judgments made by management on a case-by-case basis. If a reasonable expectation of a TDR exists, the expected credit loss is adjusted for any potential delays and/or modifications and disclosed as a reasonably expected TDR. OREO and Foreclosed Assets . OREO includes real estate acquired in full or partial settlement of loan obligations. OREO is initially carried at the fair value of the collateral net of estimated selling costs. Prior to foreclosure, the recorded amount of the loan is written down, if necessary, to the appraised fair value of the real estate to be acquired, less selling costs, by charging the allowance for loan losses. Any subsequent reduction in fair value net of estimated selling costs is charged to noninterest expense. Costs of maintaining and operating foreclosed properties are expensed as incurred and included in other expense in our income statement. Expenditures to complete or improve foreclosed properties are capitalized only if expected to be recovered; otherwise, they are expensed. Other foreclosed assets are held for sale and are initially recorded at fair value less estimated selling costs at the date of foreclosure, by charging the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Foreclosed assets are included in other assets in the accompanying consolidated balance sheets. Expenses from operations and changes in the valuation allowance are included in noninterest expense. Securities . AFS. Debt securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity or changes in the availability of and the yield on alternative investments are classified as AFS. These assets are carried at fair value with unrealized gains and losses, not related to credit losses, reported as a separate component of AOCI, net of tax. Fair value is determined using quoted market prices as of the close of business on the balance sheet date. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. AFS securities hedged with qualifying derivatives are carried at fair value with the change in the fair value on both the hedged instrument and the securities recorded in interest income in the consolidated statements of income. Gains and losses on the sale of securities are recorded in the month of the trade date and are determined using the specific identification method. HTM. Debt securities that management has the positive intent and ability to hold until maturity are classified as HTM and are carried at their amortized cost which includes the remaining unpaid principal balance, net of unamortized premiums or unaccreted discounts. Our HTM securities are presented on the consolidated balance sheets net of allowance for credit losses, if any. As of December 31, 2022, there was no allowance for credit losses on our HTM securities portfolio. Premiums and Discounts. Premiums and discounts on debt securities are generally amortized over the contractual life of the security, except for MBS where prepayments are anticipated and for callable debt securities whose premiums are amortized to the earliest call date in accordance with ASC 310. The amortization of purchased premium or discount is included in interest income on our consolidated statements of income. Gains and losses on the sale of securities are recorded in the month of the trade date and are determined using the specific identification method. Premiums on debt securities are amortized to the earliest call date. Allowance for Credit Losses - AFS Securities . In accordance with ASC 326, for AFS debt securities in an unrealized loss position where management (i) has the intent to sell or (ii) where it will more-likely-than-not be required to sell the security before the recovery of its amortized cost basis, we recognize the loss in earnings. For those AFS debt securities in an unrealized loss position that do not meet either of these criteria, management assesses whether the decline in fair value has resulted from credit losses or other factors. Management assesses the financial condition and near-term prospects of the issuer, industry and/or geographic conditions, credit ratings as well as other indicators at the individual security level. If a credit loss is determined to exist, the present value of discounted cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of discounted cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost. Any impairment that is not recorded through an allowance for credit losses is recognized in other comprehensive income. Any future changes in the allowance for credit losses is recorded as provision for (reversal of) credit losses. Allowance for Credit Losses - HTM Securities . In accordance with ASC 326, expected credit losses on HTM securities are measured on a collective basis by major security type, when similar risk characteristics exist. Risk characteristics for segmenting HTM debt securities include issuer, maturity, coupon rate, yield, payment frequency, source of repayment, bond payment structure, and embedded options. Upon assignment of the risk characteristics to the major security types, management may further evaluate the qualitative factors associated with these securities to determine the expectation of credit losses, if any. The major security types within our HTM portfolio include residential and commercial MBS, state and political subdivisions and corporate securities. Our state and political subdivisions include highly-rated municipal securities with a long history of no credit losses. Our investment policy prohibits bond purchases with a rating less than BAA and limits our entity concentration. We utilize term structures and due to no prior loss exposure on our state and political subdivision securities, we apply third-party average data to model our securities to represent the portion of the asset that would be lost if the issuer were to default. These third-party estimates of recoveries and defaults, adjusted for constant probability over the securities expected life, are used to evaluate the expected loss of the securities. Due to the limited number and the nature of the HTM state and political subdivisions we hold, we do not model these securities as a pool, but on the specific identification method in conjunction with the application of our third-party fair value measurement. Our residential and commercial MBS are issued and/or guaranteed by U.S. government agencies or GSEs and are collateralized by pools of single- or multi-family mortgages. Our MBS are highly rated securities with a long history of no credit losses which are either explicitly or implicitly backed by the U.S. government agencies, which guarantee the payment of principal and interest to investors. Management has collectively evaluated the characteristics of these securities and has assumed an expectation of zero credit loss. Our corporate bonds and other investment securities consist of investment grade bonds and private placement bonds with a long history of no credit losses. We reevaluate the characteristics of our major security types at every reporting period and reassess the considerations to continue to support our expectation of credit loss. Equity Investments . Equity investments with readily determinable fair values are stated at fair value with the unrealized gains and losses reported in other noninterest income in the consolidated statements of income. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. Securities with Limited Marketability . Securities with limited marketability, such as stock in the FHLB, are carried at cost, which is a reasonable estimate of the fair value of those assets and are assessed for other-than-temporary impairment. Premises and Equipment . Land is carried at cost. Bank premises and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight line basis over the estimated useful lives of the related assets. Useful lives are estimated to be 15 to 40 years for premises and 3 to 10 years for equipment. Leasehold improvements are generally depreciated over the lesser of the term of the respective leases or the estimated useful lives of the improvements. Maintenance and repairs are charged to expense as incurred while major improvements and replacements are capitalized. Leases . We evaluate our contracts at inception to determine if an arrangement is or contains a lease. Operating leases are included in operating lease ROU assets and operating lease liabilities in our consolidated balance sheets. Our operating leases relate primarily to bank branches and office space. The Company has no finance leases. Short-term leases, leases with an initial term of 12 months or less and do not contain a purchase option that is likely to be exercised, are not recorded on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of the future lease payments over the lease term. Our leases do not provide an implicit rate, so we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. BOLI . The Company has purchased life insurance policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received are reflected in noninterest income on the consolidated statements of income and are not subject to income taxes. Goodwill and Other Intangibles . Other intangible assets consist primarily of core deposits and trust relationship intangibles. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Goodwill and intangible assets that have indefinite useful lives are subject to at least an annual impairment test and more frequently if a triggering event occurs. If any such impairment is determined, a write-down is recorded. We have selected October 1 of each year as the measurement date on which we will complete our annual goodwill impairment assessment. As of October 1, 2022 and 2021, the fair value of the reporting unit was greater than the carrying value of the reporting unit. As a result, we did not record any goodwill impairment for the years ended December 31, 2022 or 2021, and we had no cumulative goodwill impairment. At December 31, 2022, core deposit intangible and trust relationship intangible was $2.6 million and $2.0 million, respectively. For the years ended December 31, 2022, 2021 and 2020, amortization expense related to our core deposit intangible and trust relationship intangible was $2.3 million, $2.8 million and $3.5 million, respectively. Repurchase Agreements . We sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remains in the asset account. We determine the type of debt securities to pledge which may include investment securities and U.S. agency MBS. Derivative Financial Instruments and Hedging Activities . Derivative financial instruments are carried on the consolidated balance sheets as other assets or other liabilities, as applicable, at estimated fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative financial instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. We present derivative financial instruments at fair value in the consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period of change. Gains and losses on derivative instruments designated as fair value hedges, as well as the change in the fair value on the hedged item, are recorded in interest income in the consolidated statements of income. Gains and losses due to changes in the fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the hedged item. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. During the year ended December 31, 2022, we entered into partial term fair value hedges, as allowed under ASU 2017-12, for certain of our fixed rate callable AFS municipal securities. The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for us making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The change in the fair value of these hedging instruments is recorded in AOCI and is subsequently reclassified into earnings in the period that the hedged transactions affects earnings. For derivatives designated as hedging instruments at inception, statistical regression analysis is used at inception and for each reporting period thereafter to assess whether the derivative used has been and is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Net hedge ineffectiveness is recorded in other noninterest income on the consolidated statements of income. Terminated Derivative Financial Instruments . In accordance with ASC Topic 815, if a hedging item is terminated prior to maturity for a cash settlement, the existing gain or loss within AOCI will continue to be reclassified into earnings during the period or periods in which the hedged forecasted transaction affects earnings unless it is probable the forecasted transaction will not occur by the end of the originally specified time period. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation, it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. Further information on our derivative instruments and hedging activities is included in “Note 11 – Derivative Financial Instruments and Hedging Activities.” |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share on a basic and diluted basis are calculated as follows (in thousands, except per share amounts): Years Ended December 31, 2022 2021 2020 Basic and Diluted Earnings: Net income $ 105,020 $ 113,401 $ 82,153 Basic weighted-average shares outstanding 32,120 32,558 33,201 Add: Stock awards 131 134 80 Diluted weighted-average shares outstanding 32,251 32,692 33,281 Basic earnings per share: Net income $ 3.27 $ 3.48 $ 2.47 Diluted earnings per share: Net income $ 3.26 $ 3.47 $ 2.47 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component are as follows for the years presented (in thousands): Year Ended December 31, 2022 Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Retirement Plans Total Beginning balance, net of tax $ 84,716 $ (1,257) $ (23,754) $ 59,705 Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications (304,859) 44,757 4,487 (255,615) Reclassification adjustments included in net income 8,787 (3,638) 895 6,044 Income tax (expense) benefit 62,175 (8,635) (1,130) 52,410 Net current-period other comprehensive income (loss), net of tax (233,897) 32,484 4,252 (197,161) Ending balance, net of tax $ (149,181) $ 31,227 $ (19,502) $ (137,456) Year Ended December 31, 2021 Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Retirement Plans Total Beginning balance, net of tax $ 116,078 $ (17,091) $ (29,907) $ 69,080 Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications (37,199) 13,648 6,524 (17,027) Reclassification adjustments included in net income (2,499) 6,395 1,264 5,160 Income tax (expense) benefit 8,336 (4,209) (1,635) 2,492 Net current-period other comprehensive income (loss), net of tax (31,362) 15,834 6,153 (9,375) Ending balance, net of tax $ 84,716 $ (1,257) $ (23,754) $ 59,705 Year Ended December 31, 2020 Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Retirement Plans Total Beginning balance, net of tax $ 38,038 $ (1,672) $ (32,130) $ 4,236 Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications 105,845 (23,462) (215) 82,168 Reclassification adjustments included in net income (7,060) 3,945 3,028 (87) Income tax (expense) benefit (20,745) 4,098 (590) (17,237) Net current-period other comprehensive income (loss), net of tax 78,040 (15,419) 2,223 64,844 Ending balance, net of tax $ 116,078 $ (17,091) $ (29,907) $ 69,080 The reclassification adjustments out of accumulated other comprehensive income (loss) included in net income are presented below (in thousands): Years Ended December 31, 2022 2021 2020 Unrealized gains and losses on securities transferred: Amortization of unrealized gains and losses (1) $ (4,968) $ (1,363) $ (1,197) Tax benefit 1,043 286 251 Net of tax $ (3,925) $ (1,077) $ (946) Unrealized gains and losses on AFS securities: Realized net gain (loss) on sale of securities (2) $ (3,819) $ 3,862 $ 8,257 Tax (expense) benefit 802 (811) (1,734) Net of tax $ (3,017) $ 3,051 $ 6,523 Derivatives: Realized net gain (loss) on interest rate swap derivatives (3) $ 3,638 $ (6,395) $ (3,970) Tax (expense) benefit (764) 1,343 834 Net of tax $ 2,874 $ (5,052) $ (3,136) Amortization of unrealized gains on terminated interest rate swap derivatives (3) $ — $ — $ 25 Tax expense — — (5) Net of tax $ — $ — $ 20 Amortization of retirement plans: Net actuarial loss (4) $ (895) $ (1,264) $ (3,035) Prior service credit (4) — — 7 Total before tax (895) (1,264) (3,028) Tax benefit 188 265 636 Net of tax $ (707) $ (999) $ (2,392) Total reclassifications for the period, net of tax $ (4,775) $ (4,077) $ 69 (1) Included in interest income on the consolidated statements of income. (2) Listed as net gain (loss) on sale of securities AFS on the consolidated statements of income. (3) Included in interest expense for FHLB borrowings and deposits on the consolidated statements of income. (4) These AOCI components are included in the computation of net periodic pension cost (income) presented in “Note 10 – Employee Benefits.” |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Debt securities The amortized cost, gross unrealized gains and losses and estimated fair value of investment and mortgage-backed AFS and HTM securities as of December 31, 2022 and 2021 are reflected in the tables below (in thousands): December 31, 2022 Amortized Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Fair Value Investment securities: State and political subdivisions $ 1,039,453 $ 956 $ 75,557 $ 964,852 Corporate bonds and other 8,692 26 14 8,704 MBS: (1) Residential 328,400 250 13,623 315,027 Commercial 11,329 50 948 10,431 Total $ 1,387,874 $ 1,282 $ 90,142 $ 1,299,014 HELD TO MATURITY Investment securities: State and political subdivisions $ 1,037,556 $ 3,969 $ 163,283 $ 878,242 Corporate bonds and other 152,552 575 7,993 145,134 MBS: (1) Residential 93,796 21 8,343 85,474 Commercial 42,825 — 2,519 40,306 Total $ 1,326,729 $ 4,565 $ 182,138 $ 1,149,156 December 31, 2021 Amortized Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Fair Value Investment securities: U.S. Treasury $ 58,084 $ 843 $ 50 $ 58,877 State and political subdivisions 1,962,257 93,893 4,214 2,051,936 Corporate bonds and other 133,333 2,408 209 135,532 MBS: (1) Residential 411,727 14,895 272 426,350 Commercial 90,193 1,642 205 91,630 Total $ 2,655,594 $ 113,681 $ 4,950 $ 2,764,325 HELD TO MATURITY Investment securities: State and political subdivisions $ 788 $ 3 $ — $ 791 MBS: (1) Residential 38,644 2,103 — 40,747 Commercial 51,348 2,349 — 53,697 Total $ 90,780 $ 4,455 $ — $ 95,235 (1) All MBS issued and/or guaranteed by U.S. government agencies or U.S. GSEs. From time to time, we transfer securities from AFS to HTM due to overall balance sheet strategies. We transferred securities from AFS to HTM with an estimated fair value of $1.25 billion during the year ended December 31, 2022. There were no securities transferred from AFS to HTM during the year ended December 31, 2021. The remaining net unamortized, unrealized loss on the transferred securities included in AOCI in the accompanying balance sheets totaled $121.5 million ($96.0 million, net of tax) at December 31, 2022 and $1.5 million ($1.2 million, net of tax) at December 31, 2021. Any net unrealized gain or loss on the transferred securities included in AOCI at the time of transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. Securities transferred with losses included in AOCI continue to be included in management’s assessment for impairment for each individual security. We transferred these securities due to overall balance sheet strategies, and our management has the current intent and ability to hold these securities until maturity. Investment securities and MBS with carrying values of $1.82 billion and $1.61 billion were pledged as of December 31, 2022 and December 31, 2021, respectively, to collateralize FHLB borrowings, borrowings from the FRDW, repurchase agreements and public fund deposits, for potential liquidity needs or other purposes as required by law. The following tables present the fair value and unrealized losses on AFS and HTM investment securities and MBS, if applicable, for which an allowance for credit losses has not been recorded as of December 31, 2022 or 2021, segregated by major security type and length of time in a continuous loss position (in thousands): December 31, 2022 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AVAILABLE FOR SALE Investment securities: State and political subdivisions $ 859,270 $ 68,683 $ 26,620 $ 6,874 $ 885,890 $ 75,557 Corporate bonds and other 3,678 14 — — 3,678 14 MBS: Residential 306,294 13,623 — — 306,294 13,623 Commercial 5,613 318 2,545 630 8,158 948 Total $ 1,174,855 $ 82,638 $ 29,165 $ 7,504 $ 1,204,020 $ 90,142 HELD TO MATURITY Investment securities: State and political subdivisions $ 426,382 $ 66,898 $ 323,385 $ 96,385 $ 749,767 $ 163,283 Corporate bonds and other 125,250 6,660 12,738 1,333 137,988 7,993 Mortgage-backed securities: Residential 80,801 7,799 3,932 544 84,733 8,343 Commercial 40,306 2,519 — — 40,306 2,519 Total $ 672,739 $ 83,876 $ 340,055 $ 98,262 $ 1,012,794 $ 182,138 December 31, 2021 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AVAILABLE FOR SALE Investment securities: U.S. Treasury $ 9,947 $ 50 $ — $ — $ 9,947 $ 50 State and political subdivisions 260,509 3,622 7,608 592 268,117 4,214 Corporate bonds and other 35,597 209 — — 35,597 209 MBS: Residential 1,225 3 5,168 269 6,393 272 Commercial 4,274 7 4,674 198 8,948 205 Total $ 311,552 $ 3,891 $ 17,450 $ 1,059 $ 329,002 $ 4,950 For those AFS debt securities in an unrealized loss position where management (i) has the intent to sell or (ii) where it will more-likely-than-not be required to sell the security before the recovery of its amortized cost basis, we recognize the loss in earnings. For those AFS debt securities in an unrealized loss position that do not meet either of these criteria, management assesses whether the decline in fair value has resulted from credit-related factors, using both qualitative and quantitative criteria. Determining the allowance under the credit loss method requires the use of a discounted cash flow method to assess the credit losses. Any credit-related impairment will be recognized in allowance for credit losses on the balance sheet with a corresponding adjustment to earnings. Noncredit-related temporary impairment, the portion of the impairment relating to factors other than credit (such as changes in market interest rates), is recognized in other comprehensive income, net of tax. As of December 31, 2022 and December 31, 2021, we did not have an allowance for credit losses on our AFS securities, based on our consideration of the qualitative factors associated with each security type in our AFS portfolio. The unrealized losses on our investment and MBS are due to changes in interest rates and spreads and other market conditions. At December 31, 2022, we had 687 AFS debt securities in an unrealized loss position. Our state and political subdivisions are highly rated municipal securities with a long history of no credit losses. Our AFS MBS are highly rated securities which are either explicitly or implicitly backed by the U.S. Government through its agencies which are highly rated by major ratings agencies and also have a long history of no credit losses. Our corporate bonds and other investment securities consist of investment grade bonds and private placement bonds. We assess the likelihood of default and the potential amount of default when assessing our HTM securities for credit losses. We utilize term structures and, due to no prior loss exposure on our state and political subdivision securities or our corporate securities, we currently apply a third-party average loss given default rate to model these securities. We elected to use the specific identification method to model our HTM securities which aligns with our third-party fair value measurement process. The model determined any expected credit loss over the life of these securities to be insignificant. Management further evaluated the remote expectation of loss along with the qualitative factors associated with these securities and concluded that, due to the securities being highly rated municipals and investment grade corporates and private placement bonds with a long history of no credit losses, no credit loss should be recognized for these securities for the years ended December 31, 2022 or 2021. The accrued interest receivable on our debt securities is excluded from the credit loss estimate and is included in interest receivable on our consolidated balance sheets. As of December 31, 2022, accrued interest receivable on AFS and HTM debt securities totaled $16.9 million and $13.6 million, respectively. As of December 31, 2021, accrued interest receivable on AFS and HTM debt securities totaled $25.6 million and $244,000, respectively. No HTM debt securities were past-due or on nonaccrual status as of December 31, 2022 or 2021. The following table reflects interest income recognized on securities for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 U.S. Treasury $ 271 $ 615 $ — State and political subdivisions 57,663 46,296 36,393 Corporate bonds and other 6,007 4,131 1,195 MBS 16,639 19,534 34,319 Total interest income on securities $ 80,580 $ 70,576 $ 71,907 There was a $3.8 million net realized loss from the AFS securities portfolio for the year ended December 31, 2022, which consisted of $4.4 million in realized losses and $584,000 in realized gains. There was a $3.9 million net realized gain from the AFS securities portfolio for the year ended December 31, 2021, which consisted of $4.1 million in realized gains and $218,000 in realized losses. There was a $8.3 million net realized gain from the AFS securities portfolio for the year ended December 31, 2020, which consisted of $8.4 million in realized gains and $129,000 in realized losses. There were no sales from the HTM portfolio during the years ended December 31, 2022, 2021 or 2020. We calculate realized gains and losses on sales of securities under the specific identification method. Expected maturities on our securities may differ from contractual maturities because issuers may have the right to call or prepay obligations. MBS are presented in total by category since MBS are typically issued with stated principal amounts and are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the security holder. The term of a mortgage-backed pass-through security thus approximates the term of the underlying mortgages and can vary significantly due to prepayments. The amortized cost and estimated fair value of AFS and HTM securities at December 31, 2022, are presented below by contractual maturity (in thousands). December 31, 2022 Amortized Cost Fair Value AVAILABLE FOR SALE Investment securities: Due in one year or less $ 528 $ 529 Due after one year through five years 1,485 1,498 Due after five years through ten years 57,795 57,890 Due after ten years 988,337 913,639 1,048,145 973,556 MBS: 339,729 325,458 Total $ 1,387,874 $ 1,299,014 December 31, 2022 Amortized Cost Fair Value HELD TO MATURITY Investment securities: Due in one year or less $ 125 $ 124 Due after one year through five years 24,810 24,615 Due after five years through ten years 133,794 126,505 Due after ten years 1,031,379 872,132 1,190,108 1,023,376 MBS: 136,621 125,780 Total $ 1,326,729 $ 1,149,156 Equity Investments Equity investments on our consolidated balance sheets include CRA funds with a readily determinable fair value as well as equity investments without readily determinable fair values. At December 31, 2022 and 2021, we had equity investments recorded in our consolidated balance sheets of $11.2 million and $11.8 million, respectively. Any realized and unrealized gains and losses on equity investments are reported in income. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. The following is a summary of unrealized and realized gains and losses on equity investments recognized in other noninterest income in the consolidated statements of income during the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Net gains (losses) recognized during the period on equity investments $ (685) $ (174) $ (427) Less: Net gains recognized during the period on equity investments sold during the period — — — Unrealized gains (losses) recognized during the reporting period on equity investments still held at the reporting date $ (685) $ (174) $ (427) Equity investments are assessed quarterly for other-than-temporary impairment. Based upon that evaluation, management does not consider any of our equity investments to be other-than-temporarily impaired at December 31, 2022. FHLB Stock Our FHLB stock, which has limited marketability, is carried at cost and is assessed quarterly for other-than-temporary impairment. Based upon evaluation by management at December 31, 2022, our FHLB stock was not impaired and thus was not considered to be other-than-temporarily impaired. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans in the accompanying consolidated balance sheets are classified as follows (in thousands): December 31, 2022 December 31, 2021 Real estate loans: Construction $ 559,681 $ 447,860 1-4 family residential 663,519 651,140 Commercial 1,987,707 1,598,172 Commercial loans 412,064 418,998 Municipal loans 450,067 443,078 Loans to individuals 74,653 85,914 Total loans 4,147,691 3,645,162 Less: Allowance for loan losses 36,515 35,273 Net loans $ 4,111,176 $ 3,609,889 Loans to Affiliated Parties In the normal course of business, we make loans to certain of our executive officers and directors and their related interests. As of December 31, 2022 and 2021, these loans totaled $14.2 million and $28.3 million, respectively. These loans represented 1.9% and 3.1% of shareholders’ equity as of December 31, 2022 and 2021, respectively. Paycheck Protection Program Loans In April 2020, we began originating loans to qualified small businesses under the PPP administered by the SBA under the provisions of the CARES Act. Loans covered by the PPP may be eligible for loan forgiveness for certain costs incurred related to payroll, group health care benefit costs and qualifying mortgage, rent and utility payments. The remaining loan balance after forgiveness of any amount is still fully guaranteed by the SBA. On December 27, 2020, the Economic Aid Act was signed into law. This second coronavirus relief package granted additional funds for a new round of PPP loans. Additionally, it expanded the eligibility for loans and allowed certain businesses to request a second loan. In return for processing and booking a PPP loan, the SBA paid lenders a processing fee tiered by the size of the loan. These loans are included in commercial loans with an amortized cost basis at December 31, 2022 and 2021 of $113,000 and $31.0 million, respectively. Construction Real Estate Loans Our construction loans are collateralized by property located primarily in or near the market areas we serve. A number of our construction loans will be owner occupied upon completion. Construction loans for non-owner occupied projects are financed, but these typically have cash flows from leases with tenants, secondary sources of repayment, and in some cases, additional collateral. Our construction loans have both adjustable and fixed interest rates during the construction period. Construction loans to individuals are typically priced and made with the intention of granting the permanent loan on the completed property. Commercial construction loans are subject to underwriting standards similar to that of the commercial portfolio. Owner occupied 1-4 family residential construction loans are subject to the underwriting standards of the permanent loan. 1-4 Family Residential Real Estate Loans Residential loan originations are generated by our loan officers, in-house origination staff, marketing efforts, present customers, walk-in customers and referrals from real estate agents and builders. We focus our lending efforts primarily on the origination of loans secured by first mortgages on owner occupied 1-4 family residences. Substantially all of our 1-4 family residential originations are secured by properties located in or near our market areas. Our 1-4 family residential loans generally have maturities ranging from 15 to 30 years. These loans are typically fully amortizing with monthly payments sufficient to repay the total amount of the loan. Our 1-4 family residential loans are made at both fixed and adjustable interest rates. Underwriting for 1-4 family residential loans includes debt-to-income analysis, credit history analysis, appraised value and down payment considerations. Changes in the market value of real estate can affect the potential losses in the residential portfolio. Commercial Real Estate Loans Commercial real estate loans as of December 31, 2022 consisted of $1.60 billion of owner and non-owner occupied real estate, $363.3 million of loans secured by multi-family properties and $26.3 million of loans secured by farmland. Commercial real estate loans primarily include loans collateralized by retail, commercial office buildings, multi-family residential buildings, medical facilities and offices, senior living, assisted living and skilled nursing facilities, warehouse facilities, hotels and churches. In determining whether to originate commercial real estate loans, we generally consider such factors as the financial condition of the borrower and the debt service coverage of the property. Commercial real estate loans are made at both fixed and adjustable interest rates for terms generally up to 20 years. Commercial Loans Our commercial loans are diversified loan types including short-term working capital loans for inventory and accounts receivable and short- and medium-term loans for equipment or other business capital expansion. In our commercial loan underwriting, we assess the creditworthiness, ability to repay and the value and liquidity of the collateral being offered. Terms of commercial loans are generally commensurate with the useful life of the collateral offered. Municipal Loans We make loans to municipalities and school districts primarily throughout the state of Texas, with a small percentage originating outside of the state. The majority of the loans to municipalities and school districts have tax or revenue pledges and in some cases are additionally supported by collateral. Municipal loans made without a direct pledge of taxes or revenues are usually made based on some type of collateral that represents an essential service. Lending money directly to these municipalities allows us to earn a higher yield than we could if we purchased municipal securities for similar durations. Loans to Individuals Substantially all originations of our loans to individuals are made to consumers in our market areas. The majority of loans to individuals are collateralized by titled equipment, which are primarily automobiles. Loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards we employ for consumer loans include an application, a determination of the applicant’s payment history on other debts, with the greatest weight being given to payment history with us and an assessment of the borrower’s ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount. Most of our loans to individuals are collateralized, which management believes assists in limiting our exposure. Credit Quality Indicators We categorize loans into risk categories on an ongoing basis based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We use the following definitions for risk ratings: • Pass (Rating 1 – 4) – This rating is assigned to all satisfactory loans. This category, by definition, consists of acceptable credit. Credit and collateral exceptions should not be present, although their presence would not necessarily prohibit a loan from being rated Pass, if deficiencies are in the process of correction. These loans are not included in the Watch List. • Pass Watch (Rating 5) – These loans require some degree of special treatment, but not due to credit quality. This category does not include loans specially mentioned or adversely classified; however, particular attention is warranted to characteristics such as: ▪ A lack of, or abnormally extended payment program; ▪ A heavy degree of concentration of collateral without sufficient margin; ▪ A vulnerability to competition through lesser or extensive financial leverage; and ▪ A dependence on a single or few customers or sources of supply and materials without suitable substitutes or alternatives. • Special Mention (Rating 6) – A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in our credit position at some future date. Special Mention loans are not adversely classified and do not expose us to sufficient risk to warrant adverse classification. • Substandard (Rating 7) – Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful (Rating 8) – Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation, in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands): December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Total 2022 2021 2020 2019 2018 Prior Construction real estate: Pass $ 169,652 $ 184,501 $ 34,537 $ 7,091 $ 1,844 $ 6,434 $ 152,530 $ 556,589 Pass watch 299 — — — — — — 299 Special mention 1,858 290 — — — — — 2,148 Substandard — — — 10 42 194 — 246 Doubtful — 44 — 355 — — — 399 Total construction real estate $ 171,809 $ 184,835 $ 34,537 $ 7,456 $ 1,886 $ 6,628 $ 152,530 $ 559,681 1-4 family residential real estate: Pass $ 82,847 $ 144,424 $ 128,666 $ 70,142 $ 36,710 $ 194,490 $ 2,160 $ 659,439 Pass watch — — — — — — — — Special mention — — 79 — 1,397 — — 1,476 Substandard 3 — 217 54 32 1,942 43 2,291 Doubtful — — — — 173 140 — 313 Total 1-4 family residential real estate $ 82,850 $ 144,424 $ 128,962 $ 70,196 $ 38,312 $ 196,572 $ 2,203 $ 663,519 Commercial real estate: Pass $ 798,653 $ 546,938 $ 168,607 $ 136,440 $ 55,480 $ 233,509 $ 12,315 $ 1,951,942 Pass watch — 9,219 — — — — — 9,219 Special mention — — 1,832 330 115 1,849 — 4,126 Substandard — — 281 14,603 260 6,992 — 22,136 Doubtful — — — 76 — 208 — 284 Total commercial real estate $ 798,653 $ 556,157 $ 170,720 $ 151,449 $ 55,855 $ 242,558 $ 12,315 $ 1,987,707 Commercial loans: Pass $ 113,678 $ 68,509 $ 17,852 $ 8,249 $ 4,820 $ 3,313 $ 178,951 $ 395,372 Pass watch 208 13 56 — — — — 277 Special mention — 5,109 31 — 288 — 9,986 15,414 Substandard 220 116 70 110 12 9 — 537 Doubtful 68 100 — 86 210 — — 464 Total commercial loans $ 114,174 $ 73,847 $ 18,009 $ 8,445 $ 5,330 $ 3,322 $ 188,937 $ 412,064 Municipal loans: Pass $ 65,258 $ 74,617 $ 57,147 $ 47,636 $ 24,576 $ 173,919 $ — $ 443,153 Pass watch — — — 508 403 6,003 — 6,914 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total municipal loans $ 65,258 $ 74,617 $ 57,147 $ 48,144 $ 24,979 $ 179,922 $ — $ 450,067 Loans to individuals: Pass $ 29,579 $ 21,480 $ 12,651 $ 5,261 $ 1,665 $ 1,005 $ 2,935 $ 74,576 Pass watch — — — — — — — — Special mention — — — — — — — — Substandard — 1 — 6 — 2 — 9 Doubtful 7 — — 18 40 3 — 68 Total loans to individuals $ 29,586 $ 21,481 $ 12,651 $ 5,285 $ 1,705 $ 1,010 $ 2,935 $ 74,653 Total loans $ 1,262,330 $ 1,055,361 $ 422,026 $ 290,975 $ 128,067 $ 630,012 $ 358,920 $ 4,147,691 December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Total 2021 2020 2019 2018 2017 Prior Construction real estate: Pass $ 179,521 $ 82,862 $ 38,788 $ 5,666 $ 2,126 $ 6,080 $ 132,592 $ 447,635 Pass watch — — — — — — — — Special mention — — — — — — — — Substandard — — — — — 175 — 175 Doubtful — — — 50 — — — 50 Total construction real estate $ 179,521 $ 82,862 $ 38,788 $ 5,716 $ 2,126 $ 6,255 $ 132,592 $ 447,860 1-4 family residential real estate: Pass $ 141,058 $ 129,681 $ 81,607 $ 47,566 $ 34,236 $ 209,470 $ 2,238 $ 645,856 Pass watch — — — — — 777 — 777 Special mention — 82 — — — — — 82 Substandard 57 403 55 — 295 3,257 88 4,155 Doubtful — — — — — 270 — 270 Total 1-4 family residential real estate $ 141,115 $ 130,166 $ 81,662 $ 47,566 $ 34,531 $ 213,774 $ 2,326 $ 651,140 Commercial real estate: Pass $ 648,002 $ 207,370 $ 209,923 $ 114,788 $ 143,350 $ 209,368 $ 7,566 $ 1,540,367 Pass watch 21,669 — 2,163 3,074 374 — — 27,280 Special mention — 2,062 2,217 119 163 1,877 — 6,438 Substandard 3,299 667 10,830 1,480 — 7,691 — 23,967 Doubtful — — — — — 120 — 120 Total commercial real estate $ 672,970 $ 210,099 $ 225,133 $ 119,461 $ 143,887 $ 219,056 $ 7,566 $ 1,598,172 Commercial loans: Pass $ 140,628 $ 51,866 $ 24,688 $ 13,204 $ 2,516 $ 4,062 $ 178,263 $ 415,227 Pass watch — — 280 22 — — — 302 Special mention — 57 78 363 — 157 — 655 Substandard — 283 296 174 16 — 1,457 2,226 Doubtful 7 26 124 359 — 72 — 588 Total commercial loans $ 140,635 $ 52,232 $ 25,466 $ 14,122 $ 2,532 $ 4,291 $ 179,720 $ 418,998 Municipal loans: Pass $ 80,167 $ 64,803 $ 61,348 $ 29,168 $ 56,274 $ 151,318 $ — $ 443,078 Pass watch — — — — — — — — Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total municipal loans $ 80,167 $ 64,803 $ 61,348 $ 29,168 $ 56,274 $ 151,318 $ — $ 443,078 Loans to individuals: Pass $ 40,252 $ 24,028 $ 11,813 $ 4,121 $ 1,684 $ 849 $ 3,052 $ 85,799 Pass watch — — — — — — — — Special mention — — — 36 — — — 36 Substandard — 1 24 4 23 10 2 64 Doubtful — — 1 7 3 4 — 15 Total loans to individuals $ 40,252 $ 24,029 $ 11,838 $ 4,168 $ 1,710 $ 863 $ 3,054 $ 85,914 Total loans $ 1,254,660 $ 564,191 $ 444,235 $ 220,201 $ 241,060 $ 595,557 $ 325,258 $ 3,645,162 Watchlisted loans reported as 2022 originations as of December 31, 2022 and watchlisted loans reported as 2021 originations as of December 31, 2021 were, for the majority, first originated in various years prior to 2022 and 2021, respectively, but were renewed in the respective year. The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands): December 31, 2022 30-59 Days 60-89 Days Greater than Total Past Current Total Real estate loans: Construction $ 43 $ 21 $ — $ 64 $ 559,617 $ 559,681 1-4 family residential 3,529 368 214 4,111 659,408 663,519 Commercial 105 153 415 673 1,987,034 1,987,707 Commercial loans 515 277 247 1,039 411,025 412,064 Municipal loans — — — — 450,067 450,067 Loans to individuals 203 3 40 246 74,407 74,653 Total $ 4,395 $ 822 $ 916 $ 6,133 $ 4,141,558 $ 4,147,691 December 31, 2021 30-59 Days 60-89 Days Greater than Total Past Current Total Real estate loans: Construction $ 82 $ 58 $ — $ 140 $ 447,720 $ 447,860 1-4 family residential 3,226 606 227 4,059 647,081 651,140 Commercial 1,191 — 99 1,290 1,596,882 1,598,172 Commercial loans 1,523 251 537 2,311 416,687 418,998 Municipal loans 170 — — 170 442,908 443,078 Loans to individuals 315 41 8 364 85,550 85,914 Total $ 6,507 $ 956 $ 871 $ 8,334 $ 3,636,828 $ 3,645,162 The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands): December 31, 2022 December 31, 2021 Nonaccrual loans: Real estate loans: Construction $ 405 $ 57 1-4 family residential 848 969 Commercial 762 668 Commercial loans 757 815 Loans to individuals 74 27 Total nonaccrual loans (1) 2,846 2,536 Accruing loans past due more than 90 days — — TDR loans 7,849 9,073 OREO 93 — Repossessed assets 74 — Total nonperforming assets $ 10,862 $ 11,609 (1) Includes $897,000 and $1.1 million of restructured loans as of December 31, 2022 and December 31, 2021, respectively. We reversed $36,000 and $15,000 of interest income on nonaccrual loans during the years ended December 31, 2022 and 2021, respectively. We had $1.6 million and $1.2 million of loans on nonaccrual for which there was no related allowance for credit losses as of December 31, 2022 and 2021, respectively. Collateral-dependent loans are loans that we expect the repayment to be provided substantially through the operation or sale of the collateral of the loan and we have determined that the borrower is experiencing financial difficulty. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for selling costs. As of December 31, 2022 and 2021, we had $8.1 million and $8.5 million, respectively, of collateral-dependent loans, secured mainly by real estate and equipment. There have been no significant changes to the collateral that secures the collateral-dependent assets. Foreclosed assets include OREO and repossessed assets. For 1-4 family residential real estate properties, a loan is recognized as a foreclosed property once legal title to the real estate property has been received upon completion of foreclosure or the borrower has conveyed all interest in the residential property through a deed in lieu of foreclosure. There were no loans secured by 1-4 family residential properties for which formal foreclosure proceedings were in process as of December 31, 2022 and $21,000 as of December 31, 2021. Troubled Debt Restructurings The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, restructuring amortization schedules and other actions intended to minimize potential losses. We may provide a combination of concessions which may include an extension of the amortization period, interest rate reduction and/or converting the loan to interest-only for a limited period of time. The following tables set forth the recorded balance of loans considered to be TDRs that were restructured and the type of concession by class of loans during the periods presented (dollars in thousands): December 31, 2022 Extend Amortization Interest Rate Reductions Combination Total Modifications Number of Loans Real estate loans: 1-4 family residential $ — $ — $ 305 $ 305 4 Commercial loans — — 6 6 1 Loans to individuals — — 8 8 2 Total $ — $ — $ 319 $ 319 7 December 31, 2021 Extend Amortization Interest Rate Reductions Combination Total Modifications Number of Loans Real estate loans: 1-4 family residential $ — $ — $ 560 $ 560 7 Commercial — — 450 450 1 Commercial loans — 16 84 100 3 Total $ — $ 16 $ 1,094 $ 1,110 11 December 31, 2020 Extend Amortization Interest Rate Reductions Combination Total Modifications Number of Loans Real estate loans: Commercial $ — $ — $ 58 $ 58 1 Commercial loans 51 — 390 441 6 Loans to individuals — — 22 22 1 Total $ 51 $ — $ 470 $ 521 8 Interest continues to be charged on principal balances outstanding during the extended term. Therefore, the financial effects of the recorded investment of loans restructured as TDRs during the years ended December 31, 2022 and 2021 were not significant. On an ongoing basis, the performance of the TDRs is monitored for subsequent payment default. Payment default for TDRs is recognized when the borrower is 90 days or more past due. For the years ended December 31, 2022 and 2021 the amount of TDRs in default was $492,000 and $321,000, respectively. Payment defaults for TDRs did not significantly impact the determination of the allowance for loan losses in the periods presented. At December 31, 2022, 2021 and 2020, there were no commitments to lend additional funds to borrowers whose terms had been modified in TDRs. Allowance for Loan Losses The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands): Year Ended December 31, 2022 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 3,787 $ 1,866 $ 26,980 $ 2,397 $ 47 $ 196 $ 35,273 Loans charged-off — (69) — (792) — (1,723) (2,584) Recoveries of loans charged-off 2 107 81 593 — 1,105 1,888 Net loans (charged-off) recovered 2 38 81 (199) — (618) (696) Provision for (reversal of) loan losses (625) 269 1,640 37 (2) 619 1,938 Balance at end of period $ 3,164 $ 2,173 $ 28,701 $ 2,235 $ 45 $ 197 $ 36,515 Year Ended December 31, 2021 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 6,490 $ 2,270 $ 35,709 $ 4,107 $ 46 $ 384 $ 49,006 Loans charged-off — (136) — (1,004) — (1,611) (2,751) Recoveries of loans charged-off 2 75 87 674 — 1,142 1,980 Net loans (charged-off) recovered 2 (61) 87 (330) — (469) (771) Provision for (reversal of) loan losses (2,705) (343) (8,816) (1,380) 1 281 (12,962) Balance at end of period $ 3,787 $ 1,866 $ 26,980 $ 2,397 $ 47 $ 196 $ 35,273 Year Ended December 31, 2020 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 3,539 $ 3,833 $ 9,572 $ 6,351 $ 570 $ 932 $ 24,797 Impact of CECL adoption - cumulative effect adjustment 2,968 (1,447) 7,730 (3,532) (522) (125) 5,072 Impact of CECL adoption - purchased loans with credit deterioration (15) (6) 333 (22) — (59) 231 Loans charged-off (40) (152) (33) (823) — (1,806) (2,854) Recoveries of loans charged-off 28 32 102 310 — 1,178 1,650 Net loans (charged-off) recovered (12) (120) 69 (513) — (628) (1,204) Provision for (reversal of) loan losses (1) 10 10 18,005 1,823 (2) 264 20,110 Balance at end of period $ 6,490 $ 2,270 $ 35,709 $ 4,107 $ 46 $ 384 $ 49,006 (1) The increase in the provision for credit losses during 2020 was primarily due to the economic impact of COVID-19 on macroeconomic factors used in the CECL methodology. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment at December 31, 2022 and 2021 are summarized as follows (in thousands): December 31, 2022 2021 Premises $ 185,588 $ 181,289 Furniture and equipment 44,126 42,924 229,714 224,213 Less: Accumulated depreciation 88,458 81,704 Total $ 141,256 $ 142,509 Assets with accumulated depreciation of $1.9 million and $1.8 million were written off for the years ended December 31, 2022 and 2021, respectively. Depreciation expense was $8.6 million, $8.2 million and $8.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Deposits in the accompanying consolidated balance sheets are classified as follows (in thousands): December 31, 2022 December 31, 2021 Noninterest bearing demand deposits: Private accounts $ 1,607,952 $ 1,591,123 Public accounts 63,610 53,652 Total noninterest bearing demand deposits 1,671,562 1,644,775 Interest bearing deposits: Private accounts: Savings accounts 672,676 643,939 Money market demand accounts 424,676 449,977 Platinum money market accounts 421,826 438,781 Interest bearing checking accounts 1,496,784 1,216,189 NOW demand accounts 13,601 18,376 CDs of $250,000 or more 120,387 68,950 CDs under $250,000 532,409 316,028 Total private accounts 3,682,359 3,152,240 Public accounts: Savings accounts 1,949 965 Money market demand accounts 33,871 32,487 Platinum money market accounts 365,720 371,032 Interest bearing checking accounts 89,320 100,581 NOW demand accounts 234,027 240,200 CDs of $250,000 or more 113,810 176,190 CDs under $250,000 5,401 3,857 Total public accounts 844,098 925,312 Total interest bearing deposits 4,526,457 4,077,552 Total deposits $ 6,198,019 $ 5,722,327 For the years ended December 31, 2022, 2021 and 2020, interest expense on CDs of $250,000 or more was $2.1 million, $1.4 million and $7.4 million, respectively. At December 31, 2022, the scheduled maturities of CDs, including public accounts, were as follows (in thousands): 2023 $ 619,652 2024 124,823 2025 20,249 2026 2,791 2027 4,388 2028 and thereafter 104 $ 772,007 Brokered deposits consist of CDs and non-maturity deposits. At December 31, 2022, we had $220.9 million in brokered CDs with a weighted average cost of 359 basis points and remaining maturities of less than five months. These brokered CDs are reflected in the CDs under $250,000 category. Brokered non-maturity deposits were $438.4 million at December 31, 2022 with a weighted average cost of 126 basis points. As of December 31, 2021, we had $24.7 million in brokered CDs and $270.1 million in brokered non-maturity deposits. Our current policy allows for maximum brokered deposits of $1.10 billion in brokered deposits. At December 31, 2022 and 2021, we had approximately $11.0 million and $10.6 million, respectively, in deposits from related parties, including directors and named executive officers. The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $1.2 million and $1.1 million at December 31, 2022 and 2021, respectively. |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | BORROWING ARRANGEMENTS Information related to borrowings is provided in the table below (dollars in thousands): December 31, 2022 December 31, 2021 Other borrowings: Balance at end of period $ 221,153 $ 23,219 Average amount outstanding during the period (1) 77,845 22,257 Maximum amount outstanding during the period (2) 316,563 24,549 Weighted average interest rate during the period (3) 2.4 % 0.2 % Interest rate at end of period (4) 4.1 % 0.2 % FHLB borrowings: Balance at end of period $ 153,358 $ 344,038 Average amount outstanding during the period (1) 135,926 665,384 Maximum amount outstanding during the period (2) 423,645 723,584 Weighted average interest rate during the period (3) 2.4 % 1.1 % Interest rate at end of period (4)(5) 4.7 % 1.3 % (1) The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period. (2) The maximum amount outstanding at any month-end during the period. (3) The weighted average interest rate during the period was computed by dividing the actual interest expense by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps. (4) Stated rate. (5) The interest rate on FHLB borrowings includes the effect of interest rate swaps. Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at December 31, 2022 are as follows (in thousands): Payments Due by Period Less than 1-2 Years 2-3 Years 3-4 Years 4-5 Years Thereafter Total Other borrowings $ 218,203 $ 2,950 $ — $ — $ — $ — $ 221,153 FHLB borrowings 150,709 740 772 485 406 246 153,358 Total obligations $ 368,912 $ 3,690 $ 772 $ 485 $ 406 $ 246 $ 374,511 Other borrowings may include federal funds purchased, repurchase agreements and borrowings from the FRDW. Southside Bank has three unsecured lines of credit for the purchase of overnight federal funds at prevailing rates with Frost Bank, TIB – The Independent Bankers Bank and Comerica Bank for $40.0 million, $15.0 million and $7.5 million, respectively. There were no federal funds purchased at December 31, 2022 or 2021. To provide more liquidity in response to the economic impact of the COVID-19 pandemic, the Federal Reserve took steps to encourage broader use of the discount window. At December 31, 2022, the amount of additional funding the Bank could obtain from the FRDW, collateralized by securities, was approximately $527.6 million. There were $188.0 million in borrowings from the FRDW at December 31, 2022. There were no borrowings from the FRDW at December 31, 2021. Southside Bank has a $5.0 million line of credit with Frost Bank to be used to issue letters of credit, and at December 31, 2022, the line had one outstanding letter of credit for $155,000. Southside Bank currently has no outstanding letters of credit from FHLB held as collateral for its public fund deposits. Southside Bank enters into sales of securities under repurchase agreements. These repurchase agreements totaled $33.2 million at December 31, 2022 and $23.2 million at December 31, 2021, and had maturities of less than two years. Repurchase agreements are secured by investment and MBS securities and are stated at the amount of cash received in connection with the transaction. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Information related to our long-term debt is summarized as follows for the periods presented (in thousands): December 31, 2022 December 31, 2021 Subordinated notes: (1) 3.875% Subordinated notes, net of unamortized debt issuance costs (2) $ 98,674 $ 98,534 Total Subordinated notes 98,674 98,534 Trust preferred subordinated debentures: (3) Southside Statutory Trust III, net of unamortized debt issuance costs (4) 20,573 20,568 Southside Statutory Trust IV 23,196 23,196 Southside Statutory Trust V 12,887 12,887 Magnolia Trust Company I 3,609 3,609 Total Trust preferred subordinated debentures 60,265 60,260 Total Long-term debt $ 158,939 $ 158,794 (1) This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. (2) The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $1.3 million at December 31, 2022 and $1.5 million at December 31, 2021. (3) This debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations. (4) The unamortized debt issuance costs reflected in the carrying amount of the Southside Statutory Trust III junior subordinated debentures totaled $46,000 at December 31, 2022 and $51,000 at December 31, 2021. As of December 31, 2022, the details of the subordinated notes and the trust preferred subordinated debentures are summarized below (dollars in thousands): Date Issued Amount Issued Fixed or Floating Rate Interest Rate Maturity Date 3.875% Subordinated Notes November 6, 2020 $ 100,000 Fixed-to-Floating 3.875% November 15, 2030 Southside Statutory Trust III September 4, 2003 $ 20,619 Floating 3 month LIBOR + 2.94% September 4, 2033 Southside Statutory Trust IV August 8, 2007 $ 23,196 Floating 3 month LIBOR + 1.30% October 30, 2037 Southside Statutory Trust V August 10, 2007 $ 12,887 Floating 3 month LIBOR + 2.25% September 15, 2037 Magnolia Trust Company I (1) May 20, 2005 $ 3,609 Floating 3 month LIBOR + 1.80% November 23, 2035 (1) On October 10, 2007, as part of an acquisition we assumed $3.6 million of floating rate junior subordinated debentures issued in 2005 to Magnolia Trust Company I. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits Including Defined Benefit Plans and Share-based Compensation Plans [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Deferred Compensation Agreements Southside Bank has deferred compensation agreements with 33 of its executive officers, which generally provide for payment of an aggregate amount of $10.4 million over a maximum period of 15 years after retirement or death. Of the 33 executives included in the agreements, payments have commenced to 11 former executives and/or their beneficiaries. Deferred compensation expense was $310,000, $457,000 and $667,000 for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022 and 2021, the deferred compensation plan liability totaled $3.5 million and $3.6 million, respectively. Health Insurance We provide accident and health insurance for substantially all employees through a self-funded insurance program. The cost of health care benefits was $8.4 million, $8.6 million and $7.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Our healthcare plan provides health insurance coverage for any retiree having 50 years of service with the Company. In addition, the eligible retiree must have Medicare coverage, including part A, part B and part D. There was one retiree participating in the health insurance plan as of December 31, 2022, 2021 and 2020. Employee Stock Ownership Plan We have an ESOP which covers substantially all employees. Contributions to the ESOP are at the sole discretion of the board of directors. We contributed $1.0 million to the ESOP for the years ended December 31, 2022, 2021 and 2020. At December 31, 2022 and 2021, the ESOP owned 345,847 and 327,977 shares of common stock, respectively. These shares are treated as externally held shares for dividend and earnings per share calculations. Long-term Disability We have an officer’s long-term disability income policy which provides coverage in the event they become disabled as defined under its terms. Individuals are automatically covered under the policy if they (a) have been elected as an officer, (b) have been an employee of Southside Bank for three years and (c) receive earnings of $50,000 or more on an annual basis. The policy provides, among other things, that should a covered individual become totally disabled he would receive two-thirds of his current salary, not to exceed $15,000 per month. The benefits paid out of the policy are limited by the benefits paid to the individual under the terms of our other Company-sponsored benefit plans. Split Dollar Agreements We originally entered into split dollar agreements with eight of our executive officers. The agreements provide we will be the beneficiary of BOLI insuring the executives’ lives. The agreements provide the executives the right to designate the beneficiaries of the death benefits guaranteed in each agreement. The agreements originally provided for death benefits of an initial aggregate amount of $4.5 million. Prior to an executive’s retirement, their individual amount is increased annually on the anniversary date of the agreement by inflation adjustment factors of either 3% or 5%. As of December 31, 2022, four of the executives remained actively employed with us. Death benefits under this agreement were paid during 2018 for one retired covered officer and during 2013 for one active covered officer. As of December 31, 2022, the estimated death benefits for the seven executives totaled $5.7 million. The agreements also state that after the executive’s retirement, we shall also pay an annual gross-up bonus to the executive in an amount sufficient to enable the executive to pay federal income tax on both the economic benefit and on the gross-up bonus. The expense required to record the post retirement liability associated with the split dollar post retirement bonuses was $27,000, $87,000 and $35,000 for the years ended December 31, 2022, 2021 and 2020, respectively. For the years ended December 31, 2022 and 2021, the split dollar liability totaled $1.9 million. 401(k) Plan We have a 401(k) Plan covering substantially all employees that permits each participant to make before- or after-tax contributions subject to certain limits imposed by the Internal Revenue Code. Beginning January 1, 2017, eligible employees may participate in the 401(k) Plan after they have worked at least 30 days with the Company. For the years ended December 31, 2022, 2021 and 2020, expense attributable to the 401(k) Plan totaled $2.0 million, $2.2 million and $1.9 million, respectively. Retirement Plans We have a defined benefit pension plan pursuant to which participants are entitled to benefits based on final average monthly compensation and years of credited service determined in accordance with plan provisions. We have a nonfunded supplemental retirement plan for our employees whose benefits under the principal retirement plan are reduced because of compensation deferral elections or limitations under federal tax laws. Entrance into the Retirement Plan by new employees was frozen effective December 31, 2005. Employees hired after December 31, 2005 are not eligible to participate in the Retirement Plan. All remaining participants in the Retirement Plan are fully vested. Benefits are payable monthly commencing on the later of age 65 or the participant’s date of retirement. Eligible participants may retire at reduced benefit levels after reaching age 55. We contribute amounts to the pension fund sufficient to satisfy funding requirements of the Employee Retirement Income Security Act. On June 18, 2020, our Board of Directors approved changes to the Retirement Plan and Restoration Plan to freeze all future benefit accruals and accrual of benefit service, including consideration of compensation increases, effective December 31, 2020. As a result of these changes, the Retirement Plan liability was remeasured as of June 30, 2020. We recognized the Plan freeze as a curtailment since it eliminates the accrual of defined benefits for future services for participants. The impact of the curtailment included a one-time accelerated recognition of outstanding unamortized prior service costs of $163,000 and a decrease to accumulated other comprehensive income, included in shareholders’ equity, of approximately $6.0 million due primarily to the decrease in the discount rate from 3.41% to 2.78%. Retirement Plan assets included 240,666 shares of our stock at December 31, 2022 and December 31, 2021. Our stock included in the Retirement Plan assets was purchased at fair value. During 2022, our funded status improved, and at December 31, 2022, we had a funded status of $6.9 million compared to a funded status of $3.3 million at December 31, 2021. The improvement in the funded status was a result of an increase in the discount rate to better reflect the current market conditions at December 31, 2022 compared to December 31, 2021, partially offset by a less than expected return on the fair value of plan assets since December 31, 2021. In connection with the acquisition of Omni, we acquired the OmniAmerican Bank Defined Benefit Plan which was remeasured at fair value. The Acquired Retirement Plan originally called for benefits to be paid to eligible employees at retirement based primarily upon years of service and the compensation levels at retirement. As of December 31, 2006, the benefits under the Acquired Retirement Plan were frozen by Omni. No further benefits have been or will be earned by employees since that date. In addition, no new participants may be added to the Acquired Retirement Plan after December 31, 2006. During 2022, our funded status improved and at December 31, 2022, we had a funded status of $749,000 compared to a funded status of $388,000 at December 31, 2021. The improvement in the funded status was a result of an increase in the discount rate to better reflect the current market conditions at December 31, 2022 compared to December 31, 2021, partially offset by a less than expected return on the fair value of plan assets since December 31, 2021. We use a measurement date of December 31 for our plans. Activity in our defined benefit pension plans and restoration plan were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration (in thousands) Change in Projected Benefit Obligation: Benefit obligation at end of prior year $ 94,170 $ 3,483 $ 19,321 $ 96,848 $ 3,704 $ 18,789 $ 100,012 $ 4,870 $ 19,098 Service cost — — — — — — 1,793 — 429 Interest cost 2,741 102 578 2,570 92 520 3,031 162 568 Actuarial (gain) loss (22,997) (1,076) (3,763) (1,381) (155) 684 11,892 437 1,344 Benefits paid (3,950) (60) (673) (3,734) (59) (672) (6,596) (51) (688) Expenses paid (95) (70) — (133) (99) — (202) (113) — Curtailments — — — — — — (13,082) — (1,962) Settlements — — — — — — — (1,601) — Benefit obligation at end of year 69,869 2,379 15,463 94,170 3,483 19,321 96,848 3,704 18,789 Change in Plan Assets: Fair value of plan assets at end of prior year 97,439 3,871 — 90,419 3,613 — 93,818 4,763 — Actual return (16,659) (613) — 10,887 416 — 3,399 615 — Employer contributions — — 673 — — 672 — — 688 Benefits paid (3,950) (60) (673) (3,734) (59) (672) (6,596) (51) (688) Expenses paid (95) (70) — (133) (99) — (202) (113) — Settlements — — — — — — — (1,601) — Fair value of plan assets at end of year 76,735 3,128 — 97,439 3,871 — 90,419 3,613 — (Un)Funded status at end of year 6,866 749 (15,463) 3,269 388 (19,321) (6,429) (91) (18,789) Accrued benefit (liability) asset recognized $ 6,866 $ 749 $ (15,463) $ 3,269 $ 388 $ (19,321) $ (6,429) $ (91) $ (18,789) Accumulated benefit obligation at end of year $ 69,869 $ 2,379 $ 15,463 $ 94,170 $ 3,483 $ 19,321 $ 96,848 $ 3,704 $ 18,789 Amounts related to our defined benefit pension plans and restoration plan recognized as a component of other comprehensive income (loss) were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Recognition of net loss $ 640 $ — $ 255 $ 1,002 $ 6 $ 256 $ 2,474 $ 10 $ 551 Recognition of prior service (credit) cost — — — — — — (14) — 7 Recognition of loss due to settlement — — — — — — — 215 — Net gain (loss) occurring during the year 493 231 3,763 6,848 361 (685) (1,086) (124) 617 Net prior service cost occurring during the year — — — — — — 151 — 12 1,133 231 4,018 7,850 367 (429) 1,525 101 1,187 Deferred tax (expense) benefit (238) (48) (844) (1,648) (77) 90 (320) (21) (249) Other comprehensive income (loss), net of tax $ 895 $ 183 $ 3,174 $ 6,202 $ 290 $ (339) $ 1,205 $ 80 $ 938 The noncash adjustment to the employee benefit plan assets and/or liabilities, consisting of changes in prior service cost and net loss, was $5.4 million and $7.8 million for the years ended December 31, 2022 and 2021, respectively. Net amounts recognized in net periodic benefit cost and other comprehensive income (loss) were as follows (in thousands): December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Net loss $ 640 $ — $ 255 $ 1,002 $ 6 $ 256 Deferred tax expense (134) — (54) (211) — (54) Accumulated other comprehensive income (loss), net of tax $ 506 $ — $ 201 $ 791 $ 6 $ 202 Amounts recognized as a component of accumulated other comprehensive income (loss) were as follows (in thousands): December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Net gain (loss) $ (22,800) $ 100 $ (1,986) $ (23,933) $ (131) $ (6,004) Deferred tax (expense) benefit 4,788 (21) 417 5,026 27 1,261 Accumulated other comprehensive income (loss), net of tax $ (18,012) $ 79 $ (1,569) $ (18,907) $ (104) $ (4,743) Net periodic pension cost and postretirement benefit cost included the following components (in thousands): Years Ended December 31, 2022 2021 2020 Retirement Plan: Service cost $ — $ — $ 1,793 Interest cost 2,741 2,570 3,031 Expected return on assets (5,845) (5,420) (5,676) Net loss amortization 640 1,002 2,474 Prior service credit amortization — — (14) Loss due to curtailment — — 151 Net periodic benefit cost (income) $ (2,464) $ (1,848) $ 1,759 Acquired Retirement Plan: Service cost $ — $ — $ — Interest cost 102 92 162 Expected return on assets (232) (211) (301) Net loss amortization — 6 10 Prior service credit amortization — — — Loss recognized due to settlement — — 215 Net periodic benefit cost (income) $ (130) $ (113) $ 86 Restoration Plan: Service cost $ — $ — $ 429 Interest cost 578 520 568 Net loss amortization 255 256 551 Prior service cost amortization — — 7 Loss due to curtailment — — 12 Net periodic benefit cost $ 833 $ 776 $ 1,567 The Retirement Plan and Acquired Retirement Plan assets, which consist primarily of marketable equity and debt instruments, are valued using market quotations in active markets for identical assets, market quotations for similar assets in active or non-active markets or the net asset value provided by the plan administrator. The Retirement Plans’ obligations and the annual pension expense are determined by independent actuaries and through the use of a number of assumptions. Key assumptions in measuring the Retirement Plans’ obligations include the discount rate and the estimated future return on plan assets. In determining the discount rate, we utilized a cash flow matching analysis to determine a range of appropriate discount rates for the defined benefit pension plans and restoration plan. In developing the cash flow matching analysis, we had our actuaries construct a portfolio of high quality noncallable bonds to match as closely as possible the timing of future benefit payments of the Retirement Plans at December 31, 2022. We utilized a bond selection-settlement approach that selects a portfolio of bonds from a universe of high quality corporate bonds rated AA by at least half of the rating agencies available. Based on the results of this cash flow matching analysis, we were able to determine an appropriate discount rate. The expected long-term rate of return assumption reflects the average return expected based on the investment strategies and asset allocation of the assets invested to provide for the Retirement Plans’ liabilities. We considered broad equity and bond indices, long-term return projections and actual long-term historical Plan performance when evaluating the expected long-term rate of return assumption. The assumptions used to determine the benefit obligation were as follows: December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Discount rate 5.46 % 5.46 % 5.46 % 2.95 % 2.95 % 2.95 % The assumptions used to determine net periodic pension cost and postretirement benefit cost were as follows: Years Ended December 31, 2022 2021 2020 Retirement Plan: Discount rate 2.95 % 2.65 % 2.78 % Expected long-term rate of return on plan assets 6.13 % 6.13 % 6.50 % Compensation increase rate — — 3.50 % Acquired Retirement Plan: Discount rate 2.95 % 2.65 % 3.41 % Expected long-term rate of return on plan assets 6.13 % 6.13 % 6.50 % Compensation increase rate — — — Restoration Plan: Discount rate 2.95 % 2.65 % 2.78 % Compensation increase rate — — 3.50 % In connection with the remeasurement of the Retirement Plan and the Restoration Plan at June 30, 2020, we updated our discount rate from 3.41% to 2.78%. During the three months ended June 30, 2021, we updated our expected long-term rate of return on plan assets for the Retirement Plan and the Acquired Retirement Plan from 6.50% to 6.125%. During the three months ended June 30, 2020, we updated our expected long-term rate of return on plan assets for the Retirement Plan and the Acquired Retirement Plan from 7.25% to 6.50%. Material changes in pension benefit costs may occur in the future due to changes in these assumptions. Future annual amounts could be impacted by changes in the number of Plan participants, changes in the level of benefits provided, changes in the discount rates, changes in the expected long-term rate of return, changes in the level of contributions to the Retirement Plan and other factors. The major categories of assets in the Plan and the Acquired Retirement Plan are presented in the following table (in thousands). Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see “Note 12 – Fair Value Measurement”). Our Restoration Plan is unfunded. December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Retirement Acquired Retirement Plan Level 1: Cash $ 605 $ — $ 3,495 $ — Equity securities: U.S. large cap (1) 23,032 1,103 27,692 1,351 U.S. mid cap (2) 3,594 135 7,556 151 U.S. small cap (3) 12,447 66 15,004 70 International developed (4) 8,161 — 9,768 — International emerging (2) 1,841 — 2,322 — International (5) — 547 — 775 Fixed income securities: Corporate bonds (6) — 1,027 — 1,277 U.S. government treasuries (6) 233 — 262 — Real estate (7) — 250 — 247 Level 2: Cash Equivalents 8,543 — 9,949 — Fixed income securities: Corporate bonds (6) 1,979 — 2,254 — U.S. government agencies (6) 4,380 — 5,437 — Municipal bonds (6) 11,774 — 13,508 — U.S. agency MBS (8) 146 — 192 — Total fair value of plan assets $ 76,735 $ 3,128 $ 97,439 $ 3,871 (1) For the Retirement Plan, this category is comprised of broadly diversified “passive” and “active” mutual funds. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks. (2) For the Retirement Plan, this category is comprised of broadly diversified “active” mutual funds. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds. (3) For the Retirement Plan, this category is comprised of broadly diversified “passive” and “active” mutual funds and shares of Southside Bancshares stock. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds. (4) This category is comprised of a broadly diversified “passive” and “active” mutual funds. (5) This category is comprised of pooled separate accounts invested in mutual funds and international stocks. (6) For the Retirement Plan, this category is comprised of individual investment grade securities that are generally HTM. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds, bonds and fixed income securities. (7) This category is comprised of a pooled separate account invested in commercial real estate and includes mortgage loans which are backed by the associated properties. (8) This category is comprised of individual securities that are generally not HTM. We did not have any plan assets with Level 3 input fair value measurements at December 31, 2022 or 2021. Our overall investment strategy is to realize long-term growth of the Retirement Plan within acceptable risk parameters, while funding benefit payments from dividend and interest income, to the extent possible. The target allocations for plan assets are 64.0% equities, 35.0% fixed income and 1.0% cash equivalents. Equity securities are diversified among U.S. and international (both developed and emerging), large, mid and small caps, value and growth securities and REITs. The investment objective of equity funds is long-term capital appreciation with current income. Fixed income securities include government agencies, CDs, corporate bonds, municipal bonds and MBS. The investment objective of fixed income funds is to maximize investment return while preserving investment principal. Mutual funds are primarily used for equity and REITs because of the superior diversification they provide. As of December 31, 2022, expected future benefit payments related to the Retirement Plan, the Acquired Retirement Plan and the Restoration Plan were as follows (in thousands): Retirement Plan Acquired Retirement Plan Restoration 2023 $ 4,262 $ 79 $ 731 2024 4,459 84 749 2025 4,623 91 859 2026 4,883 91 1,161 2027 5,028 126 1,384 2028 through 2032 25,729 816 7,010 $ 48,984 $ 1,287 $ 11,894 We expect to contribute $731,000 to our Restoration Plan in 2023. We do not expect to make additional contributions to the Retirement Plan or the Acquired Retirement Plan in 2023. Share-based Incentive Plans 2017 Incentive Plan On May 10, 2017, our shareholders approved the 2017 Incentive Plan, which is a stock-based incentive compensation plan. A total of 2,460,000 shares of our common stock were reserved and available for issuance pursuant to awards granted under the 2017 Incentive Plan. This amount includes a number of additional shares (not to exceed 410,000) underlying awards outstanding as of May 10, 2017 under the Company’s 2009 Incentive Plan that thereafter terminate or expire unexercised, or are cancelled, forfeited or lapse for any reason. Under the 2017 Incentive Plan, we are authorized to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and qualified performance-based awards or any combination thereof to selected employees, officers, directors and consultants of the Company and its affiliates. As of December 31, 2022, there were 1,097,158 shares remaining available for grant for future awards. All share data has been adjusted to give retroactive recognition to stock dividends, where applicable. Reference to incentive plans refers to the 2017 Incentive Plan and predecessor incentive plans. As of December 31, 2022, 2021 and 2020, there were 277,600, 368,447 and 492,274 unvested awards outstanding, respectively. For the years ended December 31, 2022, 2021 and 2020, there was $2.9 million, $2.7 million and $2.8 million of share-based compensation expense for employees related to the incentive plans, respectively, and $605,000, $570,000 and $593,000 of income tax benefit related to the stock compensation expense, respectively. Director stock compensation expense was $342,000, $306,000, and $196,000 for the years ended December 31, 2022, 2021 and 2020 respectively, and $72,000, $64,000 and $41,000 of income tax benefit related to the director stock compensation expense, respectively. As of December 31, 2022, 2021 and 2020, there was $7.4 million, $6.2 million and $5.4 million of unrecognized compensation cost related to the incentive plans, respectively. The remaining cost at December 31, 2022 is expected to be recognized over a weighted-average period of 2.7 years. The fair value of each NQSO is estimated on the date of grant using a Black-Scholes option pricing model. There were no NQSO grants during the years ended December 31, 2022, 2021 or 2020. The NQSOs have contractual terms of 10 years and vest in equal annual installments over either a three The fair value of each RSU is the ending stock price on the date of grant. RSUs granted to employees vest in equal annual installments over a period of between three The fair value of each PSU is the ending stock price on the date of grant. PSUs granted to executive officers will cliff vest on the third anniversary of the grant date, subject to the grantee’s continued service on such date, and will be earned based on the Company’s ROATCE related to ROATCE of the KBW Nasdaq Regional Bank Index (NASDAQ: KRX), over a 3 year performance period. The PSUs may be earned between a minimum payout of 50%, based on a ROATCE performance threshold of 25th percentile of the Peer Group, a target payout of 100%, based on a ROATCE performance threshold of 50th percentile, and a maximum payout of 150%, based on a performance threshold of 75th percentile or greater. Share payout for performance between the minimum threshold, target and maximum is calculated on a straight line basis, and performance below the minimum threshold results in no share payout. Each award is evidenced by an award agreement that specifies the option price, if applicable, the duration of the award, the number of shares to which the award pertains and such other provisions as the board of directors determines. Historically, shares issued in connection with stock compensation awards have been issued from available authorized shares. Beginning in the second quarter of 2017, shares were issued from available treasury shares. Shares issued in connection with stock compensation awards along with other related information are presented in the following table (in thousands, except share amounts): Years Ended December 31, 2022 2021 2020 New shares issued from available treasury shares 86,500 305,212 116,661 Proceeds from stock option exercises $ 790 $ 7,672 $ 1,692 Intrinsic value of stock options exercised $ 421 $ 3,005 $ 881 A combined summary of activity in our share-based plans as of December 31, 2022 is presented below: Restricted Stock Units Stock Options Service Based Performance Based Number Weighted- Number Weighted- Number Weighted- Weighted- Balance, January 1, 2022 177,015 $ 36.95 — $ — 713,767 $ 33.20 $ 6.45 Granted 122,039 36.21 8,343 41.74 — — — Stock options exercised — — — — (33,486) 27.94 5.96 Stock awards vested (65,092) 36.57 — — — — — Forfeited (7,368) 38.54 — — (7,270) 34.79 5.99 Canceled/expired — — — — — — — Balance, December 31, 2022 226,594 $ 36.61 8,343 $ 41.74 673,011 $ 33.45 $ 6.49 Other information regarding options outstanding and exercisable as of December 31, 2022 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted- Weighted- Number Weighted- $ 22.88 - $ 25.00 26,299 $ 23.06 1.19 26,299 $ 23.06 25.01 - 30.00 89,544 26.60 2.49 89,544 26.60 30.01 - 35.00 480,124 34.67 6.05 428,480 34.66 35.01 - 37.28 77,044 37.28 3.86 77,044 37.28 Total 673,011 $ 33.45 5.13 621,367 $ 33.33 The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $1.8 million for both at December 31, 2022. The weighted-average remaining contractual life of options exercisable at December 31, 2022 was 5.0 years. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES DISCLOSURE | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Our hedging policy allows the use of interest rate derivative instruments to manage our exposure to interest rate risk or hedge specified assets and liabilities. These instruments may include interest rate swaps and interest rate caps and floors. All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate. Derivative instruments may be designated as cash flow hedges of variable rate assets or liabilities, cash flow hedges of forecasted transactions, fair value hedges of a recognized asset or liability or as non-hedging instruments. Gains and losses on derivative instruments designated as cash flow hedges are recorded in AOCI to the extent they are effective. If the hedge is effective, the amount recorded in other comprehensive income is reclassified to earnings in the same periods that the hedged cash flows impact earnings. The ineffective portion of changes in fair value is reported in current earnings. Gains and losses on derivative instruments designated as fair value hedges, as well as the change in fair value on the hedged item, are recorded in interest income in the consolidated statements of income. Gains and losses due to changes in fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the hedged item. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. We have entered into certain interest rate swap contracts on specific variable rate agreements and fixed rate short-term pay agreements with third-parties. These interest rate swap contracts were designated as hedging instruments in cash flow hedges under ASC Topic 815. The objective of the interest rate swap contracts is to manage the expected future cash flows on $575.0 million of Bank liabilities. The cash flows from the swap contracts are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the underlying LIBOR interest rate. During the year ended December 31, 2022, we entered into partial term fair value hedges, as allowed under ASU 2017-12, for certain of our fixed rate callable AFS municipal securities. The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate. As of December 31, 2022, hedged securities with a carrying amount of $743.9 million are included in our AFS securities portfolio in our consolidated balance sheets. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for us making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The change in the fair value of these hedging instruments is recorded in AOCI and is subsequently reclassified into earnings in the period that the hedged transactions affects earnings. In accordance with ASC Topic 815, if a hedging item is terminated prior to maturity for a cash settlement, the existing gain or loss within AOCI will continue to be reclassified into earnings during the period or periods in which the hedged forecasted transaction affects earnings unless it is probable the forecasted transaction will not occur by the end of the originally specified time period. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation, it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. From time to time, we may enter into certain interest rate swaps, cap and floor contracts that are not designated as hedging instruments. These interest rate derivative contracts relate to transactions in which we enter into an interest rate swap, cap or floor with a customer while concurrently entering into an offsetting interest rate swap, cap or floor with a third-party financial institution. We agree to pay interest to the customer on a notional amount at a variable rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These interest rate derivative contracts allow our customers to effectively convert a variable rate loan to a fixed rate loan. The changes in the fair value of the underlying derivative contracts primarily offset each other and do not significantly impact our results of operations. We recognized swap fee income associated with these derivative contracts immediately based upon the difference in the bid/ask spread of the underlying transactions with the customer and the third-party financial institution. The swap fee income is included in other noninterest income in our consolidated statements of income. At December 31, 2022, net derivative asset included $82.1 million of cash collateral received from counterparties under master netting agreements. At December 31, 2021, net derivative liabilities included $12.8 million of cash collateral held by counterparties subject to master netting agreements. The notional amounts of the derivative instruments represent the contractual cash flows pertaining to the underlying agreements. These amounts are not exchanged and are not reflected in the consolidated balance sheets. The fair value of the interest rate swaps are presented at net in other assets and other liabilities and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands): December 31, 2022 December 31, 2021 Estimated Fair Value Estimated Fair Value Notional Amount (1) Asset Derivative Liability Derivative Notional (1) Asset Derivative Liability Derivative Derivatives designated as hedging instruments Interest rate contracts: Swaps-Cash Flow Hedge-Financial institution counterparties $ 575,000 $ 39,527 $ — $ 605,000 $ 4,274 $ 5,866 Swaps-Fair Value Hedge-Financial institution counterparties 742,675 21,733 171 — — — Derivatives designated as non-hedging instruments Interest rate contracts: Swaps-Financial institution counterparties 223,124 21,046 — 214,379 545 13,412 Swaps-Customer counterparties 223,124 — 21,046 214,379 13,412 545 Gross derivatives 82,306 21,217 18,231 19,823 Offsetting derivative assets/liabilities (171) (171) (4,819) (4,819) Cash collateral received/posted (82,135) — — (12,810) Net derivatives included in the consolidated balance sheets (2) $ — $ 21,046 $ 13,412 $ 2,194 (1) Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. (2) Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At December 31, 2022, we had no credit exposure related to interest rate swaps with financial institutions and none related to interest rate swaps with customers. At December 31, 2021, we had no credit exposure related to interest rate swaps with financial institutions and $13.4 million related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged. The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on fixed pay swaps are based on one-month or three-month LIBOR or overnight SOFR rates in effect at December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Weighted Average Weighted Average Notional Amount Remaining Maturity Receive Rate Pay Rate Notional Amount Remaining Maturity Receive Rate Pay Swaps-Cash Flow hedge Financial institution counterparties $ 575,000 2.3 4.44 % 1.13 % $ 605,000 3.2 0.13 % 1.10 % Swaps-Fair Value hedge Financial institution counterparties 742,675 6.3 3.42 % 3.21 % — — — — Swaps-Non-hedging Financial institution counterparties 223,124 9.0 4.83 % 2.69 % 214,379 10.3 0.47 % 2.42 % Customer counterparties 223,124 9.0 2.69 % 4.83 % 214,379 10.3 2.42 % 0.47 % |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants. A fair value measurement assumes the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Valuation techniques including the market approach, the income approach and/or the cost approach are utilized to determine fair value. Inputs to valuation techniques refer to the assumptions market participants would use in pricing the asset or liability. Valuation policies and procedures are determined by our investment department and reported to our ALCO for review. An entity must consider all aspects of nonperforming risk, including the entity’s own credit standing, when measuring fair value of a liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A fair value hierarchy for valuation inputs gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Certain financial assets are measured at fair value in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of fair value accounting or write-downs of individual assets. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Securities AFS and Equity Investments with readily determinable fair values – U.S. Treasury securities and equity investments with readily determinable fair values are reported at fair value utilizing Level 1 inputs. Other securities classified as AFS are reported at fair value utilizing Level 2 inputs. For most of these securities, we obtain fair value measurements from independent pricing services and obtain an understanding of the pricing methodologies used by these independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things, as stated in the pricing methodologies of the independent pricing services. We review and validate the prices supplied by the independent pricing services for reasonableness by comparison to prices obtained from, in some cases, two additional third-party sources. For securities where prices are outside a reasonable range, we further review those securities, based on internal ALCO approved procedures, to determine what a reasonable fair value measurement is for those securities, given available data. Derivatives – Derivatives are reported at fair value utilizing Level 2 inputs. We obtain fair value measurements from two sources including an independent pricing service and the counterparty to the derivatives designated as hedges. The fair value measurements consider observable data that may include dealer quotes, market spreads, the U.S. Treasury yield curve, live trading levels, trade execution data, credit information and the derivatives’ terms and conditions, among other things. We review the prices supplied by the sources for reasonableness. In addition, we obtain a basic understanding of their underlying pricing methodology. We validate prices supplied by the sources by comparison to one another. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a recurring basis include reporting units measured at fair value and tested for goodwill impairment. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, which means that the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a nonrecurring basis included foreclosed assets and collateral-dependent loans at December 31, 2022 and 2021. Foreclosed Assets – Foreclosed assets are initially recorded at fair value less costs to sell. The fair value measurements of foreclosed assets can include Level 2 measurement inputs such as real estate appraisals and comparable real estate sales information, in conjunction with Level 3 measurement inputs such as cash flow projections, qualitative adjustments and sales cost estimates. As a result, the categorization of foreclosed assets is Level 3 of the fair value hierarchy. In connection with the measurement and initial recognition of certain foreclosed assets, we may recognize charge-offs through the allowance for credit losses. Collateral-Dependent Loans – Certain loans may be reported at the fair value of the underlying collateral if repayment is expected substantially from the operation or sale of the collateral. Collateral values are estimated using Level 3 inputs based on customized discounting criteria or appraisals. At December 31, 2022 and 2021, the impact of the fair value of collateral-dependent loans was reflected in our allowance for loan losses. The fair value estimate of financial instruments for which quoted market prices are unavailable is dependent upon the assumptions used. Consequently, those estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented in the fair value tables do not necessarily represent their underlying value. The following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): December 31, 2022 Fair Value Measurements at the End of the Reporting Period Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring fair value measurements Investment securities: State and political subdivisions $ 964,852 $ — $ 964,852 $ — Corporate bonds and other 8,704 — 8,704 — MBS: (1) Residential 315,027 — 315,027 — Commercial 10,431 — 10,431 — Equity investments: Equity investments 5,235 5,235 — — Derivative assets: Interest rate swaps 82,306 — 82,306 — Total asset recurring fair value measurements $ 1,386,555 $ 5,235 $ 1,381,320 $ — Derivative liabilities: Interest rate swaps $ 21,217 $ — $ 21,217 $ — Total liability recurring fair value measurements $ 21,217 $ — $ 21,217 $ — Nonrecurring fair value measurements Foreclosed assets $ 167 $ — $ — $ 167 Collateral-dependent loans (2) 7,815 — — 7,815 Total asset nonrecurring fair value measurements $ 7,982 $ — $ — $ 7,982 December 31, 2021 Fair Value Measurements at the End of the Reporting Period Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring fair value measurements Investment securities: U.S. Treasury $ 58,877 $ 58,877 $ — $ — State and political subdivisions 2,051,936 — 2,051,936 — Corporate bonds and other 135,532 — 135,532 — MBS: (1) Residential 426,350 — 426,350 — Commercial 91,630 — 91,630 — Equity investments: Equity investments 5,920 5,920 — — Derivative assets: Interest rate swaps 18,231 — 18,231 — Total asset recurring fair value measurements $ 2,788,476 $ 64,797 $ 2,723,679 $ — Derivative liabilities: Interest rate swaps $ 19,823 $ — $ 19,823 $ — Total liability recurring fair value measurements $ 19,823 $ — $ 19,823 $ — Nonrecurring fair value measurements Collateral-dependent loans (2) $ 8,458 $ — $ — $ 8,458 Total asset nonrecurring fair value measurements $ 8,458 $ — $ — $ 8,458 (1) All MBS are issued and/or guaranteed by U.S. government agencies or U.S. GSEs. (2) Consists of individually evaluated loans. Loans for which the fair value of the collateral and commercial real estate fair value of the properties is less than cost basis are presented net of allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses. Disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, is required when it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Such techniques and assumptions, as they apply to individual categories of our financial instruments, are as follows: Cash and cash equivalents – The carrying amount for cash and cash equivalents is a reasonable estimate of those assets’ fair value. Investment and MBS HTM – Fair values for these securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. FHLB stock – The carrying amount of FHLB stock is a reasonable estimate of the fair value of those assets. Equity investments – The carrying value of equity investments without readily determinable fair values are measured at cost less impairment, if any, adjusted for observable price changes for an identical or similar investment of the same issuer. This carrying value is a reasonable estimate of the fair value of those assets. Loans receivable – We estimate the fair value of our loan portfolio to an exit price notion with adjustments for liquidity, credit and prepayment factors. Nonperforming loans continue to be estimated using discounted cash flow analyses or the underlying value of the collateral where applicable. Loans held for sale – The fair value of loans held for sale is determined based on expected proceeds, which are based on sales contracts and commitments. Deposit liabilities – The fair value of demand deposits, savings accounts and certain money market deposits is the amount on demand at the reporting date, which is the carrying value. Fair values for fixed rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities. Other borrowings – Federal funds purchased generally have original terms to maturity of one day and repurchase agreements generally have terms of less than one year, and therefore both are considered short-term borrowings. Consequently, their carrying value is a reasonable estimate of fair value. FHLB borrowings – The fair value of these borrowings is estimated by discounting the future cash flows using rates at which borrowings would be made to borrowers with similar credit ratings and for the same remaining maturities. Subordinated notes – The fair value of the subordinated notes is estimated by discounting future cash flows using estimated rates at which long-term debt would be made to borrowers with similar credit ratings and for the remaining maturities. Trust preferred subordinated debentures – The fair value of the long-term debt is estimated by discounting future cash flows using estimated rates at which long-term debt would be made to borrowers with similar credit ratings and for the remaining maturities. The following tables present our financial assets and financial liabilities measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands): Estimated Fair Value December 31, 2022 Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 199,252 $ 199,252 $ 199,252 $ — $ — Investment securities: HTM, at carrying value 1,190,108 1,023,376 — 1,023,376 — MBS: HTM, at carrying value 136,621 125,780 — 125,780 — FHLB stock, at cost 9,190 9,190 — 9,190 — Equity investments 5,946 5,946 — 5,946 — Loans, net of allowance for loan losses 4,111,176 3,880,664 — — 3,880,664 Loans held for sale 667 667 — 667 — Financial Liabilities: Deposits $ 6,198,019 $ 6,158,517 $ — $ 6,158,517 $ — Other borrowings 221,153 221,153 — 221,153 — FHLB borrowings 153,358 140,976 — 140,976 — Subordinated notes, net of unamortized debt issuance costs 98,674 91,357 — 91,357 — Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,265 60,594 — 60,594 — Estimated Fair Value December 31, 2021 Carrying Total Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 201,753 $ 201,753 $ 201,753 $ — $ — Investment securities: HTM, at carrying value 788 791 — 791 — MBS: HTM, at carrying value 89,992 94,444 — 94,444 — FHLB stock, at cost 14,375 14,375 — 14,375 — Equity investments 5,921 5,921 — 5,921 — Loans, net of allowance for loan losses 3,609,889 3,748,116 — — 3,748,116 Loans held for sale 1,684 1,684 — 1,684 — Financial liabilities: Deposits $ 5,722,327 $ 5,721,694 $ — $ 5,721,694 $ — Other borrowings 23,219 23,219 — 23,219 — FHLB borrowings 344,038 346,604 — 346,604 — Subordinated notes, net of unamortized debt issuance costs 98,534 98,642 — 98,642 — Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,260 48,480 — 48,480 — |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Cash dividends declared and paid were $1.40, $1.37 and $1.30 per share for the years ended December 31, 2022, 2021 and 2020, respectively. Future dividends will depend on our earnings, financial condition and other factors which the board of directors considers to be relevant. Our dividend policy requires that any cash dividend payments made may not exceed consolidated earnings for that year. We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and Total Capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 Capital (as defined) to average assets (as defined). At December 31, 2022, we exceeded all regulatory minimum capital requirements. As of December 31, 2022, the most recent notification from the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized we must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the following table (dollars in thousands). There are no conditions or events since that notification that management believes have changed our category. Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Common Equity Tier 1 (to Risk Weighted Assets) Consolidated $ 687,686 12.63 % $ 245,107 4.50 % N/A N/A Bank Only $ 823,323 15.12 % $ 245,085 4.50 % $ 354,012 6.50 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 746,140 13.70 % $ 326,809 6.00 % N/A N/A Bank Only $ 823,323 15.12 % $ 326,780 6.00 % $ 435,707 8.00 % Total Capital (to Risk Weighted Assets) Consolidated $ 877,281 16.11 % $ 435,746 8.00 % N/A N/A Bank Only $ 855,790 15.71 % $ 435,707 8.00 % $ 544,633 10.00 % Tier 1 Capital (to Average Assets) (1) Consolidated $ 746,140 9.96 % $ 299,511 4.00 % N/A N/A Bank Only $ 823,323 11.00 % $ 299,410 4.00 % $ 374,263 5.00 % December 31, 2021 Common Equity Tier 1 (to Risk Weighted Assets) Consolidated $ 657,043 14.17 % $ 208,616 4.50 % N/A N/A Bank Only $ 793,271 17.11 % $ 208,576 4.50 % $ 301,277 6.50 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 715,492 15.43 % $ 278,155 6.00 % N/A N/A Bank Only $ 793,271 17.11 % $ 278,102 6.00 % $ 370,803 8.00 % Total Capital (to Risk Weighted Assets) Consolidated $ 841,300 18.15 % $ 370,874 8.00 % N/A N/A Bank Only $ 820,545 17.70 % $ 370,803 8.00 % $ 463,503 10.00 % Tier 1 Capital (to Average Assets) (1) Consolidated $ 715,492 10.33 % $ 277,065 4.00 % N/A N/A Bank Only $ 793,271 11.46 % $ 276,932 4.00 % $ 346,165 5.00 % (1) Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies. Our payment of dividends is limited under regulation. The amount that can be paid in any calendar year without prior approval of our regulatory agencies cannot exceed the lesser of net profits (as defined) for that year plus the net profits for the preceding two calendar years or retained earnings. |
DIVIDEND REINVESTMENT AND COMMO
DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN | 12 Months Ended |
Dec. 31, 2022 | |
Dividend Reinvestment and Common Stock Repurchase Plan [Abstract] | |
DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN | DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN We have in effect a DRIP which allows enrolled shareholders to reinvest dividends paid to them by the Company into new shares of our stock. The DRIP is funded by stock authorized but not yet issued. For the year ended December 31, 2022, 31,853 shares were issued under this plan at an average price per share of $38.70, reflective of other trades at the time of each sale. For the years ended December 31, 2021 and December 31, 2020, 34,150 and 47,157 shares, respectively, were issued under this plan at an average price per share of $39.64 and $30.21, respectively, reflective of other trades at the time of each sale. We repurchased 923,775 shares of our common stock at a cost of $33.8 million during the year ended December 31, 2022, 938,484 shares of common stock at a cost of $34.1 million during the year ended December 31, 2021, and 1,035,901 shares of common stock at a cost of $31.0 million during the year ended December 31, 2020. Repurchased shares are designated as treasury shares and are available for general corporate purposes, which may include possible use in connection with our share-based incentive plans and other distributions. Our board of directors continually evaluates the Company's capital needs and those of the Bank and may, at its discretion, initiate, modify or discontinue an authorized repurchase plan without notice. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax expense included in the accompanying consolidated statements of income consists of the following (in thousands): Years Ended December 31, 2022 2021 2020 Current income tax expense $ 14,700 $ 12,674 $ 15,766 Deferred income tax expense (benefit) (89) 4,752 (4,430) Income tax expense $ 14,611 $ 17,426 $ 11,336 The components of the net deferred tax asset/liability as of December 31, 2022 and 2021 are summarized below (in thousands): Assets Liabilities Allowance for loan losses $ 7,668 $ Retirement and other benefit plans 2,435 Premises and equipment 9,269 Operating lease liabilities 3,585 Operating lease ROU assets 3,216 Core deposit intangible 548 Unrealized losses on securities AFS 44,299 Effective hedging derivatives 12,829 Fair value adjustment on loans 500 Unfunded status of defined benefit plan 5,184 State business tax credit 242 Stock-based compensation 1,177 Other 337 Gross deferred tax assets/liabilities 62,992 28,297 Net deferred tax asset at December 31, 2022 $ 34,695 Allowance for loan losses $ 7,407 $ Retirement and other benefit plans 1,927 Premises and equipment 9,062 Operating lease liabilities 3,502 Operating lease ROU assets 3,165 Core deposit intangible 913 Unrealized gains on securities AFS 22,562 Effective hedging derivatives 334 Fair value adjustment on loans 696 Unfunded status of defined benefit plan 6,314 State business tax credit 302 Stock-based compensation 1,043 Other 223 Gross deferred tax assets/liabilities 19,821 37,629 Net deferred tax liability at December 31, 2021 $ 17,808 A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands): Years Ended December 31, 2022 2021 2020 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Statutory tax expense $ 25,123 21.0 % $ 27,474 21.0 % $ 19,633 21.0 % Increase (decrease) in taxes from: Tax exempt interest (10,345) (8.6) % (9,636) (7.4) % (8,137) (8.7) % BOLI (555) (0.5) % (549) (0.4) % (536) (0.6) % Share-based compensation (93) (0.1) % (392) (0.3) % (70) (0.1) % State business tax 312 0.3 % 366 0.3 % 329 0.4 % Other, net 169 0.1 % 163 0.1 % 117 0.1 % Income tax expense $ 14,611 12.2 % $ 17,426 13.3 % $ 11,336 12.1 % |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES We lease certain retail- and full-service branch locations, ATM locations and certain equipment. Short-term leases, leases with an initial term of 12 months or less and do not contain a purchase option that is likely to be exercised, are not recorded on the balance sheet. Operating lease cost, which is comprised of the amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is included in net occupancy expense on our consolidated statements of income. We evaluate the lease term by assuming the exercise of options to extend that are reasonably assured and those option periods covered by an option to terminate the lease, if deemed not reasonably certain to be exercised. The lease term is used to determine the straight-line expense and limits the depreciable life of any related leasehold improvements. Certain leases require us to pay real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises. These expenses are classified in net occupancy expense on our consolidated statements of income, consistent with similar costs for owned locations, but is not included in operating lease cost below. Our leases have remaining lease terms ranging from 11 months to 17.7 years, some of which include options to extend for up to 10 years, and some of which include options to terminate within 90 days. We calculate the lease liability using a discount rate that represents our incremental borrowing rate at the lease commencement date. Balance sheet information related to leases was as follows (in thousands): December 31, 2022 December 31, 2021 Operating leases: Operating lease ROU assets $ 15,314 $ 15,073 Operating lease liabilities $ 17,070 $ 16,676 The components of lease cost were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Operating lease cost $ 1,773 $ 1,811 $ 2,193 Supplemental cash flow information related to leases was as follows (in thousands): Years Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of the lease liabilities: Operating cash flows for operating leases $ 1,644 $ 2,016 $ 1,479 ROU assets obtained in exchange for new operating lease liabilities (1) $ 1,531 $ 1,330 $ 7,912 (1) For the year ended December 31, 2021, the ROU assets obtained were primarily due to one lease that commenced in January 2021 with an initial ROU asset of $1.1 million. For the year ended December 31, 2020, the ROU assets obtained were primarily due to one lease that commenced in May 2020 with an initial ROU asset of $6.6 million. Additional information related to leases was as follows: December 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 13.8 14.9 Weighted average discount rate 2.98 % 2.90 % Future minimum rental commitments due under non-cancelable operating leases at December 31, 2022 were as follows (in thousands): Year ending December 31, 2023 $ 1,559 2024 1,617 2025 1,619 2026 1,598 2027 1,494 2028 and thereafter 13,098 Total lease payments 20,985 Less: Interest (3,915) Present value of lease liabilities $ 17,070 We also lease certain of our owned facilities or portions thereof to third parties. Our primary leased facility is a 202,000 square-foot office building in Fort Worth, Texas that is used for a branch location and certain bank operations. We occupy approximately 39,000 square feet of the building and lease the remaining space to various tenants. Some of these leases contain options to extend and options to terminate at the discretion of the tenant. Operating lease income received from tenants who rent our properties is reported as a reduction to occupancy expense on our consolidated statements of income. The underlying assets associated with these operating leases are included in premises and equipment on our consolidated balance sheets. Gross rental income from these leases were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Gross rental income $ 3,173 $ 3,288 $ 3,277 At December 31, 2022, non-cancelable operating leases with future minimum lease payments are as follows (in thousands): Year ending December 31, 2023 $ 3,290 2024 2,656 2025 2,041 2026 1,760 2027 1,014 2028 and thereafter 1,059 Total lease payments $ 11,820 |
Leases | LEASES We lease certain retail- and full-service branch locations, ATM locations and certain equipment. Short-term leases, leases with an initial term of 12 months or less and do not contain a purchase option that is likely to be exercised, are not recorded on the balance sheet. Operating lease cost, which is comprised of the amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is included in net occupancy expense on our consolidated statements of income. We evaluate the lease term by assuming the exercise of options to extend that are reasonably assured and those option periods covered by an option to terminate the lease, if deemed not reasonably certain to be exercised. The lease term is used to determine the straight-line expense and limits the depreciable life of any related leasehold improvements. Certain leases require us to pay real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises. These expenses are classified in net occupancy expense on our consolidated statements of income, consistent with similar costs for owned locations, but is not included in operating lease cost below. Our leases have remaining lease terms ranging from 11 months to 17.7 years, some of which include options to extend for up to 10 years, and some of which include options to terminate within 90 days. We calculate the lease liability using a discount rate that represents our incremental borrowing rate at the lease commencement date. Balance sheet information related to leases was as follows (in thousands): December 31, 2022 December 31, 2021 Operating leases: Operating lease ROU assets $ 15,314 $ 15,073 Operating lease liabilities $ 17,070 $ 16,676 The components of lease cost were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Operating lease cost $ 1,773 $ 1,811 $ 2,193 Supplemental cash flow information related to leases was as follows (in thousands): Years Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of the lease liabilities: Operating cash flows for operating leases $ 1,644 $ 2,016 $ 1,479 ROU assets obtained in exchange for new operating lease liabilities (1) $ 1,531 $ 1,330 $ 7,912 (1) For the year ended December 31, 2021, the ROU assets obtained were primarily due to one lease that commenced in January 2021 with an initial ROU asset of $1.1 million. For the year ended December 31, 2020, the ROU assets obtained were primarily due to one lease that commenced in May 2020 with an initial ROU asset of $6.6 million. Additional information related to leases was as follows: December 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 13.8 14.9 Weighted average discount rate 2.98 % 2.90 % Future minimum rental commitments due under non-cancelable operating leases at December 31, 2022 were as follows (in thousands): Year ending December 31, 2023 $ 1,559 2024 1,617 2025 1,619 2026 1,598 2027 1,494 2028 and thereafter 13,098 Total lease payments 20,985 Less: Interest (3,915) Present value of lease liabilities $ 17,070 We also lease certain of our owned facilities or portions thereof to third parties. Our primary leased facility is a 202,000 square-foot office building in Fort Worth, Texas that is used for a branch location and certain bank operations. We occupy approximately 39,000 square feet of the building and lease the remaining space to various tenants. Some of these leases contain options to extend and options to terminate at the discretion of the tenant. Operating lease income received from tenants who rent our properties is reported as a reduction to occupancy expense on our consolidated statements of income. The underlying assets associated with these operating leases are included in premises and equipment on our consolidated balance sheets. Gross rental income from these leases were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Gross rental income $ 3,173 $ 3,288 $ 3,277 At December 31, 2022, non-cancelable operating leases with future minimum lease payments are as follows (in thousands): Year ending December 31, 2023 $ 3,290 2024 2,656 2025 2,041 2026 1,760 2027 1,014 2028 and thereafter 1,059 Total lease payments $ 11,820 |
OFF-BALANCE-SHEET ARRANGEMENTS,
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance-Sheet Risk . In the normal course of business, we are a party to certain financial instruments with off-balance-sheet risk to meet the financing needs of our customers. These off-balance-sheet instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount reflected in the financial statements. The contract or notional amounts of these instruments reflect the extent of involvement and exposure to credit loss that we have in these particular classes of financial instruments. The allowance for credit losses on these off-balance-sheet credit exposures is calculated using the same methodology as loans including a conversion or usage factor to anticipate ultimate exposure and expected losses and is included in other liabilities on our consolidated balance sheets. Allowance for off-balance-sheet credit exposures were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of period $ 2,384 $ 6,386 $ 1,455 Impact of CECL adoption — — 4,840 Provision for (reversal of) off-balance-sheet credit exposures 1,303 (4,002) 91 Balance at end of period $ 3,687 $ 2,384 $ 6,386 Contractual commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Commitments to extend credit generally have fixed expiration dates and may require the payment of fees. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in commitments to extend credit and similarly do not necessarily represent future cash obligations. Financial instruments with off-balance-sheet risk were as follows (in thousands): December 31, 2022 December 31, 2021 Commitments to extend credit $ 1,296,773 $ 1,053,002 Standby letters of credit 26,844 12,708 Total $ 1,323,617 $ 1,065,710 We apply the same credit policies in making commitments to extend credit and standby letters of credit as we do for on-balance-sheet instruments. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant and equipment. Securities . In the normal course of business we buy and sell securities. At December 31, 2022, there were no unsettled trades to purchase securities and no unsettled trades to sell securities. At December 31, 2021, there were $19.0 million unsettled trades to purchase securities and no unsettled trades to sell securities. Deposits. There were no unsettled issuances of brokered CDs at December 31, 2022 or December 31, 2021. Litigation . We are involved with various litigation in the normal course of business. Management, after consulting with our legal counsel, believes that any liability resulting from litigation will not have a material effect on our financial position, results of operations or liquidity. |
SIGNIFICANT GROUP CONCENTRATION
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK Although we have a diversified loan portfolio, a significant portion of our loans are collateralized by real estate. Repayment of these loans is in part dependent upon the economic conditions in the market area. Our market areas primarily include East and Southeast Texas, as well as the greater Fort Worth, Austin and Houston, Texas areas. Part of the risk associated with real estate loans has been mitigated since 20.7% of this group represents loans collateralized by residential dwellings that are primarily owner occupied. Losses on this type of loan have historically been less than those on speculative properties. Many of the remaining real estate loans are collateralized primarily with non-owner occupied commercial real estate. The MBS we hold consist exclusively of U.S. agency securities which are either directly or indirectly backed by the full faith and credit of the U.S. Government or guaranteed by GSEs. The GNMA MBS are backed by the full faith and credit of the U.S. Government. The Fannie Mae and Freddie Mac U.S. agency GSE guaranteed MBS are not backed by the full faith and credit of the U.S. government. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for Southside Bancshares, Inc. (parent company only) was as follows (in thousands, except share amounts): CONDENSED BALANCE SHEETS December 31, 2022 2021 ASSETS Cash and due from banks $ 20,235 $ 19,189 Investment in bank subsidiaries at equity in underlying net assets 879,449 1,046,215 Investment in nonbank subsidiaries at equity in underlying net assets 1,826 1,826 Other assets 4,411 4,384 Total assets $ 905,921 $ 1,071,614 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated notes, net of unamortized debt issuance costs $ 98,674 $ 98,534 Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,265 60,260 Other liabilities 985 648 Total liabilities 159,924 159,442 Shareholders’ equity: Common stock: ($1.25 par value, 80,000,000 shares authorized, 38,000,822 shares issued at December 31, 2022 and 37,968,969 shares issued at December 31, 2021) 47,501 47,461 Paid-in capital 784,545 780,501 Retained earnings 239,610 179,813 Treasury stock: (shares at cost, 6,454,192 at December 31, 2022 and 5,616,917 at December 31, 2021) (188,203) (155,308) AOCI (137,456) 59,705 Total shareholders’ equity 745,997 912,172 Total liabilities and shareholders’ equity $ 905,921 $ 1,071,614 CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2022 2021 2020 Income Dividends from subsidiary $ 85,000 $ 100,000 $ 72,000 Interest income 72 42 55 Total income 85,072 100,042 72,055 Expense Interest expense 6,412 9,636 8,129 Other 3,148 4,162 3,240 Total expense 9,560 13,798 11,369 Income before income tax expense 75,512 86,244 60,686 Income tax benefit 1,992 2,889 2,375 Income before equity in undistributed earnings of subsidiaries 77,504 89,133 63,061 Equity in undistributed earnings of subsidiaries 27,516 24,268 19,092 Net income $ 105,020 $ 113,401 $ 82,153 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2022 2021 2020 OPERATING ACTIVITIES: Net Income $ 105,020 $ 113,401 $ 82,153 Adjustments to reconcile net income to net cash provided by operations: Amortization 145 277 202 Stock compensation expense 342 306 197 Equity in undistributed earnings of subsidiaries (27,516) (24,268) (19,092) Loss on redemption of subordinated notes — 1,118 — Net change in other assets (27) 348 (546) Net change in other liabilities 204 (1,732) (58) Net cash provided by operating activities 78,168 89,450 62,856 INVESTING ACTIVITIES: Net cash used in investing activities — — — FINANCING ACTIVITIES: Net proceeds from issuance of subordinated long-term debt — (95) 98,478 Redemption of subordinated notes — (100,011) — Purchase of common stock (33,708) (34,148) (30,989) Proceeds from issuance of common stock 1,522 8,546 2,723 Cash dividends paid (44,936) (44,569) (43,204) Net cash (used in) provided by financing activities (77,122) (170,277) 27,008 Net increase (decrease) in cash and cash equivalents 1,046 (80,827) 89,864 Cash and cash equivalents at beginning of period 19,189 100,016 10,152 Cash and cash equivalents at end of period $ 20,235 $ 19,189 $ 100,016 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation . The consolidated financial statements are prepared in conformity with U.S. GAAP and include the accounts of Southside Bancshares, Inc., and its wholly-owned subsidiary, Southside Bank and the nonbank subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. |
