Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-20827 | |
Entity Registrant Name | CASS INFORMATION SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 43-1265338 | |
Entity Address, Address Line One | 12444 Powerscourt Drive | |
Entity Address, Address Line Two | Suite 550 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63131 | |
City Area Code | 314 | |
Local Phone Number | 506-5500 | |
Title of 12(b) Security | Common stock, par value $.50 | |
Trading Symbol | CASS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,626,141 | |
Entity Central Index Key | 0000708781 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 5,755 | $ 20,908 |
Short-term investments | 217,972 | 351,560 |
Cash and cash equivalents | 223,727 | 372,468 |
Securities available-for-sale, at fair value | 540,802 | 627,117 |
Loans | 1,061,991 | 1,014,318 |
Less: Allowance for credit losses | 13,634 | 13,089 |
Loans, net | 1,048,357 | 1,001,229 |
Payments in advance of funding | 214,581 | 198,861 |
Premises and equipment, net | 33,469 | 30,093 |
Investment in bank-owned life insurance | 49,840 | 49,159 |
Goodwill | 17,309 | 17,309 |
Other intangible assets, net | 2,972 | 3,345 |
Receivables from Customers | 78,407 | 110,651 |
Other assets | 73,132 | 68,390 |
Total assets | 2,282,596 | 2,478,622 |
Deposits: | ||
Noninterest-bearing | 372,031 | 524,359 |
Interest-bearing | 640,315 | 616,455 |
Total deposits | 1,012,346 | 1,140,814 |
Accounts and drafts payable | 996,832 | 1,071,369 |
Other liabilities | 43,493 | 36,630 |
Total liabilities | 2,052,671 | 2,248,813 |
Shareholders’ Equity: | ||
Preferred stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued | 0 | 0 |
Common Stock, Value, Outstanding | 7,753 | 7,753 |
Additional paid-in capital | 204,128 | 208,007 |
Retained earnings | 149,236 | 145,782 |
Common shares in treasury, at cost (1,860,524 shares at June 30, 2024 and 1,923,397 shares at December 31, 2023) | 81,554 | 84,264 |
Accumulated other comprehensive loss | (49,638) | (47,469) |
Total shareholders’ equity | 229,925 | 229,809 |
Total liabilities and shareholders’ equity | $ 2,282,596 | $ 2,478,622 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par or stated value per share (in dollars per share) | $ 0.50 | $ 0.50 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par or stated value per share (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares, issued (in shares) | 15,505,772 | 15,505,772 |
Common stock, shares, outstanding (in shares) | 13,645,248 | 13,582,375 |
Treasury stock shares (in shares) | 1,860,524 | 1,923,397 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fee Revenue and Other Income: | ||||
Fee revenues | $ 32,050 | $ 31,301 | $ 64,361 | $ 62,337 |
Other | 1,329 | 1,025 | 2,596 | 2,360 |
Total fee revenue and other income | 33,060 | 32,073 | 66,357 | 64,180 |
Interest Income: | ||||
Interest and fees on loans | 13,592 | 12,931 | 26,368 | 25,166 |
Interest and dividends on securities: | ||||
Taxable | 3,485 | 3,688 | 7,004 | 7,274 |
Exempt from federal income taxes | 898 | 989 | 1,816 | 2,197 |
Interest on federal funds sold and other short-term investments | 3,267 | 2,100 | 7,708 | 5,213 |
Total interest income | 21,242 | 19,708 | 42,896 | 39,850 |
Interest Expense: | ||||
Interest on deposits | 5,312 | 3,651 | 10,490 | 6,822 |
Interest on short-term borrowings | 0 | 43 | 0 | 116 |
Total interest expense | 5,312 | 3,694 | 10,490 | 6,938 |
Net interest income | 15,930 | 16,014 | 32,406 | 32,912 |
Provision for (release of) credit losses | 400 | (120) | 495 | (460) |
Net interest income after provision for (release of) credit losses | 15,530 | 16,134 | 31,911 | 33,372 |
Total net revenue | 48,590 | 48,207 | 98,268 | 97,552 |
Operating Expense: | ||||
Personnel | 29,857 | 29,432 | 60,464 | 59,458 |
Occupancy | 826 | 907 | 1,687 | 1,762 |
Equipment | 1,988 | 1,749 | 3,869 | 3,399 |
Amortization of intangible assets | 182 | 195 | 373 | 390 |
Other operating expense | 9,940 | 7,056 | 17,071 | 14,702 |
Total operating expense | 42,793 | 39,339 | 83,464 | 79,711 |
Income before income tax expense | 5,797 | 8,868 | 14,804 | 17,841 |
Income tax expense | 1,313 | 1,730 | 3,168 | 3,586 |
Net income | $ 4,484 | $ 7,138 | $ 11,636 | $ 14,255 |
Basic earnings per share (in dollars per share) | $ 0.33 | $ 0.53 | $ 0.86 | $ 1.05 |
Diluted earnings per share (in dollars per share) | $ 0.32 | $ 0.52 | $ 0.84 | $ 1.03 |
Processing fees | ||||
Fee Revenue and Other Income: | ||||
Fee revenues | $ 21,103 | $ 19,386 | $ 42,356 | $ 38,899 |
Financial fees | ||||
Fee Revenue and Other Income: | ||||
Fee revenues | $ 10,628 | $ 11,662 | $ 21,405 | $ 22,921 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Comprehensive Income | ||||
Net income | $ 4,484 | $ 7,138 | $ 11,636 | $ 14,255 |
Other comprehensive income: | ||||
Net unrealized (loss) gain on securities available-for-sale | (590) | (5,627) | (2,686) | 3,554 |
Tax effect | 140 | 1,339 | 639 | (846) |
Reclassification adjustments for losses included in net income | 13 | 199 | 13 | 160 |
Tax effect | (3) | (47) | (3) | (38) |
Foreign currency translation adjustments | (42) | 12 | (132) | 97 |
Total comprehensive income | $ 4,002 | $ 3,014 | $ 9,467 | $ 17,182 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities: | ||
Net income | $ 11,636 | $ 14,255 |
Amortization of intangible assets | 373 | 390 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Accretion (Amortization) of Discounts and Premiums, Investments | 1,982 | (2,287) |
Depreciation | 2,324 | 2,028 |
Losses on sales of securities | 13 | 160 |
Stock-based compensation expense | 1,700 | 2,859 |
Provision for (release of) credit losses | 495 | (460) |
Increase (decrease) in current income tax liability | 598 | (1,036) |
Increase in pension liability | 423 | 224 |
Increase in accounts receivable | (3,278) | (5,446) |
Other operating activities, net | 4,252 | 1,712 |
Net cash provided by operating activities | 20,518 | 16,973 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of securities available-for-sale | 24,985 | 111,053 |
Proceeds from maturities of securities available-for-sale | 103,621 | 22,501 |
Purchase of securities available-for-sale | (46,959) | (15,332) |
Net (increase) decrease in loans | (47,674) | 27,058 |
(Increase) decrease in payments in advance of funding | (15,720) | 24,595 |
Purchases of premises and equipment, net | (5,700) | (6,390) |
Net cash provided by investing activities | 12,553 | 163,485 |
Net (decrease) increase in noninterest-bearing demand deposits | (152,328) | 36,350 |
Cash Flows From Financing Activities: | ||
Net (Increase) Decrease In Accounts and Drafts Receivable From Customers | 32,244 | 12,152 |
Net (decrease) increase in noninterest-bearing demand deposits | (152,328) | 36,350 |
Net increase (decrease) in interest-bearing demand and savings deposits | 22,681 | (122,399) |
Net increase in time deposits | 1,179 | 20,266 |
Net decrease in accounts and drafts receivable from customers | (74,537) | (46,076) |
Cash dividends paid | (8,182) | (7,941) |
Purchase of common shares for treasury | (1,054) | (2,377) |
Other financing activities, net | (1,815) | (902) |
Net cash used in financing activities | (181,812) | (110,927) |
Net (decrease) increase in cash and cash equivalents | (148,741) | 69,531 |
Cash and cash equivalents at beginning of period | 372,468 | 200,942 |
Cash and cash equivalents at end of period | 223,727 | 270,473 |
Supplemental information: | ||
Cash paid for interest | 10,571 | 6,697 |
Cash paid for income taxes | $ 3,035 | $ 4,598 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2022 | $ 206,325 | $ 7,753 | $ 207,422 | $ 131,682 | $ (81,211) | $ (59,321) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,255 | 14,255 | ||||
Cash dividends | (7,941) | (7,941) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (786) | (3,327) | 2,541 | |||
Exercise of SARs | (116) | (238) | 122 | |||
Stock-based compensation expense | 2,859 | 2,877 | ||||
Purchase of common shares | (2,377) | (2,377) | ||||
Other comprehensive income (loss) | 2,927 | 2,927 | ||||
Ending balance at Jun. 30, 2023 | 215,146 | 7,753 | 206,734 | 137,996 | (80,943) | (56,394) |
Beginning balance at Mar. 31, 2023 | 217,500 | 7,753 | 206,614 | 134,822 | (79,419) | (52,270) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,138 | 7,138 | ||||
Cash dividends | (3,964) | (3,964) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | 64 | (807) | 871 | |||
Stock-based compensation expense | 909 | 927 | ||||
Purchase of common shares | (2,377) | (2,377) | ||||
Other comprehensive income (loss) | (4,124) | (4,124) | ||||
Ending balance at Jun. 30, 2023 | 215,146 | 7,753 | 206,734 | 137,996 | (80,943) | (56,394) |
Beginning balance at Dec. 31, 2023 | 229,809 | 7,753 | 208,007 | 145,782 | (84,264) | (47,469) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,636 | 11,636 | ||||
Cash dividends | (8,182) | (8,182) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (1,815) | (5,611) | 3,796 | |||
Stock-based compensation expense | 1,700 | 1,732 | ||||
Purchase of common shares | (1,054) | (1,054) | ||||
Other comprehensive income (loss) | (2,169) | (2,169) | ||||
Ending balance at Jun. 30, 2024 | 229,925 | 7,753 | 204,128 | 149,236 | (81,554) | (49,638) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted Stock Award, Forfeitures | (32) | |||||
Beginning balance at Mar. 31, 2024 | 229,487 | 7,753 | 204,361 | 148,845 | (82,316) | (49,156) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,484 | 4,484 | ||||
Cash dividends | (4,093) | (4,093) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | 55 | (707) | 762 | |||
Stock-based compensation expense | 474 | 474 | ||||
Other comprehensive income (loss) | (482) | (482) | ||||
Ending balance at Jun. 30, 2024 | $ 229,925 | $ 7,753 | $ 204,128 | $ 149,236 | (81,554) | $ (49,638) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted Stock Award, Forfeitures | $ 0 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in dollars per share) | $ 0.30 | $ 0.29 | $ 0.60 | $ 0.58 |
