Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-10792 | |
Entity Registrant Name | HORIZON BANCORP, INC. | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000706129 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1562417 | |
Entity Address, Address Line One | 515 Franklin Street | |
Entity Address, City or Town | Michigan City | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46360 | |
City Area Code | 219 | |
Local Phone Number | 879-0211 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | HBNC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,772,446 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 86,458 | $ 98,831 |
Interest-earning time deposits | 9,239 | 8,455 |
Investment securities, available for sale | 900,476 | 834,776 |
Investment securities, held to maturity (fair value of $207,324 and $215,147) | 199,467 | 207,899 |
Loans held for sale | 6,245 | 4,088 |
Loans, net of allowance for loan losses of $48,440 and $17,667 | 3,658,859 | 3,619,174 |
Premises and equipment, net | 92,785 | 92,209 |
Federal Home Loan Bank stock | 22,447 | 22,447 |
Goodwill | 151,238 | 151,238 |
Other intangible assets | 25,723 | 26,679 |
Interest receivable | 17,774 | 18,828 |
Cash value of life insurance | 95,153 | 95,577 |
Other assets | 85,461 | 66,628 |
Total assets | 5,351,325 | 5,246,829 |
Deposits | ||
Non-interest bearing | 709,978 | 709,760 |
Interest bearing | 3,172,293 | 3,221,242 |
Total deposits | 3,882,271 | 3,931,002 |
Borrowings | 704,613 | 549,741 |
Subordinated debentures | 56,374 | 56,311 |
Interest payable | 2,772 | 3,062 |
Other liabilities | 74,453 | 50,690 |
Total liabilities | 4,720,483 | 4,590,806 |
Commitments and contingent liabilities | ||
Stockholders’ Equity | ||
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares | 0 | 0 |
Common stock | 0 | 0 |
Additional paid-in capital | 361,019 | 379,853 |
Retained earnings | 260,501 | 269,738 |
Accumulated other comprehensive income | 9,322 | 6,432 |
Total stockholders’ equity | 630,842 | 656,023 |
Total liabilities and stockholders’ equity | 5,351,325 | 5,246,829 |
Allowance for credit losses on loans | $ 48,440 | $ 17,667 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Investment securities, held to maturity fair value | $ 207,324 | $ 215,147 |
Total ending allowance balance | $ 48,440 | $ 17,667 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 99,000,000 | 99,000,000 |
Common stock, shares issued | 43,788,692 | 45,000,840 |
Common stock, shares outstanding (in shares) | 43,763,623 | 44,975,771 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest Income | ||
Loans receivable | $ 44,958 | $ 39,623 |
Investment securities - taxable | 2,898 | 3,122 |
Investment securities - tax exempt | 3,798 | 2,628 |
Total interest income | 51,654 | 45,373 |
Interest Expense | ||
Deposits | 7,716 | 6,876 |
Borrowed funds | 2,238 | 3,621 |
Subordinated debentures | 775 | 596 |
Total interest expense | 10,729 | 11,093 |
Net Interest Income | 40,925 | 34,280 |
Credit loss expense | 8,600 | 364 |
Net Interest Income after Credit Loss Expense | 32,325 | 33,916 |
Non-interest Income | ||
Service charges on deposit accounts | 2,446 | 1,877 |
Wire transfer fees | 171 | 118 |
Interchange fees | 1,896 | 1,361 |
Fiduciary activities | 2,528 | 2,089 |
Debt and Equity Securities, Gain (Loss) | 339 | 15 |
Gain on sale of mortgage loans | 3,473 | 1,309 |
Mortgage servicing income net of impairment | 25 | 606 |
Increase in cash value of bank owned life insurance | 554 | 513 |
Death benefit on bank owned life insurance | 233 | 0 |
Other income | 398 | 824 |
Total non-interest income | 12,063 | 8,712 |
Non-interest Expense | ||
Salaries and employee benefits | 16,591 | 14,466 |
Net occupancy expenses | 3,252 | 2,772 |
Data processing | 2,405 | 1,966 |
Professional fees | 536 | 493 |
Outside services and consultants | 1,915 | 3,530 |
Loan expense | 2,099 | 1,949 |
FDIC insurance expense | 150 | 160 |
Other losses | 120 | 104 |
Other expense | 4,081 | 4,298 |
Total non-interest expense | 31,149 | 29,738 |
Income Before Income Taxes | 13,239 | 12,890 |
Income Tax Expense (Benefit) | 1,584 | 2,074 |
Net Income | $ 11,655 | $ 10,816 |
Basic Earnings Per Share (in USD per share) | $ 0.26 | $ 0.28 |
Diluted Earnings Per Share (in USD per share) | $ 0.26 | $ 0.28 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Accumulated other comprehensive earnings reclassifications | $ 339,000 | $ 15,000 |
Income tax expense (benefit) from reclassification | $ 71,000 | $ 3,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 11,655 | $ 10,816 |
Change in fair value of derivative instruments: | ||
Change in fair value of derivative instruments for the period | (3,965) | (1,106) |
Income tax effect | 833 | 232 |
Changes from derivative instruments | (3,132) | (874) |
Change in securities: | ||
Unrealized appreciation for the period on AFS securities | 7,992 | 11,694 |
Amortization from transfer of securities from available for sale to held to maturity securities | (30) | (38) |
Reclassification adjustment for securities gains realized in income | (339) | (15) |
Income tax effect | (1,601) | (2,445) |
Unrealized gains on securities | 6,022 | 9,196 |
Other Comprehensive Income, Net of Tax | 2,890 | 8,322 |
Comprehensive Income | $ 14,545 | $ 19,138 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Salin Banc shares Inc | Additional Paid-in Capital | Additional Paid-in CapitalSalin Banc shares Inc | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balances at Dec. 31, 2018 | $ 491,992 | $ 276,101 | $ 224,035 | $ (8,144) | ||
Net income | 10,816 | 10,816 | ||||
Other comprehensive income (loss), net of tax | 8,322 | 8,322 | ||||
Amortization of unearned compensation | 91 | 91 | ||||
Exercise of stock options | 117 | 117 | ||||
Stock option expense | 57 | 57 | ||||
Stock issued stock plans | 125 | 125 | ||||
Stock issued in Salin acquisition | $ 102,722 | $ 102,722 | ||||
Cash dividends on common stock | (4,524) | (4,524) | ||||
Ending Balances at Mar. 31, 2019 | $ 609,468 | 378,963 | 230,327 | 178 | ||
Cash dividends on common stock, per share | $ 0.10 | |||||
Beginning Balances at Dec. 31, 2019 | $ 656,023 | 379,853 | 269,738 | 6,432 | ||
Net income | 11,655 | 11,655 | ||||
Other comprehensive income (loss), net of tax | 2,890 | 2,890 | ||||
Amortization of unearned compensation | 200 | 200 | ||||
Exercise of stock options | 255 | 255 | ||||
Stock option expense | 50 | 50 | ||||
Stock issued stock plans | (297) | (297) | ||||
Repurchase of outstanding stock | (19,636) | (19,636) | ||||
Cash dividends on common stock | (5,257) | (5,257) | ||||
Ending Balances at Mar. 31, 2020 | $ 630,842 | $ 361,019 | $ 260,501 | $ 9,322 | ||
Cash dividends on common stock, per share | $ 0.12 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock, per share | $ 0.12 | $ 0.10 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities | ||
Net income | $ 11,655 | $ 10,816 |
Items not requiring (providing) cash | ||
Provision for credit losses | 8,600 | 364 |
Depreciation and amortization | 2,610 | 1,549 |
Share based compensation | 50 | 57 |
Mortgage servicing rights, net impairment | 322 | (14) |
Premium amortization on securities, net | 1,997 | 1,285 |
Gain on sale of investment securities | (339) | (15) |
Gain on sale of mortgage loans | (3,473) | (1,309) |
Proceeds from sales of loans | 68,892 | 30,801 |
Loans originated for sale | (67,576) | (30,433) |
Change in cash value life insurance | (554) | (513) |
Gain on sale of other real estate owned | (8) | 26 |
Net change in: | ||
Interest receivable | 1,054 | (696) |
Interest payable | (290) | (386) |
Other assets | 5,721 | 97,788 |
Other liabilities | (484) | 2,246 |
Net cash provided by operating activities | 28,177 | 111,566 |
Investing Activities | ||
Purchases of securities available for sale | (129,405) | (63,574) |
Proceeds from sales, maturities, calls and principal repayments of securities available for sale | 71,395 | 42,715 |
Proceeds from maturities of securities held to maturity | 6,708 | 2,927 |
Net change in interest-earning time deposits | (784) | (243) |
Change in FHLB stock | 0 | (803) |
Net change in loans | (68,685) | (37,028) |
Proceeds on the sale of OREO and repossessed assets | 155 | 487 |
Change in premises and equipment, net | (2,030) | 3,260 |
Death benefit on bank owned life insurance | 233 | 0 |
Repurchase of outstanding stock | (19,636) | 0 |
Net cash provided by (used in) investing activities | (142,049) | 76,486 |
Net change in: | ||
Deposits | (48,731) | 7,180 |
Borrowings | 154,935 | (163,061) |
Proceeds from issuance of stock | 552 | (8) |
Dividends paid on common stock | (5,257) | (4,524) |
Net cash provided by (used in) financing activities | 101,499 | (160,413) |
Net Change in Cash and Cash Equivalents | (12,373) | 27,639 |
Cash and Cash Equivalents, Beginning of Period | 98,831 | 58,492 |
Cash and Cash Equivalents, End of Period | 86,458 | 86,131 |
Additional Supplemental Information | ||
Interest paid | 11,019 | 10,653 |
Income taxes paid | 0 | 0 |
Transfer of loans to other real estate and repossessed assets | 609 | 759 |
Right-of-use assets exchanged for lease obligations | 0 | 3,411 |
Salin | ||
Investing Activities | ||
Net cash received in acquisition, Salin | $ 0 | $ 128,745 |
Future Accounting Matters
Future Accounting Matters | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Future Accounting Matters | Note 14 – Future Accounting Matters FASB ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The FASB has issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740. The guidance also improves consistent application by clarifying and amending existing guidance from ASC 740. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods therein and is to be applied on a retrospective, modified retrospective or prospective approach, depending on the specific amendment. Early adoption is permitted. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements, but it is not expected to have a material impact. |
General Litigation
General Litigation | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation | Note 15 – General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operation and cash flows of the Company. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 1 - Accounting Policies The accompanying unaudited condensed consolidated financial statements include the accounts of Horizon Bancorp, Inc. (“Horizon” or the “Company”) and its wholly-owned subsidiaries, including Horizon Bank (“Horizon Bank” or the “Bank”). Horizon Bank (formerly known as “Horizon Bank, N.A.”) was a national association until its conversion to an Indiana commercial bank effective June 23, 2017. All inter-company balances and transactions have been eliminated. The results of operations for the periods ended March 31, 2020 and March 31, 2019 are not necessarily indicative of the operating results for the full year of 2020 or 2019. The accompanying unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of Horizon’s management, necessary to fairly present the financial position, results of operations and cash flows of Horizon for the periods presented. Those adjustments consist only of normal recurring adjustments. Certain information and note disclosures normally included in Horizon’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Horizon’s Annual Report on Form10-K for 2019 filed with the Securities and Exchange Commission on February 28, 2020. The condensed consolidated balance sheet of Horizon as of December 31, 2019 has been derived from the audited balance sheet as of that date. On July 16, 2019, the Board of Directors of the Company authorized a stock repurchase program for up to 2,250,000 shares of Horizon’s issued and outstanding common stock, no par value. As of March 31, 2020, Horizon had repurchased a total of 373,323 shares at an average price per share of $15.86. In addition to the stock repurchase program, Horizon agreed to repurchase 1,000,000 shares at a price per share of $15.19 from an individual shareholder on March 6, 2020. Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share. Three Months Ended March 31 2020 2019 Basic earnings per share Net income $ 11,655 $ 10,816 Weighted average common shares outstanding 44,658,512 38,822,543 Basic earnings per share $ 0.26 $ 0.28 Diluted earnings per share Net income $ 11,655 $ 10,816 Weighted average common shares outstanding 44,658,512 38,822,543 Effect of dilutive securities: Restricted stock 39,845 — Stock options 58,359 83,629 Weighted average common shares outstanding 44,756,716 38,906,172 Diluted earnings per share $ 0.26 $ 0.28 There were 293,665 shares for the three months ended March 31, 2020, which were not included in the computation of diluted earnings per share because they were non-dilutive. There were 350,618 shares for the three months ended March 31, 2019, which were not included in the computation of diluted earnings per share because they were non-dilutive. Horizon has share-based employee compensation plans, which are described in the notes to the financial statements included in the December 31, 2019 Annual Report on Form 10-K. Adoption of New Accounting Standards Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments – On January 1, 2020, the Company adopted ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”). The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held to maturity securities. It also applies to off–balance sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar agreements). In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance, rather than as a write–down, on available for sale debt securities management does not intend to sell or believe that it is not more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after December 31, 2019, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $15.6 million as of January 1, 2020 for the cumulative effect of adopting ASC 326. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”), previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $2.8 million of allowance for credit losses (“ACL”) on loans. The following table illustrates the impact of ASC 326. January 1, 2020 (dollars in thousands) As Reported Pre-ASC 326 Impact of Loans Commercial $ 25,614 $ 11,996 $ 13,618 Real estate 4,971 923 4,048 Mortgage warehouse 1,077 1,077 — Consumer 8,582 3,671 4,911 Allowance for credit losses on loans $ 40,244 $ 17,667 $ 22,577 Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Accrued interest receivable totaled $11.0 million at March 31, 2020 was excluded from the ACL calculation and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the effective yield method without anticipating prepayments. From time to time, the Bank obtains information that may lead management to believe that the collection of payments may be doubtful on a particular loan. In recognition of this, it is management’s policy to convert the loan from an “earning asset” to a non-accruing loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Further, it is management’s policy to generally place a loan on a non-accrual status when the payment is delinquent in excess of 90 days or the loan has had the accrual of interest discontinued by management. The officer responsible for the loan and the Chief Commercial Banking Officer and/or the Chief Operations Officer must review all loans placed on non-accrual status. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal in accordance with the loan terms. The Company requires a period of satisfactory performance of not less than six months before returning a non-accrual loan to accrual status. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down or specific allocation of family first and junior lien mortgages to the net realizable value less costs to sell when the value is known but no later than when a loan is 180 days past due. Pursuant to such guidelines, the Company also charges-off unsecured open-end loans when the loan is contractually 90 days past due, and charges down to the net realizable value other secured loans when they are contractually 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection in full will occur regardless of delinquency status, are not charged off. A loan becomes impaired when, based on current information, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is classified as impaired, the degree of impairment must be recognized by estimating future cash flows from the debtor. The present value of these cash flows is computed at a discount rate based on the interest rate contained in the loan agreement. However, if a particular loan has a determinable market value for its collateral, the creditor may use that value. Also, if the loan is secured and considered collateral dependent, the creditor may use the fair value of the collateral. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. Smaller-balance, homogeneous loans are evaluated for impairment in total. Such loans include residential first mortgage loans secured by 1-4 family residences, residential construction loans, automobile, home equity, second mortgage loans and mortgage warehouse loans. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower operating results and financial condition indicate that underlying cash flows of a borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 30 days or more. Loans are generally moved to non-accrual status when they are 90 days or more past due. These loans are often considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms, including troubled debt restructurings, are measured for impairment. Allowable methods for determining the amount of impairment include the three methods described above. Purchased Credit Deteriorated Loans The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL on loans is determined using the same methodology as other loans held for investment. The initial ACL on loans determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and ACL on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL on loans are recorded through credit loss expense. The Company adopted this ASU using the prospective transition approach for PCD loans previously accounted for under ASC 310-30. In accordance with the standard, we did not assess whether PCI loans met the criteria of PCD as of the date of adoption and all loans previously classified as PCI were updated to the PCD classification. Pools utilized for PCI accounting under ASC 310-30 were not considered since the Company did not have PCI pools at the time of adoption. PCD loans were assessed using prior specific loan reviews for the initial PCD loan ACL. At the date of adoption, no securities were determined to be PCD. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged-off against the allowance when management believes the loan balance is confirmed to no longer be collectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, changes in economic conditions, or other relevant factors. The Company considers the following when estimating credit losses: 1) available information relevant to assessing the collectibility of cash flows including internal information, external information or a combination of both relating to past events, current conditions and reasonable and supportable forecasts; 2) relevant qualitative and quantitative factors relating to the environment in which the Bank operates and factors specific to the borrower; 3) off-balance-sheet credit exposures; and credit support. ACL on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics which may include any one or a combination of the following: internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. The ACL for a specific portfolio segment is computed by multiplying the loss rate by the amortized cost balance of the segment with adjustments for other qualitative factors as described above. As appropriate, newer credit products or portfolios with limited historical loss may use applicable external data for determining the ACL until experience justifies that sufficient product maturity supports the estimate of expected credit losses. Pursuant to ASC 326-20-30-9, an entity shall not rely solely on past events to estimate expected credit losses, and should consider adjustments to historical information to reflect the extent to which management expects current conditions and forecasted conditions to differ from the periods utilized for the historical loss rate calculation. Management has incorporated an adjustment of the historical loss rate calculated within the model to reflect current and forecasted condition and has applied this adjustment on a qualitative factor basis to the aggregate pool loss rate. The qualitative adjustment is based on a combination of external econometric data and internal factors such as portfolio composition, changes in management, changes in loan policy and other factors. The economic forecast is based in part on economic indexes and quantitative matrices with a six to twelve month forecast. The qualitative adjustment is calculated based on current and forecasted conditions and evaluated each quarter by management, and therefore is dynamic in nature. As a result of the forecast being applied as a qualitative factor and adjusted quarterly, no reversion to the historical loss rate is necessary, as the historical base loss rate is preserved in the calculation of “all in” loss rate. Specific reserves reflect impairment on loans identified for evaluation or individually considered non-performing, including troubled debt restructurings and receivables where the Company has determined foreclosure is probable. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of non-accrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans and leases where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include commercial impaired loans, jumbo residential mortgages (as defined), and jumbo home equity loans with a balance exceeding $250,000, and other loans as determined by management. ACL for residential and consumer loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The provision for credit losses on loans on individually evaluated loans is recognized on the fair value of collateral adjusted for estimated costs to sell, the basis of the present value of expected future cash flows discounted at the effective interest rate or the observable market price as of the relevant date. The table below identifies the Company's loan portfolio segments and classes. Portfolio Segment Class of Financing Receivable Commercial Owner occupied real estate Non-owner occupied real estate Residential spec homes Development & spec land Commercial and industrial Real estate Residential mortgage Residential construction Mortgage warehouse Mortgage warehouse Consumer Direct installment Indirect installment Home equity Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity's method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan. Commercial Commercial loans are primarily based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may incorporate a personal guarantee. However, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and, secondarily, as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy, or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow, and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Real Estate and Consumer With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Mortgage Warehousing Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. Based on the agreements with each mortgage company, at any time a mortgage company can reacquire from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company reacquire an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to reacquire its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Troubled Debt Restructurings (“TDR”) A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. The ACL on loans on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provides all banks with the option to elect either or both of the following from March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the termination of the national emergency: i. to suspend the requirements under GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR; and/or ii. to suspend any determination of a loan modified as a result of the effects of the COVID-19 pandemic as being a TDR, including impairment for accounting purposes. If a bank elects a suspension noted above, the suspension (i) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and (ii) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Company determines the estimated amount of expected credit extensions based on historical usage to calculate the amount of exposure for a loss estimate. After review of the expected credit losses on OBS, the Company determined the amount not being recorded as immaterial at this time. Allowance for Credit Losses on Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recorded in other comprehensive income. Changes in the ACL are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Allowance for Credit Losses on Held to Maturity Securities For held to maturity securities, the Company conducts an assessment of its held to maturity securities at the time of purchase and on at least an annual basis to ensure such investment securities remain within appropriate levels of risk and continue to perform satisfactorily in fulfilling its obligations. The Company considers, among other factors, the nature of the securities and credit ratings or financial condition of the issuer. If available, the Company obtains a credit rating for issuers from Nationally Recognized Statistical Rating Organization (“NRSRO”) for consideration. If this assessment indicates that a material credit loss exists, the present value of cash flows expected to be collected form the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss. After completing this assessment, management determined any credit losses as of March 31, 2020 were not material to the consolidated financial statements. FASB ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment - On January 1, 2020, the Company adopted the provision of ASU No. 2017-04, which eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test. At each reporting date between annual goodwill impairment tests, Horizon considers potential indicators of impairment. Given the current economic uncertainty and volatility surrounding COVID-19, Horizon assessed whether the events and circumstances resulted in it being more likely than not that the fair value of any reporting unit |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions Salin Bancshares, Inc. On March 26, 2019, Horizon completed the acquisition of Salin Bancshares, Inc. (“Salin”), an Indiana corporation, and Horizon Bank’s acquisition of Salin Bank and Trust Company (“Salin Bank”), an Indiana commercial bank and wholly-owned subsidiary of Salin, through mergers effective March 26, 2019. Under the terms of the Merger Agreement, shareholders of Salin received 23,907.5 shares of Horizon common stock and $87,417.17 in cash for each outstanding share of Salin common stock. Salin shares outstanding at the closing to be exchanged were 275, and the shares of Horizon common stock issued to Salin shareholders totaled 6,563,697. The Salin shareholders received cash in lieu of fractional shares. Based upon the March 25, 2019 closing price of $15.65 per share of Horizon common stock immediately prior to the effectiveness of the merger the transaction has an implied valuation of approximately $126.7 million. The Company incurred approximately $5.6 million in costs related to the acquisition. These expenses are classified in the non-interest expense section of the income statement and are primarily located in the data processing, professional fees, outside services and consultants and other expense line items. As a result of the acquisition, the Company was able to increase its deposit base and reduce transaction costs. The Company also expects to reduce costs through economies of scale. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Assets Liabilities Cash and due from banks $ 152,745 Deposits Investment securities, available for sale 54,319 Non-interest bearing $ 188,744 Loans NOW accounts 207,567 Commercial 352,798 Savings and money market 274,504 Residential mortgage 131,008 Certificates of deposit 70,529 Consumer 85,112 Total deposits 741,344 Total loans 568,918 Borrowings 70,495 Premises and equipment, net 20,425 Subordinated debentures 18,376 FRB and FHLB stock 3,571 Interest payable 826 Goodwill 31,358 Other liabilities 8,759 Core deposit intangible 19,818 Total liabilities assumed $ 839,800 Interest receivable 2,488 Other assets 112,880 Total assets purchased $ 966,522 Common shares issued $ 102,722 Cash paid 24,000 Total purchase price $ 126,722 Of the total purchase price of $126.7 million, $19.8 million has been allocated to core deposit intangible. Additionally, $31.4 million has been allocated to goodwill and none of the purchase price is deductible. The core deposit intangible is being amortized over 10 years on a straight line basis. The Company acquired various loans in the acquisition that had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current assumptions, such as default rates, severity and prepayment speeds. The following table details an estimate of the acquired loans that are accounted for in accordance with ASC 310-30 as of March 26, 2019. Contractually required principal and interest at acquisition $ 22,672 Contractual cash flows not expected to be collected (nonaccretable differences) 6,694 Expected cash flows at acquisition 15,978 Interest component of expected cash flows (accretable discount) 735 Fair value of acquired loans accounted for under ASC310-30 $ 15,243 Estimates of certain loans, those for which specific credit-related deterioration has occurred since origination, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans is based on reasonable expectation about the timing and amount of cash flows to be collected. The results of operations of Salin have been included in the Company’s consolidated financial statements since the acquisition date. The following schedule includes pro-forma results for the three months ended March 31, 2019 as if the Salin acquisition had occurred as of the beginning of the comparable prior reporting period. Three Months Ended March 31 2019 Summary of Operations: Net Interest Income $ 42,182 Provision for Loan Losses 664 Net Interest Income after Provision for Loan Losses 41,518 Non-interest Income 9,126 Non-interest Expense 42,152 Income before Income Taxes 8,492 Income Tax Expense 2,017 Net Income 6,475 Net Income Available to Common Shareholders $ 6,475 Basic Earnings per Share $ 0.17 Diluted Earnings per Share $ 0.17 The pro-forma information includes adjustments for interest income on loans, amortization of intangibles arising from the transaction, interest expense on deposits acquired, premises expense for the banking centers acquired and the related income tax effects. The pro-forma financial information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3 – Securities The fair value of securities is as follows: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale State and municipal $ 460,013 $ 15,311 $ (4,121) $ 471,203 Federal agency collateralized mortgage obligations 253,977 4,020 (184) 257,813 Federal agency mortgage-backed pools 155,289 4,761 — 160,050 Corporate notes 10,857 553 — 11,410 Total available for sale investment securities $ 880,136 $ 24,645 $ (4,305) $ 900,476 Held to maturity State and municipal $ 183,478 $ 7,496 $ (117) $ 190,857 Federal agency collateralized mortgage obligations 3,693 53 — 3,746 Federal agency mortgage-backed pools 12,296 425 — 12,721 Total held to maturity investment securities $ 199,467 $ 7,974 $ (117) $ 207,324 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale U.S. Treasury and federal agencies $ 1,415 $ — $ (2) $ 1,413 State and municipal 396,931 11,288 (2,451) 405,768 Federal agency collateralized mortgage obligations 267,272 2,543 (563) 269,252 Federal agency mortgage-backed pools 145,623 1,207 (258) 146,572 Corporate notes 10,848 923 — 11,771 Total available for sale investment securities $ 822,089 $ 15,961 $ (3,274) $ 834,776 Held to maturity State and municipal $ 190,767 $ 7,129 $ (54) $ 197,842 Federal agency collateralized mortgage obligations 4,560 13 (5) 4,568 Federal agency mortgage-backed pools 12,572 194 (29) 12,737 Total held to maturity investment securities $ 207,899 $ 7,336 $ (88) $ 215,147 Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. While these securities are held in the available for sale portfolio and held-to-maturity, Horizon intends, and has the ability, to hold them until the earlier of a recovery in fair value or maturity. The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2020 December 31, 2019 Amortized Fair Amortized Fair Available for sale Within one year $ 44,227 $ 44,107 $ 37,386 $ 37,321 One to five years 41,322 41,175 41,230 41,293 Five to ten years 114,900 119,147 117,004 122,145 After ten years 270,421 278,184 213,574 218,193 470,870 482,613 409,194 418,952 Federal agency collateralized mortgage obligations 253,977 257,813 267,272 269,252 Federal agency mortgage-backed pools 155,289 160,050 145,623 146,572 Total available for sale investment securities $ 880,136 $ 900,476 $ 822,089 $ 834,776 Held to maturity Within one year $ 10,082 $ 10,127 $ 7,811 $ 7,874 One to five years 51,401 52,364 56,037 57,048 Five to ten years 91,291 95,026 94,756 98,480 After ten years 30,704 33,340 32,163 34,440 183,478 190,857 190,767 197,842 Federal agency collateralized mortgage obligations 3,693 3,746 4,560 4,568 Federal agency mortgage-backed pools 12,296 12,721 12,572 12,737 Total held to maturity investment securities $ 199,467 $ 207,324 $ 207,899 $ 215,147 The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2020 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Investment Securities State and municipal $ 152,037 $ (3,956) $ 7,336 $ (282) $ 159,373 $ (4,238) Federal agency collateralized mortgage obligations 27,685 (184) — — 27,685 (184) Total temporarily impaired securities $ 179,722 $ (4,140) $ 7,336 $ (282) $ 187,058 $ (4,422) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Investment Securities U.S. Treasury and federal agencies $ 1,413 $ (2) $ — $ — $ 1,413 $ (2) State and municipal 129,942 (2,374) 6,279 (131) 136,221 (2,505) Federal agency collateralized mortgage obligations 68,043 (308) 23,301 (260) 91,344 (568) Federal agency mortgage-backed pools 24,740 (104) 37,822 (183) 62,562 (287) Corporate notes — — — — — — Total temporarily impaired securities $ 224,138 $ (2,788) $ 67,402 $ (574) $ 291,540 $ (3,362) Information regarding security proceeds, gross gains and gross losses are presented below. Three Months Ended March 31 2020 2019 Sales of securities available for sale Proceeds $ 32,036 $ 17,587 Gross gains 389 59 Gross losses (50) (44) |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | Note 4 – Loans The following table presents total loans outstanding by portfolio class, as of March 31, 2020: March 31, Commercial Owner occupied real estate $ 510,901 Non-owner occupied real estate 992,595 Residential spec homes 11,668 Development & spec land 32,991 Commercial and industrial 502,247 Total commercial 2,050,402 Real estate Residential mortgage 733,034 Residential construction 24,495 Mortgage warehouse 223,519 Total real estate 981,048 Consumer Direct installment 40,064 Indirect installment 360,293 Home equity 275,492 Total consumer 675,849 Total loans 3,707,299 Allowance for loan losses (48,440) Net loans $ 3,658,859 Total loans include net deferred loan costs of $3.0 million at March 31, 2020. The following table presents total loans outstanding, as of December 31, 2019: December 31, Commercial Working capital and equipment $ 938,317 Real estate, including agriculture 978,891 Tax exempt 63,571 Other 65,872 Total 2,046,651 Real estate 1-4 family 762,571 Other 8,146 Total 770,717 Consumer Auto 362,729 Recreation 16,262 Real estate/home improvement 43,585 Home equity 237,979 Unsecured 7,286 Other 1,339 Total 669,180 Mortgage warehouse 150,293 Total loans 3,636,841 Allowance for loan losses (17,667) Loans, net $ 3,619,174 |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired in a Transfer | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Accounting for Certain Loans Acquired in a Transfer | Note 5 – Accounting for Certain Loans Acquired in a Transfer The Company has acquired loans in acquisitions, whereby the transferred loans had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages prior to January 1, 2020. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. The carrying amounts of those loans included in the balance sheet amounts of loans receivable as of December 31, 2019 are as follows: December 31, 2019 Commercial Real Estate Consumer Outstanding Balance Allowance for Loan Losses Carrying Amount Heartland $ 197 $ 99 $ — $ 296 $ — $ 296 Summit 88 473 — 561 — 561 Peoples 229 35 — 264 — 264 Kosciusko 244 131 — 375 — 375 LaPorte 353 793 20 1,166 — 1,166 Lafayette 1,867 — — 1,867 — 1,867 Wolverine 2,289 — — 2,289 — 2,289 Salin 4,938 1,912 962 7,812 133 7,679 Total $ 10,205 $ 3,443 $ 982 $ 14,630 $ 133 $ 14,497 Accretable yield, or income expected to be collected for the three months ended March 31, 2019 is as follows: Three Months Ended March 31, 2019 Beginning balance Additions Accretion Reclassification from nonaccretable difference Disposals Ending balance Heartland $ 174 $ — $ (8) $ — $ — $ 166 Summit 42 — (3) — (11) 28 Kosciusko 300 — (17) — — 283 LaPorte 829 — (29) — — 800 Lafayette 609 — (35) — (171) 403 Wolverine 698 — (123) — (8) 567 Salin — 3,368 — — — 3,368 Total $ 2,652 $ 3,368 $ (215) $ — $ (190) $ 5,615 During the three months ended March 31, 2019, the Company increased the allowance for loan losses on purchased loans by a charge to the income statement of $296,000. |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 6 – Allowance for Credit and Loan Losses The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Commercial Real Estate Mortgage Warehouse Consumer Total Balance, beginning of period $ 11,996 $ 923 $ 1,077 $ 3,671 $ 17,667 Impact of adopting ASC 326 10,832 4,048 — 4,911 19,791 Initial PCD Allowance 2,786 — — — 2,786 Provision for credit losses on loans 6,916 700 (22) 1,006 8,600 Charge-offs (69) (26) — (618) (713) Recoveries 89 9 — 211 309 Balance, end of period $ 32,550 $ 5,654 $ 1,055 $ 9,181 $ 48,440 Three Months Ended March 31, 2019 Commercial Real Estate Mortgage Warehouse Consumer Total Balance, beginning of period $ 10,495 $ 1,676 $ 1,006 $ 4,643 $ 17,820 Provision for credit losses on loans 1,122 (115) 8 (651) 364 Charge-offs (77) — — (584) (661) Recoveries 16 27 — 255 298 Balance, end of period $ 11,556 $ 1,588 $ 1,014 $ 3,663 $ 17,821 The Company utilized the Cumulative Loss Rate method in determining expected future credit losses. The loss rate method measures the amount of loan charge-offs, net of recoveries, (“loan losses”) recognized over the life of a pool and compares those loan losses to the outstanding loan balance of that pool as of a specific point in time (“pool date”). To estimate a CECL loss rate for the pool, management first identifies the loan losses recognized between the pool date and the reporting date for the pool and determines which loan losses were related to loans outstanding at the pool date. The loss rate method then divides the loan losses recognized on loans outstanding as of the pool date by the outstanding loan balance as of the pool date. The Company's expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company's historical look-back period includes January 2012 through the current period, on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data. Qualitative reserves reflect management's overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible. The Company's CECL estimate applies to a forecast that incorporates macroeconomic trends and other environmental factors. Management utilized National, Regional and Local Leading Economic Indexes, as well as management judgment, as the basis for the forecast period. The historical loss rate was utilized as the base rate, and qualitative adjustments were utilized to reflect the forecast and other relevant factors. The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, loan purpose, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of the borrower and concentrations, and historical or expected credit loss patterns. The $8.6 million ACL provision included special allocations related to the potential impact on two portfolios, hotels and restaurants, as a result of the COVID-19 measures implemented by the states in which Horizon operates (Indiana and Michigan). Extensive analysis and monitoring of these portfolios has been undertaken and, while no loss has been specifically identified, the risks to certain borrowers are elevated and, therefore, the special allocation was deemed prudent. The following table presents the balance in the allowance for credit loss and the recorded investment in loans, by portfolio segment, and based on impairment analysis as of December 31, 2019: December 31, 2019 Commercial Real Estate Mortgage Warehousing Consumer Total Allowance For Loan Losses Ending allowance balance attributable to loans: Individually evaluated for impairment $ 541 $ — $ — $ — $ 541 Collectively evaluated for impairment 11,455 923 1,077 3,671 17,126 Loans acquired with deteriorated credit quality — — — — — Total ending allowance balance $ 11,996 $ 923 $ 1,077 $ 3,671 $ 17,667 Loans: Individually evaluated for impairment $ 7,347 $ — $ — $ — $ 7,347 Collectively evaluated for impairment 2,040,299 770,705 150,293 665,952 3,627,249 Loans acquired with deteriorated credit quality — — — — — Total ending loans balance $ 2,047,646 $ 770,705 $ 150,293 $ 665,952 $ 3,634,596 |
Non-performing Loans and Impair
Non-performing Loans and Impaired Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Non-performing Loans and Impaired Loans | Note 7 – Non-performing Loans The following table presents the non-accrual, loans past due over 90 days still on accrual, and troubled debt restructured (“TDRs”) by class of loans: March 31, 2020 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-performing Performing TDRs Total Non-performing Loans Non-accrual Commercial Owner occupied real estate $ 5,512 $ — $ 629 $ 139 $ 6,280 $ 3,123 Non-owner occupied real estate 641 — 361 — 1,002 888 Residential spec homes — — — — — — Development & spec land 73 — — — 73 73 Commercial and industrial 791 11 1,422 — 2,224 816 Total commercial 7,017 11 2,412 139 9,579 4,900 Real estate Residential mortgage 8,040 — 733 1,638 10,411 — Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 8,040 — 733 1,638 10,411 — Consumer Direct installment 18 — — — 18 18 Indirect installment 1,168 196 — — 1,364 1,168 Home equity 2,038 39 215 338 2,630 2,038 Total consumer 3,224 235 215 338 4,012 3,224 Total $ 18,281 $ 246 $ 3,360 $ 2,115 $ 24,002 $ 8,124 There was no interest income recognized on non-accrual loans during the three months ended March 31, 2020 and 2019 while the loans were in non-accrual status. December 31, 2019 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-performing Performing TDRs Total Non-performing Loans Non-accrual Commercial Owner occupied real estate $ 2,424 $ — $ 629 $ 139 $ 3,192 $ 2,563 Non-owner occupied real estate 682 — 374 — 1,056 937 Residential spec homes — — — — — — Development & spec land 73 — — — 73 73 Commercial and industrial 1,603 — 78 1,345 3,026 514 Total commercial 4,782 — 1,081 1,484 7,347 4,087 Real estate Residential mortgage 7,614 1 708 1,561 9,884 8,322 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 7,614 1 708 1,561 9,884 8,322 Consumer Direct installment 30 5 — — 35 30 Indirect installment 1,234 135 — — 1,369 1,234 Home equity 2,019 5 217 309 2,550 2,236 Total consumer 3,283 145 217 309 3,954 3,500 Total $ 15,679 $ 146 $ 2,006 $ 3,354 $ 21,185 $ 15,909 Included in the $18.3 million of non-accrual loans and the $3.4 million of non-performing TDRs at March 31, 2020 were $3.5 million and $101,000, respectively, of loans acquired for which accretable yield was recognized. Troubled Debt Restructurings Loans modified as TDRs generally consist of allowing borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans' contractual terms. TDRs that continue to accrue interest are individually monitored on a monthly basis and evaluated for impairment annually and transferred to non-accrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. At March 31, 2020, the type of concessions the Company has made on restructured loans has been temporary rate reductions and/or reductions in monthly payments, and there have been no restructured loans with modified recorded balances. Any modification to a loan that is a concession and is not in the normal course of lending is considered a restructured loan. A restructured loan is returned to accruing status after six consecutive payments but is still reported as TDR unless the loan bears interest at a market rate. As of March 31, 2020, the Company had $5.5 million in TDRs, $3.4 million were performing according to the restructured terms, and one TDR was returned to accrual status during the first three months of 2020. There were $435,000 of specific reserves allocated to TDRs at March 31, 2020 based on the discounted cash flows or, when appropriate, the fair value of the collateral. These TDRs are exclusive of loans modified under the CARES Act during the first quarter of 2020. The following table presents TDRs by loan portfolio: March 31, 2020 December 31, 2019 Non-accrual Accruing Total Non-accrual Accruing Total Commercial Owner occupied real estate $ 629 $ 139 $ 768 $ 629 $ 139 $ 768 Non-owner occupied real estate 361 — 361 374 — 374 Residential spec homes — — — — — — Development & spec land — — — — — — Commercial and industrial 1,422 — 1,422 78 1,345 1,423 Total commercial 2,412 139 2,551 1,081 1,484 2,565 Real estate Residential mortgage 733 1,638 2,371 708 1,561 2,269 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 733 1,638 2,371 708 1,561 2,269 Consumer Direct installment — — — — — — Indirect installment — — — — — — Home equity 215 338 553 217 309 526 Total consumer 215 338 553 217 309 526 Total $ 3,360 $ 2,115 $ 5,475 $ 2,006 $ 3,354 $ 5,360 Loans Modified under the CARES Act The Bank has elected (i) to suspend the requirements under GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR; and (ii) to suspend any determination of a loan modified as a result of the effects of COVID-19 pandemic as being a TDR, including impairment for accounting purposes. At March 31, 2020, the Bank modified loans totaling $56.6 million which qualify for treatment under the CARES Act. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent. The table below presents the value of collateral dependent loans by loan class as of March 31, 2020: March 31, 2020 Commercial Owner occupied real estate $ 3,018 Non-owner occupied real estate 114 Commercial and industrial 626 Total commercial 3,758 Real estate Residential mortgage 681 Total real estate 681 Total collateral dependent loans $ 4,439 The following table presents the payment status by class of loan, excluding non-accrual loans of $18.3 million and non-performing TDRs of $3.4 million at March 31, 2020: March 31, 2020 Current 30-59 Days 60-89 Days 90 Days or Total Total Commercial Owner occupied real estate $ 499,639 $ 4,532 $ 589 $ — $ 5,121 $ 504,760 Non-owner occupied real estate 989,572 2,021 — — 2,021 991,593 Residential spec homes 11,533 135 — — 135 11,668 Development & spec land 32,918 — — — — 32,918 Commercial and industrial 499,845 178 — 11 189 500,034 Total commercial 2,033,507 6,866 589 11 7,466 2,040,973 Real estate Residential mortgage 722,866 1,395 — — 1,395 724,261 Residential construction 24,495 — — — — 24,495 Mortgage warehouse 223,519 — — — — 223,519 Total real estate 970,880 1,395 — — 1,395 972,275 Consumer Direct installment 39,841 190 15 — 205 40,046 Indirect installment 356,702 1,967 260 196 2,423 359,125 Home equity 272,465 621 114 39 774 273,239 Total consumer 669,008 2,778 389 235 3,402 672,410 Total $ 3,673,395 $ 11,039 $ 978 $ 246 $ 12,263 $ 3,685,658 Percentage of total loans 99.67 % 0.30 % 0.03 % 0.01 % 0.33 % 100.00 % The following table presents the payment status by class of loan, excluding non-accrual loans of $15.7 million and non-performing TDRs of $2.0 million at December 31, 2019: December 31, 2019 Current 30-59 Days 60-89 Days 90 Days or Total Total Commercial Owner occupied real estate $ 515,604 $ 920 $ — $ — $ 920 $ 516,524 Non-owner occupied real estate 972,195 80 — — 80 972,275 Residential spec homes 12,925 — — — — 12,925 Development & spec land 35,881 — — — — 35,881 Commercial and industrial 503,348 819 11 — 830 504,178 Total commercial 2,039,953 1,819 11 — 1,830 2,041,783 Real estate Residential mortgage 740,712 1,984 — 1 1,985 742,697 Residential construction 19,686 — — — — 19,686 Mortgage warehouse 150,293 — — — — 150,293 Total real estate 910,691 1,984 — 1 1,985 912,676 Consumer Direct installment 40,864 175 5 5 185 41,049 Indirect installment 344,478 2,407 404 135 2,946 347,424 Home equity 273,050 904 20 5 929 273,979 Total consumer 658,392 3,486 429 145 4,060 662,452 Total $ 3,609,036 $ 7,289 $ 440 $ 146 $ 7,875 $ 3,616,911 Percentage of total loans 99.78 % 0.20 % 0.01 % 0.01 % 0.22 % 100.00 % The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re-evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the loan grade. • For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective markets (ranging from $1,000,000 to $3,500,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (CCBO). • Commercial loan officers are responsible for reviewing their loan portfolios and reporting any adverse material change to the CCBO or Loan Committee. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the CCBO and the Credit Department of the change in the loan grade. Downgrades are accepted immediately by the CCBO, however, lenders must present their factual information to either the Loan Committee or the CCBO when recommending an upgrade. • The CCBO, or his designee, meets regularly with loan officers to discuss the status of past-due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade. • Monthly, senior management meets with the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, troubled debt restructures, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses for loans. For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non-accrual, or are classified as a TDR are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non-accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass. Horizon Bank employs a nine-grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below. Risk Grade 1: Excellent (Pass) Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long-term debt rating of A or better and meeting defined key financial metric ranges. Risk Grade 2: Good (Pass) Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three five five Risk Grade 3: Satisfactory (Pass) Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: • At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory; • At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. • The loan has exhibited two • During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. Risk Grade 4 Satisfactory/Monitored: Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization. Risk Grade 4W Management Watch: Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized. Risk Grade 5: Special Mention Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges. Risk Grade 6: Substandard One or more of the following characteristics may be exhibited in loans classified Substandard: • Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. • Loans are inadequately protected by the current net worth and paying capacity of the obligor. • The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. • Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. • Unusual courses of action are needed to maintain a high probability of repayment. • The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. • The lender is forced into a subordinated or unsecured position due to flaws in documentation. • Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. • The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. • There is a significant deterioration in market conditions to which the borrower is highly vulnerable. • The borrower meets defined key financial metric ranges. Risk Grade 7: Doubtful One or more of the following characteristics may be present in loans classified Doubtful: • Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. • The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. • The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. • The borrower meets defined key financial metric ranges. Risk Grade 8: Loss Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables present loans by credit grades and origination year. March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial Owner occupied real estate Pass $ 13,838 $ 63,995 $ 62,398 $ 60,650 $ 60,221 $ 173,904 $ 36,254 $ 471,260 Special Mention 174 291 5,276 3,896 2,348 9,114 — 21,099 Substandard — 1,482 3,014 824 500 8,105 4,617 18,542 Doubtful — — — — — — — — Total owner occupied real estate $ 14,012 $ 65,768 $ 70,688 $ 65,370 $ 63,069 $ 191,123 $ 40,871 $ 510,901 Non-owner occupied real estate Pass $ 25,445 $ 129,457 $ 86,194 $ 150,894 $ 130,686 $ 249,361 $ 156,142 $ 928,179 Special Mention 1,947 11,515 27,560 2,220 299 11,783 1,086 56,410 Substandard — — 2,439 114 457 4,996 — 8,006 Doubtful — — — — — — — — Total non-owner occupied real estate $ 27,392 $ 140,972 $ 116,193 $ 153,228 $ 131,442 $ 266,140 $ 157,228 $ 992,595 Residential spec homes Pass $ — $ 190 $ — $ 312 $ 957 $ 2,093 $ 8,116 $ 11,668 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total residential spec homes $ — $ 190 $ — $ 312 $ 957 $ 2,093 $ 8,116 $ 11,668 Development & spec land Pass $ 30 $ 932 $ 2,568 $ 4,496 $ 1,586 $ 14,645 $ 8,595 $ 32,852 Special Mention — — — — — 139 — 139 Substandard — — — — — — — — Doubtful — — — — — — — — Total development & spec land $ 30 $ 932 $ 2,568 $ 4,496 $ 1,586 $ 14,784 $ 8,595 $ 32,991 Commercial & industrial Pass $ 23,969 $ 71,713 $ 70,277 $ 108,382 $ 36,067 $ 102,731 $ 34,331 $ 447,470 Special Mention 122 3,563 10,134 3,857 2,872 12,926 1,005 34,479 Substandard — 5,611 3,169 3,558 619 4,938 2,403 20,298 Doubtful — — — — — — — — Total commercial & industrial $ 24,091 $ 80,887 $ 83,580 $ 115,797 $ 39,558 $ 120,595 $ 37,739 $ 502,247 Total commercial $ 65,525 $ 288,749 $ 273,029 $ 339,203 $ 236,612 $ 594,735 $ 252,549 $ 2,050,402 March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Real estate Residential mortgage Performing $ 29,138 $ 74,317 $ 139,327 $ 130,086 $ 96,489 $ 254,575 $ 329 $ 724,261 Non-performing — 267 148 372 1,377 6,609 — 8,773 Total residential mortgage $ 29,138 $ 74,584 $ 139,475 $ 130,458 $ 97,866 $ 261,184 $ 329 $ 733,034 Residential construction Performing $ — $ 338 $ — $ — $ — $ — $ 24,157 $ 24,495 Non-performing — — — — — — — — Total residential construction $ — $ 338 $ — $ — $ — $ — $ 24,157 $ 24,495 Mortgage warehouse Performing $ — $ — $ — $ — $ — $ — $ 223,519 $ 223,519 Non-performing — — — — — — — — Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ 223,519 $ 223,519 Total real estate $ 29,138 $ 74,922 $ 139,475 $ 130,458 $ 97,866 $ 261,184 $ 248,005 $ 981,048 March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Consumer Direct installment Performing $ 2,774 $ 13,701 $ 8,699 $ 8,267 $ 3,476 $ 3,014 $ 115 $ 40,046 Non-performing — 6 3 1 — 6 2 18 Total direct installment $ 2,774 $ 13,707 $ 8,702 $ 8,268 $ 3,476 $ 3,020 $ 117 $ 40,064 Indirect installment Performing $ 42,135 $ 129,329 $ 106,358 $ 56,278 $ 14,661 $ 10,168 $ — $ 358,929 Non-performing — 228 282 478 154 222 — 1,364 Total indirect installment $ 42,135 $ 129,557 $ 106,640 $ 56,756 $ 14,815 $ 10,390 $ — $ 360,293 Home equity Performing $ 10,688 $ 58,444 $ 48,683 $ 38,878 $ 30,030 $ 82,155 $ 4,322 $ 273,200 Non-performing — 9 66 81 19 1,089 1,028 2,292 Total home equity $ 10,688 $ 58,453 $ 48,749 $ 38,959 $ 30,049 $ 83,244 $ 5,350 $ 275,492 Total consumer $ 55,597 $ 201,717 $ 164,091 $ 103,983 $ 48,340 $ 96,654 $ 5,467 $ 675,849 December 31, 2019 Pass Special Substandard Doubtful Total Commercial Owner occupied real estate $ 492,386 $ 8,328 $ 18,863 $ — $ 519,577 Non-owner occupied real estate 957,990 7,824 7,517 — 973,331 Residential spec homes 12,925 — — — 12,925 Development & spec land 35,815 — 139 — 35,954 Commercial and industrial 468,893 18,652 18,314 — 505,859 Total commercial 1,968,009 34,804 44,833 — 2,047,646 Real estate Residential mortgage 741,136 — 9,883 — 751,019 Residential construction 19,686 — — — 19,686 Mortgage warehouse 150,293 — — — 150,293 Total real estate 911,115 — 9,883 — 920,998 Consumer Direct installment 41,044 — 35 — 41,079 Indirect installment 347,289 — 1,369 — 348,658 Home equity 273,665 — 2,550 — 276,215 Total consumer 661,998 — 3,954 — 665,952 Total $ 3,541,122 $ 34,804 $ 58,670 $ — $ 3,634,596 Percentage of total loans 97.43 % 0.96 % 1.61 % 0.00 % 100.00 % |
Repurchase Agreements
Repurchase Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Repurchase Agreements | Note 8 – Repurchase Agreements The Company transfers various securities to customers in exchange for cash at the end of each business day and agrees to acquire the securities at the end of the next business day for the cash exchanged plus interest. The process is repeated at the end of each business day until the agreement is terminated. The securities underlying the agreement remained under the Bank’s control. The following table shows repurchase agreements accounted for as secured borrowings: March 31, 2020 Remaining Contractual Maturity of the Agreements Overnight Up to one One to three Three to five Five to ten Beyond ten Total Repurchase Agreements and repurchase-to-maturity transactions Repurchase Agreements $ 81,955 $ — $ — $ — $ — $ — $ 81,955 Securities pledged for Repurchase Agreements Federal agency collateralized mortgage obligations $ 42,280 $ — $ — $ — $ — $ — $ 42,280 Federal agency mortgage-backed pools 58,840 — — — — — 58,840 Total $ 101,120 $ — $ — $ — $ — $ — $ 101,120 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 9 – Derivative Financial Instruments Cash Flow Hedges - As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flow due to interest rate fluctuations, the Company entered into interest rate swap agreements for a portion of its floating rate debt. The agreements provide for the Company to receive interest from the counterparty at three months LIBOR and to pay interest to the counterparty at a weighted average fixed rate of 4.03% on a notional amount of $15.5 million at March 31, 2020 and December 31, 2019. Under the agreements, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. The Company assumed additional interest rate swap agreements as the result of the LaPorte acquisition in July 2016. The agreements provide for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a weighted average fixed rate of 2.42% on a notional amount of $20.0 million at March 31, 2020 and at a weighted average fixed rate of 2.31% on a notional amount of $30.0 million at December 31, 2019. Under the agreements, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. On July 20, 2018, the Company entered into an interest rate swap agreement for an additional portion of its floating rate debt. The agreement provides for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a rate of 2.81% on a notional amount of $50.0 million at March 31, 2020 and December 31, 2019. Under the agreement, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. Management has designated the interest rate swap agreement as a cash flow hedging instrument. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. At March 31, 2020, the Company’s cash flow hedge was effective and is not expected to have a significant impact on the Company’s net income over the next 12 months. Fair Value Hedges Fair value hedges are intended to reduce the interest rate risk associated with the underlying hedged item. The Company enters into fixed rate loan agreements as part of its lending policy. To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company has entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. At March 31, 2020, the Company’s fair value hedges were effective and are not expected to have a significant impact on the Company’s net income over the next 12 months. The change in fair value of both the hedge instruments and the underlying loan agreements are recorded as gains or losses in interest income. The fair value hedges are considered to be highly effective and any hedge ineffectiveness was deemed not material. The notional amounts of the loan and security agreements being hedged were $400.5 million at March 31, 2020 and $361.0 million at December 31, 2019. Other Derivative Instruments The Company enters into non-hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking business. At March 31, 2020, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income. The change in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans. The following tables summarize the fair value of derivative financial instruments utilized by Horizon: Asset Derivatives Liability Derivatives March 31, 2020 March 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Other assets $ 37,537 Other liabilities $ 47,620 Total derivatives designated as hedging instruments 37,537 47,620 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 1,269 Other liabilities — Total derivatives not designated as hedging instruments 1,269 — Total derivatives $ 38,806 $ 47,620 Asset Derivatives Liability Derivatives December 31, 2019 December 31, 2019 Balance Sheet Location Fair Balance Sheet Location Fair Derivatives designated as hedging instruments Interest rate contracts Other assets $ 11,422 Other liabilities $ 15,861 Total derivatives designated as hedging instruments 11,422 15,861 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 264 Other liabilities 38 Total derivatives not designated as hedging instruments 264 38 Total derivatives $ 11,686 $ 15,899 The effect of the derivative instruments on the condensed consolidated statements of income for the three-month periods ending March 31 is as follows: Amount of Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) Three Months Ended March 31, 2020 March 31, 2019 Derivatives in cash flow hedging relationship Interest rate contracts $ (3,132) $ (874) FASB Accounting Standards Codification (“ASC”) Topic 820-10-20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820-10-55 establishes a fair value hierarchy that emphasizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Location of gain Amount of Gain (Loss) Recognized on Derivative Three Months Ended March 31, 2020 March 31, 2019 Derivative in fair value hedging relationship Interest rate contracts Interest income - loans $ (26,330) $ (4,051) Interest rate contracts Interest income - loans 26,330 4,051 Total $ — $ — Location of gain Amount of Gain (Loss) Recognized on Derivative Three Months Ended March 31, 2020 March 31, 2019 Derivative not designated as hedging relationship Mortgage contracts Other income - gain on sale of loans $ 1,043 $ 257 |
Disclosures about Fair Value of
Disclosures about Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Disclosures about Fair Value of Assets and Liabilities | Note 10 – Disclosures about Fair Value of Assets and Liabilities The Fair Value Measurements topic of the FASB ASC defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2020. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available for sale securities When quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Treasury and federal agency securities, state and municipal securities, federal agency collateralized mortgage obligations and mortgage-backed pools and corporate notes. Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs. Observable inputs include dealer quotes, market spreads, cash flow analysis, the U.S. Treasury yield curve, trade execution data, market consensus prepayment spreads and available credit information and the bond’s terms and conditions. The pricing provider utilizes evaluated pricing models that vary based on asset class. These models incorporate available market information including quoted prices of securities with similar characteristics and, because many fixed-income securities do not trade on a daily basis, apply available information through processes such as benchmark curves, benchmarking of like securities, sector grouping, and matrix pricing. In addition, model processes, such as an option adjusted spread model, is used to develop prepayment and interest rate scenarios for securities with prepayment features. Hedged loans Certain fixed rate loans have been converted to variable rate loans by entering into interest rate swap agreements. The fair value of those fixed rate loans is based on discounting the estimated cash flows using interest rates determined by the respective interest rate swap agreement. Loans are classified within Level 2 of the valuation hierarchy based on the unobservable inputs used. Interest rate swap agreements The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following: March 31, 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities State and municipal $ 471,203 $ — $ 471,203 $ — Federal agency collateralized mortgage obligations 257,813 — 257,813 — Federal agency mortgage-backed pools 160,050 — 160,050 — Corporate notes 11,410 — 11,410 — Total available for sale securities 900,476 — 900,476 — Interest rate swap agreements asset 37,537 — 37,537 — Forward sale commitments 1,269 — 1,269 — Interest rate swap agreements liability (47,620) — (47,620) — December 31, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities U.S. Treasury and federal agencies $ 1,413 $ — $ 1,413 $ — State and municipal 405,768 — 405,768 — Federal agency collateralized mortgage obligations 269,252 — 269,252 — Federal agency mortgage-backed pools 146,572 — 146,572 — Corporate notes 11,771 — 11,771 — Total available for sale securities 834,776 — 834,776 — Interest rate swap agreements asset 11,422 — 11,422 — Forward sale commitments 264 — 264 — Interest rate swap agreements liability (15,861) — (15,861) — Commitments to originate loans (38) — (38) — Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows: Three Months Ended March 31, 2020 March 31, 2019 Non-interest Income Total gains and losses from: Hedged loans $ (26,330) $ (4,051) Fair value interest rate swap agreements 26,330 4,051 Derivative loan commitments 1,043 257 $ 1,043 $ 257 Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2020 Collateral dependent loans $ 7,959 $ — $ — $ 7,959 Mortgage servicing rights 14,160 — — 14,160 December 31, 2019 Impaired loans $ 6,806 $ — $ — $ 6,806 Mortgage servicing rights 14,327 — — 14,327 Collateral Dependent Loans: Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Mortgage Servicing Rights (MSRs): MSRs do not trade in an active market with readily observable prices. Accordingly, the fair value of these assets is classified as Level 3. The Company determines the fair value of MSRs using an income approach model based upon the Company’s month-end interest rate curve and prepayment assumptions. The model utilizes assumptions to estimate future net servicing income cash flows, including estimates of time decay, payoffs and changes in valuation inputs and assumptions. The Company reviews the valuation assumptions against this market data for reasonableness and adjusts the assumptions if deemed appropriate. The carrying amount of the MSRs’ fair value due to impairment decreased by $322,000 during the first three months of 2020 and increased by $14,000 during the first three months of 2019. The following table presents qualitative information about unobservable inputs used in recurring and non-recurring Level 3 fair value measurements, other than goodwill. March 31, 2020 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral dependent loans $ 7,959 Collateral based measurement Discount to reflect current market conditions and ultimate collectibility 0.0%-100.0% (16.8%) Mortgage servicing rights 14,160 Discounted cash flows Discount rate, Constant prepayment rate, Probability of default 8.6%-8.7% (8.6%), 10.6%-20.4% (12.7%), 0.0%-2.4%(0.7%) December 31, 2019 Fair Valuation Unobservable Range Impaired loans $ 6,806 Collateral based measurement Discount to reflect current market conditions and ultimate collectibility 0.0%-100.0%(7.4%) Mortgage servicing rights 14,327 Discounted cash flows Discount rate, 8.7%-9.0% (8.7%), 10.2%-19.8%(12.2%), 0.1%-2.9%(0.7%) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 11 – Fair Value of Financial Instruments The estimated fair value amounts of the Company’s financial instruments were determined using available market information, current pricing information applicable to Horizon and various valuation methodologies. Where market quotations were not available, considerable management judgment was involved in the determination of estimated fair values. Therefore, the estimated fair value of financial instruments shown below may not be representative of the amounts at which they could be exchanged in a current or future transaction. Due to the inherent uncertainties of expected cash flows of financial instruments, the use of alternate valuation assumptions and methods could have a significant effect on the estimated fair value amounts. The estimated fair values of financial instruments, as shown below, are not intended to reflect the estimated liquidation or market value of Horizon taken as a whole. The disclosed fair value estimates are limited to Horizon’s significant financial instruments at March 31, 2020 and December 31, 2019. These include financial instruments recognized as assets and liabilities on the condensed consolidated balance sheet as well as certain off-balance sheet financial instruments. The estimated fair values shown below do not include any valuation of assets and liabilities, which are not financial instruments as defined by the FASB ASC fair value hierarchy. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and Due from Banks — The carrying amounts approximate fair value. Interest-earning time deposits — The fair values of the Company's interest-earning time deposits are estimated using discounted cash flow analyses based on current rates for similar types of interest-earning time deposits. Held-to-Maturity Securities — For debt securities held to maturity, fair values are based on quoted market prices or dealer quotes. For those securities where a quoted market price is not available, carrying amount is a reasonable estimate of fair value based upon comparison with similar securities. Loans Held for Sale — The carrying amounts approximate fair value. Net Loans — The fair value of net loans are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. FHLB Stock — Fair value of FHLB stock is based on the price at which it may be resold to the FHLB. Interest Receivable/Payable — The carrying amounts approximate fair value. Deposits — The fair value of demand deposits, savings accounts, interest-bearing checking accounts and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturity. Borrowings — Rates currently available to Horizon for debt with similar terms and remaining maturities are used to estimate fair values of existing borrowings. Subordinated Debentures — Rates currently available for debentures with similar terms and remaining maturities are used to estimate fair values of existing debentures. Commitments to Extend Credit and Standby Letters of Credit — The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. Due to the short-term nature of these agreements, carrying amounts approximate fair value. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall (unaudited). March 31, 2020 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and due from banks $ 86,458 $ 86,458 $ — $ — Interest-earning time deposits 9,239 — 9,357 — Investment securities, held to maturity 199,467 — 207,324 — Loans held for sale 6,245 — — 6,245 Loans (excluding loan level hedges), net 3,658,859 — — 3,694,421 Stock in FHLB 22,447 — 22,447 — Interest receivable 17,774 — 17,774 — Liabilities Non-interest bearing deposits $ 709,978 $ 709,978 $ — $ — Interest bearing deposits 3,172,293 — 3,151,657 — Borrowings 704,613 — 710,005 — Subordinated debentures 56,374 — 52,118 — Interest payable 2,772 — 2,772 — December 31, 2019 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and due from banks $ 98,831 $ 98,831 $ — $ — Interest-earning time deposits 8,455 — 8,537 — Investment securities, held to maturity 207,899 — 215,147 — Loans held for sale 4,088 — — 4,088 Loans (excluding loan level hedges), net 3,619,174 — — 3,554,951 Stock in FHLB 22,447 — 22,447 — Interest receivable 18,828 — 18,828 — Liabilities Non-interest bearing deposits $ 709,760 $ 709,760 $ — $ — Interest bearing deposits 3,221,242 — 3,180,768 — Borrowings 549,741 — 546,995 — Subordinated debentures 56,311 — 51,809 — Interest payable 3,062 — 3,062 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Note 12 – Accumulated Other Comprehensive Income March 31, December 31, Unrealized gain on securities available for sale $ 20,340 $ 12,687 Unamortized loss on securities held to maturity, previously transferred from AFS (137) (107) Unrealized loss on derivative instruments (8,405) (4,440) Tax effect (2,476) (1,708) Total accumulated other comprehensive income $ 9,322 $ 6,432 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Note 13 – Regulatory Capital Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. These capital requirements implement changes arising from the Dodd-Frank Wall Street Reform and Consumer Protection Act and the U.S. Basel Committee on Banking Supervision’s capital framework (known as “Basel III”). Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Company and Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Company and Bank are subject to minimum regulatory capital requirements as defined and calculated in accordance with the Basel III-based regulations. As allowed under Basel III rules, the Company made the decision to opt-out of including accumulated other comprehensive income in regulatory capital. The minimum regulatory capital requirements are set forth in the table below. In addition, to be categorized as well capitalized, the Company and Bank must maintain Total risk-based, Tier I risk-based, common equity Tier I risk- based and Tier I leverage ratios as set forth in the table below. As of March 31, 2020 and December 31, 2019, the Company and Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the first quarter of 2020 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well-capitalized status for bank holding companies. In October 2019, the federal banking agencies finalized a new rule that will simplify capital requirements for qualified community banks that opt into the new community bank leverage ratio framework. The new framework was available to use in March 31, 2020 Call Reports or Forms FRY-9C (as applicable) for depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets, among other qualifying criteria. Horizon did not elect the new community bank leverage ratio framework. As of March 31, 2020, the Company and Bank elected the transition option of the 2019 CECL Rule which allows banking organizations to phase in over a three-year period the day-one adverse effects of CECL on their regulatory capital ratios. Horizon and the Bank’s actual and required capital ratios as of March 31, 2020 and December 31, 2019 were as follows: Actual Required for Capital 1 Adequacy Purposes Required For Capital 1 Adequacy Purposes with Capital Buffer Well Capitalized Under Prompt 1 Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total capital 1 (to risk-weighted assets) Consolidated $ 551,215 13.69 % $ 322,112 8.00 % $ 422,773 10.50 % N/A N/A Bank 513,248 12.73 % 322,544 8.00 % 423,339 10.50 % $ 403,180 10.00 % Tier 1 capital 1 (to risk-weighted assets) Consolidated 514,493 12.78 % 241,546 6.00 % 342,190 8.50 % N/A N/A Bank 476,526 11.82 % 241,891 6.00 % 342,679 8.50 % 322,522 8.00 % Common equity tier 1 capital 1 (to risk-weighted assets) Consolidated 457,000 11.35 % 181,189 4.50 % 281,850 7.00 % N/A N/A Bank 476,526 11.82 % 181,419 4.50 % 282,207 7.00 % 262,049 6.50 % Tier 1 capital 1 (to average assets) Consolidated 514,493 10.14 % 202,956 4.00 % 202,956 4.00 % N/A N/A Bank 476,526 9.43 % 202,132 4.00 % 202,132 4.00 % 252,665 5.00 % December 31, 2019 Total capital 1 (to risk-weighted assets) Consolidated $ 548,364 13.95 % $ 314,395 8.00 % $ 412,644 10.500 % N/A N/A Bank 497,227 12.65 % 314,452 8.00 % 412,718 10.500 % $ 393,065 10.00 % Tier 1 capital 1 (to risk-weighted assets) Consolidated 530,643 13.50 % 235,796 6.00 % 334,044 8.500 % N/A N/A Bank 479,506 12.20 % 235,823 6.00 % 334,082 8.500 % 314,430 8.00 % Common equity tier 1 capital 1 (to risk-weighted assets) Consolidated 473,150 12.04 % 176,846 4.50 % 275,094 7.000 % N/A N/A Bank 479,506 12.20 % 176,867 4.50 % 275,126 7.000 % 255,475 6.50 % Tier 1 capital 1 (to average assets) Consolidated 530,643 10.50 % 202,111 4.00 % 202,111 4.000 % N/A N/A Bank 479,506 9.49 % 202,110 4.00 % 202,110 4.000 % 252,638 5.00 % (1) As defined by regulatory agencies |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Earnings per Common Share | Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share. Three Months Ended March 31 2020 2019 Basic earnings per share Net income $ 11,655 $ 10,816 Weighted average common shares outstanding 44,658,512 38,822,543 Basic earnings per share $ 0.26 $ 0.28 Diluted earnings per share Net income $ 11,655 $ 10,816 Weighted average common shares outstanding 44,658,512 38,822,543 Effect of dilutive securities: Restricted stock 39,845 — Stock options 58,359 83,629 Weighted average common shares outstanding 44,756,716 38,906,172 Diluted earnings per share $ 0.26 $ 0.28 There were 293,665 shares for the three months ended March 31, 2020, which were not included in the computation of diluted earnings per share because they were non-dilutive. There were 350,618 shares for the three months ended March 31, 2019, which were not included in the computation of diluted earnings per share because they were non-dilutive. |