Reclassifications | Certain prior period amounts may be reclassified to conform to current period presentation. |
Accounting Pronouncements | Current Expected Credit Losses We adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2020, the effective date of the guidance. ASU 2016-13 replaced the incurred loss model with an expected loss methodology that is referred to as CECL. The CECL model is used to estimate credit losses on certain off-balance-sheet credit exposures and certain types of financial instruments measured at amortized cost including loan receivables and HTM debt securities. ASU 2016-13 also modified the impairment model on AFS debt securities, whereby credit losses are recognized as an allowance rather than a direct write-down of the AFS debt security. In addition, ASU 2016-13 modified the accounting model for PCD financial assets since their origination. We adopted ASU 2016-13 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Adoption of this guidance on January 1, 2020, resulted in a cumulative-effect adjustment to reduce retained earnings by $7.8 million, net of tax. The impairment model for AFS securities was applied using a prospective approach. We adopted ASU 2016-13 using the prospective transition approach for financial assets purchased with credit deterioration since their origination that were previously classified as PCI and accounted for under ASC 310-30. On the date of adoption, the amortized cost basis of the PCD assets was adjusted by an allowance for credit losses of $231,000. The remaining noncredit discount based upon the adjusted amortized cost basis will be accreted into interest income at the effective interest rate as of the date of adoption. Accounting Pronouncements . In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide relief for companies preparing for discontinuation of interest rates based on LIBOR. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued. ASU 2020-04 also provides for a one-time sale and/or transfer to AFS or trading to be made for HTM debt securities that both reference an eligible reference rate and were classified as HTM before January 1, 2020. ASU 2020-04 was effective for all entities as of March 12, 2020 and through December 31, 2022. Companies can apply the ASU as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The guidance requires companies to apply the guidance prospectively to contract modifications and hedging relationships while the one-time election to sell and/or transfer debt securities classified as HTM may be made any time after March 12, 2020. Additionally, in January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope,” which provided additional clarification that certain optional expedients and exceptions noted above apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which was effective upon issuance and deferred the sunset date in Topic 848 from December 31, 2022 to December 31, 2024. We established an officer level committee to guide our transition from LIBOR in October 2019 and are transitioning to alternative rates consistent with industry timelines. We continue to evaluate our LIBOR exposure. The trust preferred subordinated debentures will transition to an adjusted SOFR index in accordance with the Federal Reserve final rule implementing the Adjustable Interest Rate Act. Our cash flow hedges will transition to an adjusted SOFR index in accordance with the ISDA 2020 IBOR Fallbacks Protocol. We have identified our products that utilize LIBOR and have implemented enhanced fallback language to facilitate the transition to alternative reference rates. We are evaluating existing systems and have begun offering alternative rates. We are no longer offering LIBOR indexed rates on newly originated loans. ASU 2020-04 and ASU 2021-01 are not expected to have a material impact on our consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 eliminates the accounting guidance for TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. Additionally, ASU 2022-02 requires an entity to disclose current-period gross write-offs by year of origination for financing receivables within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. ASU 2022-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 for companies that have adopted CECL, which we adopted on January 1, 2020. Early adoption is permitted. The guidance should be applied prospectively with the option to use a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings. We adopted ASU 2022-02 on January 1, 2023 on a prospective basis. ASU 2022-02 did not have a material impact on our consolidated financial statements. |
Use of Estimates | Use of Estimates. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. These estimates are subjective in nature and involve matters of judgment. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses. The status of contingencies are particularly subject to change. |
Segment Information | Segment Information . Operating segments are components of a business about which separate financial information is available and that are evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and assess performance. Our chief operating decision-maker uses consolidated results to make operating and strategic decisions. Therefore, we have determined that our business is conducted in one reportable segment. |
Cash Equivalents | Cash Equivalents . Cash equivalents, for purposes of reporting cash flow, include cash, amounts due from banks and federal funds sold that have an initial maturity of less than 90 days. We maintain deposits with other institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that we are not exposed to any significant credit risks on cash and cash equivalents. |
Basic and Diluted Earnings per Common Share | Basic and Diluted Earnings per Common Share. Basic earnings per common share is based on net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of stock awards granted using the treasury stock method. |
Comprehensive Income | Comprehensive Income. Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of comprehensive income include the after tax effect of changes in the fair value of AFS securities, changes in the net unrealized loss on securities transferred to/from HTM, changes in the accumulated gain or loss on effective cash flow hedging instruments and changes in the funded status of defined benefit retirement plans. |
Loans | Loans . Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at amortized cost. Amortized cost consists of the outstanding principal balance adjusted for any charge-offs and any unamortized origination fees and unamortized premiums or discounts on purchased loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the loan. A loan is considered impaired, based on current information and events, if it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Substantially all of our impaired loans are collateral-dependent, and as such, are measured for impairment based on the fair value of the collateral. |
Loans Held For Sale | Loans Held For Sale. Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
Loan Fees | Loan Fees . We treat loan fees, net of direct costs, as an adjustment to the yield of the related loan over its term. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans . In accordance with ASC 326, the allowance for credit losses on loans is estimated and recognized upon origination of the loan based on expected credit losses. The CECL model uses historical experience and current conditions for homogeneous pools of loans, and reasonable and supportable forecasts about future events. The impact of varying economic conditions and portfolio stress factors are a component of the credit loss models applied to each portfolio. Reserve factors are specific to the loan segments that share similar risk characteristics based on the probability of default assumptions and loss given default assumptions, over the contractual term. The forecasted periods gradually mean-revert the economic inputs to their long-run historical trends. Management evaluates the economic data points used in the Moody’s forecasting scenarios on a quarterly basis to determine the most appropriate impact to the various portfolio characteristics based on management’s view and applies weighting to various forecasting scenarios as deemed appropriate based on known and expected economic activities. Management also considers and may apply relevant qualitative factors, not previously considered, to determine the appropriate allowance level. The use of the CECL model includes significant judgment by management and may differ from those of our peers due to different historical loss patterns, economic forecasts, and the length of time of the reasonable and supportable forecast period and reversion period. We utilize Moody’s Analytics economic forecast scenarios and assign probability weighting to those scenarios which best reflect management’s views on the economic forecast. The probability weighting and scenarios utilized for the estimate of the allowance were generally reflective of improved asset quality, offset slightly by continued economic uncertainty related to inflation and recessionary concerns, as based on known and knowable information as of December 31, 2022. When determining the appropriate allowance for credit losses on our loan portfolio, our commercial construction and real estate loans, commercial loans and municipal loans utilize the probability of default/loss given default discounted cash flow approach. Reserves on these loans are based upon risk factors including the loan type and structure, collateral type, leverage ratio, refinancing risk and origination quality, among others. Our consumer construction real estate loans, 1-4 family residential loans and our loans to individuals use a loss rate based upon risk factors including loan types, origination year and credit scores. Loans evaluated collectively in a pool are monitored to ensure they continue to exhibit similar risk characteristics with other loans in the pool. If a loan does not share similar risk characteristics with other loans, expected credit losses for that loan are evaluated individually. |
Accrued Interest | Accrued Interest . Accrued interest for our loans and debt securities, included in interest receivable on our consolidated balance sheets, is excluded from the estimate of allowance for credit losses. |
Nonaccrual Assets and Loan Charge-offs | Nonaccrual Assets and Loan Charge-offs . Nonaccrual assets include financial assets 90 days or more delinquent and full collection of both principal and interest is not expected. Financial instruments that are not delinquent or that are delinquent less than 90 days may be placed on nonaccrual status if it is probable that we will not receive contractual principal or interest. When an asset is categorized as nonaccrual, the accrual of interest is discontinued and any accrued balance is reversed for financial statement purposes. Payments received on nonaccrual assets are applied to the outstanding principal balance. Payments of contractual interest are recognized as income only to the extent that full recovery of the principal balance is reasonably certain. Assets are returned to accrual status when all payments contractually due are brought current and future payments are reasonably assured. Industry and our own experience indicate that a portion of our loans will become delinquent and a portion of our loans will require partial or full charge-off. Regardless of the underwriting criteria utilized, losses may occur as a result of various factors beyond our control, including, among other things, changes in market conditions affecting the value of properties used as collateral for loans and problems affecting the credit worthiness of the borrower and the ability of the borrower to make payments on the loan. We charge-off loans when deemed uncollectible. Our policy is to charge-off or partially charge-off a retail credit after it is 120 days past due. Charge-offs on commercial credits are determined on a case-by-case basis when a credit loss has been determined. |
Purchased Credit Deteriorated Loans | PCD Loans. We have purchased certain loans that as of the date of purchase have experienced more-than-insignificant deterioration in credit quality since origination. Management evaluates these loans against a probability threshold to determine if substantially all of the contractually required payments will be received. With the adoption of ASU 2016-13, PCD loans are recorded at the purchase price plus an allowance for credit losses which becomes the PCD loan's initial amortized cost. The non-credit related discount or premium, the difference between the initial amortized cost and the par value, will be amortized into interest income over the life of the loan. Any further changes to the allowance for credit losses are recorded through provision expense. Prior to the adoption of ASU 2016-13, acquired loans considered PCI were measured at fair value at acquisition date. The difference in expected cash flows at the acquisition date in excess of the fair value was recorded as interest income over the life of the loan. In accordance with the adoption of ASU 2016-13, management did not reassess whether PCI assets met the criteria of PCD assets and elected to not maintain pools of loans as of the date of adoption. All PCD loans are evaluated based upon product type within the underlying segment. |
Troubled Debt Restructuring | TDRs . A loan is considered a TDR if the original terms of a loan are modified and concessions are made to accommodate a borrower experiencing financial duress. The modification or concession may include reduction of interest rates, reduced payment amounts, and/or extension of terms, among others. The likelihood of initiating a TDR is evaluated at each reporting date for each loan. This evaluation is based on qualitative judgments made by management on a case-by-case basis. If a reasonable expectation of a TDR exists, the expected credit loss is adjusted for any potential delays and/or modifications and disclosed as a reasonably expected TDR. |
Other Real Estate Owned | OREO and Foreclosed Assets . OREO includes real estate acquired in full or partial settlement of loan obligations. OREO is initially carried at the fair value of the collateral net of estimated selling costs. Prior to foreclosure, the recorded amount of the loan is written down, if necessary, to the appraised fair value of the real estate to be acquired, less selling costs, by charging the allowance for loan losses. Any subsequent reduction in fair value net of estimated selling costs is charged to noninterest expense. Costs of maintaining and operating foreclosed properties are expensed as incurred and included in other expense in our income statement. Expenditures to complete or improve foreclosed properties are capitalized only if expected to be recovered; otherwise, they are expensed. |
Foreclosed Assets | Other foreclosed assets are held for sale and are initially recorded at fair value less estimated selling costs at the date of foreclosure, by charging the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Foreclosed assets are included in other assets in the accompanying consolidated balance sheets. Expenses from operations and changes in the valuation allowance are included in noninterest expense. |
Securities | Securities . AFS. Debt securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity or changes in the availability of and the yield on alternative investments are classified as AFS. These assets are carried at fair value with unrealized gains and losses, not related to credit losses, reported as a separate component of AOCI, net of tax. Fair value is determined using quoted market prices as of the close of business on the balance sheet date. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. AFS securities hedged with qualifying derivatives are carried at fair value with the change in the fair value on both the hedged instrument and the securities recorded in interest income in the consolidated statements of income. Gains and losses on the sale of securities are recorded in the month of the trade date and are determined using the specific identification method. HTM. Debt securities that management has the positive intent and ability to hold until maturity are classified as HTM and are carried at their amortized cost which includes the remaining unpaid principal balance, net of unamortized premiums or unaccreted discounts. Our HTM securities are presented on the consolidated balance sheets net of allowance for credit losses, if any. As of December 31, 2022, there was no allowance for credit losses on our HTM securities portfolio. Premiums and Discounts. Premiums and discounts on debt securities are generally amortized over the contractual life of the security, except for MBS where prepayments are anticipated and for callable debt securities whose premiums are amortized to the earliest call date in accordance with ASC 310. The amortization of purchased premium or discount is included in interest income on our consolidated statements of income. Gains and losses on the sale of securities are recorded in the month of the trade date and are determined using the specific identification method. Premiums on debt securities are amortized to the earliest call date. Equity Investments . Equity investments with readily determinable fair values are stated at fair value with the unrealized gains and losses reported in other noninterest income in the consolidated statements of income. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. |
Allowance for Credit Losses - Debt Securities | Allowance for Credit Losses - AFS Securities . In accordance with ASC 326, for AFS debt securities in an unrealized loss position where management (i) has the intent to sell or (ii) where it will more-likely-than-not be required to sell the security before the recovery of its amortized cost basis, we recognize the loss in earnings. For those AFS debt securities in an unrealized loss position that do not meet either of these criteria, management assesses whether the decline in fair value has resulted from credit losses or other factors. Management assesses the financial condition and near-term prospects of the issuer, industry and/or geographic conditions, credit ratings as well as other indicators at the individual security level. If a credit loss is determined to exist, the present value of discounted cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of discounted cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost. Any impairment that is not recorded through an allowance for credit losses is recognized in other comprehensive income. Any future changes in the allowance for credit losses is recorded as provision for (reversal of) credit losses. Allowance for Credit Losses - HTM Securities . In accordance with ASC 326, expected credit losses on HTM securities are measured on a collective basis by major security type, when similar risk characteristics exist. Risk characteristics for segmenting HTM debt securities include issuer, maturity, coupon rate, yield, payment frequency, source of repayment, bond payment structure, and embedded options. Upon assignment of the risk characteristics to the major security types, management may further evaluate the qualitative factors associated with these securities to determine the expectation of credit losses, if any. The major security types within our HTM portfolio include residential and commercial MBS, state and political subdivisions and corporate securities. Our state and political subdivisions include highly-rated municipal securities with a long history of no credit losses. Our investment policy prohibits bond purchases with a rating less than BAA and limits our entity concentration. We utilize term structures and due to no prior loss exposure on our state and political subdivision securities, we apply third-party average data to model our securities to represent the portion of the asset that would be lost if the issuer were to default. These third-party estimates of recoveries and defaults, adjusted for constant probability over the securities expected life, are used to evaluate the expected loss of the securities. Due to the limited number and the nature of the HTM state and political subdivisions we hold, we do not model these securities as a pool, but on the specific identification method in conjunction with the application of our third-party fair value measurement. Our residential and commercial MBS are issued and/or guaranteed by U.S. government agencies or GSEs and are collateralized by pools of single- or multi-family mortgages. Our MBS are highly rated securities with a long history of no credit losses which are either explicitly or implicitly backed by the U.S. government agencies, which guarantee the payment of principal and interest to investors. Management has collectively evaluated the characteristics of these securities and has assumed an expectation of zero credit loss. Our corporate bonds and other investment securities consist of investment grade bonds and private placement bonds with a long history of no credit losses. We reevaluate the characteristics of our major security types at every reporting period and reassess the considerations to continue to support our expectation of credit loss. |
Securities with Limited Marketability | Securities with Limited Marketability . Securities with limited marketability, such as stock in the FHLB, are carried at cost, which is a reasonable estimate of the fair value of those assets and are assessed for other-than-temporary impairment. |
Premises and Equipment | Premises and Equipment . Land is carried at cost. Bank premises and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight line basis over the estimated useful lives of the related assets. Useful lives are estimated to be 15 to 40 years for premises and 3 to 10 years for equipment. Leasehold improvements are generally depreciated over the lesser of the term of the respective leases or the estimated useful lives of the improvements. Maintenance and repairs are charged to expense as incurred while major improvements and replacements are capitalized. |
Leases | Leases . We evaluate our contracts at inception to determine if an arrangement is or contains a lease. Operating leases are included in operating lease ROU assets and operating lease liabilities in our consolidated balance sheets. Our operating leases relate primarily to bank branches and office space. The Company has no finance leases. Short-term leases, leases with an initial term of 12 months or less and do not contain a purchase option that is likely to be exercised, are not recorded on the balance sheet. |
Bank Owned Life Insurance | BOLI . The Company has purchased life insurance policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received are reflected in noninterest income on the consolidated statements of income and are not subject to income taxes. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles . Other intangible assets consist primarily of core deposits and trust relationship intangibles. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Goodwill and intangible assets that have indefinite useful lives are subject to at least an annual impairment test and more frequently if a triggering event occurs. If any such impairment is determined, a write-down is recorded. |
Repurchase Agreements | Repurchase Agreements . We sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remains in the asset account. We determine the type of debt securities to pledge which may include investment securities and U.S. agency MBS. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities . Derivative financial instruments are carried on the consolidated balance sheets as other assets or other liabilities, as applicable, at estimated fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative financial instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. We present derivative financial instruments at fair value in the consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period of change. Gains and losses on derivative instruments designated as fair value hedges, as well as the change in the fair value on the hedged item, are recorded in interest income in the consolidated statements of income. Gains and losses due to changes in the fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the hedged item. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. During the year ended December 31, 2022, we entered into partial term fair value hedges, as allowed under ASU 2017-12, for certain of our fixed rate callable AFS municipal securities. The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for us making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The change in the fair value of these hedging instruments is recorded in AOCI and is subsequently reclassified into earnings in the period that the hedged transactions affects earnings. For derivatives designated as hedging instruments at inception, statistical regression analysis is used at inception and for each reporting period thereafter to assess whether the derivative used has been and is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Net hedge ineffectiveness is recorded in other noninterest income on the consolidated statements of income. Terminated Derivative Financial Instruments . In accordance with ASC Topic 815, if a hedging item is terminated prior to maturity for a cash settlement, the existing gain or loss within AOCI will continue to be reclassified into earnings during the period or periods in which the hedged forecasted transaction affects earnings unless it is probable the forecasted transaction will not occur by the end of the originally specified time period. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation, it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. |
Allowance for Credit Losses - Off-Balance-Sheet Credit Exposures | Allowance for Credit Losses - Off-Balance-Sheet Credit Exposures . Our off-balance-sheet credit exposures include contractual commitments to extend credit and standby letters of credit. For these credit exposures we evaluate the expected credit losses using usage given defaults and credit conversion factors depending on the type of commitment and based upon historical usage rates. These assumptions are reevaluated on an annual basis and adjusted if necessary. In accordance with Topic 326, credit losses are not recognized for those credit exposures that are unconditionally cancellable by the Company. |
Revenue Recognition | Revenue Recognition . Our revenue consists of net interest income on financial assets and financial liabilities and noninterest income. The classifications of our revenue are presented in the consolidated statements of income. In accordance with ASC Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of goods or services. We recognize revenue equal to the amounts for which we have a right to invoice, revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of those goods or services. We generally expense sales commissions when incurred because the amortization period is within one year or less. These costs are recorded within salaries and employee benefits on the consolidated statements of income. The following summarizes our revenue recognition policies as they relate to revenue from contracts with customers: • Deposit services . Service charges on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. Our deposit services also include our ATM and debit card interchange revenue that is presented net of the associated costs. Interchange revenue is generated by our deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. • Trust income. Trust income includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided. • Brokerage services. Brokerage services income includes fees and commissions charged when we arrange for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume and value of the services provided. • Other noninterest income . Other noninterest income includes among other things, merchant services income. Merchant services revenue is derived from third-party vendors that process credit card transactions on behalf of our merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. |
Income Taxes | Income Taxes. We file a consolidated federal income tax return. Income tax expense represents the taxes expected to be paid or returned for current year taxes adjusted for the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period the change occurs. Uncertain tax positions arise when it is more likely than not that the tax position taken will be sustained upon examination by the appropriate tax authority. Any income tax benefit as well as penalties and interest related to income tax expense are recorded as a component of income tax expense. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments . Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. |
Retirement Plan | Retirement Plan . Defined benefit pension obligations and the annual pension costs are determined by independent actuaries and through the use of a number of assumptions that are reviewed by management. These assumptions include a compensation rate increase, a discount rate used to determine the current benefit obligation and a long-term expected rate of return on plan assets. Net periodic defined benefit pension expense includes service cost, interest cost based on the assumed discount rate, an expected return on plan assets, amortization of prior service cost and amortization of net actuarial gains or losses. Prior service costs include the impact of plan amendments on the liabilities and are amortized over the future service periods of active employees expected to receive benefits under the retirement plan. Actuarial gains and losses result from experience different from that assumed and from changes in assumptions. Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost. Prior to the freeze of all future benefit accruals and accrual of benefit service as of December 31, 2020, the service cost component was recorded on our consolidated income statement as salaries and employee benefits in noninterest expense. All other components other than service cost are recorded in other noninterest expense. |
Share-Based Awards | Share-Based Awards. Compensation expense for NQSOs and RSUs is based on the fair value on the date of the grant and is recorded over the grant’s vesting period. Compensation expense for PSUs is based on the fair value on the date of the grant and is recorded over the service period of the award based upon the probable number of units expected to vest. Share-based compensation for employees is recognized as compensation cost in the consolidated statements of income. Share-based compensation for non-employee directors is recognized as other noninterest expense in the consolidated statements of income. |
Loss Contingencies | Loss Contingencies . Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Wealth Management and Trust Assets | Wealth Management and Trust Assets . Our wealth management and trust assets, other than cash on deposit at Southside Bank, are not included in the accompanying financial statements, because they are not our assets. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share on a basic and diluted basis | Earnings per share on a basic and diluted basis are calculated as follows (in thousands, except per share amounts): Years Ended December 31, 2022 2021 2020 Basic and Diluted Earnings: Net income $ 105,020 $ 113,401 $ 82,153 Basic weighted-average shares outstanding 32,120 32,558 33,201 Add: Stock awards 131 134 80 Diluted weighted-average shares outstanding 32,251 32,692 33,281 Basic earnings per share: Net income $ 3.27 $ 3.48 $ 2.47 Diluted earnings per share: Net income $ 3.26 $ 3.47 $ 2.47 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) by component | The changes in accumulated other comprehensive income (loss) by component are as follows for the years presented (in thousands): Year Ended December 31, 2022 Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Retirement Plans Total Beginning balance, net of tax $ 84,716 $ (1,257) $ (23,754) $ 59,705 Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications (304,859) 44,757 4,487 (255,615) Reclassification adjustments included in net income 8,787 (3,638) 895 6,044 Income tax (expense) benefit 62,175 (8,635) (1,130) 52,410 Net current-period other comprehensive income (loss), net of tax (233,897) 32,484 4,252 (197,161) Ending balance, net of tax $ (149,181) $ 31,227 $ (19,502) $ (137,456) Year Ended December 31, 2021 Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Retirement Plans Total Beginning balance, net of tax $ 116,078 $ (17,091) $ (29,907) $ 69,080 Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications (37,199) 13,648 6,524 (17,027) Reclassification adjustments included in net income (2,499) 6,395 1,264 5,160 Income tax (expense) benefit 8,336 (4,209) (1,635) 2,492 Net current-period other comprehensive income (loss), net of tax (31,362) 15,834 6,153 (9,375) Ending balance, net of tax $ 84,716 $ (1,257) $ (23,754) $ 59,705 Year Ended December 31, 2020 Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Retirement Plans Total Beginning balance, net of tax $ 38,038 $ (1,672) $ (32,130) $ 4,236 Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications 105,845 (23,462) (215) 82,168 Reclassification adjustments included in net income (7,060) 3,945 3,028 (87) Income tax (expense) benefit (20,745) 4,098 (590) (17,237) Net current-period other comprehensive income (loss), net of tax 78,040 (15,419) 2,223 64,844 Ending balance, net of tax $ 116,078 $ (17,091) $ (29,907) $ 69,080 |
Reclassification out of Accumulated Other Comprehensive Income | The reclassification adjustments out of accumulated other comprehensive income (loss) included in net income are presented below (in thousands): Years Ended December 31, 2022 2021 2020 Unrealized gains and losses on securities transferred: Amortization of unrealized gains and losses (1) $ (4,968) $ (1,363) $ (1,197) Tax benefit 1,043 286 251 Net of tax $ (3,925) $ (1,077) $ (946) Unrealized gains and losses on AFS securities: Realized net gain (loss) on sale of securities (2) $ (3,819) $ 3,862 $ 8,257 Tax (expense) benefit 802 (811) (1,734) Net of tax $ (3,017) $ 3,051 $ 6,523 Derivatives: Realized net gain (loss) on interest rate swap derivatives (3) $ 3,638 $ (6,395) $ (3,970) Tax (expense) benefit (764) 1,343 834 Net of tax $ 2,874 $ (5,052) $ (3,136) Amortization of unrealized gains on terminated interest rate swap derivatives (3) $ — $ — $ 25 Tax expense — — (5) Net of tax $ — $ — $ 20 Amortization of retirement plans: Net actuarial loss (4) $ (895) $ (1,264) $ (3,035) Prior service credit (4) — — 7 Total before tax (895) (1,264) (3,028) Tax benefit 188 265 636 Net of tax $ (707) $ (999) $ (2,392) Total reclassifications for the period, net of tax $ (4,775) $ (4,077) $ 69 (1) Included in interest income on the consolidated statements of income. (2) Listed as net gain (loss) on sale of securities AFS on the consolidated statements of income. (3) Included in interest expense for FHLB borrowings and deposits on the consolidated statements of income. (4) These AOCI components are included in the computation of net periodic pension cost (income) presented in “Note 10 – Employee Benefits.” |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized and realized gains (losses) recognized in net income on equity investments | The amortized cost, gross unrealized gains and losses and estimated fair value of investment and mortgage-backed AFS and HTM securities as of December 31, 2022 and 2021 are reflected in the tables below (in thousands): December 31, 2022 Amortized Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Fair Value Investment securities: State and political subdivisions $ 1,039,453 $ 956 $ 75,557 $ 964,852 Corporate bonds and other 8,692 26 14 8,704 MBS: (1) Residential 328,400 250 13,623 315,027 Commercial 11,329 50 948 10,431 Total $ 1,387,874 $ 1,282 $ 90,142 $ 1,299,014 HELD TO MATURITY Investment securities: State and political subdivisions $ 1,037,556 $ 3,969 $ 163,283 $ 878,242 Corporate bonds and other 152,552 575 7,993 145,134 MBS: (1) Residential 93,796 21 8,343 85,474 Commercial 42,825 — 2,519 40,306 Total $ 1,326,729 $ 4,565 $ 182,138 $ 1,149,156 December 31, 2021 Amortized Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Fair Value Investment securities: U.S. Treasury $ 58,084 $ 843 $ 50 $ 58,877 State and political subdivisions 1,962,257 93,893 4,214 2,051,936 Corporate bonds and other 133,333 2,408 209 135,532 MBS: (1) Residential 411,727 14,895 272 426,350 Commercial 90,193 1,642 205 91,630 Total $ 2,655,594 $ 113,681 $ 4,950 $ 2,764,325 HELD TO MATURITY Investment securities: State and political subdivisions $ 788 $ 3 $ — $ 791 MBS: (1) Residential 38,644 2,103 — 40,747 Commercial 51,348 2,349 — 53,697 Total $ 90,780 $ 4,455 $ — $ 95,235 |
Unrealized loss on securities | The following tables present the fair value and unrealized losses on AFS and HTM investment securities and MBS, if applicable, for which an allowance for credit losses has not been recorded as of December 31, 2022 or 2021, segregated by major security type and length of time in a continuous loss position (in thousands): December 31, 2022 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AVAILABLE FOR SALE Investment securities: State and political subdivisions $ 859,270 $ 68,683 $ 26,620 $ 6,874 $ 885,890 $ 75,557 Corporate bonds and other 3,678 14 — — 3,678 14 MBS: Residential 306,294 13,623 — — 306,294 13,623 Commercial 5,613 318 2,545 630 8,158 948 Total $ 1,174,855 $ 82,638 $ 29,165 $ 7,504 $ 1,204,020 $ 90,142 HELD TO MATURITY Investment securities: State and political subdivisions $ 426,382 $ 66,898 $ 323,385 $ 96,385 $ 749,767 $ 163,283 Corporate bonds and other 125,250 6,660 12,738 1,333 137,988 7,993 Mortgage-backed securities: Residential 80,801 7,799 3,932 544 84,733 8,343 Commercial 40,306 2,519 — — 40,306 2,519 Total $ 672,739 $ 83,876 $ 340,055 $ 98,262 $ 1,012,794 $ 182,138 December 31, 2021 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AVAILABLE FOR SALE Investment securities: U.S. Treasury $ 9,947 $ 50 $ — $ — $ 9,947 $ 50 State and political subdivisions 260,509 3,622 7,608 592 268,117 4,214 Corporate bonds and other 35,597 209 — — 35,597 209 MBS: Residential 1,225 3 5,168 269 6,393 272 Commercial 4,274 7 4,674 198 8,948 205 Total $ 311,552 $ 3,891 $ 17,450 $ 1,059 $ 329,002 $ 4,950 |
Interest income recognized on securities | The following table reflects interest income recognized on securities for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 U.S. Treasury $ 271 $ 615 $ — State and political subdivisions 57,663 46,296 36,393 Corporate bonds and other 6,007 4,131 1,195 MBS 16,639 19,534 34,319 Total interest income on securities $ 80,580 $ 70,576 $ 71,907 |
Amortized cost and fair value of securities presented by contractual maturity | The amortized cost and estimated fair value of AFS and HTM securities at December 31, 2022, are presented below by contractual maturity (in thousands). December 31, 2022 Amortized Cost Fair Value AVAILABLE FOR SALE Investment securities: Due in one year or less $ 528 $ 529 Due after one year through five years 1,485 1,498 Due after five years through ten years 57,795 57,890 Due after ten years 988,337 913,639 1,048,145 973,556 MBS: 339,729 325,458 Total $ 1,387,874 $ 1,299,014 December 31, 2022 Amortized Cost Fair Value HELD TO MATURITY Investment securities: Due in one year or less $ 125 $ 124 Due after one year through five years 24,810 24,615 Due after five years through ten years 133,794 126,505 Due after ten years 1,031,379 872,132 1,190,108 1,023,376 MBS: 136,621 125,780 Total $ 1,326,729 $ 1,149,156 |
