Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity Registrant Name | FIRST MERCHANTS CORP | |
Entity Incorporation, State or Country Code | IN | |
Entity File Number | 001-41342 | |
Entity Tax Identification Number | 35-1544218 | |
Entity Address, Address Line One | 200 East Jackson Street | |
Entity Address, City or Town | Muncie | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47305-2814 | |
City Area Code | 765 | |
Local Phone Number | 747-1500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,562,630 | |
Entity Central Index Key | 0000712534 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, $0.125 stated value per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.125 stated value per share | |
Trading Symbol | FRME | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/100th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/100th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | FRMEP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 119,532 | $ 167,146 |
Interest-bearing deposits | 179,593 | 474,154 |
Investment securities available for sale | 1,983,972 | 2,344,551 |
Investment securities held to maturity, net of allowance for credit losses of $245 and $245 (fair value of $1,867,088 and $2,202,503) | 2,310,796 | 2,179,802 |
Loans held for sale | 25,394 | 11,187 |
Loans | 11,650,002 | 9,241,861 |
Less: Allowance for credit losses - loans | (226,702) | (195,397) |
Net loans | 11,423,300 | 9,046,464 |
Premises and equipment | 116,306 | 105,655 |
Federal Home Loan Bank stock | 38,056 | 28,736 |
Interest receivable | 71,605 | 57,187 |
Goodwill | 712,568 | 545,385 |
Other intangibles | 38,145 | 25,475 |
Cash surrender value of life insurance | 306,932 | 291,041 |
Other real estate owned | 6,454 | 558 |
Tax asset, deferred and receivable | 142,110 | 35,641 |
Other assets | 244,222 | 140,167 |
TOTAL ASSETS | 17,718,985 | 15,453,149 |
Deposits: | ||
Noninterest-bearing | 3,356,651 | 2,709,646 |
Interest-bearing | 11,078,174 | 10,022,931 |
Total Deposits | 14,434,825 | 12,732,577 |
Borrowings: | ||
Federal funds purchased | 185,000 | 0 |
Securities sold under repurchase agreements | 194,482 | 181,577 |
Federal Home Loan Bank advances | 643,769 | 334,055 |
Subordinated debentures and other borrowings | 151,301 | 118,618 |
Total Borrowings | 1,174,552 | 634,250 |
Interest payable | 4,971 | 2,762 |
Other liabilities | 197,971 | 170,989 |
Total Liabilities | 15,812,319 | 13,540,578 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, $0.125 stated value: Authorized - 100,000,000 shares Issued and outstanding - 59,145,414 and 53,410,411 shares | 7,393 | 6,676 |
Additional paid-in capital | 1,226,695 | 985,818 |
Retained earnings | 961,542 | 864,839 |
Accumulated other comprehensive income (loss) | (314,089) | 55,113 |
Total Stockholders' Equity | 1,906,666 | 1,912,571 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 17,718,985 | 15,453,149 |
Cumulative Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock, $1,000 par value, $1,000 liquidation value: Authorized - 600 cumulative shares Issued and outstanding - 125 cumulative shares Preferred Stock, Series A, no par value, $2,500 liquidation preference: Authorized - 10,000 non-cumulative perpetual shares Issued and outstanding - 10,000 non-cumulative perpetual shares | 125 | 125 |
Series A Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock, $1,000 par value, $1,000 liquidation value: Authorized - 600 cumulative shares Issued and outstanding - 125 cumulative shares Preferred Stock, Series A, no par value, $2,500 liquidation preference: Authorized - 10,000 non-cumulative perpetual shares Issued and outstanding - 10,000 non-cumulative perpetual shares | $ 25,000 | $ 0 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for credit losses | $ 245 | $ 245 |
Investment securities held to maturity - fair value | $ 1,867,088 | $ 2,202,503 |
Common Stock, stated value (in dollars per share) | $ 0.125 | $ 0.125 |
Common Stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 59,145,414 | 53,410,411 |
Common Stock, outstanding (in shares) | 59,145,414 | 53,410,411 |
Cumulative Preferred Stock | ||
Preferred Stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, authorized (in shares) | 600 | 600 |
Preferred Stock, issued (in shares) | 125 | 125 |
Preferred Stock, outstanding (in shares) | 125 | 125 |
Series A Preferred Stock | ||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, liquidation value (in dollars per share) | $ 2,500 | $ 2,500 |
Preferred Stock, authorized (in shares) | 10,000 | 10,000 |
Preferred Stock, issued (in shares) | 10,000 | 10,000 |
Preferred Stock, outstanding (in shares) | 10,000 | 10,000 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loans receivable: | ||||
Taxable | $ 128,504 | $ 85,319 | $ 314,366 | $ 257,426 |
Tax exempt | 6,500 | 5,591 | 18,194 | 16,475 |
Investment securities: | ||||
Taxable | 10,055 | 7,788 | 28,937 | 21,923 |
Tax exempt | 17,261 | 14,464 | 50,348 | 39,920 |
Deposits with financial institutions | 704 | 218 | 1,544 | 461 |
Federal Home Loan Bank stock | 314 | 168 | 635 | 434 |
Total Interest Income | 163,338 | 113,548 | 414,024 | 336,639 |
INTEREST EXPENSE | ||||
Deposits | 16,644 | 5,707 | 29,423 | 17,730 |
Federal funds purchased | 418 | 0 | 494 | 4 |
Securities sold under repurchase agreements | 372 | 77 | 595 | 239 |
Federal Home Loan Bank advances | 3,493 | 1,389 | 6,485 | 4,283 |
Subordinated debentures and other borrowings | 2,105 | 1,660 | 5,780 | 4,976 |
Total Interest Expense | 23,032 | 8,833 | 42,777 | 27,232 |
NET INTEREST INCOME | 140,306 | 104,715 | 371,247 | 309,407 |
Provision for credit losses | 0 | 0 | 16,755 | 0 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 140,306 | 104,715 | 354,492 | 309,407 |
NON-INTEREST INCOME | ||||
Net gains and fees on sales of loans | 2,543 | 3,955 | 7,968 | 16,266 |
Increase in cash surrender value of life insurance | 1,376 | 1,198 | 3,831 | 3,592 |
Gains on life insurance benefits | 5,279 | 1,270 | 5,828 | 1,417 |
Net realized gains on sales of available for sale securities | 481 | 1,756 | 1,137 | 5,316 |
Other income (loss) | (425) | 1,144 | 1,257 | 2,393 |
Total Non-Interest Income | 29,617 | 28,501 | 83,791 | 83,476 |
NON-INTEREST EXPENSES | ||||
Salaries and employee benefits | 56,002 | 43,314 | 154,562 | 124,563 |
Net occupancy | 6,738 | 5,576 | 19,573 | 17,682 |
Equipment | 5,997 | 4,529 | 17,797 | 14,407 |
Marketing | 2,401 | 1,676 | 4,551 | 3,922 |
Outside data processing fees | 6,827 | 4,794 | 16,071 | 13,736 |
Printing and office supplies | 472 | 265 | 1,198 | 861 |
Intangible asset amortization | 2,303 | 1,463 | 5,972 | 4,284 |
FDIC assessments | 2,824 | 1,552 | 7,940 | 4,381 |
Other real estate owned and foreclosure expenses | 328 | (91) | 626 | 821 |
Professional and other outside services | 4,461 | 2,767 | 17,681 | 8,286 |
Other expenses | 8,025 | 5,539 | 20,045 | 13,834 |
Total Non-Interest Expenses | 96,378 | 71,384 | 266,016 | 206,777 |
INCOME BEFORE INCOME TAX | 73,545 | 61,832 | 172,267 | 186,106 |
Income tax expense | 9,793 | 9,062 | 20,938 | 28,308 |
Total reclassifications for the period, net of tax | 63,752 | 52,770 | 151,329 | 157,798 |
Preferred stock dividends | 469 | 0 | 938 | 0 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 63,283 | $ 52,770 | $ 150,391 | $ 157,798 |
Per Share Data: | ||||
Basic Net Income Available to Common Stockholders (in dollars per share) | $ 1.08 | $ 0.98 | $ 2.63 | $ 2.93 |
Diluted Net Income Available to Common Stockholders (in dollars per share) | 1.08 | 0.98 | 2.62 | 2.92 |
Cash Dividends Paid (in dollars per share) | $ 0.32 | $ 0.29 | $ 0.93 | $ 0.84 |
Average Diluted Common Shares Outstanding (in shares) | 59,338,729 | 53,959,765 | 57,467,559 | 54,093,063 |
Service charges on deposit accounts | ||||
NON-INTEREST INCOME | ||||
Other income | $ 7,165 | $ 6,249 | $ 21,274 | $ 17,109 |
Fiduciary and wealth management fees | ||||
NON-INTEREST INCOME | ||||
Other income | 7,221 | 7,352 | 22,187 | 21,284 |
Card payment fees | ||||
NON-INTEREST INCOME | ||||
Other income | 4,776 | 4,156 | 15,674 | 12,682 |
Derivative hedge fees | ||||
NON-INTEREST INCOME | ||||
Other income | 700 | 1,028 | 3,062 | 2,288 |
Other customer fees | ||||
NON-INTEREST INCOME | ||||
Other income | $ 501 | $ 393 | $ 1,573 | $ 1,129 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 63,752 | $ 52,770 | $ 151,329 | $ 157,798 |
Unrealized gains/(losses) on securities available-for-sale: | ||||
Unrealized holding gain/(loss) arising during the period | (145,935) | (24,048) | (467,210) | (39,721) |
Reclassification adjustment for losses/(gains) included in net income | (481) | (1,756) | (1,137) | (5,316) |
Tax effect | 30,747 | 5,419 | 98,353 | 9,458 |
Net of tax | (115,669) | (20,385) | (369,994) | (35,579) |
Unrealized gain/(loss) on cash flow hedges: | ||||
Unrealized holding gain/(loss) arising during the period | 94 | (20) | 507 | 22 |
Reclassification adjustment for losses/(gains) included in net income | 78 | 266 | 496 | 779 |
Tax effect | (36) | (52) | (211) | (169) |
Net of tax | 136 | 194 | 792 | 632 |
Total other comprehensive income/(loss), net of tax | (115,533) | (20,191) | (369,202) | (34,947) |
Comprehensive income/(loss) | $ (51,781) | $ 32,579 | $ (217,873) | $ 122,851 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative effect of ASC 326 adoption | Adjusted balance | Preferred Stock Cumulative Preferred Stock | Preferred Stock Cumulative Preferred Stock Adjusted balance | Preferred Stock Non-Cumulative Preferred Stock | Common Stock | Common Stock Adjusted balance | Additional Paid-in Capital | Additional Paid-in Capital Adjusted balance | Retained Earnings | Retained Earnings Cumulative effect of ASC 326 adoption | Retained Earnings Adjusted balance | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Adjusted balance |
Beginning balance (in shares) at Dec. 31, 2020 | 125 | 125 | 53,922,359 | 53,922,359 | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,875,645 | $ (68,040) | $ 1,807,605 | $ 125 | $ 125 | $ 6,740 | $ 6,740 | $ 1,005,366 | $ 1,005,366 | $ 788,578 | $ (68,040) | $ 720,538 | $ 74,836 | $ 74,836 | |
Comprehensive income (loss): | |||||||||||||||
Net income | 157,798 | 157,798 | |||||||||||||
Other comprehensive (loss) income, net of tax | (34,947) | (34,947) | |||||||||||||
Cash dividends on common stock | (45,608) | (45,608) | |||||||||||||
Repurchase of common stock (in shares) | (529,498) | ||||||||||||||
Repurchases of common stock | (20,807) | $ (66) | (20,741) | ||||||||||||
Share-based compensation (in shares) | 94,260 | ||||||||||||||
Share-based compensation | 3,615 | $ 12 | 3,603 | ||||||||||||
Stock issued under employee benefit plans (in shares) | 12,006 | ||||||||||||||
Stock issued under employee benefit plans | 445 | $ 2 | 443 | ||||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 32,322 | ||||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | 1,405 | $ 4 | 1,401 | ||||||||||||
Stock options exercised (in shares) | 17,300 | ||||||||||||||
Stock options exercised | 198 | $ 2 | 196 | ||||||||||||
Restricted shares withheld for taxes (in shares) | (38,004) | ||||||||||||||
Restricted shares withheld for taxes | (1,614) | $ (5) | (1,609) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 125 | 53,510,745 | |||||||||||||
Ending balance at Sep. 30, 2021 | 1,868,090 | $ 125 | $ 6,689 | 988,659 | 832,728 | 39,889 | |||||||||
Beginning balance (in shares) at Jun. 30, 2021 | 125 | 53,972,386 | |||||||||||||
Beginning balance at Jun. 30, 2021 | 1,871,800 | $ 125 | $ 6,747 | 1,009,182 | 795,666 | 60,080 | |||||||||
Comprehensive income (loss): | |||||||||||||||
Net income | 52,770 | 52,770 | |||||||||||||
Other comprehensive (loss) income, net of tax | (20,191) | (20,191) | |||||||||||||
Cash dividends on common stock | (15,708) | (15,708) | |||||||||||||
Repurchase of common stock (in shares) | (529,498) | ||||||||||||||
Repurchases of common stock | (20,807) | $ (66) | (20,741) | ||||||||||||
Share-based compensation (in shares) | 89,600 | ||||||||||||||
Share-based compensation | 1,217 | $ 11 | 1,206 | ||||||||||||
Stock issued under employee benefit plans (in shares) | 3,892 | ||||||||||||||
Stock issued under employee benefit plans | 139 | $ 1 | 138 | ||||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 12,102 | ||||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | 474 | $ 1 | 473 | ||||||||||||
Restricted shares withheld for taxes (in shares) | (37,737) | ||||||||||||||
Restricted shares withheld for taxes | (1,604) | $ (5) | (1,599) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 125 | 53,510,745 | |||||||||||||
Ending balance at Sep. 30, 2021 | 1,868,090 | $ 125 | $ 6,689 | 988,659 | 832,728 | 39,889 | |||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 125 | 0 | 53,410,411 | ||||||||||||
Beginning balance at Dec. 31, 2021 | 1,912,571 | $ 125 | $ 0 | $ 6,676 | 985,818 | 864,839 | 55,113 | ||||||||
Comprehensive income (loss): | |||||||||||||||
Net income | 151,329 | 151,329 | |||||||||||||
Other comprehensive (loss) income, net of tax | (369,202) | (369,202) | |||||||||||||
Cash dividends on preferred stock | (938) | (938) | |||||||||||||
Cash dividends on common stock | (53,688) | (53,688) | |||||||||||||
Issuance of common stock related to acquisition (in shares) | 10,000 | 5,588,962 | |||||||||||||
Issuance of stock related to acquisition | 262,389 | $ 25,000 | $ 699 | 236,690 | |||||||||||
Share-based compensation (in shares) | 112,443 | ||||||||||||||
Share-based compensation | 3,430 | $ 14 | 3,416 | ||||||||||||
Stock issued under employee benefit plans (in shares) | 15,072 | ||||||||||||||
Stock issued under employee benefit plans | 520 | $ 2 | 518 | ||||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 37,693 | ||||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | $ 1,536 | $ 5 | 1,531 | ||||||||||||
Stock options exercised (in shares) | 20,095 | 20,095 | |||||||||||||
Stock options exercised | $ 336 | $ 3 | 333 | ||||||||||||
Restricted shares withheld for taxes (in shares) | (39,262) | ||||||||||||||
Restricted shares withheld for taxes | (1,617) | $ (6) | (1,611) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 125 | 10,000 | 59,145,414 | ||||||||||||
Ending balance at Sep. 30, 2022 | 1,906,666 | $ 125 | $ 25,000 | $ 7,393 | 1,226,695 | 961,542 | (314,089) | ||||||||
Beginning balance (in shares) at Jun. 30, 2022 | 125 | 10,000 | 59,059,866 | ||||||||||||
Beginning balance at Jun. 30, 2022 | 1,977,641 | $ 125 | $ 25,000 | $ 7,383 | 1,226,378 | 917,311 | (198,556) | ||||||||
Comprehensive income (loss): | |||||||||||||||
Net income | 63,752 | 63,752 | |||||||||||||
Other comprehensive (loss) income, net of tax | (115,533) | (115,533) | |||||||||||||
Cash dividends on preferred stock | (469) | (469) | |||||||||||||
Cash dividends on common stock | (19,052) | (19,052) | |||||||||||||
Share-based compensation (in shares) | 105,409 | ||||||||||||||
Share-based compensation | 1,186 | $ 13 | 1,173 | ||||||||||||
Stock issued under employee benefit plans (in shares) | 6,017 | ||||||||||||||
Stock issued under employee benefit plans | 203 | $ 1 | 202 | ||||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 12,769 | ||||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | 528 | $ 2 | 526 | ||||||||||||
Restricted shares withheld for taxes (in shares) | (38,647) | ||||||||||||||
Restricted shares withheld for taxes | (1,590) | $ (6) | (1,584) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 125 | 10,000 | 59,145,414 | ||||||||||||
Ending balance at Sep. 30, 2022 | $ 1,906,666 | $ 125 | $ 25,000 | $ 7,393 | $ 1,226,695 | $ 961,542 | $ (314,089) |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||
Cash dividends on preferred stock (in dollars per share) | $ 46.88 | $ 93.76 | |
Cash dividends on common stock (in dollars per share) | $ 0.32 | $ 0.93 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flow From Operating Activities: | ||
Net income | $ 151,329 | $ 157,798 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 16,755 | 0 |
Depreciation and amortization | 8,802 | 8,087 |
Change in deferred taxes | 2,676 | (703) |
Share-based compensation | 3,430 | 3,615 |
Loans originated for sale | (178,972) | (410,858) |
Proceeds from sales of loans held for sale | 176,567 | 422,555 |
Gains on sales of loans held for sale | (3,851) | (13,721) |
Gains on sales of securities available for sale | (1,137) | (5,316) |
Increase in cash surrender of life insurance | (3,831) | (3,592) |
Gains on life insurance benefits | (5,828) | (1,417) |
Change in interest receivable | (7,230) | 869 |
Change in interest payable | 1,144 | 449 |
Other adjustments | (15,170) | 3,761 |
Net cash provided by operating activities | 144,684 | 161,527 |
Cash Flows from Investing Activities: | ||
Net change in interest-bearing deposits | 294,561 | 22,858 |
Purchases of: | ||
Securities available for sale | (450,168) | (807,833) |
Securities held to maturity | (288,094) | (1,017,274) |
Proceeds from sales of securities available for sale | 524,688 | 157,776 |
Proceeds from maturities of: | ||
Securities available for sale | 181,997 | 216,135 |
Securities held to maturity | 127,582 | 170,937 |
Change in Federal Home Loan Bank stock | 2,368 | 0 |
Net change in loans | (803,746) | 126,523 |
Net cash and cash equivalents received (paid) in acquisition | 137,780 | (2,933) |
Proceeds from the sale of other real estate owned | 495 | 678 |
Proceeds from life insurance benefits | 23,911 | 5,929 |
Proceeds from mortgage portfolio loan sale | 0 | 76,067 |
Other adjustments | (9,003) | (8,121) |
Net cash used in investing activities | (257,629) | (1,059,258) |
Net change in : | ||
Demand and savings deposits | (29,993) | 1,136,017 |
Certificates of deposit and other time deposits | (198,549) | (148,938) |
Borrowings | 913,330 | 45,482 |
Repayment of borrowings | (567,223) | (94,098) |
Cash dividends on preferred stock | (938) | 0 |
Cash dividends on common stock | (53,688) | (45,608) |
Stock issued under employee benefit plans | 520 | 445 |
Stock issued under dividend reinvestment and stock purchase plans | 1,536 | 1,405 |
Stock options exercised | 336 | 198 |
Repurchase of common stock | 0 | (20,807) |
Net cash provided by financing activities | 65,331 | 874,096 |
Net Change in Cash and Cash Equivalents | (47,614) | (23,635) |
Cash and Cash Equivalents, January 1 | 167,146 | 192,896 |
Cash and Cash Equivalents, September 30 | 119,532 | 169,261 |
Additional cash flow information: | ||
Interest paid | 40,568 | 26,783 |
Income tax paid | 12,102 | 23,396 |
Loans transferred to other real estate owned | 6,418 | 292 |
Fixed assets transferred to other real estate owned | 1,398 | 6,282 |
Non-cash investing activities using trade date accounting | 41,106 | 67,811 |
ROU assets obtained in exchange for new operating lease liabilities | 9,081 | 2,591 |
In conjunction with the acquisitions, liabilities were assumed as follows: | ||
Fair value of assets acquired | 2,510,576 | 4,041 |
Cash paid in acquisition | (79,324) | (3,225) |
Liabilities assumed | 2,168,863 | 816 |
Common Stock | ||
In conjunction with the acquisitions, liabilities were assumed as follows: | ||
Less: common stock and preferred stock issued | 237,389 | 0 |
Preferred Stock | ||
In conjunction with the acquisitions, liabilities were assumed as follows: | ||
Less: common stock and preferred stock issued | $ 25,000 | $ 0 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Financial Statement Preparation The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2021, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission. The results of operations for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the year. Reclassifications have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of financial instruments. Significant Accounting Policies The significant accounting policies followed by the Corporation and its wholly-owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying Consolidated Condensed Financial Statements. The Corporation did not adopt any new accounting pronouncements during the first nine months of 2022. The Corporation continually monitors potential accounting pronouncements and the following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: New Accounting Pronouncements Not Yet Adopted FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary - The FASB issued ASU No. 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates are widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Corporation is assessing ASU 2020-04 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. FASB Accounting Standards Updates - No. 2021-01 - Reference Rate Reform (Topic 848): Scope Summary - The FASB has published ASU 2021-01, Reference Rate Reform. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this Update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is assessing ASU 2021-01 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. FASB Accounting Standards Updates - No. 2021-08 - Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Summary - The FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , that addresses diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with Topic 606 , Revenue from Contracts with Customers , at fair value on the acquisition date. The FASB indicates that some stakeholders indicated that it is unclear how an acquirer should evaluate whether to recognize a contract liability from a revenue contract with a customer acquired in a business combination after Topic 606 is adopted. Furthermore, it was identified that under current practice, the timing of payment (payment terms) of a revenue contract may subsequently affect the post-acquisition revenue recognized by the acquirer. To address this, the ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Finally, the amendments in the ASU improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. For public business entities, the amendments are effective for fiscal years beginning after December 31, 2022, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period or early application, and (2) prospectively to all business combinations that occur on or after the date of initial application. The Corporation is reviewing the terms of this guidance, but adoption of the standard is not expected to have a significant impact on the Corporation's financial statements or disclosures. FASB Accounting Standards Updates - Accounting Standards Update No. 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Summary - The FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings ("TDRs") and Vintage Disclosures , which is intended to improve the usefulness of information provided to investors about certain loan refinancings, restructurings, and writeoffs. The amendments in the new ASU eliminate the accounting guidance for TDRs by creditors that have adopted CECL while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require that a public business entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases. Since the Corporation adopted CECL on January 1, 2021, the amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Corporation is assessing ASU 2022-02 and its impact on the Corporation's disclosures. The Corporation expects to adopt this ASU in the first quarter of 2023. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Level One Bancorp, Inc. On April 1, 2022, the Corporation acquired 100 percent of Level One Bancorp, Inc. ("Level One"). Level One, a Michigan corporation, merged with and into the Corporation (the "Merger"), whereupon the separate corporate existence of Level One ceased and the Corporation survived. Immediately following the Merger, Level One's wholly owned subsidiary, Level One Bank, merged with and into the Bank, with the Bank as the surviving bank. Level One was headquartered in Farmington Hills, Michigan and had 17 banking centers serving the Michigan market. Pursuant to the merger agreement, each common shareholder of Level One received, for each outstanding share of Level One common stock, (a) a 0.7167 share (the "Exchange Ratio") of the Corporation's common stock, in a tax-free exchange, and (b) a cash payment of $10.17. Fractional shares of the Corporation's common stock were not issued in respect of fractional interests arising from the Exchange Ratio but were paid in cash pursuant to the merger agreement. The Corporation issued 5.6 million shares of the Corporation's common stock and paid $79.3 million in cash, in exchange for all outstanding shares of Level One common stock. Additionally, each outstanding share of 7.5 percent non-cumulative perpetual preferred stock, Series B, of Level One was exchanged for one share of a newly created 7.5 percent non-cumulative perpetual preferred stock, Series A, of First Merchants with a liquidation preference of $2,500 per share. As a result, the Corporation issued 10,000 shares of Series A preferred stock at the acquisition date. Likewise, each outstanding Level One depositary share representing a 1/100th interest in a share of the Level One preferred stock was converted into a depositary share of the Corporation representing a 1/100th interest in a share of its newly issued preferred stock (Nasdaq: FRMEP). The Corporation engaged in this transaction with the expectation that it would be accretive to income and add to the existing market area in Michigan that has a demographic profile consistent with many of the current Midwest markets served by the Bank. Goodwill resulted from this transaction due to the expected synergies and economies of scale. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Level One acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Fair Value Cash and due from banks $ 217,104 Investment securities 370,658 Loans held for sale 7,951 Loans 1,626,857 Allowance for credit losses - loans (16,599) Premises and equipment 11,848 Federal Home Loan Bank stock 11,688 Interest receivable 7,188 Cash surrender value of life insurance 30,143 Tax asset, deferred and receivable 16,223 Other assets 41,690 Deposits (1,930,790) Securities sold under repurchase agreements (1,521) Federal Home Loan Bank advances (160,043) Subordinated debentures (32,631) Interest payable (1,065) Other liabilities (42,813) Net tangible assets acquired 155,888 Other intangibles 18,642 Goodwill 167,183 Purchase price $ 341,713 The Corporation performed an evaluation of the loan portfolio in which there were loans that, at acquisition, had more than an insignificant amount of credit quality deterioration and were classified as purchased credit deteriorated ("PCD"). Details of the PCD loans are included in NOTE 4. LOANS AND ALLOWANCE of these Notes to Consolidated Condensed Financial Statements. Of the total purchase price, $18.6 million has been allocated to other intangible assets. Approximately $17.2 million was allocated to a core deposit intangible, which will be amortized over its estimated life of 10 years. Approximately $1.4 million was allocated to a non-compete intangible, which will be amortized over its estimated life of 2 years. The remaining purchase price has been allocated to goodwill, which is not deductible for tax purposes. Hoosier Trust Company On April 1, 2021, the Bank acquired 100 percent of Hoosier Trust Company ("Hoosier") through a merger of Hoosier with and into the Bank. The consideration paid to shareholders of Hoosier at closing was $3,225,000 in cash. Prior to the acquisition, Hoosier was an Indiana corporate trust company, headquartered in Indianapolis, Indiana, with approximately $290 million in assets under management. Hoosier’s sole office is now being operated by the Bank as a limited service trust office. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair value on the date of the acquisition. Based on the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Hoosier acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 292 Other assets 35 Other liabilities (816) Net tangible assets acquired (489) Customer relationship intangible 2,247 Goodwill 1,467 Purchase price $ 3,225 Pro Forma Financial Information The results of operations of Level One have been included in the Corporation's consolidated financial statements since the acquisition date. The following schedule includes pro forma results for the three and nine months ended September 30, 2022 and the annual period ended December 31, 2021 as if the Level One acquisition occurred as of the beginning of the periods presented. Pro forma financial information of the Hoosier acquisition is not included in the table below as it is deemed immaterial. Three Months Ended Nine Months Ended Total revenue (net interest income plus other income) $ 169,923 $ 476,074 Net income $ 63,752 $ 148,280 Net income available to common stockholders $ 63,283 $ 146,873 Earnings per common share: Basic $ 1.08 $ 2.49 Diluted $ 1.08 $ 2.48 2021 Total revenue (net interest income plus other income) $ 621,946 Net income $ 237,031 Net income available to common stockholders $ 235,156 Earnings per common share: Basic $ 3.96 Diluted $ 3.95 The pro forma information includes adjustments for interest income on loans and investment securities, interest expense on deposits and borrowings, premises expense for the banking centers acquired and amortization of intangibles arising from the transaction and the related income tax effects. The pro forma information for the three months ended September 30, 2022 includes operating revenue of $18.3 million from Level One, and $2.6 million, net of tax, of acquisition-related expenses. For the nine months ended September 30, 2022, the pro forma includes operating revenue of $38.7 million from Level One since the date of acquisition. Additionally, $12.2 million, net of tax, of acquisition-related expenses were included in the nine months ended September 30, 2022 proforma information. The pro forma information for the year ended December 31, 2021 includes operating results from Level One as if the acquisition occurred at the beginning of the year. The pro forma information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following table summarizes the amortized cost, gross unrealized gains and losses and approximate fair value of investment securities available for sale as of September 30, 2022 and December 31, 2021. Amortized Gross Unrealized Gross Unrealized Fair Available for sale at September 30, 2022 U.S. Treasury $ 2,107 $ — $ 40 $ 2,067 U.S. Government-sponsored agency securities 121,907 — 16,141 105,766 State and municipal 1,611,859 93 266,996 1,344,956 U.S. Government-sponsored mortgage-backed securities 627,583 1 108,795 518,789 Corporate obligations 13,036 — 642 12,394 Total available for sale $ 2,376,492 $ 94 $ 392,614 $ 1,983,972 Amortized Gross Unrealized Gross Unrealized Fair Available for sale at December 31, 2021 U.S. Treasury $ 1,000 $ — $ 1 $ 999 U.S. Government-sponsored agency securities 96,244 437 1,545 95,136 State and municipal 1,495,696 81,734 898 1,576,532 U.S. Government-sponsored mortgage-backed securities 671,684 7,109 11,188 667,605 Corporate obligations 4,031 256 8 4,279 Total available for sale $ 2,268,655 $ 89,536 $ 13,640 $ 2,344,551 The following table summarizes the amortized cost, gross unrealized gains and losses, approximate fair value and allowance for credit losses on investment securities held to maturity as of September 30, 2022 and December 31, 2021. Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at September 30, 2022 U.S. Government-sponsored agency securities $ 399,089 $ — $ 399,089 $ — $ 66,514 $ 332,575 State and municipal 1,114,312 245 1,114,067 113 256,834 857,591 U.S. Government-sponsored mortgage-backed securities 796,140 — 796,140 — 120,709 675,431 Foreign investment 1,500 — 1,500 — 9 1,491 Total held to maturity $ 2,311,041 $ 245 $ 2,310,796 $ 113 $ 444,066 $ 1,867,088 Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at December 31, 2021 U.S. Government-sponsored agency securities $ 371,457 $ — $ 371,457 $ 226 $ 7,268 $ 364,415 State and municipal 1,057,301 245 1,057,056 29,593 2,170 1,084,724 U.S. Government-sponsored mortgage-backed securities 749,789 — 749,789 7,957 5,881 751,865 Foreign investment 1,500 — 1,500 — 1 1,499 Total held to maturity $ 2,180,047 $ 245 $ 2,179,802 $ 37,776 $ 15,320 $ 2,202,503 Accrued interest on investment securities available for sale and held to maturity at September 30, 2022 and December 31, 2021 of $27.5 million and $26.8 million, respectively, are included in the Interest Receivable line on the Corporation's Consolidated Condensed Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of available for sale and held to maturity securities presented above. In determining the allowance for credit losses on investment securities available for sale that are in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the income statement. For investment securities available for sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Corporation considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive income. Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the absence of any allowance, written down through the income statement when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Corporation did not record an allowance for credit losses on its investment securities available for sale as the unrealized losses were attributable to changes in interest rates, not credit quality. The allowance for credit losses on investment securities held to maturity is a contra asset-valuation account that is deducted from the amortized cost basis of investment securities held to maturity to present the net amount expected to be collected. Investment securities held to maturity are charged off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss. The Corporation measures expected credit losses on investment securities held to maturity on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities held to maturity from the estimate of credit losses. With regard to U.S. Government-sponsored agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to securities issued by states and municipalities and other investment securities held to maturity, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Corporation's portfolio have been insignificant. Furthermore, as of September 30, 2022, there were no past due principal and interest payments associated with these securities. At CECL adoption, an allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. The balance of the allowance for credit losses remained unchanged at $245,000 as of September 30, 2022. On a quarterly basis, the Corporation monitors the credit quality of investment securities held to maturity through the use of credit ratings. The following table summarizes the amortized cost of investment securities held to maturity at September 30, 2022, aggregated by credit quality indicator. Held to Maturity State and municipal Other Total Credit Rating: Aaa $ 101,372 $ 70,582 $ 171,954 Aa1 162,890 — 162,890 Aa2 185,511 — 185,511 Aa3 135,285 — 135,285 A1 131,413 — 131,413 A2 10,167 — 10,167 A3 10,115 — 10,115 Non-rated 377,559 1,126,147 1,503,706 Total $ 1,114,312 $ 1,196,729 $ 2,311,041 The following tables summarize, as of September 30, 2022 and December 31, 2021, investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position. Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at September 30, 2022 U.S. Treasury $ 2,067 $ 40 $ — $ — $ 2,067 $ 40 U.S. Government-sponsored agency securities 67,039 7,453 38,727 8,688 105,766 16,141 State and municipal 1,229,682 234,780 90,765 32,216 1,320,447 266,996 U.S. Government-sponsored mortgage-backed securities 206,559 23,141 312,109 85,654 518,668 108,795 Corporate obligations 12,363 642 — — 12,363 642 Total investment securities available for sale $ 1,517,710 $ 266,056 $ 441,601 $ 126,558 $ 1,959,311 $ 392,614 Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at December 31, 2021 U.S. Treasury $ 999 $ 1 $ — $ — $ 999 $ 1 U.S. Government-sponsored agency securities 68,524 1,545 — — 68,524 1,545 State and municipal 138,187 894 505 4 138,692 898 U.S. Government-sponsored mortgage-backed securities 427,687 10,791 8,324 397 436,011 11,188 Corporate obligations 992 8 — — 992 8 Total investment securities available for sale $ 636,389 $ 13,239 $ 8,829 $ 401 $ 645,218 $ 13,640 The following table summarizes investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and the number of securities in the portfolio for the periods indicated. Gross Number of Securities Investment securities available for sale at September 30, 2022 U.S. Treasury $ 40 4 U.S. Government-sponsored agency securities 16,141 17 State and municipal 266,996 1074 U.S. Government-sponsored mortgage-backed securities 108,795 176 Corporate obligations 642 10 Total investment securities available for sale $ 392,614 1,281 Gross Number of Securities Investment securities available for sale at December 31, 2021 U.S. Treasury $ 1 1 U.S. Government-sponsored agency securities 1,545 8 State and municipal 898 103 U.S. Government-sponsored mortgage-backed securities 11,188 48 Corporate obligations 8 1 Total investment securities available for sale $ 13,640 161 The unrealized losses in the Corporation’s investment portfolio were the result of changes in interest rates and not credit quality. As a result, the Corporation expects to recover the amortized cost basis over the term of the securities. The Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. Certain investment securities available for sale are reported in the financial statements at an amount less than their historical cost as indicated in the table below. September 30, 2022 December 31, 2021 Investments available for sale reported at less than historical cost: Historical cost $ 2,351,925 $ 658,858 Fair value 1,959,311 645,218 Gross unrealized losses $ 392,614 $ 13,640 Percent of the Corporation's investments available for sale 98.8 % 27.5 % In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level 1 and Level 2 in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis; and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. The amortized cost and fair value of investment securities available for sale and held to maturity at September 30, 2022 and December 31, 2021, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at September 30, 2022 Due in one year or less $ 4,646 $ 4,617 $ 6,428 $ 6,439 Due after one through five years 14,329 13,776 71,303 67,777 Due after five through ten years 176,931 161,885 156,564 139,284 Due after ten years 1,553,003 1,284,905 1,280,606 978,157 1,748,909 1,465,183 1,514,901 1,191,657 U.S. Government-sponsored mortgage-backed securities 627,583 518,789 796,140 675,431 Total investment securities $ 2,376,492 $ 1,983,972 $ 2,311,041 $ 1,867,088 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2021 Due in one year or less $ 6,954 $ 6,965 $ 6,971 $ 6,995 Due after one through five years 5,097 5,309 30,272 31,946 Due after five through ten years 120,460 126,816 177,203 180,129 Due after ten years 1,464,460 1,537,856 1,215,812 1,231,568 1,596,971 1,676,946 1,430,258 1,450,638 U.S. Government-sponsored mortgage-backed securities 671,684 667,605 749,789 751,865 Total investment securities $ 2,268,655 $ 2,344,551 $ 2,180,047 $ 2,202,503 Securities with a carrying value of approximately $965.8 million and $873.2 million were pledged at September 30, 2022 and December 31, 2021, respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. The book value of securities sold under agreements to repurchase amounted to $231.8 million at September 30, 2022 and $175.1 million at December 31, 2021. Gross gains and losses on the sales and redemptions of investment securities available for sale for the three and nine months ended September 30, 2022 and 2021 are shown below. Three Months Ended Nine Months Ended 2022 2021 2022 2021 Sales and redemptions of investment securities available for sale: Gross gains $ 495 $ 1,915 $ 1,176 $ 5,814 Gross losses 14 159 39 498 Net gains on sales and redemptions of investment securities available for sale $ 481 $ 1,756 $ 1,137 $ 5,316 |
LOANS AND ALLOWANCE
LOANS AND ALLOWANCE | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE | 90 Days or More Past Due Commercial and industrial loans $ 3,324,800 $ 3,554 $ 652 $ 1,523 $ 3,330,529 $ 141 Agricultural land, production and other loans to farmers 221,577 320 — 57 221,954 — Real estate loans: Construction 828,353 — — 570 828,923 570 Commercial real estate, non-owner occupied 2,294,231 — 152 4,889 2,299,272 — Commercial real estate, owner occupied 1,267,888 337 — 342 1,268,567 — Residential 1,974,219 4,386 6,938 5,125 1,990,668 — Home equity 613,749 2,689 766 4,415 621,619 53 Individuals' loans for household and other personal expenditures 172,012 415 796 2 173,225 — Public finance and other commercial loans 915,245 — — — 915,245 — Loans $ 11,612,074 $ 11,701 $ 9,304 $ 16,923 $ 11,650,002 $ 764 December 31, 2021 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,708,539 $ 2,602 $ 2,437 $ 987 $ 2,714,565 $ 675 Agricultural land, production and other loans to farmers 246,380 36 — 26 246,442 — Real estate loans: Construction 522,349 717 — — 523,066 — Commercial real estate, non-owner occupied 2,124,853 3,327 — 7,279 2,135,459 — Commercial real estate, owner occupied 985,785 643 — 292 986,720 — Residential 1,148,294 3,979 4,255 2,599 1,159,127 — Home equity 518,643 3,327 281 1,503 523,754 288 Individuals' loans for household and other personal expenditures 145,634 375 83 — 146,092 — Public finance and other commercial loans 806,636 — — — 806,636 — Loans $ 9,207,113 $ 15,006 $ 7,056 $ 12,686 $ 9,241,861 $ 963 Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in prior years, if any, is charged to the allowance for credit losses. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated: September 30, 2022 December 31, 2021 Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Commercial and industrial loans $ 2,945 $ 1,354 $ 7,598 $ 263 Agricultural land, production and other loans to farmers 57 — 631 524 Real estate loans: Construction — — 685 — Commercial real estate, non-owner occupied 20,189 288 23,029 6,133 Commercial real estate, owner occupied 4,997 3,471 411 — Residential 10,703 722 9,153 2,160 Home equity 4,607 — 1,552 — Individuals' loans for household and other personal expenditures 10 — 3 — Loans $ 43,508 $ 5,835 $ 43,062 $ 9,080 There was no interest income recognized on non-accrual loans for the three and nine months ended September 30, 2022 or 2021. Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses. The increase in collateral dependent loans of $46.2 million, mostly due to the commercial and industrial loan class, is primarily related to loans from the acquisition of Level One. September 30, 2022 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 43,740 $ 43,740 $ 13,040 Real estate loans: Construction — 2,447 — $ 2,447 1 Commercial real estate, non-owner occupied 27,705 — — $ 27,705 2,705 Commercial real estate, owner occupied 8,911 — — $ 8,911 916 Residential — 2,521 — $ 2,521 262 Home equity — 374 — $ 374 — Loans $ 36,616 $ 5,342 $ 43,740 $ 85,698 $ 16,924 December 31, 2021 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 8,075 $ 8,075 $ 2,672 Agricultural land, production and other loans to farmers 524 — 251 775 — Real estate loans: Construction — 685 — 685 82 Commercial real estate, non-owner occupied 23,652 — — 23,652 5,510 Commercial real estate, owner occupied 1,044 — — 1,044 — Residential — 4,906 — 4,906 305 Home equity — 394 — 394 64 Loans $ 25,220 $ 5,985 $ 8,326 $ 39,531 $ 8,633 In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a troubled debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be repaid. The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three and nine months ended September 30, 2022 and 2021. There were no troubled debt restructures that occurred in the three months ended September 30, 2022. Three Months Ended September 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Post - Modification Recorded Balance Number of Loans Real estate loans: Construction $ 16 $ — $ 16 $ 16 1 Commercial real estate, non owner occupied 12,922 12,976 — 12,976 1 Total $ 12,938 $ 12,976 $ 16 $ 12,992 2 Nine Months Ended September 30, 2022 Pre- Modification Recorded Balance Rate Modification Post - Modification Recorded Balance Number of Loans Real estate loans: Residential $ 53 $ 56 $ 56 1 Total $ 53 $ 56 $ 56 1 Nine Months Ended September 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 348 $ 348 $ — $ — $ 348 2 Real estate loans: Construction 16 — 16 — 16 1 Commercial real estate, non owner occupied 12,922 12,976 — — 12,976 1 Commercial real estate, owner occupied 21 — — 21 21 1 Residential 691 449 126 118 693 9 Total $ 13,998 $ 13,773 $ 142 $ 139 $ 14,054 14 Loans secured by residential real estate made up 100 percent of the post-modification balances of the troubled debt restructured loans that occurred during the nine months ended September 30, 2022. Loans secured by commercial real estate, non owner occupied made up 99.9 percent and 92.3 percent, respectively, of the post-modification balances that occurred during the three and nine months ended September 30, 2021. The following tables summarize troubled debt restructures that occurred during the twelve month ended September 30, 2021, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. There were no loans that subsequently defaulted during the three and nine months ended September 30, 2022. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 2 $ 160 2 $ 160 Real estate loans: Residential 5 599 5 599 Total 7 $ 759 7 $ 759 Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for apparent loss and may result in a specific reserve allocation in the allowance for credit losses. Commercial troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of allowance for credit losses through the loan segment loss analysis. For all consumer loan modifications, an evaluation to identify if a troubled debt restructure has occurred is performed prior to making the modification. Any subsequent deterioration is addressed through the charge-off process or through a specific reserve allocation included in the allowance for credit losses. Consumer troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of the allowance for credit losses through the loan segment loss analysis. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.0 million and $3.9 million at September 30, 2022 and 2021. Purchased Credit Deteriorated Loans The Corporation acquired Level One on April 1, 2022 and performed an evaluation of the loan portfolio in which there were loans that, at acquisition, had more than an insignificant amount of credit quality deterioration. The carrying amount of those loans is shown in the table below: Level One Purchase price of loans at acquisition $ 41,347 CECL Day 1 PCD ACL 16,599 Par value of acquired loans at acquisition $ 57,946 Allowance for Credit Losses on Loans The Allowance for Credit Losses on Loans ("ACL - Loans") is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge offs for loans, net of recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance represents the Corporation’s best estimate of current expected credit losses on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The current expected credit loss ("CECL") calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the allowance for credit losses is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date. In calculating the allowance for credit losses, the loan portfolio was pooled into ten loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Corporation analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. The expected credit losses are measured over the life of each loan segment utilizing the Probability of Default / Loss Given Default methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with unfunded loan commitments incorporating expected utilization rates. The Corporation sub-segmented certain commercial portfolios by risk level and certain consumer portfolios by delinquency status where appropriate. The Corporation utilized a four-quarter reasonable and supportable economic forecast period followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the loans. Econometric modeling was performed using historical default rates and a selection of economic forecast scenarios published by Moody’s to develop a range of estimated credit losses for which to determine the best credit loss estimate within. Macroeconomic factors utilized in the modeling process include the national unemployment rate, BBB US corporate index, CRE price index and the home price index. The Corporation qualitatively adjusts model results for risk factors that are not inherently considered in the quantitative modeling process, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other things, the impact of (i) changes in the nature and volume of the loan portfolio, (ii) changes in the existence, growth and effect of any concentrations in credit, (iii) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending management and staff, and (vi) other environmental factors of a borrower such as regulatory, legal and technological considerations, as well as competition. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the Small Business Administration ("SBA"). The risk characteristics of the Corporation’s portfolio segments are as follows: Commercial Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Corporation monitors commercial real estate loans based on collateral and risk grade criteria, as well as the levels of owner-occupied versus non-owner occupied loans. Construction Construction loans are underwritten utilizing a combination of tools and techniques including feasibility and market studies, independent appraisals and appraisal reviews, absorption and interest rate sensitivity analysis as well as the financial analysis of the developer and all guarantors. Construction loans are monitored by either in house or third party inspectors limiting advances to a percentage of costs or stabilized project value. These loans frequently involve the disbursement of significant funds with the repayment dependent upon the successful completion and, where necessary, the future stabilization of the project. The predominant inherent risk of this portfolio is associated with the borrower's ability to successfully complete a project on time, within budget and stabilize the projected as originally projected. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The allowance for credit losses increased $427,000 during the three months ended September 30, 2022. The allowance for credit losses increased $31.3 million for the nine months ended September 30, 2022, primarily due to $16.6 million of allowance for credit losses on PCD loans acquired in the Level One acquisition established through accounting adjustments on the acquisition date. In addition, a provision of $14.0 million was recorded to establish an allowance for credit losses on non-PCD loans acquired in the Level One acquisition. The allowance also includes net recoveries of $427,000 and $751,000 for the three and nine months ended September 30, 2022, respectively. The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, June 30, 2022 $ 94,228 $ 55,328 $ 27,401 $ 49,318 $ 226,275 Provision for credit losses 10,142 (7,054) 186 (3,274) — Recoveries on loans 81 188 824 222 1,315 Loans charged off (306) (1) — (581) (888) Balances, September 30, 2022 $ 104,145 $ 48,461 $ 28,411 $ 45,685 $ 226,702 Nine Months Ended September 30, 2022 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, December 31, 2021 $ 69,935 $ 60,665 $ 20,206 $ 44,591 $ 195,397 Provision for credit losses 18,518 (21,697) 5,862 (2,683) — CECL Day 1 non-PCD provision for credit losses 2,957 5,539 871 4,588 13,955 CECL Day 1 PCD ACL 12,970 2,981 648 — 16,599 Recoveries on loans 789 1,096 824 827 3,536 Loans charged off (1,024) (123) — (1,638) (2,785) Balances, September 30, 2022 $ 104,145 $ 48,461 $ 28,411 $ 45,685 $ 226,702 Three Months Ended September 30, 2021 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ 46,316 $ 199,775 Provision for credit losses 3,496 (3,850) 567 (213) — Recoveries on loans 204 370 — 261 835 Loans charged off (137) (115) (4) (382) (638) Balances, September 30, 2021 $ 67,244 $ 69,106 $ 17,6" id="sjs-B4">LOANS AND ALLOWANCE Loan Portfolio and Credit Quality The Corporation's primary lending focus is small business and middle market commercial, commercial real estate, public finance and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale at September 30, 2022 and December 31, 2021, were $25.4 million and $11.2 million, respectively. The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: September 30, 2022 December 31, 2021 Commercial and industrial loans $ 3,330,529 $ 2,714,565 Agricultural land, production and other loans to farmers 221,954 246,442 Real estate loans: Construction 828,923 523,066 Commercial real estate, non-owner occupied 2,299,272 2,135,459 Commercial real estate, owner occupied 1,268,567 986,720 Residential 1,990,668 1,159,127 Home equity 621,619 523,754 Individuals' loans for household and other personal expenditures 173,225 146,092 Public finance and other commercial loans 915,245 806,636 Loans $ 11,650,002 $ 9,241,861 The Level One acquisition added $1.6 billion in loans at acquisition, which included $43.5 million of Paycheck Protection Program ("PPP") loans. Additional details of the Level One acquisition are included in NOTE 2. ACQUISITIONS of these Notes to Consolidated Condensed Financial Statements. As of September 30, 2022, the Corporation had $11.2 million of PPP loans compared to the December 31, 2021 balance of $106.6 million. Additional details of the PPP are included in The CARES Act and the Paycheck Protection Program sections of the "COVID-19 UPDATE AND RELATED LEGISLATIVE ACTION" in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q. Credit Quality As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) non-performing loans, (iv) covenant failures and (v) the general national and local economic conditions. The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows: • Pass - Loans that are considered to be of acceptable credit quality. • Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. • Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. • Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Commercial and industrial loan balances as of September 30, 2022 include PPP loans with an origination year of 2021 and 2020 of $11.1 million and $156,000, respectively. Commercial and industrial loan balances as of December 31, 2021 include PPP loans with an origination year of 2021 and 2020 of $100.3 million and $6.3 million, respectively. September 30, 2022 Term Loans (amortized cost basis by origination year) Revolving loans amortized Revolving loans converted 2022 2021 2020 2019 2018 Prior cost basis to term Total Commercial and industrial loans Pass $ 878,457 $ 614,161 $ 186,559 $ 125,026 $ 66,915 $ 47,867 $ 1,230,085 $ 5,314 $ 3,154,384 Special Mention 1,521 15,221 11,756 5,954 1,329 2,527 26,744 155 65,207 Substandard 10,491 28,753 6,232 10,870 4,446 1,602 47,844 69 110,307 Doubtful — 202 — — 370 — 59 — 631 Total Commercial and industrial loans 890,469 658,337 204,547 141,850 73,060 51,996 1,304,732 5,538 3,330,529 Agricultural land, production and other loans to farmers Pass 34,381 39,191 37,456 17,772 4,587 32,159 54,567 — 220,113 Special Mention 286 — 107 — 201 362 — — 956 Substandard 183 — 496 — 179 27 — — 885 Total Agricultural land, production and other loans to farmers 34,850 39,191 38,059 17,772 4,967 32,548 54,567 — 221,954 Real estate loans: Construction Pass 294,576 298,393 174,152 20,314 878 4,146 18,111 — 810,570 Special Mention 10,278 5,596 — — — — — — 15,874 Substandard 14 — 2,446 — — 19 — — 2,479 Total Construction 304,868 303,989 176,598 20,314 878 4,165 18,111 — 828,923 Commercial real estate, non-owner occupied Pass 377,307 604,997 597,682 164,320 124,987 212,121 18,382 8,088 2,107,884 Special Mention 42,890 4,567 54,691 18,904 11,577 17,152 10 — 149,791 Substandard 16,289 10,617 8,340 — 4,146 2,205 — — 41,597 Total Commercial real estate, non-owner occupied 436,486 620,181 660,713 183,224 140,710 231,478 18,392 8,088 2,299,272 Commercial real estate, owner occupied Pass 211,858 327,263 356,155 125,517 68,189 100,242 36,897 — 1,226,121 Special Mention 2,301 9,957 1,261 3,418 1,339 3,883 1,322 — 23,481 Substandard 3,001 1,246 3,018 1,627 3,270 6,791 — — 18,953 Doubtful — — — — — 12 — — 12 Total Commercial real estate, owner occupied 217,160 338,466 360,434 130,562 72,798 110,928 38,219 — 1,268,567 Residential Pass 617,087 497,367 415,995 112,715 80,783 240,572 5,735 128 1,970,382 Special Mention 3,333 2,946 828 1,128 137 3,283 — 55 11,710 Substandard 736 1,641 2,157 1,018 1,609 1,260 155 — 8,576 Total Residential 621,156 501,954 418,980 114,861 82,529 245,115 5,890 183 1,990,668 Home equity Pass 28,015 77,360 15,547 1,596 1,479 3,958 485,056 259 613,270 Special Mention 326 — — 46 39 13 3,032 — 3,456 Substandard — 355 2,851 — 65 63 1,559 — 4,893 Total Home Equity 28,341 77,715 18,398 1,642 1,583 4,034 489,647 259 621,619 Individuals' loans for household and other personal expenditures Pass 52,915 48,873 15,018 6,596 6,723 4,542 37,346 — 172,013 Special Mention 66 92 165 33 107 21 726 — 1,210 Substandard — 2 — — — — — — 2 Total Individuals' loans for household and other personal expenditures 52,981 48,967 15,183 6,629 6,830 4,563 38,072 — 173,225 Public finance and other commercial loans Pass 148,323 216,312 174,680 98,777 37,687 206,902 32,564 — 915,245 Total Public finance and other commercial loans 148,323 216,312 174,680 98,777 37,687 206,902 32,564 — 915,245 Loans $ 2,734,634 $ 2,805,112 $ 2,067,592 $ 715,631 $ 421,042 $ 891,729 $ 2,000,194 $ 14,068 $ 11,650,002 December 31, 2021 Term Loans (amortized cost basis by origination year) Revolving loans amortized Revolving loans converted 2021 2020 2019 2018 2017 Prior cost basis to term Total Commercial and industrial loans Pass $ 1,019,757 $ 362,372 $ 144,520 $ 65,165 $ 21,575 $ 30,420 $ 990,335 $ — $ 2,634,144 Special Mention 10,559 11,088 190 730 1,930 1,825 15,026 — 41,348 Substandard 2,811 2,127 7,432 2,932 431 747 22,593 — 39,073 Total Commercial and industrial loans 1,033,127 375,587 152,142 68,827 23,936 32,992 1,027,954 — 2,714,565 Agricultural land, production and other loans to farmers Pass 50,251 45,164 22,195 7,689 6,153 36,074 74,871 — 242,397 Special Mention — 1,543 — — — 252 264 — 2,059 Substandard 524 506 108 371 — 27 450 — 1,986 Total Agricultural land, production and other loans to farmers 50,775 47,213 22,303 8,060 6,153 36,353 75,585 — 246,442 Real estate loans: Construction Pass 215,167 200,169 63,589 979 1,762 2,453 17,201 — 501,320 Special Mention 20,737 270 — — — 46 — — 21,053 Substandard — 693 — — — — — — 693 Total Construction 235,904 201,132 63,589 979 1,762 2,499 17,201 — 523,066 Commercial real estate, non-owner occupied Pass 589,296 688,406 227,332 111,971 103,400 126,837 26,779 — 1,874,021 Special Mention 68,279 149,480 — — — 1,723 — — 219,482 Substandard 19,314 14,912 178 1,118 6,156 278 — — 41,956 Total Commercial real estate, non-owner occupied 676,889 852,798 227,510 113,089 109,556 128,838 26,779 — 2,135,459 Commercial real estate, owner occupied Pass 299,186 392,383 92,338 43,252 46,044 48,571 33,998 — 955,772 Special Mention 5,665 5,953 738 1,532 902 1,301 149 — 16,240 Substandard 7,025 5,763 — 53 113 1,754 — — 14,708 Total Commercial real estate, owner occupied 311,876 404,099 93,076 44,837 47,059 51,626 34,147 — 986,720 Residential Pass 349,726 353,691 103,028 69,745 55,240 210,669 2,955 73 1,145,127 Special Mention 1,034 1,394 1,456 306 172 2,106 — — 6,468 Substandard 1,004 1,575 335 1,248 108 3,257 — 5 7,532 Total Residential 351,764 356,660 104,819 71,299 55,520 216,032 2,955 78 1,159,127 Home equity Pass 63,845 17,556 1,977 2,127 1,250 3,432 427,437 194 517,818 Special Mention — 85 48 — — 24 3,451 — 3,608 Substandard 520 — — 8 91 70 1,639 — 2,328 Total Home Equity 64,365 17,641 2,025 2,135 1,341 3,526 432,527 194 523,754 Individuals' loans for household and other personal expenditures Pass 67,749 23,452 11,893 11,197 2,008 4,928 24,406 — 145,633 Special Mention 79 85 50 33 20 58 134 — 459 Total Individuals' loans for household and other personal expenditures 67,828 23,537 11,943 11,230 2,028 4,986 24,540 — 146,092 Public finance and other commercial loans Pass 231,319 178,316 100,679 39,098 105,964 128,942 22,318 — 806,636 Total Public finance and other commercial loans 231,319 178,316 100,679 39,098 105,964 128,942 22,318 — 806,636 Loans $ 3,023,847 $ 2,456,983 $ 778,086 $ 359,554 $ 353,319 $ 605,794 $ 1,664,006 $ 272 $ 9,241,861 Total past due loans equaled $37.9 million as of September 30, 2022 representing a $3.2 million increase from $34.7 million at December 31, 2021. Residential and home equity loan delinquencies increased by $5.6 million and $2.8 million, respectively, during the period, offset by $5.6 million of decreasing non-owner occupied commercial real estate delinquencies. The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the periods indicated: September 30, 2022 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 3,324,800 $ 3,554 $ 652 $ 1,523 $ 3,330,529 $ 141 Agricultural land, production and other loans to farmers 221,577 320 — 57 221,954 — Real estate loans: Construction 828,353 — — 570 828,923 570 Commercial real estate, non-owner occupied 2,294,231 — 152 4,889 2,299,272 — Commercial real estate, owner occupied 1,267,888 337 — 342 1,268,567 — Residential 1,974,219 4,386 6,938 5,125 1,990,668 — Home equity 613,749 2,689 766 4,415 621,619 53 Individuals' loans for household and other personal expenditures 172,012 415 796 2 173,225 — Public finance and other commercial loans 915,245 — — — 915,245 — Loans $ 11,612,074 $ 11,701 $ 9,304 $ 16,923 $ 11,650,002 $ 764 December 31, 2021 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,708,539 $ 2,602 $ 2,437 $ 987 $ 2,714,565 $ 675 Agricultural land, production and other loans to farmers 246,380 36 — 26 246,442 — Real estate loans: Construction 522,349 717 — — 523,066 — Commercial real estate, non-owner occupied 2,124,853 3,327 — 7,279 2,135,459 — Commercial real estate, owner occupied 985,785 643 — 292 986,720 — Residential 1,148,294 3,979 4,255 2,599 1,159,127 — Home equity 518,643 3,327 281 1,503 523,754 288 Individuals' loans for household and other personal expenditures 145,634 375 83 — 146,092 — Public finance and other commercial loans 806,636 — — — 806,636 — Loans $ 9,207,113 $ 15,006 $ 7,056 $ 12,686 $ 9,241,861 $ 963 Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in prior years, if any, is charged to the allowance for credit losses. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated: September 30, 2022 December 31, 2021 Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Commercial and industrial loans $ 2,945 $ 1,354 $ 7,598 $ 263 Agricultural land, production and other loans to farmers 57 — 631 524 Real estate loans: Construction — — 685 — Commercial real estate, non-owner occupied 20,189 288 23,029 6,133 Commercial real estate, owner occupied 4,997 3,471 411 — Residential 10,703 722 9,153 2,160 Home equity 4,607 — 1,552 — Individuals' loans for household and other personal expenditures 10 — 3 — Loans $ 43,508 $ 5,835 $ 43,062 $ 9,080 There was no interest income recognized on non-accrual loans for the three and nine months ended September 30, 2022 or 2021. Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses. The increase in collateral dependent loans of $46.2 million, mostly due to the commercial and industrial loan class, is primarily related to loans from the acquisition of Level One. September 30, 2022 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 43,740 $ 43,740 $ 13,040 Real estate loans: Construction — 2,447 — $ 2,447 1 Commercial real estate, non-owner occupied 27,705 — — $ 27,705 2,705 Commercial real estate, owner occupied 8,911 — — $ 8,911 916 Residential — 2,521 — $ 2,521 262 Home equity — 374 — $ 374 — Loans $ 36,616 $ 5,342 $ 43,740 $ 85,698 $ 16,924 December 31, 2021 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 8,075 $ 8,075 $ 2,672 Agricultural land, production and other loans to farmers 524 — 251 775 — Real estate loans: Construction — 685 — 685 82 Commercial real estate, non-owner occupied 23,652 — — 23,652 5,510 Commercial real estate, owner occupied 1,044 — — 1,044 — Residential — 4,906 — 4,906 305 Home equity — 394 — 394 64 Loans $ 25,220 $ 5,985 $ 8,326 $ 39,531 $ 8,633 In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a troubled debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be repaid. The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three and nine months ended September 30, 2022 and 2021. There were no troubled debt restructures that occurred in the three months ended September 30, 2022. Three Months Ended September 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Post - Modification Recorded Balance Number of Loans Real estate loans: Construction $ 16 $ — $ 16 $ 16 1 Commercial real estate, non owner occupied 12,922 12,976 — 12,976 1 Total $ 12,938 $ 12,976 $ 16 $ 12,992 2 Nine Months Ended September 30, 2022 Pre- Modification Recorded Balance Rate Modification Post - Modification Recorded Balance Number of Loans Real estate loans: Residential $ 53 $ 56 $ 56 1 Total $ 53 $ 56 $ 56 1 Nine Months Ended September 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 348 $ 348 $ — $ — $ 348 2 Real estate loans: Construction 16 — 16 — 16 1 Commercial real estate, non owner occupied 12,922 12,976 — — 12,976 1 Commercial real estate, owner occupied 21 — — 21 21 1 Residential 691 449 126 118 693 9 Total $ 13,998 $ 13,773 $ 142 $ 139 $ 14,054 14 Loans secured by residential real estate made up 100 percent of the post-modification balances of the troubled debt restructured loans that occurred during the nine months ended September 30, 2022. Loans secured by commercial real estate, non owner occupied made up 99.9 percent and 92.3 percent, respectively, of the post-modification balances that occurred during the three and nine months ended September 30, 2021. The following tables summarize troubled debt restructures that occurred during the twelve month ended September 30, 2021, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. There were no loans that subsequently defaulted during the three and nine months ended September 30, 2022. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 2 $ 160 2 $ 160 Real estate loans: Residential 5 599 5 599 Total 7 $ 759 7 $ 759 Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for apparent loss and may result in a specific reserve allocation in the allowance for credit losses. Commercial troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of allowance for credit losses through the loan segment loss analysis. For all consumer loan modifications, an evaluation to identify if a troubled debt restructure has occurred is performed prior to making the modification. Any subsequent deterioration is addressed through the charge-off process or through a specific reserve allocation included in the allowance for credit losses. Consumer troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of the allowance for credit losses through the loan segment loss analysis. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.0 million and $3.9 million at September 30, 2022 and 2021. Purchased Credit Deteriorated Loans The Corporation acquired Level One on April 1, 2022 and performed an evaluation of the loan portfolio in which there were loans that, at acquisition, had more than an insignificant amount of credit quality deterioration. The carrying amount of those loans is shown in the table below: Level One Purchase price of loans at acquisition $ 41,347 CECL Day 1 PCD ACL 16,599 Par value of acquired loans at acquisition $ 57,946 Allowance for Credit Losses on Loans The Allowance for Credit Losses on Loans ("ACL - Loans") is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge offs for loans, net of recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance represents the Corporation’s best estimate of current expected credit losses on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The current expected credit loss ("CECL") calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the allowance for credit losses is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date. In calculating the allowance for credit losses, the loan portfolio was pooled into ten loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Corporation analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. The expected credit losses are measured over the life of each loan segment utilizing the Probability of Default / Loss Given Default methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with unfunded loan commitments incorporating expected utilization rates. The Corporation sub-segmented certain commercial portfolios by risk level and certain consumer portfolios by delinquency status where appropriate. The Corporation utilized a four-quarter reasonable and supportable economic forecast period followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the loans. Econometric modeling was performed using historical default rates and a selection of economic forecast scenarios published by Moody’s to develop a range of estimated credit losses for which to determine the best credit loss estimate within. Macroeconomic factors utilized in the modeling process include the national unemployment rate, BBB US corporate index, CRE price index and the home price index. The Corporation qualitatively adjusts model results for risk factors that are not inherently considered in the quantitative modeling process, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other things, the impact of (i) changes in the nature and volume of the loan portfolio, (ii) changes in the existence, growth and effect of any concentrations in credit, (iii) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending management and staff, and (vi) other environmental factors of a borrower such as regulatory, legal and technological considerations, as well as competition. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the Small Business Administration ("SBA"). The risk characteristics of the Corporation’s portfolio segments are as follows: Commercial Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Corporation monitors commercial real estate loans based on collateral and risk grade criteria, as well as the levels of owner-occupied versus non-owner occupied loans. Construction Construction loans are underwritten utilizing a combination of tools and techniques including feasibility and market studies, independent appraisals and appraisal reviews, absorption and interest rate sensitivity analysis as well as the financial analysis of the developer and all guarantors. Construction loans are monitored by either in house or third party inspectors limiting advances to a percentage of costs or stabilized project value. These loans frequently involve the disbursement of significant funds with the repayment dependent upon the successful completion and, where necessary, the future stabilization of the project. The predominant inherent risk of this portfolio is associated with the borrower's ability to successfully complete a project on time, within budget and stabilize the projected as originally projected. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The allowance for credit losses increased $427,000 during the three months ended September 30, 2022. The allowance for credit losses increased $31.3 million for the nine months ended September 30, 2022, primarily due to $16.6 million of allowance for credit losses on PCD loans acquired in the Level One acquisition established through accounting adjustments on the acquisition date. In addition, a provision of $14.0 million was recorded to establish an allowance for credit losses on non-PCD loans acquired in the Level One acquisition. The allowance also includes net recoveries of $427,000 and $751,000 for the three and nine months ended September 30, 2022, respectively. The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, June 30, 2022 $ 94,228 $ 55,328 $ 27,401 $ 49,318 $ 226,275 Provision for credit losses 10,142 (7,054) 186 (3,274) — Recoveries on loans 81 188 824 222 1,315 Loans charged off (306) (1) — (581) (888) Balances, September 30, 2022 $ 104,145 $ 48,461 $ 28,411 $ 45,685 $ 226,702 Nine Months Ended September 30, 2022 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, December 31, 2021 $ 69,935 $ 60,665 $ 20,206 $ 44,591 $ 195,397 Provision for credit losses 18,518 (21,697) 5,862 (2,683) — CECL Day 1 non-PCD provision for credit losses 2,957 5,539 871 4,588 13,955 CECL Day 1 PCD ACL 12,970 2,981 648 — 16,599 Recoveries on loans 789 1,096 824 827 3,536 Loans charged off (1,024) (123) — (1,638) (2,785) Balances, September 30, 2022 $ 104,145 $ 48,461 $ 28,411 $ 45,685 $ 226,702 Three Months Ended September 30, 2021 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ 46,316 $ 199,775 Provision for credit losses 3,496 (3,850) 567 (213) — Recoveries on loans 204 370 — 261 835 Loans charged off (137) (115) (4) (382) (638) Balances, September 30, 2021 $ 67,244 $ 69,106 $ 17,6 |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Goodwill is recorded on the acquisition date of an entity. The Corporation has one year after the acquisition date, the measurement period, to record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. The Level One acquisition on April 1, 2022 resulted in $167.2 million of goodwill. In addition, the Hoosier acquisition on April, 1, 2021 resulted in $1.5 million of goodwill. Details regarding the Level One and Hoosier acquisitions are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Condensed Financial Statements. 2022 Balance, January 1 $ 545,385 Goodwill acquired 167,183 Balance, September 30 $ 712,568 2021 Balance, January 1 $ 543,918 Goodwill acquired 1,467 Balance, December 31 $ 545,385 |
OTHER INTANGIBLES
OTHER INTANGIBLES | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER INTANGIBLES | OTHER INTANGIBLES Core deposit intangibles and other intangibles are recorded on the acquisition date of an entity. The Corporation has one year after the acquisition date, the measurement period, to record subsequent adjustments to these intangibles for provisional amounts recorded at the acquisition date. The Level One acquisition on April 1, 2022 resulted in a core deposit intangible of $17.2 million and other intangibles, consisting of non-compete intangibles, of $1.4 million. In addition, the Hoosier acquisition on April 1, 2021 resulted in a customer relationship intangible of $2.2 million. Details regarding the Level One and Hoosier acquisitions are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Condensed Financial Statements. The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. September 30, 2022 December 31, 2021 Gross carrying amount $ 104,643 $ 102,396 Other intangibles acquired 18,642 2,247 Accumulated amortization (85,140) (79,168) Total core deposit and other intangibles $ 38,145 $ 25,475 The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two years to ten years. Intangible amortization expenses for each of the three and nine months ended September 30, 2022 were $2.3 million and $6.0 million, respectively. This was compared to the three and nine months ended September 30, 2021 which were $1.5 million and $4.3 million, respectively. Estimated future amortization expense is summarized as follows: Amortization Expense 2022 $ 2,303 2023 8,742 2024 7,271 2025 6,028 2026 4,910 After 2026 8,891 $ 38,145 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions. Derivatives Designated as Hedges The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of September 30, 2022 the Corporation had one interest rate swap with a notional amount of $10.0 million that was designated as a cash flow hedge. As of December 31, 2021, the Corporation had four interest rate swaps with a notional amount of $60.0 million that were designated as cash flow hedges. A $24.0 million interest rate swap, which was used to hedge the variable cash outflows (Ameribor-based) associated with a brokered deposit, matured in the first quarter of 2022. Two interest rate swaps totaling $26.0 million, which were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September 2012, matured in the third quarter of 2022. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2022, $10.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with one Federal Home Loan Bank advance. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2022 and 2021, the Corporation did not recognize any ineffectiveness. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation's variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $167,000 from accumulated other comprehensive income (loss) to interest income. The following table summarizes the Corporation's derivatives designated as hedges: Asset Derivatives Liability Derivatives September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Balance Fair Balance Fair Balance Fair Balance Fair Cash flow hedges: Interest rate swaps on borrowings Other Assets $ 167 Other Assets $ — Other Liabilities $ — Other Liabilities $ 835 The amount of loss recognized in other comprehensive income (loss) is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Interest Rate Products $ 94 $ (20) $ 507 $ 22 The amount of loss reclassified from other comprehensive income into income related to cash flow hedging relationships is included in the table below for the periods indicated. Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Three Months Ended Three Months Ended Interest rate contracts Interest Expense $ (78) $ (266) Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Nine Months Ended Nine Months Ended Interest rate contracts Interest Expense $ (496) $ (779) Non-designated Hedges The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Corporation's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair value of these mortgage banking derivatives are included in net gains and fees on sales of loans. The table below presents the fair value of the Corporation’s non-designated hedges, as well as their classification on the Balance Sheet, as of September 30, 2022, and December 31, 2021. September 30, 2022 December 31, 2021 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Interest rate swaps $ 1,200,105 $ 98,280 $ 1,038,947 $ 41,133 Forward contracts related to mortgage loans to be delivered for sale 21,333 612 — — Interest rate lock commitments 5,249 27 — — Included in other assets $ 1,226,687 $ 98,919 $ 1,038,947 $ 41,133 Included in other liabilities: Interest rate swaps $ 1,200,105 $ 98,280 $ 1,038,947 $ 41,133 Forward contracts related to mortgage loans to be delivered for sale 8,527 172 — — Interest rate lock commitments 16,846 357 — — Included in other liabilities $ 1,225,478 $ 98,809 $ 1,038,947 $ 41,133 In the normal course of business, the Corporation may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Net gains and fees on sales of loans" in the consolidated condensed statement of income and is considered a cost of executing a forward contract. The amount of gain (loss) recognized into income related to non-designated hedging instruments is included in the table below for the periods indicated. Derivatives Not Designated as Location of Gain (Loss) Amount of Gain (Loss) Three Months Ended Three Months Ended Forward contracts related to mortgage loans to be delivered for sale Net gains and fees on sales of loans $ 237 $ — Interest rate lock commitments Net gains and fees on sales of loans (350) — Total net gain/(loss) recognized in income $ (113) $ — Derivatives Not Designated as Location of Gain (Loss) Amount of Gain (Loss) Nine Months Ended Nine Months Ended Forward contracts related to mortgage loans to be delivered for sale Net gains and fees on sales of loans $ 993 $ — Interest rate lock commitments Net gains and fees on sales of loans (235) — Total net gain/(loss) recognized in income $ 758 $ — The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-market values with policy limitations, credit ratings and collateral pledging. Credit-risk-related Contingent Features The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well or adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of September 30, 2022, the termination value of derivatives in a net liability position related to these agreements was $51,000. As of September 30, 2022, the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $195,000. While the Corporation did not breach any of these provisions as of September 30, 2022, if it had, the Corporation could have been required to settle its obligations under the agreements at their termination value. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES | DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES The Corporation used fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability. RECURRING MEASUREMENTS Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. Where significant observable inputs, other than Level 1 quoted prices, are available, securities are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. government-sponsored agency and mortgage-backed securities, state and municipal securities and corporate obligations securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include state and municipal securities, U.S. government-sponsored mortgage-backed securities and corporate obligations securities. Level 3 fair value for securities was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. Derivative Financial Agreements See information regarding the Corporation’s derivative financial agreements in NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall at September 30, 2022, and December 31, 2021. Fair Value Measurements Using: September 30, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Treasury $ 2,067 $ 2,067 $ — $ — U.S. Government-sponsored agency securities 105,766 — 105,766 — State and municipal 1,344,956 — 1,339,484 5,472 U.S. Government-sponsored mortgage-backed securities 518,789 — 518,785 4 Corporate obligations 12,394 — 12,363 31 Derivative assets 99,086 — 99,086 — Derivative liabilities 98,809 — 98,809 — Fair Value Measurements Using: December 31, 2021 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Treasury $ 999 $ 999 $ — $ — U.S. Government-sponsored agency securities 95,136 — 95,136 — State and municipal 1,576,532 — 1,571,076 5,456 U.S. Government-sponsored mortgage-backed securities 667,605 — 667,601 4 Corporate obligations 4,279 — 4,248 31 Derivative assets 41,133 — 41,133 — Derivative liabilities 41,968 — 41,968 — Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for the three and nine months ended September 30, 2022 and 2021. Available for Sale Securities Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of the period $ 8,630 $ 5,795 $ 5,491 $ 2,479 Included in other comprehensive income 29 (21) (597) 333 Purchases, issuances and settlements — — 5,111 3,241 Principal payments (3,152) (174) (4,498) (453) Ending balance $ 5,507 $ 5,600 $ 5,507 $ 5,600 There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at September 30, 2022 or December 31, 2021. Transfers Between Levels There were no transfers in or out of Level 3 for the three and nine months ended September 30, 2022 and 2021. Nonrecurring Measurements Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy at September 30, 2022, and December 31, 2021. Fair Value Measurements Using September 30, 2022 Fair Value Quoted Prices in Significant Other Significant Unobservable Collateral dependent loans $ 54,756 $ — $ — $ 54,756 Fair Value Measurements Using December 31, 2021 Fair Value Quoted Prices in Significant Other Significant Unobservable Collateral dependent loans $ 24,491 $ — $ — $ 24,491 Other real estate owned 96 — — 96 Collateral Dependent Loans and Other Real Estate Owned Determining fair value for collateral dependent loans and other real estate requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2022 and December 31, 2021. September 30, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,472 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB- Discount rate 0.4% - 4.0% Weighted-average coupon 2.3% Corporate obligations and U.S. Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity (basis points) plus 200bps Weighted-average coupon 0% Collateral dependent loans $ 54,756 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 1.5% December 31, 2021 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,456 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB- Discount rate 0.75% - 4% Weighted-average coupon 3.7% Corporate obligations and U.S. Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity (basis points) plus 200bps Weighted-average coupon 0% Collateral dependent loans $ 24,491 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 5.5% Other real estate owned $ 96 Appraisals Discount to reflect current market conditions 0% - 44% Weighted-average discount of other real estate owned balance 43.5% The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. State and Municipal Securities, Corporate Obligations and U.S. Government-sponsored Mortgage-Backed Securities The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities, corporate obligations and U.S. Government-sponsored mortgage-backed securities are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input. Fair Value of Financial Instruments The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2022 and December 31, 2021. September 30, 2022 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 119,532 $ 119,532 $ — $ — Interest-bearing deposits 179,593 179,593 — — Investment securities available for sale 1,983,972 2,067 1,976,398 5,507 Investment securities held to maturity 2,310,796 — 1,856,729 10,359 Loans held for sale 25,394 — 25,394 — Loans, net 11,423,300 — — 10,899,928 Federal Home Loan Bank stock 38,056 — 38,056 — Derivative assets 99,086 — 99,086 — Interest receivable 71,605 — 71,605 — Liabilities: Deposits $ 14,434,825 $ 13,589,440 $ 820,943 $ — Borrowings: Federal funds purchased 185,000 — 185,000 — Securities sold under repurchase agreements 194,482 — 194,468 — Federal Home Loan Bank advances 643,769 — 634,399 — Subordinated debentures and other borrowings 151,301 — 138,407 — Derivative liabilities 98,809 — 98,809 — Interest payable 4,971 — 4,971 — December 31, 2021 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 167,146 $ 167,146 $ — $ — Interest-bearing deposits 474,154 474,154 — — Investment securities available for sale 2,344,551 999 2,338,061 5,491 Investment securities held to maturity 2,179,802 — 2,188,600 13,903 Loans held for sale 11,187 — 11,187 — Loans, net 9,046,464 — — 9,068,319 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 41,133 — 41,133 — Interest receivable 57,187 — 57,187 — Liabilities: Deposits $ 12,732,577 $ 12,038,992 $ 690,089 $ — Borrowings: Securities sold under repurchase agreements 181,577 — 181,572 — Federal Home Loan Bank advances 334,055 — 337,005 — Subordinated debentures and other borrowings 118,618 — 107,892 — Interest rate swap liability 41,968 — 41,968 — Interest payable 2,762 — 2,762 — |
TRANSFERS ACCOUNTED FOR AS SECU
TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | |
TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS | TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of September 30, 2022 and December 31, 2021 were: September 30, 2022 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 194,482 $ — $ — $ — $ 194,482 December 31, 2021 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 181,577 $ — $ — $ — $ 181,577 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of September 30, 2022 and 2021: Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2021 $ 59,774 $ (660) $ (4,001) $ 55,113 Other comprehensive income (loss) before reclassifications (369,096) 400 — (368,696) Amounts reclassified from accumulated other comprehensive income (898) 392 — (506) Period change (369,994) 792 — (369,202) Balance at September 30, 2022 $ (310,220) $ 132 $ (4,001) $ (314,089) Balance at December 31, 2020 $ 87,988 $ (1,594) $ (11,558) $ 74,836 Other comprehensive income (loss) before reclassifications (31,379) 17 — (31,362) Amounts reclassified from accumulated other comprehensive income (4,200) 615 — (3,585) Period change (35,579) 632 — (34,947) Balance at September 30, 2021 $ 52,409 $ (962) $ (11,558) $ 39,889 The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2022 and 2021. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2022 2021 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 481 $ 1,756 Other income - net realized gains on sales of available for sale securities Related income tax expense (101) (369) Income tax expense $ 380 $ 1,387 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (78) $ (266) Interest expense - subordinated debentures and term loans Related income tax benefit 16 56 Income tax expense $ (62) $ (210) Total reclassifications for the period, net of tax $ 318 $ 1,177 Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2022 2021 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,137 $ 5,316 Other income - net realized gains on sales of available for sale securities Related income tax expense (239) (1,116) Income tax expense $ 898 $ 4,200 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (496) $ (779) Interest expense - subordinated debentures and term loans Related income tax benefit 104 164 Income tax expense $ (392) $ (615) Total reclassifications for the period, net of tax $ 506 $ 3,585 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 2009 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan, and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSAs vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. The RSAs for employees and non-employee directors are either immediately vested at retirement, disability or death, or, continue to vest after retirement, disability or death, depending on the plan under which the shares were granted. The Corporation’s 2019 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the three and nine months ended September 30, 2022 was $1.2 million and $3.4 million, respectively, compared to $1.2 million and $3.6 million, respectively, for the three and nine months ended September 30, 2021. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income. Share-based compensation expense recognized in the Consolidated Condensed Statements of Income is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 0.5 percent for the nine months ended September 30, 2022, based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock and ESPP Options Pre-tax compensation expense $ 15 $ 16 $ 64 $ 131 Income tax expense (benefit) — — (74) (92) Stock and ESPP option expense, net of income taxes $ 15 $ 16 $ (10) $ 39 Restricted Stock Awards Pre-tax compensation expense $ 1,171 $ 1,201 $ 3,366 $ 3,484 Income tax expense (benefit) (332) (136) (792) (619) Restricted stock awards expense, net of income taxes $ 839 $ 1,065 $ 2,574 $ 2,865 Total Share-Based Compensation Pre-tax compensation expense $ 1,186 $ 1,217 $ 3,430 $ 3,615 Income tax expense (benefit) (332) (136) (866) (711) Total share-based compensation expense, net of income taxes $ 854 $ 1,081 $ 2,564 $ 2,904 The grant date fair value of ESPP options was estimated to be approximately $15,000 at the beginning of the July 1, 2022 quarterly offering period. The ESPP options vested during the three months ending September 30, 2022, leaving no unrecognized compensation expense related to unvested ESPP options at September 30, 2022. Stock option activity under the Corporation's stock option plans as of September 30, 2022 and changes during the nine months ended September 30, 2022, were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2022 28,500 $ 17.14 Transferred Options from Level One 148,600 $ 18.84 Exercised (20,095) $ 16.74 Outstanding September 30, 2022 157,005 $ 18.80 2.69 $ 3,121,261 Vested and Expected to Vest at September 30, 2022 157,005 $ 18.80 2.69 $ 3,121,261 Exercisable at September 30, 2022 157,005 $ 18.80 2.69 $ 3,121,261 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of the first nine months of 2022 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on September 30, 2022. The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2022 and 2021 was $470,000 and $559,000, respectively. Cash receipts of stock options exercised during this same period were $336,000 and $198,000, respectively. The following table summarizes information on unvested RSAs outstanding as of September 30, 2022: Number of Shares Weighted-Average Unvested RSAs at January 1, 2022 411,259 $ 35.86 Granted 129,040 $ 40.60 Vested (112,443) $ 37.18 Forfeited (11,775) $ 36.54 Unvested RSAs at September 30, 2022 416,081 $ 36.95 As of September 30, 2022, unrecognized compensation expense related to RSAs was $9.9 million and is expected to be recognized over a weighted-average period of 2.0 years. The Corporation did not have any unrecognized compensation expense related to stock options as of September 30, 2022. |
INCOME TAX
INCOME TAX | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% $ 15,445 $ 12,984 $ 36,176 $ 39,082 Tax-exempt interest income (4,974) (4,196) (14,371) (11,795) Share-based compensation (79) 119 (146) 47 Tax-exempt earnings and gains on life insurance (1,397) (503) (2,026) (1,037) Tax credits (122) (127) (292) (277) State Income Tax 658 678 1,177 2,252 Other 262 107 420 36 Actual Tax Expense $ 9,793 $ 9,062 $ 20,938 $ 28,308 Effective Tax Rate 13.3 % 14.7 % 12.2 % 15.2 % |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income available to common stockholders by the weighted-average common shares outstanding during the reporting period. Diluted net income per common share is computed by dividing net income available to common stockholders by the combination of the weighted-average common shares outstanding during the reporting period and all potentially dilutive common shares. Potentially dilutive common shares include stock options and RSAs issued under the Corporation's share-based compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per common share in the periods where the effect would be antidilutive. The following table reconciles basic and diluted net income per common share for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, 2022 2021 Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net income available to common stockholders $ 63,283 59,096,688 $ 1.08 $ 52,770 53,766,630 $ 0.98 Effect of potentially dilutive stock options and restricted stock awards 242,041 193,135 Diluted net income per common share $ 63,283 59,338,729 $ 1.08 $ 52,770 53,959,765 $ 0.98 Nine Months Ended September 30, 2022 2021 Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net income available to common stockholders $ 150,391 57,200,843 $ 2.63 $ 157,798 53,883,945 $ 2.93 Effect of potentially dilutive stock options and restricted stock awards 266,716 209,118 Diluted net income per common share $ 150,391 57,467,559 $ 2.62 $ 157,798 54,093,063 $ 2.92 |
GENERAL LITIGATION AND REGULATO
GENERAL LITIGATION AND REGULATORY EXAMINATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
GENERAL LITIGATION AND REGULATORY EXAMINATIONS | GENERAL LITIGATION AND REGULATORY EXAMINATIONS The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Corporation is also subject to periodic examinations by various regulatory agencies. It is the general opinion of management that the disposition or ultimate resolution of any such routine litigation or regulatory examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation. |
GENERAL (Policies)
GENERAL (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Preparation | Financial Statement PreparationThe Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2021, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission. The results of operations for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the year. Reclassifications have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of financial instruments. |
New Accounting Pronouncements Not Yet Adopted | The Corporation did not adopt any new accounting pronouncements during the first nine months of 2022. The Corporation continually monitors potential accounting pronouncements and the following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: New Accounting Pronouncements Not Yet Adopted FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary - The FASB issued ASU No. 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates are widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Corporation is assessing ASU 2020-04 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. FASB Accounting Standards Updates - No. 2021-01 - Reference Rate Reform (Topic 848): Scope Summary - The FASB has published ASU 2021-01, Reference Rate Reform. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this Update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is assessing ASU 2021-01 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. FASB Accounting Standards Updates - No. 2021-08 - Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Summary - The FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , that addresses diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with Topic 606 , Revenue from Contracts with Customers , at fair value on the acquisition date. The FASB indicates that some stakeholders indicated that it is unclear how an acquirer should evaluate whether to recognize a contract liability from a revenue contract with a customer acquired in a business combination after Topic 606 is adopted. Furthermore, it was identified that under current practice, the timing of payment (payment terms) of a revenue contract may subsequently affect the post-acquisition revenue recognized by the acquirer. To address this, the ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Finally, the amendments in the ASU improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. For public business entities, the amendments are effective for fiscal years beginning after December 31, 2022, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period or early application, and (2) prospectively to all business combinations that occur on or after the date of initial application. The Corporation is reviewing the terms of this guidance, but adoption of the standard is not expected to have a significant impact on the Corporation's financial statements or disclosures. FASB Accounting Standards Updates - Accounting Standards Update No. 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Summary - The FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings ("TDRs") and Vintage Disclosures , which is intended to improve the usefulness of information provided to investors about certain loan refinancings, restructurings, and writeoffs. The amendments in the new ASU eliminate the accounting guidance for TDRs by creditors that have adopted CECL while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require that a public business entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases. Since the Corporation adopted CECL on January 1, 2021, the amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Corporation is assessing ASU 2022-02 and its impact on the Corporation's disclosures. The Corporation expects to adopt this ASU in the first quarter of 2023. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Valuations of the Fair Value of Assets Acquired and Liabilities Assumed | Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Level One acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Fair Value Cash and due from banks $ 217,104 Investment securities 370,658 Loans held for sale 7,951 Loans 1,626,857 Allowance for credit losses - loans (16,599) Premises and equipment 11,848 Federal Home Loan Bank stock 11,688 Interest receivable 7,188 Cash surrender value of life insurance 30,143 Tax asset, deferred and receivable 16,223 Other assets 41,690 Deposits (1,930,790) Securities sold under repurchase agreements (1,521) Federal Home Loan Bank advances (160,043) Subordinated debentures (32,631) Interest payable (1,065) Other liabilities (42,813) Net tangible assets acquired 155,888 Other intangibles 18,642 Goodwill 167,183 Purchase price $ 341,713 Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair value on the date of the acquisition. Based on the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Hoosier acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 292 Other assets 35 Other liabilities (816) Net tangible assets acquired (489) Customer relationship intangible 2,247 Goodwill 1,467 Purchase price $ 3,225 |
Schedule of Pro Forma Financial Information of Consolidated Financial Statements Since the Acquisition Date | The results of operations of Level One have been included in the Corporation's consolidated financial statements since the acquisition date. The following schedule includes pro forma results for the three and nine months ended September 30, 2022 and the annual period ended December 31, 2021 as if the Level One acquisition occurred as of the beginning of the periods presented. Pro forma financial information of the Hoosier acquisition is not included in the table below as it is deemed immaterial. Three Months Ended Nine Months Ended Total revenue (net interest income plus other income) $ 169,923 $ 476,074 Net income $ 63,752 $ 148,280 Net income available to common stockholders $ 63,283 $ 146,873 Earnings per common share: Basic $ 1.08 $ 2.49 Diluted $ 1.08 $ 2.48 2021 Total revenue (net interest income plus other income) $ 621,946 Net income $ 237,031 Net income available to common stockholders $ 235,156 Earnings per common share: Basic $ 3.96 Diluted $ 3.95 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, Gross Unrealized Losses and Approximate Fair Value of Investment Securities | The following table summarizes the amortized cost, gross unrealized gains and losses and approximate fair value of investment securities available for sale as of September 30, 2022 and December 31, 2021. Amortized Gross Unrealized Gross Unrealized Fair Available for sale at September 30, 2022 U.S. Treasury $ 2,107 $ — $ 40 $ 2,067 U.S. Government-sponsored agency securities 121,907 — 16,141 105,766 State and municipal 1,611,859 93 266,996 1,344,956 U.S. Government-sponsored mortgage-backed securities 627,583 1 108,795 518,789 Corporate obligations 13,036 — 642 12,394 Total available for sale $ 2,376,492 $ 94 $ 392,614 $ 1,983,972 Amortized Gross Unrealized Gross Unrealized Fair Available for sale at December 31, 2021 U.S. Treasury $ 1,000 $ — $ 1 $ 999 U.S. Government-sponsored agency securities 96,244 437 1,545 95,136 State and municipal 1,495,696 81,734 898 1,576,532 U.S. Government-sponsored mortgage-backed securities 671,684 7,109 11,188 667,605 Corporate obligations 4,031 256 8 4,279 Total available for sale $ 2,268,655 $ 89,536 $ 13,640 $ 2,344,551 The following table summarizes the amortized cost, gross unrealized gains and losses, approximate fair value and allowance for credit losses on investment securities held to maturity as of September 30, 2022 and December 31, 2021. Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at September 30, 2022 U.S. Government-sponsored agency securities $ 399,089 $ — $ 399,089 $ — $ 66,514 $ 332,575 State and municipal 1,114,312 245 1,114,067 113 256,834 857,591 U.S. Government-sponsored mortgage-backed securities 796,140 — 796,140 — 120,709 675,431 Foreign investment 1,500 — 1,500 — 9 1,491 Total held to maturity $ 2,311,041 $ 245 $ 2,310,796 $ 113 $ 444,066 $ 1,867,088 Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at December 31, 2021 U.S. Government-sponsored agency securities $ 371,457 $ — $ 371,457 $ 226 $ 7,268 $ 364,415 State and municipal 1,057,301 245 1,057,056 29,593 2,170 1,084,724 U.S. Government-sponsored mortgage-backed securities 749,789 — 749,789 7,957 5,881 751,865 Foreign investment 1,500 — 1,500 — 1 1,499 Total held to maturity $ 2,180,047 $ 245 $ 2,179,802 $ 37,776 $ 15,320 $ 2,202,503 |
Summary of Amortized Cost of Investment Securities Held to Maturity Aggregated by Credit Quality Indicator | On a quarterly basis, the Corporation monitors the credit quality of investment securities held to maturity through the use of credit ratings. The following table summarizes the amortized cost of investment securities held to maturity at September 30, 2022, aggregated by credit quality indicator. Held to Maturity State and municipal Other Total Credit Rating: Aaa $ 101,372 $ 70,582 $ 171,954 Aa1 162,890 — 162,890 Aa2 185,511 — 185,511 Aa3 135,285 — 135,285 A1 131,413 — 131,413 A2 10,167 — 10,167 A3 10,115 — 10,115 Non-rated 377,559 1,126,147 1,503,706 Total $ 1,114,312 $ 1,196,729 $ 2,311,041 |
Summary of Investment Securities in a Continuous Unrealized Loss Position | The following tables summarize, as of September 30, 2022 and December 31, 2021, investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position. Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at September 30, 2022 U.S. Treasury $ 2,067 $ 40 $ — $ — $ 2,067 $ 40 U.S. Government-sponsored agency securities 67,039 7,453 38,727 8,688 105,766 16,141 State and municipal 1,229,682 234,780 90,765 32,216 1,320,447 266,996 U.S. Government-sponsored mortgage-backed securities 206,559 23,141 312,109 85,654 518,668 108,795 Corporate obligations 12,363 642 — — 12,363 642 Total investment securities available for sale $ 1,517,710 $ 266,056 $ 441,601 $ 126,558 $ 1,959,311 $ 392,614 Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at December 31, 2021 U.S. Treasury $ 999 $ 1 $ — $ — $ 999 $ 1 U.S. Government-sponsored agency securities 68,524 1,545 — — 68,524 1,545 State and municipal 138,187 894 505 4 138,692 898 U.S. Government-sponsored mortgage-backed securities 427,687 10,791 8,324 397 436,011 11,188 Corporate obligations 992 8 — — 992 8 Total investment securities available for sale $ 636,389 $ 13,239 $ 8,829 $ 401 $ 645,218 $ 13,640 The following table summarizes investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and the number of securities in the portfolio for the periods indicated. Gross Number of Securities Investment securities available for sale at September 30, 2022 U.S. Treasury $ 40 4 U.S. Government-sponsored agency securities 16,141 17 State and municipal 266,996 1074 U.S. Government-sponsored mortgage-backed securities 108,795 176 Corporate obligations 642 10 Total investment securities available for sale $ 392,614 1,281 Gross Number of Securities Investment securities available for sale at December 31, 2021 U.S. Treasury $ 1 1 U.S. Government-sponsored agency securities 1,545 8 State and municipal 898 103 U.S. Government-sponsored mortgage-backed securities 11,188 48 Corporate obligations 8 1 Total investment securities available for sale $ 13,640 161 |
Summary of Investments in Debt and Equity Securities Reported in the Financial Statements at an Amount Less Than Their Historical Cost | Certain investment securities available for sale are reported in the financial statements at an amount less than their historical cost as indicated in the table below. September 30, 2022 December 31, 2021 Investments available for sale reported at less than historical cost: Historical cost $ 2,351,925 $ 658,858 Fair value 1,959,311 645,218 Gross unrealized losses $ 392,614 $ 13,640 Percent of the Corporation's investments available for sale 98.8 % 27.5 % |
Summary of Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity | The amortized cost and fair value of investment securities available for sale and held to maturity at September 30, 2022 and December 31, 2021, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at September 30, 2022 Due in one year or less $ 4,646 $ 4,617 $ 6,428 $ 6,439 Due after one through five years 14,329 13,776 71,303 67,777 Due after five through ten years 176,931 161,885 156,564 139,284 Due after ten years 1,553,003 1,284,905 1,280,606 978,157 1,748,909 1,465,183 1,514,901 1,191,657 U.S. Government-sponsored mortgage-backed securities 627,583 518,789 796,140 675,431 Total investment securities $ 2,376,492 $ 1,983,972 $ 2,311,041 $ 1,867,088 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2021 Due in one year or less $ 6,954 $ 6,965 $ 6,971 $ 6,995 Due after one through five years 5,097 5,309 30,272 31,946 Due after five through ten years 120,460 126,816 177,203 180,129 Due after ten years 1,464,460 1,537,856 1,215,812 1,231,568 1,596,971 1,676,946 1,430,258 1,450,638 U.S. Government-sponsored mortgage-backed securities 671,684 667,605 749,789 751,865 Total investment securities $ 2,268,655 $ 2,344,551 $ 2,180,047 $ 2,202,503 |