Recent Accounting Pronouncements | Adoption of New Accounting Standards Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments – On January 1, 2020, the Company adopted ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”). The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held to maturity securities. It also applies to off–balance sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar agreements). In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance, rather than as a write–down, on available for sale debt securities management does not intend to sell or believe that it is not more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after December 31, 2019, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $15.6 million as of January 1, 2020 for the cumulative effect of adopting ASC 326. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”), previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $2.8 million of allowance for credit losses (“ACL”) on loans. The following table illustrates the impact of ASC 326. January 1, 2020 (dollars in thousands) As Reported Pre-ASC 326 Impact of Loans Commercial $ 25,614 $ 11,996 $ 13,618 Real estate 4,971 923 4,048 Mortgage warehouse 1,077 1,077 — Consumer 8,582 3,671 4,911 Allowance for credit losses on loans $ 40,244 $ 17,667 $ 22,577 FASB ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment - On January 1, 2020, the Company adopted the provision of ASU No. 2017-04, which eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test. At each reporting date between annual goodwill impairment tests, Horizon considers potential indicators of impairment. Given the current economic uncertainty and volatility surrounding COVID-19, Horizon assessed whether the events and circumstances resulted in it being more likely than not that the fair value of any reporting unit was less than its carrying value. Impairment indicators considered comprised the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of the Company's stock and other relevant events. Horizon further considered the amount by which fair value exceeded book value in the most recent quantitative analysis and sensitivities performed. At the conclusion of the assessment, the Company determined that as of March 31, 2020 it was more likely than not that the fair value exceeded its carrying values. Horizon will continue to monitor developments regarding the COVID-19 pandemic and measures implemented in response to the pandemic, market capitalization, overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future. The adoption of this new guidance did not have a material impact on our consolidated financial statements. FASB ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement – |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Accrued interest receivable totaled $11.0 million at March 31, 2020 was excluded from the ACL calculation and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the effective yield method without anticipating prepayments. From time to time, the Bank obtains information that may lead management to believe that the collection of payments may be doubtful on a particular loan. In recognition of this, it is management’s policy to convert the loan from an “earning asset” to a non-accruing loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Further, it is management’s policy to generally place a loan on a non-accrual status when the payment is delinquent in excess of 90 days or the loan has had the accrual of interest discontinued by management. The officer responsible for the loan and the Chief Commercial Banking Officer and/or the Chief Operations Officer must review all loans placed on non-accrual status. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal in accordance with the loan terms. The Company requires a period of satisfactory performance of not less than six months before returning a non-accrual loan to accrual status. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down or specific allocation of family first and junior lien mortgages to the net realizable value less costs to sell when the value is known but no later than when a loan is 180 days past due. Pursuant to such guidelines, the Company also charges-off unsecured open-end loans when the loan is contractually 90 days past due, and charges down to the net realizable value other secured loans when they are contractually 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection in full will occur regardless of delinquency status, are not charged off. A loan becomes impaired when, based on current information, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is classified as impaired, the degree of impairment must be recognized by estimating future cash flows from the debtor. The present value of these cash flows is computed at a discount rate based on the interest rate contained in the loan agreement. However, if a particular loan has a determinable market value for its collateral, the creditor may use that value. Also, if the loan is secured and considered collateral dependent, the creditor may use the fair value of the collateral. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. Smaller-balance, homogeneous loans are evaluated for impairment in total. Such loans include residential first mortgage loans secured by 1-4 family residences, residential construction loans, automobile, home equity, second mortgage loans and mortgage warehouse loans. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower operating results and financial condition indicate that underlying cash flows of a borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 30 days or more. Loans are generally moved to non-accrual status when they are 90 days or more past due. These loans are often considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms, including troubled debt restructurings, are measured for impairment. Allowable methods for determining the amount of impairment include the three methods described above. |
Purchased Credit Deteriorated Loans | Purchased Credit Deteriorated Loans The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL on loans is determined using the same methodology as other loans held for investment. The initial ACL on loans determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and ACL on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL on loans are recorded through credit loss expense. The Company adopted this ASU using the prospective transition approach for PCD loans previously accounted for under ASC 310-30. In accordance with the standard, we did not assess whether PCI loans met the criteria of PCD as of the date of adoption and all loans previously classified as PCI were updated to the PCD classification. Pools utilized for PCI accounting under ASC 310-30 were not considered since the Company did not have PCI pools at the time of adoption. PCD loans were assessed using prior specific loan reviews for the initial PCD loan ACL. At the date of adoption, no securities were determined to be PCD. |
Allowance for Loan Losses | Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged-off against the allowance when management believes the loan balance is confirmed to no longer be collectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, changes in economic conditions, or other relevant factors. The Company considers the following when estimating credit losses: 1) available information relevant to assessing the collectibility of cash flows including internal information, external information or a combination of both relating to past events, current conditions and reasonable and supportable forecasts; 2) relevant qualitative and quantitative factors relating to the environment in which the Bank operates and factors specific to the borrower; 3) off-balance-sheet credit exposures; and credit support. ACL on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics which may include any one or a combination of the following: internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. The ACL for a specific portfolio segment is computed by multiplying the loss rate by the amortized cost balance of the segment with adjustments for other qualitative factors as described above. As appropriate, newer credit products or portfolios with limited historical loss may use applicable external data for determining the ACL until experience justifies that sufficient product maturity supports the estimate of expected credit losses. Pursuant to ASC 326-20-30-9, an entity shall not rely solely on past events to estimate expected credit losses, and should consider adjustments to historical information to reflect the extent to which management expects current conditions and forecasted conditions to differ from the periods utilized for the historical loss rate calculation. Management has incorporated an adjustment of the historical loss rate calculated within the model to reflect current and forecasted condition and has applied this adjustment on a qualitative factor basis to the aggregate pool loss rate. The qualitative adjustment is based on a combination of external econometric data and internal factors such as portfolio composition, changes in management, changes in loan policy and other factors. The economic forecast is based in part on economic indexes and quantitative matrices with a six to twelve month forecast. The qualitative adjustment is calculated based on current and forecasted conditions and evaluated each quarter by management, and therefore is dynamic in nature. As a result of the forecast being applied as a qualitative factor and adjusted quarterly, no reversion to the historical loss rate is necessary, as the historical base loss rate is preserved in the calculation of “all in” loss rate. Specific reserves reflect impairment on loans identified for evaluation or individually considered non-performing, including troubled debt restructurings and receivables where the Company has determined foreclosure is probable. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of non-accrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans and leases where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include commercial impaired loans, jumbo residential mortgages (as defined), and jumbo home equity loans with a balance exceeding $250,000, and other loans as determined by management. ACL for residential and consumer loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The provision for credit losses on loans on individually evaluated loans is recognized on the fair value of collateral adjusted for estimated costs to sell, the basis of the present value of expected future cash flows discounted at the effective interest rate or the observable market price as of the relevant date. |
Mortgage Portfolio | he table below identifies the Company's loan portfolio segments and classes. Portfolio Segment Class of Financing Receivable Commercial Owner occupied real estate Non-owner occupied real estate Residential spec homes Development & spec land Commercial and industrial Real estate Residential mortgage Residential construction Mortgage warehouse Mortgage warehouse Consumer Direct installment Indirect installment Home equity Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity's method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan. Commercial Commercial loans are primarily based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may incorporate a personal guarantee. However, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and, secondarily, as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy, or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow, and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Real Estate and Consumer With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Mortgage Warehousing Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2019 condensed consolidated financial statements to be comparable to 2020. These reclassifications had no effect on net income. |
Determining the Contractual Term | Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. |
Troubled Debt Restructurings | Troubled Debt Restructurings (“TDR”) A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. The ACL on loans on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provides all banks with the option to elect either or both of the following from March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the termination of the national emergency: i. to suspend the requirements under GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR; and/or ii. to suspend any determination of a loan modified as a result of the effects of the COVID-19 pandemic as being a TDR, including impairment for accounting purposes. If a bank elects a suspension noted above, the suspension (i) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and (ii) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic. |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Company determines the estimated amount of expected credit extensions based on historical usage to calculate the amount of exposure for a loss estimate. After review of the expected credit losses on OBS, the Company determined the amount not being recorded as immaterial at this time. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Computation of Basic and Diluted Earnings Per Share | The following table shows computation of basic and diluted earnings per share. Three Months Ended March 31 2020 2019 Basic earnings per share Net income $ 11,655 $ 10,816 Weighted average common shares outstanding 44,658,512 38,822,543 Basic earnings per share $ 0.26 $ 0.28 Diluted earnings per share Net income $ 11,655 $ 10,816 Weighted average common shares outstanding 44,658,512 38,822,543 Effect of dilutive securities: Restricted stock 39,845 — Stock options 58,359 83,629 Weighted average common shares outstanding 44,756,716 38,906,172 Diluted earnings per share $ 0.26 $ 0.28 |
Schedule of Impact of ASC 326 | The following table illustrates the impact of ASC 326. January 1, 2020 (dollars in thousands) As Reported Pre-ASC 326 Impact of Loans Commercial $ 25,614 $ 11,996 $ 13,618 Real estate 4,971 923 4,048 Mortgage warehouse 1,077 1,077 — Consumer 8,582 3,671 4,911 Allowance for credit losses on loans $ 40,244 $ 17,667 $ 22,577 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price of Assets Acquired and Liabilities Assumed | Assets Liabilities Cash and due from banks $ 152,745 Deposits Investment securities, available for sale 54,319 Non-interest bearing $ 188,744 Loans NOW accounts 207,567 Commercial 352,798 Savings and money market 274,504 Residential mortgage 131,008 Certificates of deposit 70,529 Consumer 85,112 Total deposits 741,344 Total loans 568,918 Borrowings 70,495 Premises and equipment, net 20,425 Subordinated debentures 18,376 FRB and FHLB stock 3,571 Interest payable 826 Goodwill 31,358 Other liabilities 8,759 Core deposit intangible 19,818 Total liabilities assumed $ 839,800 Interest receivable 2,488 Other assets 112,880 Total assets purchased $ 966,522 Common shares issued $ 102,722 Cash paid 24,000 Total purchase price $ 126,722 |
Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30 | The following table details an estimate of the acquired loans that are accounted for in accordance with ASC 310-30 as of March 26, 2019. Contractually required principal and interest at acquisition $ 22,672 Contractual cash flows not expected to be collected (nonaccretable differences) 6,694 Expected cash flows at acquisition 15,978 Interest component of expected cash flows (accretable discount) 735 Fair value of acquired loans accounted for under ASC310-30 $ 15,243 |
Pro Forma Result of Comparable Prior Reporting Period | The following schedule includes pro-forma results for the three months ended March 31, 2019 as if the Salin acquisition had occurred as of the beginning of the comparable prior reporting period. Three Months Ended March 31 2019 Summary of Operations: Net Interest Income $ 42,182 Provision for Loan Losses 664 Net Interest Income after Provision for Loan Losses 41,518 Non-interest Income 9,126 Non-interest Expense 42,152 Income before Income Taxes 8,492 Income Tax Expense 2,017 Net Income 6,475 Net Income Available to Common Shareholders $ 6,475 Basic Earnings per Share $ 0.17 Diluted Earnings per Share $ 0.17 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value of Securities | The fair value of securities is as follows: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale State and municipal $ 460,013 $ 15,311 $ (4,121) $ 471,203 Federal agency collateralized mortgage obligations 253,977 4,020 (184) 257,813 Federal agency mortgage-backed pools 155,289 4,761 — 160,050 Corporate notes 10,857 553 — 11,410 Total available for sale investment securities $ 880,136 $ 24,645 $ (4,305) $ 900,476 Held to maturity State and municipal $ 183,478 $ 7,496 $ (117) $ 190,857 Federal agency collateralized mortgage obligations 3,693 53 — 3,746 Federal agency mortgage-backed pools 12,296 425 — 12,721 Total held to maturity investment securities $ 199,467 $ 7,974 $ (117) $ 207,324 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale U.S. Treasury and federal agencies $ 1,415 $ — $ (2) $ 1,413 State and municipal 396,931 11,288 (2,451) 405,768 Federal agency collateralized mortgage obligations 267,272 2,543 (563) 269,252 Federal agency mortgage-backed pools 145,623 1,207 (258) 146,572 Corporate notes 10,848 923 — 11,771 Total available for sale investment securities $ 822,089 $ 15,961 $ (3,274) $ 834,776 Held to maturity State and municipal $ 190,767 $ 7,129 $ (54) $ 197,842 Federal agency collateralized mortgage obligations 4,560 13 (5) 4,568 Federal agency mortgage-backed pools 12,572 194 (29) 12,737 Total held to maturity investment securities $ 207,899 $ 7,336 $ (88) $ 215,147 |
Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity | The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2020 December 31, 2019 Amortized Fair Amortized Fair Available for sale Within one year $ 44,227 $ 44,107 $ 37,386 $ 37,321 One to five years 41,322 41,175 41,230 41,293 Five to ten years 114,900 119,147 117,004 122,145 After ten years 270,421 278,184 213,574 218,193 470,870 482,613 409,194 418,952 Federal agency collateralized mortgage obligations 253,977 257,813 267,272 269,252 Federal agency mortgage-backed pools 155,289 160,050 145,623 146,572 Total available for sale investment securities $ 880,136 $ 900,476 $ 822,089 $ 834,776 Held to maturity Within one year $ 10,082 $ 10,127 $ 7,811 $ 7,874 One to five years 51,401 52,364 56,037 57,048 Five to ten years 91,291 95,026 94,756 98,480 After ten years 30,704 33,340 32,163 34,440 183,478 190,857 190,767 197,842 Federal agency collateralized mortgage obligations 3,693 3,746 4,560 4,568 Federal agency mortgage-backed pools 12,296 12,721 12,572 12,737 Total held to maturity investment securities $ 199,467 $ 207,324 $ 207,899 $ 215,147 |
Gross Unrealized Losses and Fair Value of Company's Investments | The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2020 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Investment Securities State and municipal $ 152,037 $ (3,956) $ 7,336 $ (282) $ 159,373 $ (4,238) Federal agency collateralized mortgage obligations 27,685 (184) — — 27,685 (184) Total temporarily impaired securities $ 179,722 $ (4,140) $ 7,336 $ (282) $ 187,058 $ (4,422) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Investment Securities U.S. Treasury and federal agencies $ 1,413 $ (2) $ — $ — $ 1,413 $ (2) State and municipal 129,942 (2,374) 6,279 (131) 136,221 (2,505) Federal agency collateralized mortgage obligations 68,043 (308) 23,301 (260) 91,344 (568) Federal agency mortgage-backed pools 24,740 (104) 37,822 (183) 62,562 (287) Corporate notes — — — — — — Total temporarily impaired securities $ 224,138 $ (2,788) $ 67,402 $ (574) $ 291,540 $ (3,362) |
Sales of Securities Available for Sale | Information regarding security proceeds, gross gains and gross losses are presented below. Three Months Ended March 31 2020 2019 Sales of securities available for sale Proceeds $ 32,036 $ 17,587 Gross gains 389 59 Gross losses (50) (44) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans Outstanding by Portfolio Class | The following table presents total loans outstanding by portfolio class, as of March 31, 2020: March 31, Commercial Owner occupied real estate $ 510,901 Non-owner occupied real estate 992,595 Residential spec homes 11,668 Development & spec land 32,991 Commercial and industrial 502,247 Total commercial 2,050,402 Real estate Residential mortgage 733,034 Residential construction 24,495 Mortgage warehouse 223,519 Total real estate 981,048 Consumer Direct installment 40,064 Indirect installment 360,293 Home equity 275,492 Total consumer 675,849 Total loans 3,707,299 Allowance for loan losses (48,440) Net loans $ 3,658,859 |
Amounts of Loans | The following table presents total loans outstanding, as of December 31, 2019: December 31, Commercial Working capital and equipment $ 938,317 Real estate, including agriculture 978,891 Tax exempt 63,571 Other 65,872 Total 2,046,651 Real estate 1-4 family 762,571 Other 8,146 Total 770,717 Consumer Auto 362,729 Recreation 16,262 Real estate/home improvement 43,585 Home equity 237,979 Unsecured 7,286 Other 1,339 Total 669,180 Mortgage warehouse 150,293 Total loans 3,636,841 Allowance for loan losses (17,667) Loans, net $ 3,619,174 |
Accounting for Certain Loans _2