Issuance of common shares pursuant to stock-based compensation plan, net (in shares) | 17,610 | 19,687 | 123,296 | 81,221 |
Purchase of common shares (in shares) | 63,305 | 23,271 | 63,305 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Certain amounts in prior-period financial statements have been reclassified to conform to the current period’s presentation. Such reclassifications have no effect on previously reported net income or shareholders’ equity. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"). |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The Company accounts for intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Goodwill and Other Intangible Assets , which requires that intangibles with indefinite useful lives be tested annually for impairment, or when management deems there is a triggering event, and those with finite useful lives be amortized over their useful lives. Details of the Company’s intangible assets are as follows: June 30, 2024 December 31, 2023 (In thousands) Gross Carrying Accumulated Gross Carrying Accumulated Assets eligible for amortization: Customer lists $ 6,470 $ (4,979) $ 6,470 $ (4,851) Patents 72 (38) 72 (36) Software 3,212 (2,146) 3,212 (1,933) Trade name 373 (84) 373 (70) Other 500 (408) 500 (392) Unamortized intangible assets: Goodwill 17,309 — 17,309 — Total intangible assets $ 27,936 $ (7,655) $ 27,936 $ (7,282) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period. The calculations of basic and diluted earnings per share are as follows: (In thousands except share and per share data) Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic Net income $ 4,484 $ 7,138 $ 11,636 $ 14,255 Weighted-average common shares outstanding 13,538,283 13,553,346 13,534,256 13,576,281 Basic earnings per share $ 0.33 $ 0.53 $ 0.86 $ 1.05 Diluted Net income $ 4,484 $ 7,138 $ 11,636 $ 14,255 Weighted-average common shares outstanding 13,538,283 13,553,346 13,534,256 13,576,281 Effect of dilutive restricted stock and stock appreciation rights 283,793 300,696 269,421 282,412 Weighted-average common shares outstanding assuming dilution 13,822,076 13,854,042 13,803,677 13,858,693 Diluted earnings per share $ 0.32 $ 0.52 $ 0.84 $ 1.03 |
Stock Repurchases
Stock Repurchases | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stock Repurchases | Stock Repurchases The Company maintains a treasury stock buyback program pursuant to which, in October 2023, the Board of Directors authorized the repurchase of up to 500,000 shares of the Company’s common stock with no expiration date. As of June 30, 2024, the Company had 462,765 shares remaining available for repurchase under the program. The Company repurchased 0 and 23,271 shares during the three and six-month periods ended June 30, 2024, respectively and 63,305 shares for both the three and six-month periods ended June 30, 2023, respectively. Repurchases may be made in the open market or through negotiated transactions from time to time depending on market conditions. |
Industry Segment Information
Industry Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Industry Segment Information The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. In addition, this segment provides church management software and on-line generosity services primarily for faith-based ministries. The Banking Services segment provides banking services primarily to privately held businesses, franchise restaurants, and faith-based ministries, as well as supporting the banking needs of the Information Services segment. The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s 2023 Form 10-K. Management evaluates segment performance based on pre-tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value. Substantially all revenue originates from, and all long-lived assets are located within, the United States and no revenue from any customer of any segment exceeds 10% of the Company’s consolidated revenue. Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Banking Services interest income is determined by actual interest income on loans minus actual interest expense paid on deposits plus/minus an allocation for interest income or expense dependent on the remaining available liquidity of the segment. Information Services interest income is determined by multiplying available liquidity by actual yields on short-term investments and investment securities. Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other. Summarized information about the Company’s operations in each industry segment is as follows: (In thousands) Information Banking Corporate, Total Three Months Ended June 30, 2024: Fee income $ 32,063 $ 665 $ 332 $ 33,060 Interest income 9,752 14,680 (3,190) 21,242 Interest expense 314 8,573 (3,575) 5,312 Intersegment income (expense) (1,016) 1,016 — — Pre-tax income 3,121 1,960 716 5,797 Goodwill 17,173 136 — 17,309 Other intangible assets, net 2,972 — — 2,972 Total assets 1,420,254 1,130,548 (268,206) 2,282,596 Average funding sources $ 1,256,457 $ 785,893 $ — $ 2,042,350 Three Months Ended June 30, 2023: Fee income $ 31,360 $ 626 $ 87 $ 32,073 Interest income 9,463 13,829 (3,584) 19,708 Interest expense 69 7,340 (3,715) 3,694 Intersegment income (expense) (1,062) 1,062 — — Pre-tax income 5,873 2,776 219 8,868 Goodwill 17,173 136 — 17,309 Other intangible assets, net 3,735 — — 3,735 Total assets 1,602,932 1,150,293 (282,429) 2,470,796 Average funding sources $ 1,327,251 $ 784,068 $ — $ 2,111,319 Six Months Ended June 30, 2024: Fee income $ 64,384 $ 1,305 $ 668 $ 66,357 Interest income 19,943 28,564 (5,611) 42,896 Interest expense 912 16,463 (6,885) 10,490 Intersegment income (expense) (2,054) 2,054 — — Pre-tax income 9,085 3,778 1,941 14,804 Goodwill 17,173 136 — 17,309 Other intangible assets, net 2,972 — — 2,972 Total assets 1,420,254 1,130,548 (268,206) 2,282,596 Average funding sources $ 1,286,036 $ 792,816 $ — $ 2,078,852 Six Months Ended June 30, 2023: Fee income $ 62,437 $ 1,337 $ 406 $ 64,180 Interest income 18,910 27,006 (6,066) 39,850 Interest expense 167 12,773 (6,002) 6,938 Intersegment income (expense) (1,976) 1,976 — — Pre-tax income 10,864 6,635 342 17,841 Goodwill 17,173 136 — 17,309 Other intangible assets, net 3,735 — — 3,735 Total assets 1,602,932 1,150,293 (282,429) 2,470,796 Average funding sources $ 1,342,061 $ 833,207 $ — $ 2,175,268 |
Loans by Type
Loans by Type | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans by Type | Loans by Type A summary of loans is as follows: (In thousands) June 30, December 31, Commercial and industrial $ 548,625 $ 498,502 Real estate: Commercial: Mortgage 121,701 118,371 Construction 9,488 8,233 Faith-based: Mortgage 371,313 381,368 Construction 10,861 7,790 Other 3 54 Total loans $ 1,061,991 $ 1,014,318 The following table presents the aging of loans past due by category at June 30, 2024 and December 31, 2023: Performing Nonperforming (In thousands) Current 30-59 60-89 90 Non- Total June 30, 2024 Commercial and industrial $ 548,625 $ — $ — $ — $ — $ 548,625 Real estate Commercial: Mortgage 121,701 — — — — 121,701 Construction 9,488 — — — — 9,488 Faith-based: Mortgage 371,313 — — — — 371,313 Construction 10,861 — — — — 10,861 Other 3 — — — — 3 Total $ 1,061,991 $ — $ — $ — $ — $ 1,061,991 December 31, 2023 Commercial and industrial $ 498,502 $ — $ — $ — $ — $ 498,502 Real estate Commercial: Mortgage 118,371 — — — — 118,371 Construction 8,233 — — — — 8,233 Faith-based: Mortgage 381,368 — — — — 381,368 Construction 7,790 — — — — 7,790 Other 54 — — — — 54 Total $ 1,014,318 $ — $ — $ — $ — $ 1,014,318 The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2024 and December 31, 2023: (In thousands) Loans Subject to Normal Monitoring 1 Performing Loans Subject to Special Monitoring 2 Nonperforming Loans Subject to Special Monitoring 2 Total Loans June 30, 2024 Commercial and industrial $ 548,625 $ — $ — $ 548,625 Real estate Commercial: Mortgage 119,223 2,478 — 121,701 Construction 9,488 — — 9,488 Faith-based: Mortgage 356,353 14,960 — 371,313 Construction 10,861 — — 10,861 Other 3 — — 3 Total $ 1,044,553 $ 17,438 $ — $ 1,061,991 December 31, 2023 Commercial and industrial $ 498,502 $ — $ — $ 498,502 Real estate Commercial: Mortgage 118,371 — — 118,371 Construction 8,233 — — 8,233 Faith-based: Mortgage 375,865 5,503 — 381,368 Construction 7,790 — — 7,790 Other 54 — — 54 Total $ 1,008,815 $ 5,503 $ — $ 1,014,318 1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations. 2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things. There were no loans modified during the six-month period ended June 30, 2024. The following table shows the amortized cost of loans that were both experiencing financial difficulty and modified during the six-month period ended June 30, 2023, segregated by category and type of modification. (In thousands) Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Percentage of Total Loans Held for Investment Commercial and industrial $ — $ 10,952 $ — $ — 2.05 % Total $ — $ 10,952 $ — $ — 1.04 % There were two loans modified during the six-month period ended June 30, 2023. The terms were extended by periods of two and three years and there was not an interest rate reduction associated with the modifications. The following table shows the payment status of loans that have been modified to borrowers experiencing financial difficulty in the last twelve months: (In thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Commercial and industrial $ 11,333 $ — $ — $ — $ — Total $ 11,333 $ — $ — $ — $ — At June 30, 2024, the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no modified loans that had a payment default during the six-month periods ended June 30, 2024 or 2023 and that had been modified due to the borrower experiencing financial difficulty within the 12 previous months preceding the default. Upon the Company's determination that a modified loan has subsequently been deemed uncollectible, the loan is written off. There were no loans written off during the six-month periods ended June 30, 2024 or 2023. The Company had no loans evaluated for expected credit losses on an individual basis as of June 30, 2024, and December 31, 2023, respectively. There were no foreclosed loans recorded as other real estate owned as of June 30, 2024 or December 31, 2023. A summary of the activity in the allowance for credit losses (“ACL”) by category for the six-month periods ended June 30, 2024 and year-ended December 31, 2023 is as follows: (In thousands) C&I CRE Faith-based Construction Total Balance at December 31, 2022 $ 5,978 $ 940 $ 6,437 $ 184 $ 13,539 (Release of) provision for credit losses (566) 153 39 (76) (450) Balance at December 31, 2023 $ 5,412 $ 1,093 $ 6,476 $ 108 $ 13,089 Provision for (release of) credit losses (1) 502 23 (11) 31 545 Balance at June 30, 2024 $ 5,914 $ 1,116 $ 6,465 $ 139 $ 13,634 (1) For the six-month period ended June 30, 2024 and year-ended December 31, 2023, there was a release of credit losses of $50,000 and $100,000, respectively, for unfunded commitments. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is party to activities that contain credit, market and operational risks that are not reflected in whole or in part in the Company’s consolidated financial statements. As more fully described in the Form 10-K, such activities include traditional off-balance sheet credit-related financial instruments. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. The Company’s maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, commercial letters of credit and standby letters of credit is represented by the contractual amounts of those instruments. Commitments to extend credit and letters of credit are subject to the same underwriting standards as those financial instruments included on the consolidated balance sheets. An allowance for unfunded commitments of $82,000 and $132,000 had been recorded at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, the balances of unfunded commitments, standby and commercial letters of credit were $251.4 million, $13.7 million, and $729,000, respectively. Since some of the financial instruments may expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On February 16, 2023, the Board of Directors adopted the 2023 Omnibus Stock and Performance Compensation Plan (the "2023 Omnibus Plan"), which was approved by the Company's shareholders on April 18, 2023. The 2023 Omnibus Plan permits the issuance of up to 1.0 million shares of the Company’s common stock in the form of stock options, SARs, restricted stock, restricted stock units, phantom stock, and performance awards. During the six-month period ended June 30, 2024, 54,462 time-based restricted shares and 51,261 performance-based restricted shares were granted under the 2023 Omnibus Plan. Stock-based compensation expense was $474,000 and $1.7 million for the three and six - month periods ended June 30, 2024, respectively, and $909,000 and $2.9 million for the three and six-month periods ended June 30, 2023, respectively. Restricted Stock Restricted shares granted to Company employees are amortized to expense over a three-year cliff vesting period, or until vesting occurs upon retirement. Restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period, with the exception of those shares granted in lieu of cash payments for retainer fees which are expensed in the period earned. As of June 30, 2024, the total unrecognized compensation expense related to non-vested restricted shares was $2.6 million, and the related weighted-average period over which it is expected to be recognized is approximately 0.72 years. Following is a summary of the activity of the Company's restricted stock for the six-month period ended June 30, 2024, with total shares and weighted-average fair value: Six Months Ended Shares Fair Value Balance at December 31, 2023 237,780 $ 42.17 Granted 54,462 44.08 Vested (39,764) 32.78 Forfeitures (710) 43.70 Balance at June 30, 2024 251,768 $ 42.87 Performance-Based Restricted Stock The Company has granted three-year performance-based restricted stock (“PBRS”) awards which are contingent upon the Company’s achievement of pre-established financial goals over a three-year cliff vest period. The number of shares issued ranges from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. Following is a summary of the activity of the PBRS for the six-month period ended June 30, 2024, based on 100% of target value: Six Months Ended Shares Fair Value Balance at December 31, 2023 159,073 $ 42.74 Granted 51,261 44.29 Vested (50,840) 40.74 Forfeitures (1,066) 43.70 Balance at June 30, 2024 158,428 $ 43.87 The PBRS that vested during the six-month period ended June 30, 2024 were based on the Company's achievement of 135.4% of target financial goals for the 2021-2023 performance period, resulting in the issuance of 68,834 shares of common stock. The outstanding PBRS at June 30, 2024 will vest at scheduled vesting dates and the actual number of shares of common stock issued will range from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the respective three-year performance period. SARs There were no SARs granted and no expense recognized during the six-month period ended June 30, 2024. Following is a summary of the activity of the Company’s SARs program for the six-month period ended June 30, 2024: Shares Weighted- Average Aggregate Intrinsic Value (In thousands) Balance at December 31, 2023 30,409 $ 46.70 0.08 $ — Forfeited (30,409) 46.70 0.00 — Exercisable at June 30, 2024 — $ — 0.00 $ — |
Defined Pension Plans
Defined Pension Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Defined Pension Plans | Defined Pension Plans The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Plan’s benefits were frozen for all remaining participants as of February 28, 2021. On July 16, 2024, the Company approved an Amendment providing for the termination of the Plan. The Company expects to record one-time termination expenses of approximately $5.0 million through operating expense related to the termination of the Plan. The expense related to the termination is expected to be incurred during the fourth quarter of 2024 and first quarter of 2025 as the Plan's liabilities are settled via lump sum payments or annuity purchases. The following table represents the components of net periodic pension cost: (In thousands) Estimated 2024 Actual 2023 Interest cost on projected benefit obligations $ 4,291 $ 4,314 Expected return on plan assets (3,512) (3,735) Net amortization — 154 Net periodic pension cost $ 779 $ 733 The Company recorded net periodic pension cost of $194,000 and $389,000 for the three and six-month periods ended June 30, 2024, and $99,000 and $199,000 for the three and six-month periods June 30, 2023. The Company made no contributions to the Plan during the six-month period ended June 30, 2024 and does not expect to make any contributions for the remainder of 2024. In addition to the above Plan, the Company has an unfunded supplemental executive retirement plan (the "SERP"). There are no current employees earning benefits and therefore, there is no service cost associated with the SERP. The following table represents the components of the net periodic cost for the SERP: (In thousands) Estimated 2024 Actual 2023 Interest cost on projected benefit obligation $ 451 $ 472 Net periodic pension cost $ 451 $ 472 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 22.6% and 21.4% for the three and six-month periods ended June 30, 2024, and was 19.5% and 20.1% for the three and six-month periods ended June 30, 2023, respectively. The effective tax rate for all periods differs from the statutory rate of 21% primarily due to state related taxes partially offset by the tax-exempt interest received from municipal bonds and bank-owned life insurance, among other factors. |
Investment in Securities
Investment in Securities | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Securities | Investment in Securities Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: June 30, 2024 (In thousands) Amortized Gross Gross Fair State and political subdivisions $ 220,717 $ 8 $ (18,427) $ 202,298 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 212,270 — (32,447) 179,823 Corporate bonds 118,986 17 (9,065) 109,938 Treasury securities 9,992 — (19) 9,973 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 39,310 — (540) 38,770 Total $ 601,275 $ 25 $ (60,498) $ 540,802 December 31, 2023 (In thousands) Amortized Gross Gross Fair Value State and political subdivisions $ 235,297 $ 4 $ (16,266) $ 219,035 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 188,307 — (30,508) 157,799 Corporate bonds 111,109 — (8,769) 102,340 Treasury securities 109,836 — (1,115) 108,721 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 40,368 — (1,146) 39,222 Total $ 684,917 $ 4 $ (57,804) $ 627,117 The fair values of securities with unrealized losses are as follows: June 30, 2024 Less than 12 months 12 months or more Total (In thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized State and political subdivisions $ 4,040 $ 13 $ 189,863 $ 18,414 $ 193,903 $ 18,427 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 36,831 186 142,992 32,261 179,823 32,447 Corporate bonds 17,653 350 82,255 8,715 99,908 9,065 Treasury securities — — 9,973 19 9,973 19 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises — — 38,770 540 38,770 540 Total $ 58,524 $ 549 $ 463,853 $ 59,949 $ 522,377 $ 60,498 December 31, 2023 Less than 12 months 12 months or more Total (In thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized State and political subdivisions $ 63,198 $ 220 $ 152,854 $ 16,046 $ 216,052 $ 16,266 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises — — 157,799 30,508 157,799 30,508 Corporate bonds 19,545 455 82,795 8,314 102,340 8,769 Treasury securities — — 