Summary of Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities | Gross gains and losses on the sales and redemptions of investment securities available for sale for the three and nine months ended September 30, 2022 and 2021 are shown below. Three Months Ended Nine Months Ended 2022 2021 2022 2021 Sales and redemptions of investment securities available for sale: Gross gains $ 495 $ 1,915 $ 1,176 $ 5,814 Gross losses 14 159 39 498 Net gains on sales and redemptions of investment securities available for sale $ 481 $ 1,756 $ 1,137 $ 5,316 |
LOANS AND ALLOWANCE (Tables)
LOANS AND ALLOWANCE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Summary of Composition of Loan Portfolio by Loan Class | The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: September 30, 2022 December 31, 2021 Commercial and industrial loans $ 3,330,529 $ 2,714,565 Agricultural land, production and other loans to farmers 221,954 246,442 Real estate loans: Construction 828,923 523,066 Commercial real estate, non-owner occupied 2,299,272 2,135,459 Commercial real estate, owner occupied 1,268,567 986,720 Residential 1,990,668 1,159,127 Home equity 621,619 523,754 Individuals' loans for household and other personal expenditures 173,225 146,092 Public finance and other commercial loans 915,245 806,636 Loans $ 11,650,002 $ 9,241,861 |
Summary of Credit Quality of Loan Portfolio by Loan Class | The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Commercial and industrial loan balances as of September 30, 2022 include PPP loans with an origination year of 2021 and 2020 of $11.1 million and $156,000, respectively. Commercial and industrial loan balances as of December 31, 2021 include PPP loans with an origination year of 2021 and 2020 of $100.3 million and $6.3 million, respectively. September 30, 2022 Term Loans (amortized cost basis by origination year) Revolving loans amortized Revolving loans converted 2022 2021 2020 2019 2018 Prior cost basis to term Total Commercial and industrial loans Pass $ 878,457 $ 614,161 $ 186,559 $ 125,026 $ 66,915 $ 47,867 $ 1,230,085 $ 5,314 $ 3,154,384 Special Mention 1,521 15,221 11,756 5,954 1,329 2,527 26,744 155 65,207 Substandard 10,491 28,753 6,232 10,870 4,446 1,602 47,844 69 110,307 Doubtful — 202 — — 370 — 59 — 631 Total Commercial and industrial loans 890,469 658,337 204,547 141,850 73,060 51,996 1,304,732 5,538 3,330,529 Agricultural land, production and other loans to farmers Pass 34,381 39,191 37,456 17,772 4,587 32,159 54,567 — 220,113 Special Mention 286 — 107 — 201 362 — — 956 Substandard 183 — 496 — 179 27 — — 885 Total Agricultural land, production and other loans to farmers 34,850 39,191 38,059 17,772 4,967 32,548 54,567 — 221,954 Real estate loans: Construction Pass 294,576 298,393 174,152 20,314 878 4,146 18,111 — 810,570 Special Mention 10,278 5,596 — — — — — — 15,874 Substandard 14 — 2,446 — — 19 — — 2,479 Total Construction 304,868 303,989 176,598 20,314 878 4,165 18,111 — 828,923 Commercial real estate, non-owner occupied Pass 377,307 604,997 597,682 164,320 124,987 212,121 18,382 8,088 2,107,884 Special Mention 42,890 4,567 54,691 18,904 11,577 17,152 10 — 149,791 Substandard 16,289 10,617 8,340 — 4,146 2,205 — — 41,597 Total Commercial real estate, non-owner occupied 436,486 620,181 660,713 183,224 140,710 231,478 18,392 8,088 2,299,272 Commercial real estate, owner occupied Pass 211,858 327,263 356,155 125,517 68,189 100,242 36,897 — 1,226,121 Special Mention 2,301 9,957 1,261 3,418 1,339 3,883 1,322 — 23,481 Substandard 3,001 1,246 3,018 1,627 3,270 6,791 — — 18,953 Doubtful — — — — — 12 — — 12 Total Commercial real estate, owner occupied 217,160 338,466 360,434 130,562 72,798 110,928 38,219 — 1,268,567 Residential Pass 617,087 497,367 415,995 112,715 80,783 240,572 5,735 128 1,970,382 Special Mention 3,333 2,946 828 1,128 137 3,283 — 55 11,710 Substandard 736 1,641 2,157 1,018 1,609 1,260 155 — 8,576 Total Residential 621,156 501,954 418,980 114,861 82,529 245,115 5,890 183 1,990,668 Home equity Pass 28,015 77,360 15,547 1,596 1,479 3,958 485,056 259 613,270 Special Mention 326 — — 46 39 13 3,032 — 3,456 Substandard — 355 2,851 — 65 63 1,559 — 4,893 Total Home Equity 28,341 77,715 18,398 1,642 1,583 4,034 489,647 259 621,619 Individuals' loans for household and other personal expenditures Pass 52,915 48,873 15,018 6,596 6,723 4,542 37,346 — 172,013 Special Mention 66 92 165 33 107 21 726 — 1,210 Substandard — 2 — — — — — — 2 Total Individuals' loans for household and other personal expenditures 52,981 48,967 15,183 6,629 6,830 4,563 38,072 — 173,225 Public finance and other commercial loans Pass 148,323 216,312 174,680 98,777 37,687 206,902 32,564 — 915,245 Total Public finance and other commercial loans 148,323 216,312 174,680 98,777 37,687 206,902 32,564 — 915,245 Loans $ 2,734,634 $ 2,805,112 $ 2,067,592 $ 715,631 $ 421,042 $ 891,729 $ 2,000,194 $ 14,068 $ 11,650,002 December 31, 2021 Term Loans (amortized cost basis by origination year) Revolving loans amortized Revolving loans converted 2021 2020 2019 2018 2017 Prior cost basis to term Total Commercial and industrial loans Pass $ 1,019,757 $ 362,372 $ 144,520 $ 65,165 $ 21,575 $ 30,420 $ 990,335 $ — $ 2,634,144 Special Mention 10,559 11,088 190 730 1,930 1,825 15,026 — 41,348 Substandard 2,811 2,127 7,432 2,932 431 747 22,593 — 39,073 Total Commercial and industrial loans 1,033,127 375,587 152,142 68,827 23,936 32,992 1,027,954 — 2,714,565 Agricultural land, production and other loans to farmers Pass 50,251 45,164 22,195 7,689 6,153 36,074 74,871 — 242,397 Special Mention — 1,543 — — — 252 264 — 2,059 Substandard 524 506 108 371 — 27 450 — 1,986 Total Agricultural land, production and other loans to farmers 50,775 47,213 22,303 8,060 6,153 36,353 75,585 — 246,442 Real estate loans: Construction Pass 215,167 200,169 63,589 979 1,762 2,453 17,201 — 501,320 Special Mention 20,737 270 — — — 46 — — 21,053 Substandard — 693 — — — — — — 693 Total Construction 235,904 201,132 63,589 979 1,762 2,499 17,201 — 523,066 Commercial real estate, non-owner occupied Pass 589,296 688,406 227,332 111,971 103,400 126,837 26,779 — 1,874,021 Special Mention 68,279 149,480 — — — 1,723 — — 219,482 Substandard 19,314 14,912 178 1,118 6,156 278 — — 41,956 Total Commercial real estate, non-owner occupied 676,889 852,798 227,510 113,089 109,556 128,838 26,779 — 2,135,459 Commercial real estate, owner occupied Pass 299,186 392,383 92,338 43,252 46,044 48,571 33,998 — 955,772 Special Mention 5,665 5,953 738 1,532 902 1,301 149 — 16,240 Substandard 7,025 5,763 — 53 113 1,754 — — 14,708 Total Commercial real estate, owner occupied 311,876 404,099 93,076 44,837 47,059 51,626 34,147 — 986,720 Residential Pass 349,726 353,691 103,028 69,745 55,240 210,669 2,955 73 1,145,127 Special Mention 1,034 1,394 1,456 306 172 2,106 — — 6,468 Substandard 1,004 1,575 335 1,248 108 3,257 — 5 7,532 Total Residential 351,764 356,660 104,819 71,299 55,520 216,032 2,955 78 1,159,127 Home equity Pass 63,845 17,556 1,977 2,127 1,250 3,432 427,437 194 517,818 Special Mention — 85 48 — — 24 3,451 — 3,608 Substandard 520 — — 8 91 70 1,639 — 2,328 Total Home Equity 64,365 17,641 2,025 2,135 1,341 3,526 432,527 194 523,754 Individuals' loans for household and other personal expenditures Pass 67,749 23,452 11,893 11,197 2,008 4,928 24,406 — 145,633 Special Mention 79 85 50 33 20 58 134 — 459 Total Individuals' loans for household and other personal expenditures 67,828 23,537 11,943 11,230 2,028 4,986 24,540 — 146,092 Public finance and other commercial loans Pass 231,319 178,316 100,679 39,098 105,964 128,942 22,318 — 806,636 Total Public finance and other commercial loans 231,319 178,316 100,679 39,098 105,964 128,942 22,318 — 806,636 Loans $ 3,023,847 $ 2,456,983 $ 778,086 $ 359,554 $ 353,319 $ 605,794 $ 1,664,006 $ 272 $ 9,241,861 The tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses. The increase in collateral dependent loans of $46.2 million, mostly due to the commercial and industrial loan class, is primarily related to loans from the acquisition of Level One. September 30, 2022 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 43,740 $ 43,740 $ 13,040 Real estate loans: Construction — 2,447 — $ 2,447 1 Commercial real estate, non-owner occupied 27,705 — — $ 27,705 2,705 Commercial real estate, owner occupied 8,911 — — $ 8,911 916 Residential — 2,521 — $ 2,521 262 Home equity — 374 — $ 374 — Loans $ 36,616 $ 5,342 $ 43,740 $ 85,698 $ 16,924 December 31, 2021 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 8,075 $ 8,075 $ 2,672 Agricultural land, production and other loans to farmers 524 — 251 775 — Real estate loans: Construction — 685 — 685 82 Commercial real estate, non-owner occupied 23,652 — — 23,652 5,510 Commercial real estate, owner occupied 1,044 — — 1,044 — Residential — 4,906 — 4,906 305 Home equity — 394 — 394 64 Loans $ 25,220 $ 5,985 $ 8,326 $ 39,531 $ 8,633 |
Summary of Past Due Aging of Loan Portfolio by Loan Class | The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the periods indicated: September 30, 2022 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 3,324,800 $ 3,554 $ 652 $ 1,523 $ 3,330,529 $ 141 Agricultural land, production and other loans to farmers 221,577 320 — 57 221,954 — Real estate loans: Construction 828,353 — — 570 828,923 570 Commercial real estate, non-owner occupied 2,294,231 — 152 4,889 2,299,272 — Commercial real estate, owner occupied 1,267,888 337 — 342 1,268,567 — Residential 1,974,219 4,386 6,938 5,125 1,990,668 — Home equity 613,749 2,689 766 4,415 621,619 53 Individuals' loans for household and other personal expenditures 172,012 415 796 2 173,225 — Public finance and other commercial loans 915,245 — — — 915,245 — Loans $ 11,612,074 $ 11,701 $ 9,304 $ 16,923 $ 11,650,002 $ 764 December 31, 2021 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,708,539 $ 2,602 $ 2,437 $ 987 $ 2,714,565 $ 675 Agricultural land, production and other loans to farmers 246,380 36 — 26 246,442 — Real estate loans: Construction 522,349 717 — — 523,066 — Commercial real estate, non-owner occupied 2,124,853 3,327 — 7,279 2,135,459 — Commercial real estate, owner occupied 985,785 643 — 292 986,720 — Residential 1,148,294 3,979 4,255 2,599 1,159,127 — Home equity 518,643 3,327 281 1,503 523,754 288 Individuals' loans for household and other personal expenditures 145,634 375 83 — 146,092 — Public finance and other commercial loans 806,636 — — — 806,636 — Loans $ 9,207,113 $ 15,006 $ 7,056 $ 12,686 $ 9,241,861 $ 963 |
Summary of Non-Accrual Loans by Loan class | The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated: September 30, 2022 December 31, 2021 Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Commercial and industrial loans $ 2,945 $ 1,354 $ 7,598 $ 263 Agricultural land, production and other loans to farmers 57 — 631 524 Real estate loans: Construction — — 685 — Commercial real estate, non-owner occupied 20,189 288 23,029 6,133 Commercial real estate, owner occupied 4,997 3,471 411 — Residential 10,703 722 9,153 2,160 Home equity 4,607 — 1,552 — Individuals' loans for household and other personal expenditures 10 — 3 — Loans $ 43,508 $ 5,835 $ 43,062 $ 9,080 |
Summary of Troubled Debt Restructuring | The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three and nine months ended September 30, 2022 and 2021. There were no troubled debt restructures that occurred in the three months ended September 30, 2022. Three Months Ended September 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Post - Modification Recorded Balance Number of Loans Real estate loans: Construction $ 16 $ — $ 16 $ 16 1 Commercial real estate, non owner occupied 12,922 12,976 — 12,976 1 Total $ 12,938 $ 12,976 $ 16 $ 12,992 2 Nine Months Ended September 30, 2022 Pre- Modification Recorded Balance Rate Modification Post - Modification Recorded Balance Number of Loans Real estate loans: Residential $ 53 $ 56 $ 56 1 Total $ 53 $ 56 $ 56 1 Nine Months Ended September 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 348 $ 348 $ — $ — $ 348 2 Real estate loans: Construction 16 — 16 — 16 1 Commercial real estate, non owner occupied 12,922 12,976 — — 12,976 1 Commercial real estate, owner occupied 21 — — 21 21 1 Residential 691 449 126 118 693 9 Total $ 13,998 $ 13,773 $ 142 $ 139 $ 14,054 14 The following tables summarize troubled debt restructures that occurred during the twelve month ended September 30, 2021, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. There were no loans that subsequently defaulted during the three and nine months ended September 30, 2022. Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 2 $ 160 2 $ 160 Real estate loans: Residential 5 599 5 599 Total 7 $ 759 7 $ 759 |
Summary of Purchased With Credit Deterioration | The carrying amount of those loans is shown in the table below: Level One Purchase price of loans at acquisition $ 41,347 CECL Day 1 PCD ACL 16,599 Par value of acquired loans at acquisition $ 57,946 |
Summary of Changes in Allowance for Loan Losses | The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, June 30, 2022 $ 94,228 $ 55,328 $ 27,401 $ 49,318 $ 226,275 Provision for credit losses 10,142 (7,054) 186 (3,274) — Recoveries on loans 81 188 824 222 1,315 Loans charged off (306) (1) — (581) (888) Balances, September 30, 2022 $ 104,145 $ 48,461 $ 28,411 $ 45,685 $ 226,702 Nine Months Ended September 30, 2022 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, December 31, 2021 $ 69,935 $ 60,665 $ 20,206 $ 44,591 $ 195,397 Provision for credit losses 18,518 (21,697) 5,862 (2,683) — CECL Day 1 non-PCD provision for credit losses 2,957 5,539 871 4,588 13,955 CECL Day 1 PCD ACL 12,970 2,981 648 — 16,599 Recoveries on loans 789 1,096 824 827 3,536 Loans charged off (1,024) (123) — (1,638) (2,785) Balances, September 30, 2022 $ 104,145 $ 48,461 $ 28,411 $ 45,685 $ 226,702 Three Months Ended September 30, 2021 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ 46,316 $ 199,775 Provision for credit losses 3,496 (3,850) 567 (213) — Recoveries on loans 204 370 — 261 835 Loans charged off (137) (115) (4) (382) (638) Balances, September 30, 2021 $ 67,244 $ 69,106 $ 17,640 $ 45,982 $ 199,972 Nine Months Ended September 30, 2021 Commercial Commercial Real Estate Construction Consumer Residential Consumer & Residential Total Allowance for credit losses Balances, December 31, 2020 $ 47,115 $ 51,070 $ — $ 9,648 $ 22,815 $ — $ 130,648 Credit risk reclassifications — (10,284) 10,284 (9,648) (22,815) 32,463 — Balances, December 31, 2020 after reclassifications 47,115 40,786 10,284 — — 32,463 130,648 Impact of adopting ASC 326 20,024 34,925 8,805 — — 10,301 74,055 Balances, January 1, 2021 Post-ASC 326 adoption 67,139 75,711 19,089 — — 42,764 204,703 Provision for credit losses 666 (2,709) (1,444) — — 3,487 — Recoveries on loans 544 567 1 — — 829 1,941 Loans charged off (1,105) (4,463) (6) — — (1,098) (6,672) Balances, September 30, 2021 $ 67,244 $ 69,106 $ 17,640 $ — $ — $ 45,982 $ 199,972 |
Summary of Financial Instruments with Off-balance Sheet Risk | Financial instruments with off-balance sheet risk were as follows: September 30, 2022 December 31, 2021 Amounts of commitments: Loan commitments to extend credit $ 4,764,847 $ 3,917,215 Standby letters of credit $ 43,239 $ 34,613 |
Summary of Allowance for Credit Losses, Off-balance Sheet | The following table details activity in the allowance for credit losses on off-balance sheet commitments: Three Months Ended Balances, June 30, 2022 $ 20,500 CECL Day 1 unfunded commitments provision for credit losses 2,800 Balances, September 30, 2022 $ 23,300 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | 2022 Balance, January 1 $ 545,385 Goodwill acquired 167,183 Balance, September 30 $ 712,568 2021 Balance, January 1 $ 543,918 Goodwill acquired 1,467 Balance, December 31 $ 545,385 |
OTHER INTANGIBLES (Tables)
OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Core Deposit and Other Intangibles | The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. September 30, 2022 December 31, 2021 Gross carrying amount $ 104,643 $ 102,396 Other intangibles acquired 18,642 2,247 Accumulated amortization (85,140) (79,168) Total core deposit and other intangibles $ 38,145 $ 25,475 |
Summary of Estimated Future Amortization Expense | Estimated future amortization expense is summarized as follows: Amortization Expense 2022 $ 2,303 2023 8,742 2024 7,271 2025 6,028 2026 4,910 After 2026 8,891 $ 38,145 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Financial Instruments and Classification on the Balance Sheet | The following table summarizes the Corporation's derivatives designated as hedges: Asset Derivatives Liability Derivatives September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Balance Fair Balance Fair Balance Fair Balance Fair Cash flow hedges: Interest rate swaps on borrowings Other Assets $ 167 Other Assets $ — Other Liabilities $ — Other Liabilities $ 835 The table below presents the fair value of the Corporation’s non-designated hedges, as well as their classification on the Balance Sheet, as of September 30, 2022, and December 31, 2021. September 30, 2022 December 31, 2021 Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Interest rate swaps $ 1,200,105 $ 98,280 $ 1,038,947 $ 41,133 Forward contracts related to mortgage loans to be delivered for sale 21,333 612 — — Interest rate lock commitments 5,249 27 — — Included in other assets $ 1,226,687 $ 98,919 $ 1,038,947 $ 41,133 Included in other liabilities: Interest rate swaps $ 1,200,105 $ 98,280 $ 1,038,947 $ 41,133 Forward contracts related to mortgage loans to be delivered for sale 8,527 172 — — Interest rate lock commitments 16,846 357 — — Included in other liabilities $ 1,225,478 $ 98,809 $ 1,038,947 $ 41,133 |
Summary of Amount of Loss Recognized in Other Comprehensive Income (Loss) | The amount of loss recognized in other comprehensive income (loss) is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Interest Rate Products $ 94 $ (20) $ 507 $ 22 |
Summary of Effect of Derivative Financial Instruments on the Income Statement | The amount of loss reclassified from other comprehensive income into income related to cash flow hedging relationships is included in the table below for the periods indicated. Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Three Months Ended Three Months Ended Interest rate contracts Interest Expense $ (78) $ (266) Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Nine Months Ended Nine Months Ended Interest rate contracts Interest Expense $ (496) $ (779) Derivatives Not Designated as Location of Gain (Loss) Amount of Gain (Loss) Three Months Ended Three Months Ended Forward contracts related to mortgage loans to be delivered for sale Net gains and fees on sales of loans $ 237 $ — Interest rate lock commitments Net gains and fees on sales of loans (350) — Total net gain/(loss) recognized in income $ (113) $ — Derivatives Not Designated as Location of Gain (Loss) Amount of Gain (Loss) Nine Months Ended Nine Months Ended Forward contracts related to mortgage loans to be delivered for sale Net gains and fees on sales of loans $ 993 $ — Interest rate lock commitments Net gains and fees on sales of loans (235) — Total net gain/(loss) recognized in income $ 758 $ — |
DISCLOSURES ABOUT FAIR VALUE _2
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Assets and Liabilities Recognized in the Balance Sheets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall at September 30, 2022, and December 31, 2021. Fair Value Measurements Using: September 30, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Treasury $ 2,067 $ 2,067 $ — $ — U.S. Government-sponsored agency securities 105,766 — 105,766 — State and municipal 1,344,956 — 1,339,484 5,472 U.S. Government-sponsored mortgage-backed securities 518,789 — 518,785 4 Corporate obligations 12,394 — 12,363 31 Derivative assets 99,086 — 99,086 — Derivative liabilities 98,809 — 98,809 — Fair Value Measurements Using: December 31, 2021 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Treasury $ 999 $ 999 $ — $ — U.S. Government-sponsored agency securities 95,136 — 95,136 — State and municipal 1,576,532 — 1,571,076 5,456 U.S. Government-sponsored mortgage-backed securities 667,605 — 667,601 4 Corporate obligations 4,279 — 4,248 31 Derivative assets 41,133 — 41,133 — Derivative liabilities 41,968 — 41,968 — |
Schedule of Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in the Balance Sheets using Significant Unobservable Level 3 Inputs | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for the three and nine months ended September 30, 2022 and 2021. Available for Sale Securities Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Balance at beginning of the period $ 8,630 $ 5,795 $ 5,491 $ 2,479 Included in other comprehensive income 29 (21) (597) 333 Purchases, issuances and settlements — — 5,111 3,241 Principal payments (3,152) (174) (4,498) (453) Ending balance $ 5,507 $ 5,600 $ 5,507 $ 5,600 |
Schedule of Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in the Balance Sheets | Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy at September 30, 2022, and December 31, 2021. Fair Value Measurements Using September 30, 2022 Fair Value Quoted Prices in Significant Other Significant Unobservable Collateral dependent loans $ 54,756 $ — $ — $ 54,756 Fair Value Measurements Using December 31, 2021 Fair Value Quoted Prices in Significant Other Significant Unobservable Collateral dependent loans $ 24,491 $ — $ — $ 24,491 Other real estate owned 96 — — 96 |
Schedule of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other than Goodwill | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2022 and December 31, 2021. September 30, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,472 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB- Discount rate 0.4% - 4.0% Weighted-average coupon 2.3% Corporate obligations and U.S. Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity (basis points) plus 200bps Weighted-average coupon 0% Collateral dependent loans $ 54,756 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 1.5% December 31, 2021 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,456 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB- Discount rate 0.75% - 4% Weighted-average coupon 3.7% Corporate obligations and U.S. Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity (basis points) plus 200bps Weighted-average coupon 0% Collateral dependent loans $ 24,491 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 5.5% Other real estate owned $ 96 Appraisals Discount to reflect current market conditions 0% - 44% Weighted-average discount of other real estate owned balance 43.5% |
Schedule of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2022 and December 31, 2021. September 30, 2022 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 119,532 $ 119,532 $ — $ — Interest-bearing deposits 179,593 179,593 — — Investment securities available for sale 1,983,972 2,067 1,976,398 5,507 Investment securities held to maturity 2,310,796 — 1,856,729 10,359 Loans held for sale 25,394 — 25,394 — Loans, net 11,423,300 — — 10,899,928 Federal Home Loan Bank stock 38,056 — 38,056 — Derivative assets 99,086 — 99,086 — Interest receivable 71,605 — 71,605 — Liabilities: Deposits $ 14,434,825 $ 13,589,440 $ 820,943 $ — Borrowings: Federal funds purchased 185,000 — 185,000 — Securities sold under repurchase agreements 194,482 — 194,468 — Federal Home Loan Bank advances 643,769 — 634,399 — Subordinated debentures and other borrowings 151,301 — 138,407 — Derivative liabilities 98,809 — 98,809 — Interest payable 4,971 — 4,971 — December 31, 2021 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 167,146 $ 167,146 $ — $ — Interest-bearing deposits 474,154 474,154 — — Investment securities available for sale 2,344,551 999 2,338,061 5,491 Investment securities held to maturity 2,179,802 — 2,188,600 13,903 Loans held for sale 11,187 — 11,187 — Loans, net 9,046,464 — — 9,068,319 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 41,133 — 41,133 — Interest receivable 57,187 — 57,187 — Liabilities: Deposits $ 12,732,577 $ 12,038,992 $ 690,089 $ — Borrowings: Securities sold under repurchase agreements 181,577 — 181,572 — Federal Home Loan Bank advances 334,055 — 337,005 — Subordinated debentures and other borrowings 118,618 — 107,892 — Interest rate swap liability 41,968 — 41,968 — Interest payable 2,762 — 2,762 — |
TRANSFERS ACCOUNTED FOR AS SE_2
TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Collateral Pledged for All Repurchase Agreements Accounted for as Secured Borrowings | The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of September 30, 2022 and December 31, 2021 were: September 30, 2022 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 194,482 $ — $ — $ — $ 194,482 December 31, 2021 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 181,577 $ — $ — $ — $ 181,577 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of September 30, 2022 and 2021: Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2021 $ 59,774 $ (660) $ (4,001) $ 55,113 Other comprehensive income (loss) before reclassifications (369,096) 400 — (368,696) Amounts reclassified from accumulated other comprehensive income (898) 392 — (506) Period change (369,994) 792 — (369,202) Balance at September 30, 2022 $ (310,220) $ 132 $ (4,001) $ (314,089) Balance at December 31, 2020 $ 87,988 $ (1,594) $ (11,558) $ 74,836 Other comprehensive income (loss) before reclassifications (31,379) 17 — (31,362) Amounts reclassified from accumulated other comprehensive income (4,200) 615 — (3,585) Period change (35,579) 632 — (34,947) Balance at September 30, 2021 $ 52,409 $ (962) $ (11,558) $ 39,889 |
Summary of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2022 and 2021. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2022 2021 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 481 $ 1,756 Other income - net realized gains on sales of available for sale securities Related income tax expense (101) (369) Income tax expense $ 380 $ 1,387 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (78) $ (266) Interest expense - subordinated debentures and term loans Related income tax benefit 16 56 Income tax expense $ (62) $ (210) Total reclassifications for the period, net of tax $ 318 $ 1,177 Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2022 2021 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,137 $ 5,316 Other income - net realized gains on sales of available for sale securities Related income tax expense (239) (1,116) Income tax expense $ 898 $ 4,200 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (496) $ (779) Interest expense - subordinated debentures and term loans Related income tax benefit 104 164 Income tax expense $ (392) $ (615) Total reclassifications for the period, net of tax $ 506 $ 3,585 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Components of Share Based Compensation Awards | The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. Three Months Ended Nine Months Ended 2022 2021 2022 2021 Stock and ESPP Options Pre-tax compensation expense $ 15 $ 16 $ 64 $ 131 Income tax expense (benefit) — — (74) (92) Stock and ESPP option expense, net of income taxes $ 15 $ 16 $ (10) $ 39 Restricted Stock Awards Pre-tax compensation expense $ 1,171 $ 1,201 $ 3,366 $ 3,484 Income tax expense (benefit) (332) (136) (792) (619) Restricted stock awards expense, net of income taxes $ 839 $ 1,065 $ 2,574 $ 2,865 Total Share-Based Compensation Pre-tax compensation expense $ 1,186 $ 1,217 $ 3,430 $ 3,615 Income tax expense (benefit) (332) (136) (866) (711) Total share-based compensation expense, net of income taxes $ 854 $ 1,081 $ 2,564 $ 2,904 |