Unrealized and realized gains (losses) recognized in net income on equity investments | The following is a summary of unrealized and realized gains and losses on equity investments recognized in other noninterest income in the consolidated statements of income during the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Net gains (losses) recognized during the period on equity investments $ (685) $ (174) $ (427) Less: Net gains recognized during the period on equity investments sold during the period — — — Unrealized gains (losses) recognized during the reporting period on equity investments still held at the reporting date $ (685) $ (174) $ (427) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans by portfolio segment | Loans in the accompanying consolidated balance sheets are classified as follows (in thousands): December 31, 2022 December 31, 2021 Real estate loans: Construction $ 559,681 $ 447,860 1-4 family residential 663,519 651,140 Commercial 1,987,707 1,598,172 Commercial loans 412,064 418,998 Municipal loans 450,067 443,078 Loans to individuals 74,653 85,914 Total loans 4,147,691 3,645,162 Less: Allowance for loan losses 36,515 35,273 Net loans $ 4,111,176 $ 3,609,889 |
Summary of loans by credit quality indicators and origination year | The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands): December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Total 2022 2021 2020 2019 2018 Prior Construction real estate: Pass $ 169,652 $ 184,501 $ 34,537 $ 7,091 $ 1,844 $ 6,434 $ 152,530 $ 556,589 Pass watch 299 — — — — — — 299 Special mention 1,858 290 — — — — — 2,148 Substandard — — — 10 42 194 — 246 Doubtful — 44 — 355 — — — 399 Total construction real estate $ 171,809 $ 184,835 $ 34,537 $ 7,456 $ 1,886 $ 6,628 $ 152,530 $ 559,681 1-4 family residential real estate: Pass $ 82,847 $ 144,424 $ 128,666 $ 70,142 $ 36,710 $ 194,490 $ 2,160 $ 659,439 Pass watch — — — — — — — — Special mention — — 79 — 1,397 — — 1,476 Substandard 3 — 217 54 32 1,942 43 2,291 Doubtful — — — — 173 140 — 313 Total 1-4 family residential real estate $ 82,850 $ 144,424 $ 128,962 $ 70,196 $ 38,312 $ 196,572 $ 2,203 $ 663,519 Commercial real estate: Pass $ 798,653 $ 546,938 $ 168,607 $ 136,440 $ 55,480 $ 233,509 $ 12,315 $ 1,951,942 Pass watch — 9,219 — — — — — 9,219 Special mention — — 1,832 330 115 1,849 — 4,126 Substandard — — 281 14,603 260 6,992 — 22,136 Doubtful — — — 76 — 208 — 284 Total commercial real estate $ 798,653 $ 556,157 $ 170,720 $ 151,449 $ 55,855 $ 242,558 $ 12,315 $ 1,987,707 Commercial loans: Pass $ 113,678 $ 68,509 $ 17,852 $ 8,249 $ 4,820 $ 3,313 $ 178,951 $ 395,372 Pass watch 208 13 56 — — — — 277 Special mention — 5,109 31 — 288 — 9,986 15,414 Substandard 220 116 70 110 12 9 — 537 Doubtful 68 100 — 86 210 — — 464 Total commercial loans $ 114,174 $ 73,847 $ 18,009 $ 8,445 $ 5,330 $ 3,322 $ 188,937 $ 412,064 Municipal loans: Pass $ 65,258 $ 74,617 $ 57,147 $ 47,636 $ 24,576 $ 173,919 $ — $ 443,153 Pass watch — — — 508 403 6,003 — 6,914 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total municipal loans $ 65,258 $ 74,617 $ 57,147 $ 48,144 $ 24,979 $ 179,922 $ — $ 450,067 Loans to individuals: Pass $ 29,579 $ 21,480 $ 12,651 $ 5,261 $ 1,665 $ 1,005 $ 2,935 $ 74,576 Pass watch — — — — — — — — Special mention — — — — — — — — Substandard — 1 — 6 — 2 — 9 Doubtful 7 — — 18 40 3 — 68 Total loans to individuals $ 29,586 $ 21,481 $ 12,651 $ 5,285 $ 1,705 $ 1,010 $ 2,935 $ 74,653 Total loans $ 1,262,330 $ 1,055,361 $ 422,026 $ 290,975 $ 128,067 $ 630,012 $ 358,920 $ 4,147,691 December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Total 2021 2020 2019 2018 2017 Prior Construction real estate: Pass $ 179,521 $ 82,862 $ 38,788 $ 5,666 $ 2,126 $ 6,080 $ 132,592 $ 447,635 Pass watch — — — — — — — — Special mention — — — — — — — — Substandard — — — — — 175 — 175 Doubtful — — — 50 — — — 50 Total construction real estate $ 179,521 $ 82,862 $ 38,788 $ 5,716 $ 2,126 $ 6,255 $ 132,592 $ 447,860 1-4 family residential real estate: Pass $ 141,058 $ 129,681 $ 81,607 $ 47,566 $ 34,236 $ 209,470 $ 2,238 $ 645,856 Pass watch — — — — — 777 — 777 Special mention — 82 — — — — — 82 Substandard 57 403 55 — 295 3,257 88 4,155 Doubtful — — — — — 270 — 270 Total 1-4 family residential real estate $ 141,115 $ 130,166 $ 81,662 $ 47,566 $ 34,531 $ 213,774 $ 2,326 $ 651,140 Commercial real estate: Pass $ 648,002 $ 207,370 $ 209,923 $ 114,788 $ 143,350 $ 209,368 $ 7,566 $ 1,540,367 Pass watch 21,669 — 2,163 3,074 374 — — 27,280 Special mention — 2,062 2,217 119 163 1,877 — 6,438 Substandard 3,299 667 10,830 1,480 — 7,691 — 23,967 Doubtful — — — — — 120 — 120 Total commercial real estate $ 672,970 $ 210,099 $ 225,133 $ 119,461 $ 143,887 $ 219,056 $ 7,566 $ 1,598,172 Commercial loans: Pass $ 140,628 $ 51,866 $ 24,688 $ 13,204 $ 2,516 $ 4,062 $ 178,263 $ 415,227 Pass watch — — 280 22 — — — 302 Special mention — 57 78 363 — 157 — 655 Substandard — 283 296 174 16 — 1,457 2,226 Doubtful 7 26 124 359 — 72 — 588 Total commercial loans $ 140,635 $ 52,232 $ 25,466 $ 14,122 $ 2,532 $ 4,291 $ 179,720 $ 418,998 Municipal loans: Pass $ 80,167 $ 64,803 $ 61,348 $ 29,168 $ 56,274 $ 151,318 $ — $ 443,078 Pass watch — — — — — — — — Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total municipal loans $ 80,167 $ 64,803 $ 61,348 $ 29,168 $ 56,274 $ 151,318 $ — $ 443,078 Loans to individuals: Pass $ 40,252 $ 24,028 $ 11,813 $ 4,121 $ 1,684 $ 849 $ 3,052 $ 85,799 Pass watch — — — — — — — — Special mention — — — 36 — — — 36 Substandard — 1 24 4 23 10 2 64 Doubtful — — 1 7 3 4 — 15 Total loans to individuals $ 40,252 $ 24,029 $ 11,838 $ 4,168 $ 1,710 $ 863 $ 3,054 $ 85,914 Total loans $ 1,254,660 $ 564,191 $ 444,235 $ 220,201 $ 241,060 $ 595,557 $ 325,258 $ 3,645,162 |
Aging of past due loans by class of loan | The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands): December 31, 2022 30-59 Days 60-89 Days Greater than Total Past Current Total Real estate loans: Construction $ 43 $ 21 $ — $ 64 $ 559,617 $ 559,681 1-4 family residential 3,529 368 214 4,111 659,408 663,519 Commercial 105 153 415 673 1,987,034 1,987,707 Commercial loans 515 277 247 1,039 411,025 412,064 Municipal loans — — — — 450,067 450,067 Loans to individuals 203 3 40 246 74,407 74,653 Total $ 4,395 $ 822 $ 916 $ 6,133 $ 4,141,558 $ 4,147,691 December 31, 2021 30-59 Days 60-89 Days Greater than Total Past Current Total Real estate loans: Construction $ 82 $ 58 $ — $ 140 $ 447,720 $ 447,860 1-4 family residential 3,226 606 227 4,059 647,081 651,140 Commercial 1,191 — 99 1,290 1,596,882 1,598,172 Commercial loans 1,523 251 537 2,311 416,687 418,998 Municipal loans 170 — — 170 442,908 443,078 Loans to individuals 315 41 8 364 85,550 85,914 Total $ 6,507 $ 956 $ 871 $ 8,334 $ 3,636,828 $ 3,645,162 |
Nonperforming assets by asset class | The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands): December 31, 2022 December 31, 2021 Nonaccrual loans: Real estate loans: Construction $ 405 $ 57 1-4 family residential 848 969 Commercial 762 668 Commercial loans 757 815 Loans to individuals 74 27 Total nonaccrual loans (1) 2,846 2,536 Accruing loans past due more than 90 days — — TDR loans 7,849 9,073 OREO 93 — Repossessed assets 74 — Total nonperforming assets $ 10,862 $ 11,609 (1) Includes $897,000 and $1.1 million |
Troubled debt restructurings | The following tables set forth the recorded balance of loans considered to be TDRs that were restructured and the type of concession by class of loans during the periods presented (dollars in thousands): December 31, 2022 Extend Amortization Interest Rate Reductions Combination Total Modifications Number of Loans Real estate loans: 1-4 family residential $ — $ — $ 305 $ 305 4 Commercial loans — — 6 6 1 Loans to individuals — — 8 8 2 Total $ — $ — $ 319 $ 319 7 December 31, 2021 Extend Amortization Interest Rate Reductions Combination Total Modifications Number of Loans Real estate loans: 1-4 family residential $ — $ — $ 560 $ 560 7 Commercial — — 450 450 1 Commercial loans — 16 84 100 3 Total $ — $ 16 $ 1,094 $ 1,110 11 December 31, 2020 Extend Amortization Interest Rate Reductions Combination Total Modifications Number of Loans Real estate loans: Commercial $ — $ — $ 58 $ 58 1 Commercial loans 51 — 390 441 6 Loans to individuals — — 22 22 1 Total $ 51 $ — $ 470 $ 521 8 |
Allowance for loan losses activity by portfolio segment | The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands): Year Ended December 31, 2022 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 3,787 $ 1,866 $ 26,980 $ 2,397 $ 47 $ 196 $ 35,273 Loans charged-off — (69) — (792) — (1,723) (2,584) Recoveries of loans charged-off 2 107 81 593 — 1,105 1,888 Net loans (charged-off) recovered 2 38 81 (199) — (618) (696) Provision for (reversal of) loan losses (625) 269 1,640 37 (2) 619 1,938 Balance at end of period $ 3,164 $ 2,173 $ 28,701 $ 2,235 $ 45 $ 197 $ 36,515 Year Ended December 31, 2021 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 6,490 $ 2,270 $ 35,709 $ 4,107 $ 46 $ 384 $ 49,006 Loans charged-off — (136) — (1,004) — (1,611) (2,751) Recoveries of loans charged-off 2 75 87 674 — 1,142 1,980 Net loans (charged-off) recovered 2 (61) 87 (330) — (469) (771) Provision for (reversal of) loan losses (2,705) (343) (8,816) (1,380) 1 281 (12,962) Balance at end of period $ 3,787 $ 1,866 $ 26,980 $ 2,397 $ 47 $ 196 $ 35,273 Year Ended December 31, 2020 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 3,539 $ 3,833 $ 9,572 $ 6,351 $ 570 $ 932 $ 24,797 Impact of CECL adoption - cumulative effect adjustment 2,968 (1,447) 7,730 (3,532) (522) (125) 5,072 Impact of CECL adoption - purchased loans with credit deterioration (15) (6) 333 (22) — (59) 231 Loans charged-off (40) (152) (33) (823) — (1,806) (2,854) Recoveries of loans charged-off 28 32 102 310 — 1,178 1,650 Net loans (charged-off) recovered (12) (120) 69 (513) — (628) (1,204) Provision for (reversal of) loan losses (1) 10 10 18,005 1,823 (2) 264 20,110 Balance at end of period $ 6,490 $ 2,270 $ 35,709 $ 4,107 $ 46 $ 384 $ 49,006 (1) The increase in the provision for credit losses during 2020 was primarily due to the economic impact of COVID-19 on macroeconomic factors used in the CECL methodology. |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | Premises and equipment at December 31, 2022 and 2021 are summarized as follows (in thousands): December 31, 2022 2021 Premises $ 185,588 $ 181,289 Furniture and equipment 44,126 42,924 229,714 224,213 Less: Accumulated depreciation 88,458 81,704 Total $ 141,256 $ 142,509 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposit Liabilities, Type | Deposits in the accompanying consolidated balance sheets are classified as follows (in thousands): December 31, 2022 December 31, 2021 Noninterest bearing demand deposits: Private accounts $ 1,607,952 $ 1,591,123 Public accounts 63,610 53,652 Total noninterest bearing demand deposits 1,671,562 1,644,775 Interest bearing deposits: Private accounts: Savings accounts 672,676 643,939 Money market demand accounts 424,676 449,977 Platinum money market accounts 421,826 438,781 Interest bearing checking accounts 1,496,784 1,216,189 NOW demand accounts 13,601 18,376 CDs of $250,000 or more 120,387 68,950 CDs under $250,000 532,409 316,028 Total private accounts 3,682,359 3,152,240 Public accounts: Savings accounts 1,949 965 Money market demand accounts 33,871 32,487 Platinum money market accounts 365,720 371,032 Interest bearing checking accounts 89,320 100,581 NOW demand accounts 234,027 240,200 CDs of $250,000 or more 113,810 176,190 CDs under $250,000 5,401 3,857 Total public accounts 844,098 925,312 Total interest bearing deposits 4,526,457 4,077,552 Total deposits $ 6,198,019 $ 5,722,327 |
Time Deposit Maturities | At December 31, 2022, the scheduled maturities of CDs, including public accounts, were as follows (in thousands): 2023 $ 619,652 2024 124,823 2025 20,249 2026 2,791 2027 4,388 2028 and thereafter 104 $ 772,007 |
BORROWING ARRANGEMENTS (Tables)
BORROWING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Information related to borrowings is provided in the table below (dollars in thousands): December 31, 2022 December 31, 2021 Other borrowings: Balance at end of period $ 221,153 $ 23,219 Average amount outstanding during the period (1) 77,845 22,257 Maximum amount outstanding during the period (2) 316,563 24,549 Weighted average interest rate during the period (3) 2.4 % 0.2 % Interest rate at end of period (4) 4.1 % 0.2 % FHLB borrowings: Balance at end of period $ 153,358 $ 344,038 Average amount outstanding during the period (1) 135,926 665,384 Maximum amount outstanding during the period (2) 423,645 723,584 Weighted average interest rate during the period (3) 2.4 % 1.1 % Interest rate at end of period (4)(5) 4.7 % 1.3 % (1) The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period. (2) The maximum amount outstanding at any month-end during the period. (3) The weighted average interest rate during the period was computed by dividing the actual interest expense by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps. (4) Stated rate. (5) The interest rate on FHLB borrowings includes the effect of interest rate swaps. |
Schedule of maturities of borrowings | Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at December 31, 2022 are as follows (in thousands): Payments Due by Period Less than 1-2 Years 2-3 Years 3-4 Years 4-5 Years Thereafter Total Other borrowings $ 218,203 $ 2,950 $ — $ — $ — $ — $ 221,153 FHLB borrowings 150,709 740 772 485 406 246 153,358 Total obligations $ 368,912 $ 3,690 $ 772 $ 485 $ 406 $ 246 $ 374,511 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Information related to our long-term debt is summarized as follows for the periods presented (in thousands): December 31, 2022 December 31, 2021 Subordinated notes: (1) 3.875% Subordinated notes, net of unamortized debt issuance costs (2) $ 98,674 $ 98,534 Total Subordinated notes 98,674 98,534 Trust preferred subordinated debentures: (3) Southside Statutory Trust III, net of unamortized debt issuance costs (4) 20,573 20,568 Southside Statutory Trust IV 23,196 23,196 Southside Statutory Trust V 12,887 12,887 Magnolia Trust Company I 3,609 3,609 Total Trust preferred subordinated debentures 60,265 60,260 Total Long-term debt $ 158,939 $ 158,794 (1) This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. (2) The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $1.3 million at December 31, 2022 and $1.5 million at December 31, 2021. (3) This debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations. |
Schedule of subordinated borrowing | As of December 31, 2022, the details of the subordinated notes and the trust preferred subordinated debentures are summarized below (dollars in thousands): Date Issued Amount Issued Fixed or Floating Rate Interest Rate Maturity Date 3.875% Subordinated Notes November 6, 2020 $ 100,000 Fixed-to-Floating 3.875% November 15, 2030 Southside Statutory Trust III September 4, 2003 $ 20,619 Floating 3 month LIBOR + 2.94% September 4, 2033 Southside Statutory Trust IV August 8, 2007 $ 23,196 Floating 3 month LIBOR + 1.30% October 30, 2037 Southside Statutory Trust V August 10, 2007 $ 12,887 Floating 3 month LIBOR + 2.25% September 15, 2037 Magnolia Trust Company I (1) May 20, 2005 $ 3,609 Floating 3 month LIBOR + 1.80% November 23, 2035 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits Including Defined Benefit Plans and Share-based Compensation Plans [Abstract] | |
Schedule of changes in projected benefit obligation and fair value of plan assets | Years Ended December 31, 2022 2021 2020 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration (in thousands) Change in Projected Benefit Obligation: Benefit obligation at end of prior year $ 94,170 $ 3,483 $ 19,321 $ 96,848 $ 3,704 $ 18,789 $ 100,012 $ 4,870 $ 19,098 Service cost — — — — — — 1,793 — 429 Interest cost 2,741 102 578 2,570 92 520 3,031 162 568 Actuarial (gain) loss (22,997) (1,076) (3,763) (1,381) (155) 684 11,892 437 1,344 Benefits paid (3,950) (60) (673) (3,734) (59) (672) (6,596) (51) (688) Expenses paid (95) (70) — (133) (99) — (202) (113) — Curtailments — — — — — — (13,082) — (1,962) Settlements — — — — — — — (1,601) — Benefit obligation at end of year 69,869 2,379 15,463 94,170 3,483 19,321 96,848 3,704 18,789 Change in Plan Assets: Fair value of plan assets at end of prior year 97,439 3,871 — 90,419 3,613 — 93,818 4,763 — Actual return (16,659) (613) — 10,887 416 — 3,399 615 — Employer contributions — — 673 — — 672 — — 688 Benefits paid (3,950) (60) (673) (3,734) (59) (672) (6,596) (51) (688) Expenses paid (95) (70) — (133) (99) — (202) (113) — Settlements — — — — — — — (1,601) — Fair value of plan assets at end of year 76,735 3,128 — 97,439 3,871 — 90,419 3,613 — (Un)Funded status at end of year 6,866 749 (15,463) 3,269 388 (19,321) (6,429) (91) (18,789) Accrued benefit (liability) asset recognized $ 6,866 $ 749 $ (15,463) $ 3,269 $ 388 $ (19,321) $ (6,429) $ (91) $ (18,789) Accumulated benefit obligation at end of year $ 69,869 $ 2,379 $ 15,463 $ 94,170 $ 3,483 $ 19,321 $ 96,848 $ 3,704 $ 18,789 |
Schedule of amounts recognized in other comprehensive income (loss) | Amounts related to our defined benefit pension plans and restoration plan recognized as a component of other comprehensive income (loss) were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Recognition of net loss $ 640 $ — $ 255 $ 1,002 $ 6 $ 256 $ 2,474 $ 10 $ 551 Recognition of prior service (credit) cost — — — — — — (14) — 7 Recognition of loss due to settlement — — — — — — — 215 — Net gain (loss) occurring during the year 493 231 3,763 6,848 361 (685) (1,086) (124) 617 Net prior service cost occurring during the year — — — — — — 151 — 12 1,133 231 4,018 7,850 367 (429) 1,525 101 1,187 Deferred tax (expense) benefit (238) (48) (844) (1,648) (77) 90 (320) (21) (249) Other comprehensive income (loss), net of tax $ 895 $ 183 $ 3,174 $ 6,202 $ 290 $ (339) $ 1,205 $ 80 $ 938 |
Schedule of amounts in accumulated other comprehensive income (loss) recognized in net periodic benefit cost during period | Net amounts recognized in net periodic benefit cost and other comprehensive income (loss) were as follows (in thousands): December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Net loss $ 640 $ — $ 255 $ 1,002 $ 6 $ 256 Deferred tax expense (134) — (54) (211) — (54) Accumulated other comprehensive income (loss), net of tax $ 506 $ — $ 201 $ 791 $ 6 $ 202 |
Schedule of amounts recognized as a component of accumulated other comprehensive loss | Amounts recognized as a component of accumulated other comprehensive income (loss) were as follows (in thousands): December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Net gain (loss) $ (22,800) $ 100 $ (1,986) $ (23,933) $ (131) $ (6,004) Deferred tax (expense) benefit 4,788 (21) 417 5,026 27 1,261 Accumulated other comprehensive income (loss), net of tax $ (18,012) $ 79 $ (1,569) $ (18,907) $ (104) $ (4,743) |
Schedule of components of net periodic pension cost and postretirement benefit cost | Net periodic pension cost and postretirement benefit cost included the following components (in thousands): Years Ended December 31, 2022 2021 2020 Retirement Plan: Service cost $ — $ — $ 1,793 Interest cost 2,741 2,570 3,031 Expected return on assets (5,845) (5,420) (5,676) Net loss amortization 640 1,002 2,474 Prior service credit amortization — — (14) Loss due to curtailment — — 151 Net periodic benefit cost (income) $ (2,464) $ (1,848) $ 1,759 Acquired Retirement Plan: Service cost $ — $ — $ — Interest cost 102 92 162 Expected return on assets (232) (211) (301) Net loss amortization — 6 10 Prior service credit amortization — — — Loss recognized due to settlement — — 215 Net periodic benefit cost (income) $ (130) $ (113) $ 86 Restoration Plan: Service cost $ — $ — $ 429 Interest cost 578 520 568 Net loss amortization 255 256 551 Prior service cost amortization — — 7 Loss due to curtailment — — 12 Net periodic benefit cost $ 833 $ 776 $ 1,567 |
Schedule of assumptions used to determine benefit obligation and net periodic benefit cost | The assumptions used to determine the benefit obligation were as follows: December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Restoration Retirement Acquired Retirement Plan Restoration Discount rate 5.46 % 5.46 % 5.46 % 2.95 % 2.95 % 2.95 % The assumptions used to determine net periodic pension cost and postretirement benefit cost were as follows: Years Ended December 31, 2022 2021 2020 Retirement Plan: Discount rate 2.95 % 2.65 % 2.78 % Expected long-term rate of return on plan assets 6.13 % 6.13 % 6.50 % Compensation increase rate — — 3.50 % Acquired Retirement Plan: Discount rate 2.95 % 2.65 % 3.41 % Expected long-term rate of return on plan assets 6.13 % 6.13 % 6.50 % Compensation increase rate — — — Restoration Plan: Discount rate 2.95 % 2.65 % 2.78 % Compensation increase rate — — 3.50 % |
Schedule of allocation of plan assets | The major categories of assets in the Plan and the Acquired Retirement Plan are presented in the following table (in thousands). Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see “Note 12 – Fair Value Measurement”). Our Restoration Plan is unfunded. December 31, 2022 December 31, 2021 Retirement Acquired Retirement Plan Retirement Acquired Retirement Plan Level 1: Cash $ 605 $ — $ 3,495 $ — Equity securities: U.S. large cap (1) 23,032 1,103 27,692 1,351 U.S. mid cap (2) 3,594 135 7,556 151 U.S. small cap (3) 12,447 66 15,004 70 International developed (4) 8,161 — 9,768 — International emerging (2) 1,841 — 2,322 — International (5) — 547 — 775 Fixed income securities: Corporate bonds (6) — 1,027 — 1,277 U.S. government treasuries (6) 233 — 262 — Real estate (7) — 250 — 247 Level 2: Cash Equivalents 8,543 — 9,949 — Fixed income securities: Corporate bonds (6) 1,979 — 2,254 — U.S. government agencies (6) 4,380 — 5,437 — Municipal bonds (6) 11,774 — 13,508 — U.S. agency MBS (8) 146 — 192 — Total fair value of plan assets $ 76,735 $ 3,128 $ 97,439 $ 3,871 (1) For the Retirement Plan, this category is comprised of broadly diversified “passive” and “active” mutual funds. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks. (2) For the Retirement Plan, this category is comprised of broadly diversified “active” mutual funds. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds. (3) For the Retirement Plan, this category is comprised of broadly diversified “passive” and “active” mutual funds and shares of Southside Bancshares stock. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds. (4) This category is comprised of a broadly diversified “passive” and “active” mutual funds. (5) This category is comprised of pooled separate accounts invested in mutual funds and international stocks. (6) For the Retirement Plan, this category is comprised of individual investment grade securities that are generally HTM. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds, bonds and fixed income securities. (7) This category is comprised of a pooled separate account invested in commercial real estate and includes mortgage loans which are backed by the associated properties. (8) This category is comprised of individual securities that are generally not HTM. |
Schedule of expected future benefit payments related to pension and postretirement plans | As of December 31, 2022, expected future benefit payments related to the Retirement Plan, the Acquired Retirement Plan and the Restoration Plan were as follows (in thousands): Retirement Plan Acquired Retirement Plan Restoration 2023 $ 4,262 $ 79 $ 731 2024 4,459 84 749 2025 4,623 91 859 2026 4,883 91 1,161 2027 5,028 126 1,384 2028 through 2032 25,729 816 7,010 $ 48,984 $ 1,287 $ 11,894 |
Schedule of shares issued in connection with stock compensation awards along with other related information | Shares issued in connection with stock compensation awards along with other related information are presented in the following table (in thousands, except share amounts): Years Ended December 31, 2022 2021 2020 New shares issued from available treasury shares 86,500 305,212 116,661 Proceeds from stock option exercises $ 790 $ 7,672 $ 1,692 Intrinsic value of stock options exercised $ 421 $ 3,005 $ 881 |
Schedule of stock options and restricted stock units award activity | A combined summary of activity in our share-based plans as of December 31, 2022 is presented below: Restricted Stock Units Stock Options Service Based Performance Based Number Weighted- Number Weighted- Number Weighted- Weighted- Balance, January 1, 2022 177,015 $ 36.95 — $ — 713,767 $ 33.20 $ 6.45 Granted 122,039 36.21 8,343 41.74 — — — Stock options exercised — — — — (33,486) 27.94 5.96 Stock awards vested (65,092) 36.57 — — — — — Forfeited (7,368) 38.54 — — (7,270) 34.79 5.99 Canceled/expired — — — — — — — Balance, December 31, 2022 226,594 $ 36.61 8,343 $ 41.74 673,011 $ 33.45 $ 6.49 |
Schedule of shares stock option exercise price range | Other information regarding options outstanding and exercisable as of December 31, 2022 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted- Weighted- Number Weighted- $ 22.88 - $ 25.00 26,299 $ 23.06 1.19 26,299 $ 23.06 25.01 - 30.00 89,544 26.60 2.49 89,544 26.60 30.01 - 35.00 480,124 34.67 6.05 428,480 34.66 35.01 - 37.28 77,044 37.28 3.86 77,044 37.28 Total 673,011 $ 33.45 5.13 621,367 $ 33.33 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | |
Dec. 31, 2022 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of derivative instruments in statement of financial position, fair value | The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands): December 31, 2022 December 31, 2021 Estimated Fair Value Estimated Fair Value Notional Amount (1) Asset Derivative Liability Derivative Notional (1) Asset Derivative Liability Derivative Derivatives designated as hedging instruments Interest rate contracts: Swaps-Cash Flow Hedge-Financial institution counterparties $ 575,000 $ 39,527 $ — $ 605,000 $ 4,274 $ 5,866 Swaps-Fair Value Hedge-Financial institution counterparties 742,675 21,733 171 — — — Derivatives designated as non-hedging instruments Interest rate contracts: Swaps-Financial institution counterparties 223,124 21,046 — 214,379 545 13,412 Swaps-Customer counterparties 223,124 — 21,046 214,379 13,412 545 Gross derivatives 82,306 21,217 18,231 19,823 Offsetting derivative assets/liabilities (171) (171) (4,819) (4,819) Cash collateral received/posted (82,135) — — (12,810) Net derivatives included in the consolidated balance sheets (2) $ — $ 21,046 $ 13,412 $ 2,194 (1) Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. (2) Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At December 31, 2022, we had no credit exposure related to interest rate swaps with financial institutions and none related to interest rate swaps with customers. At December 31, 2021, we had no credit exposure related to interest rate swaps with financial institutions and $13.4 million related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged. | [1] |
Weighted average maturity and interest rates on risk management interest rate swaps | The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on fixed pay swaps are based on one-month or three-month LIBOR or overnight SOFR rates in effect at December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Weighted Average Weighted Average Notional Amount Remaining Maturity Receive Rate Pay Rate Notional Amount Remaining Maturity Receive Rate Pay Swaps-Cash Flow hedge Financial institution counterparties $ 575,000 2.3 4.44 % 1.13 % $ 605,000 3.2 0.13 % 1.10 % Swaps-Fair Value hedge Financial institution counterparties 742,675 6.3 3.42 % 3.21 % — — — — Swaps-Non-hedging Financial institution counterparties 223,124 9.0 4.83 % 2.69 % 214,379 10.3 0.47 % 2.42 % Customer counterparties 223,124 9.0 2.69 % 4.83 % 214,379 10.3 2.42 % 0.47 % | |
[1]Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At December 31, 2022, we had no credit exposure related to interest rate swaps with financial institutions and none related to interest rate swaps with customers. At December 31, 2021, we had no credit exposure related to interest rate swaps with financial institutions and $13.4 million related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value measurement on recurring and nonrecurring basis segregated by level of valuation inputs within fair value hierarchy utilized to measure fair value | The following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): December 31, 2022 Fair Value Measurements at the End of the Reporting Period Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring fair value measurements Investment securities: State and political subdivisions $ 964,852 $ — $ 964,852 $ — Corporate bonds and other 8,704 — 8,704 — MBS: (1) Residential 315,027 — 315,027 — Commercial 10,431 — 10,431 — Equity investments: Equity investments 5,235 5,235 — — Derivative assets: Interest rate swaps 82,306 — 82,306 — Total asset recurring fair value measurements $ 1,386,555 $ 5,235 $ 1,381,320 $ — Derivative liabilities: Interest rate swaps $ 21,217 $ — $ 21,217 $ — Total liability recurring fair value measurements $ 21,217 $ — $ 21,217 $ — Nonrecurring fair value measurements Foreclosed assets $ 167 $ — $ — $ 167 Collateral-dependent loans (2) 7,815 — — 7,815 Total asset nonrecurring fair value measurements $ 7,982 $ — $ — $ 7,982 December 31, 2021 Fair Value Measurements at the End of the Reporting Period Using Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring fair value measurements Investment securities: U.S. Treasury $ 58,877 $ 58,877 $ — $ — State and political subdivisions 2,051,936 — 2,051,936 — Corporate bonds and other 135,532 — 135,532 — MBS: (1) Residential 426,350 — 426,350 — Commercial 91,630 — 91,630 — Equity investments: Equity investments 5,920 5,920 — — Derivative assets: Interest rate swaps 18,231 — 18,231 — Total asset recurring fair value measurements $ 2,788,476 $ 64,797 $ 2,723,679 $ — Derivative liabilities: Interest rate swaps $ 19,823 $ — $ 19,823 $ — Total liability recurring fair value measurements $ 19,823 $ — $ 19,823 $ — Nonrecurring fair value measurements Collateral-dependent loans (2) $ 8,458 $ — $ — $ 8,458 Total asset nonrecurring fair value measurements $ 8,458 $ — $ — $ 8,458 (1) All MBS are issued and/or guaranteed by U.S. government agencies or U.S. GSEs. |
Financial assets, financial liabilities, and unrecognized financial instruments at carrying amount and fair value | The following tables present our financial assets and financial liabilities measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands): Estimated Fair Value December 31, 2022 Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 199,252 $ 199,252 $ 199,252 $ — $ — Investment securities: HTM, at carrying value 1,190,108 1,023,376 — 1,023,376 — MBS: HTM, at carrying value 136,621 125,780 — 125,780 — FHLB stock, at cost 9,190 9,190 — 9,190 — Equity investments 5,946 5,946 — 5,946 — Loans, net of allowance for loan losses 4,111,176 3,880,664 — — 3,880,664 Loans held for sale 667 667 — 667 — Financial Liabilities: Deposits $ 6,198,019 $ 6,158,517 $ — $ 6,158,517 $ — Other borrowings 221,153 221,153 — 221,153 — FHLB borrowings 153,358 140,976 — 140,976 — Subordinated notes, net of unamortized debt issuance costs 98,674 91,357 — 91,357 — Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,265 60,594 — 60,594 — Estimated Fair Value December 31, 2021 Carrying Total Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 201,753 $ 201,753 $ 201,753 $ — $ — Investment securities: HTM, at carrying value 788 791 — 791 — MBS: HTM, at carrying value 89,992 94,444 — 94,444 — FHLB stock, at cost 14,375 14,375 — 14,375 — Equity investments 5,921 5,921 — 5,921 — Loans, net of allowance for loan losses 3,609,889 3,748,116 — — 3,748,116 Loans held for sale 1,684 1,684 — 1,684 — Financial liabilities: Deposits $ 5,722,327 $ 5,721,694 $ — $ 5,721,694 $ — Other borrowings 23,219 23,219 — 23,219 — FHLB borrowings 344,038 346,604 — 346,604 — Subordinated notes, net of unamortized debt issuance costs 98,534 98,642 — 98,642 — Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,260 48,480 — 48,480 — |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of compliance with regulatory capital requirements under ranking regulations | As of December 31, 2022, the most recent notification from the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized we must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the following table (dollars in thousands). There are no conditions or events since that notification that management believes have changed our category. Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Common Equity Tier 1 (to Risk Weighted Assets) Consolidated $ 687,686 12.63 % $ 245,107 4.50 % N/A N/A Bank Only $ 823,323 15.12 % $ 245,085 4.50 % $ 354,012 6.50 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 746,140 13.70 % $ 326,809 6.00 % N/A N/A Bank Only $ 823,323 15.12 % $ 326,780 6.00 % $ 435,707 8.00 % Total Capital (to Risk Weighted Assets) Consolidated $ 877,281 16.11 % $ 435,746 8.00 % N/A N/A Bank Only $ 855,790 15.71 % $ 435,707 8.00 % $ 544,633 10.00 % Tier 1 Capital (to Average Assets) (1) Consolidated $ 746,140 9.96 % $ 299,511 4.00 % N/A N/A Bank Only $ 823,323 11.00 % $ 299,410 4.00 % $ 374,263 5.00 % December 31, 2021 Common Equity Tier 1 (to Risk Weighted Assets) Consolidated $ 657,043 14.17 % $ 208,616 4.50 % N/A N/A Bank Only $ 793,271 17.11 % $ 208,576 4.50 % $ 301,277 6.50 % Tier 1 Capital (to Risk Weighted Assets) Consolidated $ 715,492 15.43 % $ 278,155 6.00 % N/A N/A Bank Only $ 793,271 17.11 % $ 278,102 6.00 % $ 370,803 8.00 % Total Capital (to Risk Weighted Assets) Consolidated $ 841,300 18.15 % $ 370,874 8.00 % N/A N/A Bank Only $ 820,545 17.70 % $ 370,803 8.00 % $ 463,503 10.00 % Tier 1 Capital (to Average Assets) (1) Consolidated $ 715,492 10.33 % $ 277,065 4.00 % N/A N/A Bank Only $ 793,271 11.46 % $ 276,932 4.00 % $ 346,165 5.00 % (1) Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision | The income tax expense included in the accompanying consolidated statements of income consists of the following (in thousands): Years Ended December 31, 2022 2021 2020 Current income tax expense $ 14,700 $ 12,674 $ 15,766 Deferred income tax expense (benefit) (89) 4,752 (4,430) Income tax expense $ 14,611 $ 17,426 $ 11,336 |
Schedule of net deferred tax assets and liabilities | The components of the net deferred tax asset/liability as of December 31, 2022 and 2021 are summarized below (in thousands): Assets Liabilities Allowance for loan losses $ 7,668 $ Retirement and other benefit plans 2,435 Premises and equipment 9,269 Operating lease liabilities 3,585 Operating lease ROU assets 3,216 Core deposit intangible 548 Unrealized losses on securities AFS 44,299 Effective hedging derivatives 12,829 Fair value adjustment on loans 500 Unfunded status of defined benefit plan 5,184 State business tax credit 242 Stock-based compensation 1,177 Other 337 Gross deferred tax assets/liabilities 62,992 28,297 Net deferred tax asset at December 31, 2022 $ 34,695 Allowance for loan losses $ 7,407 $ Retirement and other benefit plans 1,927 Premises and equipment 9,062 Operating lease liabilities 3,502 Operating lease ROU assets 3,165 Core deposit intangible 913 Unrealized gains on securities AFS 22,562 Effective hedging derivatives 334 Fair value adjustment on loans 696 Unfunded status of defined benefit plan 6,314 State business tax credit 302 Stock-based compensation 1,043 Other 223 Gross deferred tax assets/liabilities 19,821 37,629 Net deferred tax liability at December 31, 2021 $ 17,808 |
Schedule of income tax reconciliation | A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands): Years Ended December 31, 2022 2021 2020 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Statutory tax expense $ 25,123 21.0 % $ 27,474 21.0 % $ 19,633 21.0 % Increase (decrease) in taxes from: Tax exempt interest (10,345) (8.6) % (9,636) (7.4) % (8,137) (8.7) % BOLI (555) (0.5) % (549) (0.4) % (536) (0.6) % Share-based compensation (93) (0.1) % (392) (0.3) % (70) (0.1) % State business tax 312 0.3 % 366 0.3 % 329 0.4 % Other, net 169 0.1 % 163 0.1 % 117 0.1 % Income tax expense $ 14,611 12.2 % $ 17,426 13.3 % $ 11,336 12.1 % |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases Balance Sheet Information | Balance sheet information related to leases was as follows (in thousands): December 31, 2022 December 31, 2021 Operating leases: Operating lease ROU assets $ 15,314 $ 15,073 Operating lease liabilities $ 17,070 $ 16,676 Additional information related to leases was as follows: December 31, 2022 December 31, 2021 Weighted average remaining lease term (in years) 13.8 14.9 Weighted average discount rate 2.98 % 2.90 % |
Lease Expense | The components of lease cost were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Operating lease cost $ 1,773 $ 1,811 $ 2,193 Supplemental cash flow information related to leases was as follows (in thousands): Years Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of the lease liabilities: Operating cash flows for operating leases $ 1,644 $ 2,016 $ 1,479 ROU assets obtained in exchange for new operating lease liabilities (1) $ 1,531 $ 1,330 $ 7,912 |
Lessee, Operating Lease, Liability, Maturity | Future minimum rental commitments due under non-cancelable operating leases at December 31, 2022 were as follows (in thousands): Year ending December 31, 2023 $ 1,559 2024 1,617 2025 1,619 2026 1,598 2027 1,494 2028 and thereafter 13,098 Total lease payments 20,985 Less: Interest (3,915) Present value of lease liabilities $ 17,070 |
Gross Rental Income | Gross rental income from these leases were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Gross rental income $ 3,173 $ 3,288 $ 3,277 |
Lessor, Operating Lease, Payments to be Received, Maturity | At December 31, 2022, non-cancelable operating leases with future minimum lease payments are as follows (in thousands): Year ending December 31, 2023 $ 3,290 2024 2,656 2025 2,041 2026 1,760 2027 1,014 2028 and thereafter 1,059 Total lease payments $ 11,820 |
OFF-BALANCE-SHEET ARRANGEMENT_2
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-balance-sheet, Allowance for off-balance-sheet credit exposures | Allowance for off-balance-sheet credit exposures were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of period $ 2,384 $ 6,386 $ 1,455 Impact of CECL adoption — — 4,840 Provision for (reversal of) off-balance-sheet credit exposures 1,303 (4,002) 91 Balance at end of period $ 3,687 $ 2,384 $ 6,386 |
Scheduled maturities of unused commitments | Financial instruments with off-balance-sheet risk were as follows (in thousands): December 31, 2022 December 31, 2021 Commitments to extend credit $ 1,296,773 $ 1,053,002 Standby letters of credit 26,844 12,708 Total $ 1,323,617 $ 1,065,710 |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets of Parent Company | Condensed financial information for Southside Bancshares, Inc. (parent company only) was as follows (in thousands, except share amounts): CONDENSED BALANCE SHEETS December 31, 2022 2021 ASSETS Cash and due from banks $ 20,235 $ 19,189 Investment in bank subsidiaries at equity in underlying net assets 879,449 1,046,215 Investment in nonbank subsidiaries at equity in underlying net assets 1,826 1,826 Other assets 4,411 4,384 Total assets $ 905,921 $ 1,071,614 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated notes, net of unamortized debt issuance costs $ 98,674 $ 98,534 Trust preferred subordinated debentures, net of unamortized debt issuance costs 60,265 60,260 Other liabilities 985 648 Total liabilities 159,924 159,442 Shareholders’ equity: Common stock: ($1.25 par value, 80,000,000 shares authorized, 38,000,822 shares issued at December 31, 2022 and 37,968,969 shares issued at December 31, 2021) 47,501 47,461 Paid-in capital 784,545 780,501 Retained earnings 239,610 179,813 Treasury stock: (shares at cost, 6,454,192 at December 31, 2022 and 5,616,917 at December 31, 2021) (188,203) (155,308) AOCI (137,456) 59,705 Total shareholders’ equity 745,997 912,172 Total liabilities and shareholders’ equity $ 905,921 $ 1,071,614 |