108,721 1,115 108,721 1,115 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises — — 39,222 1,146 39,222 1,146 Total $ 82,743 $ 675 $ 541,391 $ 57,129 $ 624,134 $ 57,804 There were 260 securities, or 95.6% (244 of which for greater than 12 months), in an unrealized loss position as of June 30, 2024. The unrealized losses at June 30, 2024 were primarily attributable to changes in market interest rates after the securities were purchased. The Company does not currently intend to sell, and based on current conditions, the Company does not believe it will be required to sell these available-for-sale securities before the recovery of the amortized cost basis, which may be the maturity dates of the securities. Therefore, the unrealized losses are recorded in accumulated other comprehensive loss. There were 275 securities, or 98.9% (210 of which for greater than 12 months), in an unrealized loss position as of December 31, 2023. At June 30, 2024 and December 31, 2023, the Company had not recorded an allowance for credit losses on securities. The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. June 30, 2024 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 44,510 $ 44,388 Due after 1 year through 5 years 132,633 130,220 Due after 5 years through 10 years 205,504 179,664 Due after 10 years 218,628 186,530 Total $ 601,275 $ 540,802 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: June 30, 2024 December 31, 2023 (In thousands) Carrying Fair Value Carrying Fair Value Balance sheet assets: Cash and cash equivalents $ 223,727 $ 223,727 $ 372,468 $ 372,468 Investment securities 540,802 540,802 627,117 627,117 Loans, net 1,048,357 1,017,800 1,001,229 962,223 Accrued interest receivable 8,825 8,825 8,450 8,450 Total $ 1,821,711 $ 1,791,154 $ 2,009,264 $ 1,970,258 Balance sheet liabilities: Deposits $ 1,012,346 $ 1,012,346 $ 1,140,814 $ 1,140,814 Accounts and drafts payable 996,832 996,832 1,071,369 1,071,369 Accrued interest payable 554 554 635 635 Total $ 2,009,732 $ 2,009,732 $ 2,212,818 $ 2,212,818 The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents - The carrying amount approximates fair value. Investment in Securities - The fair value is measured on a recurring basis using Level 2 valuations. Refer to Note 11, “Investment in Securities,” for fair value and unrealized gains and losses by investment type. Loans - The fair value is estimated using present values of future cash flows discounted at risk-adjusted interest rates for each loan category designated by management and is therefore a Level 3 valuation. Management believes that the risk factor embedded in the interest rates along with the allowance for credit losses result in a fair valuation. Accrued Interest Receivable - The carrying amount approximates fair value. Deposits - The fair value of demand deposits, savings deposits and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities and therefore, is a Level 2 valuation. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market or the benefit derived from the customer relationship inherent in existing deposits. Accounts and Drafts Payable - The carrying amount approximates fair value. Accrued Interest Payable - The carrying amount approximates fair value. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customers | Revenue from Contracts with Customers Revenue is recognized as the obligation to the customer is satisfied. The following is detail of the Company’s revenue from contracts with clients. Processing fees – The Company earns fees on a per-item or monthly basis for the invoice processing services rendered on behalf of customers. Per-item fees are recognized at the point in time when the performance obligation is satisfied. Monthly fees are earned over the course of a month, representing the period over which the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components. Financial fees – The Company earns fees on a transaction level basis for invoice payment services when making customer payments. Fees are recognized at the point in time when the payment transactions are made, which is when the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components. Bank service fees – Revenue from service fees consists of service charges and fees on deposit accounts under depository agreements with customers to provide access to deposited funds. Service charges on deposit accounts are transaction-based fees that are recognized at the point in time when the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components. The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope for the periods ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Fee revenue and other income In-scope of FASB ASC 606 Processing fees $ 21,103 $ 19,386 42,356 $ 38,899 Financial fees 10,628 11,662 21,405 22,921 Information services payment and processing revenue 31,731 31,048 63,761 61,820 Bank service fees 319 253 600 517 Fee revenue (in-scope of FASB ASC 606) 32,050 31,301 64,361 62,337 Other income (out-of-scope of FASB ASC 606) 1,010 772 1,996 1,843 Total fee revenue and other income $ 33,060 $ 32,073 $ 66,357 $ 64,180 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain premises under operating leases. As of June 30, 2024, the Company had lease liabilities of $8.0 million and right-of-use assets of $7.6 million. Lease liabilities and right-of-use assets are reflected in other liabilities other assets and six-month periods ended June 30, 2024, operating lease cost was $333,000 and $674,000, short-term lease cost was $93,000 and $174,000, and there was no variable lease cost. At June 30, 2024, the weighted-average remaining lease term for the operating leases was 6.9 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.56%. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. See the Company’s 2023 Form 10-K for information regarding these commitments. A maturity analysis of operating lease liabilities and undiscounted cash flows as of June 30, 2024 is as follows: (In thousands) June 30, Lease payments due Less than 1 year $ 1,333 1-2 years 1,358 2-3 years 1,343 3-4 years 1,370 4-5 years 1,259 Over 5 years 2,272 Total undiscounted cash flows 8,935 Discount on cash flows 972 Total lease liability $ 7,963 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the six-month period ended June 30, 2024. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | In accordance with FASB ASC 855, Subsequent Events , the Company has evaluated subsequent events after the consolidated balance sheet date of June 30, 2024. There were no events identified that would require additional disclosures to prevent the Company’s unaudited consolidated financial statements from being misleading. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Details of the Company’s intangible assets are as follows: June 30, 2024 December 31, 2023 (In thousands) Gross Carrying Accumulated Gross Carrying Accumulated Assets eligible for amortization: Customer lists $ 6,470 $ (4,979) $ 6,470 $ (4,851) Patents 72 (38) 72 (36) Software 3,212 (2,146) 3,212 (1,933) Trade name 373 (84) 373 (70) Other 500 (408) 500 (392) Unamortized intangible assets: Goodwill 17,309 — 17,309 — Total intangible assets $ 27,936 $ (7,655) $ 27,936 $ (7,282) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted earnings per share are as follows: (In thousands except share and per share data) Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic Net income $ 4,484 $ 7,138 $ 11,636 $ 14,255 Weighted-average common shares outstanding 13,538,283 13,553,346 13,534,256 13,576,281 Basic earnings per share $ 0.33 $ 0.53 $ 0.86 $ 1.05 Diluted Net income $ 4,484 $ 7,138 $ 11,636 $ 14,255 Weighted-average common shares outstanding 13,538,283 13,553,346 13,534,256 13,576,281 Effect of dilutive restricted stock and stock appreciation rights 283,793 300,696 269,421 282,412 Weighted-average common shares outstanding assuming dilution 13,822,076 13,854,042 13,803,677 13,858,693 Diluted earnings per share $ 0.32 $ 0.52 $ 0.84 $ 1.03 |
Industry Segment Information (T
Industry Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized information about the Company’s operations in each industry segment is as follows: (In thousands) Information Banking Corporate, Total Three Months Ended June 30, 2024: Fee income $ 32,063 $ 665 $ 332 $ 33,060 Interest income 9,752 14,680 (3,190) 21,242 Interest expense 314 8,573 (3,575) 5,312 Intersegment income (expense) (1,016) 1,016 — — Pre-tax income 3,121 1,960 716 5,797 Goodwill 17,173 136 — 17,309 Other intangible assets, net 2,972 — — 2,972 Total assets 1,420,254 1,130,548 (268,206) 2,282,596 Average funding sources $ 1,256,457 $ 785,893 $ — $ 2,042,350 Three Months Ended June 30, 2023: Fee income $ 31,360 $ 626 $ 87 $ 32,073 Interest income 9,463 13,829 (3,584) 19,708 Interest expense 69 7,340 (3,715) 3,694 Intersegment income (expense) (1,062) 1,062 — — Pre-tax income 5,873 2,776 219 8,868 Goodwill 17,173 136 — 17,309 Other intangible assets, net 3,735 — — 3,735 Total assets 1,602,932 1,150,293 (282,429) 2,470,796 Average funding sources $ 1,327,251 $ 784,068 $ — $ 2,111,319 Six Months Ended June 30, 2024: Fee income $ 64,384 $ 1,305 $ 668 $ 66,357 Interest income 19,943 28,564 (5,611) 42,896 Interest expense 912 16,463 (6,885) 10,490 Intersegment income (expense) (2,054) 2,054 — — Pre-tax income 9,085 3,778 1,941 14,804 Goodwill 17,173 136 — 17,309 Other intangible assets, net 2,972 — — 2,972 Total assets 1,420,254 1,130,548 (268,206) 2,282,596 Average funding sources $ 1,286,036 $ 792,816 $ — $ 2,078,852 Six Months Ended June 30, 2023: Fee income $ 62,437 $ 1,337 $ 406 $ 64,180 Interest income 18,910 27,006 (6,066) 39,850 Interest expense 167 12,773 (6,002) 6,938 Intersegment income (expense) (1,976) 1,976 — — Pre-tax income 10,864 6,635 342 17,841 Goodwill 17,173 136 — 17,309 Other intangible assets, net 3,735 — — 3,735 Total assets 1,602,932 1,150,293 (282,429) 2,470,796 Average funding sources $ 1,342,061 $ 833,207 $ — $ 2,175,268 |