Accounting for Certain Loans Acquired in a Transfer (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Carrying Amounts of Loans | The carrying amounts of those loans included in the balance sheet amounts of loans receivable as of December 31, 2019 are as follows: December 31, 2019 Commercial Real Estate Consumer Outstanding Balance Allowance for Loan Losses Carrying Amount Heartland $ 197 $ 99 $ — $ 296 $ — $ 296 Summit 88 473 — 561 — 561 Peoples 229 35 — 264 — 264 Kosciusko 244 131 — 375 — 375 LaPorte 353 793 20 1,166 — 1,166 Lafayette 1,867 — — 1,867 — 1,867 Wolverine 2,289 — — 2,289 — 2,289 Salin 4,938 1,912 962 7,812 133 7,679 Total $ 10,205 $ 3,443 $ 982 $ 14,630 $ 133 $ 14,497 |
Accretable Yield or Income Expected to be Collected | Accretable yield, or income expected to be collected for the three months ended March 31, 2019 is as follows: Three Months Ended March 31, 2019 Beginning balance Additions Accretion Reclassification from nonaccretable difference Disposals Ending balance Heartland $ 174 $ — $ (8) $ — $ — $ 166 Summit 42 — (3) — (11) 28 Kosciusko 300 — (17) — — 283 LaPorte 829 — (29) — — 800 Lafayette 609 — (35) — (171) 403 Wolverine 698 — (123) — (8) 567 Salin — 3,368 — — — 3,368 Total $ 2,652 $ 3,368 $ (215) $ — $ (190) $ 5,615 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | The following tables represent, by loan portfolio segment, a summary of changes in the ACL on loans for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Commercial Real Estate Mortgage Warehouse Consumer Total Balance, beginning of period $ 11,996 $ 923 $ 1,077 $ 3,671 $ 17,667 Impact of adopting ASC 326 10,832 4,048 — 4,911 19,791 Initial PCD Allowance 2,786 — — — 2,786 Provision for credit losses on loans 6,916 700 (22) 1,006 8,600 Charge-offs (69) (26) — (618) (713) Recoveries 89 9 — 211 309 Balance, end of period $ 32,550 $ 5,654 $ 1,055 $ 9,181 $ 48,440 Three Months Ended March 31, 2019 Commercial Real Estate Mortgage Warehouse Consumer Total Balance, beginning of period $ 10,495 $ 1,676 $ 1,006 $ 4,643 $ 17,820 Provision for credit losses on loans 1,122 (115) 8 (651) 364 Charge-offs (77) — — (584) (661) Recoveries 16 27 — 255 298 Balance, end of period $ 11,556 $ 1,588 $ 1,014 $ 3,663 $ 17,821 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment | The following table presents the balance in the allowance for credit loss and the recorded investment in loans, by portfolio segment, and based on impairment analysis as of December 31, 2019: December 31, 2019 Commercial Real Estate Mortgage Warehousing Consumer Total Allowance For Loan Losses Ending allowance balance attributable to loans: Individually evaluated for impairment $ 541 $ — $ — $ — $ 541 Collectively evaluated for impairment 11,455 923 1,077 3,671 17,126 Loans acquired with deteriorated credit quality — — — — — Total ending allowance balance $ 11,996 $ 923 $ 1,077 $ 3,671 $ 17,667 Loans: Individually evaluated for impairment $ 7,347 $ — $ — $ — $ 7,347 Collectively evaluated for impairment 2,040,299 770,705 150,293 665,952 3,627,249 Loans acquired with deteriorated credit quality — — — — — Total ending loans balance $ 2,047,646 $ 770,705 $ 150,293 $ 665,952 $ 3,634,596 |
Non-performing Loans and Impa_2
Non-performing Loans and Impaired Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Non-accrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans | The following table presents the non-accrual, loans past due over 90 days still on accrual, and troubled debt restructured (“TDRs”) by class of loans: March 31, 2020 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-performing Performing TDRs Total Non-performing Loans Non-accrual Commercial Owner occupied real estate $ 5,512 $ — $ 629 $ 139 $ 6,280 $ 3,123 Non-owner occupied real estate 641 — 361 — 1,002 888 Residential spec homes — — — — — — Development & spec land 73 — — — 73 73 Commercial and industrial 791 11 1,422 — 2,224 816 Total commercial 7,017 11 2,412 139 9,579 4,900 Real estate Residential mortgage 8,040 — 733 1,638 10,411 — Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 8,040 — 733 1,638 10,411 — Consumer Direct installment 18 — — — 18 18 Indirect installment 1,168 196 — — 1,364 1,168 Home equity 2,038 39 215 338 2,630 2,038 Total consumer 3,224 235 215 338 4,012 3,224 Total $ 18,281 $ 246 $ 3,360 $ 2,115 $ 24,002 $ 8,124 There was no interest income recognized on non-accrual loans during the three months ended March 31, 2020 and 2019 while the loans were in non-accrual status. December 31, 2019 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-performing Performing TDRs Total Non-performing Loans Non-accrual Commercial Owner occupied real estate $ 2,424 $ — $ 629 $ 139 $ 3,192 $ 2,563 Non-owner occupied real estate 682 — 374 — 1,056 937 Residential spec homes — — — — — — Development & spec land 73 — — — 73 73 Commercial and industrial 1,603 — 78 1,345 3,026 514 Total commercial 4,782 — 1,081 1,484 7,347 4,087 Real estate Residential mortgage 7,614 1 708 1,561 9,884 8,322 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 7,614 1 708 1,561 9,884 8,322 Consumer Direct installment 30 5 — — 35 30 Indirect installment 1,234 135 — — 1,369 1,234 Home equity 2,019 5 217 309 2,550 2,236 Total consumer 3,283 145 217 309 3,954 3,500 Total $ 15,679 $ 146 $ 2,006 $ 3,354 $ 21,185 $ 15,909 |
Schedule of TDRs by Loan Portfolio | The following table presents TDRs by loan portfolio: March 31, 2020 December 31, 2019 Non-accrual Accruing Total Non-accrual Accruing Total Commercial Owner occupied real estate $ 629 $ 139 $ 768 $ 629 $ 139 $ 768 Non-owner occupied real estate 361 — 361 374 — 374 Residential spec homes — — — — — — Development & spec land — — — — — — Commercial and industrial 1,422 — 1,422 78 1,345 1,423 Total commercial 2,412 139 2,551 1,081 1,484 2,565 Real estate Residential mortgage 733 1,638 2,371 708 1,561 2,269 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 733 1,638 2,371 708 1,561 2,269 Consumer Direct installment — — — — — — Indirect installment — — — — — — Home equity 215 338 553 217 309 526 Total consumer 215 338 553 217 309 526 Total $ 3,360 $ 2,115 $ 5,475 $ 2,006 $ 3,354 $ 5,360 Loans Modified under the CARES Act The Bank has elected (i) to suspend the requirements under GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a TDR; and (ii) to suspend any determination of a loan modified as a result of the effects of COVID-19 pandemic as being a TDR, including impairment for accounting purposes. At March 31, 2020, the Bank modified loans totaling $56.6 million which qualify for treatment under the CARES Act. |
Schedule of Collateral Dependent Loans by Loan Class | The table below presents the value of collateral dependent loans by loan class as of March 31, 2020: March 31, 2020 Commercial Owner occupied real estate $ 3,018 Non-owner occupied real estate 114 Commercial and industrial 626 Total commercial 3,758 Real estate Residential mortgage 681 Total real estate 681 Total collateral dependent loans $ 4,439 |
Payment Status by Class of Loan | The following table presents the payment status by class of loan, excluding non-accrual loans of $18.3 million and non-performing TDRs of $3.4 million at March 31, 2020: March 31, 2020 Current 30-59 Days 60-89 Days 90 Days or Total Total Commercial Owner occupied real estate $ 499,639 $ 4,532 $ 589 $ — $ 5,121 $ 504,760 Non-owner occupied real estate 989,572 2,021 — — 2,021 991,593 Residential spec homes 11,533 135 — — 135 11,668 Development & spec land 32,918 — — — — 32,918 Commercial and industrial 499,845 178 — 11 189 500,034 Total commercial 2,033,507 6,866 589 11 7,466 2,040,973 Real estate Residential mortgage 722,866 1,395 — — 1,395 724,261 Residential construction 24,495 — — — — 24,495 Mortgage warehouse 223,519 — — — — 223,519 Total real estate 970,880 1,395 — — 1,395 972,275 Consumer Direct installment 39,841 190 15 — 205 40,046 Indirect installment 356,702 1,967 260 196 2,423 359,125 Home equity 272,465 621 114 39 774 273,239 Total consumer 669,008 2,778 389 235 3,402 672,410 Total $ 3,673,395 $ 11,039 $ 978 $ 246 $ 12,263 $ 3,685,658 Percentage of total loans 99.67 % 0.30 % 0.03 % 0.01 % 0.33 % 100.00 % The following table presents the payment status by class of loan, excluding non-accrual loans of $15.7 million and non-performing TDRs of $2.0 million at December 31, 2019: December 31, 2019 Current 30-59 Days 60-89 Days 90 Days or Total Total Commercial Owner occupied real estate $ 515,604 $ 920 $ — $ — $ 920 $ 516,524 Non-owner occupied real estate 972,195 80 — — 80 972,275 Residential spec homes 12,925 — — — — 12,925 Development & spec land 35,881 — — — — 35,881 Commercial and industrial 503,348 819 11 — 830 504,178 Total commercial 2,039,953 1,819 11 — 1,830 2,041,783 Real estate Residential mortgage 740,712 1,984 — 1 1,985 742,697 Residential construction 19,686 — — — — 19,686 Mortgage warehouse 150,293 — — — — 150,293 Total real estate 910,691 1,984 — 1 1,985 912,676 Consumer Direct installment 40,864 175 5 5 185 41,049 Indirect installment 344,478 2,407 404 135 2,946 347,424 Home equity 273,050 904 20 5 929 273,979 Total consumer 658,392 3,486 429 145 4,060 662,452 Total $ 3,609,036 $ 7,289 $ 440 $ 146 $ 7,875 $ 3,616,911 Percentage of total loans 99.78 % 0.20 % 0.01 % 0.01 % 0.22 % 100.00 % |
Loans by Credit Grades | The following tables present loans by credit grades and origination year. March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial Owner occupied real estate Pass $ 13,838 $ 63,995 $ 62,398 $ 60,650 $ 60,221 $ 173,904 $ 36,254 $ 471,260 Special Mention 174 291 5,276 3,896 2,348 9,114 — 21,099 Substandard — 1,482 3,014 824 500 8,105 4,617 18,542 Doubtful — — — — — — — — Total owner occupied real estate $ 14,012 $ 65,768 $ 70,688 $ 65,370 $ 63,069 $ 191,123 $ 40,871 $ 510,901 Non-owner occupied real estate Pass $ 25,445 $ 129,457 $ 86,194 $ 150,894 $ 130,686 $ 249,361 $ 156,142 $ 928,179 Special Mention 1,947 11,515 27,560 2,220 299 11,783 1,086 56,410 Substandard — — 2,439 114 457 4,996 — 8,006 Doubtful — — — — — — — — Total non-owner occupied real estate $ 27,392 $ 140,972 $ 116,193 $ 153,228 $ 131,442 $ 266,140 $ 157,228 $ 992,595 Residential spec homes Pass $ — $ 190 $ — $ 312 $ 957 $ 2,093 $ 8,116 $ 11,668 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total residential spec homes $ — $ 190 $ — $ 312 $ 957 $ 2,093 $ 8,116 $ 11,668 Development & spec land Pass $ 30 $ 932 $ 2,568 $ 4,496 $ 1,586 $ 14,645 $ 8,595 $ 32,852 Special Mention — — — — — 139 — 139 Substandard — — — — — — — — Doubtful — — — — — — — — Total development & spec land $ 30 $ 932 $ 2,568 $ 4,496 $ 1,586 $ 14,784 $ 8,595 $ 32,991 Commercial & industrial Pass $ 23,969 $ 71,713 $ 70,277 $ 108,382 $ 36,067 $ 102,731 $ 34,331 $ 447,470 Special Mention 122 3,563 10,134 3,857 2,872 12,926 1,005 34,479 Substandard — 5,611 3,169 3,558 619 4,938 2,403 20,298 Doubtful — — — — — — — — Total commercial & industrial $ 24,091 $ 80,887 $ 83,580 $ 115,797 $ 39,558 $ 120,595 $ 37,739 $ 502,247 Total commercial $ 65,525 $ 288,749 $ 273,029 $ 339,203 $ 236,612 $ 594,735 $ 252,549 $ 2,050,402 March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Real estate Residential mortgage Performing $ 29,138 $ 74,317 $ 139,327 $ 130,086 $ 96,489 $ 254,575 $ 329 $ 724,261 Non-performing — 267 148 372 1,377 6,609 — 8,773 Total residential mortgage $ 29,138 $ 74,584 $ 139,475 $ 130,458 $ 97,866 $ 261,184 $ 329 $ 733,034 Residential construction Performing $ — $ 338 $ — $ — $ — $ — $ 24,157 $ 24,495 Non-performing — — — — — — — — Total residential construction $ — $ 338 $ — $ — $ — $ — $ 24,157 $ 24,495 Mortgage warehouse Performing $ — $ — $ — $ — $ — $ — $ 223,519 $ 223,519 Non-performing — — — — — — — — Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ 223,519 $ 223,519 Total real estate $ 29,138 $ 74,922 $ 139,475 $ 130,458 $ 97,866 $ 261,184 $ 248,005 $ 981,048 March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Consumer Direct installment Performing $ 2,774 $ 13,701 $ 8,699 $ 8,267 $ 3,476 $ 3,014 $ 115 $ 40,046 Non-performing — 6 3 1 — 6 2 18 Total direct installment $ 2,774 $ 13,707 $ 8,702 $ 8,268 $ 3,476 $ 3,020 $ 117 $ 40,064 Indirect installment Performing $ 42,135 $ 129,329 $ 106,358 $ 56,278 $ 14,661 $ 10,168 $ — $ 358,929 Non-performing — 228 282 478 154 222 — 1,364 Total indirect installment $ 42,135 $ 129,557 $ 106,640 $ 56,756 $ 14,815 $ 10,390 $ — $ 360,293 Home equity Performing $ 10,688 $ 58,444 $ 48,683 $ 38,878 $ 30,030 $ 82,155 $ 4,322 $ 273,200 Non-performing — 9 66 81 19 1,089 1,028 2,292 Total home equity $ 10,688 $ 58,453 $ 48,749 $ 38,959 $ 30,049 $ 83,244 $ 5,350 $ 275,492 Total consumer $ 55,597 $ 201,717 $ 164,091 $ 103,983 $ 48,340 $ 96,654 $ 5,467 $ 675,849 December 31, 2019 Pass Special Substandard Doubtful Total Commercial Owner occupied real estate $ 492,386 $ 8,328 $ 18,863 $ — $ 519,577 Non-owner occupied real estate 957,990 7,824 7,517 — 973,331 Residential spec homes 12,925 — — — 12,925 Development & spec land 35,815 — 139 — 35,954 Commercial and industrial 468,893 18,652 18,314 — 505,859 Total commercial 1,968,009 34,804 44,833 — 2,047,646 Real estate Residential mortgage 741,136 — 9,883 — 751,019 Residential construction 19,686 — — — 19,686 Mortgage warehouse 150,293 — — — 150,293 Total real estate 911,115 — 9,883 — 920,998 Consumer Direct installment 41,044 — 35 — 41,079 Indirect installment 347,289 — 1,369 — 348,658 Home equity 273,665 — 2,550 — 276,215 Total consumer 661,998 — 3,954 — 665,952 Total $ 3,541,122 $ 34,804 $ 58,670 $ — $ 3,634,596 Percentage of total loans 97.43 % 0.96 % 1.61 % 0.00 % 100.00 % |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Summary of Repurchase Agreements Accounted as Secured Borrowings | The following table shows repurchase agreements accounted for as secured borrowings: March 31, 2020 Remaining Contractual Maturity of the Agreements Overnight Up to one One to three Three to five Five to ten Beyond ten Total Repurchase Agreements and repurchase-to-maturity transactions Repurchase Agreements $ 81,955 $ — $ — $ — $ — $ — $ 81,955 Securities pledged for Repurchase Agreements Federal agency collateralized mortgage obligations $ 42,280 $ — $ — $ — $ — $ — $ 42,280 Federal agency mortgage-backed pools 58,840 — — — — — 58,840 Total $ 101,120 $ — $ — $ — $ — $ — $ 101,120 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following tables summarize the fair value of derivative financial instruments utilized by Horizon: Asset Derivatives Liability Derivatives March 31, 2020 March 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Other assets $ 37,537 Other liabilities $ 47,620 Total derivatives designated as hedging instruments 37,537 47,620 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 1,269 Other liabilities — Total derivatives not designated as hedging instruments 1,269 — Total derivatives $ 38,806 $ 47,620 Asset Derivatives Liability Derivatives December 31, 2019 December 31, 2019 Balance Sheet Location Fair Balance Sheet Location Fair Derivatives designated as hedging instruments Interest rate contracts Other assets $ 11,422 Other liabilities $ 15,861 Total derivatives designated as hedging instruments 11,422 15,861 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 264 Other liabilities 38 Total derivatives not designated as hedging instruments 264 38 Total derivatives $ 11,686 $ 15,899 |
Effect of Derivative Instruments on Condensed Consolidated Statement of Income Derivative in Cash Flow Hedging Relationship | The effect of the derivative instruments on the condensed consolidated statements of income for the three-month periods ending March 31 is as follows: Amount of Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) Three Months Ended March 31, 2020 March 31, 2019 Derivatives in cash flow hedging relationship Interest rate contracts $ (3,132) $ (874) |
Effect of Derivative Instruments on Consolidated Statement of Income Derivative in Fair Value Hedging Relationship | Location of gain Amount of Gain (Loss) Recognized on Derivative Three Months Ended March 31, 2020 March 31, 2019 Derivative in fair value hedging relationship Interest rate contracts Interest income - loans $ (26,330) $ (4,051) Interest rate contracts Interest income - loans 26,330 4,051 Total $ — $ — Location of gain Amount of Gain (Loss) Recognized on Derivative Three Months Ended March 31, 2020 March 31, 2019 Derivative not designated as hedging relationship Mortgage contracts Other income - gain on sale of loans $ 1,043 $ 257 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following: March 31, 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities State and municipal $ 471,203 $ — $ 471,203 $ — Federal agency collateralized mortgage obligations 257,813 — 257,813 — Federal agency mortgage-backed pools 160,050 — 160,050 — Corporate notes 11,410 — 11,410 — Total available for sale securities 900,476 — 900,476 — Interest rate swap agreements asset 37,537 — 37,537 — Forward sale commitments 1,269 — 1,269 — Interest rate swap agreements liability (47,620) — (47,620) — December 31, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities U.S. Treasury and federal agencies $ 1,413 $ — $ 1,413 $ — State and municipal 405,768 — 405,768 — Federal agency collateralized mortgage obligations 269,252 — 269,252 — Federal agency mortgage-backed pools 146,572 — 146,572 — Corporate notes 11,771 — 11,771 — Total available for sale securities 834,776 — 834,776 — Interest rate swap agreements asset 11,422 — 11,422 — Forward sale commitments 264 — 264 — Interest rate swap agreements liability (15,861) — (15,861) — Commitments to originate loans (38) — (38) — |
Realized Gains and Losses Included in Net Income for Periods in Consolidated Statements of Income | Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows: Three Months Ended March 31, 2020 March 31, 2019 Non-interest Income Total gains and losses from: Hedged loans $ (26,330) $ (4,051) Fair value interest rate swap agreements 26,330 4,051 Derivative loan commitments 1,043 257 $ 1,043 $ 257 |
Other Assets Measured at Fair Value on Nonrecurring Basis | Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2020 Collateral dependent loans $ 7,959 $ — $ — $ 7,959 Mortgage servicing rights 14,160 — — 14,160 December 31, 2019 Impaired loans $ 6,806 $ — $ — $ 6,806 Mortgage servicing rights 14,327 — — 14,327 |
Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill | The following table presents qualitative information about unobservable inputs used in recurring and non-recurring Level 3 fair value measurements, other than goodwill. March 31, 2020 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral dependent loans $ 7,959 Collateral based measurement Discount to reflect current market conditions and ultimate collectibility 0.0%-100.0% (16.8%) Mortgage servicing rights 14,160 Discounted cash flows Discount rate, Constant prepayment rate, Probability of default 8.6%-8.7% (8.6%), 10.6%-20.4% (12.7%), 0.0%-2.4%(0.7%) December 31, 2019 Fair Valuation Unobservable Range Impaired loans $ 6,806 Collateral based measurement Discount to reflect current market conditions and ultimate collectibility 0.0%-100.0%(7.4%) Mortgage servicing rights 14,327 Discounted cash flows Discount rate, 8.7%-9.0% (8.7%), 10.2%-19.8%(12.2%), 0.1%-2.9%(0.7%) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall (unaudited). March 31, 2020 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and due from banks $ 86,458 $ 86,458 $ — $ — Interest-earning time deposits 9,239 — 9,357 — Investment securities, held to maturity 199,467 — 207,324 — Loans held for sale 6,245 — — 6,245 Loans (excluding loan level hedges), net 3,658,859 — — 3,694,421 Stock in FHLB 22,447 — 22,447 — Interest receivable 17,774 — 17,774 — Liabilities Non-interest bearing deposits $ 709,978 $ 709,978 $ — $ — Interest bearing deposits 3,172,293 — 3,151,657 — Borrowings 704,613 — 710,005 — Subordinated debentures 56,374 — 52,118 — Interest payable 2,772 — 2,772 — December 31, 2019 Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash and due from banks $ 98,831 $ 98,831 $ — $ — Interest-earning time deposits 8,455 — 8,537 — Investment securities, held to maturity 207,899 — 215,147 — Loans held for sale 4,088 — — 4,088 Loans (excluding loan level hedges), net 3,619,174 — — 3,554,951 Stock in FHLB 22,447 — 22,447 — Interest receivable 18,828 — 18,828 — Liabilities Non-interest bearing deposits $ 709,760 $ 709,760 $ — $ — Interest bearing deposits 3,221,242 — 3,180,768 — Borrowings 549,741 — 546,995 — Subordinated debentures 56,311 — 51,809 — Interest payable 3,062 — 3,062 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | March 31, December 31, Unrealized gain on securities available for sale $ 20,340 $ 12,687 Unamortized loss on securities held to maturity, previously transferred from AFS (137) (107) Unrealized loss on derivative instruments (8,405) (4,440) Tax effect (2,476) (1,708) Total accumulated other comprehensive income $ 9,322 $ 6,432 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Summary of Regulatory Capital Requirement | Horizon and the Bank’s actual and required capital ratios as of March 31, 2020 and December 31, 2019 were as follows: Actual Required for Capital 1 Adequacy Purposes Required For Capital 1 Adequacy Purposes with Capital Buffer Well Capitalized Under Prompt 1 Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total capital 1 (to risk-weighted assets) Consolidated $ 551,215 13.69 % $ 322,112 8.00 % $ 422,773 10.50 % N/A N/A Bank 513,248 12.73 % 322,544 8.00 % 423,339 10.50 % $ 403,180 10.00 % Tier 1 capital 1 (to risk-weighted assets) Consolidated 514,493 12.78 % 241,546 6.00 % 342,190 8.50 % N/A N/A Bank 476,526 11.82 % 241,891 6.00 % 342,679 8.50 % 322,522 8.00 % Common equity tier 1 capital 1 (to risk-weighted assets) Consolidated 457,000 11.35 % 181,189 4.50 % 281,850 7.00 % N/A N/A Bank 476,526 11.82 % 181,419 4.50 % 282,207 7.00 % 262,049 6.50 % Tier 1 capital 1 (to average assets) Consolidated 514,493 10.14 % 202,956 4.00 % 202,956 4.00 % N/A N/A Bank 476,526 9.43 % 202,132 4.00 % 202,132 4.00 % 252,665 5.00 % December 31, 2019 Total capital 1 (to risk-weighted assets) Consolidated $ 548,364 13.95 % $ 314,395 8.00 % $ 412,644 10.500 % N/A N/A Bank 497,227 12.65 % 314,452 8.00 % 412,718 10.500 % $ 393,065 10.00 % Tier 1 capital 1 (to risk-weighted assets) Consolidated 530,643 13.50 % 235,796 6.00 % 334,044 8.500 % N/A N/A Bank 479,506 12.20 % 235,823 6.00 % 334,082 8.500 % 314,430 8.00 % Common equity tier 1 capital 1 (to risk-weighted assets) Consolidated 473,150 12.04 % 176,846 4.50 % 275,094 7.000 % N/A N/A Bank 479,506 12.20 % 176,867 4.50 % 275,126 7.000 % 255,475 6.50 % Tier 1 capital 1 (to average assets) Consolidated 530,643 10.50 % 202,111 4.00 % 202,111 4.000 % N/A N/A Bank 479,506 9.49 % 202,110 4.00 % 202,110 4.000 % 252,638 5.00 % (1) As defined by regulatory agencies |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Details) - USD ($) | Mar. 06, 2020 | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jul. 16, 2019 |
Schedule Of Accounting Policies [Line Items] | |||||
Number of shares authorized to be repurchased | 2,250,000 | ||||
Number of shares repurchased | 1,000,000 | 373,323 | |||
Average price per share repurchased | $ 15.19 | $ 15.86 | |||
Shares, non-dilutive (in shares) | 293,665 | 350,618 | |||
Impact of adoption of ASU No. 2016-13 | $ (15,635,000) | ||||
Initial PCD Allowance | 2,800,000 | $ 2,786,000 | |||
Accrued interest receivable | $ 11,000,000 | ||||
Loan delinquency period | 90 days | ||||
Minimum period required for satisfactory performance to return loan from non-accrual to accrual status | 6 months | ||||
Period of loan sold by mortgage company | 30 days | ||||
Minimum period seldom held | 90 days | ||||
Mortgage warehousing maximum pay off period | 30 days | ||||
Reclassifications effect on net income | $ 0 | ||||
Mortgage loan deferred due cost | $ 0 | ||||
Minimum | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Loan delinquency period | 90 days | ||||
Delay or shortfall in payments of loan | 30 days | ||||
Maximum | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Allowance for loan losses charge down family first and junior lien mortgages past due period | 180 days | ||||
Allowance for loan losses charge down unsecured open end loans past due period | 90 days | ||||
Allowance for loan losses charge down other secured loans past due period | 90 days | ||||
Accounting Standards Update 2016-13 | Retained Earnings | |||||
Schedule Of Accounting Policies [Line Items] | |||||
Impact of adoption of ASU No. 2016-13 | $ (15,635,000) |
Accounting Policies - Summary o
Accounting Policies - Summary of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic earnings per share | ||
Net income | $ 11,655 | $ 10,816 |
Weighted average common shares outstanding (in shares) | 44,658,512 | 38,822,543 |
Basic Earnings Per Share (in USD per share) | $ 0.26 | $ 0.28 |
Diluted earnings per share | ||
Net income | $ 11,655 | $ 10,816 |
Effect of dilutive securities: | ||
Weighted average common shares outstanding (in shares) | 44,756,716 | 38,906,172 |