Condensed Statements of Income of Parent Company | CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2022 2021 2020 Income Dividends from subsidiary $ 85,000 $ 100,000 $ 72,000 Interest income 72 42 55 Total income 85,072 100,042 72,055 Expense Interest expense 6,412 9,636 8,129 Other 3,148 4,162 3,240 Total expense 9,560 13,798 11,369 Income before income tax expense 75,512 86,244 60,686 Income tax benefit 1,992 2,889 2,375 Income before equity in undistributed earnings of subsidiaries 77,504 89,133 63,061 Equity in undistributed earnings of subsidiaries 27,516 24,268 19,092 Net income $ 105,020 $ 113,401 $ 82,153 |
Condensed Statements of Cash Flow of Parent Company | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2022 2021 2020 OPERATING ACTIVITIES: Net Income $ 105,020 $ 113,401 $ 82,153 Adjustments to reconcile net income to net cash provided by operations: Amortization 145 277 202 Stock compensation expense 342 306 197 Equity in undistributed earnings of subsidiaries (27,516) (24,268) (19,092) Loss on redemption of subordinated notes — 1,118 — Net change in other assets (27) 348 (546) Net change in other liabilities 204 (1,732) (58) Net cash provided by operating activities 78,168 89,450 62,856 INVESTING ACTIVITIES: Net cash used in investing activities — — — FINANCING ACTIVITIES: Net proceeds from issuance of subordinated long-term debt — (95) 98,478 Redemption of subordinated notes — (100,011) — Purchase of common stock (33,708) (34,148) (30,989) Proceeds from issuance of common stock 1,522 8,546 2,723 Cash dividends paid (44,936) (44,569) (43,204) Net cash (used in) provided by financing activities (77,122) (170,277) 27,008 Net increase (decrease) in cash and cash equivalents 1,046 (80,827) 89,864 Cash and cash equivalents at beginning of period 19,189 100,016 10,152 Cash and cash equivalents at end of period $ 20,235 $ 19,189 $ 100,016 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) banking_offices segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Organization and Basis of Presentation [Abstract] | |||||
Number of branches | banking_offices | 55 | ||||
Number of branches in grocery stores | banking_offices | 13 | ||||
Segment Information [Abstract] | |||||
Number of reportable segments | segment | 1 | ||||
Cash and Cash Equivalents [Abstract] | |||||
Cash on deposit with the Federal Reserve required to meet regulatory reserve and clearing requirements | $ 0 | $ 0 | |||
Goodwill and Other Intangible Assets [Abstract] | |||||
Goodwill impairment loss | 0 | 0 | |||
Amortization expense of intangible assets | 2,273,000 | 2,849,000 | $ 3,617,000 | ||
Derivative Instruments and Hedges, Assets [Abstract] | |||||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 0 | ||||
Financing Receivable, Threshold Period Past Due | 90 days | ||||
Financing Receivable, Threshold Period Past Due, Writeoff | 120 days | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | 0 | |||
Equity balance | 745,997,000 | 912,172,000 | 875,297,000 | $ 804,580,000 | |
Retained Earnings | |||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||
Equity balance | 239,610,000 | 179,813,000 | 111,208,000 | 80,274,000 | |
Cumulative effect of accounting change | |||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||
Equity balance | (7,830,000) | ||||
Cumulative effect of accounting change | Retained Earnings | |||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||
Equity balance | $ 7,800,000 | $ (7,830,000) | |||
Core deposit intangible | |||||
Goodwill and Other Intangible Assets [Abstract] | |||||
Intangible assets, net | 2,600,000 | ||||
Trust relationship intangible | |||||
Goodwill and Other Intangible Assets [Abstract] | |||||
Intangible assets, net | 2,000,000 | ||||
Core Deposit Intangible and Trust Relationship Intangible [Member] | |||||
Goodwill and Other Intangible Assets [Abstract] | |||||
Amortization expense of intangible assets | $ 2,300,000 | $ 2,800,000 | $ 3,500,000 | ||
Premises | Minimum | |||||
Premises and Equipment [Abstract] | |||||
Estimated useful life | 15 years | ||||
Premises | Maximum | |||||
Premises and Equipment [Abstract] | |||||
Estimated useful life | 40 years | ||||
Equipment | Minimum | |||||
Premises and Equipment [Abstract] | |||||
Estimated useful life | 3 years | ||||
Equipment | Maximum | |||||
Premises and Equipment [Abstract] | |||||
Estimated useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Reclassifications (Details) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle | |||||
Equity balance | $ 875,297,000 | $ 745,997,000 | $ 912,172,000 | $ 804,580,000 | |
Impact of CECL adoption - purchased loans with credit deterioration | $ 231,000 | ||||
Cumulative effect of accounting change | |||||
New Accounting Pronouncements or Change in Accounting Principle | |||||
Equity balance | (7,830,000) | ||||
Impact of CECL adoption - purchased loans with credit deterioration | 231,000 | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle | |||||
Equity balance | $ 111,208,000 | $ 239,610,000 | $ 179,813,000 | 80,274,000 | |
Retained Earnings | Cumulative effect of accounting change | |||||
New Accounting Pronouncements or Change in Accounting Principle | |||||
Equity balance | $ 7,800,000 | $ (7,830,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic and Diluted Earnings: | |||
Net income | $ 105,020 | $ 113,401 | $ 82,153 |
Basic weighted-average shares outstanding (in shares) | 32,120 | 32,558 | 33,201 |
Add: Stock options (in shares) | 131 | 134 | 80 |
Diluted weighted-average shares outstanding (in shares) | 32,251 | 32,692 | 33,281 |
Basic earnings per share: | |||
Earnings per common share - basic (in dollars per share) | $ 3.27 | $ 3.48 | $ 2.47 |
Diluted earnings per share: | |||
Earnings per common share - diluted (in dollars per share) | $ 3.26 | $ 3.47 | $ 2.47 |
Number of antidilutive options (in shares) | 14 | 9 | 808 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Income, Changes In (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance, net of tax | $ 912,172 | $ 875,297 | $ 804,580 |
Income tax (expense) benefit | 52,410 | 2,492 | (17,237) |
Ending balance, net of tax | 745,997 | 912,172 | 875,297 |
Unrealized Gains (Losses) on Securities | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance, net of tax | 84,716 | 116,078 | 38,038 |
Other comprehensive income (loss) before reclassifications | (304,859) | (37,199) | 105,845 |
Reclassification adjustments included in net income | 8,787 | (2,499) | (7,060) |
Income tax (expense) benefit | 62,175 | 8,336 | (20,745) |
Net current-period other comprehensive income (loss), net of tax | (233,897) | (31,362) | 78,040 |
Ending balance, net of tax | (149,181) | 84,716 | 116,078 |
Unrealized Gains (Losses) on Derivatives | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance, net of tax | (1,257) | (17,091) | (1,672) |
Other comprehensive income (loss) before reclassifications | 44,757 | 13,648 | (23,462) |
Reclassification adjustments included in net income | (3,638) | 6,395 | 3,945 |
Income tax (expense) benefit | (8,635) | (4,209) | 4,098 |
Net current-period other comprehensive income (loss), net of tax | 32,484 | 15,834 | (15,419) |
Ending balance, net of tax | 31,227 | (1,257) | (17,091) |
Retirement Plans | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance, net of tax | (23,754) | (29,907) | (32,130) |
Other comprehensive income (loss) before reclassifications | 4,487 | 6,524 | (215) |
Reclassification adjustments included in net income | 895 | 1,264 | 3,028 |
Income tax (expense) benefit | (1,130) | (1,635) | (590) |
Net current-period other comprehensive income (loss), net of tax | 4,252 | 6,153 | 2,223 |
Ending balance, net of tax | (19,502) | (23,754) | (29,907) |
Total | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning balance, net of tax | 59,705 | 69,080 | 4,236 |
Other comprehensive income (loss) before reclassifications | (255,615) | (17,027) | 82,168 |
Reclassification adjustments included in net income | 6,044 | 5,160 | (87) |
Income tax (expense) benefit | 52,410 | 2,492 | (17,237) |
Net current-period other comprehensive income (loss), net of tax | (197,161) | (9,375) | 64,844 |
Ending balance, net of tax | $ (137,456) | $ 59,705 | $ 69,080 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of unrealized gains and losses | $ 4,968 | $ 1,363 | $ 1,197 | |
Tax benefit (expense) | (14,611) | (17,426) | (11,336) | |
Realized net (loss) gain on sale of securities | (3,819) | 3,862 | 8,257 | |
Total reclassifications for the period, net of tax | (4,775) | (4,077) | 69 | |
Unrealized gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from accumulated other comprehensive income (loss) | (8,787) | 2,499 | 7,060 | |
Realized net gain (loss) on interest rate swap derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from accumulated other comprehensive income (loss) | 3,638 | (6,395) | (3,945) | |
Net actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from accumulated other comprehensive income (loss) | [1] | (895) | (1,264) | (3,035) |
Prior service credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from accumulated other comprehensive income (loss) | [1] | 0 | 0 | 7 |
Amortization of retirement plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassified from accumulated other comprehensive income (loss) | (895) | (1,264) | (3,028) | |
Tax benefit | 188 | 265 | 636 | |
Total reclassifications for the period, net of tax | (707) | (999) | (2,392) | |
Unrealized losses on securities transferred | Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of unrealized gains and losses | [2] | (4,968) | (1,363) | (1,197) |
Tax benefit (expense) | 1,043 | 286 | 251 | |
Net of tax | (3,925) | (1,077) | (946) | |
Unrealized gains and losses on available for sale securities | Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit (expense) | 802 | (811) | (1,734) | |
Net of tax | (3,017) | 3,051 | 6,523 | |
Realized net (loss) gain on sale of securities | [3] | (3,819) | 3,862 | 8,257 |
Interest rate swap derivatives | Reclassification out of accumulated other comprehensive income | Realized net gain (loss) on interest rate swap derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit (expense) | (764) | 1,343 | 834 | |
Net of tax | 2,874 | (5,052) | (3,136) | |
Realized net gain (loss) on interest rate swaps | [4] | 3,638 | (6,395) | (3,970) |
Interest rate swap derivatives | Reclassification out of accumulated other comprehensive income | Amortization of unrealized gains on terminated interest rate swap derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit (expense) | 0 | 0 | (5) | |
Net of tax | 0 | 0 | 20 | |
Realized net gain (loss) on interest rate swaps | [4] | $ 0 | $ 0 | $ 25 |
[1]These AOCI components are included in the computation of net periodic pension cost (income) presented in “Note 10 – Employee Benefits.” |
SECURITIES - Schedule of Debt S
SECURITIES - Schedule of Debt Securities Components (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
AVAILABLE FOR SALE: | |||
Amortized cost | $ 1,387,874 | $ 2,655,594 | |
Gross unrealized gain | 1,282 | 113,681 | |
Gross unrealized loss | 90,142 | 4,950 | |
Securities available for sale, at estimated fair value | 1,299,014 | 2,764,325 | |
HELD TO MATURITY: | |||
Amortized Cost | 1,326,729 | 90,780 | |
Gross unrealized gains | 4,565 | 4,455 | |
Gross unrealized losses | 182,138 | 0 | |
Estimated fair value | 1,149,156 | 95,235 | |
US Treasury Securities | |||
AVAILABLE FOR SALE: | |||
Amortized cost | 58,084 | ||
Gross unrealized gain | 843 | ||
Gross unrealized loss | 50 | ||
Securities available for sale, at estimated fair value | 58,877 | ||
State and Political Subdivisions | |||
AVAILABLE FOR SALE: | |||
Amortized cost | 1,039,453 | 1,962,257 | |
Gross unrealized gain | 956 | 93,893 | |
Gross unrealized loss | 75,557 | 4,214 | |
Securities available for sale, at estimated fair value | 964,852 | 2,051,936 | |
HELD TO MATURITY: | |||
Amortized Cost | 1,037,556 | 788 | |
Gross unrealized gains | 3,969 | 3 | |
Gross unrealized losses | 163,283 | 0 | |
Estimated fair value | 878,242 | 791 | |
Corporate bonds and other | |||
AVAILABLE FOR SALE: | |||
Amortized cost | 8,692 | 133,333 | |
Gross unrealized gain | 26 | 2,408 | |
Gross unrealized loss | 14 | 209 | |
Securities available for sale, at estimated fair value | 8,704 | 135,532 | |
HELD TO MATURITY: | |||
Amortized Cost | 152,552 | ||
Gross unrealized gains | 575 | ||
Gross unrealized losses | 7,993 | ||
Estimated fair value | 145,134 | ||
Residential | |||
AVAILABLE FOR SALE: | |||
Amortized cost | [1] | 328,400 | 411,727 |
Gross unrealized gain | [1] | 250 | 14,895 |
Gross unrealized loss | [1] | 13,623 | 272 |
Securities available for sale, at estimated fair value | [1] | 315,027 | 426,350 |
HELD TO MATURITY: | |||
Amortized Cost | [1] | 93,796 | 38,644 |
Gross unrealized gains | [1] | 21 | 2,103 |
Gross unrealized losses | [1] | 8,343 | 0 |
Estimated fair value | [1] | 85,474 | 40,747 |
Commercial | |||
AVAILABLE FOR SALE: | |||
Amortized cost | [1] | 11,329 | 90,193 |
Gross unrealized gain | [1] | 50 | 1,642 |
Gross unrealized loss | [1] | 948 | 205 |
Securities available for sale, at estimated fair value | [1] | 10,431 | 91,630 |
HELD TO MATURITY: | |||
Amortized Cost | [1] | 42,825 | 51,348 |
Gross unrealized gains | [1] | 0 | 2,349 |
Gross unrealized losses | [1] | 2,519 | 0 |
Estimated fair value | [1] | $ 40,306 | $ 53,697 |
[1]All MBS issued and/or guaranteed by U.S. government agencies or U.S. GSEs. |
SECURITIES - Unrealized Loss on
SECURITIES - Unrealized Loss on Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
AVAILABLE FOR SALE | ||
Less than 12 Months, fair value | $ 1,174,855 | $ 311,552 |
Less than 12 Months, unrealized loss | 82,638 | 3,891 |
More than 12 Months, fair value | 29,165 | 17,450 |
More than 12 Months, unrealized loss | 7,504 | 1,059 |
Total fair value | 1,204,020 | 329,002 |
Total unrealized loss | 90,142 | 4,950 |
HELD TO MATURITY | ||
Less than 12 months, fair value | 672,739 | |
Less than 12 Months, unrealized loss | 83,876 | |
More than 12 months, fair value | 340,055 | |
More than 12 Months, unrealized loss | 98,262 | |
Total fair value | 1,012,794 | |
Total unrealized loss | 182,138 | |
US Treasury Securities | ||
AVAILABLE FOR SALE | ||
Less than 12 Months, fair value | 9,947 | |
Less than 12 Months, unrealized loss | 50 | |
More than 12 Months, fair value | 0 | |
More than 12 Months, unrealized loss | 0 | |
Total fair value | 9,947 | |
Total unrealized loss | 50 | |
State and Political Subdivisions | ||
AVAILABLE FOR SALE | ||
Less than 12 Months, fair value | 859,270 | 260,509 |
Less than 12 Months, unrealized loss | 68,683 | 3,622 |
More than 12 Months, fair value | 26,620 | 7,608 |
More than 12 Months, unrealized loss | 6,874 | 592 |
Total fair value | 885,890 | 268,117 |
Total unrealized loss | 75,557 | 4,214 |
HELD TO MATURITY | ||
Less than 12 months, fair value | 426,382 | |
Less than 12 Months, unrealized loss | 66,898 | |
More than 12 months, fair value | 323,385 | |
More than 12 Months, unrealized loss | 96,385 | |
Total fair value | 749,767 | |
Total unrealized loss | 163,283 | |
Corporate bonds and other | ||
AVAILABLE FOR SALE | ||
Less than 12 Months, fair value | 3,678 | 35,597 |
Less than 12 Months, unrealized loss | 14 | 209 |
More than 12 Months, fair value | 0 | 0 |
More than 12 Months, unrealized loss | 0 | 0 |
Total fair value | 3,678 | 35,597 |
Total unrealized loss | 14 | 209 |
HELD TO MATURITY | ||
Less than 12 months, fair value | 125,250 | |
Less than 12 Months, unrealized loss | 6,660 | |
More than 12 months, fair value | 12,738 | |
More than 12 Months, unrealized loss | 1,333 | |
Total fair value | 137,988 | |
Total unrealized loss | 7,993 | |
Residential | ||
AVAILABLE FOR SALE | ||
Less than 12 Months, fair value | 306,294 | 1,225 |
Less than 12 Months, unrealized loss | 13,623 | 3 |
More than 12 Months, fair value | 0 | 5,168 |
More than 12 Months, unrealized loss | 0 | 269 |
Total fair value | 306,294 | 6,393 |
Total unrealized loss | 13,623 | 272 |
HELD TO MATURITY | ||
Less than 12 months, fair value | 80,801 | |
Less than 12 Months, unrealized loss | 7,799 | |
More than 12 months, fair value | 3,932 | |
More than 12 Months, unrealized loss | 544 | |
Total fair value | 84,733 | |
Total unrealized loss | 8,343 | |
Commercial | ||
AVAILABLE FOR SALE | ||
Less than 12 Months, fair value | 5,613 | 4,274 |
Less than 12 Months, unrealized loss | 318 | 7 |
More than 12 Months, fair value | 2,545 | 4,674 |
More than 12 Months, unrealized loss | 630 | 198 |
Total fair value | 8,158 | 8,948 |
Total unrealized loss | 948 | $ 205 |
HELD TO MATURITY | ||
Less than 12 months, fair value | 40,306 | |
Less than 12 Months, unrealized loss | 2,519 | |
More than 12 months, fair value | 0 | |
More than 12 Months, unrealized loss | 0 | |
Total fair value | 40,306 | |
Total unrealized loss | $ 2,519 |
SECURITIES - Interest Income on
SECURITIES - Interest Income on Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
U.S. Treasury | $ 271 | $ 615 | $ 0 |
State and Political Subdivisions | 57,663 | 46,296 | 36,393 |
Corporate bonds and other | 6,007 | 4,131 | 1,195 |
Mortgage-backed Securities | 16,639 | 19,534 | 34,319 |
Total interest income on securities | $ 80,580 | $ 70,576 | $ 71,907 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Estimated Fair Value of Investments in Debt Securities By Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available for sale, Amortized Cost | ||
Due in one year or less | $ 528 | |
Due after one year through five years | 1,485 | |
Due after five years through ten years | 57,795 | |
Due after ten years | 988,337 | |
Total available-for-sale investment securities | 1,048,145 | |
Mortgage-backed Securities | 339,729 | |
Amortized cost | 1,387,874 | $ 2,655,594 |
Available for sale Securities, Fair Value | ||
Due in one year or less | 529 | |
Due after one year through five years | 1,498 | |
Due after five years through ten years | 57,890 | |
Due after ten years | 913,639 | |
Subtotal | 973,556 | |
Mortgage-backed Securities and Other Equity Securities | 325,458 | |
Total | 1,299,014 | 2,764,325 |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 125 | |
Due after one year through five years | 24,810 | |
Due after five years through ten years | 133,794 | |
Due after ten years | 1,031,379 | |
Subtotal | 1,190,108 | |
Mortgage-backed Securities | 136,621 | |
Amortized Cost | 1,326,729 | 90,780 |
Held to Maturity, Fair Value | ||
Due in one year or less | 124 | |
Due after one year through five years | 24,615 | |
Due after five years through ten years | 126,505 | |
Due after ten years | 872,132 | |
Subtotal | 1,023,376 | |
Mortgage-backed Securities | 125,780 | |
Total | $ 1,149,156 | $ 95,235 |
SECURITIES - Unrealized and Rea
SECURITIES - Unrealized and Realized Gain (Loss) Recognized in Net Income on Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | |||
Net gains (losses) recognized during the period on equity investments | $ (685) | $ (174) | $ (427) |
Less: Net gains recognized during the period on equity investments sold during the period | 0 | 0 | 0 |
Unrealized gains (losses) recognized during the reporting period on equity investments still held at the reporting date | $ (685) | $ (174) | $ (427) |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investment [Line Items] | |||
Debt Securities, Held-to-maturity, Nonaccrual | $ 0 | $ 0 | |
Interest receivable | 49,350,000 | 39,145,000 | |
Transferred Securities, Unrealized Loss, Before Tax | 121,500,000 | 1,500,000 | |
Securities Transferred, Unrealized Loss, Net Of Tax | 96,000,000 | 1,200,000 | |
Fair value of securities transferred from AFS to HTM | 1,250,000,000 | 0 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Net gain (loss) on sale of securities available for sale | (3,819,000) | 3,862,000 | $ 8,257,000 |
Gross realized gains on AFS securities | 584,000 | 4,100,000 | 8,400,000 |
Gross realized loss on AFS securities | 4,400,000 | 218,000 | 129,000 |
Equity investments | 11,181,000 | 11,841,000 | |
Debt Securities, Held-to-maturity, Sale or Transfer of Investment [Abstract] | |||
Proceeds from sale of held-to-maturity securities | 0 | 0 | $ 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | |
Other-than-temporarily impaired equity investments | 0 | ||
FHLB Stock with other-than-temporary impairment | 0 | ||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Credit Loss Expense (Reversal) | $ 0 | 0 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | 687 | ||
Asset Pledged as Collateral | |||
Debt Securities, Held-to-maturity, Sale or Transfer of Investment [Abstract] | |||
Debt Securities | $ 1,820,000,000 | 1,610,000,000 | |
Financial Asset, Past Due | |||
Debt Securities, Held-to-maturity, Sale or Transfer of Investment [Abstract] | |||
Securities HTM (estimated fair value of $138,879) | 0 | 0 | |
Available-for-sale Securities [Member] | |||
Investment [Line Items] | |||
Interest receivable | 16,900,000 | 25,600,000 | |
Held-to-maturity Securities [Member] | |||
Investment [Line Items] | |||
Interest receivable | $ 13,600,000 | $ 244,000 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | $ 4,147,691 | $ 3,645,162 | ||
Less: Allowance for loan losses | 36,515 | 35,273 | $ 49,006 | $ 24,797 |
Total loans | 4,111,176 | 3,609,889 | ||
Construction real estate loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | 559,681 | 447,860 | ||
Less: Allowance for loan losses | 3,164 | 3,787 | 6,490 | 3,539 |
1-4 family residential real estate loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | 663,519 | 651,140 | ||
Less: Allowance for loan losses | 2,173 | 1,866 | 2,270 | 3,833 |
Commercial real estate loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | 1,987,707 | 1,598,172 | ||
Less: Allowance for loan losses | 28,701 | 26,980 | 35,709 | 9,572 |
Commercial loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | 412,064 | 418,998 | ||
Less: Allowance for loan losses | 2,235 | 2,397 | 4,107 | 6,351 |
Municipal loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | 450,067 | 443,078 | ||
Less: Allowance for loan losses | 45 | 47 | 46 | 570 |
Loans to individuals | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans | 74,653 | 85,914 | ||
Less: Allowance for loan losses | $ 197 | $ 196 | $ 384 | $ 932 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loans by Credit Quality Indicator and Origination Year (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | $ 1,262,330 | $ 1,254,660 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,055,361 | 564,191 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 422,026 | 444,235 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 290,975 | 220,201 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 128,067 | 241,060 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 630,012 | 595,557 |
Financing Receivable, Excluding Accrued Interest, Revolving | 358,920 | 325,258 |
Loans | 4,147,691 | 3,645,162 |
Construction real estate loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 171,809 | 179,521 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 184,835 | 82,862 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 34,537 | 38,788 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 7,456 | 5,716 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 1,886 | 2,126 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 6,628 | 6,255 |
Financing Receivable, Excluding Accrued Interest, Revolving | 152,530 | 132,592 |
Loans | 559,681 | 447,860 |
Construction real estate loans | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 169,652 | 179,521 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 184,501 | 82,862 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 34,537 | 38,788 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 7,091 | 5,666 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 1,844 | 2,126 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 6,434 | 6,080 |
Financing Receivable, Excluding Accrued Interest, Revolving | 152,530 | 132,592 |
Loans | 556,589 | 447,635 |
Construction real estate loans | Pass Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 299 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 299 | 0 |
Construction real estate loans | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 1,858 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 290 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 2,148 | 0 |
Construction real estate loans | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 10 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 42 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 194 | 175 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 246 | 175 |
Construction real estate loans | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 44 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 355 | 50 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 399 | 50 |
1-4 family residential real estate loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 82,850 | 141,115 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 144,424 | 130,166 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 128,962 | 81,662 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 70,196 | 47,566 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 38,312 | 34,531 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 196,572 | 213,774 |
Financing Receivable, Excluding Accrued Interest, Revolving | 2,203 | 2,326 |
Loans | 663,519 | 651,140 |
1-4 family residential real estate loans | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 82,847 | 141,058 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 144,424 | 129,681 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 128,666 | 81,607 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 70,142 | 47,566 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 36,710 | 34,236 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 194,490 | 209,470 |
Financing Receivable, Excluding Accrued Interest, Revolving | 2,160 | 2,238 |
Loans | 659,439 | 645,856 |
1-4 family residential real estate loans | Pass Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 777 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 0 | 777 |
1-4 family residential real estate loans | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 82 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 79 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 1,397 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 1,476 | 82 |
1-4 family residential real estate loans | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 3 | 57 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 403 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 217 | 55 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 54 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 32 | 295 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1,942 | 3,257 |
Financing Receivable, Excluding Accrued Interest, Revolving | 43 | 88 |
Loans | 2,291 | 4,155 |
1-4 family residential real estate loans | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 173 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 140 | 270 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 313 | 270 |
Commercial real estate loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 798,653 | 672,970 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 556,157 | 210,099 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 170,720 | 225,133 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 151,449 | 119,461 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 55,855 | 143,887 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 242,558 | 219,056 |
Financing Receivable, Excluding Accrued Interest, Revolving | 12,315 | 7,566 |
Loans | 1,987,707 | 1,598,172 |
Commercial real estate loans | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 798,653 | 648,002 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 546,938 | 207,370 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 168,607 | 209,923 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 136,440 | 114,788 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 55,480 | 143,350 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 233,509 | 209,368 |
Financing Receivable, Excluding Accrued Interest, Revolving | 12,315 | 7,566 |
Loans | 1,951,942 | 1,540,367 |
Commercial real estate loans | Pass Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 21,669 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 9,219 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 2,163 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 3,074 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 374 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 9,219 | 27,280 |
Commercial real estate loans | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 2,062 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 1,832 | 2,217 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 330 | 119 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 115 | 163 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1,849 | 1,877 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 4,126 | 6,438 |
Commercial real estate loans | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 3,299 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 667 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 281 | 10,830 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 14,603 | 1,480 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 260 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 6,992 | 7,691 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 22,136 | 23,967 |
Commercial real estate loans | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 76 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 208 | 120 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 284 | 120 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 114,174 | 140,635 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 73,847 | 52,232 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 18,009 | 25,466 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 8,445 | 14,122 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 5,330 | 2,532 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 3,322 | 4,291 |
Financing Receivable, Excluding Accrued Interest, Revolving | 188,937 | 179,720 |
Loans | 412,064 | 418,998 |
Commercial loans | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 113,678 | 140,628 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,509 | 51,866 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 17,852 | 24,688 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 8,249 | 13,204 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 4,820 | 2,516 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 3,313 | 4,062 |
Financing Receivable, Excluding Accrued Interest, Revolving | 178,951 | 178,263 |
Loans | 395,372 | 415,227 |
Commercial loans | Pass Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 208 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 13 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 56 | 280 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 22 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 277 | 302 |
Commercial loans | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 5,109 | 57 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 31 | 78 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 363 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 288 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 157 |
Financing Receivable, Excluding Accrued Interest, Revolving | 9,986 | 0 |
Loans | 15,414 | 655 |
Commercial loans | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 220 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 116 | 283 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 70 | 296 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 110 | 174 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12 | 16 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 9 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 1,457 |
Loans | 537 | 2,226 |
Commercial loans | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 68 | 7 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 100 | 26 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 124 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 86 | 359 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 210 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 72 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 464 | 588 |
Municipal loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 65,258 | 80,167 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 74,617 | 64,803 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 57,147 | 61,348 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 48,144 | 29,168 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 24,979 | 56,274 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 179,922 | 151,318 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 450,067 | 443,078 |
Municipal loans | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 65,258 | 80,167 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 74,617 | 64,803 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 57,147 | 61,348 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 47,636 | 29,168 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 24,576 | 56,274 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 173,919 | 151,318 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 443,153 | 443,078 |
Municipal loans | Pass Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 508 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 403 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 6,003 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 6,914 | 0 |
Municipal loans | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 0 | 0 |
Municipal loans | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 0 | 0 |
Municipal loans | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 0 | 0 |
Loans to individuals | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 29,586 | 40,252 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 21,481 | 24,029 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 12,651 | 11,838 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 5,285 | 4,168 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 1,705 | 1,710 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1,010 | 863 |
Financing Receivable, Excluding Accrued Interest, Revolving | 2,935 | 3,054 |
Loans | 74,653 | 85,914 |
Loans to individuals | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 29,579 | 40,252 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 21,480 | 24,028 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 12,651 | 11,813 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 5,261 | 4,121 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 1,665 | 1,684 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1,005 | 849 |
Financing Receivable, Excluding Accrued Interest, Revolving | 2,935 | 3,052 |
Loans | 74,576 | 85,799 |
Loans to individuals | Pass Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 0 | 0 |
Loans to individuals | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 36 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | 0 | 36 |
Loans to individuals | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1 | 1 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 24 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 6 | 4 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 23 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 2 | 10 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 2 |
Loans | 9 | 64 |
Loans to individuals | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 7 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 1 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 18 | 7 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 40 | 3 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 3 | 4 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans | $ 68 | $ 15 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging of Past Due Loans by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 4,147,691 | $ 3,645,162 |
Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,141,558 | 3,636,828 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,395 | 6,507 |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 822 | 956 |
Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 916 | 871 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,133 | 8,334 |
Construction real estate loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 559,681 | 447,860 |
Construction real estate loans | Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 559,617 | 447,720 |
Construction real estate loans | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 43 | 82 |
Construction real estate loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 21 | 58 |
Construction real estate loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Construction real estate loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 64 | 140 |
1-4 family residential real estate loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 663,519 | 651,140 |
1-4 family residential real estate loans | Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 659,408 | 647,081 |
1-4 family residential real estate loans | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,529 | 3,226 |
1-4 family residential real estate loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 368 | 606 |
1-4 family residential real estate loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 214 | 227 |
1-4 family residential real estate loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,111 | 4,059 |
Commercial real estate loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,987,707 | 1,598,172 |
Commercial real estate loans | Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,987,034 | 1,596,882 |
Commercial real estate loans | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 105 | 1,191 |
Commercial real estate loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 153 | 0 |
Commercial real estate loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 415 | 99 |
Commercial real estate loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 673 | 1,290 |
Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 412,064 | 418,998 |
Commercial loans | Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 411,025 | 416,687 |
Commercial loans | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 515 | 1,523 |
Commercial loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 277 | 251 |
Commercial loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 247 | 537 |
Commercial loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,039 | 2,311 |
Municipal loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 450,067 | 443,078 |
Municipal loans | Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 450,067 | 442,908 |
Municipal loans | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 170 |
Municipal loans | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Municipal loans | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Municipal loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 170 |
Loans to individuals | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 74,653 | 85,914 |
Loans to individuals | Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 74,407 | 85,550 |
Loans to individuals | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 203 | 315 |
Loans to individuals | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3 | 41 |
Loans to individuals | Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 40 | 8 |
Loans to individuals | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 246 | $ 364 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Nonperforming Assets by Asset Class (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Nonperforming Assets [Line Items] | |||
Restructured Nonaccrual Loans | $ 897 | $ 1,100 | |
Nonperforming Assets | |||
Nonperforming Assets [Line Items] | |||
Nonaccrual loans: | [1] | 2,846 | 2,536 |
Accruing loans past due more than 90 days | 0 | 0 | |
TDR loans | 7,849 | 9,073 | |
OREO | 93 | 0 | |
Repossessed assets | 74 | 0 | |
Total nonperforming assets | 10,862 | 11,609 | |
Nonperforming Assets | Construction real estate loans | |||
Nonperforming Assets [Line Items] | |||
Nonaccrual loans: | 405 | 57 | |
Nonperforming Assets | 1-4 family residential real estate loans | |||
Nonperforming Assets [Line Items] | |||
Nonaccrual loans: | 848 | 969 | |