Loans by Type (Tables)
Loans by Type (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loans is as follows: (In thousands) June 30, December 31, Commercial and industrial $ 548,625 $ 498,502 Real estate: Commercial: Mortgage 121,701 118,371 Construction 9,488 8,233 Faith-based: Mortgage 371,313 381,368 Construction 10,861 7,790 Other 3 54 Total loans $ 1,061,991 $ 1,014,318 |
Schedule of Debt | The following table presents the aging of loans past due by category at June 30, 2024 and December 31, 2023: Performing Nonperforming (In thousands) Current 30-59 60-89 90 Non- Total June 30, 2024 Commercial and industrial $ 548,625 $ — $ — $ — $ — $ 548,625 Real estate Commercial: Mortgage 121,701 — — — — 121,701 Construction 9,488 — — — — 9,488 Faith-based: Mortgage 371,313 — — — — 371,313 Construction 10,861 — — — — 10,861 Other 3 — — — — 3 Total $ 1,061,991 $ — $ — $ — $ — $ 1,061,991 December 31, 2023 Commercial and industrial $ 498,502 $ — $ — $ — $ — $ 498,502 Real estate Commercial: Mortgage 118,371 — — — — 118,371 Construction 8,233 — — — — 8,233 Faith-based: Mortgage 381,368 — — — — 381,368 Construction 7,790 — — — — 7,790 Other 54 — — — — 54 Total $ 1,014,318 $ — $ — $ — $ — $ 1,014,318 |
Schedule of Credit Exposure of the Loan Portfolio | The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2024 and December 31, 2023: (In thousands) Loans Subject to Normal Monitoring 1 Performing Loans Subject to Special Monitoring 2 Nonperforming Loans Subject to Special Monitoring 2 Total Loans June 30, 2024 Commercial and industrial $ 548,625 $ — $ — $ 548,625 Real estate Commercial: Mortgage 119,223 2,478 — 121,701 Construction 9,488 — — 9,488 Faith-based: Mortgage 356,353 14,960 — 371,313 Construction 10,861 — — 10,861 Other 3 — — 3 Total $ 1,044,553 $ 17,438 $ — $ 1,061,991 December 31, 2023 Commercial and industrial $ 498,502 $ — $ — $ 498,502 Real estate Commercial: Mortgage 118,371 — — 118,371 Construction 8,233 — — 8,233 Faith-based: Mortgage 375,865 5,503 — 381,368 Construction 7,790 — — 7,790 Other 54 — — 54 Total $ 1,008,815 $ 5,503 $ — $ 1,014,318 1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations. 2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Financing Receivable, Troubled Debt Restructuring | The following table shows the amortized cost of loans that were both experiencing financial difficulty and modified during the six-month period ended June 30, 2023, segregated by category and type of modification. (In thousands) Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Interest Rate Reduction Percentage of Total Loans Held for Investment Commercial and industrial $ — $ 10,952 $ — $ — 2.05 % Total $ — $ 10,952 $ — $ — 1.04 % The following table shows the payment status of loans that have been modified to borrowers experiencing financial difficulty in the last twelve months: (In thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Commercial and industrial $ 11,333 $ — $ — $ — $ — Total $ 11,333 $ — $ — $ — $ — |
Summary of ACL by Category | A summary of the activity in the allowance for credit losses (“ACL”) by category for the six-month periods ended June 30, 2024 and year-ended December 31, 2023 is as follows: (In thousands) C&I CRE Faith-based Construction Total Balance at December 31, 2022 $ 5,978 $ 940 $ 6,437 $ 184 $ 13,539 (Release of) provision for credit losses (566) 153 39 (76) (450) Balance at December 31, 2023 $ 5,412 $ 1,093 $ 6,476 $ 108 $ 13,089 Provision for (release of) credit losses (1) 502 23 (11) 31 545 Balance at June 30, 2024 $ 5,914 $ 1,116 $ 6,465 $ 139 $ 13,634 (1) For the six-month period ended June 30, 2024 and year-ended December 31, 2023, there was a release of credit losses of $50,000 and $100,000, respectively, for unfunded commitments. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | Following is a summary of the activity of the Company's restricted stock for the six-month period ended June 30, 2024, with total shares and weighted-average fair value: Six Months Ended Shares Fair Value Balance at December 31, 2023 237,780 $ 42.17 Granted 54,462 44.08 Vested (39,764) 32.78 Forfeitures (710) 43.70 Balance at June 30, 2024 251,768 $ 42.87 |
Schedule of Performance Shares Activity | Following is a summary of the activity of the PBRS for the six-month period ended June 30, 2024, based on 100% of target value: Six Months Ended Shares Fair Value Balance at December 31, 2023 159,073 $ 42.74 Granted 51,261 44.29 Vested (50,840) 40.74 Forfeitures (1,066) 43.70 Balance at June 30, 2024 158,428 $ 43.87 |
Schedule of Stock Appreciation Right Activity | Following is a summary of the activity of the Company’s SARs program for the six-month period ended June 30, 2024: Shares Weighted- Average Aggregate Intrinsic Value (In thousands) Balance at December 31, 2023 30,409 $ 46.70 0.08 $ — Forfeited (30,409) 46.70 0.00 — Exercisable at June 30, 2024 — $ — 0.00 $ — |
Defined Pension Plans (Tables)
Defined Pension Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Expected Benefit Payments | The following table represents the components of net periodic pension cost: (In thousands) Estimated 2024 Actual 2023 Interest cost on projected benefit obligations $ 4,291 $ 4,314 Expected return on plan assets (3,512) (3,735) Net amortization — 154 Net periodic pension cost $ 779 $ 733 |
Schedule of Net Benefit Costs | The following table represents the components of the net periodic cost for the SERP: (In thousands) Estimated 2024 Actual 2023 Interest cost on projected benefit obligation $ 451 $ 472 Net periodic pension cost $ 451 $ 472 |
Investment in Securities (Table
Investment in Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: June 30, 2024 (In thousands) Amortized Gross Gross Fair State and political subdivisions $ 220,717 $ 8 $ (18,427) $ 202,298 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 212,270 — (32,447) 179,823 Corporate bonds 118,986 17 (9,065) 109,938 Treasury securities 9,992 — (19) 9,973 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 39,310 — (540) 38,770 Total $ 601,275 $ 25 $ (60,498) $ 540,802 December 31, 2023 (In thousands) Amortized Gross Gross Fair Value State and political subdivisions $ 235,297 $ 4 $ (16,266) $ 219,035 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 188,307 — (30,508) 157,799 Corporate bonds 111,109 — (8,769) 102,340 Treasury securities 109,836 — (1,115) 108,721 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 40,368 — (1,146) 39,222 Total $ 684,917 $ 4 $ (57,804) $ 627,117 |
Schedule of Unrealized Loss on Investments | The fair values of securities with unrealized losses are as follows: June 30, 2024 Less than 12 months 12 months or more Total (In thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized State and political subdivisions $ 4,040 $ 13 $ 189,863 $ 18,414 $ 193,903 $ 18,427 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises 36,831 186 142,992 32,261 179,823 32,447 Corporate bonds 17,653 350 82,255 8,715 99,908 9,065 Treasury securities — — 9,973 19 9,973 19 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises — — 38,770 540 38,770 540 Total $ 58,524 $ 549 $ 463,853 $ 59,949 $ 522,377 $ 60,498 December 31, 2023 Less than 12 months 12 months or more Total (In thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized State and political subdivisions $ 63,198 $ 220 $ 152,854 $ 16,046 $ 216,052 $ 16,266 Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises — — 157,799 30,508 157,799 30,508 Corporate bonds 19,545 455 82,795 8,314 102,340 8,769 Treasury securities — — 108,721 1,115 108,721 1,115 Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises — — 39,222 1,146 39,222 1,146 Total $ 82,743 $ 675 $ 541,391 $ 57,129 $ 624,134 $ 57,804 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. June 30, 2024 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 44,510 $ 44,388 Due after 1 year through 5 years 132,633 130,220 Due after 5 years through 10 years 205,504 179,664 Due after 10 years 218,628 186,530 Total $ 601,275 $ 540,802 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements by Balance Sheet Grouping | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: June 30, 2024 December 31, 2023 (In thousands) Carrying Fair Value Carrying Fair Value Balance sheet assets: Cash and cash equivalents $ 223,727 $ 223,727 $ 372,468 $ 372,468 Investment securities 540,802 540,802 627,117 627,117 Loans, net 1,048,357 1,017,800 1,001,229 962,223 Accrued interest receivable 8,825 8,825 8,450 8,450 Total $ 1,821,711 $ 1,791,154 $ 2,009,264 $ 1,970,258 Balance sheet liabilities: Deposits $ 1,012,346 $ 1,012,346 $ 1,140,814 $ 1,140,814 Accounts and drafts payable 996,832 996,832 1,071,369 1,071,369 Accrued interest payable 554 554 635 635 Total $ 2,009,732 $ 2,009,732 $ 2,212,818 $ 2,212,818 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Fee revenue and other income In-scope of FASB ASC 606 Processing fees $ 21,103 $ 19,386 42,356 $ 38,899 Financial fees 10,628 11,662 21,405 22,921 Information services payment and processing revenue 31,731 31,048 63,761 61,820 Bank service fees 319 253 600 517 Fee revenue (in-scope of FASB ASC 606) 32,050 31,301 64,361 62,337 Other income (out-of-scope of FASB ASC 606) 1,010 772 1,996 1,843 Total fee revenue and other income $ 33,060 $ 32,073 $ 66,357 $ 64,180 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturity | A maturity analysis of operating lease liabilities and undiscounted cash flows as of June 30, 2024 is as follows: (In thousands) June 30, Lease payments due Less than 1 year $ 1,333 1-2 years 1,358 2-3 years 1,343 3-4 years 1,370 4-5 years 1,259 Over 5 years 2,272 Total undiscounted cash flows 8,935 Discount on cash flows 972 Total lease liability $ 7,963 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 17,309 | $ 17,309 | $ 17,309 | $ 17,309 | $ 17,309 |
Amortization of intangible assets | 182 | $ 195 | 373 | $ 390 | |
Expected amortization, remainder of fiscal year | 738 | 738 | |||