Diluted Earnings Per Share (in USD per share) | $ 0.26 | $ 0.28 |
Restricted Stock | ||
Effect of dilutive securities: | ||
Effect of dilutive securities | 39,845 | 0 |
Stock Options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities | 58,359 | 83,629 |
Accounting Policies - Impact of
Accounting Policies - Impact of ASC 326 (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | $ 48,440 | $ 22,577 | $ 17,667 | $ 17,821 | $ 17,820 |
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 13,618 | ||||
Real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 4,048 | ||||
Mortgage warehouse | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | $ 1,055 | 0 | 1,077 | $ 1,014 | $ 1,006 |
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 4,911 | ||||
As Reported Under ASC 326 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 40,244 | ||||
As Reported Under ASC 326 | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 25,614 | ||||
As Reported Under ASC 326 | Real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 4,971 | ||||
As Reported Under ASC 326 | Mortgage warehouse | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 1,077 | ||||
As Reported Under ASC 326 | Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 8,582 | ||||
Impact of adopting ASC 326 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 17,667 | 19,791 | |||
Impact of adopting ASC 326 | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 11,996 | ||||
Impact of adopting ASC 326 | Real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 923 | ||||
Impact of adopting ASC 326 | Mortgage warehouse | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | 1,077 | $ 0 | |||
Impact of adopting ASC 326 | Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses on loans | $ 3,671 |
Acquisitions Additional Informa
Acquisitions Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 26, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Common stock, shares outstanding (in shares) | 43,763,623 | 44,975,771 | |
Acquisition of goodwill | $ 151,238 | $ 151,238 | |
Salin | |||
Business Acquisition [Line Items] | |||
Exchange ratio per share | 23907.50% | ||
Cash paid for shares | $ 87,417.17 | ||
Common stock, shares outstanding (in shares) | 275,000 | ||
Common stock issued (in shares) | 6,563,697 | ||
Market closing price per share (in USD per share) | $ 15.65 | ||
Estimated transaction value | $ 126,700 | ||
Costs related to the acquisition | 5,600 | ||
Total purchase price | 126,722 | ||
Net intangible assets acquired | 19,818 | ||
Acquisition of goodwill | $ 31,358 | ||
Core deposit intangible amortization period | 10 years |
Acquisitions Schedule of Final
Acquisitions Schedule of Final Purchase Price of Assets Acquired and Liabilities Assumed for Salin (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 26, 2019 |
Loans | |||
Goodwill | $ 151,238 | $ 151,238 | |
Salin | |||
Assets | |||
Cash and due from banks | $ 152,745 | ||
Investment securities, available for sale | 54,319 | ||
Loans | |||
Total loans | 568,918 | ||
Premises and equipment, net | 20,425 | ||
FRB and FHLB stock | 3,571 | ||
Goodwill | 31,358 | ||
Core deposit intangible | 19,818 | ||
Interest receivable | 2,488 | ||
Other assets | 112,880 | ||
Total assets purchased | 966,522 | ||
Common shares issued | 102,722 | ||
Cash paid | 24,000 | ||
Total purchase price | 126,722 | ||
Deposits | |||
Non-interest bearing | 188,744 | ||
NOW accounts | 207,567 | ||
Savings and money market | 274,504 | ||
Certificates of deposit | 70,529 | ||
Total deposits | 741,344 | ||
Borrowings | 70,495 | ||
Subordinated debentures | 18,376 | ||
Interest payable | 826 | ||
Other liabilities | 8,759 | ||
Total liabilities assumed | 839,800 | ||
Salin | Residential mortgage | |||
Loans | |||
Total loans | 131,008 | ||
Salin | Commercial | |||
Loans | |||
Total loans | 352,798 | ||
Salin | Consumer | |||
Loans | |||
Total loans | $ 85,112 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30 (Details) - Salin $ in Thousands | Mar. 26, 2019USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest at acquisition | $ 22,672 |
Contractual cash flows not expected to be collected (nonaccretable differences) | 6,694 |
Expected cash flows at acquisition | 15,978 |
Interest component of expected cash flows (accretable discount) | 735 |
Fair value of acquired loans accounted for under ASC310-30 | $ 15,243 |
Acquisitions - Pro Forma Result
Acquisitions - Pro Forma Result of Comparable Prior Reporting Period (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / shares | |
Business Acquisition, Pro Forma Information [Abstract] | |
Net Interest Income | $ 42,182 |
Provision for Loan Losses | 664 |
Net Interest Income after Provision for Loan Losses | 41,518 |
Non-interest Income | 9,126 |
Non-interest Expense | 42,152 |
Income before Income Taxes | 8,492 |
Income Tax Expense | 2,017 |
Net Income | 6,475 |
Net Income Available to Common Shareholders | $ 6,475 |
Basic Earnings Per Share (in USD per share) | $ / shares | $ 0.17 |
Diluted Earnings Per Share (in USD per share) | $ / shares | $ 0.17 |
Securities - Fair Value of Secu
Securities - Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale | ||
Amortized Cost | $ 880,136 | $ 822,089 |
Gross Unrealized Gains | 24,645 | 15,961 |
Gross Unrealized Losses | (4,305) | (3,274) |
Fair Value | 900,476 | 834,776 |
Held to maturity | ||
Amortized Cost | 199,467 | 207,899 |
Gross Unrealized Gains | 7,974 | 7,336 |
Gross Unrealized Losses | (117) | (88) |
Fair Value | 207,324 | 215,147 |
U.S. Treasury and federal agencies | ||
Available for sale | ||
Amortized Cost | 1,415 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (2) | |
Fair Value | 1,413 | |
State and municipal | ||
Available for sale | ||
Amortized Cost | 460,013 | 396,931 |
Gross Unrealized Gains | 15,311 | 11,288 |
Gross Unrealized Losses | (4,121) | (2,451) |
Fair Value | 471,203 | 405,768 |
Held to maturity | ||
Amortized Cost | 183,478 | 190,767 |
Gross Unrealized Gains | 7,496 | 7,129 |
Gross Unrealized Losses | (117) | (54) |
Fair Value | 190,857 | 197,842 |
Federal agency collateralized mortgage obligations | ||
Available for sale | ||
Amortized Cost | 253,977 | 267,272 |
Gross Unrealized Gains | 4,020 | 2,543 |
Gross Unrealized Losses | (184) | (563) |
Fair Value | 257,813 | 269,252 |
Held to maturity | ||
Amortized Cost | 3,693 | 4,560 |
Gross Unrealized Gains | 53 | 13 |
Gross Unrealized Losses | 0 | (5) |
Fair Value | 3,746 | 4,568 |
Federal agency mortgage-backed pools | ||
Available for sale | ||
Amortized Cost | 155,289 | 145,623 |
Gross Unrealized Gains | 4,761 | 1,207 |
Gross Unrealized Losses | 0 | (258) |
Fair Value | 160,050 | 146,572 |
Held to maturity | ||
Amortized Cost | 12,296 | 12,572 |
Gross Unrealized Gains | 425 | 194 |
Gross Unrealized Losses | 0 | (29) |
Fair Value | 12,721 | 12,737 |
Corporate notes | ||
Available for sale | ||
Amortized Cost | 10,857 | 10,848 |
Gross Unrealized Gains | 553 | 923 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 11,410 | $ 11,771 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost within one year | $ 44,227 | $ 37,386 |
Amortized cost one to five years | 41,322 | 41,230 |
Amortized cost for five to ten years | 114,900 | 117,004 |
Amortized cost for after ten years | 270,421 | 213,574 |
Total amortized cost | 470,870 | 409,194 |
Total available for sale investment securities, Amortized Cost | 880,136 | 822,089 |
Within one year, amortized cost | 10,082 | 7,811 |
One to five years, amortized cost | 51,401 | 56,037 |
Five to ten years, amortized cost | 91,291 | 94,756 |
After ten years, amortized cost | 30,704 | 32,163 |
Total amortized cost | 183,478 | 190,767 |
Investment securities, held to maturity | 199,467 | 207,899 |
Fair value within one year | 44,107 | 37,321 |
Fair value for one to five years | 41,175 | 41,293 |
Fair value for five to ten years | 119,147 | 122,145 |
Fair value for after ten years | 278,184 | 218,193 |
Total fair value | 482,613 | 418,952 |
Investment securities, available for sale | 900,476 | 834,776 |
Within one year, fair value | 10,127 | 7,874 |
One to five years, fair value | 52,364 | 57,048 |
five to ten years, fair value | 95,026 | 98,480 |
After ten years, fair value | 33,340 | 34,440 |
Total fair value | 190,857 | 197,842 |
Fair Value | 207,324 | 215,147 |
Federal agency collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 253,977 | 267,272 |
Investment securities, held to maturity | 3,693 | 4,560 |
Investment securities, available for sale | 257,813 | 269,252 |
Fair Value | 3,746 | 4,568 |
Federal agency mortgage-backed pools | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 155,289 | 145,623 |
Investment securities, held to maturity | 12,296 | 12,572 |
Investment securities, available for sale | 160,050 | 146,572 |
Fair Value | $ 12,721 | $ 12,737 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Value of Company's Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | $ 179,722 | $ 224,138 |
Fair value more than 12 months | 7,336 | 67,402 |
Total fair value | 187,058 | 291,540 |
Unrealized losses less than 12 months | (4,140) | (2,788) |
Unrealized losses more than 12 months | (282) | (574) |
Total unrealized losses | (4,422) | (3,362) |
U.S. Treasury and federal agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 1,413 | |
Fair value more than 12 months | 0 | |
Total fair value | 1,413 | |
Unrealized losses less than 12 months | (2) | |
Unrealized losses more than 12 months | 0 | |
Total unrealized losses | (2) | |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 152,037 | 129,942 |
Fair value more than 12 months | 7,336 | 6,279 |
Total fair value | 159,373 | 136,221 |
Unrealized losses less than 12 months | (3,956) | (2,374) |
Unrealized losses more than 12 months | (282) | (131) |
Total unrealized losses | (4,238) | (2,505) |
Federal agency collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 27,685 | 68,043 |
Fair value more than 12 months | 0 | 23,301 |
Total fair value | 27,685 | 91,344 |
Unrealized losses less than 12 months | (184) | (308) |
Unrealized losses more than 12 months | 0 | (260) |
Total unrealized losses | $ (184) | (568) |
Federal agency mortgage-backed pools | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 24,740 | |
Fair value more than 12 months | 37,822 | |
Total fair value | 62,562 | |
Unrealized losses less than 12 months | (104) | |
Unrealized losses more than 12 months | (183) | |
Total unrealized losses | (287) | |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 0 | |
Fair value more than 12 months | 0 | |
Total fair value | 0 | |
Unrealized losses less than 12 months | 0 | |
Unrealized losses more than 12 months | 0 | |
Total unrealized losses | $ 0 |
Securities - Sales of Securitie
Securities - Sales of Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 32,036 | $ 17,587 |
Gross gains | 389 | 59 |
Gross losses | $ (50) | $ (44) |
Loans - Loans Outstanding by Po
Loans - Loans Outstanding by Portfolio Class (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | $ 3,707,299 | $ 3,634,596 |
Allowance for loan losses | (48,440) | (17,667) |
Net loans | 3,658,859 | |
Deferred loan costs | 3,000 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 2,050,402 | 2,047,646 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 981,048 | 920,998 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 675,849 | 665,952 |
Owner occupied real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 510,901 | 519,577 |
Non-owner occupied real estate | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 992,595 | 973,331 |
Residential spec homes | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 11,668 | |
Development & spec land | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 32,991 | 35,954 |
Commercial and industrial | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 502,247 | 505,859 |
Residential mortgage | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 733,034 | 751,019 |
Residential construction | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 24,495 | 19,686 |
Mortgage warehouse | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 223,519 | 150,293 |
Direct installment | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 40,064 | 41,079 |
Indirect installment | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | 360,293 | 348,658 |
Home equity | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | $ 275,492 | $ 276,215 |
Loans - Amounts of Loans (Detai
Loans - Amounts of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | $ 3,707,299 | $ 3,634,596 |
Total loans | 3,636,841 | |
Allowance for loan losses | (48,440) | (17,667) |
Loans, net | 3,658,859 | 3,619,174 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 2,046,651 | |
Loan Balance | 2,050,402 | 2,047,646 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real Estate, Total | 770,717 | |
Loan Balance | 981,048 | 920,998 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 669,180 | |
Loan Balance | 675,849 | 665,952 |
Working capital and equipment | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 938,317 | |
Real estate, including agriculture | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 978,891 | |
Tax exempt | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 63,571 | |
Other | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 65,872 | |
1-4 family | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real Estate, Total | 762,571 | |
Other | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real Estate, Total | 8,146 | |
Auto | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 362,729 | |
Recreation | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 16,262 | |
Real estate/home improvement | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 43,585 | |
Home equity | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 237,979 | |
Loan Balance | $ 275,492 | 276,215 |
Unsecured | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 7,286 | |
Other | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial/Consumer, Total | 1,339 | |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Balance | $ 150,293 |
Accounting for Certain Loans _3
Accounting for Certain Loans Acquired in a Transfer - Amounts of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | $ 3,636,841 | |
Allowance for Loan Losses | $ 48,440 | 17,667 |
Carrying Amount | $ 3,658,859 | |
Loans Purchased With Evidence of Credit Deterioration | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 14,630 | |
Allowance for Loan Losses | 133 | |
Carrying Amount | 14,497 | |
Loans Purchased With Evidence of Credit Deterioration | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 10,205 | |
Loans Purchased With Evidence of Credit Deterioration | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 3,443 | |
Loans Purchased With Evidence of Credit Deterioration | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 982 | |
Loans Purchased With Evidence of Credit Deterioration | Heartland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 296 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 296 | |
Loans Purchased With Evidence of Credit Deterioration | Heartland | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 197 | |
Loans Purchased With Evidence of Credit Deterioration | Heartland | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 99 | |
Loans Purchased With Evidence of Credit Deterioration | Heartland | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Summit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 561 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 561 | |
Loans Purchased With Evidence of Credit Deterioration | Summit | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 88 | |
Loans Purchased With Evidence of Credit Deterioration | Summit | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 473 | |
Loans Purchased With Evidence of Credit Deterioration | Summit | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Peoples | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 264 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 264 | |
Loans Purchased With Evidence of Credit Deterioration | Peoples | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 229 | |
Loans Purchased With Evidence of Credit Deterioration | Peoples | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 35 | |
Loans Purchased With Evidence of Credit Deterioration | Peoples | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Kosciusko | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 375 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 375 | |
Loans Purchased With Evidence of Credit Deterioration | Kosciusko | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 244 | |
Loans Purchased With Evidence of Credit Deterioration | Kosciusko | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 131 | |
Loans Purchased With Evidence of Credit Deterioration | Kosciusko | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | LaPorte | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 1,166 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 1,166 | |
Loans Purchased With Evidence of Credit Deterioration | LaPorte | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 353 | |
Loans Purchased With Evidence of Credit Deterioration | LaPorte | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 793 | |
Loans Purchased With Evidence of Credit Deterioration | LaPorte | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 20 | |
Loans Purchased With Evidence of Credit Deterioration | Lafayette | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 1,867 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 1,867 | |
Loans Purchased With Evidence of Credit Deterioration | Lafayette | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 1,867 | |
Loans Purchased With Evidence of Credit Deterioration | Lafayette | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Lafayette | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Wolverine | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 2,289 | |
Allowance for Loan Losses | 0 | |
Carrying Amount | 2,289 | |
Loans Purchased With Evidence of Credit Deterioration | Wolverine | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 2,289 | |
Loans Purchased With Evidence of Credit Deterioration | Wolverine | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Wolverine | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 0 | |
Loans Purchased With Evidence of Credit Deterioration | Salin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 7,812 | |
Allowance for Loan Losses | 133 | |
Carrying Amount | 7,679 | |
Loans Purchased With Evidence of Credit Deterioration | Salin | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 4,938 | |
Loans Purchased With Evidence of Credit Deterioration | Salin | Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | 1,912 | |
Loans Purchased With Evidence of Credit Deterioration | Salin | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Balance | $ 962 |
Accounting for Certain Loans _4
Accounting for Certain Loans Acquired in a Transfer - Accretable Yield or Income Expected to be Collected (Details) - Loans Purchased With Evidence of Credit Deterioration $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | $ 2,652 |
Additions | 3,368 |
Accretion | (215) |
Reclassification from nonaccretable difference | 0 |
Disposals | (190) |
Ending balance | 5,615 |
Heartland | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 174 |
Additions | 0 |
Accretion | (8) |
Reclassification from nonaccretable difference | 0 |
Disposals | 0 |
Ending balance | 166 |
Summit | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 42 |
Additions | 0 |
Accretion | (3) |
Reclassification from nonaccretable difference | 0 |
Disposals | (11) |
Ending balance | 28 |
Kosciusko | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 300 |
Additions | 0 |
Accretion | (17) |
Reclassification from nonaccretable difference | 0 |
Disposals | 0 |
Ending balance | 283 |
LaPorte | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 829 |
Additions | 0 |
Accretion | (29) |
Reclassification from nonaccretable difference | 0 |
Disposals | 0 |
Ending balance | 800 |
Lafayette | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 609 |
Additions | 0 |
Accretion | (35) |
Reclassification from nonaccretable difference | 0 |
Disposals | (171) |
Ending balance | 403 |
Wolverine | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 698 |
Additions | 0 |
Accretion | (123) |
Reclassification from nonaccretable difference | 0 |
Disposals | (8) |
Ending balance | 567 |
Salin | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Beginning balance | 0 |
Additions | 3,368 |
Accretion | 0 |
Reclassification from nonaccretable difference | 0 |
Disposals | 0 |
Ending balance | $ 3,368 |
Accounting for Certain Loans _5
Accounting for Certain Loans Acquired in a Transfer - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Provision for credit losses | $ 8,600 | $ 364 |
Loans Purchased With Evidence of Credit Deterioration | ||
Business Acquisition [Line Items] | ||
Provision for credit losses | $ 296 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | $ 17,667 | $ 17,667 | $ 17,820 |
Initial PCD Allowance | 2,800 | 2,786 | |
Provision for credit losses on loans | 8,600 | 364 | |
Charge-offs | (713) | (661) | |
Recoveries | 309 | 298 | |
Balance, end of period | 22,577 | 48,440 | 17,821 |
Impact of adopting ASC 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 19,791 | 19,791 | |
Balance, end of period | 17,667 | ||
Mortgage warehouse | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 1,077 | 1,077 | 1,006 |
Initial PCD Allowance | 0 | ||
Provision for credit losses on loans | (22) | 8 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Balance, end of period | 0 | 1,055 | 1,014 |
Mortgage warehouse | Impact of adopting ASC 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 0 | 0 | |
Balance, end of period | 1,077 | ||
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 11,996 | 11,996 | 10,495 |
Initial PCD Allowance | 2,786 | ||
Provision for credit losses on loans | 6,916 | 1,122 | |
Charge-offs | (69) | (77) | |
Recoveries | 89 | 16 | |
Balance, end of period | 32,550 | 11,556 | |
Commercial | Impact of adopting ASC 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 10,832 | 10,832 | |
Real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 923 | 923 | 1,676 |
Initial PCD Allowance | 0 | ||
Provision for credit losses on loans | 700 | (115) | |
Charge-offs | (26) | 0 | |
Recoveries | 9 | 27 | |
Balance, end of period | 5,654 | 1,588 | |
Real estate | Impact of adopting ASC 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 4,048 | 4,048 | |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 3,671 | 3,671 | 4,643 |
Initial PCD Allowance | 0 | ||
Provision for credit losses on loans | 1,006 | (651) | |
Charge-offs | (618) | (584) | |
Recoveries | 211 | 255 | |
Balance, end of period | 9,181 | $ 3,663 | |
Consumer | Impact of adopting ASC 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | $ 4,911 | $ 4,911 |
Allowance for Loan Losses - A_2
Allowance for Loan Losses - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Ending allowance balance attributable to loans: | |||||
Allowance for credit losses on loans | $ 48,440 | $ 22,577 | $ 17,667 | $ 17,821 | $ 17,820 |
Total ending allowance balance | 48,440 | 17,667 | |||
Loans | |||||
Loans | |||||
Individually evaluated for impairment | 7,347 | ||||
Collectively evaluated for impairment | 3,627,249 | ||||
Loans acquired with deteriorated credit quality | 0 | ||||
Total ending loans balance | 3,634,596 | ||||
Allowance For Loan Losses | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 541 | ||||
Collectively evaluated for impairment | 17,126 | ||||
Allowance for credit losses on loans | 0 | ||||
Total ending allowance balance | 17,667 | ||||
Mortgage warehouse | Loans | |||||
Loans | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 150,293 | ||||
Loans acquired with deteriorated credit quality | 0 | ||||
Total ending loans balance | 150,293 | ||||
Mortgage warehouse | Allowance For Loan Losses | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 1,077 | ||||
Allowance for credit losses on loans | 0 | ||||
Total ending allowance balance | 1,077 | ||||
Commercial | |||||
Ending allowance balance attributable to loans: | |||||
Allowance for credit losses on loans | 32,550 | 11,996 | 11,556 | 10,495 | |
Commercial | Loans | |||||
Loans | |||||
Individually evaluated for impairment | 7,347 | ||||
Collectively evaluated for impairment | 2,040,299 | ||||
Loans acquired with deteriorated credit quality | 0 | ||||
Total ending loans balance | 2,047,646 | ||||
Commercial | Allowance For Loan Losses | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 541 | ||||
Collectively evaluated for impairment | 11,455 | ||||
Allowance for credit losses on loans | 0 | ||||
Total ending allowance balance | 11,996 | ||||
Real estate | |||||
Ending allowance balance attributable to loans: | |||||
