Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 0-16759 | ||
Entity Registrant Name | FIRST FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-1546989 | ||
Entity Address, Address Line One | One First Financial Plaza | ||
Entity Address, City or Town | Terre Haute | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47807 | ||
City Area Code | 812 | ||
Local Phone Number | 238-6000 | ||
Title of 12(b) Security | Common Stock, par value $0.125 per share | ||
Trading Symbol | THFF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 490,666,197 | ||
Entity Common Stock, Shares Outstanding | 12,065,888 | ||
Documents Incorporated by Reference | Portions of the Definitive Proxy Statement for the First Financial Corporation Annual Meeting of Shareholders to be held April 19, 2023 are incorporated by reference into Part III. | ||
Entity Central Index Key | 0000714562 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Crowe LLP | ||
Auditor Location | Indianapolis, Indiana | ||
Auditor Firm ID | 173 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 222,517 | $ 688,027 |
Federal funds sold | 9,374 | 308 |
Securities available-for-sale | 1,330,481 | 1,359,514 |
Loans | 3,060,263 | 2,812,601 |
(Less) plus: Net deferred loan (fees)/costs | 7,175 | 3,294 |
Allowance for credit losses | (39,779) | (48,305) |
Loans, net | 3,027,659 | 2,767,590 |
Restricted stock | 15,378 | 16,200 |
Accrued interest receivable | 21,288 | 16,946 |
Premises and equipment, net | 66,147 | 69,522 |
Bank-owned life insurance | 115,704 | 116,997 |
Goodwill | 86,985 | 86,135 |
Other intangible assets | 6,714 | 8,024 |
Other real estate owned | 337 | 108 |
Other assets | 86,697 | 45,728 |
TOTAL ASSETS | 4,989,281 | 5,175,099 |
Deposits: | ||
Non-interest-bearing | 857,920 | 914,933 |
Interest-bearing: | ||
Certificates of deposit exceeding the FDIC insurance limits | 50,608 | 74,015 |
Other interest-bearing deposits | 3,460,343 | 3,420,621 |
Total Deposits | 4,368,871 | 4,409,569 |
Short-term borrowings | 70,875 | 93,374 |
Other borrowings | 9,589 | 15,937 |
Other liabilities | 64,653 | 73,643 |
TOTAL LIABILITIES | 4,513,988 | 4,592,523 |
Shareholders' equity | ||
Common stock, $0.125 stated value per share; Authorized shares-40,000,000 Issued shares-16,114,992 in 2022 and 16,096,313 in 2021 Outstanding shares-12,051,964 in 2022 and 12,629,893 in 2021 | 2,012 | 2,009 |
Additional paid-in capital | 143,185 | 141,979 |
Retained earnings | 614,829 | 559,139 |
Accumulated other comprehensive income/(loss) | (139,974) | (2,426) |
Less: Treasury shares at cost-4,063,028 in 2022 and 3,466,420 in 2021 | (144,759) | (118,125) |
TOTAL SHAREHOLDERS' EQUITY | 475,293 | 582,576 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,989,281 | 5,175,099 |
Commercial | ||
ASSETS | ||
Loans | 1,798,260 | 1,674,066 |
Residential | ||
ASSETS | ||
Loans | 673,464 | 664,509 |
Consumer | ||
ASSETS | ||
Loans | $ 588,539 | $ 474,026 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, stated value per share | $ 0.125 | $ 0.125 |
Common stock, Authorized shares | 40,000,000 | 40,000,000 |
Common stock, Issued shares | 16,114,992 | 16,096,313 |
Common stock, Outstanding shares | 12,051,964 | 12,629,893 |
Treasury, shares | 4,063,028 | 3,466,420 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST INCOME: | |||
Loans, including related fees | $ 146,295 | $ 128,000 | $ 137,241 |
Securities: | |||
Taxable | 21,014 | 13,110 | 12,979 |
Tax-exempt | 9,974 | 8,762 | 7,952 |
Other | 6,018 | 2,326 | 2,313 |
TOTAL INTEREST INCOME | 183,301 | 152,198 | 160,485 |
INTEREST EXPENSE: | |||
Deposits | 16,743 | 8,158 | 12,801 |
Short-term borrowings | 1,243 | 387 | 568 |
Other borrowings | 273 | 252 | 770 |
TOTAL INTEREST EXPENSE | 18,259 | 8,797 | 14,139 |
NET INTEREST INCOME | 165,042 | 143,401 | 146,346 |
Provision for credit losses | (2,025) | 2,466 | 10,528 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 167,067 | 140,935 | 135,818 |
NON-INTEREST INCOME: | |||
Trust and financial services | 5,155 | 5,255 | 4,838 |
Service charges and fees on deposit accounts | 27,540 | 24,700 | 21,809 |
Other service charges and fees | 665 | 1,163 | 1,888 |
Securities gains, net | 3 | 114 | 233 |
Interchange income | 559 | 438 | 344 |
Loan servicing fees | 1,554 | 1,849 | 1,715 |
Gain on sales of mortgage loans | 1,994 | 5,003 | 6,626 |
Other | 9,246 | 3,562 | 5,023 |
TOTAL NON-INTEREST INCOME | 46,716 | 42,084 | 42,476 |
NON-INTEREST EXPENSE: | |||
Salaries and employee benefits | 65,555 | 64,474 | 61,931 |
Occupancy expense | 9,764 | 8,774 | 8,202 |
Equipment expense | 12,391 | 10,174 | 10,568 |
FDIC Expense | 2,327 | 1,294 | 316 |
Other | 35,986 | 32,690 | 31,741 |
TOTAL NON-INTEREST EXPENSE | 126,023 | 117,406 | 112,758 |
INCOME BEFORE INCOME TAXES | 87,760 | 65,613 | 65,536 |
Provision for income taxes | 16,651 | 12,626 | 11,692 |
NET INCOME | 71,109 | 52,987 | 53,844 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes | (144,570) | (18,488) | 19,269 |
Change in funded status of post retirement benefits, net of taxes | 7,022 | 6,298 | (2,004) |
COMPREHENSIVE INCOME (LOSS) | $ (66,439) | $ 40,797 | $ 71,109 |
PER SHARE DATA | |||
Basic Earnings per Share (in dollars per share) | $ 5.82 | $ 4.02 | $ 3.93 |
Diluted Earnings per Share (in dollars per share) | $ 5.82 | $ 4.02 | $ 3.93 |
Weighted average number of shares outstanding, basic (in shares) | 12,211 | 13,190 | 13,716 |
Weighted average number of shares outstanding, diluted (in shares) | 12,211 | 13,190 | 13,716 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2019 | $ 2,005 | $ 139,694 | $ 481,572 | $ (7,501) | $ (68,645) | $ 547,125 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||||
Net income | 0 | 0 | 53,844 | 0 | 0 | 53,844 |
Other comprehensive income (loss) | 0 | 0 | 0 | 17,265 | 0 | 17,265 |
Omnibus Equity Incentive Plan, net | 2 | 818 | 0 | 0 | 0 | 820 |
Treasury stock purchases | (9,220) | (9,220) | ||||
Contribution to ESOP | 0 | 308 | 0 | 0 | 1,163 | 1,471 |
Cash Dividends | 0 | 0 | (14,313) | 0 | 0 | (14,313) |
Balance at Dec. 31, 2020 | 2,007 | 140,820 | 521,103 | 9,764 | (76,702) | 596,992 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||||
Net income | 0 | 0 | 52,987 | 0 | 0 | 52,987 |
Other comprehensive income (loss) | 0 | 0 | 0 | (12,190) | 0 | (12,190) |
Omnibus Equity Incentive Plan, net | 2 | 805 | 0 | 0 | 0 | 807 |
Treasury stock purchases | 0 | 0 | 0 | 0 | (42,471) | (42,471) |
Contribution to ESOP | 0 | 354 | 0 | 0 | 1,048 | 1,402 |
Cash Dividends | 0 | 0 | (14,951) | 0 | 0 | (14,951) |
Balance at Dec. 31, 2021 | 2,009 | 141,979 | 559,139 | (2,426) | (118,125) | 582,576 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||||
Net income | 0 | 0 | 71,109 | 0 | 0 | 71,109 |
Other comprehensive income (loss) | 0 | 0 | 0 | (137,548) | 0 | (137,548) |
Omnibus Equity Incentive Plan, net | 3 | 822 | 0 | 0 | 0 | 825 |
Treasury stock purchases | 0 | 0 | 0 | 0 | (27,701) | (27,701) |
Contribution to ESOP | 0 | 384 | 0 | 0 | 1,067 | 1,451 |
Cash Dividends | 0 | 0 | (15,419) | 0 | 0 | (15,419) |
Balance at Dec. 31, 2022 | $ 2,012 | $ 143,185 | $ 614,829 | $ (139,974) | $ (144,759) | $ 475,293 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||
Treasury stock purchased (in shares) | 626,574 | 981,132 | 242,031 |
Contribution to ESOP shares (shares) | 29,966 | 31,355 | 39,029 |
Cash Dividends (in dollars per share) | $ 1.28 | $ 1.16 | $ 1.05 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 71,109 | $ 52,987 | $ 53,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization (accretion) of premiums and discounts on investments | 6,551 | 8,433 | 7,184 |
Provision for credit losses | (2,025) | 2,466 | 10,528 |
Securities gains | (3) | (114) | (233) |
Depreciation and amortization | 6,111 | 6,154 | 6,092 |
Provision for deferred income taxes | (3,150) | (1,568) | (3,768) |
Net change in accrued interest receivable | (4,342) | 982 | 1,566 |
Contribution of shares to ESOP | 1,451 | 1,402 | 1,471 |
Restricted stock compensation | 825 | 807 | 820 |
Gain on sale of mortgage loans | (1,994) | (5,003) | (6,626) |
(Gain) Loss on sale of other real estate | 55 | 18 | (761) |
Origination of loans held for sale | (65,412) | (115,144) | (165,524) |
Proceeds from loans held for sale | 69,946 | 123,079 | 170,834 |
Other, net | (335) | (19,432) | 1,998 |
NET CASH FROM OPERATING ACTIVITIES | 78,787 | 55,067 | 77,425 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sales of securities available-for-sale | 9,369 | 28,161 | |
Calls, maturities and principal reductions on securities available-for-sale | 179,597 | 262,209 | 260,631 |
Purchases of securities available-for-sale | (345,201) | (589,802) | (365,998) |
Proceeds from loans sold previously classified as portfolio loans | 12,802 | ||
Loans made to customers, net of repayment | (271,503) | 31,628 | 53,144 |
Net change in federal funds sold | (9,066) | 10,463 | 7,199 |
Purchase of bank owned life insurance | (10,000) | ||
Redemption of restricted stock | 1,871 | 600 | |
Purchase of restricted stock | (1,049) | (25) | (18) |
Cash received (disbursed) from acquisitions | (23,092) | ||
Proceeds from sales of other real estate owned | 286 | 929 | 3,941 |
Additions to premises and equipment | (1,426) | (3,835) | (3,908) |
NET CASH FROM INVESTING ACTIVITIES | (433,689) | (312,156) | (16,248) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | (39,547) | 367,985 | 481,728 |
Net change in short-term borrowings | (22,499) | (22,687) | 35,942 |
Dividends paid | (14,459) | (14,181) | (14,273) |
Purchase of treasury stock | (27,701) | (42,471) | (9,220) |
Proceeds from other borrowings | 16,700 | ||
Repayments on other borrowings | (6,402) | (1,000) | (42,010) |
NET CASH FROM FINANCING ACTIVITIES | (110,608) | 287,646 | 468,867 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (465,510) | 30,557 | 530,044 |
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD | 688,027 | 657,470 | 127,426 |
CASH AND DUE FROM BANKS, END OF PERIOD | 222,517 | 688,027 | 657,470 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NONCASH INFORMATION: | |||
Interest | 18,463 | 9,144 | 14,845 |
Income Taxes | $ 13,525 | $ 15,025 | $ 7,549 |
BUSINESS AND SIGNIFICANT ACCOUN