Amortization expense, next rolling twelve months | 730 | 730 | |||
Amortization expense, rolling year two | 582 | 582 | |||
Amortization expense, rolling year three | 262 | 262 | |||
Amortization expense, rolling year four | $ 254 | $ 254 | |||
Customer lists | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 7 years | 7 years | |||
Customer lists | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 10 years | 10 years | |||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 18 years | 18 years | |||
Software | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 3 years | 3 years | |||
Software | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 7 years | 7 years | |||
Trade name | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 10 years | 10 years | |||
Trade name | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 20 years | 20 years | |||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 15 years | 15 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets eligible for amortization: | ||
Accumulated Amortization | $ (7,655) | $ (7,282) |
Unamortized intangible assets: | ||
Goodwill, gross carrying amount | 17,309 | 17,309 |
Total intangible assets, net | 27,936 | 27,936 |
Total intangible assets, accumulated amortization | 7,655 | 7,282 |
Customer lists | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 6,470 | 6,470 |
Accumulated Amortization | (4,979) | (4,851) |
Unamortized intangible assets: | ||
Total intangible assets, accumulated amortization | 4,979 | 4,851 |
Patents | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 72 | 72 |
Accumulated Amortization | (38) | (36) |
Unamortized intangible assets: | ||
Total intangible assets, accumulated amortization | 38 | 36 |
Software | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 3,212 | 3,212 |
Accumulated Amortization | (2,146) | (1,933) |
Unamortized intangible assets: | ||
Total intangible assets, accumulated amortization | 2,146 | 1,933 |
Trade name | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 373 | 373 |
Accumulated Amortization | (84) | (70) |
Unamortized intangible assets: | ||
Total intangible assets, accumulated amortization | 84 | 70 |
Other | ||
Assets eligible for amortization: | ||
Gross Carrying Amount | 500 | 500 |
Accumulated Amortization | (408) | (392) |
Unamortized intangible assets: | ||
Total intangible assets, accumulated amortization | $ 408 | $ 392 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic | ||||
Net income | $ 4,484 | $ 7,138 | $ 11,636 | $ 14,255 |
Weighted-average common shares outstanding (in shares) | 13,538,283 | 13,553,346 | 13,534,256 | 13,576,281 |
Basic earnings per share (in dollars per share) | $ 0.33 | $ 0.53 | $ 0.86 | $ 1.05 |
Diluted | ||||
Net Income | $ 4,484 | $ 7,138 | $ 11,636 | $ 14,255 |
Weighted-average common shares outstanding (in shares) | 13,538,283 | 13,553,346 | 13,534,256 | 13,576,281 |
Effect of dilutive restricted stock and stock appreciation rights (in shares) | 283,793 | 300,696 | 269,421 | 282,412 |
Weighted-average common shares outstanding assuming dilution (in shares) | 13,822,076 | 13,854,042 | 13,803,677 | 13,858,693 |
Diluted earnings per share (in dollars per share) | $ 0.32 | $ 0.52 | $ 0.84 | $ 1.03 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Oct. 31, 2021 | |
Equity [Abstract] | |||||
Number of shares authorized to be repurchased (in shares) | 500,000 | ||||
Remaining number of shares authorized to be repurchased (in shares) | 462,765 | 462,765 | |||
Treasury stock, shares repurchased (in shares) | 0 | 63,305 | 23,271 | 63,305 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Interest Income (Expense), after Provision for Loan Loss [Abstract] | |||||
Fee income | $ 33,060 | $ 32,073 | $ 66,357 | $ 64,180 | |
Interest income | 21,242 | 19,708 | 42,896 | 39,850 | |
Interest expense | 5,312 | 3,694 | 10,490 | 6,938 | |
Intersegment income (expense) | 15,930 | 16,014 | 32,406 | 32,912 | |
Tax-equivalized pre-tax income | 5,797 | 8,868 | 14,804 | 17,841 | |
Goodwill | 17,309 | 17,309 | 17,309 | 17,309 | $ 17,309 |
Other intangible assets, net | 2,972 | 3,735 | 2,972 | 3,735 | |
Total assets | 2,282,596 | 2,470,796 | 2,282,596 | 2,470,796 | $ 2,478,622 |
Average funding sources | 2,042,350 | 2,111,319 | 2,078,852 | 2,175,268 | |
Corporate, Eliminations and Other | |||||
Interest Income (Expense), after Provision for Loan Loss [Abstract] | |||||
Fee income | 332 | 87 | 668 | 406 | |
Interest income | (3,190) | (3,584) | (5,611) | (6,066) | |
Interest expense | (3,575) | (3,715) | (6,885) | (6,002) | |
Intersegment income (expense) | 0 | 0 | 0 | 0 | |
Tax-equivalized pre-tax income | 716 | 219 | 1,941 | 342 | |
Goodwill | 0 | 0 | 0 | 0 | |
Other intangible assets, net | 0 | 0 | 0 | 0 | |
Total assets | (268,206) | (282,429) | (268,206) | (282,429) | |
Average funding sources | 0 | 0 | 0 | 0 | |
Information services payment and processing revenue | Operating Segments | |||||
Interest Income (Expense), after Provision for Loan Loss [Abstract] | |||||
Fee income | 32,063 | 31,360 | 64,384 | 62,437 | |
Interest income | 9,752 | 9,463 | 19,943 | 18,910 | |
Interest expense | 314 | 69 | 912 | 167 | |
Intersegment income (expense) | (1,016) | (1,062) | (2,054) | (1,976) | |
Tax-equivalized pre-tax income | 3,121 | 5,873 | 9,085 | 10,864 | |
Goodwill | 17,173 | 17,173 | 17,173 | 17,173 | |
Other intangible assets, net | 2,972 | 3,735 | 2,972 | 3,735 | |
Total assets | 1,420,254 | 1,602,932 | 1,420,254 | 1,602,932 | |
Average funding sources | 1,256,457 | 1,327,251 | 1,286,036 | 1,342,061 | |
Banking Services | Operating Segments | |||||
Interest Income (Expense), after Provision for Loan Loss [Abstract] | |||||
Fee income | 665 | 626 | 1,305 | 1,337 | |
Interest income | 14,680 | 13,829 | 28,564 | 27,006 | |
Interest expense | 8,573 | 7,340 | 16,463 | 12,773 | |
Intersegment income (expense) | 1,016 | 1,062 | 2,054 | 1,976 | |
Tax-equivalized pre-tax income | 1,960 | 2,776 | 3,778 | 6,635 | |
Goodwill | 136 | 136 | 136 | 136 | |
Other intangible assets, net | 0 | 0 | 0 | 0 | |
Total assets | 1,130,548 | 1,150,293 | 1,130,548 | 1,150,293 | |
Average funding sources | $ 785,893 | $ 784,068 | $ 792,816 | $ 833,207 |
Loans by Type - Summary of Loan
Loans by Type - Summary of Loan Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Participating Mortgage Loans [Line Items] | ||
Total loans | $ 1,061,991 | $ 1,014,318 |
Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 548,625 | 498,502 |
Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 121,701 | 118,371 |
Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 9,488 | 8,233 |
Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 371,313 | 381,368 |
Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 10,861 | 7,790 |
Other | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | $ 3 | $ 54 |
Loans by Type - Schedule of the
Loans by Type - Schedule of the Aging of Loans by Loan Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Participating Mortgage Loans [Line Items] | ||
Total Loans | $ 1,061,991 | $ 1,014,318 |
Non- accrual | 0 | 0 |
Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 548,625 | 498,502 |
Non- accrual | 0 | 0 |
Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 121,701 | 118,371 |
Non- accrual | 0 | 0 |
Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 9,488 | 8,233 |
Non- accrual | 0 | 0 |
Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 371,313 | 381,368 |
Non- accrual | 0 | 0 |
Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 10,861 | 7,790 |
Non- accrual | 0 | 0 |
Other | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 3 | 54 |
Non- accrual | 0 | 0 |
Current | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 1,061,991 | 1,014,318 |
Current | Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 548,625 | 498,502 |
Current | Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 121,701 | 118,371 |
Current | Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 9,488 | 8,233 |
Current | Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 371,313 | 381,368 |
Current | Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 10,861 | 7,790 |
Current | Other | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 3 | 54 |
30-59 Days | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
30-59 Days | Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
30-59 Days | Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
30-59 Days | Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
30-59 Days | Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
30-59 Days | Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
30-59 Days | Other | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
60-89 Days | Other | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | 0 | 0 |
90 Days and Over | Other | ||
Participating Mortgage Loans [Line Items] | ||
Total Loans | $ 0 | $ 0 |
Loans by Type - Schedule of t_2
Loans by Type - Schedule of the Credit Exposure of the Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Participating Mortgage Loans [Line Items] | ||
Total loans | $ 1,061,991 | $ 1,014,318 |
Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 1,044,553 | 1,008,815 |
Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 17,438 | 5,503 |
Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Commercial and industrial | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 548,625 | 498,502 |
Commercial and industrial | Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 548,625 | 498,502 |
Commercial and industrial | Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Commercial and industrial | Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Commercial: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 121,701 | 118,371 |
Commercial: | Mortgage | Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 119,223 | 118,371 |
Commercial: | Mortgage | Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 2,478 | 0 |