Summary of Stock Option Activity Under Stock Option Plans | Stock option activity under the Corporation's stock option plans as of September 30, 2022 and changes during the nine months ended September 30, 2022, were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2022 28,500 $ 17.14 Transferred Options from Level One 148,600 $ 18.84 Exercised (20,095) $ 16.74 Outstanding September 30, 2022 157,005 $ 18.80 2.69 $ 3,121,261 Vested and Expected to Vest at September 30, 2022 157,005 $ 18.80 2.69 $ 3,121,261 Exercisable at September 30, 2022 157,005 $ 18.80 2.69 $ 3,121,261 |
Summary of Unvested RSAs Outstanding | The following table summarizes information on unvested RSAs outstanding as of September 30, 2022: Number of Shares Weighted-Average Unvested RSAs at January 1, 2022 411,259 $ 35.86 Granted 129,040 $ 40.60 Vested (112,443) $ 37.18 Forfeited (11,775) $ 36.54 Unvested RSAs at September 30, 2022 416,081 $ 36.95 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciliation of Federal Statutory to Actual Tax Expense | The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% $ 15,445 $ 12,984 $ 36,176 $ 39,082 Tax-exempt interest income (4,974) (4,196) (14,371) (11,795) Share-based compensation (79) 119 (146) 47 Tax-exempt earnings and gains on life insurance (1,397) (503) (2,026) (1,037) Tax credits (122) (127) (292) (277) State Income Tax 658 678 1,177 2,252 Other 262 107 420 36 Actual Tax Expense $ 9,793 $ 9,062 $ 20,938 $ 28,308 Effective Tax Rate 13.3 % 14.7 % 12.2 % 15.2 % |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic and Diluted Net Income Per Share | The following table reconciles basic and diluted net income per common share for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, 2022 2021 Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net income available to common stockholders $ 63,283 59,096,688 $ 1.08 $ 52,770 53,766,630 $ 0.98 Effect of potentially dilutive stock options and restricted stock awards 242,041 193,135 Diluted net income per common share $ 63,283 59,338,729 $ 1.08 $ 52,770 53,959,765 $ 0.98 Nine Months Ended September 30, 2022 2021 Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net Income Available to Common Stockholders Weighted-Average Common Shares Per Share Net income available to common stockholders $ 150,391 57,200,843 $ 2.63 $ 157,798 53,883,945 $ 2.93 Effect of potentially dilutive stock options and restricted stock awards 266,716 209,118 Diluted net income per common share $ 150,391 57,467,559 $ 2.62 $ 157,798 54,093,063 $ 2.92 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 01, 2022 USD ($) banking_center $ / shares shares | Apr. 01, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 $ / shares shares | |
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | $ 79,324 | $ 3,225 | ||||
Preferred Class B | ||||||
Business Acquisition [Line Items] | ||||||
Entity listing, depository receipt ratio | 0.01 | |||||
Preferred Class B | Level One | ||||||
Business Acquisition [Line Items] | ||||||
Dividend rate % | 7.50% | |||||
Entity listing, depository receipt ratio | 0.01 | |||||
Series A Preferred Stock | ||||||
Business Acquisition [Line Items] | ||||||
Liquidation value per share (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | $ 2,500 | |||
Preferred Stock, issued (in shares) | shares | 10,000 | 10,000 | 10,000 | |||
Level One | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired | 100% | |||||
Number of banking centers | banking_center | 17 | |||||
Exchange ratio | 0.7167 | |||||
Cash payment per share (in dollars per share) | $ / shares | $ 10.17 | |||||
Cash paid in acquisition | $ 79,300 | |||||
Other intangibles | 18,642 | |||||
Operating revenue | $ 18,300 | $ 38,700 | ||||
Net of tax of non-recurring expenses | $ 2,600 | $ 12,200 | ||||
Level One | Other Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Other intangibles | 18,600 | |||||
Level One | Core Deposits | ||||||
Business Acquisition [Line Items] | ||||||
Other intangibles | $ 17,200 | |||||
Estimated life | 10 years | |||||
Level One | Non-compete | ||||||
Business Acquisition [Line Items] | ||||||
Other intangibles | $ 1,400 | |||||
Estimated life | 2 years | |||||
Level One | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Issuance of common stock related to acquisitions (in shares) | shares | 5,600,000 | |||||
Level One | Series A Preferred Stock | ||||||
Business Acquisition [Line Items] | ||||||
Exchange ratio | 1 | |||||
Dividend rate % | 7.50% | |||||
Liquidation value per share (in dollars per share) | $ / shares | $ 2,500 | |||||
Preferred Stock, issued (in shares) | shares | 10,000 | |||||
Hoosier | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest acquired | 100% | |||||
Cash paid in acquisition | $ 3,225 | |||||
Other intangibles | 2,247 | |||||
Assets under management | $ 290,000 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | Apr. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 712,568 | $ 545,385 | $ 543,918 | ||
Level One | |||||
Business Acquisition [Line Items] | |||||
Cash and due from banks | $ 217,104 | ||||
Investment securities | 370,658 | ||||
Loans held for sale | 7,951 | ||||
Loans | 1,626,857 | ||||
Allowance for credit losses - loans | (16,599) | ||||
Premises and equipment | 11,848 | ||||
Federal Home Loan Bank stock | 11,688 | ||||
Interest receivable | 7,188 | ||||
Cash surrender value of life insurance | 30,143 | ||||
Tax asset, deferred and receivable | 16,223 | ||||
Other assets | 41,690 | ||||
Deposits | (1,930,790) | ||||
Securities sold under repurchase agreements | (1,521) | ||||
Federal Home Loan Bank advances | (160,043) | ||||
Subordinated debentures | (32,631) | ||||
Interest payable | (1,065) | ||||
Other liabilities | (42,813) | ||||
Net tangible assets acquired | 155,888 | ||||
Other intangibles | 18,642 | ||||
Goodwill | 167,183 | ||||
Purchase price | $ 341,713 | ||||
Hoosier | |||||
Business Acquisition [Line Items] | |||||
Cash and due from banks | $ 292 | ||||
Other assets | 35 | ||||
Other liabilities | (816) | ||||
Net tangible assets acquired | (489) | ||||
Other intangibles | 2,247 | ||||
Goodwill | 1,467 | ||||
Purchase price | $ 3,225 |
ACQUISITIONS - Pro Forma Financ
ACQUISITIONS - Pro Forma Financial Information (Details) - Level One - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Total revenue (net interest income plus other income) | $ 169,923 | $ 476,074 | $ 621,946 |
Net income | 63,752 | 148,280 | 237,031 |
Net income available to common stockholders | $ 63,283 | $ 146,873 | $ 235,156 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.08 | $ 2.49 | $ 3.96 |
Diluted (in dollars per share) | $ 1.08 | $ 2.48 | $ 3.95 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Approximate Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available for sale securities | ||
Amortized Cost | $ 2,376,492 | $ 2,268,655 |
Gross Unrealized Gains | 94 | 89,536 |
Gross Unrealized Losses | 392,614 | 13,640 |
Fair Value | 1,983,972 | 2,344,551 |
Held to maturity securities | ||
Amortized Cost | 2,311,041 | 2,180,047 |
Allowance for Credit Losses | 245 | 245 |
Net Carrying Amount | 2,310,796 | 2,179,802 |
Gross Unrealized Gains | 113 | 37,776 |
Gross Unrealized Losses | 444,066 | 15,320 |
Fair Value | 1,867,088 | 2,202,503 |
U.S. Treasury | ||
Available for sale securities | ||
Amortized Cost | 2,107 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 40 | 1 |
Fair Value | 2,067 | 999 |
U.S. Government-sponsored agency securities | ||
Available for sale securities | ||
Amortized Cost | 121,907 | 96,244 |
Gross Unrealized Gains | 0 | 437 |
Gross Unrealized Losses | 16,141 | 1,545 |
Fair Value | 105,766 | 95,136 |
Held to maturity securities | ||
Amortized Cost | 399,089 | 371,457 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 399,089 | 371,457 |
Gross Unrealized Gains | 0 | 226 |
Gross Unrealized Losses | 66,514 | 7,268 |
Fair Value | 332,575 | 364,415 |
State and municipal | ||
Available for sale securities | ||
Amortized Cost | 1,611,859 | 1,495,696 |
Gross Unrealized Gains | 93 | 81,734 |
Gross Unrealized Losses | 266,996 | 898 |
Fair Value | 1,344,956 | 1,576,532 |
Held to maturity securities | ||
Amortized Cost | 1,114,312 | 1,057,301 |
Allowance for Credit Losses | 245 | 245 |
Net Carrying Amount | 1,114,067 | 1,057,056 |
Gross Unrealized Gains | 113 | 29,593 |
Gross Unrealized Losses | 256,834 | 2,170 |
Fair Value | 857,591 | 1,084,724 |
U.S. Government-sponsored mortgage-backed securities | ||
Available for sale securities | ||
Amortized Cost | 627,583 | 671,684 |
Gross Unrealized Gains | 1 | 7,109 |
Gross Unrealized Losses | 108,795 | 11,188 |
Fair Value | 518,789 | 667,605 |
Held to maturity securities | ||
Amortized Cost | 796,140 | 749,789 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 796,140 | 749,789 |
Gross Unrealized Gains | 0 | 7,957 |
Gross Unrealized Losses | 120,709 | 5,881 |
Fair Value | 675,431 | 751,865 |
Corporate obligations | ||
Available for sale securities | ||
Amortized Cost | 13,036 | 4,031 |
Gross Unrealized Gains | 0 | 256 |
Gross Unrealized Losses | 642 | 8 |
Fair Value | 12,394 | 4,279 |
Foreign investment | ||
Held to maturity securities | ||
Amortized Cost | 1,500 | 1,500 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 1,500 | 1,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 9 | 1 |
Fair Value | $ 1,491 | $ 1,499 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | |||
Accrued interest on investment securities | $ 27,500 | $ 26,800 | |
Allowance for credit losses | 245 | 245 | |
Carrying value of securities pledged as collateral | 965,800 | 873,200 | |
Securities sold under repurchase agreements | 231,800 | 175,100 | |
State and municipal | |||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | |||
Allowance for credit losses | $ 245 | $ 245 | |
State and municipal | Cumulative effect of ASC 326 adoption | |||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | |||
Allowance for credit losses | $ 245 |
INVESTMENT SECURITIES - Amort_2
INVESTMENT SECURITIES - Amortized Cost of Investment Securities Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | $ 2,311,041 | $ 2,180,047 |
Aaa | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 171,954 | |
Aa1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 162,890 | |
Aa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 185,511 | |
Aa3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 135,285 | |
A1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 131,413 | |
A2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 10,167 | |
A3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 10,115 | |
Non-rated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,503,706 | |
State and municipal | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,114,312 | $ 1,057,301 |
State and municipal | Aaa | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 101,372 | |
State and municipal | Aa1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 162,890 | |
State and municipal | Aa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 185,511 | |
State and municipal | Aa3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 135,285 | |
State and municipal | A1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 131,413 | |
State and municipal | A2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 10,167 | |
State and municipal | A3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 10,115 | |
State and municipal | Non-rated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 377,559 | |
Other | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,196,729 | |
Other | Aaa | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 70,582 | |
Other | Aa1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 0 | |
Other | Aa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 0 | |
Other | Aa3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 0 | |
Other | A1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 0 | |
Other | A2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 0 | |
Other | A3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 0 | |
Other | Non-rated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | $ 1,126,147 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Fair Value | ||
Less than 12 Months | $ 1,517,710 | $ 636,389 |
12 Months or Longer | 441,601 | 8,829 |
Total | 1,959,311 | 645,218 |
Gross Unrealized Losses | ||
Less than 12 Months | 266,056 | 13,239 |
12 Months or Longer | 126,558 | 401 |
Total | $ 392,614 | $ 13,640 |
Number of Securities | security | 1,281 | 161 |
U.S. Treasury | ||
Fair Value | ||
Less than 12 Months | $ 2,067 | $ 999 |
12 Months or Longer | 0 | 0 |
Total | 2,067 | 999 |
Gross Unrealized Losses | ||
Less than 12 Months | 40 | 1 |
12 Months or Longer | 0 | 0 |
Total | $ 40 | $ 1 |
Number of Securities | security | 4 | 1 |
U.S. Government-sponsored agency securities | ||
Fair Value | ||
Less than 12 Months | $ 67,039 | $ 68,524 |
12 Months or Longer | 38,727 | 0 |
Total | 105,766 | 68,524 |
Gross Unrealized Losses | ||
Less than 12 Months | 7,453 | 1,545 |
12 Months or Longer | 8,688 | 0 |
Total | $ 16,141 | $ 1,545 |
Number of Securities | security | 17 | 8 |
State and municipal | ||
Fair Value | ||
Less than 12 Months | $ 1,229,682 | $ 138,187 |
12 Months or Longer | 90,765 | 505 |
Total | 1,320,447 | 138,692 |
Gross Unrealized Losses | ||
Less than 12 Months | 234,780 | 894 |
12 Months or Longer | 32,216 | 4 |
Total | $ 266,996 | $ 898 |
Number of Securities | security | 1,074 | 103 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | $ 206,559 | $ 427,687 |
12 Months or Longer | 312,109 | 8,324 |
Total | 518,668 | 436,011 |
Gross Unrealized Losses | ||
Less than 12 Months | 23,141 | 10,791 |
12 Months or Longer | 85,654 | 397 |
Total | $ 108,795 | $ 11,188 |
Number of Securities | security | 176 | 48 |
Corporate obligations | ||
Fair Value | ||
Less than 12 Months | $ 12,363 | $ 992 |
12 Months or Longer | 0 | 0 |
Total | 12,363 | 992 |
Gross Unrealized Losses | ||
Less than 12 Months | 642 | 8 |
12 Months or Longer | 0 | 0 |
Total | $ 642 | $ 8 |
Number of Securities | security | 10 | 1 |
INVESTMENT SECURITIES - Inves_2
INVESTMENT SECURITIES - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - Investments reported at less than historical cost - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Historical cost | $ 2,351,925 | $ 658,858 |
Fair value | 1,959,311 | 645,218 |
Gross unrealized losses | $ 392,614 | $ 13,640 |
Percent of the Corporation's investments available for sale | 98.80% | 27.50% |
INVESTMENT SECURITIES - Amort_3
INVESTMENT SECURITIES - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 4,646 | $ 6,954 |
Due after one through five years | 14,329 | 5,097 |
Due after five through ten years | 176,931 | 120,460 |
Due after ten years | 1,553,003 | 1,464,460 |
Total debt securities with a single maturity date | 1,748,909 | 1,596,971 |
Total investment securities | 2,376,492 | 2,268,655 |
Fair Value | ||
Due in one year or less | 4,617 | 6,965 |
Due after one through five years | 13,776 | 5,309 |
Due after five through ten years | 161,885 | 126,816 |
Due after ten years | 1,284,905 | 1,537,856 |
Total debt securities with a single maturity date | 1,465,183 | 1,676,946 |
Total investment securities | 1,983,972 | 2,344,551 |
Amortized Cost | ||
Due in one year or less | 6,428 | 6,971 |
Due after one through five years | 71,303 | 30,272 |
Due after five through ten years | 156,564 | 177,203 |
Due after ten years | 1,280,606 | 1,215,812 |
Total debt securities with a single maturity date | 1,514,901 | 1,430,258 |
Amortized Cost | 2,311,041 | 2,180,047 |
Fair Value | ||
Due in one year or less | 6,439 | 6,995 |
Due after one through five years | 67,777 | 31,946 |
Due after five through ten years | 139,284 | 180,129 |
Due after ten years | 978,157 | 1,231,568 |
Total debt securities with a single maturity date | 1,191,657 | 1,450,638 |
Investment securities held to maturity | 1,867,088 | 2,202,503 |
U.S. Government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
U.S. Government-sponsored mortgage-backed securities | 627,583 | 671,684 |
Fair Value | ||
U.S. Government-sponsored mortgage-backed securities | 518,789 | 667,605 |
Total investment securities | 518,789 | 667,605 |
Amortized Cost | ||
U.S. Government-sponsored mortgage-backed securities | 796,140 | 749,789 |
Amortized Cost | 796,140 | 749,789 |
Fair Value | ||
U.S. Government-sponsored mortgage-backed securities | 675,431 | 751,865 |
Investment securities held to maturity | $ 675,431 | $ 751,865 |
INVESTMENT SECURITIES - Gross G
INVESTMENT SECURITIES - Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Sales and redemptions of investment securities available for sale: | ||||
Gross gains | $ 495 | $ 1,915 | $ 1,176 | $ 5,814 |
Gross losses | 14 | 159 | 39 | 498 |
Net gains on sales and redemptions of investment securities available for sale | $ 481 | $ 1,756 | $ 1,137 | $ 5,316 |
LOANS AND ALLOWANCE - Narrative
LOANS AND ALLOWANCE - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Receivables [Abstract] | ||||||||
Loans held for sale | $ 25,394,000 | $ 25,394,000 | $ 11,187,000 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | 11,650,002,000 | 11,650,002,000 | 9,241,861,000 | |||||
Loans with an origination year of 2021 | 2,805,112,000 | 2,805,112,000 | 2,456,983,000 | |||||
Loans with an origination year of 2020 | 2,067,592,000 | 2,067,592,000 | 778,086,000 | |||||
Interest income recognized on non-accrual loans | 0 | $ 0 | 0 | $ 0 | ||||
Allowance for credit losses increased | 427,000 | 31,300,000 | ||||||
Allowance for credit losses on PCD loans | 16,599,000 | |||||||
CECL Day 1 non-PCD provision for credit losses | 13,955,000 | |||||||
Net recoveries | $ 427,000 | $ 751,000 | ||||||
Standby letters of credit usual term | 2 years | 2 years | ||||||
Off-balance sheet commitments | $ 23,300,000 | $ 23,300,000 | $ 20,500,000 | |||||
CECL Day 1 unfunded commitments provision for credit losses | 2,800,000 | |||||||
Allowance on Collateral Dependent Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Increase in individually evaluated for impairment | 46,200,000 | |||||||
Cumulative effect of ASC 326 adoption | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Off-balance sheet commitments | $ 20,500,000 | |||||||
Past Due | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | 37,900,000 | 37,900,000 | 34,700,000 | |||||
Increase (decrease) in past due loans | 3,200,000 | |||||||
PPP loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | 11,200,000 | 11,200,000 | 106,600,000 | |||||
Loans with an origination year of 2021 | 11,100,000 | 11,100,000 | 100,300,000 | |||||
Loans with an origination year of 2020 | 156,000 | 156,000 | 6,300,000 | |||||
Residential | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | 1,990,668,000 | 1,990,668,000 | 1,159,127,000 | |||||
Loans with an origination year of 2021 | 501,954,000 | 501,954,000 | 356,660,000 | |||||
Loans with an origination year of 2020 | 418,980,000 | 418,980,000 | 104,819,000 | |||||
Increase (decrease) in past due loans | $ 5,600,000 | |||||||
Percentage of troubled debt restructured loans | 100% | |||||||
Mortgage loans with formal foreclosure proceedings | 2,000,000 | $ 3,900,000 | $ 2,000,000 | $ 3,900,000 | ||||
Home equity | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | 621,619,000 | 621,619,000 | 523,754,000 | |||||
Loans with an origination year of 2021 | 77,715,000 | 77,715,000 | 17,641,000 | |||||
Loans with an origination year of 2020 | 18,398,000 | 18,398,000 | 2,025,000 | |||||
Increase (decrease) in past due loans | 2,800,000 | |||||||
Commercial real estate, non-owner occupied | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | 2,299,272,000 | 2,299,272,000 | 2,135,459,000 | |||||
Loans with an origination year of 2021 | 620,181,000 | 620,181,000 | 852,798,000 | |||||
Loans with an origination year of 2020 | $ 660,713,000 | 660,713,000 | $ 227,510,000 | |||||
Increase (decrease) in past due loans | (5,600,000) | |||||||
Percentage of troubled debt restructured loans | 99.90% | 92.30% | ||||||
Level One | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for credit losses on PCD loans | 16,600,000 | |||||||
CECL Day 1 non-PCD provision for credit losses | 14,000,000 | |||||||
CECL Day 1 unfunded commitments provision for credit losses | $ 2,800,000 | |||||||
Loans | $ 1,626,857,000 | |||||||
Level One | PPP loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans | $ 43,500,000 |
LOANS AND ALLOWANCE - Compositi
LOANS AND ALLOWANCE - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 11,650,002 | $ 9,241,861 |
Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,330,529 | 2,714,565 |
Agricultural land, production and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 221,954 | 246,442 |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 828,923 | 523,066 |
Commercial real estate, non-owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,299,272 | 2,135,459 |
Commercial real estate, owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,268,567 | 986,720 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,990,668 | 1,159,127 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 621,619 | 523,754 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 173,225 | 146,092 |
Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 915,245 | $ 806,636 |
LOANS AND ALLOWANCE - Risk Grad
LOANS AND ALLOWANCE - Risk Grading of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | $ 2,734,634 | $ 3,023,847 |
Fiscal year before current fiscal year | 2,805,112 | 2,456,983 |
Two years before current fiscal year | 2,067,592 | 778,086 |
Three years before current fiscal year | 715,631 | 359,554 |
Four years before current fiscal year | 421,042 | 353,319 |
Prior | 891,729 | 605,794 |
Revolving loans amortized cost basis | 2,000,194 | 1,664,006 |
Revolving loans converted to term | 14,068 | 272 |
Total | 11,650,002 | 9,241,861 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 890,469 | 1,033,127 |
Fiscal year before current fiscal year | 658,337 | 375,587 |
Two years before current fiscal year | 204,547 | 152,142 |
Three years before current fiscal year | 141,850 | 68,827 |
Four years before current fiscal year | 73,060 | 23,936 |
Prior | 51,996 | 32,992 |
Revolving loans amortized cost basis | 1,304,732 | 1,027,954 |
Revolving loans converted to term | 5,538 | 0 |
Total | 3,330,529 | 2,714,565 |
Commercial and industrial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 878,457 | 1,019,757 |
Fiscal year before current fiscal year | 614,161 | 362,372 |
Two years before current fiscal year | 186,559 | 144,520 |
Three years before current fiscal year | 125,026 | 65,165 |
Four years before current fiscal year | 66,915 | 21,575 |
Prior | 47,867 | 30,420 |
Revolving loans amortized cost basis | 1,230,085 | 990,335 |
Revolving loans converted to term | 5,314 | 0 |
Total | 3,154,384 | 2,634,144 |
Commercial and industrial loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 1,521 | 10,559 |
Fiscal year before current fiscal year | 15,221 | 11,088 |
Two years before current fiscal year | 11,756 | 190 |
Three years before current fiscal year | 5,954 | 730 |
Four years before current fiscal year | 1,329 | 1,930 |
Prior | 2,527 | 1,825 |
Revolving loans amortized cost basis | 26,744 | 15,026 |
Revolving loans converted to term | 155 | 0 |
Total | 65,207 | 41,348 |
Commercial and industrial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 10,491 | 2,811 |
Fiscal year before current fiscal year | 28,753 | 2,127 |
Two years before current fiscal year | 6,232 | 7,432 |
Three years before current fiscal year | 10,870 | 2,932 |
Four years before current fiscal year | 4,446 | 431 |
Prior | 1,602 | 747 |
Revolving loans amortized cost basis | 47,844 | 22,593 |
Revolving loans converted to term | 69 | 0 |
Total | 110,307 | 39,073 |
Commercial and industrial loans | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 202 | |
Two years before current fiscal year | 0 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year | 370 | |
Prior | 0 | |
Revolving loans amortized cost basis | 59 | |
Revolving loans converted to term | 0 | |
Total | 631 | |
Agricultural land, production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 34,850 | 50,775 |
Fiscal year before current fiscal year | 39,191 | 47,213 |
Two years before current fiscal year | 38,059 | 22,303 |
Three years before current fiscal year | 17,772 | 8,060 |
Four years before current fiscal year | 4,967 | 6,153 |
Prior | 32,548 | 36,353 |
Revolving loans amortized cost basis | 54,567 | 75,585 |
Revolving loans converted to term | 0 | 0 |
Total | 221,954 | 246,442 |
Agricultural land, production and other loans to farmers | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 34,381 | 50,251 |
Fiscal year before current fiscal year | 39,191 | 45,164 |
Two years before current fiscal year | 37,456 | 22,195 |
Three years before current fiscal year | 17,772 | 7,689 |
Four years before current fiscal year | 4,587 | 6,153 |
Prior | 32,159 | 36,074 |
Revolving loans amortized cost basis | 54,567 | 74,871 |
Revolving loans converted to term | 0 | 0 |
Total | 220,113 | 242,397 |
Agricultural land, production and other loans to farmers | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 286 | 0 |
Fiscal year before current fiscal year | 0 | 1,543 |
Two years before current fiscal year | 107 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 201 | 0 |
Prior | 362 | 252 |
Revolving loans amortized cost basis | 0 | 264 |
Revolving loans converted to term | 0 | 0 |
Total | 956 | 2,059 |
Agricultural land, production and other loans to farmers | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 183 | 524 |
Fiscal year before current fiscal year | 0 | 506 |
Two years before current fiscal year | 496 | 108 |
Three years before current fiscal year | 0 | 371 |
Four years before current fiscal year | 179 | 0 |
Prior | 27 | 27 |
Revolving loans amortized cost basis | 0 | 450 |
Revolving loans converted to term | 0 | 0 |
Total | 885 | 1,986 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 304,868 | 235,904 |
Fiscal year before current fiscal year | 303,989 | 201,132 |
Two years before current fiscal year | 176,598 | 63,589 |
Three years before current fiscal year | 20,314 | 979 |
Four years before current fiscal year | 878 | 1,762 |
Prior | 4,165 | 2,499 |
Revolving loans amortized cost basis | 18,111 | 17,201 |
Revolving loans converted to term | 0 | 0 |
Total | 828,923 | 523,066 |
Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 294,576 | 215,167 |
Fiscal year before current fiscal year | 298,393 | 200,169 |
Two years before current fiscal year | 174,152 | 63,589 |
Three years before current fiscal year | 20,314 | 979 |
Four years before current fiscal year | 878 | 1,762 |
Prior | 4,146 | 2,453 |
Revolving loans amortized cost basis | 18,111 | 17,201 |