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 1. BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: BUSINESS Organization: First Financial Bank also has two investment subsidiaries, Portfolio Management Specialists A (Specialists A) and Portfolio Management Specialists B (Specialists B), which were established to hold and manage certain assets as part of a strategy to better manage various income streams and provide opportunities for capital creation as needed. Specialists A and Specialists B subsequently entered into a limited partnership agreement, Global Portfolio Limited Partners. Portfolio Management Specialists B also owns First Financial Real Estate, LLC. At December 31, 2022, $1.0 billion of securities and loans were owned by these subsidiaries. Specialists A, Specialists B, Global Portfolio Limited Partners and First Financial Real Estate LLC are included in the consolidated financial statements. First Financial Bank also has wholly-owned subsidiaries JBMM, LLC and Fort Webb LP, LLC. The Corporation, which is headquartered in Terre Haute, Indiana, offers a wide variety of financial services including commercial, mortgage and consumer lending, lease financing, trust account services and depositor services through its four subsidiaries. The Corporation’s primary source of revenue is derived from loans to customers and investment activities. The Corporation operates 78 branches in west-central Indiana, east-central Illinois, western Kentucky, and central Tennessee. First Financial Bank is the largest bank in Vigo County. It operates nine full-service banking branches within the county; one in Daviess County, Indiana.; three in Clay County, Indiana; one in Greene County, Indiana; one in Knox County, Indiana; two in Parke County, Indiana; one in Putnam County, Indiana; three in Sullivan County, Indiana; one in Vanderburgh County, Indiana,; three in Vermillion County, Indiana; four in Champaign County, Illinois; one in Clark County, Illinois; two in Coles County, Illinois; two in Crawford County, Illinois; one in Franklin County, Illinois; one in Jasper County, Illinois; two in Jefferson County, Illinois; one in Lawrence County, Illinois; two in Livingston County, Illinois; two in Marion County, Illinois; two in McLean County, Illinois; one in Richland County, Illinois; six in Vermilion County, Illinois; one in Wayne County, Illinois; one in Breckinridge County, Kentucky; two in Calloway County, Kentucky; three in Christian County, Kentucky; two in Fulton County, Kentucky; two in Hancock County, Kentucky; two in Hopkins County, Kentucky; two in Marshall County, Kentucky; one in Todd County, Kentucky; one in Trigg County, Kentucky; two in Warren County, Kentucky; three in Cheatham County, Tennessee; one in Houston County, Tennessee; and three in Montgomery County, Tennessee. There are five loan production offices, one in Hamilton County, Indiana; one in Monroe County, Indiana; one in Vanderburgh County, Indiana; one in Rutherford County, Tennessee; and one in Williamson County, Tennessee. The bank also has a main office in downtown Terre Haute and an operations center/office building in southern Terre Haute. Regulatory Agencies: SIGNIFICANT ACCOUNTING POLICIES Use of Estimates: Cash Flows Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts are amortized on the level yield method without anticipating prepayments. Mortgage-backed securities are amortized over the expected life. Realized gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Loans: All interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. In all cases, loans are placed on non-accrual or charged-off if collection of principal or interest is considered doubtful. The above policies are consistent for all segments of loans. Purchased Credit Deteriorated (PCD) Loans: Concentration of Credit Risk: The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are predominately loans to expand a business or finance asset purchases. The underlying risk in the Commercial loan segment is primarily a function of the reliability and sustainability of the cash flows of the borrower and secondarily on the underlying collateral securing the transaction. From time to time, the cash flows of borrowers may be less than historical or as planned. In addition, the underlying collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets financed or other business assets and most commercial loans are further supported by a personal guarantee. However, in some instances, short term loans are made on an unsecured basis. Agriculture production loans are typically secured by growing crops and generally secured by other assets such as farm equipment. Production loans are subject to weather and market pricing risks. The Corporation has established underwriting standards and guidelines for all commercial loan types. The Corporation strives to maintain a geographically diverse commercial real estate portfolio. Commercial real estate loans are primarily underwritten based upon the cash flows of the underlying real estate or from the cash flows of the business conducted at the real estate. Generally, these types of loans will be fully guaranteed by the principal owners of the real estate and loan amounts must be supported by adequate collateral value. Commercial real estate loans may be adversely affected by factors in the local market, the regional economy, or industry specific factors. In addition, Commercial Construction loans are a specific type of commercial real estate loan which inherently carry more risk than loans for completed projects. Since these types of loans are underwritten utilizing estimated costs, feasibility studies, and estimated absorption rates, the underlying value of the project may change based upon the inaccuracy of these projections. Commercial construction loans are closely monitored, subject to industry standards, and disbursements are controlled during the construction process. Residential Retail real estate mortgages that are secured by 1-4 family residences are generally owner occupied and include residential real estate and residential real estate construction loans. The Corporation typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if the ratio is exceeded. The Corporation sells substantially all of its long-term fixed mortgages to secondary market purchasers. Mortgages sold to secondary market purchasers are underwritten to specific guidelines. The Corporation originates some mortgages that are maintained in the bank’s loan portfolio. Portfolio loans are generally adjustable rate mortgages and are underwritten to conform to Qualified Mortgage standards. Several factors are considered in underwriting all Mortgages including the value of the underlying real estate, debt-to-income ratio and credit history of the borrower. Repayment is primarily dependent upon the personal income of the borrower and can be impacted by changes in borrower’s circumstances such as changes in employment status and changes in real estate property values. Risk is mitigated by the sale of substantially all long-term fixed rate mortgages, the underwriting of portfolio loans to Qualified Mortgage standards and the fact that mortgages are generally smaller individual amounts spread over a large number of borrowers. Consumer The consumer portfolio primarily consists of home equity loans and lines (typically secured by a subordinate lien on a 1-4 family residence), secured loans (typically secured by automobiles, boats, recreational vehicles, or motorcycles), cash/CD secured, and unsecured loans. Pricing, loan terms, and loan to value guidelines vary by product line. The underlying value of collateral dependent loans may vary based on a number of economic conditions, including fluctuations in home prices and unemployment levels. Underwriting of consumer loans is based on the individual credit profile and analysis of the debt repayment capacity for each borrower. Payments for consumer loans is typically set-up on equal monthly installments, however, future repayment may be impacted by a change in economic conditions or a change in the personal income levels of individual customers. Overall risks within the consumer portfolio are mitigated by the mix of various loan products, lending in various markets and the overall make-up of the portfolio (small loan sizes and a large number of individual borrowers). Allowance for Credit Losses: The allowance for credit loss estimation process involves procedures to appropriately consider the unique characteristics of the loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. We utilize a cohort methodology to determine the allowance for credit losses. This method identifies and captures the balance of a pool of loans with similar risk characteristics at a particular point in time to form a cohort. Then it tracks the respective losses generated by that cohort of loans over their remaining life. When past performance may not be representative of future losses, loss rates are adjusted for qualitative and economic forecast factors. The allowance level is influenced by loan volumes, loan quality rating migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses consists of specific and pooled components. The specific component relates to loans that are individually evaluated. A loan is individually evaluated when the loan no longer shares similar risk characteristics with other loans in its respective loan pool. If a loan is individually evaluated, a portion of the allowance is allocated so that the loan is reported at the fair value of collateral, adjusted for selling costs, if repayment is expected solely from the collateral. The pooled component covers pools of loans that share similar risk characteristics, and is based on historical loss experienced since 2008. This historical loss experience is supplemented with other current factors based on the risks present for each portfolio segment. These current factors include items such as changes in lending policies or procedures, asset specific risks, and economic uncertainty in forward-looking forecasts. Economic indicators utilized in forecasting include unemployment rate, gross domestic product, housing starts, and interest rates. We maintain an allowance for credit losses on unfunded lending commitments to provide for the risk of loss inherent in these arrangements. Unfunded commitments include funds available for disbursement on commercial and agriculture operating lines, commercial real estate and residential construction loans, and home equity lines of credit. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded commitments was $2.1 million at December 31, 2022, and $3.0 million at December 31, 2021. Foreclosed Assets: Premises and Equipment: Restricted Stock: Servicing Rights: Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with Other Service Charges and Fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is included in Other Service Charges and Fees on the income statement, is for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Servicing fees totaled $1.4 million, $1.3 million and $1.3 million for the years ended December 31, 2022, 2021 and 2020. Late fees and ancillary fees related to loan servicing are not material. Stock based compensation: Transfers of Financial Assets: Bank-Owned Life Insurance: Goodwill and Other Intangible Assets: Other intangible assets consist of core deposit assets arising from the whole bank and branch acquisitions. They are initially measured at fair value and then are amortized on an accelerated basis over their estimated useful lives, which are 10 and 12 years, respectively. Long-Term Assets: Benefit Plans: Employee Stock Ownership Plan: Deferred Compensation Plan: Incentive Plans: 15-year was $2.0 million, $2.3 million and $2.2 million, respectively, and resulted in a liability of $1.6 million at December 31, 2022 and $1.8 million at December 31, 2021. The Omnibus Equity Incentive Plan is a long term incentive plan that was designed to align the interests of participants with the interest of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. Income Taxes: A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. Loan Commitments and Related Financial Instruments: Earnings Per Share: Comprehensive Income (Loss): Loss Contingencies: Dividend Restriction: Fair Value of Financial Instruments: Operating Segment: Accounting Pronouncements Adopted: In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU 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. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which 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. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024 The Corporation has discontinued originating LIBOR based loans and has a plan in place to transition all LIBOR indexed loans to term SOFR. Recently Issued Not Yet Effective Accounting Pronouncements: In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (ASU 2022-02). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (TDRs) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (CECL) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Corporation for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Corporation is evaluating the effect that ASU 2022-02 will have on its consolidated financial statements and related disclosures. In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted. The Corporation is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements and related disclosures. |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | 2. FAIR VALUES OF FINANCIAL INSTRUMENTS: Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of securities available-for-sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For those securities that cannot be priced using quoted market prices or observable inputs, a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity, and state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. Management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilizes. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurement. The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs). December 31, 2022 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Dollar amounts in thousands) Level 1 Level 2 Level 3 Total U.S. Government agencies $ — $ 98,473 $ — $ 98,473 Mortgage Backed Securities-residential — 620,248 — 620,248 Mortgage Backed Securities-commercial — 9,677 — 9,677 Collateralized mortgage obligations — 203,485 — 203,485 State and municipal — 358,608 1,545 360,153 Municipal taxable — 32,515 — 32,515 U.S. Treasury — 2,944 — 2,944 Collateralized debt obligations — — 2,986 2,986 TOTAL $ — $ 1,325,950 $ 4,531 $ 1,330,481 Derivative Assets 2,838 Derivative Liabilities (2,838) December 31, 2021 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Dollar amounts in thousands) Level 1 Level 2 Level 3 Total U.S. Government agencies $ — $ 120,123 $ — $ 120,123 Mortgage Backed Securities-residential — 626,428 — 626,428 Mortgage Backed Securities-commercial — 15,671 — 15,671 Collateralized mortgage obligations — 175,005 — 175,005 State and municipal — 378,203 1,895 380,098 Municipal taxable — 38,626 — 38,626 U.S. Treasury — 204 — 204 Collateralized debt obligations — — 3,359 3,359 TOTAL $ — $ 1,354,260 $ 5,254 $ 1,359,514 Derivative Assets 1,030 Derivative Liabilities (1,030) There were no transfers between Level 1 and Level 2 during 2022 and 2021. The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2022 and 2021. Year Ended December 31, 2022 State and municipal Collateralized (Dollar amounts in thousands) obligations debt obligations Other securities Total Beginning balance, January 1 $ 1,895 $ 3,359 $ — $ 5,254 Total realized/unrealized gains or losses Included in earnings — — — — Included in other comprehensive income — (373) — (373) Transfers — — — — Settlements (350) — — (350) Ending balance, December 31 $ 1,545 $ 2,986 $ — $ 4,531 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2021 State and municipal Collateralized (Dollar amounts in thousands) obligations debt obligations Other securities Total Beginning balance, January 1 $ 1,895 $ 3,136 $ — $ 5,031 Total realized/unrealized gains or losses Included in earnings — — — — Included in other comprehensive income — 223 — 223 Purchases — — — — Settlements — — — — Ending balance, December 31 $ 1,895 $ 3,359 $ — $ 5,254 There were no unrealized gains and losses recorded in earnings for the years ended December 31, 2022, 2021 or 2020. Other real estate owned is valued at Level 3. Other real estate owned at December 31, 2022 with a value of $337 thousand was reduced by $25 thousand for fair value adjustment. At December 31, 2022 other real estate owned was comprised of $39 thousand from commercial loans and $298 thousand from residential loans. Other real estate owned at December 31, 2021 with a value of $108 thousand was reduced by zero for fair value adjustment. At December 31, 2021 other real estate owned was comprised of $68 thousand from commercial loans and $40 thousand from residential loans. Fair value for collateral dependent loans is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and collateral dependent loans carried at fair value are primarily comprised of smaller balance properties. The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022 and 2021. (Dollar amounts in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 1,545 Discounted cash flow Discount rate 3.73%-4.44 % Collateralized debt obligations $ 2,986 Discounted cash flow Discount rate 5.34 % Collateral dependent loans $ 4,477 Discounted cash flow Discount rate for age of appraisal and market conditions 0.00%-50.00 % (Dollar amounts in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 1,895 Discounted cash flow Discount rate 3.41%-4.44 % Collateralized debt obligations $ 3,359 Discounted cash flow Discount rate 1.83 % Collateral dependent loans 12,839 Discounted cash flow Discount rate for age of appraisal and market conditions 0.00%-50.00 % The carrying amounts and estimated fair values of financial instruments are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, accrued interest receivable and payable, demand deposits, short-term and certain other borrowings, and variable-rate loans or deposits that reprice frequently and fully. Security fair values are determined as previously described. It is not practicable to determine the fair value of restricted stock due to restrictions placed on their transferability. For fixed-rate loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Loan fair value estimates represent an exit price for 2022 and 2021. Fair values for collateral dependent loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material. The carrying amount and estimated fair value of assets and liabilities are presented in the tables below and were determined based on the above assumptions: December 31, 2022 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 222,517 $ 29,400 $ 193,117 $ — $ 222,517 Federal funds sold 9,374 — 9,374 — 9,374 Securities available-for-sale 1,330,481 — 1,325,950 4,531 1,330,481 Restricted stock 15,378 n/a n/a n/a n/a Loans, net 3,027,659 — — 2,930,680 2,930,680 Accrued interest receivable 21,288 — 5,529 15,759 21,288 Deposits (4,368,871) — (4,369,402) — (4,369,402) Short-term borrowings (70,875) — (70,875) — (70,875) Other borrowings (9,589) — (8,788) — (8,788) Accrued interest payable (483) — (483) — (483) December 31, 2021 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 688,027 $ 24,901 $ 663,126 $ — $ 688,027 Federal funds sold 308 — 308 — 308 Securities available-for-sale 1,359,514 — 1,354,260 5,254 1,359,514 Restricted stock 16,200 n/a n/a n/a n/a Loans, net 2,767,590 — — 2,682,257 2,682,257 Accrued interest receivable 16,946 — 4,709 12,237 16,946 Deposits (4,409,569) — (4,418,117) — (4,418,117) Short-term borrowings (93,374) — (93,374) — (93,374) Other borrowings (15,937) — (16,483) — (16,483) Accrued interest payable (687) — (687) — (687) |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2022 | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | 3. RESTRICTIONS ON CASH AND DUE FROM BANKS: Certain affiliate banks are required to maintain average reserve balances with the Federal Reserve Bank. The amount of those reserve balances was zero at December 31, 2022 and 2021. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
SECURITIES | |
SECURITIES | 4. SECURITIES: The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: December 31, 2022 Amortized Unrealized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government agencies $ 110,226 $ 24 $ (11,777) $ 98,473 Mortgage Backed Securities - residential 711,131 133 (91,016) 620,248 Mortgage Backed Securities - commercial 10,103 — (426) 9,677 Collateralized mortgage obligations 228,344 60 (24,919) 203,485 State and municipal obligations 396,522 745 (37,114) 360,153 Municipal taxable 39,321 41 (6,847) 32,515 U.S. Treasury 2,979 — (35) 2,944 Collateralized debt obligations — 2,986 — 2,986 TOTAL $ 1,498,626 $ 3,989 $ (172,134) $ 1,330,481 December 31, 2021 Amortized Unrealized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government agencies $ 118,176 $ 2,688 $ (741) $ 120,123 Mortgage Backed Securities-residential 628,920 4,387 (6,879) 626,428 Mortgage Backed Securities-commercial 15,480 191 — 15,671 Collateralized mortgage obligations 175,501 1,272 (1,768) 175,005 State and municipal obligations 362,843 17,833 (578) 380,098 Municipal taxable 38,445 396 (215) 38,626 U.S. Treasury 205 — (1) 204 Collateralized debt obligations — 3,359 — 3,359 TOTAL $ 1,339,570 $ 30,126 $ (10,182) $ 1,359,514 As of December 31, 2022, the Corporation does not have any securities from any issuer, other than the U.S. Government, with an aggregate book or fair value that exceeds ten percent of shareholders’ equity. Securities with a carrying value of approximately $946.3 million and $814.7 million at December 31, 2022 and 2021, respectively, were pledged as collateral for short-term borrowings and for other purposes. Below is a summary of the gross gains and losses realized by the Corporation on investment sales and calls during the years ended December 31, 2022, 2021 and 2020, respectively. (Dollar amounts in thousands) 2022 2021 2020 Proceeds $ 1,565 $ 12,886 $ 36,696 Gross gains 6 274 290 Gross losses (3) (160) (57) Gains of $6 thousand and losses of $3 thousand in 2022 and gains of $274 thousand and losses of $160 thousand in 2021 and gains of $290 thousand and losses of $57 thousand in 2020 resulted from redemption premiums on called and sold securities. Contractual maturities of debt securities at year-end 2022 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately. Available-for-Sale Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 8,031 $ 7,984 Due after one but within five years 45,010 43,566 Due after five but within ten years 88,684 83,055 Due after ten years 407,323 362,466 549,048 497,071 Mortgage-backed securities and collateralized mortgage obligations 949,578 833,410 TOTAL $ 1,498,626 $ 1,330,481 The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2022 and 2021. December 31, 2022 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 58,462 $ (4,034) $ 38,959 $ (7,743) $ 97,421 $ (11,777) Mortgage Backed Securities - Residential 234,488 (19,757) 379,520 (71,259) 614,008 (91,016) Mortgage Backed Securities - Commercial 9,677 (426) — — 9,677 (426) Collateralized mortgage obligations 135,135 (11,331) 63,792 (13,588) 198,927 (24,919) State and municipal obligations 233,439 (24,291) 41,510 (12,823) 274,949 (37,114) Municipal taxable 18,637 (3,706) 12,837 (3,141) 31,474 (6,847) U.S. Treasury 2,944 (35) — — 2,944 (35) Total temporarily impaired securities $ 692,782 $ (63,580) $ 536,618 $ (108,554) $ 1,229,400 $ (172,134) December 31, 2021 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 48,939 $ (739) $ 146 $ (2) $ 49,085 $ (741) Mortgage Backed Securities - Residential 436,726 (5,281) 60,807 (1,598) 497,533 (6,879) Collateralized mortgage obligations 73,530 (1,327) 12,505 (441) 86,035 (1,768) State and municipal obligations 54,040 (578) — — 54,040 (578) Municipal taxable 15,048 (195) 729 (20) 15,777 (215) U.S. Treasury 204 (1) — — 204 (1) Total temporarily impaired securities $ 628,487 $ (8,121) $ 74,187 $ (2,061) $ 702,674 $ (10,182) The Corporation held 895 investment securities with an amortized cost greater than fair value as of December 31, 2022. The unrealized losses on collateralized mortgage obligations, all mortgage-backed securities and state and municipal obligations represent negative adjustments to fair value relative to the rate of interest paid on the securities and not losses related to the creditworthiness of the issuer. Gross unrealized losses on investment securities were $172.1 million as of December 31, 2022 and $10.2 million as of December 31, 2021. Management does not intend to sell and it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery. Management believes the value will recover as the securities approach maturity or market rates change. Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for impairment related to credit losses by segregating the portfolio into two general segments. In evaluating for impairment, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. In prior years, a significant portion of the total unrealized losses relates to collateralized debt obligations that were separately evaluated under FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. The table below presents a rollforward of the credit losses recognized in earnings for the years presented: (Dollar amounts in thousands) 2022 2021 2020 Beginning balance $ 2,974 $ 2,974 $ 2,974 Reductions for securities called during the period — — — Ending balance $ 2,974 $ 2,974 $ 2,974 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
LOANS | 5. LOANS: Loans are summarized as follows: December 31, (Dollar amounts in thousands) 2022 2021 Commercial $ 1,798,260 $ 1,674,066 Residential 673,464 664,509 Consumer 588,539 474,026 Total gross loans 3,060,263 2,812,601 Deferred costs, net 7,175 3,294 Allowance for credit losses (39,779) (48,305) TOTAL $ 3,027,659 $ 2,767,590 The Corporation periodically sells residential mortgage loans it originates based on the overall loan demand of the Corporation and the outstanding balances in the residential mortgage portfolio. At December 31, 2022 and 2021, loans held for sale were $1.7 million and $4.2 million, respectively, and are included in the totals above. In the normal course of business, the Corporation’s subsidiary banks make loans to directors and executive officers and to their associates. In 2022, the aggregate dollar amount of these loans to directors and executive officers who held office amounted to $50.9 million at the beginning of the year. During 2022, advances of $46.2 million, repayments of $45.7 million, and reductions for the removal of The Morris Plan directors of $5.3 million were made with respect to related party loans for an aggregate dollar amount outstanding of $46.1 million at December 31, 2022. Loans serviced for others, which are not reported as assets, total $518.1 million and $542.8 million at year-end 2022 and 2021. Custodial escrow balances maintained in connection with serviced loans were $2.7 million and $3.0 million at year-end 2022 and 2021. Activity for capitalized mortgage servicing rights (included in other assets) was as follows: December 31, (Dollar amounts in thousands) 2022 2021 2020 Servicing rights: Beginning of year $ 1,959 $ 1,601 $ 1,435 Additions 489 1,094 956 Amortized to expense (681) (736) (790) End of year $ 1,767 $ 1,959 $ 1,601 Third party valuations are conducted periodically for mortgage servicing rights. Based on these valuations, fair values were approximately $3.3 million and $2.7 million at year end 2022 and 2021. There was no valuation allowance in 2022 or 2021. Fair value for 2022 was determined using a discount rate of 12.5%, prepayment speeds ranging from 113% to 238%, depending on the stratification of the specific right. Fair value at year end 2021 was determined using a discount rate of 12.5%, prepayment speeds ranging from 185% to 453%, depending on the stratification of the specific right. Mortgage servicing rights are amortized over 8 years, the expected life of the sold loans. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
ACQUISITIONS | |
ACQUISITIONS | 6. ACQUISITIONS: On November 5, 2021, the Corporation completed its acquisition of Hancock Bancorp, Inc. and its banking subsidiary, Hancock Bank and Trust Company. Therefore, the results of Hancock Bancorp have been included in the results of operations beginning on November 5, 2021. Pursuant to the terms of the merger agreement, each issued and outstanding share of Hancock Bancorp, Inc. common stock, issued and outstanding, was converted into the right to receive $18.38 per share in cash. The aggregate value of the transaction was $31.36 million. Acquisition-related costs of $1.2 million are included in the Corporation’s income statement for the year ended December 31, 2021. Goodwill of $8.4 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill is not deductible for income tax purposes as the transaction was accounted for as a tax-free exchange. The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Measurement As Initially Period (Dollar amounts in thousands) Reported Adjustments As Adjusted Consideration Cash consideration $ 31,358 $ — $ 31,358 Fair value of total consideration transferred $ 31,358 $ — $ 31,358 Assets acquired Cash $ 3,046 $ 5,220 $ 8,266 Investment securities available-for-sale 57,054 (5,220) 51,834 Federal funds sold 10,470 — 10,470 Bank owned life insurance 9,753 — 9,753 Federal Home Loan Bank stock 1,362 — 1,362 Loans 227,827 — 227,827 Premises and equipment 8,180 — 8,180 Core deposit intangibles 652 — 652 Other assets 4,567 (850) 3,717 Total assets acquired 322,911 (850) 322,061 Liabilities assumed Deposits 286,098 — 286,098 FHLB advances 11,042 — 11,042 Other liabilities 1,956 — 1,956 Total liabilities assumed 299,096 — 299,096 Net identifiable assets 23,815 (850) 22,965 Goodwill $ 7,543 $ 850 $ 8,393 The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, the Corporation believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to guidance relating to purchase credit impaired loans, which have shown evidence of credit deterioration since origination. The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2020. The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, interest expense on deposits acquired, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. Year ended December 31, (Dollar amounts in thousands, except per share data) 2021 2020 Net interest income $ 150,806 $ 156,051 Net income $ 53,714 $ 55,958 Basic and diluted earnings per share $ 4.07 $ 4.08 The fair value of purchased financial assets with credit deterioration was $12.9 million on the date of acquisition. The gross contractual amounts receivable relating to the purchased financial assets with credit deterioration was $18.3 million. The Corporation estimates, on the date of acquisition, that $4.4 million of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
ALLOWANCE FOR LOAN LOSSES | |
ALLOWANCE FOR LOAN LOSSES | 7. ALLOWANCE FOR CREDIT LOSSES: The following table presents the activity of the allowance for credit losses by portfolio segment for the years ended December 31, 2022, 2021 and 2020. Allowance for Credit Losses: December 31, 2022 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 18,883 $ 18,316 $ 10,721 $ 385 $ 48,305 Provision for credit losses (4,079) (3,850) 6,131 (227) (2,025) Loans charged -off (3,917) (657) (11,132) — (15,706) Recoveries 2,062 759 6,384 — 9,205 Ending Balance $ 12,949 $ 14,568 $ 12,104 $ 158 $ 39,779 Allowance for Credit Losses: December 31, 2021 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 13,925 $ 19,142 $ 11,009 $ — $ 44,076 PCD ACL on acquired loans 4,410 — — 0 4,410 Provision for credit losses 1,637 (630) 1,074 385 2,466 Loans charged -off (2,158) (812) (5,246) — (8,216) Recoveries 1,069 616 3,884 — 5,569 Ending Balance $ 18,883 $ 18,316 $ 10,721 $ 385 $ 48,305 Allowance for Credit Losses: December 31, 2020 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 8,945 $ 1,302 $ 8,304 $ 1,392 $ 19,943 Impact of adopting ASC 326 6,843 9,515 2,118 (1,392) 17,084 Provision for credit losses (1,622) 8,612 3,538 — 10,528 Loans charged off (1,097) (944) (6,355) — (8,396) Recoveries 856 657 3,404 — 4,917 Ending Balance $ 13,925 $ 19,142 $ 11,009 $ — $ 44,076 The following tables present the recorded investment in nonperforming loans by class of loans. December 31, 2022 Loans Past Nonaccrual Due Over With No 90 Days Still Allowance (Dollar amounts in thousands) Accruing Nonaccrual For Credit Loss Commercial Commercial & Industrial $ 114 $ 2,137 $ 254 Farmland — 461 — Non Farm, Non Residential — 2,064 2,052 Agriculture — 186 155 All Other Commercial — 26 — Residential First Liens 666 1,380 — Home Equity 180 133 — Junior Liens 197 256 — Multifamily — 1,468 — All Other Residential — 478 — Consumer Motor Vehicle — 2,549 — All Other Consumer — 416 — TOTAL $ 1,157 $ 11,554 $ 2,461 December 31, 