Commercial: | Mortgage | Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Commercial: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 9,488 | 8,233 |
Commercial: | Construction | Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 9,488 | 8,233 |
Commercial: | Construction | Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Commercial: | Construction | Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Faith-based: | Mortgage | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 371,313 | 381,368 |
Faith-based: | Mortgage | Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 356,353 | 375,865 |
Faith-based: | Mortgage | Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 14,960 | 5,503 |
Faith-based: | Mortgage | Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Faith-based: | Construction | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 10,861 | 7,790 |
Faith-based: | Construction | Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 10,861 | 7,790 |
Faith-based: | Construction | Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Faith-based: | Construction | Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Other | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 3 | 54 |
Other | Loans Subject To Normal Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 3 | 54 |
Other | Performing Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | 0 | 0 |
Other | Nonperforming Loans Subject To Special Monitoring | ||
Participating Mortgage Loans [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans by Type - Summary of ACL
Loans by Type - Summary of ACL by Category (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended |
Jun. 30, 2024 | Sep. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 13,089 | |
Ending balance | 13,634 | |
Loans Excluding Unfunded Commitments | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 13,089 | $ 13,539 |
Provision for (release of) credit losses | 545 | (450) |
Ending balance | 13,634 | |
Loans Excluding Unfunded Commitments | C&I | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 5,412 | 5,978 |
Provision for (release of) credit losses | 502 | (566) |
Ending balance | 5,914 | |
Loans Excluding Unfunded Commitments | CRE | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,093 | 940 |
Provision for (release of) credit losses | 23 | 153 |
Ending balance | 1,116 | |
Loans Excluding Unfunded Commitments | Faith-based CRE | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 6,476 | 6,437 |
Provision for (release of) credit losses | (11) | 39 |
Ending balance | 6,465 | |
Loans Excluding Unfunded Commitments | Construction | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 108 | 184 |
Provision for (release of) credit losses | 31 | $ (76) |
Ending balance | $ 139 |
Loans by Type (Details) - TDM L
Loans by Type (Details) - TDM Loans $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |
Percentage of Total Loans Held for Investment | 1.04% |
Payment Delay | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | $ 0 |
Term Extension | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 10,952 |
Interest Rate Reduction | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
Combination Term Extension and Interest Rate Reduction | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | $ 0 |
Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Percentage of Total Loans Held for Investment | 2.05% |
Commercial and industrial | Payment Delay | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | $ 0 |
Commercial and industrial | Term Extension | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 10,952 |
Commercial and industrial | Interest Rate Reduction | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
Commercial and industrial | Combination Term Extension and Interest Rate Reduction | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | $ 0 |
Loans by Type (Details) - TDRs
Loans by Type (Details) - TDRs $ in Thousands | Jun. 30, 2024 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Modified loans | $ 0 |
Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
Current | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 11,333 |
Current | Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 11,333 |
30-59 Days | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
30-59 Days | Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
60-89 Days | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
60-89 Days | Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
90 Days and Over | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | 0 |
90 Days and Over | Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Modified loans | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loss Contingencies [Line Items] | ||
Allowance for unfunded commitments | $ 82 | $ 132 |
Unused loan commitments | 251,400 | |
Invoice Reimbursement [Abstract] | 8,100 | |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Letters of credit | 13,700 | |
Stand by Letters Of Credit Member | ||
Loss Contingencies [Line Items] | ||
Letters of credit | $ 729 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 474 | $ 909 | $ 1,700 | $ 2,859 | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 54,462 | ||||
Unrecognized compensation expense | $ 2,600 | $ 2,600 | |||
Unrecognized compensation expense, period for recognition | 8 months 19 days | ||||
Nonvested awards shares outstanding (in shares) | 251,768 | 251,768 | 237,780 | ||
Restricted Stock | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Restricted Stock | Nonemployee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Restricted Stock | Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period (in shares) | 54,462 | ||||
Performance-based Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 51,261 | ||||
Award vesting period | 3 years | ||||
Percentage of target opportunity for awards to vest | 135.40% | ||||
Shares issued in period (in shares) | 68,834 | ||||
Nonvested awards shares outstanding (in shares) | 158,428 | 158,428 | 159,073 | ||
Performance-based Restricted Stock | Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued in period (in shares) | 51,261 | ||||
Performance-based Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target opportunity for awards to vest | 0% | ||||
Performance-based Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target opportunity for awards to vest | 150% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 237,780 |
Granted (in shares) | shares | 54,462 |
Vested (in shares) | shares | (39,764) |
Forfeitures (in shares) | shares | (710) |
Ending balance (in shares) | shares | 251,768 |
Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 42.17 |
Granted (in dollars per share) | $ / shares | 44.08 |
Vested (in dollars per share) | $ / shares | 32.78 |
Forfeitures (in dollars per share) | $ / shares | 43.70 |
Ending balance (in dollars per share) | $ / shares | $ 42.87 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of PBRS Activity (Details) - Performance-based Restricted Stock | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 159,073 |
Granted (in shares) | shares | 51,261 |
Vested (in shares) | shares | (50,840) |
Forfeitures (in shares) | shares | (1,066) |
Ending balance (in shares) | shares | 158,428 |
Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 42.74 |
Granted (in dollars per share) | $ / shares | 44.29 |
Vested (in dollars per share) | $ / shares | 40.74 |
Forfeitures (in dollars per share) | $ / shares | 43.70 |
Ending balance (in dollars per share) | $ / shares | $ 43.87 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Company's SARs Activity (Details) - SARs - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 30,409 | ||
Ending balance (in shares) | 0 | ||
Fair Value | |||
Beginning balance (in dollars per share) | $ 46.70 | ||
Ending balance (in dollars per share) | $ 0 | ||
Outstanding, average remaining contractual term (in years) | 0 years | 29 days | |
Aggregate intrinsic value | $ 0 | $ 0 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Forfeitures | 30,409 | ||
Forfeited (in dollars per share) | $ 46.70 |
Defined Pension Plans - Narrati
Defined Pension Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost (benefit) | $ 194 | $ 99 | $ 389 | $ 199 | $ 733 |
Contributions | 0 | ||||
Supplemental Employee Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost (benefit) | $ 112 | $ 118 | $ 225 | $ 236 | $ 472 |
Defined Pension Plans - Schedul
Defined Pension Plans - Schedule of Net Periodic Pension Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost on projected benefit obligation | $ 4,314 | |||||
Expected return on plan assets | (3,735) | |||||
Net amortization | 154 | |||||
Net periodic pension (benefit) cost | $ 194 | $ 99 | $ 389 | $ 199 | 733 | |
Pension Plan | Forecast | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost on projected benefit obligation | $ 4,291 | |||||
Expected return on plan assets | (3,512) | |||||
Net amortization | 0 | |||||
Net periodic pension (benefit) cost | 779 | |||||
Supplemental Employee Retirement Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost on projected benefit obligation | 472 | |||||
Net periodic pension (benefit) cost | $ 112 | $ 118 | $ 225 | $ 236 | $ 472 | |
Supplemental Employee Retirement Plan | Forecast | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Interest cost on projected benefit obligation | 451 | |||||
Net periodic pension (benefit) cost | $ 451 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 22.60% | 19.50% | 21.40% | 20.10% |
Investment in Securities - Sche
Investment in Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 601,275 | $ 684,917 |
Gross Unrealized Gains | 25 | 4 |
Gross Unrealized Losses | (60,498) | (57,804) |
Fair Value | 540,802 | 627,117 |
AFS, Less than 12 months, Estimated Fair Value | 58,524 | 82,743 |
AFS, Less than 12 months, Unrealized Losses | 549 | 675 |