Allowance for credit losses on loans | 5,654 | 923 | 1,588 | 1,676 | |
Real estate | Loans | |||||
Loans | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 770,705 | ||||
Loans acquired with deteriorated credit quality | 0 | ||||
Total ending loans balance | 770,705 | ||||
Real estate | Allowance For Loan Losses | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 923 | ||||
Allowance for credit losses on loans | 0 | ||||
Total ending allowance balance | 923 | ||||
Consumer | |||||
Ending allowance balance attributable to loans: | |||||
Allowance for credit losses on loans | $ 9,181 | 3,671 | $ 3,663 | $ 4,643 | |
Consumer | Loans | |||||
Loans | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 665,952 | ||||
Loans acquired with deteriorated credit quality | 0 | ||||
Total ending loans balance | 665,952 | ||||
Consumer | Allowance For Loan Losses | |||||
Ending allowance balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | ||||
Collectively evaluated for impairment | 3,671 | ||||
Allowance for credit losses on loans | 0 | ||||
Total ending allowance balance | $ 3,671 |
Non-performing Loans and Impa_3
Non-performing Loans and Impaired Loans - Non-accrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | $ 18,281 | $ 15,679 |
Loans Past Due Over 90 Days Still Accruing | 246 | 146 |
TDR loans | 3,360 | 2,006 |
Performing TDRs | 2,115 | 3,354 |
Total Non-performing Loans | 24,002 | 21,185 |
Non-accrual with no Allowance for Credit Losses | 8,124 | 15,909 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 7,017 | 4,782 |
Loans Past Due Over 90 Days Still Accruing | 11 | 0 |
TDR loans | 2,412 | 1,081 |
Performing TDRs | 139 | 1,484 |
Total Non-performing Loans | 9,579 | 7,347 |
Non-accrual with no Allowance for Credit Losses | 4,900 | 4,087 |
Commercial | Owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 5,512 | 2,424 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
TDR loans | 629 | 629 |
Performing TDRs | 139 | 139 |
Total Non-performing Loans | 6,280 | 3,192 |
Non-accrual with no Allowance for Credit Losses | 3,123 | 2,563 |
Commercial | Non-owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 641 | 682 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
TDR loans | 361 | 374 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 1,002 | 1,056 |
Non-accrual with no Allowance for Credit Losses | 888 | 937 |
Commercial | Residential spec homes | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 0 | 0 |
Non-accrual with no Allowance for Credit Losses | 0 | 0 |
Commercial | Development & spec land | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 73 | 73 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 73 | 73 |
Non-accrual with no Allowance for Credit Losses | 73 | 73 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 791 | 1,603 |
Loans Past Due Over 90 Days Still Accruing | 11 | 0 |
TDR loans | 1,422 | 78 |
Performing TDRs | 0 | 1,345 |
Total Non-performing Loans | 2,224 | 3,026 |
Non-accrual with no Allowance for Credit Losses | 816 | 514 |
Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 8,040 | 7,614 |
Loans Past Due Over 90 Days Still Accruing | 0 | 1 |
TDR loans | 733 | 708 |
Performing TDRs | 1,638 | 1,561 |
Total Non-performing Loans | 10,411 | 9,884 |
Non-accrual with no Allowance for Credit Losses | 0 | 8,322 |
Real estate | Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 8,040 | 7,614 |
Loans Past Due Over 90 Days Still Accruing | 0 | 1 |
TDR loans | 733 | 708 |
Performing TDRs | 1,638 | 1,561 |
Total Non-performing Loans | 10,411 | 9,884 |
Non-accrual with no Allowance for Credit Losses | 0 | 8,322 |
Real estate | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 0 | 0 |
Non-accrual with no Allowance for Credit Losses | 0 | 0 |
Real estate | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Loans Past Due Over 90 Days Still Accruing | 0 | 0 |
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 0 | 0 |
Non-accrual with no Allowance for Credit Losses | 0 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 3,224 | 3,283 |
Loans Past Due Over 90 Days Still Accruing | 235 | 145 |
TDR loans | 215 | 217 |
Performing TDRs | 338 | 309 |
Total Non-performing Loans | 4,012 | 3,954 |
Non-accrual with no Allowance for Credit Losses | 3,224 | 3,500 |
Consumer | Direct installment | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 18 | 30 |
Loans Past Due Over 90 Days Still Accruing | 0 | 5 |
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 18 | 35 |
Non-accrual with no Allowance for Credit Losses | 18 | 30 |
Consumer | Indirect installment | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,168 | 1,234 |
Loans Past Due Over 90 Days Still Accruing | 196 | 135 |
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total Non-performing Loans | 1,364 | 1,369 |
Non-accrual with no Allowance for Credit Losses | 1,168 | 1,234 |
Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 2,038 | 2,019 |
Loans Past Due Over 90 Days Still Accruing | 39 | 5 |
TDR loans | 215 | 217 |
Performing TDRs | 338 | 309 |
Total Non-performing Loans | 2,630 | 2,550 |
Non-accrual with no Allowance for Credit Losses | $ 2,038 | $ 2,236 |
Non-performing Loans and Impa_4
Non-performing Loans and Impaired Loans - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)consecutivePayment | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 18,281,000 | $ 15,679,000 |
Non-performing TDRs | $ 3,400,000 | |
Restructured loan returned to accruing status number of Consecutive Payments of loan | consecutivePayment | 6 | |
Restructured loan reported in TDRs | $ 5,475,000 | 5,360,000 |
Specific reserves allocated to troubled debt restructuring | 435,000 | |
TDR loans | 3,360,000 | 2,006,000 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | 7,017,000 | 4,782,000 |
Restructured loan reported in TDRs | 2,551,000 | 2,565,000 |
TDR loans | 2,412,000 | 1,081,000 |
Commercial | Owner occupied real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | 5,512,000 | 2,424,000 |
Restructured loan reported in TDRs | 768,000 | 768,000 |
Non-accrual loans | 18,300,000 | 15,700,000 |
TDR loans | 629,000 | $ 629,000 |
CARES Act | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructured loan reported in TDRs | 56,600,000 | |
Performing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructured loan reported in TDRs | $ 3,400,000 | |
Number TDRs returned to accrual status | consecutivePayment | 1 | |
Loans Purchased With Evidence of Credit Deterioration | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 3,500,000 | |
Non-performing TDRs | 101,000 | |
Minimum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans with an aggregate credit exposure | $ 1,000,000 | |
Loans classified as TDR after a period | 90 days | |
Minimum | Good Pass | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of consecutive years of profit Unaudited Financial Information for Good Pass Rating | 5 years | |
Number of years of Satisfactory Relationship with bank for Good Pass Rating | 5 years | |
Minimum | Satisfactory Pass | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of consecutive years of profit for Good Pass Rating | 3 years | |
Maximum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans with an aggregate credit exposure | $ 3,500,000 | |
Loans classified as TDR after a period | 120 days | |
Minimum number of years of Satisfactory Repayment required for Satisfactory Pass Rating | 2 years |
Non-performing Loans and Impa_5
Non-performing Loans and Impaired Loans - Schedule of TDRs by Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | $ 3,360 | $ 2,006 |
Performing TDRs | 2,115 | 3,354 |
Total | 5,475 | 5,360 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 2,412 | 1,081 |
Performing TDRs | 139 | 1,484 |
Total | 2,551 | 2,565 |
Commercial | Owner occupied real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 629 | 629 |
Performing TDRs | 139 | 139 |
Total | 768 | 768 |
Commercial | Non-owner occupied real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 361 | 374 |
Performing TDRs | 0 | 0 |
Total | 361 | 374 |
Commercial | Residential spec homes | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total | 0 | 0 |
Commercial | Development & spec land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total | 0 | 0 |
Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 1,422 | 78 |
Performing TDRs | 0 | 1,345 |
Total | 1,422 | 1,423 |
Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 733 | 708 |
Performing TDRs | 1,638 | 1,561 |
Total | 2,371 | 2,269 |
Real estate | Residential mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 733 | 708 |
Performing TDRs | 1,638 | 1,561 |
Total | 2,371 | 2,269 |
Real estate | Residential construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total | 0 | 0 |
Real estate | Mortgage warehouse | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total | 0 | 0 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 215 | 217 |
Performing TDRs | 338 | 309 |
Total | 553 | 526 |
Consumer | Direct installment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total | 0 | 0 |
Consumer | Indirect installment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 0 | 0 |
Performing TDRs | 0 | 0 |
Total | 0 | 0 |
Consumer | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans | 215 | 217 |
Performing TDRs | 338 | 309 |
Total | $ 553 | $ 526 |
Non-performing Loans and Impa_6
Non-performing Loans and Impaired Loans - Collateral Pledged Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | $ 3,707,299 | $ 3,634,596 |
Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 981,048 | 920,998 |
Real estate | Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 733,034 | 751,019 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 2,050,402 | 2,047,646 |
Commercial | Owner occupied real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 510,901 | 519,577 |
Commercial | Non-owner occupied real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 992,595 | 973,331 |
Commercial | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 502,247 | $ 505,859 |
Collateral Pledged [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 4,439 | |
Collateral Pledged [Member] | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 681 | |
Collateral Pledged [Member] | Real estate | Residential mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 681 | |
Collateral Pledged [Member] | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 3,758 | |
Collateral Pledged [Member] | Commercial | Owner occupied real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 3,018 | |
Collateral Pledged [Member] | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | 114 | |
Collateral Pledged [Member] | Commercial | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total collateral dependent loans | $ 626 |
Non-performing Loans and Impa_7
Non-performing Loans and Impaired Loans - Payment Status by Class of Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 3,673,395 | $ 3,609,036 |
Total Past Due | 12,263 | 7,875 |
Total | $ 3,685,658 | $ 3,616,911 |
Current,Percentage of total loans | 99.67% | 99.78% |
Total Past Due, Percentage of Total Loans | 0.33% | 0.22% |
Percentage of total loans | 100.00% | 100.00% |
Carrying Amount | $ 3,658,859 | |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 2,033,507 | $ 2,039,953 |
Total Past Due | 7,466 | 1,830 |
Total | 2,040,973 | 2,041,783 |
Commercial | Owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 499,639 | 515,604 |
Total Past Due | 5,121 | 920 |
Total | 504,760 | 516,524 |
Commercial | Non-owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 989,572 | 972,195 |
Total Past Due | 2,021 | 80 |
Total | 991,593 | 972,275 |
Commercial | Residential spec homes | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 11,533 | 12,925 |
Total Past Due | 135 | 0 |
Total | 11,668 | 12,925 |
Commercial | Development & spec land | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 32,918 | 35,881 |
Total Past Due | 0 | 0 |
Total | 32,918 | 35,881 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 499,845 | 503,348 |
Total Past Due | 189 | 830 |
Total | 500,034 | 504,178 |
Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 970,880 | 910,691 |
Total Past Due | 1,395 | 1,985 |
Total | 972,275 | 912,676 |
Real estate | Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 722,866 | 740,712 |
Total Past Due | 1,395 | 1,985 |
Total | 724,261 | 742,697 |
Real estate | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 24,495 | 19,686 |
Total Past Due | 0 | 0 |
Total | 24,495 | 19,686 |
Real estate | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 223,519 | 150,293 |
Total Past Due | 0 | 0 |
Total | 223,519 | 150,293 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 669,008 | 658,392 |
Total Past Due | 3,402 | 4,060 |
Total | 672,410 | 662,452 |
Consumer | Direct installment | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 39,841 | 40,864 |
Total Past Due | 205 | 185 |
Total | 40,046 | 41,049 |
Consumer | Indirect installment | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 356,702 | 344,478 |
Total Past Due | 2,423 | 2,946 |
Total | 359,125 | 347,424 |
Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 272,465 | 273,050 |
Total Past Due | 774 | 929 |
Total | 273,239 | 273,979 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 11,039 | $ 7,289 |
Total Past Due, Percentage of Total Loans | 0.30% | 0.20% |
30-59 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 6,866 | $ 1,819 |
30-59 Days Past Due | Commercial | Owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,532 | 920 |
30-59 Days Past Due | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,021 | 80 |
30-59 Days Past Due | Commercial | Residential spec homes | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 135 | 0 |
30-59 Days Past Due | Commercial | Development & spec land | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 178 | 819 |
30-59 Days Past Due | Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,395 | 1,984 |
30-59 Days Past Due | Real estate | Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,395 | 1,984 |
30-59 Days Past Due | Real estate | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | Real estate | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
30-59 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,778 | 3,486 |
30-59 Days Past Due | Consumer | Direct installment | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 190 | 175 |
30-59 Days Past Due | Consumer | Indirect installment | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,967 | 2,407 |
30-59 Days Past Due | Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 621 | 904 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 978 | $ 440 |
Total Past Due, Percentage of Total Loans | 0.03% | 0.01% |
60-89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 589 | $ 11 |
60-89 Days Past Due | Commercial | Owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 589 | 0 |
60-89 Days Past Due | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Commercial | Residential spec homes | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Commercial | Development & spec land | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 11 |
60-89 Days Past Due | Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Real estate | Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Real estate | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Real estate | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 389 | 429 |
60-89 Days Past Due | Consumer | Direct installment | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 15 | 5 |
60-89 Days Past Due | Consumer | Indirect installment | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 260 | 404 |
60-89 Days Past Due | Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 114 | 20 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 246 | $ 146 |
Total Past Due, Percentage of Total Loans | 0.01% | 0.01% |
90 Days or Greater Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 11 | $ 0 |
90 Days or Greater Past Due | Commercial | Owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or Greater Past Due | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or Greater Past Due | Commercial | Residential spec homes | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or Greater Past Due | Commercial | Development & spec land | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or Greater Past Due | Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11 | 0 |
90 Days or Greater Past Due | Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
90 Days or Greater Past Due | Real estate | Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
90 Days or Greater Past Due | Real estate | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or Greater Past Due | Real estate | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 Days or Greater Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 235 | 145 |
90 Days or Greater Past Due | Consumer | Direct installment | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 5 |
90 Days or Greater Past Due | Consumer | Indirect installment | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 196 | 135 |
90 Days or Greater Past Due | Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 39 | $ 5 |
Non-performing Loans and Impa_8
Non-performing Loans and Impaired Loans - Loans by Credit Grades (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 3,707,299 | $ 3,634,596 |
Percentage of total loans | 100.00% | |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 65,525 | |
2019 | 288,749 | |
2018 | 273,029 | |
2017 | 339,203 | |
2016 | 236,612 | |
Prior | 594,735 | |
Revolving Loans | 252,549 | |
Total Loans | 2,050,402 | $ 2,047,646 |
Commercial | Owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 14,012 | |
2019 | 65,768 | |
2018 | 70,688 | |
2017 | 65,370 | |
2016 | 63,069 | |
Prior | 191,123 | |
Revolving Loans | 40,871 | |
Total Loans | 510,901 | 519,577 |
Commercial | Non-owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 27,392 | |
2019 | 140,972 | |
2018 | 116,193 | |
2017 | 153,228 | |
2016 | 131,442 | |
Prior | 266,140 | |
Revolving Loans | 157,228 | |
Total Loans | 992,595 | 973,331 |
Commercial | Residential spec homes | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 190 | |
2018 | 0 | |
2017 | 312 | |
2016 | 957 | |
Prior | 2,093 | |
Revolving Loans | 8,116 | |
Total Loans | 11,668 | 12,925 |
Commercial | Development & spec land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 30 | |
2019 | 932 | |
2018 | 2,568 | |
2017 | 4,496 | |
2016 | 1,586 | |
Prior | 14,784 | |
Revolving Loans | 8,595 | |
Total Loans | 32,991 | 35,954 |
Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 24,091 | |
2019 | 80,887 | |
2018 | 83,580 | |
2017 | 115,797 | |
2016 | 39,558 | |
Prior | 120,595 | |
Revolving Loans | 37,739 | |
Total Loans | 502,247 | 505,859 |
Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 29,138 | |
2019 | 74,922 | |
2018 | 139,475 | |
2017 | 130,458 | |
2016 | 97,866 | |
Prior | 261,184 | |
Revolving Loans | 248,005 | |
Total Loans | 981,048 | 920,998 |
Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 29,138 | |
2019 | 74,584 | |
2018 | 139,475 | |
2017 | 130,458 | |
2016 | 97,866 | |
Prior | 261,184 | |
Revolving Loans | 329 | |
Total Loans | 733,034 | 751,019 |
Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 338 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 24,157 | |
Total Loans | 24,495 | 19,686 |
Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 223,519 | |
Total Loans | 223,519 | 150,293 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 55,597 | |
2019 | 201,717 | |
2018 | 164,091 | |
2017 | 103,983 | |
2016 | 48,340 | |
Prior | 96,654 | |
Revolving Loans | 5,467 | |
Total Loans | 675,849 | 665,952 |
Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,774 | |
2019 | 13,707 | |
2018 | 8,702 | |
2017 | 8,268 | |
2016 | 3,476 | |
Prior | 3,020 | |
Revolving Loans | 117 | |
Total Loans | 40,064 | 41,079 |
Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 42,135 | |
2019 | 129,557 | |
2018 | 106,640 | |
2017 | 56,756 | |
2016 | 14,815 | |
Prior | 10,390 | |
Revolving Loans | 0 | |
Total Loans | 360,293 | 348,658 |
Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 10,688 | |
2019 | 58,453 | |
2018 | 48,749 | |
2017 | 38,959 | |
2016 | 30,049 | |
Prior | 83,244 | |
Revolving Loans | 5,350 | |
Total Loans | 275,492 | 276,215 |
Performing | Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 29,138 | |
2019 | 74,317 | |
2018 | 139,327 | |
2017 | 130,086 | |
2016 | 96,489 | |
Prior | 254,575 | |
Revolving Loans | 329 | |
Total Loans | 724,261 | |
Performing | Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 338 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 24,157 | |
Total Loans | 24,495 | |
Performing | Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 223,519 | |
Total Loans | 223,519 | |
Performing | Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,774 | |
2019 | 13,701 | |
2018 | 8,699 | |
2017 | 8,267 | |
2016 | 3,476 | |
Prior | 3,014 | |
Revolving Loans | 115 | |
Total Loans | 40,046 | |
Performing | Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 42,135 | |
2019 | 129,329 | |
2018 | 106,358 | |
2017 | 56,278 | |
2016 | 14,661 | |
Prior | 10,168 | |
Revolving Loans | 0 | |
Total Loans | 358,929 | |
Performing | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 10,688 | |
2019 | 58,444 | |
2018 | 48,683 | |
2017 | 38,878 | |
2016 | 30,030 | |
Prior | 82,155 | |
Revolving Loans | 4,322 | |
Total Loans | 273,200 | |
Non-performing | Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 267 | |
2018 | 148 | |
2017 | 372 | |
2016 | 1,377 | |
Prior | 6,609 | |
Revolving Loans | 0 | |
Total Loans | 8,773 | |
Non-performing | Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Non-performing | Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Non-performing | Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 6 | |
2018 | 3 | |
2017 | 1 | |
2016 | 0 | |
Prior | 6 | |
Revolving Loans | 2 | |
Total Loans | 18 | |
Non-performing | Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 228 | |
2018 | 282 | |
2017 | 478 | |
2016 | 154 | |
Prior | 222 | |
Revolving Loans | 0 | |
Total Loans | 1,364 | |
Non-performing | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 9 | |
2018 | 66 | |
2017 | 81 | |
2016 | 19 | |
Prior | 1,089 | |
Revolving Loans | 1,028 | |
Total Loans | 2,292 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 3,541,122 | |
Percentage of total loans | 97.43% | |
Pass | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 1,968,009 | |
Pass | Commercial | Owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 13,838 | |
2019 | 63,995 | |
2018 | 62,398 | |
2017 | 60,650 | |
2016 | 60,221 | |
Prior | 173,904 | |
Revolving Loans | 36,254 | |
Total Loans | 471,260 | 492,386 |
Pass | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 25,445 | |
2019 | 129,457 | |
2018 | 86,194 | |
2017 | 150,894 | |
2016 | 130,686 | |
Prior | 249,361 | |
Revolving Loans | 156,142 | |
Total Loans | 928,179 | 957,990 |
Pass | Commercial | Residential spec homes | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 190 | |
2018 | 0 | |
2017 | 312 | |
2016 | 957 | |
Prior | 2,093 | |
Revolving Loans | 8,116 | |
Total Loans | 11,668 | 12,925 |
Pass | Commercial | Development & spec land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 30 | |
2019 | 932 | |
2018 | 2,568 | |
2017 | 4,496 | |
2016 | 1,586 | |
Prior | 14,645 | |
Revolving Loans | 8,595 | |
Total Loans | 32,852 | 35,815 |
Pass | Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 23,969 | |
2019 | 71,713 | |
2018 | 70,277 | |
2017 | 108,382 | |
2016 | 36,067 | |
Prior | 102,731 | |
Revolving Loans | 34,331 | |
Total Loans | 447,470 | 468,893 |
Pass | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 911,115 | |
Pass | Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 741,136 | |
Pass | Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 19,686 | |
Pass | Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 150,293 | |
Pass | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 661,998 | |
Pass | Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 41,044 | |
Pass | Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 347,289 | |
Pass | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 273,665 | |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 34,804 | |
Percentage of total loans | 0.96% | |
Special Mention | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 34,804 | |
Special Mention | Commercial | Owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 174 | |
2019 | 291 | |
2018 | 5,276 | |
2017 | 3,896 | |
2016 | 2,348 | |
Prior | 9,114 | |
Revolving Loans | 0 | |
Total Loans | 21,099 | 8,328 |
Special Mention | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,947 | |
2019 | 11,515 | |
2018 | 27,560 | |
2017 | 2,220 | |
2016 | 299 | |
Prior | 11,783 | |
Revolving Loans | 1,086 | |
Total Loans | 56,410 | 7,824 |