2021 Loans Past Nonaccrual Due Over With No 90 Days Still Allowance (Dollar amounts in thousands) Accruing Nonaccrual For Credit Loss Commercial Commercial & Industrial $ 14 $ 1,950 $ 1,662 Farmland — 15 — Non Farm, Non Residential — 2,911 2,898 Agriculture — 111 — All Other Commercial — 4 — Residential First Liens 346 2,339 33 Home Equity — 84 — Junior Liens 89 294 — Multifamily — 225 — All Other Residential — 107 — Consumer Motor Vehicle 94 864 — All Other Consumer — 686 — TOTAL $ 543 $ 9,590 $ 4,593 During the years ending December 31, 2022, 2021, and 2020 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR’s. 2022 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 407 $ 3,686 $ 706 $ 4,799 Added 305 128 68 501 Disposed — — (679) (679) Charged Off — (50) — (50) Payments (84) (589) (95) (768) December 31, $ 628 $ 3,175 $ — $ 3,803 2021 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, — 3,589 617 4,206 Added 407 491 402 1,300 Charged Off — (29) (82) (111) Payments — (365) (231) (596) December 31, 407 3,686 706 4,799 2020 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 11 $ 3,485 $ 698 $ 4,194 Added — 692 304 996 Charged Off — (6) (158) (164) Payments (11) (582) (227) (820) December 31, $ — $ 3,589 $ 617 $ 4,206 Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2022, 2021 or 2020 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. During the years ended December 31, 2022, 2021 and 2020 the Corporation modified 8, 39, and 42 loans respectively as troubled debt restructurings. All of the loans modified were smaller balance residential and consumer loans. There were no loans that were charged off within 12 months of the modification for 2022, 2021 or 2020. The Corporation had no allocation of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at December 31, 2022, 2021, and 2020. The Corporation has not committed to lend additional amounts as of December 31, 2022 and 2021 to customers with outstanding loans that are classified as troubled debt restructurings. The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“section 4013”). To be eligible under section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the Financial Accounting Standards Board, confirmed that for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As of December 31, 2022 no loans remained under the program. As of December 31, 2021, 1,225 loans totaling $253 million were modified, related to COVID-19, that were not considered troubled debt restructurings. As of December 31, 2021, 961 loans totaling $210 million had resumed normal scheduled payments. 204 remaining loans were still under a debt relief plan, which include 9 commercial loans totaling $36 million that had been provided additional payment relief since the initial payment relief plan. 1 loan totaling $17 thousand was under the original payment relief plan. The following table presents the amortized cost basis of collateral dependent loans by class of loans: December 31, 2022 Collateral Type (Dollar amounts in thousands) Real Estate Other Commercial Commercial & Industrial $ 4,613 $ 1 Farmland 3,289 — Non Farm, Non Residential 5,123 — Agriculture — 155 All Other Commercial — — Residential First Liens — — Home Equity — — Junior Liens — — Multifamily — — All Other Residential 895 — Consumer Motor Vehicle — — All Other Consumer — — Total $ 13,920 $ 156 December 31, 2021 Collateral Type (Dollar amounts in thousands) Real Estate Other Commercial Commercial & Industrial $ 17,734 $ 720 Farmland 3,669 — Non Farm, Non Residential 6,135 — Agriculture — — All Other Commercial — — Residential First Liens 33 — Home Equity — — Junior Liens — — Multifamily 935 — All Other Residential — — Consumer Motor Vehicle — — All Other Consumer — — Total $ 28,506 $ 720 The following tables present the aging of the recorded investment in loans by past due category and class of loans. December 31, 2022 90 Days 30-59 Days 60-89 Days and Greater Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,698 $ 529 $ 726 $ 2,953 $ 674,569 $ 677,522 Farmland 112 — — 112 127,498 127,610 Non Farm, Non Residential 274 34 — 308 387,108 387,416 Agriculture — 1,231 — 1,231 136,451 137,682 All Other Commercial 333 — 14 347 478,095 478,442 Residential First Liens 4,528 1,203 1,054 6,785 341,131 347,916 Home Equity 305 144 276 725 63,615 64,340 Junior Liens 213 69 327 609 56,367 56,976 Multifamily 317 83 — 400 180,305 180,705 All Other Residential 1,115 350 — 1,465 24,058 25,523 Consumer Motor Vehicle 15,151 1,930 985 18,066 539,651 557,717 All Other Consumer 341 56 15 412 32,967 33,379 TOTAL $ 24,387 $ 5,629 $ 3,397 $ 33,413 $ 3,041,815 $ 3,075,228 December 31, 2021 90 Days 30-59 Days 60-89 Days and Greater Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,132 $ 388 $ 1,614 $ 3,134 $ 693,949 $ 697,083 Farmland 57 — — 57 141,189 141,246 Non Farm, Non Residential 62 — — 62 361,174 361,236 Agriculture 90 42 89 221 141,682 141,903 All Other Commercial 390 — — 390 340,076 340,466 Residential First Liens 4,686 680 949 6,315 336,064 342,379 Home Equity 131 24 58 213 62,085 62,298 Junior Liens 179 120 283 582 50,048 50,630 Multifamily 342 146 — 488 178,849 179,337 All Other Residential 284 291 — 575 30,843 31,418 Consumer Motor Vehicle 7,633 1,105 486 9,224 433,095 442,319 All Other Consumer 192 37 — 229 33,425 33,654 TOTAL $ 15,178 $ 2,833 $ 3,479 $ 21,490 $ 2,802,479 $ 2,823,969 Credit Quality Indicators: The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings: Special Mention: Substandard: Doubtful: Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer, may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. The following tables present the commercial loan portfolio by risk category. These balances do not include accrued interest: December 31, 2022 Term Loans at Amortized Cost Basis by Origination Year Revolving 2022 2021 2020 2019 2018 Prior Loans Total Commercial Commercial and Industrial Pass $ 163,479 $ 128,012 $ 56,830 $ 54,208 $ 26,514 $ 99,522 $ 92,110 $ 620,675 Special Mention 2,071 9,738 3,434 2,572 2,061 1,848 453 $ 22,177 Substandard 423 723 1,861 954 3,169 6,264 9,103 $ 22,497 Doubtful — — — — — — — $ — Not Rated 7,041 1,408 822 469 149 85 — $ 9,974 Subtotal $ 173,014 $ 139,881 $ 62,947 $ 58,203 $ 31,893 $ 107,719 $ 101,666 $ 675,323 Farmland Pass $ 16,261 $ 22,530 $ 9,244 $ 9,438 $ 10,352 $ 48,847 $ 340 $ 117,012 Special Mention — — 1,164 882 — 2,930 — $ 4,976 Substandard — — 456 608 337 1,969 — $ 3,370 Doubtful — — — — — — — $ — Not Rated — — — — — 17 — $ 17 Subtotal $ 16,261 $ 22,530 $ 10,864 $ 10,928 $ 10,689 $ 53,763 $ 340 $ 125,375 Non Farm, Non Residential Pass $ 102,629 $ 75,011 $ 33,214 $ 19,596 $ 31,438 $ 111,586 $ 2,975 $ 376,449 Special Mention 99 1,035 — 921 — 279 — $ 2,334 Substandard — — — 513 — 6,281 — $ 6,794 Doubtful — — — — — — — $ — Not Rated — — 696 — — 269 — $ 965 Subtotal $ 102,728 $ 76,046 $ 33,910 $ 21,030 $ 31,438 $ 118,415 $ 2,975 $ 386,542 Agriculture Pass $ 13,085 $ 9,028 $ 8,015 $ 8,422 $ 1,987 $ 26,729 $ 62,397 $ 129,663 Special Mention 89 — 10 3 — 709 2,519 $ 3,330 Substandard — — — 224 1,201 56 762 $ 2,243 Doubtful — — — — — — — $ — Not Rated 71 39 68 61 25 — — $ 264 Subtotal $ 13,245 $ 9,067 $ 8,093 $ 8,710 $ 3,213 $ 27,494 $ 65,678 $ 135,500 Other Commercial Pass $ 143,941 $ 91,615 $ 90,845 $ 19,259 $ 29,143 $ 82,535 $ 5,602 $ 462,940 Special Mention 23 — — 10 — 11,911 — $ 11,944 Substandard — 23 — — — 6 — $ 29 Doubtful — — — — — — — $ — Not Rated 16 82 — — 29 480 — $ 607 Subtotal $ 143,980 $ 91,720 $ 90,845 $ 19,269 $ 29,172 $ 94,932 $ 5,602 $ 475,520 Residential Multifamily >5 Residential Pass $ 50,424 $ 33,415 $ 46,740 $ 6,734 $ 4,969 $ 27,353 $ 96 $ 169,731 Special Mention — 533 372 — — 6,795 — $ 7,700 Substandard — — — — — 1,280 — $ 1,280 Doubtful — — — — — — — $ — Not Rated — 1,124 — — — 263 — $ 1,387 Subtotal $ 50,424 $ 35,072 $ 47,112 $ 6,734 $ 4,969 $ 35,691 $ 96 $ 180,098 Total Pass $ 489,819 $ 359,611 $ 244,888 $ 117,657 $ 104,403 $ 396,572 $ 163,520 $ 1,876,470 Special Mention 2,282 11,306 4,980 4,388 2,061 24,472 2,972 $ 52,461 Substandard 423 746 2,317 2,299 4,707 15,856 9,865 $ 36,213 Doubtful — — — — — — — $ — Not Rated 7,128 2,653 1,586 530 203 1,114 — $ 13,214 $ 499,652 $ 374,316 $ 253,771 $ 124,874 $ 111,374 $ 438,014 $ 176,357 $ 1,978,358 December 31, 2021 Term Loans at Amortized Cost Basis by Origination Year Revolving 2021 2020 2019 2018 2017 Prior Loans Total Commercial Commercial and Industrial Pass $ 163,588 $ 71,271 $ 80,668 $ 40,441 $ 37,739 $ 113,887 $ 111,594 $ 619,188 Special Mention 7,561 393 1,841 5,375 263 4,523 7,482 $ 27,438 Substandard 4,521 896 348 5,148 2,325 7,934 2,648 $ 23,820 Doubtful — — — — — — — $ — Not Rated 21,134 1,610 959 466 189 140 — $ 24,498 Subtotal $ 196,804 $ 74,170 $ 83,816 $ 51,430 $ 40,516 $ 126,484 $ 121,724 $ 694,944 Farmland Pass $ 25,673 $ 12,060 $ 13,111 $ 13,246 $ 11,049 $ 49,158 $ 1,418 $ 125,715 Special Mention — 1,191 914 — 342 3,247 — $ 5,694 Substandard 3,455 444 — 326 558 2,876 — $ 7,659 Doubtful — — — — — — — $ — Not Rated — — — — — — — $ — Subtotal $ 29,128 $ 13,695 $ 14,025 $ 13,572 $ 11,949 $ 55,281 $ 1,418 $ 139,068 Non Farm, Non Residential Pass $ 81,203 $ 37,971 $ 24,716 $ 32,775 $ 54,732 $ 97,241 $ 10,548 $ 339,186 Special Mention — — 1,103 182 1,948 1,996 — $ 5,229 Substandard — — 910 — 1,440 13,391 — $ 15,741 Doubtful — — — — — — — $ — Not Rated — — — — — 402 — $ 402 Subtotal $ 81,203 $ 37,971 $ 26,729 $ 32,957 $ 58,120 $ 113,030 $ 10,548 $ 360,558 Agriculture Pass $ 14,426 $ 10,386 $ 10,135 $ 2,585 $ 4,932 $ 15,755 $ 68,937 $ 127,156 Special Mention — — 1,000 — 537 271 5,257 $ 7,065 Substandard — 20 216 — 46 485 4,828 $ 5,595 Doubtful — — — — — — — $ — Not Rated 110 120 131 55 1 — — $ 417 Subtotal $ 14,536 $ 10,526 $ 11,482 $ 2,640 $ 5,516 $ 16,511 $ 79,022 $ 140,233 Other Commercial Pass $ 77,821 $ 69,117 $ 33,231 $ 36,495 $ 53,479 $ 58,819 $ 3,488 $ 332,450 Special Mention — — — — — 6,106 — $ 6,106 Substandard 72 — 25 475 — 9 — $ 581 Doubtful — — — — — — — $ — Not Rated 89 — — 37 — — — $ 126 Subtotal $ 77,982 $ 69,117 $ 33,256 $ 37,007 $ 53,479 $ 64,934 $ 3,488 $ 339,263 Residential Multifamily >5 Residential Pass $ 37,244 $ 63,312 $ 16,037 $ 7,471 $ 5,370 $ 35,284 $ 1,434 $ 166,152 Special Mention — — — — — 10,282 — $ 10,282 Substandard — — — — — 958 — $ 958 Doubtful — — — — — — — $ — Not Rated 1,149 — — — 44 384 — $ 1,577 Subtotal $ 38,393 $ 63,312 $ 16,037 $ 7,471 $ 5,414 $ 46,908 $ 1,434 $ 178,969 Total Pass $ 399,955 $ 264,117 $ 177,898 $ 133,013 $ 167,301 $ 370,144 $ 197,419 $ 1,709,847 Special Mention 7,561 1,584 4,858 5,557 3,090 26,425 12,739 $ 61,814 Substandard 8,048 1,360 1,499 5,949 4,369 25,653 7,476 $ 54,354 Doubtful — — — — — — — $ — Not Rated 22,482 1,730 1,090 558 234 926 — $ 27,020 $ 438,046 $ 268,791 $ 185,345 $ 145,077 $ 174,994 $ 423,148 $ 217,634 $ 1,853,035 The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming. These