AFS, 12 months or more, Estimated Fair Value | 463,853 | 541,391 |
AFS, 12 months or more, Unrealized Losses | 59,949 | 57,129 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 522,377 | 624,134 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 60,498 | 57,804 |
State and political subdivisions | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 220,717 | 235,297 |
Gross Unrealized Gains | 8 | 4 |
Gross Unrealized Losses | (18,427) | (16,266) |
Fair Value | 202,298 | 219,035 |
AFS, Less than 12 months, Estimated Fair Value | 4,040 | 63,198 |
AFS, Less than 12 months, Unrealized Losses | 13 | 220 |
AFS, 12 months or more, Estimated Fair Value | 189,863 | 152,854 |
AFS, 12 months or more, Unrealized Losses | 18,414 | 16,046 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 193,903 | 216,052 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 18,427 | 16,266 |
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 212,270 | 188,307 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (32,447) | (30,508) |
Fair Value | 179,823 | 157,799 |
AFS, Less than 12 months, Estimated Fair Value | 36,831 | 0 |
AFS, Less than 12 months, Unrealized Losses | 186 | 0 |
AFS, 12 months or more, Estimated Fair Value | 142,992 | 157,799 |
AFS, 12 months or more, Unrealized Losses | 32,261 | 30,508 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 179,823 | 157,799 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 32,447 | 30,508 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 118,986 | 111,109 |
Gross Unrealized Gains | 17 | 0 |
Gross Unrealized Losses | (9,065) | (8,769) |
Fair Value | 109,938 | 102,340 |
AFS, Less than 12 months, Estimated Fair Value | 17,653 | 19,545 |
AFS, Less than 12 months, Unrealized Losses | 350 | 455 |
AFS, 12 months or more, Estimated Fair Value | 82,255 | 82,795 |
AFS, 12 months or more, Unrealized Losses | 8,715 | 8,314 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 99,908 | 102,340 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 9,065 | 8,769 |
Treasury securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 9,992 | 109,836 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19) | (1,115) |
Fair Value | 9,973 | 108,721 |
AFS, Less than 12 months, Estimated Fair Value | 0 | 0 |
AFS, Less than 12 months, Unrealized Losses | 0 | 0 |
AFS, 12 months or more, Estimated Fair Value | 9,973 | 108,721 |
AFS, 12 months or more, Unrealized Losses | 19 | 1,115 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 9,973 | 108,721 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 19 | 1,115 |
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 39,310 | 40,368 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (540) | (1,146) |
Fair Value | 38,770 | 39,222 |
AFS, Less than 12 months, Estimated Fair Value | 0 | 0 |
AFS, Less than 12 months, Unrealized Losses | 0 | 0 |
AFS, 12 months or more, Estimated Fair Value | 38,770 | 39,222 |
AFS, 12 months or more, Unrealized Losses | 540 | 1,146 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 38,770 | 39,222 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 540 | $ 1,146 |
Investment in Securities - Narr
Investment in Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Dec. 31, 2023 security | |
Investments, Debt and Equity Securities [Abstract] | |||||
Available-for-sale securities, number of positions | security | 260 | 260 | 275 | ||
Available-for-sale securities, percentage of total securities | 95.60% | 95.60% | 98.90% | ||
Available-for-sale securities, number of positions, greater than one year | security | 244 | 244 | 210 | ||
Proceeds from sales of securities available-for-sale | $ 25,000 | $ 49,600 | $ 24,985 | $ 111,053 | |
Available-for-sale securities, gross realized gains | 0 | 0 | 0 | 187 | |
Available-for-sale securities, gross realized losses | 13 | 199 | 13 | 347 | |
Marketable Securities [Line Items] | |||||
Available-for-sale securities, gross realized losses | 13 | 199 | 13 | 347 | |
Proceeds from sales of securities available-for-sale | 25,000 | 49,600 | 24,985 | 111,053 | |
Available-for-sale securities, gross realized gains | $ 0 | $ 0 | $ 0 | $ 187 |
Investment in Securities - Sc_2
Investment in Securities - Schedule of the Fair Values of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Marketable Securities [Line Items] | ||
AFS, Less than 12 months, Estimated Fair Value | $ 58,524 | $ 82,743 |
AFS, Less than 12 months, Unrealized Losses | 549 | 675 |
AFS, 12 months or more, Estimated Fair Value | 463,853 | 541,391 |
AFS, 12 months or more, Unrealized Losses | 59,949 | 57,129 |
AFS, Total Estimated Fair Value | 522,377 | 624,134 |
AFS, Total Unrealized Losses | 60,498 | 57,804 |
State and political subdivisions | ||
Marketable Securities [Line Items] | ||
AFS, Less than 12 months, Estimated Fair Value | 4,040 | 63,198 |
AFS, Less than 12 months, Unrealized Losses | 13 | 220 |
AFS, 12 months or more, Estimated Fair Value | 189,863 | 152,854 |
AFS, 12 months or more, Unrealized Losses | 18,414 | 16,046 |
AFS, Total Estimated Fair Value | 193,903 | 216,052 |
AFS, Total Unrealized Losses | 18,427 | 16,266 |
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises | ||
Marketable Securities [Line Items] | ||
AFS, Less than 12 months, Estimated Fair Value | 36,831 | 0 |
AFS, Less than 12 months, Unrealized Losses | 186 | 0 |
AFS, 12 months or more, Estimated Fair Value | 142,992 | 157,799 |
AFS, 12 months or more, Unrealized Losses | 32,261 | 30,508 |
AFS, Total Estimated Fair Value | 179,823 | 157,799 |
AFS, Total Unrealized Losses | 32,447 | 30,508 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
AFS, Less than 12 months, Estimated Fair Value | 17,653 | 19,545 |
AFS, Less than 12 months, Unrealized Losses | 350 | 455 |
AFS, 12 months or more, Estimated Fair Value | 82,255 | 82,795 |
AFS, 12 months or more, Unrealized Losses | 8,715 | 8,314 |
AFS, Total Estimated Fair Value | 99,908 | 102,340 |
AFS, Total Unrealized Losses | 9,065 | 8,769 |
Treasury securities | ||
Marketable Securities [Line Items] | ||
AFS, Less than 12 months, Estimated Fair Value | 0 | 0 |
AFS, Less than 12 months, Unrealized Losses | 0 | 0 |
AFS, 12 months or more, Estimated Fair Value | 9,973 | 108,721 |
AFS, 12 months or more, Unrealized Losses | 19 | 1,115 |
AFS, Total Estimated Fair Value | 9,973 | 108,721 |
AFS, Total Unrealized Losses | 19 | 1,115 |
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises | ||
Marketable Securities [Line Items] | ||
AFS, Less than 12 months, Estimated Fair Value | 0 | 0 |
AFS, Less than 12 months, Unrealized Losses | 0 | 0 |
AFS, 12 months or more, Estimated Fair Value | 38,770 | 39,222 |
AFS, 12 months or more, Unrealized Losses | 540 | 1,146 |
AFS, Total Estimated Fair Value | 38,770 | 39,222 |
AFS, Total Unrealized Losses | $ 540 | $ 1,146 |
Investment in Securities - Sc_3
Investment in Securities - Schedule of Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in 1 year or less | $ 44,510 | |
Due after 1 year through 5 years | 132,633 | |
Due after 5 years through 10 years | 205,504 | |
Due after 10 years | 218,628 | |
Amortized Cost | 601,275 | $ 684,917 |
Fair Value | ||
Due in 1 year or less | 44,388 | |
Due after 1 year through 5 years | 130,220 | |
Due after 5 years through 10 years | 179,664 | |
Due after 10 years | 186,530 | |
Total | $ 540,802 | $ 627,117 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance sheet assets: | ||
Investment securities | $ 540,802 | $ 627,117 |
Carrying Amount | ||
Balance sheet assets: | ||
Accrued interest receivable | 8,825 | 8,450 |
Total | 1,821,711 | 2,009,264 |
Balance sheet liabilities: | ||
Accrued interest payable | 554 | 635 |
Total | 2,009,732 | 2,212,818 |
Fair Value | ||
Balance sheet assets: | ||
Cash and cash equivalents | 223,727 | 372,468 |
Investment securities | 540,802 | 627,117 |
Loans, net | 1,017,800 | 962,223 |
Accrued interest receivable | 8,825 | 8,450 |
Total | 1,791,154 | 1,970,258 |
Balance sheet liabilities: | ||
Deposits | 1,012,346 | 1,140,814 |
Accounts and drafts payable | 996,832 | 1,071,369 |
Accrued interest payable | 554 | 635 |
Total | $ 2,009,732 | $ 2,212,818 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue, Performance Obligation [Abstract] | ||||
Fee revenues, in-scope of FASB ASC 606 | $ 32,050 | $ 31,301 | $ 64,361 | $ 62,337 |
Other income (out-of-scope of FASB ASC 606) | 1,010 | 772 | 1,996 | 1,843 |
Total fee revenue and other income | 33,060 | 32,073 | 66,357 | 64,180 |
Processing fees | ||||
Revenue, Performance Obligation [Abstract] | ||||
Fee revenues, in-scope of FASB ASC 606 | 21,103 | 19,386 | 42,356 | 38,899 |
Financial fees | ||||
Revenue, Performance Obligation [Abstract] | ||||
Fee revenues, in-scope of FASB ASC 606 | 10,628 | 11,662 | 21,405 | 22,921 |
Information services payment and processing revenue | ||||
Revenue, Performance Obligation [Abstract] | ||||
Fee revenues, in-scope of FASB ASC 606 | 31,731 | 31,048 | 63,761 | 61,820 |
Bank service fees | ||||
Revenue, Performance Obligation [Abstract] | ||||
Fee revenues, in-scope of FASB ASC 606 | $ 319 | $ 253 | $ 600 | $ 517 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | |
Leases [Abstract] | ||
Operating lease, liability | $ 7,963 | $ 7,963 |
Operating lease, right-of-use asset | $ 7,600 | $ 7,600 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease, cost | $ 333 | $ 674 |
Short-term lease, cost | 93 | 174 |
Variable lease, cost | $ 0 | $ 0 |
Operating lease, weighted average remaining lease term | 6 years 10 months 24 days | 6 years 10 months 24 days |
Operating lease, weighted average discount rate, percent | 3.56% | 3.56% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturity (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Lease payments due | |
Less than 1 year | $ 1,333 |
1-2 years | 1,358 |
2-3 years | 1,343 |
3-4 years | 1,370 |
4-5 years | 1,259 |
Over 5 years | 2,272 |
Total undiscounted cash flows | 8,935 |
Discount on cash flows | 972 |
Total lease liability | $ 7,963 |