Revolving loans converted to term | 0 | 0 |
Total | 810,570 | 501,320 |
Construction | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 10,278 | 20,737 |
Fiscal year before current fiscal year | 5,596 | 270 |
Two years before current fiscal year | 0 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 0 | 46 |
Revolving loans amortized cost basis | 0 | 0 |
Revolving loans converted to term | 0 | 0 |
Total | 15,874 | 21,053 |
Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 14 | 0 |
Fiscal year before current fiscal year | 0 | 693 |
Two years before current fiscal year | 2,446 | 0 |
Three years before current fiscal year | 0 | 0 |
Four years before current fiscal year | 0 | 0 |
Prior | 19 | 0 |
Revolving loans amortized cost basis | 0 | 0 |
Revolving loans converted to term | 0 | 0 |
Total | 2,479 | 693 |
Commercial real estate, non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 436,486 | 676,889 |
Fiscal year before current fiscal year | 620,181 | 852,798 |
Two years before current fiscal year | 660,713 | 227,510 |
Three years before current fiscal year | 183,224 | 113,089 |
Four years before current fiscal year | 140,710 | 109,556 |
Prior | 231,478 | 128,838 |
Revolving loans amortized cost basis | 18,392 | 26,779 |
Revolving loans converted to term | 8,088 | 0 |
Total | 2,299,272 | 2,135,459 |
Commercial real estate, non-owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 377,307 | 589,296 |
Fiscal year before current fiscal year | 604,997 | 688,406 |
Two years before current fiscal year | 597,682 | 227,332 |
Three years before current fiscal year | 164,320 | 111,971 |
Four years before current fiscal year | 124,987 | 103,400 |
Prior | 212,121 | 126,837 |
Revolving loans amortized cost basis | 18,382 | 26,779 |
Revolving loans converted to term | 8,088 | 0 |
Total | 2,107,884 | 1,874,021 |
Commercial real estate, non-owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 42,890 | 68,279 |
Fiscal year before current fiscal year | 4,567 | 149,480 |
Two years before current fiscal year | 54,691 | 0 |
Three years before current fiscal year | 18,904 | 0 |
Four years before current fiscal year | 11,577 | 0 |
Prior | 17,152 | 1,723 |
Revolving loans amortized cost basis | 10 | 0 |
Revolving loans converted to term | 0 | 0 |
Total | 149,791 | 219,482 |
Commercial real estate, non-owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 16,289 | 19,314 |
Fiscal year before current fiscal year | 10,617 | 14,912 |
Two years before current fiscal year | 8,340 | 178 |
Three years before current fiscal year | 0 | 1,118 |
Four years before current fiscal year | 4,146 | 6,156 |
Prior | 2,205 | 278 |
Revolving loans amortized cost basis | 0 | 0 |
Revolving loans converted to term | 0 | 0 |
Total | 41,597 | 41,956 |
Commercial real estate, owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 217,160 | 311,876 |
Fiscal year before current fiscal year | 338,466 | 404,099 |
Two years before current fiscal year | 360,434 | 93,076 |
Three years before current fiscal year | 130,562 | 44,837 |
Four years before current fiscal year | 72,798 | 47,059 |
Prior | 110,928 | 51,626 |
Revolving loans amortized cost basis | 38,219 | 34,147 |
Revolving loans converted to term | 0 | 0 |
Total | 1,268,567 | 986,720 |
Commercial real estate, owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 211,858 | 299,186 |
Fiscal year before current fiscal year | 327,263 | 392,383 |
Two years before current fiscal year | 356,155 | 92,338 |
Three years before current fiscal year | 125,517 | 43,252 |
Four years before current fiscal year | 68,189 | 46,044 |
Prior | 100,242 | 48,571 |
Revolving loans amortized cost basis | 36,897 | 33,998 |
Revolving loans converted to term | 0 | 0 |
Total | 1,226,121 | 955,772 |
Commercial real estate, owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 2,301 | 5,665 |
Fiscal year before current fiscal year | 9,957 | 5,953 |
Two years before current fiscal year | 1,261 | 738 |
Three years before current fiscal year | 3,418 | 1,532 |
Four years before current fiscal year | 1,339 | 902 |
Prior | 3,883 | 1,301 |
Revolving loans amortized cost basis | 1,322 | 149 |
Revolving loans converted to term | 0 | 0 |
Total | 23,481 | 16,240 |
Commercial real estate, owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 3,001 | 7,025 |
Fiscal year before current fiscal year | 1,246 | 5,763 |
Two years before current fiscal year | 3,018 | 0 |
Three years before current fiscal year | 1,627 | 53 |
Four years before current fiscal year | 3,270 | 113 |
Prior | 6,791 | 1,754 |
Revolving loans amortized cost basis | 0 | 0 |
Revolving loans converted to term | 0 | 0 |
Total | 18,953 | 14,708 |
Commercial real estate, owner occupied | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 0 | |
Two years before current fiscal year | 0 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year | 0 | |
Prior | 12 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Total | 12 | |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 621,156 | 351,764 |
Fiscal year before current fiscal year | 501,954 | 356,660 |
Two years before current fiscal year | 418,980 | 104,819 |
Three years before current fiscal year | 114,861 | 71,299 |
Four years before current fiscal year | 82,529 | 55,520 |
Prior | 245,115 | 216,032 |
Revolving loans amortized cost basis | 5,890 | 2,955 |
Revolving loans converted to term | 183 | 78 |
Total | 1,990,668 | 1,159,127 |
Residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 617,087 | 349,726 |
Fiscal year before current fiscal year | 497,367 | 353,691 |
Two years before current fiscal year | 415,995 | 103,028 |
Three years before current fiscal year | 112,715 | 69,745 |
Four years before current fiscal year | 80,783 | 55,240 |
Prior | 240,572 | 210,669 |
Revolving loans amortized cost basis | 5,735 | 2,955 |
Revolving loans converted to term | 128 | 73 |
Total | 1,970,382 | 1,145,127 |
Residential | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 3,333 | 1,034 |
Fiscal year before current fiscal year | 2,946 | 1,394 |
Two years before current fiscal year | 828 | 1,456 |
Three years before current fiscal year | 1,128 | 306 |
Four years before current fiscal year | 137 | 172 |
Prior | 3,283 | 2,106 |
Revolving loans amortized cost basis | 0 | 0 |
Revolving loans converted to term | 55 | 0 |
Total | 11,710 | 6,468 |
Residential | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 736 | 1,004 |
Fiscal year before current fiscal year | 1,641 | 1,575 |
Two years before current fiscal year | 2,157 | 335 |
Three years before current fiscal year | 1,018 | 1,248 |
Four years before current fiscal year | 1,609 | 108 |
Prior | 1,260 | 3,257 |
Revolving loans amortized cost basis | 155 | 0 |
Revolving loans converted to term | 0 | 5 |
Total | 8,576 | 7,532 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 28,341 | 64,365 |
Fiscal year before current fiscal year | 77,715 | 17,641 |
Two years before current fiscal year | 18,398 | 2,025 |
Three years before current fiscal year | 1,642 | 2,135 |
Four years before current fiscal year | 1,583 | 1,341 |
Prior | 4,034 | 3,526 |
Revolving loans amortized cost basis | 489,647 | 432,527 |
Revolving loans converted to term | 259 | 194 |
Total | 621,619 | 523,754 |
Home equity | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 28,015 | 63,845 |
Fiscal year before current fiscal year | 77,360 | 17,556 |
Two years before current fiscal year | 15,547 | 1,977 |
Three years before current fiscal year | 1,596 | 2,127 |
Four years before current fiscal year | 1,479 | 1,250 |
Prior | 3,958 | 3,432 |
Revolving loans amortized cost basis | 485,056 | 427,437 |
Revolving loans converted to term | 259 | 194 |
Total | 613,270 | 517,818 |
Home equity | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 326 | 0 |
Fiscal year before current fiscal year | 0 | 85 |
Two years before current fiscal year | 0 | 48 |
Three years before current fiscal year | 46 | 0 |
Four years before current fiscal year | 39 | 0 |
Prior | 13 | 24 |
Revolving loans amortized cost basis | 3,032 | 3,451 |
Revolving loans converted to term | 0 | 0 |
Total | 3,456 | 3,608 |
Home equity | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 0 | 520 |
Fiscal year before current fiscal year | 355 | 0 |
Two years before current fiscal year | 2,851 | 0 |
Three years before current fiscal year | 0 | 8 |
Four years before current fiscal year | 65 | 91 |
Prior | 63 | 70 |
Revolving loans amortized cost basis | 1,559 | 1,639 |
Revolving loans converted to term | 0 | 0 |
Total | 4,893 | 2,328 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 52,981 | 67,828 |
Fiscal year before current fiscal year | 48,967 | 23,537 |
Two years before current fiscal year | 15,183 | 11,943 |
Three years before current fiscal year | 6,629 | 11,230 |
Four years before current fiscal year | 6,830 | 2,028 |
Prior | 4,563 | 4,986 |
Revolving loans amortized cost basis | 38,072 | 24,540 |
Revolving loans converted to term | 0 | 0 |
Total | 173,225 | 146,092 |
Individuals' loans for household and other personal expenditures | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 52,915 | 67,749 |
Fiscal year before current fiscal year | 48,873 | 23,452 |
Two years before current fiscal year | 15,018 | 11,893 |
Three years before current fiscal year | 6,596 | 11,197 |
Four years before current fiscal year | 6,723 | 2,008 |
Prior | 4,542 | 4,928 |
Revolving loans amortized cost basis | 37,346 | 24,406 |
Revolving loans converted to term | 0 | 0 |
Total | 172,013 | 145,633 |
Individuals' loans for household and other personal expenditures | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 66 | 79 |
Fiscal year before current fiscal year | 92 | 85 |
Two years before current fiscal year | 165 | 50 |
Three years before current fiscal year | 33 | 33 |
Four years before current fiscal year | 107 | 20 |
Prior | 21 | 58 |
Revolving loans amortized cost basis | 726 | 134 |
Revolving loans converted to term | 0 | 0 |
Total | 1,210 | 459 |
Individuals' loans for household and other personal expenditures | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 0 | |
Fiscal year before current fiscal year | 2 | |
Two years before current fiscal year | 0 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year | 0 | |
Prior | 0 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Total | 2 | |
Public finance and other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 148,323 | 231,319 |
Fiscal year before current fiscal year | 216,312 | 178,316 |
Two years before current fiscal year | 174,680 | 100,679 |
Three years before current fiscal year | 98,777 | 39,098 |
Four years before current fiscal year | 37,687 | 105,964 |
Prior | 206,902 | 128,942 |
Revolving loans amortized cost basis | 32,564 | 22,318 |
Revolving loans converted to term | 0 | 0 |
Total | 915,245 | 806,636 |
Public finance and other commercial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current fiscal year | 148,323 | 231,319 |
Fiscal year before current fiscal year | 216,312 | 178,316 |
Two years before current fiscal year | 174,680 | 100,679 |
Three years before current fiscal year | 98,777 | 39,098 |
Four years before current fiscal year | 37,687 | 105,964 |
Prior | 206,902 | 128,942 |
Revolving loans amortized cost basis | 32,564 | 22,318 |
Revolving loans converted to term | 0 | 0 |
Total | $ 915,245 | $ 806,636 |
LOANS AND ALLOWANCE - Past Due
LOANS AND ALLOWANCE - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 11,650,002 | $ 9,241,861 |
Loans > 90 Days or More Past Due And Accruing | 764 | 963 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 11,612,074 | 9,207,113 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 11,701 | 15,006 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,304 | 7,056 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 16,923 | 12,686 |
Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,330,529 | 2,714,565 |
Loans > 90 Days or More Past Due And Accruing | 141 | 675 |
Commercial and industrial loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,324,800 | 2,708,539 |
Commercial and industrial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,554 | 2,602 |
Commercial and industrial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 652 | 2,437 |
Commercial and industrial loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,523 | 987 |
Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 221,954 | 246,442 |
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Agricultural land, production and other loans to farmers | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 221,577 | 246,380 |
Agricultural land, production and other loans to farmers | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 320 | 36 |
Agricultural land, production and other loans to farmers | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Agricultural land, production and other loans to farmers | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 57 | 26 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 828,923 | 523,066 |
Loans > 90 Days or More Past Due And Accruing | 570 | 0 |
Construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 828,353 | 522,349 |
Construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 717 |
Construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 570 | 0 |
Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,299,272 | 2,135,459 |
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate, non-owner occupied | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,294,231 | 2,124,853 |
Commercial real estate, non-owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 3,327 |
Commercial real estate, non-owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 152 | 0 |
Commercial real estate, non-owner occupied | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,889 | 7,279 |
Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,268,567 | 986,720 |
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate, owner occupied | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,267,888 | 985,785 |
Commercial real estate, owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 337 | 643 |
Commercial real estate, owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate, owner occupied | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 342 | 292 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,990,668 | 1,159,127 |
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,974,219 | 1,148,294 |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,386 | 3,979 |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,938 | 4,255 |
Residential | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,125 | 2,599 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 621,619 | 523,754 |
Loans > 90 Days or More Past Due And Accruing | 53 | 288 |
Home equity | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 613,749 | 518,643 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,689 | 3,327 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 766 | 281 |
Home equity | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,415 | 1,503 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 173,225 | 146,092 |
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Individuals' loans for household and other personal expenditures | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 172,012 | 145,634 |
Individuals' loans for household and other personal expenditures | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 415 | 375 |
Individuals' loans for household and other personal expenditures | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 796 | 83 |
Individuals' loans for household and other personal expenditures | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2 | 0 |
Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 915,245 | 806,636 |
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Public finance and other commercial loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 915,245 | 806,636 |
Public finance and other commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Public finance and other commercial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Public finance and other commercial loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE - Non-Accru
LOANS AND ALLOWANCE - Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | $ 43,508 | $ 43,062 |
Non-Accrual Loans with no Allowance for Credit Losses | 5,835 | 9,080 |
Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 2,945 | 7,598 |
Non-Accrual Loans with no Allowance for Credit Losses | 1,354 | 263 |
Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 57 | 631 |
Non-Accrual Loans with no Allowance for Credit Losses | 0 | 524 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 0 | 685 |
Non-Accrual Loans with no Allowance for Credit Losses | 0 | 0 |
Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 20,189 | 23,029 |
Non-Accrual Loans with no Allowance for Credit Losses | 288 | 6,133 |
Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 4,997 | 411 |
Non-Accrual Loans with no Allowance for Credit Losses | 3,471 | 0 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 10,703 | 9,153 |
Non-Accrual Loans with no Allowance for Credit Losses | 722 | 2,160 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 4,607 | 1,552 |
Non-Accrual Loans with no Allowance for Credit Losses | 0 | 0 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 10 | 3 |
Non-Accrual Loans with no Allowance for Credit Losses | $ 0 | $ 0 |
LOANS AND ALLOWANCE - Amortized
LOANS AND ALLOWANCE - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | $ 85,698 | $ 39,531 | ||||
Allowance on Collateral Dependent Loans | 226,702 | $ 226,275 | 195,397 | $ 199,972 | $ 199,775 | $ 130,648 |
Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 43,740 | 8,075 | ||||
Agricultural land, production and other loans to farmers | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 775 | |||||
Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 2,447 | 685 | ||||
Commercial real estate, non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 27,705 | 23,652 | ||||
Commercial real estate, owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 8,911 | 1,044 | ||||
Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 2,521 | 4,906 | ||||
Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 374 | 394 | ||||
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 36,616 | 25,220 | ||||
Commercial Real Estate | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Commercial Real Estate | Agricultural land, production and other loans to farmers | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 524 | |||||
Commercial Real Estate | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Commercial Real Estate | Commercial real estate, non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 27,705 | 23,652 | ||||
Commercial Real Estate | Commercial real estate, owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 8,911 | 1,044 | ||||
Commercial Real Estate | Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Commercial Real Estate | Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Residential Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 5,342 | 5,985 | ||||
Residential Real Estate | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Residential Real Estate | Agricultural land, production and other loans to farmers | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | |||||
Residential Real Estate | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 2,447 | 685 | ||||
Residential Real Estate | Commercial real estate, non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Residential Real Estate | Commercial real estate, owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Residential Real Estate | Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 2,521 | 4,906 | ||||
Residential Real Estate | Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 374 | 394 | ||||
Other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 43,740 | 8,326 | ||||
Other | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 43,740 | 8,075 | ||||
Other | Agricultural land, production and other loans to farmers | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 251 | |||||
Other | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Other | Commercial real estate, non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Other | Commercial real estate, owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Other | Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Other | Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Allowance on Collateral Dependent Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 16,924 | 8,633 | ||||
Allowance on Collateral Dependent Loans | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 13,040 | 2,672 | ||||
Allowance on Collateral Dependent Loans | Agricultural land, production and other loans to farmers | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 0 | |||||
Allowance on Collateral Dependent Loans | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 1 | 82 | ||||
Allowance on Collateral Dependent Loans | Commercial real estate, non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 2,705 | 5,510 | ||||
Allowance on Collateral Dependent Loans | Commercial real estate, owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 916 | 0 | ||||
Allowance on Collateral Dependent Loans | Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | 262 | 305 | ||||
Allowance on Collateral Dependent Loans | Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance on Collateral Dependent Loans | $ 0 | $ 64 |
LOANS AND ALLOWANCE - Troubled
LOANS AND ALLOWANCE - Troubled Debt Restructurings by Modification Type (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 USD ($) loan | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre- Modification Recorded Balance | $ 12,938 | $ 53 | $ 13,998 |
Post - Modification Recorded Balance | $ 12,992 | $ 56 | $ 14,054 |
Number of Loans | loan | 2 | 1 | 14 |
Term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 12,976 | $ 13,773 | |
Rate Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 16 | $ 56 | 142 |
Combination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 139 | ||
Commercial and industrial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre- Modification Recorded Balance | 348 | ||
Post - Modification Recorded Balance | $ 348 | ||
Number of Loans | loan | 2 | ||
Commercial and industrial loans | Term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 348 | ||
Commercial and industrial loans | Rate Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 0 | ||
Commercial and industrial loans | Combination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 0 | ||
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre- Modification Recorded Balance | 16 | 16 | |
Post - Modification Recorded Balance | $ 16 | $ 16 | |
Number of Loans | loan | 1 | 1 | |
Construction | Term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 0 | $ 0 | |
Construction | Rate Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 16 | 16 | |
Construction | Combination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 0 | ||
Commercial real estate, non-owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre- Modification Recorded Balance | 12,922 | 12,922 | |
Post - Modification Recorded Balance | $ 12,976 | $ 12,976 | |
Number of Loans | loan | 1 | 1 | |
Commercial real estate, non-owner occupied | Term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 12,976 | $ 12,976 | |
Commercial real estate, non-owner occupied | Rate Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 0 | 0 | |
Commercial real estate, non-owner occupied | Combination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 0 | ||
Commercial real estate, owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre- Modification Recorded Balance | 21 | ||
Post - Modification Recorded Balance | $ 21 | ||
Number of Loans | loan | 1 | ||
Commercial real estate, owner occupied | Term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 0 | ||
Commercial real estate, owner occupied | Rate Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 0 | ||
Commercial real estate, owner occupied | Combination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | 21 | ||
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre- Modification Recorded Balance | 53 | 691 | |
Post - Modification Recorded Balance | $ 56 | $ 693 | |
Number of Loans | loan | 1 | 9 | |
Residential | Term Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 449 | ||
Residential | Rate Modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 56 | 126 | |
Residential | Combination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post - Modification Recorded Balance | $ 118 |
LOANS AND ALLOWANCE - Modified
LOANS AND ALLOWANCE - Modified Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 USD ($) loan | Sep. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 7 | 7 |
Recorded Balance | $ | $ 759 | $ 759 |
Commercial and industrial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Recorded Balance | $ | $ 160 | $ 160 |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 5 | 5 |
Recorded Balance | $ | $ 599 | $ 599 |
LOANS AND ALLOWANCE - Purchased
LOANS AND ALLOWANCE - Purchased With Credit Deterioration (Details) $ in Thousands | Apr. 01, 2022 USD ($) |
Receivables [Abstract] | |
Purchase price of loans at acquisition | $ 41,347 |
CECL Day 1 PCD ACL | 16,599 |
Par value of acquired loans at acquisition | $ 57,946 |
LOANS AND ALLOWANCE - Changes i
LOANS AND ALLOWANCE - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 226,275 | $ 199,775 | $ 195,397 | $ 130,648 |
Provision for credit losses | 0 | 0 | 0 | 0 |
CECL Day 1 non-PCD provision for credit losses | 13,955 | |||
CECL Day 1 PCD ACL | 16,599 | |||
Recoveries on loans | 1,315 | 835 | 3,536 | 1,941 |
Loans charged off | (888) | (638) | (2,785) | (6,672) |
Ending balance | 226,702 | 199,972 | 226,702 | 199,972 |
Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 74,055 | |||
Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 204,703 | |||
Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 130,648 | |||
Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 94,228 | 63,681 | 69,935 | 47,115 |
Provision for credit losses | 10,142 | 3,496 | 18,518 | 666 |
CECL Day 1 non-PCD provision for credit losses | 2,957 | |||
CECL Day 1 PCD ACL | 12,970 | |||
Recoveries on loans | 81 | 204 | 789 | 544 |
Loans charged off | (306) | (137) | (1,024) | (1,105) |
Ending balance | 104,145 | 67,244 | 104,145 | 67,244 |
Commercial | Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 20,024 | |||
Commercial | Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 67,139 | |||
Commercial | Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 47,115 | |||
Commercial | Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 55,328 | 72,701 | 60,665 | 40,786 |
Provision for credit losses | (7,054) | (3,850) | (21,697) | (2,709) |
CECL Day 1 non-PCD provision for credit losses | 5,539 | |||
CECL Day 1 PCD ACL | 2,981 | |||
Recoveries on loans | 188 | 370 | 1,096 | 567 |
Loans charged off | (1) | (115) | (123) | (4,463) |