balances do not include accrued interest: December 31, 2022 Term Loans at Amortized Cost Basis by Origination Year Revolving 2022 2021 2020 2019 2018 Prior Loans Total Residential First Liens Performing $ 71,607 $ 70,197 $ 45,080 $ 16,968 $ 20,258 $ 117,488 $ 3,245 $ 344,843 Non-performing 106 — — 141 100 1,782 — $ 2,129 Subtotal $ 71,713 $ 70,197 $ 45,080 $ 17,109 $ 20,358 $ 119,270 $ 3,245 $ 346,972 Home Equity Performing $ 1,995 $ 943 $ 8 $ 115 $ 55 $ 820 $ 59,875 $ 63,811 Non-performing — — 78 — 14 40 176 $ 308 Subtotal $ 1,995 $ 943 $ 86 $ 115 $ 69 $ 860 $ 60,051 $ 64,119 Junior Liens Performing $ 19,074 $ 10,485 $ 7,507 $ 5,830 $ 5,366 $ 6,195 $ 1,928 $ 56,385 Non-performing — 4 77 90 139 141 — $ 451 Subtotal $ 19,074 $ 10,489 $ 7,584 $ 5,920 $ 5,505 $ 6,336 $ 1,928 $ 56,836 Other Residential Performing $ 11,542 $ 9,923 $ 501 $ 915 $ 498 $ 1,582 $ — $ 24,961 Non-performing — — — 425 35 18 — $ 478 Subtotal $ 11,542 $ 9,923 $ 501 $ 1,340 $ 533 $ 1,600 $ — $ 25,439 Consumer Motor Vehicle Performing $ 306,565 $ 118,362 $ 88,144 $ 29,004 $ 8,652 $ 2,230 $ 6 $ 552,963 Non-performing 813 739 437 237 66 47 — $ 2,339 Subtotal $ 307,378 $ 119,101 $ 88,581 $ 29,241 $ 8,718 $ 2,277 $ 6 $ 555,302 Other Consumer Performing $ 13,426 $ 7,914 $ 4,109 $ 1,302 $ 429 $ 819 $ 4,819 $ 32,818 Non-performing 18 247 89 39 12 12 2 $ 419 Subtotal $ 13,444 $ 8,161 $ 4,198 $ 1,341 $ 441 $ 831 $ 4,821 $ 33,237 Total Performing $ 424,209 $ 217,824 $ 145,349 $ 54,134 $ 35,258 $ 129,134 $ 69,873 $ 1,075,781 Non-performing 937 990 681 932 366 2,040 178 $ 6,124 Total other loans $ 425,146 $ 218,814 $ 146,030 $ 55,066 $ 35,624 $ 131,174 $ 70,051 $ 1,081,905 December 31, 2021 Term Loans at Amortized Cost Basis by Origination Year Revolving 2021 2020 2019 2018 2017 Prior Loans Total Residential First Liens Performing $ 86,224 $ 49,633 $ 22,262 $ 24,377 $ 26,437 $ 126,828 $ 3,061 $ 338,822 Non-performing — — 35 69 160 2,421 — $ 2,685 Subtotal $ 86,224 $ 49,633 $ 22,297 $ 24,446 $ 26,597 $ 129,249 $ 3,061 $ 341,507 Home Equity Performing $ 757 $ 9 $ 152 $ 719 $ 62 $ 1,332 $ 59,059 $ 62,090 Non-performing — 25 — — 3 57 — $ 85 Subtotal $ 757 $ 34 $ 152 $ 719 $ 65 $ 1,389 $ 59,059 $ 62,175 Junior Liens Performing $ 13,255 $ 10,189 $ 8,124 $ 7,888 $ 4,158 $ 5,554 $ 968 $ 50,136 Non-performing — 6 64 97 119 94 — $ 380 Subtotal $ 13,255 $ 10,195 $ 8,188 $ 7,985 $ 4,277 $ 5,648 $ 968 $ 50,516 Other Residential Performing $ 20,218 $ 6,665 $ 1,697 $ 662 $ 883 $ 1,092 $ — $ 31,217 Non-performing — — 55 43 — 27 — $ 125 Subtotal $ 20,218 $ 6,665 $ 1,752 $ 705 $ 883 $ 1,119 $ — $ 31,342 Consumer Motor Vehicle Performing $ 188,675 $ 155,156 $ 60,676 $ 23,367 $ 9,307 $ 2,384 $ — $ 439,565 Non-performing 199 373 191 109 43 23 — $ 938 Subtotal $ 188,874 $ 155,529 $ 60,867 $ 23,476 $ 9,350 $ 2,407 $ — $ 440,503 Other Consumer Performing $ 14,924 $ 8,225 $ 3,119 $ 948 $ 304 $ 1,121 $ 4,194 $ 32,835 Non-performing 342 181 107 35 18 3 2 $ 688 Subtotal $ 15,266 $ 8,406 $ 3,226 $ 983 $ 322 $ 1,124 $ 4,196 $ 33,523 Total Performing $ 324,053 $ 229,877 $ 96,030 $ 57,961 $ 41,151 $ 138,311 $ 67,282 $ 954,665 Non-performing 541 585 452 353 343 2,625 2 $ 4,901 Total other loans $ 324,594 $ 230,462 $ 96,482 $ 58,314 $ 41,494 $ 140,936 $ 67,284 $ 959,566 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | 8. PREMISES AND EQUIPMENT: Premises and equipment are summarized as follows: December 31, (Dollar amounts in thousands) 2022 2021 Land $ 17,888 $ 18,612 Building and leasehold improvements 70,310 73,739 Furniture and equipment 46,669 44,839 134,867 137,190 Less accumulated depreciation (68,720) (67,668) TOTAL $ 66,147 $ 69,522 Aggregate depreciation expense was $4.8 million, $4.6 million and $4.4 million for 2022, 2021 and 2020, respectively. On October 31, 2022, First Financial Corporation issued a press release announcing plans to optimize its banking center network as part of a plan to improve operating efficiencies and accommodate changing customer preferences. On January 31, 2023, the Corporation closed and consolidated seven of its seventy-two branches. These consolidations are projected to save the Corporation approximately $1.5 million per year in operating expenses, commencing in the first quarter of 2023. The Corporation recognized an impairment of $1.3 million on the value of the land and buildings on the owned buildings at these branches. One branch was leased, and no loss was recognized on the terminated lease. The Company leases certain branch properties and equipment under operating leases. Rent expense was $1.2 million, $1.4 million, and $1.1 million for 2022, 2021, and 2020. Rent commitments, before considering renewal options that generally are present, were as follows: 2023 $ 929 2024 563 2025 479 2026 329 2027 228 Thereafter 680 $ 3,208 See Note 19 for additional discussion on leases. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 9. GOODWILL AND INTANGIBLE ASSETS: The Corporation completed its annual impairment testing of goodwill during the fourth quarter of 2022 and 2021. Management does not believe any amount of goodwill is impaired. Goodwill was as follows at year-end: 2022 2021 2020 Beginning of year $ 86,135 $ 78,592 $ 78,592 Acquired goodwill 850 7,543 — Impairment — — — End of year $ 86,985 $ 86,135 $ 78,592 Goodwill related to the acquisition of Hancock Bancorp, Inc. was increased by $850 thousand in 2022 due to adjustments to deferred tax assets related to the filing of the final Hancock Bancorp, Inc. tax return. Intangible assets subject to amortization at December 31, 2022 and 2021 are as follows: 2022 2021 Gross Accumulated Gross Accumulated (Dollar amounts in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 21,857 $ 15,143 $ 21,857 $ 13,833 $ 21,857 $ 15,143 $ 21,857 $ 13,833 Aggregate amortization expense was $1.3 million, $1.6 million and $1.7 million for 2022, 2021 and 2020, respectively. Estimated amortization expense for the next five years is as follows: In thousands 2023 $ 1,128 2024 888 2025 786 2026 679 2027 590 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS | |
DEPOSITS | 10. DEPOSITS: Time deposits that meet or exceed the FDIC Insurance limit of $250,000 at year-end 2022 and 2021 were $50.6 million and $74.0 million. Scheduled maturities of time deposits for the next five years are as follows: (dollar amounts in thousands) 2023 $ 274,613 2024 68,801 2025 23,789 2026 16,832 2027 13,185 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | 11. SHORT-TERM BORROWINGS: A summary of the carrying value of the Corporation’s short-term borrowings at December 31, 2022 and 2021 is presented below: (Dollar amounts in thousands) 2022 2021 Federal Funds Purchased $ 3,000 $ 3,275 Repurchase Agreements 67,875 90,099 $ 70,875 $ 93,374 (Dollar amounts in thousands) 2022 2021 Average amount outstanding $ 84,004 $ 99,810 Maximum amount outstanding at a month end 96,728 117,337 Average interest rate during year 1.48 % 0.40 % Interest rate at year-end 0.27 % 0.08 % Federal funds purchased are generally due in one day and bear interest at market rates. The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. The Corporation maintains possession of and control over these securities. Collateral pledged to repurchase agreements by remaining maturity are as follows: December 31, 2022 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 30 - 90 than 90 (Dollar amounts in thousands) continuous days days days Total Mortgage Backed Securities - Residential and Collateralized $ 63,335 $ — $ 4,175 $ 365 $ 67,875 December 31, 2021 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 30 - 90 than 90 (Dollar amounts in thousands) continuous days days days Total Mortgage Backed Securities - Residential and Collateralized $ 83,576 $ — $ 5,816 $ 707 $ 90,099 |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER BORROWINGS | |
OTHER BORROWINGS | 12. OTHER BORROWINGS: Other borrowings at December 31, 2022 and 2021 are summarized as follows: (Dollar amounts in thousands) 2022 2021 FHLB advances $ 9,589 $ 15,937 TOTAL $ 9,589 $ 15,937 The aggregate minimum annual retirements of other borrowings are as follows: 2023 $ 1,008 2024 2,635 2025 5,946 2026 — 2027 — Thereafter — $ 9,589 At December 31, 2022 and 2021, other borrowings are summarized as follows: The Corporation’s subsidiary banks are members of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. There are $9.6 million of advances from the FHLB at December 31, 2022, and $15.9 million of advances at December 31, 2021, which accrue interest, payable monthly, at annual rates, primarily fixed, varying from 0.68% to 1.70% in 2022 and 0.68% to 3.32% during the year in 2021. FHLB advances are, generally, due in full at maturity. They are secured by eligible securities totaling $40.3 million at December 31, 2022, and $58.5 million at December 31, 2021, and a blanket pledge on real estate loan collateral. Based on this collateral and the Corporation’s holdings of FHLB stock, the Corporation is eligible to borrow up to $246.4 million at year end 2022. Certain advances may be prepaid, without penalty, prior to maturity. The FHLB can adjust the interest rate from fixed to variable on certain advances, but those advances may then be prepaid, without penalty. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 13. REVENUE FROM CONTRACTS WITH CUSTOMERS: All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Corporation’s sources of Non-Interest Income for the years ended December 31, 2022 and 2021. Items outside the scope of ASC 606 are noted as such. Years Ended December 31, (Dollar amounts in thousands) 2022 2021 Non-interest income Service charges on deposits and debit card fee income $ 27,540 $ 24,700 Asset management fees 5,155 5,255 Interchange income 559 438 Net gains on sales of loans (a) 1,994 5,003 Loan servicing fees (a) 1,554 1,849 Net gains/(losses) on sales of securities (a) 3 114 Other service charges and fees (a) 665 1,163 Other (b) 9,246 (c) 3,562 Total non-interest income $ 46,716 $ 42,084 (a) Not within the scope of ASC 606. (b) The Other category includes gains/(losses) on the sale of OREO for the years ended December 31, 2022 and December 31, 2021, totaling $60 thousand and $5 thousand, respectively, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606. (c) Legal settlement totaling $4 million received in first quarter 2022, and $2.5 million from BOLI mortality payment in third quarter 2022. Service charges on deposits Asset management fees Interchange income Gains/Losses on sales of OREO |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 14. INCOME TAXES: Income tax expense is summarized as follows: (Dollar amounts in thousands) 2022 2021 2020 Federal: Currently payable $ 11,016 $ 7,978 $ 7,886 Deferred 2,277 1,488 1,188 13,293 9,466 9,074 State: Currently payable 2,485 3,080 2,422 Deferred 873 80 196 3,358 3,160 2,618 TOTAL $ 16,651 $ 12,626 $ 11,692 The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized as follows: (Dollar amounts in thousands) 2022 2021 2020 Federal income taxes computed at the statutory rate $ 18,430 $ 13,779 $ 13,763 Add (deduct) tax effect of: Tax exempt income (3,439) (2,745) (2,643) ESOP dividend deduction (103) (101) (98) State tax, net of federal benefit 2,653 2,496 2,068 General business tax credits (674) (716) (1,648) Other, net (216) (87) 250 TOTAL $ 16,651 $ 12,626 $ 11,692 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2022 and 2021, are as follows: (Dollar amounts in thousands) 2022 2021 Deferred tax assets: Other than temporary impairment $ 752 $ 764 Net unrealized losses on retirement plans 5,614 6,033 Net unrealized loss on available for sale securities 39,242 — Loan loss provisions 10,054 12,476 Unfunded commitments 537 764 Deferred compensation 1,957 2,367 Compensated absences 709 739 Post-retirement benefits 1,051 1,284 Lease liability 1,572 1,597 Purchase accounting 114 1,333 Other 3,018 2,770 GROSS DEFERRED ASSETS 64,620 30,127 Deferred tax liabilities: Net unrealized gains on securities available-for-sale — (4,269) Depreciation (660) (1,611) Mortgage servicing rights (458) (515) Pensions (1,120) (1,647) Right-of-use asset (1,566) (1,591) Intangibles (6,093) (5,717) FHLB stock dividends (32) (32) Other (4,118) (4,113) GROSS DEFERRED LIABILITIES (14,047) (19,495) NET DEFERRED TAX ASSETS $ 50,573 $ 10,632 Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollar amounts in thousands) 2022 2021 2020 Balance at January 1 $ 808 $ 867 $ 825 Additions based on tax positions related to the current year 59 9 114 Additions based on tax positions related to prior years — — — Reductions due to the statute of limitations (9) (68) (72) Balance at December 31 $ 858 $ 808 $ 867 Of this total, $858 thousand represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next 12 months. The total amount of interest and penalties recorded in the income statement for the years ended December 31, 2022, 2021 and 2020 was an expense increase of $18 thousand, an increase of $21 thousand, and an increase of $11 thousand, respectively. The amount accrued for interest and penalties at December 31, 2022, 2021 and 2020 was $103 thousand, $85 thousand and $64 thousand, respectively. The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the states of Indiana, Illinois, Kentucky, Tennessee, and other states. The Corporation is no longer subject to examination by taxing authorities for years before 2019. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 15. FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: The Corporation is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include conditional commitments and commercial letters of credit. The financial instruments involve to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the financial statements. The Corporation’s maximum exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to make loans is limited generally by the contractual amount of those instruments. The Corporation follows the same credit policy to make such commitments as is followed for those loans recorded in the consolidated financial statements. Commitment and contingent liabilities are summarized as follows at December 31: (Dollar amounts in thousands) 2022 2021 Home Equity $ 91,218 $ 92,346 Commercial Operating Lines 616,399 610,965 Other Commitments 112,410 120,111 TOTAL $ 820,027 $ 823,422 Commercial letters of credit $ 7,834 $ 7,042 The majority of commercial operating lines and home equity lines are variable rate, while the majority of other commitments to fund loans are fixed rate. Fixed rate commitments had a range of interest rates from 5.45% to 9.00% in 2022. In 2021 this range of rates was from 3.25% to 6.00%. Since many commitments to make loans expire without being used, these amounts do not necessarily represent future cash commitments. Collateral obtained upon exercise of the commitment is determined using management’s credit evaluation of the borrower, and may include accounts receivable, inventory, property, land and other items. The approximate duration of these commitments is generally one year or less. Derivatives: First Financial Bank offers clients the ability on certain transactions to enter into interest rate swaps. Typically, these are pay fixed, receive floating swaps used in conjunction with commercial loans. These derivative contracts do not qualify for hedge accounting. The Bank hedges the exposure to these contracts by entering into offsetting contracts with substantially matching terms. The notional amount of these interest rate swaps was $39.9 million and $32.9 million at December 31, 2022 and 2021. The fair value of these contracts combined was zero, as gains offset losses. The gross losses associated with these interest rate swaps was $2.8 million and $1.0 million at December 31, 2022 and 2021. These balances are included in other assets and other liabilities. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 16. RETIREMENT PLANS: Employees of the Corporation are covered by a retirement program that consists of a defined benefit plan and an employee stock ownership plan (ESOP). Plan assets consist primarily of the Corporation’s stock and obligations of U.S. Government agencies. Benefits under the defined benefit plan are actuarially determined based on an employee’s service and compensation, as defined, and funded as necessary. This plan was frozen for the majority of employees as of December 31, 2012.Those employees will be eligible to participate in a 401K plan that the Corporation can contribute a discretionary match of the pay contributed by the employee. In addition the ESOP plan will continue in place for all employees. Assets in the ESOP are considered in calculating the funding to the defined benefit plan required to provide such benefits. Any shortfall of benefits under the ESOP are to be provided by the defined benefit plan. The ESOP may provide benefits beyond those determined under the defined benefit plan. Contributions to the ESOP are determined by the Corporation’s Board of Directors. The Corporation made contributions to the defined benefit plan of $126 thousand, $2.05 million and $4.44 million in 2022, 2021 and 2020. The Corporation contributed $1.45 million, $1.40 million and $1.47 million to the ESOP in 2022, 2021 and 2020. There were contributions of $1.1 million, $1.1 million and $1.2 million to the ESOP for employees no longer participating in the defined benefit plan in 2022, 2021 and 2020 respectively. The Corporation uses a measurement date of December 31. Net periodic benefit cost and other amounts recognized in other comprehensive income included the following components: (Dollar amounts in thousands) 2022 2021 2020 Service cost - benefits earned $ 1,190 $ 1,355 $ 1,300 Interest cost on projected benefit obligation 2,826 2,632 3,116 Expected return on plan assets (4,910) (4,713) (4,198) Net amortization and deferral 1,259 2,072 1,968 Net periodic pension cost 365 1,346 2,186 Net loss (gain) during the period (5,323) (5,883) 3,188 Amortization of prior service cost — (1) (1) Amortization of unrecognized (gain) loss (1,259) (2,072) (1,967) Total recognized in other comprehensive (income) loss (6,582) (7,956) 1,220 Total recognized net periodic pension cost and other comprehensive income $ (6,217) $ (6,610) $ 3,406 The information below sets forth the change in projected benefit obligation, reconciliation of plan assets, and the funded status of the Corporation’s retirement program. Actuarial present value of benefits is based on service to date and present pay levels. (Dollar amounts in thousands) 2022 2021 Change in benefit obligation: Benefit obligation at January 1 $ 106,496 $ 109,922 Service cost 1,190 1,355 Interest cost 2,826 2,632 Actuarial (gain) loss (21,350) (2,943) Benefits paid (5,584) (4,470) Benefit obligation at December 31 83,578 106,496 Reconciliation of fair value of plan assets: Fair value of plan assets at January 1 87,979 82,437 Actual return on plan assets (11,117) 7,654 Employer contributions 456 2,358 Benefits paid (5,584) (4,470) Fair value of plan assets at December 31 71,734 87,979 Funded status at December 31 (plan assets less benefit obligation) $ (11,844) $ (18,517) Amounts recognized in accumulated other comprehensive income at December 31, 2022 and 2021 consist of: (Dollar amounts in thousands) 2022 2021 Net loss (gain) $ 14,469 $ 21,051 Prior service cost (credit) — — $ 14,469 $ 21,051 The accumulated benefit obligation for the defined benefit pension plan was $81.5 million and $102.4 million at year-end 2022 and 2021. Principal assumptions used to determine pension benefit obligation at year end: 2022 2021 Discount rate 5.02 % 2.83 % Rate of increase in compensation levels 3.00 3.00 Principal assumptions used to determine net periodic pension cost: 2022 2021 Discount rate 2.83 % 2.52 % Rate of increase in compensation levels 3.00 3.00 Expected long-term rate of return on plan assets 6.00 6.00 The expected long-term rate of return was estimated using market benchmarks for equities and bonds applied to the plan’s target asset allocation. Management estimated the rate by which plan assets would perform based on historical experience as adjusted for changes in asset allocations and expectations for future return on equities as compared to past periods. Plan Assets Pension Plan ESOP Pension ESOP Target Target Percentage of Plan Percentage of Plan Allocation Allocation Assets at December 31, Assets at December 31, ASSET CATEGORY 2022 2022 2022 2021 2022 2021 Equity securities 25-75 % 95-99 % 63 % 63 % 99 % 98 % Debt securities 0-50 % 0-0 % 34 % 32 % — % — % Other 0-20 % 0-5 % 3 % 5 % 1 % 2 % TOTAL 100 % 100 % 100 % 100 % Fair Value of Plan Assets The Corporation used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Equity, Debt, Investment Funds and Other Securities The fair value of the plan assets at December 31, 2022 and 2021, by asset category, is as follows: Fair Value Measurements at December 31, 2022 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Observable Identical Assets Inputs Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 52,319 $ 52,319 $ — $ — Debt securities 10,409 — 10,409 — Investment Funds 9,006 9,006 — — Total plan assets $ 71,734 $ 61,325 $ 10,409 $ — Fair Value Measurements at December 31, 2021 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Observable Identical Assets Inputs Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 62,382 $ 62,382 $ — $ — Debt securities 10,102 — 10,102 — Investment Funds 15,495 15,495 — — Total plan assets $ 87,979 $ 77,877 $ 10,102 $ — The investment objective for the retirement program is to maximize total return without exposure to undue risk. Asset allocation favors equities. This target