Special Mention | Commercial | Residential spec homes | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Special Mention | Commercial | Development & spec land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 139 | |
Revolving Loans | 0 | |
Total Loans | 139 | 0 |
Special Mention | Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 122 | |
2019 | 3,563 | |
2018 | 10,134 | |
2017 | 3,857 | |
2016 | 2,872 | |
Prior | 12,926 | |
Revolving Loans | 1,005 | |
Total Loans | 34,479 | 18,652 |
Special Mention | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Special Mention | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 58,670 | |
Percentage of total loans | 1.61% | |
Substandard | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 44,833 | |
Substandard | Commercial | Owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 1,482 | |
2018 | 3,014 | |
2017 | 824 | |
2016 | 500 | |
Prior | 8,105 | |
Revolving Loans | 4,617 | |
Total Loans | 18,542 | 18,863 |
Substandard | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 2,439 | |
2017 | 114 | |
2016 | 457 | |
Prior | 4,996 | |
Revolving Loans | 0 | |
Total Loans | 8,006 | 7,517 |
Substandard | Commercial | Residential spec homes | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Substandard | Commercial | Development & spec land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 139 |
Substandard | Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 5,611 | |
2018 | 3,169 | |
2017 | 3,558 | |
2016 | 619 | |
Prior | 4,938 | |
Revolving Loans | 2,403 | |
Total Loans | 20,298 | 18,314 |
Substandard | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 9,883 | |
Substandard | Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 9,883 | |
Substandard | Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Substandard | Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Substandard | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,954 | |
Substandard | Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 35 | |
Substandard | Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,369 | |
Substandard | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,550 | |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 0 | |
Percentage of total loans | 0.00% | |
Doubtful | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 0 | |
Doubtful | Commercial | Owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Doubtful | Commercial | Non-owner occupied real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Doubtful | Commercial | Residential spec homes | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Doubtful | Commercial | Development & spec land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | 0 |
Doubtful | Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | $ 0 | 0 |
Doubtful | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Real estate | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Real estate | Residential construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Real estate | Mortgage warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Consumer | Direct installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Consumer | Indirect installment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | |
Doubtful | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 0 |
Repurchase Agreements - Summary
Repurchase Agreements - Summary of Repurchase Agreements Accounted as Secured Borrowings (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | $ 81,955 |
Securities pledged for Repurchase Agreements | 101,120 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 81,955 |
Securities pledged for Repurchase Agreements | 101,120 |
Up to one year | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 0 |
Securities pledged for Repurchase Agreements | 0 |
One to three years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 0 |
Securities pledged for Repurchase Agreements | 0 |
Three to five years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 0 |
Securities pledged for Repurchase Agreements | 0 |
Five to ten years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 0 |
Securities pledged for Repurchase Agreements | 0 |
Beyond ten years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 0 |
Securities pledged for Repurchase Agreements | 0 |
Federal agency collateralized mortgage obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 42,280 |
Federal agency collateralized mortgage obligations | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 42,280 |
Federal agency collateralized mortgage obligations | Up to one year | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency collateralized mortgage obligations | One to three years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency collateralized mortgage obligations | Three to five years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency collateralized mortgage obligations | Five to ten years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency collateralized mortgage obligations | Beyond ten years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency mortgage-backed pools | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 58,840 |
Federal agency mortgage-backed pools | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 58,840 |
Federal agency mortgage-backed pools | Up to one year | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency mortgage-backed pools | One to three years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency mortgage-backed pools | Three to five years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency mortgage-backed pools | Five to ten years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | 0 |
Federal agency mortgage-backed pools | Beyond ten years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
LIBOR period | 3 months | |
Weighted average fixed rate | 4.03% | |
Recorded period of effectiveness of cash flow hedges on net income | 12 months | |
Recorded period of effectiveness of fair value hedges on net income | 12 months | |
Recorded period of effectiveness of fair value of derivatives on net income | 12 months | |
Interest rate swap agreements liability | ||
Derivative [Line Items] | ||
LIBOR period | 1 month | |
Weighted average fixed rate | 2.81% | |
LaPorte | ||
Derivative [Line Items] | ||
LIBOR period | 1 month | |
Weighted average fixed rate | 2.42% | 2.31% |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Notional amount of interest | $ 15.5 | $ 15.5 |
Cash Flow Hedging | Interest rate swap agreements liability | ||
Derivative [Line Items] | ||
Notional amount of interest | 50 | 50 |
Cash Flow Hedging | LaPorte | ||
Derivative [Line Items] | ||
Notional amount of interest | 20 | 30 |
Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional amount of interest | $ 400.5 | $ 361 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | $ 38,806 | $ 11,686 |
Total Liability Derivatives | 47,620 | 15,899 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 37,537 | 11,422 |
Total Liability Derivatives | 47,620 | 15,861 |
Derivatives designated as hedging instruments | Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 37,537 | 11,422 |
Derivatives designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total Liability Derivatives | 47,620 | 15,861 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 1,269 | 264 |
Total Liability Derivatives | 0 | 38 |
Derivatives not designated as hedging instruments | Mortgage loan contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 1,269 | 264 |
Derivatives not designated as hedging instruments | Mortgage loan contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total Liability Derivatives | $ 0 | $ 38 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Instruments on Condensed Consolidated Statements of Income Derivative in Cash Flow Hedging Relationship (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Comprehensive Income on Derivative (Effective Portion) | $ (3,965) | $ (1,106) |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Comprehensive Income on Derivative (Effective Portion) | $ (3,132) | $ (874) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income Derivative in Fair Value Hedging Relationship (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income - loans | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | $ 0 | $ 0 |
Interest income - loans | Fair Value Hedging | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | (26,330) | (4,051) |
Interest income - loans | Fair Value Hedging | Interest Rate Contracts Two | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | 26,330 | 4,051 |
Derivatives not designated as hedging instruments | Other income - gain on sale of loans | Mortgage loan contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | $ 1,043 | $ 257 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Reduced in carrying amount of mortgage servicing rights | $ 322 | $ 14 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 900,476 | $ 834,776 |
U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,413 | |
State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 471,203 | 405,768 |
Federal agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 257,813 | 269,252 |
Federal agency mortgage-backed pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 160,050 | 146,572 |
Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,410 | 11,771 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 900,476 | 834,776 |
Recurring Basis | U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,413 | |
Recurring Basis | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 471,203 | 405,768 |
Recurring Basis | Federal agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 257,813 | 269,252 |
Recurring Basis | Federal agency mortgage-backed pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 160,050 | 146,572 |
Recurring Basis | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,410 | 11,771 |
Recurring Basis | Interest rate swap agreements asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 37,537 | 11,422 |
Recurring Basis | Forward sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 1,269 | 264 |
Recurring Basis | Interest rate swap agreements liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | (47,620) | (15,861) |
Recurring Basis | Commitments to originate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | (38) | |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Federal agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Federal agency mortgage-backed pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap agreements asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap agreements liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to originate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 0 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 900,476 | 834,776 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,413 | |
Recurring Basis | Significant Other Observable Inputs (Level 2) | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 471,203 | 405,768 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Federal agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 257,813 | 269,252 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Federal agency mortgage-backed pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 160,050 | 146,572 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,410 | 11,771 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Interest rate swap agreements asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 37,537 | 11,422 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Forward sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 1,269 | 264 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Interest rate swap agreements liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | (47,620) | (15,861) |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Commitments to originate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | (38) | |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury and federal agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring Basis | Significant Unobservable Inputs (Level 3) | State and municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Federal agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Federal agency mortgage-backed pools | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Interest rate swap agreements asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Forward sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Interest rate swap agreements liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | $ 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Commitments to originate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | $ 0 |
Disclosures about Fair Value _5
Disclosures about Fair Value of Assets and Liabilities - Realized Gains and Losses included in Net Income for Periods in Consolidated Statements of Income (Details) - Non-interest Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | $ 1,043 | $ 257 |
Hedged loans | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | (26,330) | (4,051) |
Interest rate swap agreements liability | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | 26,330 | 4,051 |
Derivative loan commitments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | $ 1,043 | $ 257 |
Disclosures about Fair Value _6
Disclosures about Fair Value of Assets and Liabilities - Other Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | $ 7,959 | |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | $ 6,806 | |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 14,160 | 14,327 |
Fair Value, Nonrecurring | Collateral dependent loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 7,959 | |
Fair Value, Nonrecurring | Impaired loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 6,806 | |
Fair Value, Nonrecurring | Mortgage servicing rights | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 14,160 | 14,327 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateral dependent loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 0 | |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 0 | |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Collateral dependent loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 0 | |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Impaired loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 0 | |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Collateral dependent loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 7,959 | |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | 6,806 | |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair Value | $ 14,160 | $ 14,327 |
Disclosures about Fair Value _7
Disclosures about Fair Value of Assets and Liabilities - Qualitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)consecutivePayment | Jun. 30, 2019 | Dec. 31, 2019USD ($)consecutivePayment | |
Collateral dependent loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ | $ 7,959 | ||
Valuation Technique | Collateral based measurement | ||
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectibility | ||
Impaired loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ | $ 6,806 | ||
Valuation Technique | Collateral based measurement | ||
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectibility | ||
Mortgage servicing rights | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ | $ 14,160 | $ 14,327 | |
Valuation Technique | Discounted cash flows | Discounted cash flows | |
Unobservable Inputs | Discount rate,Constant prepayment rate,Probability of default | Discount rate,Constant prepayment rate,Probability of default | |
Minimum | Collateral dependent loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Discount to reflect current market conditions and ultimate collectability | 0.00% | ||
Minimum | Impaired loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Discount to reflect current market conditions and ultimate collectability | 0.00% | ||
Minimum | Mortgage servicing rights | Measurement Input, Discount Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.086) | (0.087) | |
Minimum | Mortgage servicing rights | Measurement Input, Constant Prepayment Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.106) | (0.102) | |
Minimum | Mortgage servicing rights | Measurement Input, Default Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | 0 | (0.001) | |
Maximum | Collateral dependent loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Discount to reflect current market conditions and ultimate collectability | 100.00% | ||
Maximum | Impaired loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Discount to reflect current market conditions and ultimate collectability | 100.00% | ||
Maximum | Mortgage servicing rights | Measurement Input, Discount Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.087) | (0.090) | |
Maximum | Mortgage servicing rights | Measurement Input, Constant Prepayment Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.204) | (0.198) | |
Maximum | Mortgage servicing rights | Measurement Input, Default Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.024) | (0.029) | |
Weighted Average | Collateral dependent loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Discount to reflect current market conditions and ultimate collectability | 16.80% | ||
Weighted Average | Impaired loans | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Discount to reflect current market conditions and ultimate collectability | 7.40% | ||
Weighted Average | Mortgage servicing rights | Measurement Input, Discount Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.086) | (0.087) | |
Weighted Average | Mortgage servicing rights | Measurement Input, Constant Prepayment Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.127) | (0.122) | |
Weighted Average | Mortgage servicing rights | Measurement Input, Default Rate | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Unobservable inputs | (0.007) | (0.007) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 86,458 | $ 98,831 |
Interest-bearing Deposits in Banks and Other Financial Institutions | 9,239 | 8,455 |
Investment securities, held to maturity | 199,467 | 207,899 |
Loans held for sale | 6,245 | 4,088 |
Stock in FHLB | 22,447 | 22,447 |
Interest receivable | 17,774 | 18,828 |
Liabilities | ||
Non-interest bearing deposits | 709,978 | 709,760 |
Interest bearing deposits | 3,172,293 | 3,221,242 |
Borrowings | 704,613 | 549,741 |
Interest payable | 2,772 | 3,062 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash and due from banks | 86,458 | 98,831 |
Interest-bearing Deposits in Banks and Other Financial Institutions | 0 | 0 |
Investment securities, held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans (excluding loan level hedges), net | 0 | 0 |
Stock in FHLB | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities | ||
Non-interest bearing deposits | 709,978 | 709,760 |
Interest bearing deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing Deposits in Banks and Other Financial Institutions | 9,357 | 8,537 |
Investment securities, held to maturity | 207,324 | 215,147 |
Loans held for sale | 0 | 0 |
Loans (excluding loan level hedges), net | 0 | 0 |
Stock in FHLB | 22,447 | 22,447 |
Interest receivable | 17,774 | 18,828 |
Liabilities | ||
Non-interest bearing deposits | 0 | 0 |
Interest bearing deposits | 3,151,657 | 3,180,768 |
Borrowings | 710,005 | 546,995 |
Subordinated debentures | 52,118 | 51,809 |
Interest payable | 2,772 | 3,062 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing Deposits in Banks and Other Financial Institutions | 0 | 0 |
Investment securities, held to maturity | 0 | 0 |
Loans held for sale | 6,245 | 4,088 |
Loans (excluding loan level hedges), net | 3,694,421 | 3,554,951 |
Stock in FHLB | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities | ||
Non-interest bearing deposits | 0 | 0 |
Interest bearing deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Amount | ||
Assets | ||
Cash and due from banks | 86,458 | 98,831 |
Interest-bearing Deposits in Banks and Other Financial Institutions | 9,239 | 8,455 |
Investment securities, held to maturity | 199,467 | 207,899 |
Loans held for sale | 6,245 | 4,088 |
Loans (excluding loan level hedges), net | 3,658,859 | 3,619,174 |
Stock in FHLB | 22,447 | 22,447 |
Interest receivable | 17,774 | 18,828 |
Liabilities | ||
Non-interest bearing deposits | 709,978 | 709,760 |
Interest bearing deposits | 3,172,293 | 3,221,242 |
Borrowings | 704,613 | 549,741 |
Subordinated debentures | 56,374 | 56,311 |
Interest payable | $ 2,772 | $ 3,062 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax effect | $ (2,476) | $ (1,708) |
Total accumulated other comprehensive income | 9,322 | 6,432 |
Unrealized gain on securities available for sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | 20,340 | 12,687 |
Unamortized loss on securities held to maturity, previously transferred from AFS | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | (137) | (107) |
Unrealized loss on derivative instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | $ (8,405) | $ (4,440) |
Regulatory Capital - Summary of
Regulatory Capital - Summary of Regulatory Capital Requirement (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 551,215 | $ 548,364 |
Total capital (to risk-weighted assets), Actual, Ratio | 13.69% | 13.95% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 322,112 | $ 314,395 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 422,773 | $ 412,644 |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 10.50% | 10.50% |
Tier 1 capital (to average assets), Actual, Amount | $ 514,493 | $ 530,643 |
Tier 1 capital (to average assets), Actual, Ratio | 12.78% | 13.50% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 241,546 | $ 235,796 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 342,190 | $ 334,044 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 8.50% | 8.50% |
Common equity tier 1 capital, Actual Amount | $ 457,000 | $ 473,150 |
Common equity tier 1 capital, Actual Ratio | 11.35% | 12.04% |
Common equity tier 1 capital,For capital adequacy purposes, Amount | $ 181,189 | $ 176,846 |
Common equity tier 1 capital, For capital adequacy purpose, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 281,850 | $ 275,094 |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 7.00% | 7.00% |
Tier 1 capital (to average assets), Actual, Amount | $ 514,493 | $ 530,643 |
Tier 1 capital (to average assets), Actual, Ratio | 10.14% | 10.50% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 202,956 | $ 202,111 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 202,956 | $ 202,111 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 4.00% | 4.00% |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 513,248 | $ 497,227 |
Total capital (to risk-weighted assets), Actual, Ratio | 12.73% | 12.65% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 322,544 | $ 314,452 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 423,339 | $ 412,718 |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 10.50% | 10.50% |
Total capital (to risk-weighted assets), For well capitalized purpose, Amount | $ 403,180 | $ 393,065 |
Total capital (to risk-weighted assets), For well capitalized purpose, Ratio | 10.00% | 10.00% |
Tier 1 capital (to average assets), Actual, Amount | $ 476,526 | $ 479,506 |
Tier 1 capital (to average assets), Actual, Ratio | 11.82% | 12.20% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 241,891 | $ 235,823 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 342,679 | $ 334,082 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 capital (to average assets), For well capitalized purpose, Amount | $ 322,522 | $ 314,430 |
Tier 1 capital (to average assets), For well capitalized purposes, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital, Actual Amount | $ 476,526 | $ 479,506 |
Common equity tier 1 capital, Actual Ratio | 11.82% | 12.20% |
Common equity tier 1 capital,For capital adequacy purposes, Amount | $ 181,419 | $ 176,867 |
Common equity tier 1 capital, For capital adequacy purpose, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 282,207 | $ 275,126 |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 7.00% | 7.00% |
Common equity tier 1 capital, For well capitalized purpose, Amount | $ 262,049 | $ 255,475 |
Common equity tier 1 capital, For well capitalized purposes, Ratio | 6.50% | 6.50% |
Tier 1 capital (to average assets), Actual, Amount | $ 476,526 | $ 479,506 |
Tier 1 capital (to average assets), Actual, Ratio | 9.43% | 9.49% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 202,132 | $ 202,110 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 202,132 | $ 202,110 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For well capitalized purpose, Amount | $ 252,665 | $ 252,638 |
Tier 1 capital (to average assets), For well capitalized purposes, Ratio | 5.00% | 5.00% |