Nonperforming Assets | Commercial real estate loans | |||
Nonperforming Assets [Line Items] | |||
Nonaccrual loans: | 762 | 668 | |
Nonperforming Assets | Commercial loans | |||
Nonperforming Assets [Line Items] | |||
Nonaccrual loans: | 757 | 815 | |
Nonperforming Assets | Loans to individuals | |||
Nonperforming Assets [Line Items] | |||
Nonaccrual loans: | $ 74 | $ 27 | |
[1]Includes $897,000 and $1.1 million |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | Dec. 31, 2020 USD ($) contract | |
Troubled Debt Restructuring [Abstract] | |||
Number of Loans | contract | 7 | 11 | 8 |
Total modifications | $ 319 | $ 1,110 | $ 521 |
Extend Amortization Period | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | 51 |
Interest Rate Reductions | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 16 | 0 |
Combination | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | $ 319 | $ 1,094 | $ 470 |
1-4 family residential real estate loans | |||
Troubled Debt Restructuring [Abstract] | |||
Number of Loans | contract | 4 | 7 | |
Total modifications | $ 305 | $ 560 | |
1-4 family residential real estate loans | Extend Amortization Period | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | |
1-4 family residential real estate loans | Interest Rate Reductions | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | |
1-4 family residential real estate loans | Combination | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | $ 305 | $ 560 | |
Commercial real estate loans | |||
Troubled Debt Restructuring [Abstract] | |||
Number of Loans | contract | 1 | 1 | |
Total modifications | $ 450 | $ 58 | |
Commercial real estate loans | Extend Amortization Period | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | |
Commercial real estate loans | Interest Rate Reductions | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | |
Commercial real estate loans | Combination | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | $ 450 | $ 58 | |
Commercial loans | |||
Troubled Debt Restructuring [Abstract] | |||
Number of Loans | contract | 1 | 3 | 6 |
Total modifications | $ 6 | $ 100 | $ 441 |
Commercial loans | Extend Amortization Period | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | 51 |
Commercial loans | Interest Rate Reductions | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 16 | 0 |
Commercial loans | Combination | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | $ 6 | $ 84 | $ 390 |
Loans to individuals | |||
Troubled Debt Restructuring [Abstract] | |||
Number of Loans | contract | 2 | 1 | |
Total modifications | $ 8 | $ 22 | |
Loans to individuals | Extend Amortization Period | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | |
Loans to individuals | Interest Rate Reductions | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | 0 | 0 | |
Loans to individuals | Combination | |||
Troubled Debt Restructuring [Abstract] | |||
Total modifications | $ 8 | $ 22 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses Activity by Portfolio Segment (Details) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | $ 24,797,000 | $ 35,273,000 | $ 49,006,000 | $ 24,797,000 | |
Impact of CECL adoption - purchased loans with credit deterioration | 231,000 | ||||
Loans charged-off | (2,584,000) | (2,751,000) | (2,854,000) | ||
Recoveries of loans charged-off | 1,888,000 | 1,980,000 | 1,650,000 | ||
Net loans (charged-off) recovered | (696,000) | (771,000) | (1,204,000) | ||
Provision for (reversal of) loan losses | 1,938,000 | (12,962,000) | 20,110,000 | [1] | |
Balance at end of period | 36,515,000 | 35,273,000 | 49,006,000 | ||
Construction real estate loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | 3,539,000 | 3,787,000 | 6,490,000 | 3,539,000 | |
Loans charged-off | 0 | 0 | (40,000) | ||
Recoveries of loans charged-off | 2,000 | 2,000 | 28,000 | ||
Net loans (charged-off) recovered | 2,000 | 2,000 | (12,000) | ||
Provision for (reversal of) loan losses | (625,000) | (2,705,000) | 10,000 | [1] | |
Balance at end of period | 3,164,000 | 3,787,000 | 6,490,000 | ||
1-4 family residential real estate loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | 3,833,000 | 1,866,000 | 2,270,000 | 3,833,000 | |
Loans charged-off | (69,000) | (136,000) | (152,000) | ||
Recoveries of loans charged-off | 107,000 | 75,000 | 32,000 | ||
Net loans (charged-off) recovered | 38,000 | (61,000) | (120,000) | ||
Provision for (reversal of) loan losses | 269,000 | (343,000) | 10,000 | [1] | |
Balance at end of period | 2,173,000 | 1,866,000 | 2,270,000 | ||
Commercial real estate loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | 9,572,000 | 26,980,000 | 35,709,000 | 9,572,000 | |
Loans charged-off | 0 | 0 | (33,000) | ||
Recoveries of loans charged-off | 81,000 | 87,000 | 102,000 | ||
Net loans (charged-off) recovered | 81,000 | 87,000 | 69,000 | ||
Provision for (reversal of) loan losses | 1,640,000 | (8,816,000) | 18,005,000 | [1] | |
Balance at end of period | 28,701,000 | 26,980,000 | 35,709,000 | ||
Commercial loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | 6,351,000 | 2,397,000 | 4,107,000 | 6,351,000 | |
Loans charged-off | (792,000) | (1,004,000) | (823,000) | ||
Recoveries of loans charged-off | 593,000 | 674,000 | 310,000 | ||
Net loans (charged-off) recovered | (199,000) | (330,000) | (513,000) | ||
Provision for (reversal of) loan losses | 37,000 | (1,380,000) | 1,823,000 | [1] | |
Balance at end of period | 2,235,000 | 2,397,000 | 4,107,000 | ||
Municipal loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | 570,000 | 47,000 | 46,000 | 570,000 | |
Loans charged-off | 0 | 0 | 0 | ||
Recoveries of loans charged-off | 0 | 0 | 0 | ||
Net loans (charged-off) recovered | 0 | 0 | 0 | ||
Provision for (reversal of) loan losses | (2,000) | 1,000 | (2,000) | [1] | |
Balance at end of period | 45,000 | 47,000 | 46,000 | ||
Loans to individuals | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Balance at beginning of period | $ 932,000 | 196,000 | 384,000 | 932,000 | |
Loans charged-off | (1,723,000) | (1,611,000) | (1,806,000) | ||
Recoveries of loans charged-off | 1,105,000 | 1,142,000 | 1,178,000 | ||
Net loans (charged-off) recovered | (618,000) | (469,000) | (628,000) | ||
Provision for (reversal of) loan losses | 619,000 | 281,000 | 264,000 | [1] | |
Balance at end of period | $ 197,000 | $ 196,000 | 384,000 | ||
Impact of CECL adoption | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | 5,072,000 | ||||
Impact of CECL adoption - purchased loans with credit deterioration | 231,000 | ||||
Impact of CECL adoption | Construction real estate loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | 2,968,000 | ||||
Impact of CECL adoption - purchased loans with credit deterioration | (15,000) | ||||
Impact of CECL adoption | 1-4 family residential real estate loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | (1,447,000) | ||||
Impact of CECL adoption - purchased loans with credit deterioration | (6,000) | ||||
Impact of CECL adoption | Commercial real estate loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | 7,730,000 | ||||
Impact of CECL adoption - purchased loans with credit deterioration | 333,000 | ||||
Impact of CECL adoption | Commercial loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | (3,532,000) | ||||
Impact of CECL adoption - purchased loans with credit deterioration | (22,000) | ||||
Impact of CECL adoption | Municipal loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | (522,000) | ||||
Impact of CECL adoption - purchased loans with credit deterioration | 0 | ||||
Impact of CECL adoption | Loans to individuals | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Impact of CECL adoption - cumulative effect adjustment | (125,000) | ||||
Impact of CECL adoption - purchased loans with credit deterioration | $ (59,000) | ||||
[1]The increase in the provision for credit losses during 2020 was primarily due to the economic impact of COVID-19 on macroeconomic factors used in the CECL methodology. |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans | $ 4,147,691,000 | $ 3,645,162,000 | |
Loans to related parties | 14,200,000 | 28,300,000 | |
Nonaccrual loans, no allowance | 1,600,000 | 1,200,000 | |
Collateral-dependent loans | 8,100,000 | 8,500,000 | |
Mortgage Loans in Process of Foreclosure, Amount | 0 | 21,000 | |
Commitments to lend additional funds on TDRs | $ 0 | $ 0 | $ 0 |
Related party loans as a percent of stockholders' equity | 1.90% | 3.10% | |
Loans, Nonaccrual, Interest Income Reversal | $ 36,000 | $ 15,000 | |
Accrued interest receivable on our loan portfolio | 18,800,000 | 13,300,000 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | 492,000 | 321,000 | |
1-4 family residential real estate loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans | $ 663,519,000 | 651,140,000 | |
1-4 family residential real estate loans | Minimum | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
General loan term | 15 years | ||
1-4 family residential real estate loans | Maximum | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
General loan term | 30 years | ||
Commercial real estate loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans | $ 1,987,707,000 | 1,598,172,000 | |
Loans secured by owner and non-owner occupied commercial real estate | 1,600,000,000 | ||
Loans secured by multi-family properties | 363,300,000 | ||
Loans secured by farmland | $ 26,300,000 | ||
General loan term | 20 years | ||
Construction real estate loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans | $ 559,681,000 | 447,860,000 | |
Paycheck Protection Program | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans | $ 113,000 | $ 31,000,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Premises | $ 185,588 | $ 181,289 | |
Furniture and equipment | 44,126 | 42,924 | |
Premises and equipment, gross | 229,714 | 224,213 | |
Less: Accumulated depreciation | 88,458 | 81,704 | |
Premises and equipment, net | 141,256 | 142,509 | |
Depreciation [Abstract] | |||
Accumulated depreciation of assets written off | 1,900 | 1,800 | |
Depreciation expense | $ 8,600 | $ 8,200 | $ 8,000 |
DEPOSITS - Types and Components
DEPOSITS - Types and Components of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Noninterest bearing demand deposits: | ||
Noninterest bearing demand deposits | $ 1,671,562 | $ 1,644,775 |
Interest bearing deposits: | ||
Total interest bearing deposits | 4,526,457 | 4,077,552 |
Total deposits | 6,198,019 | 5,722,327 |
Private accounts | ||
Noninterest bearing demand deposits: | ||
Noninterest bearing demand deposits | 1,607,952 | 1,591,123 |
Interest bearing deposits: | ||
Savings accounts | 672,676 | 643,939 |
Money market demand accounts | 424,676 | 449,977 |
Platinum money market accounts | 421,826 | 438,781 |
Interest bearing checking accounts | 1,496,784 | 1,216,189 |
NOW demand accounts | 13,601 | 18,376 |
CDs of $250,000 or more | 120,387 | 68,950 |
CDs under $250,000 | 532,409 | 316,028 |
Total interest bearing deposits | 3,682,359 | 3,152,240 |
Public accounts | ||
Noninterest bearing demand deposits: | ||
Noninterest bearing demand deposits | 63,610 | 53,652 |
Interest bearing deposits: | ||
Savings accounts | 1,949 | 965 |
Money market demand accounts | 33,871 | 32,487 |
Platinum money market accounts | 365,720 | 371,032 |
Interest bearing checking accounts | 89,320 | 100,581 |
NOW demand accounts | 234,027 | 240,200 |
CDs of $250,000 or more | 113,810 | 176,190 |
CDs under $250,000 | 5,401 | 3,857 |
Total interest bearing deposits | $ 844,098 | $ 925,312 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2023 | $ 619,652 |
2024 | 124,823 |
2025 | 20,249 |
2026 | 2,791 |
2027 | 4,388 |
2028 and thereafter | 104 |
Total | $ 772,007 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposit Liabilities Disclosures [Line Items] | |||
Interest expense on time deposits of $250,000 or more | $ 2,100,000 | $ 1,400,000 | $ 7,400,000 |
Maximum brokered certificates of deposit balance allowed per company policy | 1,100,000,000 | ||
Related party deposit liabilities | 11,000,000 | 10,600,000 | |
Demand deposit overdrafts reclassified as loans | 1,200,000 | 1,100,000 | |
Certificates of deposit - CDs | |||
Deposit Liabilities Disclosures [Line Items] | |||
Brokered certificates of deposit | $ 220,900,000 | 24,700,000 | |
Weighted average cost, domestic deposit, brokered | 3.59% | ||
Brokered certificates of deposit, maturity period, less than | 5 months | ||
Brokered non-maturity deposits | |||
Deposit Liabilities Disclosures [Line Items] | |||
Brokered certificates of deposit | $ 438,400,000 | $ 270,100,000 | |
Weighted average cost, domestic deposit, brokered | 1.26% |
BORROWING ARRANGEMENTS - Inform
BORROWING ARRANGEMENTS - Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Other borrowings | $ 221,153 | $ 23,219 | |
FHLB borrowings | 153,358 | 344,038 | |
Other borrowings: | |||
Debt Instrument [Line Items] | |||
Other borrowings | 221,153 | 23,219 | |
Average amount outstanding during the period | [1] | 77,845 | 22,257 |
Maximum amount outstanding during the period | [2] | $ 316,563 | $ 24,549 |
Weighted average interest rate during the period | [3] | 2.40% | 0.20% |
Interest rate at end of period | [4] | 4.10% | 0.20% |
FHLB borrowings: | |||
Debt Instrument [Line Items] | |||
FHLB borrowings | $ 153,358 | $ 344,038 | |
Average amount outstanding during the period | [1] | 135,926 | 665,384 |
Maximum amount outstanding during the period | [2] | $ 423,645 | $ 723,584 |
Weighted average interest rate during the period | [3] | 2.40% | 1.10% |
Interest rate at end of period | [4],[5] | 4.70% | 1.30% |
[1]The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period.[2]The maximum amount outstanding at any month-end during the period.[3]The weighted average interest rate during the period was computed by dividing the actual interest expense by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps.[4]Stated rate.[5]The interest rate on FHLB borrowings includes the effect of interest rate swaps. |
BORROWING ARRANGEMENTS - Maturi
BORROWING ARRANGEMENTS - Maturities Table (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Less than 1 Year | $ 368,912 |
1-2 Years | 3,690 |
2-3 Years | 772 |
3-4 Years | 485 |
4-5 Years | 406 |
Thereafter | 246 |
Total | 374,511 |
Other borrowings: | |
Debt Instrument [Line Items] | |
Less than 1 Year | 218,203 |
1-2 Years | 2,950 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Thereafter | 0 |
Total | 221,153 |
FHLB borrowings: | |
Debt Instrument [Line Items] | |
Less than 1 Year | 150,709 |
1-2 Years | 740 |
2-3 Years | 772 |
3-4 Years | 485 |
4-5 Years | 406 |
Thereafter | 246 |
Total | $ 153,358 |
BORROWING ARRANGEMENTS - Narrat
BORROWING ARRANGEMENTS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) oustanding_letters_of_credit credit_line | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||
Number of credit lines maintained by the Company | credit_line | 3 | |
Federal funds purchased | $ 0 | $ 0 |
FHLB borrowings, unused funds | 1,610,000,000 | |
Letters of credit, FHLB, as collateral | 0 | |
Securities sold under agreements to repurchase | $ 33,200,000 | 23,200,000 |
Maturity of repurchase agreements, less than | 2 years | |
Federal Reserve Discount Window [Member] | ||
Line of Credit Facility [Line Items] | ||
Other borrowings | $ 188,000,000 | $ 0 |
Frost Bank | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | 40,000,000 | |
Line of credit facility, capacity available for issuance of letters of credit | $ 5,000,000 | |
Number of outstanding letters of credit | oustanding_letters_of_credit | 1 | |
Letters of Credit Outstanding, Amount | $ 155,000 | |
TIB - The Independent Bankers Bank | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | 15,000,000 | |
Comerica Bank | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | 7,500,000 | |
Federal Reserve Discount Window [Member] | ||
Line of Credit Facility [Line Items] | ||
Additional Funding Available | $ 527,600,000 | |
Minimum | ||
Line of Credit Facility [Line Items] | ||
FHLB borrowings, interest rate at period end | 3.73% | |
Maturity range of FHLB borrowings | 3 months | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
FHLB borrowings, interest rate at period end | 4.799% | |
Maturity range of FHLB borrowings | 5 years 7 months 6 days |
LONG-TERM DEBT - Other Long-ter
LONG-TERM DEBT - Other Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Nov. 06, 2020 | Oct. 10, 2007 | Aug. 10, 2007 | Aug. 08, 2007 | May 20, 2005 | [4] | Sep. 04, 2003 | ||||
Debt Instruments [Abstract] | ||||||||||||
Subordinated notes, net of unamortized debt issuance costs | [1] | $ 98,674 | $ 98,534 | |||||||||
Trust preferred subordinated debentures | [2] | 60,265 | 60,260 | |||||||||
Total long-term obligations | 158,939 | 158,794 | ||||||||||
Southside Statutory Trust III, net of unamortized debt issuance costs | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Trust preferred subordinated debentures | 20,573 | [2],[3] | 20,568 | [2],[3] | $ 20,619 | |||||||
Unamortized debt issuance expense | 46 | 51 | ||||||||||
Southside Statutory Trust IV | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Trust preferred subordinated debentures | 23,196 | [2] | 23,196 | [2] | $ 23,196 | |||||||
Southside Statutory Trust V | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Trust preferred subordinated debentures | 12,887 | [2] | 12,887 | [2] | $ 12,887 | |||||||
Magnolia Trust Company I | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Trust preferred subordinated debentures | 3,609 | [2] | 3,609 | [2] | $ 3,600 | $ 3,609 | ||||||
3.875% Subordinated Notes | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Subordinated notes, net of unamortized debt issuance costs | [1],[5] | 98,674 | 98,534 | |||||||||
Unamortized debt issuance expense | $ 1,300 | $ 1,500 | ||||||||||
Stated interest rate | 3.875% | |||||||||||
Debt face amount | $ 100,000 | |||||||||||
Minimum | 3.875% Subordinated Notes | ||||||||||||
Debt Instruments [Abstract] | ||||||||||||
Long-term debt, remaining maturity, greater than | 1 year | |||||||||||
[1]This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations.[2]This debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations.[3]The unamortized debt issuance costs reflected in the carrying amount of the Southside Statutory Trust III junior subordinated debentures totaled $46,000 at December 31, 2022 and $51,000 at December 31, 2021.[4]On October 10, 2007, as part of an acquisition we assumed $3.6 million of floating rate junior subordinated debentures issued in 2005 to Magnolia Trust Company I.[5]The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $1.3 million at December 31, 2022 and $1.5 million at December 31, 2021. |
LONG-TERM DEBT - LT Debt Intere
LONG-TERM DEBT - LT Debt Interest Rates (Details) - USD ($) $ in Thousands | Nov. 14, 2025 | Aug. 10, 2007 | Aug. 08, 2007 | May 20, 2005 | Sep. 04, 2003 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 06, 2020 | Oct. 10, 2007 | ||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term debt | [1] | $ 60,265 | $ 60,260 | ||||||||||
Southside Statutory Trust III | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term debt | $ 20,619 | 20,573 | [1],[2] | 20,568 | [1],[2] | ||||||||
Southside Statutory Trust III | Three-Month London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.94% | ||||||||||||
Southside Statutory Trust IV | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term debt | $ 23,196 | 23,196 | [1] | 23,196 | [1] | ||||||||
Southside Statutory Trust IV | Three-Month London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.30% | ||||||||||||
Southside Statutory Trust V | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term debt | $ 12,887 | 12,887 | [1] | 12,887 | [1] | ||||||||
Southside Statutory Trust V | Three-Month London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||
Magnolia Trust Company I | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term debt | $ 3,609 | [3] | $ 3,609 | [1] | $ 3,609 | [1] | $ 3,600 | ||||||
Magnolia Trust Company I | Three-Month London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | [3] | 1.80% | |||||||||||
3.875% Subordinated Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt face amount | $ 100,000 | ||||||||||||
Stated interest rate | 3.875% | ||||||||||||
Forecast [Member] | 3.875% Subordinated Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 3.66% | ||||||||||||
[1]This debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations.[2]The unamortized debt issuance costs reflected in the carrying amount of the Southside Statutory Trust III junior subordinated debentures totaled $46,000 at December 31, 2022 and $51,000 at December 31, 2021.[3]On October 10, 2007, as part of an acquisition we assumed $3.6 million of floating rate junior subordinated debentures issued in 2005 to Magnolia Trust Company I. |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 USD ($) | Mar. 31, 2020 | Dec. 31, 2022 USD ($) executive_officer retiree shares | Dec. 31, 2021 USD ($) retiree shares | Dec. 31, 2020 USD ($) retiree shares | Dec. 31, 2018 executive_officer | Dec. 31, 2013 executive_officer | Jun. 29, 2020 | |
Health Insurance Coverage [Abstract] | ||||||||||
Cost of health care benefits | $ 8,400,000 | $ 8,600,000 | $ 7,000,000 | |||||||
Health coverage eligibility for retiring employees, minimum years of service | 50 years | |||||||||
Retirees participating in health insurance | retiree | 1 | 1 | 1 | |||||||
Employee Stock Ownership Plan (ESOP) [Abstract] | ||||||||||
Contributions to the employee stock ownership plan (ESOP) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||
Shares owned by the ESOP (in shares) | shares | 345,847 | 327,977 | ||||||||
Supplemental Unemployment Benefits [Abstract] | ||||||||||
Long-term disability coverage, minimum years of service rendered for officers to automatically qualify | 3 years | |||||||||
Long-term disability coverage, minimum annual salary level for officers to automatically qualify | $ 50,000 | |||||||||
Long-term disability coverage, maximum benefit provided, per month | $ 15,000 | |||||||||
401(k) [Abstract] | ||||||||||
Requisite service period | 30 days | |||||||||
401(k) Plan expense | $ 2,000,000 | $ 2,200,000 | 1,900,000 | |||||||
Defined Benefit Plan [Abstract] | ||||||||||
Retirement plan curtailment expense | 0 | 0 | 163,000 | |||||||
Decrease in accumulated other comprehensive income due to freeze of future benefits and remeasurement | $ 6,000,000 | |||||||||
Adjustment To Pension Liability | $ 5,400,000 | 7,800,000 | ||||||||
Retirement Plan | ||||||||||
Defined Benefit Plan [Abstract] | ||||||||||
Defined benefit pension plan, minimum eligibility age | 65 years | |||||||||
Early retirement election at reduced benefit levels, minimum eligibility age | 55 years | |||||||||
Retirement plan curtailment expense | $ 0 | $ 0 | $ 151,000 | |||||||
Discount rate | 2.78% | 5.46% | 2.95% | 3.41% | ||||||
Number of shares of Company stock included in plan assets (in shares) | shares | 240,666 | 240,666 | ||||||||
Expected long-term rate of return on plan assets | 6.125% | 6.50% | 6.50% | 7.25% | 6.13% | 6.13% | 6.50% | |||
Funded (under funded) status | $ 6,866,000 | $ 3,269,000 | $ (6,429,000) | |||||||
Accrued benefit (liability) asset recognized | 6,866,000 | 3,269,000 | (6,429,000) | |||||||
Expected future employer contributions, next fiscal year | 0 | |||||||||
Retirement Plan Acquired | ||||||||||
Defined Benefit Plan [Abstract] | ||||||||||
Retirement plan curtailment expense | $ 0 | $ 0 | $ 0 | |||||||
Discount rate | 5.46% | 2.95% | ||||||||
Expected long-term rate of return on plan assets | 6.125% | 6.50% | 6.50% | 7.25% | 6.13% | 6.13% | 6.50% | |||
Funded (under funded) status | $ 749,000 | $ 388,000 | $ (91,000) | |||||||
Accrued benefit (liability) asset recognized | 749,000 | 388,000 | (91,000) | |||||||
Expected future employer contributions, next fiscal year | 0 | |||||||||
Restoration Plan | ||||||||||
Defined Benefit Plan [Abstract] | ||||||||||
Retirement plan curtailment expense | $ 0 | $ 0 | 12,000 | |||||||
Discount rate | 2.78% | 5.46% | 2.95% | 3.41% | ||||||
Funded (under funded) status | $ (15,463,000) | $ (19,321,000) | (18,789,000) | |||||||
Accrued benefit (liability) asset recognized | (15,463,000) | $ (19,321,000) | $ (18,789,000) | |||||||
Expected future employer contributions, next fiscal year | $ 731,000 | |||||||||
Equity securities | Retirement Plan | ||||||||||
Defined Benefit Plan [Abstract] | ||||||||||
Target allocation | 64% | |||||||||
Fixed income securities | Retirement Plan | ||||||||||
Defined Benefit Plan [Abstract] | ||||||||||
Target allocation | 35% | |||||||||
Cash equivalents | Retirement Plan | ||||||||||
Defined Benefit Plan [Abstract] | ||||||||||
Target allocation | 1% | |||||||||
Stock options | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Granted (shares) | shares | 0 | 0 | 0 | |||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Nonvested awards outstanding (in shares) | shares | 226,594 | 177,015 | ||||||||
Performance Based Restricted Stock Units | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Nonvested awards outstanding (in shares) | shares | 8,343 | 0 | ||||||||
Incentive Plan 2009 | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Number of additional shares (in shares) | shares | 410,000 | |||||||||
Incentive Plan 2017 | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Common stock shares reserved and available for issuance (in shares) | shares | 2,460,000 | |||||||||
Shares remaining available for grant for future awards (in shares) | shares | 1,097,158 | |||||||||
Incentive Plan | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Nonvested awards outstanding (in shares) | shares | 277,600 | 368,447 | 492,274 | |||||||
Unrecognized compensation expense | $ 7,400,000 | $ 6,200,000 | $ 5,400,000 | |||||||
Unrecognized compensation, weighted-average period for recognition | 2 years 8 months 12 days | |||||||||
Incentive Plan | Stock options | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Weighted-average remaining contractual life of options exercisable | 5 years | |||||||||
Awards contractual term | 10 years | |||||||||
Total intrinsic value of outstanding stock options | $ 1,800,000 | |||||||||
Total intrinsic value of exercisable stock options | $ 1,800,000 | |||||||||
Incentive Plan | Stock options | Minimum | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Awards vesting period | 3 years | |||||||||
Incentive Plan | Stock options | Maximum | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Awards vesting period | 4 years | |||||||||
Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Awards vesting period | 3 years | |||||||||
Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Awards vesting period | 4 years | |||||||||
Incentive Plan | Performance Based Restricted Stock Units | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Shares earned, performance period | 3 years | |||||||||
Performance earnings, minimum payout (as a percentage) | 50% | |||||||||
Performance earnings, target payout (as a percentage) | 100% | |||||||||
Performance earnings, maximum payout (as a percentage) | 150% | |||||||||
Executive officers | ||||||||||
Deferred Compensation Arrangements [Abstract] | ||||||||||
Number of employees included in the deferred compensation agreement with the Company | executive_officer | 33 | |||||||||
Aggregate payment amount provided in the deferred compensation agreements | $ 10,400,000 | |||||||||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 15 years | |||||||||
Number of individuals receiving payments | executive_officer | 11 | |||||||||
Deferred compensation expense | $ 310,000 | 457,000 | 667,000 | |||||||
Total deferred compensation plan liability | $ 3,500,000 | 3,600,000 | ||||||||
Split Dollar Life Insurance Agreements [Abstract] | ||||||||||
Number of employees originally covered by the split dollar agreements | executive_officer | 8 | |||||||||
Aggregate death benefit amount provided originally in agreement, before inflation adjustment | $ 4,500,000 | |||||||||
Number of employees covered by the split dollar agreements, Actively employed with us | executive_officer | 4 | |||||||||
Number of retired covered officers death benefits were paid | executive_officer | 1 | |||||||||
Number of active covered officers death benefits were paid | executive_officer | 1 | |||||||||
Number of remaining employees covered by the split dollar agreements | executive_officer | 7 | |||||||||
Aggregate death benefits for remaining executives, inflation adjusted | $ 5,700,000 | |||||||||
Expense of Split Dollar Retirement Bonus | 27,000 | 87,000 | 35,000 | |||||||
Total split dollar liability | $ 1,900,000 | 1,900,000 | ||||||||
Executive officers | Minimum | ||||||||||
Split Dollar Life Insurance Agreements [Abstract] | ||||||||||
Inflation adjustment factor applied to benefits, annual | 3% | |||||||||
Executive officers | Maximum | ||||||||||
Split Dollar Life Insurance Agreements [Abstract] | ||||||||||
Inflation adjustment factor applied to benefits, annual | 5% | |||||||||
Employee | Incentive Plan | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Share-based compensation expense | $ 2,900,000 | 2,700,000 | 2,800,000 | |||||||
Tax benefit from share-based compensation expense | 605,000 | 570,000 | 593,000 | |||||||
Director | Incentive Plan | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Share-based compensation expense | 342,000 | 306,000 | 196,000 | |||||||
Tax benefit from share-based compensation expense | $ 72,000 | $ 64,000 | $ 41,000 | |||||||
Director | Incentive Plan | Restricted Stock Units (RSUs) | ||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||
Awards vesting period | 1 year |
EMPLOYEE BENEFITS - Change in P
EMPLOYEE BENEFITS - Change in Projected Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at end of prior year | $ 94,170 | $ 96,848 | $ 100,012 |
Service cost | 0 | 0 | 1,793 |
Interest cost | 2,741 | 2,570 | 3,031 |
Actuarial (gain) loss | (22,997) | (1,381) | 11,892 |
Benefits Paid | (3,950) | (3,734) | (6,596) |
Expenses paid | (95) | (133) | (202) |
Curtailments | 0 | 0 | (13,082) |
Settlements | 0 | 0 | 0 |
Benefit obligation at end of year | 69,869 | 94,170 | 96,848 |
Change in Plan Assets: | |||
Fair value of plan assets at end of prior year | 97,439 | 90,419 | 93,818 |
Actual return | (16,659) | 10,887 | 3,399 |
Employer contributions | 0 | 0 | 0 |
Benefits paid | (3,950) | (3,734) | (6,596) |
Expenses paid | (95) | (133) | (202) |
Settlements | 0 | 0 | 0 |
Fair value of plan assets at end of year | 76,735 | 97,439 | 90,419 |
(Un)Funded status at end of year | 6,866 | 3,269 | (6,429) |
Accrued benefit (liability) asset recognized | 6,866 | 3,269 | (6,429) |
Accumulated benefit obligation at end of year | 69,869 | 94,170 | 96,848 |
Retirement Plan Acquired | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at end of prior year | 3,483 | 3,704 | 4,870 |
Service cost | 0 | 0 | 0 |
Interest cost | 102 | 92 | 162 |
Actuarial (gain) loss | (1,076) | (155) | 437 |
Benefits Paid | (60) | (59) | (51) |
Expenses paid | (70) | (99) | (113) |
Curtailments | 0 | 0 | 0 |
Settlements | 0 | 0 | (1,601) |
Benefit obligation at end of year | 2,379 | 3,483 | 3,704 |
Change in Plan Assets: | |||
Fair value of plan assets at end of prior year | 3,871 | 3,613 | 4,763 |
Actual return | (613) | 416 | 615 |
Employer contributions | 0 | 0 | 0 |
Benefits paid | (60) | (59) | (51) |
Expenses paid | (70) | (99) | (113) |
Settlements | 0 | 0 | (1,601) |
Fair value of plan assets at end of year | 3,128 | 3,871 | 3,613 |
(Un)Funded status at end of year | 749 | 388 | (91) |
Accrued benefit (liability) asset recognized | 749 | 388 | (91) |
Accumulated benefit obligation at end of year | 2,379 | 3,483 | 3,704 |
Restoration Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at end of prior year | 19,321 | 18,789 | 19,098 |
Service cost | 0 | 0 | 429 |
Interest cost | 578 | 520 | 568 |
Actuarial (gain) loss | (3,763) | 684 | 1,344 |
Benefits Paid | (673) | (672) | (688) |
Expenses paid | 0 | 0 | 0 |
Curtailments | 0 | 0 | (1,962) |
Settlements | 0 | 0 | 0 |
Benefit obligation at end of year | 15,463 | 19,321 | 18,789 |
Change in Plan Assets: | |||
Fair value of plan assets at end of prior year | 0 | 0 | 0 |
Actual return | 0 | 0 | 0 |
Employer contributions | 673 | 672 | 688 |
Benefits paid | (673) | (672) | (688) |
Expenses paid | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
(Un)Funded status at end of year | (15,463) | (19,321) | (18,789) |
Accrued benefit (liability) asset recognized | (15,463) | (19,321) | (18,789) |
Accumulated benefit obligation at end of year | $ 15,463 | $ 19,321 | $ 18,789 |
EMPLOYEE BENEFITS - Amounts Rec
EMPLOYEE BENEFITS - Amounts Recognized as a Component of Other Comprehensive Income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Retirement plan settlement expense | $ 0 | $ 0 | $ 215 |
Net gain (loss) occurring during the year | (4,487) | (6,524) | 593 |
Net prior service cost occurring during the year | 0 | 0 | 163 |
Retirement Plan | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Recognition of net loss | 640 | 1,002 | 2,474 |
Recognition of prior service (credit) cost | 0 | 0 | (14) |
Retirement plan settlement expense | 0 | 0 | 0 |
Net gain (loss) occurring during the year | 493 | 6,848 | (1,086) |
Net prior service cost occurring during the year | 0 | 0 | 151 |
Total adjustment during the year | 1,133 | 7,850 | 1,525 |
Deferred tax (expense) benefit | (238) | (1,648) | (320) |
Other comprehensive income (loss), net of tax | 895 | 6,202 | 1,205 |
Retirement Plan Acquired | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Recognition of net loss | 0 | 6 | 10 |
Recognition of prior service (credit) cost | 0 | 0 | 0 |
Retirement plan settlement expense | 0 | 0 | 215 |
Net gain (loss) occurring during the year | 231 | 361 | (124) |
Net prior service cost occurring during the year | 0 | 0 | 0 |
Total adjustment during the year | 231 | 367 | 101 |
Deferred tax (expense) benefit | (48) | (77) | (21) |
Other comprehensive income (loss), net of tax | 183 | 290 | 80 |
Restoration Plan | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Recognition of net loss | 255 | 256 | 551 |
Recognition of prior service (credit) cost | 0 | 0 | 7 |
Retirement plan settlement expense | 0 | 0 | 0 |
Net gain (loss) occurring during the year | 3,763 | (685) | 617 |
Net prior service cost occurring during the year | 0 | 0 | 12 |
Total adjustment during the year | 4,018 | (429) | 1,187 |
Deferred tax (expense) benefit | (844) | 90 | (249) |
Other comprehensive income (loss), net of tax | $ 3,174 | $ (339) | $ 938 |
EMPLOYEE BENEFITS - Amounts in
EMPLOYEE BENEFITS - Amounts in Accumulated Other Comprehensive Income (Loss) Recognized in Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net loss | $ 640 | $ 1,002 | $ 2,474 |
Deferred tax expense | (134) | (211) | |
Accumulated other comprehensive income (loss), net of tax | 506 | 791 | |
Retirement Plan Acquired | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net loss | 0 | 6 | 10 |
Deferred tax expense | 0 | 0 | |
Accumulated other comprehensive income (loss), net of tax | 0 | 6 | |
Restoration Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net loss | 255 | 256 | $ 551 |
Deferred tax expense | (54) | (54) | |
Accumulated other comprehensive income (loss), net of tax | $ 201 | $ 202 |
EMPLOYEE BENEFITS - Amounts R_2
EMPLOYEE BENEFITS - Amounts Recognized as a Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Plan | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Net gain (loss) | $ (22,800) | $ (23,933) |
Deferred tax (expense) benefit | 4,788 | 5,026 |
Accumulated other comprehensive income (loss), net of tax | (18,012) | (18,907) |
Retirement Plan Acquired | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Net gain (loss) | 100 | (131) |
Deferred tax (expense) benefit | (21) | 27 |
Accumulated other comprehensive income (loss), net of tax | 79 | (104) |
Restoration Plan | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Net gain (loss) | (1,986) | (6,004) |
Deferred tax (expense) benefit | 417 | 1,261 |
Accumulated other comprehensive income (loss), net of tax | $ (1,569) | $ (4,743) |
EMPLOYEE BENEFITS - Net Periodi
EMPLOYEE BENEFITS - Net Periodic Benefit Cost and Postretirement Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Retirement plan curtailment expense | $ 0 | $ 0 | $ 163 |
Loss recognized due to settlement | 0 | 0 | 215 |
Retirement Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 1,793 |
Interest cost | 2,741 | 2,570 | 3,031 |
Expected return on assets | (5,845) | (5,420) | (5,676) |
Net loss amortization | 640 | 1,002 | 2,474 |
Prior service cost (credit) amortization | 0 | 0 | (14) |
Retirement plan curtailment expense | 0 | 0 | 151 |
Loss recognized due to settlement | 0 | 0 | 0 |
Net periodic benefit cost (income) | (2,464) | (1,848) | 1,759 |
Retirement Plan Acquired | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 102 | 92 | 162 |
Expected return on assets | (232) | (211) | (301) |
Net loss amortization | 0 | 6 | 10 |
Prior service cost (credit) amortization | 0 | 0 | 0 |
Retirement plan curtailment expense | 0 | 0 | 0 |
Loss recognized due to settlement | 0 | 0 | 215 |
Net periodic benefit cost (income) | (130) | (113) | 86 |
Restoration Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 429 |
Interest cost | 578 | 520 | 568 |
Net loss amortization | 255 | 256 | 551 |
Prior service cost (credit) amortization | 0 | 0 | 7 |
Retirement plan curtailment expense | 0 | 0 | 12 |
Loss recognized due to settlement | 0 | 0 | 0 |
Net periodic benefit cost (income) | $ 833 | $ 776 | $ 1,567 |
EMPLOYEE BENEFITS - Assumptions
EMPLOYEE BENEFITS - Assumptions Used to Calculate Benefit Obligation, Net Periodic Benefit Cost and Postretirement Benefit (Details) | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 29, 2020 | |
Retirement Plan | ||||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||||
Discount rate | 2.78% | 5.46% | 2.95% | 3.41% | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||||
Discount rate | 2.95% | 2.65% | 2.78% | |||||
Expected long-term rate of return on plan assets | 6.125% | 6.50% | 6.50% | 7.25% | 6.13% | 6.13% | 6.50% | |
Compensation increase rate | 0% | 0% | 3.50% | |||||
Retirement Plan Acquired | ||||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||||
Discount rate | 5.46% | 2.95% | ||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||||
Discount rate | 2.95% | 2.65% | 3.41% | |||||
Expected long-term rate of return on plan assets | 6.125% | 6.50% | 6.50% | 7.25% | 6.13% | 6.13% | 6.50% | |
Compensation increase rate | 0% | 0% | 0% | |||||
Restoration Plan | ||||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||||
Discount rate | 2.78% | 5.46% | 2.95% | 3.41% | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||||
Discount rate | 2.95% | 2.65% | 2.78% | |||||
Compensation increase rate | 0% | 0% | 3.50% |
EMPLOYEE BENEFITS - Pension Pla
EMPLOYEE BENEFITS - Pension Plan Asset Categories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Plan | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | $ 76,735 | $ 97,439 | $ 90,419 | $ 93,818 | |
Retirement Plan Acquired | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | 3,128 | 3,871 | $ 3,613 | $ 4,763 | |
Level 1 | Retirement Plan | Cash | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | 605 | 3,495 | |||
Level 1 | Retirement Plan | U.S. large cap equities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [1] | 23,032 | 27,692 | ||
Level 1 | Retirement Plan | U.S. mid cap equities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [2] | 3,594 | 7,556 | ||
Level 1 | Retirement Plan | U.S. small cap equities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [3] | 12,447 | 15,004 | ||
Level 1 | Retirement Plan | International | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [4] | 0 | 0 | ||
Level 1 | Retirement Plan | Corporate bonds | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 0 | 0 | ||
Level 1 | Retirement Plan | International developed | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [6] | 8,161 | 9,768 | ||
Level 1 | Retirement Plan | International emerging | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [2] | 1,841 | 2,322 | ||
Level 1 | Retirement Plan | Real estate | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [7] | 0 | 0 | ||
Level 1 | Retirement Plan | US Treasury and Government | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 233 | 262 | ||