Ending balance | 48,461 | 69,106 | 48,461 | 69,106 |
Commercial Real Estate | Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 34,925 | |||
Commercial Real Estate | Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 75,711 | |||
Commercial Real Estate | Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 51,070 | |||
Commercial Real Estate | Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (10,284) | |||
Construction | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 27,401 | 17,077 | 20,206 | 10,284 |
Provision for credit losses | 186 | 567 | 5,862 | (1,444) |
CECL Day 1 non-PCD provision for credit losses | 871 | |||
CECL Day 1 PCD ACL | 648 | |||
Recoveries on loans | 824 | 0 | 824 | 1 |
Loans charged off | 0 | (4) | 0 | (6) |
Ending balance | 28,411 | 17,640 | 28,411 | 17,640 |
Construction | Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 8,805 | |||
Construction | Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 19,089 | |||
Construction | Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Construction | Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 10,284 | |||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Provision for credit losses | 0 | |||
Recoveries on loans | 0 | |||
Loans charged off | 0 | |||
Ending balance | 0 | 0 | ||
Consumer | Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Consumer | Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Consumer | Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 9,648 | |||
Consumer | Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (9,648) | |||
Residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Provision for credit losses | 0 | |||
Recoveries on loans | 0 | |||
Loans charged off | 0 | |||
Ending balance | 0 | 0 | ||
Residential | Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Residential | Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Residential | Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 22,815 | |||
Residential | Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (22,815) | |||
Consumer & Residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 49,318 | 46,316 | 44,591 | 32,463 |
Provision for credit losses | (3,274) | (213) | (2,683) | 3,487 |
CECL Day 1 non-PCD provision for credit losses | 4,588 | |||
CECL Day 1 PCD ACL | 0 | |||
Recoveries on loans | 222 | 261 | 827 | 829 |
Loans charged off | (581) | (382) | (1,638) | (1,098) |
Ending balance | $ 45,685 | $ 45,982 | $ 45,685 | 45,982 |
Consumer & Residential | Impact of adopting ASC 326 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 10,301 | |||
Consumer & Residential | Adjusted balance | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 42,764 | |||
Consumer & Residential | Previously reported | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | |||
Consumer & Residential | Credit risk reclassifications | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 32,463 |
LOANS AND ALLOWANCE - Amounts o
LOANS AND ALLOWANCE - Amounts of Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loan commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $ 4,764,847 | $ 3,917,215 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $ 43,239 | $ 34,613 |
LOANS AND ALLOWANCE - Allowance
LOANS AND ALLOWANCE - Allowance for Credit Losses, Off-balance Sheet (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |
Beginning balance | $ 20,500 |
CECL Day 1 unfunded commitments provision for credit losses | 2,800 |
Ending balance | $ 23,300 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | Apr. 01, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | |||||
Goodwill | $ 712,568 | $ 545,385 | $ 543,918 | ||
Level One | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 167,183 | ||||
Hoosier | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 1,467 |
GOODWILL - Goodwill (Details)
GOODWILL - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 545,385 | $ 543,918 |
Goodwill acquired | 167,183 | 1,467 |
Ending balance | $ 712,568 | $ 545,385 |
OTHER INTANGIBLES - Narrative (
OTHER INTANGIBLES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Apr. 01, 2022 | Apr. 01, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible asset amortization | $ 2,303 | $ 1,463 | $ 5,972 | $ 4,284 | ||
Minimum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Useful life of core deposit intangibles and other intangibles | 2 years | |||||
Maximum | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Useful life of core deposit intangibles and other intangibles | 10 years | |||||
Level One | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other intangibles | $ 18,642 | |||||
Level One | Core Deposits | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other intangibles | 17,200 | |||||
Level One | Non-compete | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other intangibles | $ 1,400 | |||||
Hoosier | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other intangibles | $ 2,247 | |||||
Hoosier | Customer Relationships | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other intangibles | $ 2,200 |
OTHER INTANGIBLES - Core Deposi
OTHER INTANGIBLES - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 104,643 | $ 102,396 |
Other intangibles acquired | 18,642 | 2,247 |
Accumulated amortization | (85,140) | (79,168) |
Total core deposit and other intangibles | $ 38,145 | $ 25,475 |
OTHER INTANGIBLES - Estimated F
OTHER INTANGIBLES - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortization Expense | ||
2022 | $ 2,303 | |
2023 | 8,742 | |
2024 | 7,271 | |
2025 | 6,028 | |
2026 | 4,910 | |
After 2026 | 8,891 | |
Total core deposit and other intangibles | $ 38,145 | $ 25,475 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 USD ($) loan derivative | Mar. 31, 2022 USD ($) derivative | Dec. 31, 2021 USD ($) derivative | |
Derivative [Line Items] | |||
Termination value of derivatives in a net liability position | $ 51 | ||
Derivative collateral posted | 195 | ||
Derivatives Designated as Hedges | |||
Derivative [Line Items] | |||
Estimated reclassification | $ 167 | ||
Derivatives Designated as Hedges | Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | |||
Derivative [Line Items] | |||
Number of interest rate derivatives held | derivative | 1 | 2 | 4 |
Notional amount of interest rate derivatives | $ 10,000 | $ 60,000 | |
Derivatives Designated as Hedges | Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Brokered Deposit | |||
Derivative [Line Items] | |||
Notional amount of interest rate derivatives | $ 24,000 | ||
Derivatives Designated as Hedges | Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Trust Preferred Debt | |||
Derivative [Line Items] | |||
Notional amount of interest rate derivatives | $ 26,000 | ||
Derivatives Designated as Hedges | Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Federal Home Loan Bank advances | |||
Derivative [Line Items] | |||
Number of interest rate derivatives held | loan | 1 | ||
Notional amount of interest rate derivatives | $ 10,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Corporation's Derivatives Designated as Hedges (Details) - Interest rate swaps on borrowings - Derivatives Designated as Hedges - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Assets | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 167 | $ 0 |
Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 0 | $ 835 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Amount of Loss Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | $ 94 | $ (20) | $ 507 | $ 22 |
Derivatives Designated as Hedging Instruments | Derivatives in Cash Flow Hedging Relationships | Interest Rate Products | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | $ 94 | $ (20) | $ 507 | $ 22 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) | $ (78) | $ (266) | $ (496) | $ (779) |
Derivatives Designated as Hedging Instruments | Interest rate contracts | Interest Expense | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) | $ (78) | $ (266) | $ (496) | $ (779) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Assets | ||
Notional Amount | ||
Included in other assets | $ 1,226,687 | $ 1,038,947 |
Fair Value | ||
Asset Derivatives | 98,919 | 41,133 |
Other Liabilities | ||
Notional Amount | ||
Included in other liabilities | 1,225,478 | 1,038,947 |
Fair Value | ||
Liability Derivatives | 98,809 | 41,133 |
Interest rate swaps | Other Assets | ||
Notional Amount | ||
Included in other assets | 1,200,105 | 1,038,947 |
Fair Value | ||
Asset Derivatives | 98,280 | 41,133 |
Interest rate swaps | Other Liabilities | ||
Notional Amount | ||
Included in other liabilities | 1,200,105 | 1,038,947 |
Fair Value | ||
Liability Derivatives | 98,280 | 41,133 |
Forward contracts related to mortgage loans to be delivered for sale | Other Assets | ||
Notional Amount | ||
Included in other assets | 21,333 | 0 |
Fair Value | ||
Asset Derivatives | 612 | 0 |
Forward contracts related to mortgage loans to be delivered for sale | Other Liabilities | ||
Notional Amount | ||
Included in other liabilities | 8,527 | 0 |
Fair Value | ||
Liability Derivatives | 172 | 0 |
Interest rate lock commitments | Other Assets | ||
Notional Amount | ||
Included in other assets | 5,249 | 0 |
Fair Value | ||
Asset Derivatives | 27 | 0 |
Interest rate lock commitments | Other Liabilities | ||
Notional Amount | ||
Included in other liabilities | 16,846 | 0 |
Fair Value | ||
Liability Derivatives | $ 357 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) Recognized Into Income Related to Non-designated Hedging Instruments (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized Income on Derivative | $ (113) | $ 0 | $ 758 | $ 0 |
Net gains and fees on sales of loans | Forward contracts related to mortgage loans to be delivered for sale | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized Income on Derivative | 237 | 0 | 993 | 0 |
Net gains and fees on sales of loans | Interest rate lock commitments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized Income on Derivative | $ (350) | $ 0 | $ (235) | $ 0 |
DISCLOSURES ABOUT FAIR VALUE _3
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $ 1,983,972 | $ 2,344,551 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,067 | 999 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,976,398 | 2,338,061 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 5,507 | 5,491 |
Recurring | Derivative liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 98,809 | 41,968 |
Recurring | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,067 | 999 |
Recurring | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 105,766 | 95,136 |
Recurring | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,344,956 | 1,576,532 |
Recurring | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 518,789 | 667,605 |
Recurring | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 12,394 | 4,279 |
Recurring | Derivative assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 99,086 | 41,133 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,067 | 999 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Derivative liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 98,809 | 41,968 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 105,766 | 95,136 |
Recurring | Significant Other Observable Inputs (Level 2) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,339,484 | 1,571,076 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 518,785 | 667,601 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 12,363 | 4,248 |
Recurring | Significant Other Observable Inputs (Level 2) | Derivative assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 99,086 | 41,133 |
Recurring | Significant Unobservable Inputs (Level 3) | Derivative liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 5,472 | 5,456 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4 | 4 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Recurring | Significant Unobservable Inputs (Level 3) | Derivative assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
DISCLOSURES ABOUT FAIR VALUE _4
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Available for Sale Securities | ||||
Balance at beginning of the period | $ 8,630 | $ 5,795 | $ 5,491 | $ 2,479 |
Included in other comprehensive income | 29 | (21) | (597) | 333 |
Purchases, issuances and settlements | 0 | 0 | 5,111 | 3,241 |
Principal payments | (3,152) | (174) | (4,498) | (453) |
Ending balance | $ 5,507 | $ 5,600 | $ 5,507 | $ 5,600 |
DISCLOSURES ABOUT FAIR VALUE _5
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 54,756 | $ 24,491 |
Collateral dependent loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Collateral dependent loans | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Collateral dependent loans | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 54,756 | 24,491 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 96 | |
Other real estate owned | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | |
Other real estate owned | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | |
Other real estate owned | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 96 |
DISCLOSURES ABOUT FAIR VALUE _6
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
State and municipal securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 5,472 | $ 5,456 |
State and municipal securities | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity/Call date | 1 month | 1 month |
US Muni BQ curve | A- | A- |
State and municipal securities | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity/Call date | 15 years | 15 years |
US Muni BQ curve | BBB | BBB- |
State and municipal securities | Discounted cash flow | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.004 | 0.0075 |
State and municipal securities | Discounted cash flow | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.040 | 0.04 |
State and municipal securities | Discounted cash flow | Weighted-average coupon | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0.023 | 0.037 |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 35 | $ 35 |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | Weighted-average coupon | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities, available-for-sale, measurement input | 0 | 0 |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | Risk free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate description | 3 month LIBOR | 3 month LIBOR |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | plus premium for illiquidity (basis points) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt securities, available-for-sale, measurement input | 200 | 200 |
Collateral dependent loans | Collateral based measurements | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 54,756 | $ 24,491 |
Collateral dependent loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0 | 0 |
Collateral dependent loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.10 | 0.10 |
Collateral dependent loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.015 | 0.055 |
Other real estate owned | Appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 96 | |
Other real estate owned | Appraisals | Discount to reflect current market conditions | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0 | |
Other real estate owned | Appraisals | Discount to reflect current market conditions | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.44 | |
Other real estate owned | Appraisals | Discount to reflect current market conditions | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.435 |
DISCLOSURES ABOUT FAIR VALUE _7
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Investment securities available for sale | $ 1,983,972 | $ 2,344,551 |
Investment securities held to maturity | 1,867,088 | 2,202,503 |
Loans held for sale | 25,394 | 11,187 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and due from banks | 119,532 | 167,146 |
Interest-bearing deposits | 179,593 | 474,154 |
Investment securities available for sale | 2,067 | 999 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Derivative assets | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities: | ||
Deposits | 13,589,440 | 12,038,992 |
Borrowings: | ||
Federal funds purchased | 0 | |
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and other borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Investment securities available for sale | 1,976,398 | 2,338,061 |
Investment securities held to maturity | 1,856,729 | 2,188,600 |
Loans held for sale | 25,394 | 11,187 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 38,056 | 28,736 |
Derivative assets | 99,086 | 41,133 |
Interest receivable | 71,605 | 57,187 |
Liabilities: | ||
Deposits | 820,943 | 690,089 |
Borrowings: | ||
Federal funds purchased | 185,000 | |
Securities sold under repurchase agreements | 194,468 | 181,572 |
Federal Home Loan Bank advances | 634,399 | 337,005 |
Subordinated debentures and other borrowings | 138,407 | 107,892 |
Derivative liabilities | 98,809 | 41,968 |
Interest payable | 4,971 | 2,762 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Investment securities available for sale | 5,507 | 5,491 |
Investment securities held to maturity | 10,359 | 13,903 |
Loans held for sale | 0 | 0 |
Loans, net | 10,899,928 | 9,068,319 |
Federal Home Loan Bank stock | 0 | 0 |
Derivative assets | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings: | ||
Federal funds purchased | 0 | |
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and other borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and due from banks | 119,532 | 167,146 |
Interest-bearing deposits | 179,593 | 474,154 |
Investment securities available for sale | 1,983,972 | 2,344,551 |
Investment securities held to maturity | 2,310,796 | 2,179,802 |
Loans held for sale | 25,394 | 11,187 |
Loans, net | 11,423,300 | 9,046,464 |
Federal Home Loan Bank stock | 38,056 | 28,736 |
Derivative assets | 99,086 | 41,133 |
Interest receivable | 71,605 | 57,187 |
Liabilities: | ||
Deposits | 14,434,825 | 12,732,577 |
Borrowings: | ||
Federal funds purchased | 185,000 | |
Securities sold under repurchase agreements | 194,482 | 181,577 |
Federal Home Loan Bank advances | 643,769 | 334,055 |
Subordinated debentures and other borrowings | 151,301 | 118,618 |
Derivative liabilities | 98,809 | 41,968 |
Interest payable | $ 4,971 | $ 2,762 |
TRANSFERS ACCOUNTED FOR AS SE_3
TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Remaining Contractual Maturity of the Agreements | $ 194,482 | $ 181,577 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Remaining Contractual Maturity of the Agreements | 194,482 | 181,577 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Remaining Contractual Maturity of the Agreements | 0 | 0 |
30-90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Remaining Contractual Maturity of the Agreements | 0 | 0 |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Remaining Contractual Maturity of the Agreements | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | $ 1,977,641 | $ 1,871,800 | $ 1,912,571 | $ 1,875,645 |
Other comprehensive income (loss) before reclassifications | (368,696) | (31,362) | ||
Amounts reclassified from accumulated other comprehensive income | (506) | (3,585) | ||
Period change | (115,533) | (20,191) | (369,202) | (34,947) |
Ending balance | 1,906,666 | 1,868,090 | 1,906,666 | 1,868,090 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (198,556) | 60,080 | 55,113 | 74,836 |
Period change | (115,533) | (20,191) | (369,202) | (34,947) |
Ending balance | (314,089) | 39,889 | (314,089) | 39,889 |
Unrealized Gains (Losses) on Securities Available for Sale | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | 59,774 | 87,988 | ||
Other comprehensive income (loss) before reclassifications | (369,096) | (31,379) | ||
Amounts reclassified from accumulated other comprehensive income | (898) | (4,200) | ||
Period change | (369,994) | (35,579) | ||
Ending balance | (310,220) | 52,409 | (310,220) | 52,409 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (660) | (1,594) | ||
Other comprehensive income (loss) before reclassifications | 400 | 17 | ||
Amounts reclassified from accumulated other comprehensive income | 392 | 615 | ||
Period change | 792 | 632 | ||
Ending balance | 132 | (962) | 132 | (962) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (4,001) | (11,558) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Period change | 0 | 0 | ||
Ending balance | $ (4,001) | $ (11,558) | $ (4,001) | $ (11,558) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income - net realized gains on sales of available for sale securities | $ 481 | $ 1,756 | $ 1,137 | $ 5,316 |
Interest expense - subordinated debentures and term loans | 2,105 | 1,660 | 5,780 | 4,976 |
Income tax expense | (9,793) | (9,062) | (20,938) | (28,308) |
Total reclassifications for the period, net of tax | 63,752 | 52,770 | 151,329 | 157,798 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 318 | 1,177 | 506 | 3,585 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on available for sale securities | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income - net realized gains on sales of available for sale securities | 481 | 1,756 | 1,137 | 5,316 |
Income tax expense | (101) | (369) | (239) | (1,116) |
Total reclassifications for the period, net of tax | 380 | 1,387 | 898 | 4,200 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 16 | 56 | 104 | 164 |
Total reclassifications for the period, net of tax | (62) | (210) | (392) | (615) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense - subordinated debentures and term loans | $ (78) | $ (266) | $ (496) | $ (779) |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 1,186,000 | $ 1,217,000 | $ 3,430,000 | $ 3,615,000 | |
Forfeiture rate | 0.50% | ||||
Aggregate intrinsic value of stock options exercised | $ 470,000 | 559,000 | |||
Cash receipts of stock options exercised | $ 336,000 | $ 198,000 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option term | 10 years | ||||
Stock options vesting percentage | 100% | ||||
Unrecognized compensation expense related to stock options | 0 | $ 0 | |||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 1 year | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 2 years | ||||
RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 3 years | ||||
Unrecognized compensation expense related to RSAs | 9,900,000 | $ 9,900,000 | |||
Unrecognized compensation expense expected recognition period | 2 years | ||||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of average closing price to be paid by employees | 85% | ||||
Maximum common stock purchases through advance payroll deductions in a calendar year | $ 25,000 | ||||
Grant date fair value | $ 15,000 | ||||
Unrecognized compensation expense related to stock options | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Components of Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | $ 1,186 | $ 1,217 | $ 3,430 | $ 3,615 |
Income tax expense (benefit) | (332) | (136) | (866) | (711) |
Total share-based compensation expense, net of income taxes | 854 | 1,081 | 2,564 | 2,904 |
Stock and ESPP Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | 15 | 16 | 64 | 131 |
Income tax expense (benefit) | 0 | 0 | (74) | (92) |
Total share-based compensation expense, net of income taxes | 15 | 16 | (10) | 39 |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | 1,171 | 1,201 | 3,366 | 3,484 |
Income tax expense (benefit) | (332) | (136) | (792) | (619) |
Total share-based compensation expense, net of income taxes | $ 839 | $ 1,065 | $ 2,574 | $ 2,865 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 28,500 |
Transferred options from level one (in shares) | shares | 148,600 |
Exercised (in shares) | shares | (20,095) |
Ending balance (in shares) | shares | 157,005 |
Vested and expected to vest, number of shares (in shares) | shares | 157,005 |
Exercisable, number of shares (in shares) | shares | 157,005 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 17.14 |
Transferred options from level one (in dollar per share) | $ / shares | 18.84 |
Exercised (in dollars per share) | $ / shares | 16.74 |
Ending balance (in dollars per share) | $ / shares | 18.80 |
Vested and expected to vest, weighted-average exercise price (in dollars per share) | $ / shares | 18.80 |
Exercisable, weighted-average exercise price (in dollars per share) | $ / shares | $ 18.80 |
Weighted Average Remaining Contractual Term (in Years) | |
Outstanding | 2 years 8 months 8 days |
Vested and expected to vest | 2 years 8 months 8 days |
Exercisable | 2 years 8 months 8 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 3,121,261 |
Vested and expected to vest | $ | 3,121,261 |
Exercisable | $ | $ 3,121,261 |
SHARE-BASED COMPENSATION - Unve
SHARE-BASED COMPENSATION - Unvested RSAs Outstanding (Details) - RSAs | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of Shares | |
Unvested RSAs, Beginning balance (in shares) | shares | 411,259 |
Granted (in shares) | shares | 129,040 |
Vested (in shares) | shares | (112,443) |
Forfeited (in shares) | shares | (11,775) |
Unvested RSAs, Ending balance (in shares) | shares | 416,081 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning balance (in dollars per share) | $ / shares | $ 35.86 |
Granted (in dollars per share) | $ / shares | 40.60 |
Vested (in dollars per share) | $ / shares | 37.18 |
Forfeited (in dollars per share) | $ / shares | 36.54 |
Unvested RSAs, Ending balance (in dollars per share) | $ / shares | $ 36.95 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||
Federal statutory income tax at 21% | $ 15,445 | $ 12,984 | $ 36,176 | $ 39,082 |
Tax-exempt interest income | (4,974) | (4,196) | (14,371) | (11,795) |
Share-based compensation | (79) | 119 | (146) | 47 |
Tax-exempt earnings and gains on life insurance | (1,397) | (503) | (2,026) | (1,037) |
Tax credits | (122) | (127) | (292) | (277) |
State Income Tax | 658 | 678 | 1,177 | 2,252 |
Other | 262 | 107 | 420 | 36 |
Actual Tax Expense | $ 9,793 | $ 9,062 | $ 20,938 | $ 28,308 |
Effective Tax Rate | 13.30% | 14.70% | 12.20% | 15.20% |
NET INCOME PER COMMON SHARE - R
NET INCOME PER COMMON SHARE - Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income Available to Common Stockholders | ||||
Net income available to common stockholders | $ 63,283 | $ 52,770 | $ 150,391 | $ 157,798 |
Diluted net income per common share | $ 63,283 | $ 52,770 | $ 150,391 | $ 157,798 |
Weighted-Average Common Shares | ||||
Net income available to common stockholders (in shares) | 59,096,688 | 53,766,630 | 57,200,843 | 53,883,945 |
Effect of potentially dilutive stock options and restricted stock awards (in shares) | 242,041 | 193,135 | 266,716 | 209,118 |
Diluted net income per common share (in shares) | 59,338,729 | 53,959,765 | 57,467,559 | 54,093,063 |
Per Share Amount | ||||
Net income available to common stockholders (in dollars per share) | $ 1.08 | $ 0.98 | $ 2.63 | $ 2.93 |
Diluted net income per common share (in dollars per share) | $ 1.08 | $ 0.98 | $ 2.62 | $ 2.92 |
NET INCOME PER COMMON SHARE - N
NET INCOME PER COMMON SHARE - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Stock options not included in the earnings per share calculation (in shares) | 0 | 0 | 0 | 0 |