Level 1 | Retirement Plan Acquired | Cash | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | 0 | 0 | |||
Level 1 | Retirement Plan Acquired | U.S. large cap equities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [1] | 1,103 | 1,351 | ||
Level 1 | Retirement Plan Acquired | U.S. mid cap equities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [2] | 135 | 151 | ||
Level 1 | Retirement Plan Acquired | U.S. small cap equities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [3] | 66 | 70 | ||
Level 1 | Retirement Plan Acquired | International | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [4] | 547 | 775 | ||
Level 1 | Retirement Plan Acquired | Corporate bonds | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 1,027 | 1,277 | ||
Level 1 | Retirement Plan Acquired | International developed | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [6] | 0 | 0 | ||
Level 1 | Retirement Plan Acquired | International emerging | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [2] | 0 | 0 | ||
Level 1 | Retirement Plan Acquired | Real estate | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [7] | 250 | 247 | ||
Level 1 | Retirement Plan Acquired | US Treasury and Government | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 0 | 0 | ||
Level 2 | Retirement Plan | Cash equivalents | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | 8,543 | 9,949 | |||
Level 2 | Retirement Plan | Corporate bonds | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 1,979 | 2,254 | ||
Level 2 | Retirement Plan | U.S. government agencies | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 4,380 | 5,437 | ||
Level 2 | Retirement Plan | Municipal bonds | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 11,774 | 13,508 | ||
Level 2 | Retirement Plan | U.S. agency mortgage-backed securities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [8] | 146 | 192 | ||
Level 2 | Retirement Plan Acquired | Cash equivalents | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | 0 | 0 | |||
Level 2 | Retirement Plan Acquired | Corporate bonds | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 0 | 0 | ||
Level 2 | Retirement Plan Acquired | U.S. government agencies | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 0 | 0 | ||
Level 2 | Retirement Plan Acquired | Municipal bonds | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [5] | 0 | 0 | ||
Level 2 | Retirement Plan Acquired | U.S. agency mortgage-backed securities | |||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||
Total fair value of plan assets | [8] | $ 0 | $ 0 | ||
[1] For the Retirement Plan, this category is comprised of broadly diversified “passive” and “active” mutual funds. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks. For the Retirement Plan, this category is comprised of broadly diversified “active” mutual funds. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds. For the Retirement Plan, this category is comprised of broadly diversified “passive” and “active” mutual funds and shares of Southside Bancshares stock. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds. For the Retirement Plan, this category is comprised of individual investment grade securities that are generally HTM. The Acquired Retirement Plan assets in this category consist of pooled separate accounts invested in mutual funds, bonds and fixed income securities. |
EMPLOYEE BENEFITS - Expected Fu
EMPLOYEE BENEFITS - Expected Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Retirement Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 4,262 |
2024 | 4,459 |
2025 | 4,623 |
2026 | 4,883 |
2027 | 5,028 |
2028 through 2032 | 25,729 |
Total expected future payments | 48,984 |
Retirement Plan Acquired | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | 79 |
2024 | 84 |
2025 | 91 |
2026 | 91 |
2027 | 126 |
2028 through 2032 | 816 |
Total expected future payments | 1,287 |
Restoration Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | 731 |
2024 | 749 |
2025 | 859 |
2026 | 1,161 |
2027 | 1,384 |
2028 through 2032 | 7,010 |
Total expected future payments | $ 11,894 |
EMPLOYEE BENEFITS - Schedule of
EMPLOYEE BENEFITS - Schedule of Shares Issued in Connection with Stock Compensation Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from stock options exercised | $ 790 | $ 7,672 | $ 1,692 |
Stock options | Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from stock options exercised | 790 | 7,672 | 1,692 |
Total intrinsic value of stock options exercised during period | $ 421 | $ 3,005 | $ 881 |
New shares issued from available treasury shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
New shares issued (in shares) | 86,500 | 305,212 | 116,661 |
EMPLOYEE BENEFITS - Summary of
EMPLOYEE BENEFITS - Summary of Activity of Share-based Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service Based - Restricted Stock Units Outstanding | |||
Number of Shares | |||
Balance, January 1, 2022 | 177,015 | ||
Granted (shares) | 122,039 | ||
Stock options exercised (in shares) | 0 | ||
Stock awards vested (shares) | (65,092) | ||
Forfeited (shares) | (7,368) | ||
Canceled/expired (shares) | 0 | ||
Balance, December 31, 2022 | 226,594 | 177,015 | |
Weighted- Average Grant-Date Fair Value | |||
Balance, January 1, 2022 | $ 36.95 | ||
Granted (in dollars per share) | 36.21 | ||
Stock options exercised (in dollars per share) | 0 | ||
Stock awards vested (in dollars per share) | 36.57 | ||
Forfeited (in dollars per share) | 38.54 | ||
Canceled/expired (in dollars per share) | 0 | ||
Balance, December 31, 2022 | $ 36.61 | $ 36.95 | |
Performance Based - Restricted Stock Units Outstanding | |||
Number of Shares | |||
Balance, January 1, 2022 | 0 | ||
Granted (shares) | 8,343 | ||
Stock options exercised (in shares) | 0 | ||
Stock awards vested (shares) | 0 | ||
Forfeited (shares) | 0 | ||
Canceled/expired (shares) | 0 | ||
Balance, December 31, 2022 | 8,343 | 0 | |
Weighted- Average Grant-Date Fair Value | |||
Balance, January 1, 2022 | $ 0 | ||
Granted (in dollars per share) | 41.74 | ||
Stock options exercised (in dollars per share) | 0 | ||
Stock awards vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Canceled/expired (in dollars per share) | 0 | ||
Balance, December 31, 2022 | $ 41.74 | $ 0 | |
Stock Options Outstanding | |||
Number of Shares | |||
Stock awards vested (shares) | 0 | ||
Weighted- Average Grant-Date Fair Value | |||
Stock awards vested (in dollars per share) | $ 0 | ||
Number of Shares | |||
Balance, January 1, 2022 | 713,767 | ||
Granted (shares) | 0 | 0 | 0 |
Stock options exercised (shares) | (33,486) | ||
Forfeited (shares) | (7,270) | ||
Canceled/expired (shares) | 0 | ||
Balance, December 31, 2022 | 673,011 | 713,767 | |
Weighted- Average Exercise Price | |||
Balance, January 1, 2022 | $ 33.20 | ||
Granted (in dollars per share) | 0 | ||
Stock options exercised (in dollars per share) | 27.94 | ||
Forfeited (in dollars per share) | 34.79 | ||
Canceled/expired (in dollars per share) | 0 | ||
Balance, December 31, 2022 | 33.45 | $ 33.20 | |
Weighted- Average Grant-Date Fair Value | |||
Balance, January 1, 2022 | 6.45 | ||
Granted (in dollars per share) | 0 | ||
Stock options exercised (in dollars per share) | 5.96 | ||
Forfeited (in dollars per share) | 5.99 | ||
Canceled/expired (in dollars per share) | 0 | ||
Balance, December 31, 2022 | $ 6.49 | $ 6.45 |
EMPLOYEE BENEFITS - Stock Optio
EMPLOYEE BENEFITS - Stock Options Exercise Price Range (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Options Outstanding | |
Number of Shares (in shares) | shares | 673,011 |
Weighted- Average Exercise Price (in dollars per share) | $ 33.45 |
Weighted- Average Remaining Contractual Life in Years | 5 years 1 month 17 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 621,367 |
Weighted- Average Exercise Price (in dollars per share) | $ 33.33 |
$22.88 - $25.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 22.88 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 25 |
Options Outstanding | |
Number of Shares (in shares) | shares | 26,299 |
Weighted- Average Exercise Price (in dollars per share) | $ 23.06 |
Weighted- Average Remaining Contractual Life in Years | 1 year 2 months 8 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 26,299 |
Weighted- Average Exercise Price (in dollars per share) | $ 23.06 |
$25.01 - $30.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 25.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 30 |
Options Outstanding | |
Number of Shares (in shares) | shares | 89,544 |
Weighted- Average Exercise Price (in dollars per share) | $ 26.60 |
Weighted- Average Remaining Contractual Life in Years | 2 years 5 months 26 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 89,544 |
Weighted- Average Exercise Price (in dollars per share) | $ 26.60 |
$30.01 - $35.00 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 30.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 35 |
Options Outstanding | |
Number of Shares (in shares) | shares | 480,124 |
Weighted- Average Exercise Price (in dollars per share) | $ 34.67 |
Weighted- Average Remaining Contractual Life in Years | 6 years 18 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 428,480 |
Weighted- Average Exercise Price (in dollars per share) | $ 34.66 |
$35.01 - $37.28 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 35.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 37.28 |
Options Outstanding | |
Number of Shares (in shares) | shares | 77,044 |
Weighted- Average Exercise Price (in dollars per share) | $ 37.28 |
Weighted- Average Remaining Contractual Life in Years | 3 years 10 months 9 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 77,044 |
Weighted- Average Exercise Price (in dollars per share) | $ 37.28 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Securities available for sale, at estimated fair value | $ 1,299,014,000 | $ 2,764,325,000 |
Cash collateral received from counterparties under master netting agreements | 82,135,000 | 0 |
Cash collateral held by counterparties subject to master netting agreements | $ 12,800,000 | |
Fair Value Hedging | ||
Derivative [Line Items] | ||
Securities available for sale, at estimated fair value | 743,900,000 | |
Interest Rate Swaps | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 575,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Derivative | |||
Gross derivatives | $ 82,306,000 | $ 18,231,000 | |
Offsetting derivative assets/liabilities | (171,000) | (4,819,000) | |
Cash collateral received/posted | $ (82,135,000) | $ 0 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||
Net derivatives included in the consolidated balance sheets | [1] | $ 0 | $ 13,412,000 |
Liability Derivative | |||
Gross derivatives | 21,217,000 | 19,823,000 | |
Offsetting derivative assets/liabilities | (171,000) | (4,819,000) | |
Cash collateral received/posted | 0 | (12,810,000) | |
Net derivatives included in the consolidated balance sheets | [1] | 21,046,000 | 2,194,000 |
Cash Flow Hedging | Interest Rate Swaps | |||
Liability Derivative | |||
Derivative, Notional Amount | 575,000,000 | ||
Financial institution counterparties | |||
Derivatives, Fair Value [Line Items] | |||
Credit exposure related to interest rate swaps | 0 | 0 | |
Financial institution counterparties | Derivatives designated as hedging instruments | Cash Flow Hedging | Interest Rate Swaps | |||
Asset Derivative | |||
Gross derivatives | 39,527,000 | 4,274,000 | |
Liability Derivative | |||
Gross derivatives | 0 | 5,866,000 | |
Derivative, Notional Amount | [2] | 575,000,000 | 605,000,000 |
Financial institution counterparties | Derivatives designated as hedging instruments | Fair Value Hedging | Interest Rate Swaps | |||
Asset Derivative | |||
Gross derivatives | 21,733,000 | 0 | |
Liability Derivative | |||
Gross derivatives | 171,000 | 0 | |
Derivative, Notional Amount | [2] | 742,675,000 | 0 |
Financial institution counterparties | Derivatives designated as non-hedging instruments | Interest Rate Swaps | |||
Asset Derivative | |||
Gross derivatives | 21,046,000 | 545,000 | |
Liability Derivative | |||
Gross derivatives | 0 | 13,412,000 | |
Derivative, Notional Amount | [2] | 223,124,000 | 214,379,000 |
Customer counterparties | |||
Derivatives, Fair Value [Line Items] | |||
Credit exposure related to interest rate swaps | 0 | 13,400,000 | |
Customer counterparties | Derivatives designated as non-hedging instruments | Interest Rate Swaps | |||
Asset Derivative | |||
Gross derivatives | 0 | 13,412,000 | |
Liability Derivative | |||
Gross derivatives | 21,046,000 | 545,000 | |
Derivative, Notional Amount | [2] | $ 223,124,000 | $ 214,379,000 |
[1]Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At December 31, 2022, we had no credit exposure related to interest rate swaps with financial institutions and none related to interest rate swaps with customers. At December 31, 2021, we had no credit exposure related to interest rate swaps with financial institutions and $13.4 million related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged. |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Weighted Average Remaining Maturity, Lives, and Rates of Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 575,000,000 | ||
Financial institution counterparties | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [1] | $ 223,124,000 | $ 214,379,000 |
Remaining Maturity | 9 years | 10 years 3 months 18 days | |
Receive Rate | 4.83% | 0.47% | |
Pay Rate | 2.69% | 2.42% | |
Financial institution counterparties | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [1] | $ 575,000,000 | $ 605,000,000 |
Remaining Maturity | 2 years 3 months 18 days | 3 years 2 months 12 days | |
Receive Rate | 4.44% | 0.13% | |
Pay Rate | 1.13% | 1.10% | |
Financial institution counterparties | Fair Value Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [1] | $ 742,675,000 | $ 0 |
Remaining Maturity | 6 years 3 months 18 days | ||
Receive Rate | 3.42% | 0% | |
Pay Rate | 3.21% | 0% | |
Customer counterparties | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [1] | $ 223,124,000 | $ 214,379,000 |
Remaining Maturity | 9 years | 10 years 3 months 18 days | |
Receive Rate | 2.69% | 2.42% | |
Pay Rate | 4.83% | 0.47% | |
[1]Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | $ 1,299,014 | $ 2,764,325 | |
Derivative assets: Interest rate swaps | [1] | 0 | 13,412 |
Derivative liabilities: Interest rate swaps | [1] | 21,046 | 2,194 |
US Treasury Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 58,877 | ||
State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 964,852 | 2,051,936 | |
Corporate bonds and other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 8,704 | 135,532 | |
Residential MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | [2] | 315,027 | 426,350 |
Commercial MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | [2] | 10,431 | 91,630 |
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments | 5,235 | 5,920 | |
Total asset fair value measurements | 1,386,555 | 2,788,476 | |
Total liability fair value measurements | 21,217 | 19,823 | |
Fair Value, Recurring [Member] | US Treasury Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 58,877 | ||
Fair Value, Recurring [Member] | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 964,852 | 2,051,936 | |
Fair Value, Recurring [Member] | Corporate bonds and other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 8,704 | 135,532 | |
Fair Value, Recurring [Member] | Residential MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | [3] | 315,027 | 426,350 |
Fair Value, Recurring [Member] | Commercial MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | [3] | 10,431 | 91,630 |
Fair Value, Recurring [Member] | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets: Interest rate swaps | 82,306 | 18,231 | |
Derivative liabilities: Interest rate swaps | 21,217 | 19,823 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments | 5,235 | 5,920 | |
Total asset fair value measurements | 5,235 | 64,797 | |
Total liability fair value measurements | 0 | 0 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 58,877 | ||
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds and other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets: Interest rate swaps | 0 | 0 | |
Derivative liabilities: Interest rate swaps | 0 | 0 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments | 0 | 0 | |
Total asset fair value measurements | 1,381,320 | 2,723,679 | |
Total liability fair value measurements | 21,217 | 19,823 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | US Treasury Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | ||
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 964,852 | 2,051,936 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Corporate bonds and other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 8,704 | 135,532 | |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | [3] | 315,027 | 426,350 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commercial MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | [3] | 10,431 | 91,630 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets: Interest rate swaps | 82,306 | 18,231 | |
Derivative liabilities: Interest rate swaps | 21,217 | 19,823 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments | 0 | 0 | |
Total asset fair value measurements | 0 | 0 | |
Total liability fair value measurements | 0 | 0 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | US Treasury Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | ||
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Corporate bonds and other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Residential MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Commercial MBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale, at estimated fair value | 0 | 0 | |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Interest Rate Swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets: Interest rate swaps | 0 | 0 | |
Derivative liabilities: Interest rate swaps | 0 | 0 | |
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 167 | ||
Total asset fair value measurements | 7,982 | 8,458 | |
Fair Value, Nonrecurring [Member] | Collateral-Dependent Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral-dependent loans | [4] | 7,815 | 8,458 |
Fair Value, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | ||
Total asset fair value measurements | 0 | 0 | |
Fair Value, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateral-Dependent Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral-dependent loans | 0 | 0 | |
Fair Value, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | ||
Total asset fair value measurements | 0 | 0 | |
Fair Value, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) | Collateral-Dependent Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral-dependent loans | 0 | 0 | |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 167 | ||
Total asset fair value measurements | 7,982 | 8,458 | |
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) | Collateral-Dependent Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral-dependent loans | [4] | $ 7,815 | $ 8,458 |
[1]Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At December 31, 2022, we had no credit exposure related to interest rate swaps with financial institutions and none related to interest rate swaps with customers. At December 31, 2021, we had no credit exposure related to interest rate swaps with financial institutions and $13.4 million related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged. |
FAIR VALUE MEASUREMENT - Fair_2
FAIR VALUE MEASUREMENT - Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | $ 199,252 | $ 201,753 |
Investment securities: | ||
HTM, at carrying value | 1,190,108 | 788 |
Mortgage-backed securities: | ||
HTM, at carrying value | 136,621 | 89,992 |
FHLB stock, at cost | 9,190 | 14,375 |
Equity investments | 5,946 | 5,921 |
Loans, net of allowance for loan losses | 4,111,176 | 3,609,889 |
Loans held for sale | 667 | 1,684 |
Financial Liabilities: | ||
Deposits | 6,198,019 | 5,722,327 |
Other borrowings | 221,153 | 23,219 |
FHLB borrowings | 153,358 | 344,038 |
Subordinated notes, net of unamortized debt issuance costs | 98,674 | 98,534 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,265 | 60,260 |
Estimated Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 199,252 | 201,753 |
Investment securities: | ||
HTM, at carrying value | 1,023,376 | 791 |
Mortgage-backed securities: | ||
HTM, at carrying value | 125,780 | 94,444 |
FHLB stock, at cost | 9,190 | 14,375 |
Equity investments | 5,946 | 5,921 |
Loans, net of allowance for loan losses | 3,880,664 | 3,748,116 |
Loans held for sale | 667 | 1,684 |
Financial Liabilities: | ||
Deposits | 6,158,517 | 5,721,694 |
Other borrowings | 221,153 | 23,219 |
FHLB borrowings | 140,976 | 346,604 |
Subordinated notes, net of unamortized debt issuance costs | 91,357 | 98,642 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,594 | 48,480 |
Estimated Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 199,252 | 201,753 |
Investment securities: | ||
HTM, at carrying value | 0 | 0 |
Mortgage-backed securities: | ||
HTM, at carrying value | 0 | 0 |
FHLB stock, at cost | 0 | 0 |
Equity investments | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Other borrowings | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes, net of unamortized debt issuance costs | 0 | 0 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
HTM, at carrying value | 1,023,376 | 791 |
Mortgage-backed securities: | ||
HTM, at carrying value | 125,780 | 94,444 |
FHLB stock, at cost | 9,190 | 14,375 |
Equity investments | 5,946 | 5,921 |
Loans, net of allowance for loan losses | 0 | 0 |
Loans held for sale | 667 | 1,684 |
Financial Liabilities: | ||
Deposits | 6,158,517 | 5,721,694 |
Other borrowings | 221,153 | 23,219 |
FHLB borrowings | 140,976 | 346,604 |
Subordinated notes, net of unamortized debt issuance costs | 91,357 | 98,642 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,594 | 48,480 |
Estimated Fair Value | Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
HTM, at carrying value | 0 | 0 |
Mortgage-backed securities: | ||
HTM, at carrying value | 0 | 0 |
FHLB stock, at cost | 0 | 0 |
Equity investments | 0 | 0 |
Loans, net of allowance for loan losses | 3,880,664 | 3,748,116 |
Loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Other borrowings | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes, net of unamortized debt issuance costs | 0 | 0 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Fair_3
FAIR VALUE MEASUREMENT - Fair Value Measurements, Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 source | |
Available-for-sale Securities [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Number of additional third party sources used to validate prices | 2 |
Derivative [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Number of additional third party sources used to validate prices | 2 |
SHAREHOLDERS' EQUITY - Regulato
SHAREHOLDERS' EQUITY - Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Consolidated | |||
Common Equity Tier 1 (to Risk Weighted Assets) | |||
Common Equity Tier 1 Capital | $ 687,686 | $ 657,043 | |
Common Equity Tier 1 Capital for Capital Adequacy Purposes | $ 245,107 | $ 208,616 | |
Common Equity Tier 1 (to Risk Weighted Assets) Ratios [Abstract] | |||
Common Equity Tier 1 Capital to Risk Weighted Assets | 0.1263 | 0.1417 | |
Common Equity Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 0.0450 | 0.0450 | |
Tier 1 Capital (to Risk Weighted Assets) | |||
Tier 1 Capital | $ 746,140 | $ 715,492 | |
Tier 1 Capital Required for Capital Adequacy Purposes | $ 326,809 | $ 278,155 | |
Tier 1 Capital (to Risk Weighted Assets) Ratios | |||
Tier 1 Capital to Risk Weighted Assets | 0.1370 | 0.1543 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 0.0600 | 0.0600 | |
Total Capital (to Risk Weighted Assets) | |||
Total Capital | $ 877,281 | $ 841,300 | |
Total Capital Required for Capital Adequacy Purposes | $ 435,746 | $ 370,874 | |
Total Capital (to Risk Weighted Assets) Ratios | |||
Total Capital to Risk Weighted Assets | 0.1611 | 0.1815 | |
Total Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 0.0800 | 0.0800 | |
Tier 1 Capital (to Average Assets) | |||
Tier 1 Capital | [1] | $ 746,140 | $ 715,492 |
Tier 1 Capital Required for Capital Adequacy Purposes | [1] | $ 299,511 | $ 277,065 |
Tier 1 Capital (to Average Assets) Ratios | |||
Tier 1 Capital to Average Assets | [1] | 0.0996 | 0.1033 |
Tier 1 Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 0.0400 | 0.0400 |
Bank Only | |||
Common Equity Tier 1 (to Risk Weighted Assets) | |||
Common Equity Tier 1 Capital | $ 823,323 | $ 793,271 | |
Common Equity Tier 1 Capital for Capital Adequacy Purposes | 245,085 | 208,576 | |
Common Equity Tier 1 Capital to be Well Capitalized | $ 354,012 | $ 301,277 | |
Common Equity Tier 1 (to Risk Weighted Assets) Ratios [Abstract] | |||
Common Equity Tier 1 Capital to Risk Weighted Assets | 0.1512 | 0.1711 | |
Common Equity Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 0.0450 | 0.0450 | |
Common Equity Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0650 | 0.0650 | |
Tier 1 Capital (to Risk Weighted Assets) | |||
Tier 1 Capital | $ 823,323 | $ 793,271 | |
Tier 1 Capital Required for Capital Adequacy Purposes | 326,780 | 278,102 | |
Tier 1 Capital Required to be Well Capitalized | $ 435,707 | $ 370,803 | |
Tier 1 Capital (to Risk Weighted Assets) Ratios | |||
Tier 1 Capital to Risk Weighted Assets | 0.1512 | 0.1711 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 0.0600 | 0.0600 | |
Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 | |
Total Capital (to Risk Weighted Assets) | |||
Total Capital | $ 855,790 | $ 820,545 | |
Total Capital Required for Capital Adequacy Purposes | 435,707 | 370,803 | |
Total Capital Required to be Well Capitalized | $ 544,633 | $ 463,503 | |
Total Capital (to Risk Weighted Assets) Ratios | |||
Total Capital to Risk Weighted Assets | 0.1571 | 0.1770 | |
Total Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 0.0800 | 0.0800 | |
Total Capital Required to be Well Capitalized to Risk Weighted Assets | 0.1000 | 0.1000 | |
Tier 1 Capital (to Average Assets) | |||
Tier 1 Capital | [1] | $ 823,323 | $ 793,271 |
Tier 1 Capital Required for Capital Adequacy Purposes | [1] | 299,410 | 276,932 |
Tier 1 Capital Required to be Well Capitalized | [1] | $ 374,263 | $ 346,165 |
Tier 1 Capital (to Average Assets) Ratios | |||
Tier 1 Capital to Average Assets | [1] | 0.1100 | 0.1146 |
Tier 1 Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 0.0400 | 0.0400 |
Tier 1 Capital Required to be Well Capitalized to Average Assets | [1] | 0.0500 | 0.0500 |
[1]Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies. |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Payments of Ordinary Dividends [Abstract] | |||
Cash dividends paid per common share | $ 1.40 | $ 1.37 | $ 1.30 |
DIVIDEND REINVESTMENT AND COM_2
DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Issuance of common stock for dividend reinvestment plan (in shares) | 31,853 | 34,150 | 47,157 |
Stock issued during period under dividend reinvestment plan, average price per share (in dollars per share) | $ 38.70 | $ 39.64 | $ 30.21 |
Common Stock purchased (in shares) | 923,775 | 938,484 | 1,035,901 |
Repurchase of common stock, cost | $ 33,841 | $ 34,148 | $ 30,989 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ 14,700 | $ 12,674 | $ 15,766 |
Deferred income tax expense (benefit) | (89) | 4,752 | (4,430) |
Income tax expense | $ 14,611 | $ 17,426 | $ 11,336 |
INCOME TAXES - Summary of Net D
INCOME TAXES - Summary of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Allowance for loan losses | $ 7,668 | $ 7,407 |
Operating lease liabilities | 3,585 | 3,502 |
Unrealized losses on securities AFS | 44,299 | |
Effective hedging derivatives | 334 | |
Fair value adjustment on loans | 500 | 696 |
Unfunded status of defined benefit plan | 5,184 | 6,314 |
State business tax credit | 242 | 302 |
Stock-based compensation | 1,177 | 1,043 |
Other | 337 | 223 |
Gross deferred tax assets | 62,992 | 19,821 |
Deferred Tax Assets, Net | 34,695 | |
Liabilities | ||
Retirement and other benefit plans | 2,435 | 1,927 |
Premises and equipment | 9,269 | 9,062 |
Operating lease ROU assets | 3,216 | 3,165 |
Core deposit intangible | 548 | 913 |
Unrealized gains on securities AFS | 22,562 | |
Effective hedging derivatives | 12,829 | |
Gross deferred tax liabilities | $ 28,297 | 37,629 |
Deferred Tax Liabilities, Net | $ 17,808 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amount | |||
Statutory tax expense | $ 25,123 | $ 27,474 | $ 19,633 |
Increase (decrease) in taxes from: | |||
Tax exempt interest | (10,345) | (9,636) | (8,137) |
BOLI | (555) | (549) | (536) |
Share-based compensation | (93) | (392) | (70) |
State business tax | 312 | 366 | 329 |
Other, net | 169 | 163 | 117 |
Income tax expense | $ 14,611 | $ 17,426 | $ 11,336 |
Percent of Pre-Tax Income | |||
Statutory tax expense | 21% | 21% | 21% |
Increase (Decrease) in Taxes From: | |||
Percent of Pre-tax income, Tax exempt interest | (8.60%) | (7.40%) | (8.70%) |
Percent of Pre-tax income, Bank owned life insurance | (0.50%) | (0.40%) | (0.60%) |
Percent of Pre-tax income, Share-based compensation | (0.10%) | (0.30%) | (0.10%) |
Percent of Pre-tax income, State business tax | 0.30% | 0.30% | 0.40% |
Percent of Pre-tax income, Other net | 0.10% | 0.10% | 0.10% |
Percent of Pre-tax income, Income tax expense | 12.20% | 13.30% | 12.10% |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Narrative [Abstract] | ||
Deferred tax asset valuation allowance | $ 0 | $ 0 |
LEASES Narrative (Details)
LEASES Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 ft² | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Option to Extend | 10 years |
Building Acquired, Number of Square Feet | 202,000 |
Number of Square Feet We Occupy | 39,000 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Remaining Lease Term | 11 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Remaining Lease Term | 17 years 8 months 12 days |
Lessee, Operating Lease, Option to Terminate | 90 days |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 15,314 | $ 15,073 |
Operating lease liabilities | $ 17,070 | $ 16,676 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 1,773 | $ 1,811 | $ 2,193 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2021 USD ($) contract | May 31, 2020 USD ($) contract | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Operating Leased Assets [Line Items] | |||||||
Operating lease ROU assets | $ 15,314 | $ 15,073 | |||||
Operating cash flows from operating leases | 1,644 | 2,016 | $ 1,479 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,531 | $ 1,330 | [1] | $ 7,912 | [1] | ||
Lessee, Operating Lease, Number of Contracts | contract | 1 | 1 | |||||
Operating lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Operating lease ROU assets | $ 1,100 | $ 6,600 | |||||
[1]For the year ended December 31, 2021, the ROU assets obtained were primarily due to one lease that commenced in January 2021 with an initial ROU asset of $1.1 million. For the year ended December 31, 2020, the ROU assets obtained were primarily due to one lease that commenced in May 2020 with an initial ROU asset of $6.6 million. |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Information (Details) | Dec. 31, 2022 Rate | Dec. 31, 2021 Rate |
Leases [Abstract] | ||
Weighted average remaining lease term | 13 years 9 months 18 days | 14 years 10 months 24 days |
Weighted average discount rate | 2.98% | 2.90% |
LEASES - Future Operating Lease
LEASES - Future Operating Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 1,559 | |
2024 | 1,617 | |
2025 | 1,619 | |
2026 | 1,598 | |
2027 | 1,494 | |
2028 and thereafter | 13,098 | |
Total lease payments | 20,985 | |
Less: Interest | (3,915) | |
Present value of lease liabilities | $ 17,070 | $ 16,676 |
LEASES - Rental Income (Details
LEASES - Rental Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor, Operating Lease, Description [Abstract] | |||
Gross rental income | $ 3,173 | $ 3,288 | $ 3,277 |
Operating Lease, Income, Comprehensive Income, Extensible List, Not Disclosed, Flag | Gross rental income |
LEASES - Future Operating Lea_2
LEASES - Future Operating Lease Receivable (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 3,290 |
2024 | 2,656 |
2025 | 2,041 |
2026 | 1,760 |
2027 | 1,014 |
2028 and thereafter | 1,059 |
Total lease payments | $ 11,820 |
OFF-BALANCE-SHEET ARRANGEMENT_3
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Allowance for off-balance-sheet credit exposures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at beginning of period | $ 2,384 | $ 6,386 | $ 1,455 |
Provision for (reversal of) off-balance-sheet credit exposures | 1,303 | (4,002) | 91 |
Balance at end of period | 3,687 | 2,384 | 6,386 |
Impact of CECL adoption | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at beginning of period | $ 0 | 0 | 4,840 |
Balance at end of period | $ 0 | $ 0 |
OFF-BALANCE-SHEET ARRANGEMENT_4
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Off-Balance Sheet Arrangements, Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, at fair value | $ 1,323,617 | $ 1,065,710 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, at fair value | 1,296,773 | 1,053,002 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, at fair value | $ 26,844 | $ 12,708 |
OFF-BALANCE-SHEET ARRANGEMENT_5
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Securities | |||
Unsettled trades to purchase securities | $ 0 | $ 18,995,000 | $ 0 |
Unsettled trades to sell securities | 0 | 0 | |
Deposits [Abstract] | |||
Unsettled issuances of brokered CDs | $ 0 | $ 0 |
SIGNIFICANT GROUP CONCENTRATI_2
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK (Details) | 12 Months Ended |
Dec. 31, 2022 Rate | |
1-4 family residential real estate loans | Credit Concentration Risk | |
Concentration Risk [Line Items] | |
Real Estate Loans Collateralized by Owner-Occupied Residential Dwellings, Percentage | 20.70% |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||||
Cash and due from banks | $ 106,143 | $ 91,120 | |||
Other assets | 21,163 | 28,985 | |||
Total assets | 7,558,636 | 7,259,602 | |||
Liabilities | |||||
Subordinated notes, net of unamortized debt issuance costs | [1] | 98,674 | 98,534 | ||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,265 | 60,260 | |||
Other liabilities | 64,100 | 45,573 | |||
Total liabilities | 6,812,639 | 6,347,430 | |||
Stockholders' Equity | |||||
Common stock: ($1.25 par value, 80,000,000 shares authorized, 38,000,822 shares issued at December 31, 2022 and 37,968,969 shares issued at December 31, 2021) | 47,501 | 47,461 | |||
Paid-in capital | 784,545 | 780,501 | |||
Retained earnings | 239,610 | 179,813 | |||
Treasury stock: (shares at cost, 6,454,192 at December 31, 2022 and 5,616,917 at December 31, 2021) | (188,203) | (155,308) | |||
AOCI | (137,456) | 59,705 | |||
Total shareholders’ equity | 745,997 | 912,172 | $ 875,297 | $ 804,580 | |
Total liabilities and shareholders’ equity | 7,558,636 | 7,259,602 | |||
Parent | |||||
ASSETS | |||||
Cash and due from banks | 20,235 | 19,189 | |||
Other assets | 4,411 | 4,384 | |||
Total assets | 905,921 | 1,071,614 | |||
Liabilities | |||||
Subordinated notes, net of unamortized debt issuance costs | 98,674 | 98,534 | |||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,265 | 60,260 | |||
Other liabilities | 985 | 648 | |||
Total liabilities | 159,924 | 159,442 | |||
Stockholders' Equity | |||||
Common stock: ($1.25 par value, 80,000,000 shares authorized, 38,000,822 shares issued at December 31, 2022 and 37,968,969 shares issued at December 31, 2021) | 47,501 | 47,461 | |||
Paid-in capital | 784,545 | 780,501 | |||
Retained earnings | 239,610 | 179,813 | |||
Treasury stock: (shares at cost, 6,454,192 at December 31, 2022 and 5,616,917 at December 31, 2021) | (188,203) | (155,308) | |||
AOCI | (137,456) | 59,705 | |||
Total shareholders’ equity | 745,997 | 912,172 | |||
Total liabilities and shareholders’ equity | 905,921 | 1,071,614 | |||
Parent | Bank subsidiaries | |||||
ASSETS | |||||
Investment in subsidiaries at equity in underlying net assets | 879,449 | 1,046,215 | |||
Parent | Nonbank subsidiaries | |||||
ASSETS | |||||
Investment in subsidiaries at equity in underlying net assets | $ 1,826 | $ 1,826 | |||
[1]This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - BALANCE SHEETS SHARE INFORMATION (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Common Stock, Par or Stated Value Per Share | $ 1.25 | $ 1.25 |
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock, Shares, Issued | 38,000,822 | 37,968,969 |
Treasury Stock, Shares | 6,454,192 | 5,616,917 |
Parent | ||
Common Stock, Par or Stated Value Per Share | $ 1.25 | $ 1.25 |
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock, Shares, Issued | 38,000,822 | 37,968,969 |
Treasury Stock, Shares | 6,454,192 | 5,616,917 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION - INCOME STATEMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income | |||
Total interest income | $ 252,981 | $ 215,987 | $ 231,828 |
Expense | |||
Interest Expense | 40,640 | 26,430 | 44,563 |
Income tax benefit | (14,611) | (17,426) | (11,336) |
Net income | 105,020 | 113,401 | 82,153 |
Parent | |||
Income | |||
Dividends from subsidiary | 85,000 | 100,000 | 72,000 |
Interest income | 72 | 42 | 55 |
Total interest income | 85,072 | 100,042 | 72,055 |
Expense | |||
Interest Expense | 6,412 | 9,636 | 8,129 |
Other | 3,148 | 4,162 | 3,240 |
Total expense | 9,560 | 13,798 | 11,369 |
Income before income tax expense | 75,512 | 86,244 | 60,686 |
Income tax benefit | 1,992 | 2,889 | 2,375 |
Income before equity in undistributed earnings of subsidiaries | 77,504 | 89,133 | 63,061 |
Equity in undistributed earnings of subsidiaries | 27,516 | 24,268 | 19,092 |
Net income | $ 105,020 | $ 113,401 | $ 82,153 |
PARENT COMPANY FINANCIAL INFO_6
PARENT COMPANY FINANCIAL INFORMATION - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | |||
Net Income | $ 105,020 | $ 113,401 | $ 82,153 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Stock compensation expense | 3,221 | 3,020 | 3,020 |
Loss on redemption of subordinated notes | 0 | 1,118 | 0 |
Net change in other assets | (5,447) | (2,672) | (6,445) |
Net change in other liabilities | 94,674 | 24,482 | (15,594) |
Net cash provided by (used in) operating activities | 226,517 | 156,104 | 90,520 |
INVESTING ACTIVITIES: | |||
Net cash provided by (used in) investing activities | (634,779) | (194,008) | (223,735) |
FINANCING ACTIVITIES: | |||
Redemption of subordinated notes | 0 | (100,011) | 0 |
Purchase of common stock | (33,708) | (34,148) | (30,989) |
Cash dividends paid | (44,936) | (44,569) | (43,204) |
Net cash provided by (used in) financing activities | 405,761 | 131,249 | 130,926 |
Net increase (decrease) in cash and cash equivalents | (2,501) | 93,345 | (2,289) |
Cash and cash equivalents at beginning of period | 201,753 | ||
Cash and cash equivalents at end of period | 199,252 | 201,753 | |
Parent | |||
OPERATING ACTIVITIES: | |||
Net Income | 105,020 | 113,401 | 82,153 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Amortization | 145 | 277 | 202 |
Stock compensation expense | 342 | 306 | 197 |
Equity in undistributed earnings of subsidiaries | (27,516) | (24,268) | (19,092) |
Loss on redemption of subordinated notes | 0 | 1,118 | 0 |
Net change in other assets | (27) | 348 | (546) |
Net change in other liabilities | 204 | (1,732) | (58) |
Net cash provided by (used in) operating activities | 78,168 | 89,450 | 62,856 |
INVESTING ACTIVITIES: | |||
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
FINANCING ACTIVITIES: | |||
Net proceeds from issuance of subordinated notes | 0 | (95) | 98,478 |
Redemption of subordinated notes | 0 | (100,011) | 0 |
Purchase of common stock | (33,708) | (34,148) | (30,989) |
Proceeds from issuance of common stock | 1,522 | 8,546 | 2,723 |
Cash dividends paid | (44,936) | (44,569) | (43,204) |
Net cash provided by (used in) financing activities | (77,122) | (170,277) | 27,008 |
Net increase (decrease) in cash and cash equivalents | 1,046 | (80,827) | 89,864 |
Cash and cash equivalents at beginning of period | 19,189 | 100,016 | 10,152 |
Cash and cash equivalents at end of period | $ 20,235 | $ 19,189 | $ 100,016 |