includes the Corporation’s ESOP, which is fully invested in corporate stock. Other investment allocations include fixed income securities and cash. The plan is prohibited from investing in the following: private placement equity and debt transactions; letter stock and uncovered options; short-sale margin transactions and other specialized investment activity; and fixed income or interest rate futures. All other investments not prohibited by the plan are permitted. Equity securities in the defined benefit plan include First Financial Corporation common stock in the amount of $17.2 million (24 percent of total plan assets) and $18.1 million (21 percent of total plan assets) at December 31, 2022 and 2021, respectively. In addition the ESOP for non plan participants holds an estimated $7.8 million and $7.2 million of First Financial Corporation stock at December 31, 2022 and December 31, 2021 respectively. Other equity securities are predominantly stocks in large cap U.S. companies. Contributions — Estimated Future Payments PENSION BENEFITS (Dollar amounts in thousands) 2023 $ 6,844 2024 7,034 2025 7,175 2026 7,384 2027 7,490 2028-2032 38,028 Supplemental Executive Retirement Plan (Dollar amounts in thousands) 2022 2021 2020 Net loss (gain) during the period $ (1,604) $ 54 $ 1,459 Amortization of prior service cost — — — Amortization of unrecognized (gain) loss (418) (441) (246) Total recognized in other comprehensive (income) loss $ (2,022) $ (387) $ 1,213 The Corporation has $7.5 million and $8.8 million recognized in the balance sheet as a liability at December 31, 2022 and 2021. Amounts n accumulated other comprehensive income consist of $1.2 million net loss at December 31, 2022 and $3.2 million net loss at December 31, 2021. Estimated Future Payments (Dollar amounts on thousands) 2023 $ — 2024 374 2025 731 2026 711 2027 730 2028-2032 3,457 Post-retirement medical benefits December 31, (Dollar amounts in thousands) 2022 2021 Change in benefit obligation: Benefit obligation at January 1 $ 4,015 $ 4,147 Service cost 34 43 Interest cost 111 103 Plan participants' contributions 74 34 Actuarial (gain) (758) (53) Benefits paid (301) (259) Benefit obligation at December 31 $ 3,175 $ 4,015 Funded status at December 31 $ 3,175 $ 4,015 Amounts recognized in accumulated other comprehensive income consist of a net gain of $546 thousand at December 31, 2022 and $212 thousand net loss at December 31, 2021. The post-retirement benefits paid in 2022 and 2021 of $300 thousand and $259 thousand, respectively, were fully funded by company and participant contributions. There is no estimated transition obligation for the post-retirement benefit plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year. Weighted average assumptions at December 31: December 31, 2022 2021 Discount rate 5.02 % 2.83 % Initial weighted health care cost trend rate 5.00 % 5.00 % Ultimate health care cost trend rate 5.00 5.00 Year that the rate is assumed to stabilize and remain unchanged 2023 2022 Post-retirement health benefit expense included the following components: Years Ended December 31, (Dollar amounts in thousands) 2022 2021 2020 Service cost $ 34 $ 43 $ 38 Interest cost 111 103 125 Amortization of net actuarial loss (gain) — — — Net periodic benefit cost 145 146 163 Net loss (gain) during the period (758) (53) 238 Amortization of prior service cost — — — Total recognized in other comprehensive income (loss) (758) (53) 238 Total recognized net periodic benefit cost and other comprehensive income $ (613) $ 93 $ 401 Contributions Estimated Future Payments (Dollar amounts in thousands) 2023 $ 245 2024 251 2025 247 2026 244 2027 244 2028-2032 1,171 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | 17. STOCK BASED COMPENSATION: On February 5, 2011, the Corporation’s Board of Directors adopted and approved the First Financial Corporation 2011 Omnibus Equity Incentive Plan (the “2011 Stock Incentive Plan”) effective upon the approval of the Plan by the Corporation’s shareholders, which occurred on April 20, 2011 at the Corporation’s annual meeting of shareholders. The 2011 Stock Incentive Plan provides for the grant of non qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive awards. An aggregate of 700,000 shares of common stock were reserved for issuance under the 2011 Stock Incentive Plan. A total of 245,598 shares of restricted common stock of the Corporation were granted under the 2011 Stock Incentive Plan. On April 21, 2021 at the Corporation’s annual meeting of shareholders, the shareholders approved the First Financial Corporation Amended and Restated 2011 Omnibus Equity Incentive Plan (“2011 Amended Plan”). An aggregate of 400,000 shares of common stock are reserved for issuance under the 2011 Amended Plan. Shares issuable under the 2011 Amended Plan may be authorized and unissued shares of common stock or treasury shares. During the first quarter of 2022 and 2021, the Compensation Committee of the Board of Directors of the Company granted restricted stock awards to certain executive officers pursuant to the Corporation’s annual performance-based stock incentive bonus plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The value of the awards was determined by dividing the award amount by the median price of a share of Company common stock on the grant dates. The restricted stock awards vest as follows — 33% on the first anniversary, 33% on the second anniversary and the remaining 34% on the third anniversary of the earned date. The Corporation has the right to retain shares to satisfy any withholding tax obligation. A total of 18,679 shares and 21,159 shares of restricted common stock of the Corporation were granted under the 2011 Amended Plan in 2022 and 2021, respectively. A total of 360,162 remain to be granted under this plan. Restricted Stock Restricted stock awards require certain service-based or performance requirements and have a vesting period of 3 years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue. Compensation related to the plan was $825 thousand, $807 thousand, and $820 thousand in 2022, 2021 and 2020, respectively. 2022 2021 Weighted Average Weighted Average Number Grant Date Number Grant Date (shares in thousands) Outstanding Fair Value Outstanding Fair Value Nonvested balance at January 1, 19,546 42.03 19,724 42.51 Granted during the year 18,679 45.35 20,016 41.81 Vested during the year (19,098) 43.19 (19,105) 42.27 Forfeited during the year — — (1,089) 42.51 Nonvested balance at December 31, 19,127 44.11 19,546 42.03 As of December 31, 2022 and 2021, there was $844 thousand and $821 thousand, respectively of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of the shares vested during the years ended December 31, 2022 and 2021 was $880 thousand and $865 thousand, respectively. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |
OTHER COMPREHENSIVE INCOME (LOSS) | 18. OTHER COMPREHENSIVE INCOME (LOSS): The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the years ended December 31, 2022 and 2021. Unrealized gains and (Losses) on available- 2022 for-sale Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1, $ 15,674 $ (18,100) $ (2,426) Change in other comprehensive income (loss) before reclassification (144,568) 6,078 (138,490) Amounts reclassified from accumulated other comprehensive income (2) 944 942 Net current period other comprehensive income (loss) (144,570) 7,022 (137,548) Ending balance, December 31, $ (128,896) $ (11,078) $ (139,974) Unrealized gains and (Losses) on available- 2021 for-sale Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1, $ 34,162 $ (24,398) $ 9,764 Change in other comprehensive income (loss) before reclassification (18,403) 4,744 (13,659) Amounts reclassified from accumulated other comprehensive income (85) 1,554 1,469 Net current period other comprehensive income (loss) (18,488) 6,298 (12,190) Ending balance, December 31, $ 15,674 $ (18,100) $ (2,426) Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2022 Change 12/31/2022 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ 13,155 $ (144,290) $ (131,135) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 2,519 (280) 2,239 Total unrealized gain (loss) on securities available-for-sale $ 15,674 $ (144,570) $ (128,896) Unrealized gain (loss) on retirement plans (18,100) 7,022 (11,078) TOTAL $ (2,426) $ (137,548) $ (139,974) Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2021 Change 12/31/2021 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ 31,810 $ (18,655) $ 13,155 Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 2,352 167 2,519 Total unrealized income (loss) on securities available-for-sale $ 34,162 $ (18,488) $ 15,674 Unrealized gain (loss) on retirement plans (24,398) 6,298 (18,100) TOTAL $ 9,764 $ (12,190) $ (2,426) Year Ended December 31, 2022 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 3 Net securities gains (losses) on available-for-sale (1) Income tax expense securities $ 2 Net of tax Amortization of $ (1,259) (a) Salary and benefits retirement plan items 315 Income tax expense $ (944) Net of tax Total reclassifications for the period $ (942) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2021 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 114 Net securities gains (losses) on available-for-sale (29) Income tax expense securities $ 85 Net of tax Amortization of $ (2,072) (a) Salary and benefits retirement plan items 518 Income tax expense $ (1,554) Net of tax Total reclassifications for the period $ (1,469) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2020 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 233 Net securities gains (losses) on available-for-sale (58) Income tax expense securities $ 175 Net of tax Amortization of $ (1,967) (a) retirement plan items 492 Income tax expense $ (1,475) Net of tax Total reclassifications for the period $ (1,300) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details) . |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | 19. LEASES: The Corporation leases certain branches under operating leases. At December 31, 2022, the Corporation had lease liabilities right-of-use assets The calculated amount of the lease liabilities and right-of-use assets are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the lease liability and right-of-use asset. Regarding the discount rate, the new standard requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. The following table represents lease costs and other lease information. As the Corporation elected, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Lease costs were as follows: Year Ended (Dollar amounts in thousands) December 31, 2022 Operating lease cost $ 1,018 Short-term lease cost 200 Variable lease cost 11 Total lease cost $ 1,229 Other information: Cash paid for amounts included in the measurement of operating lease liabilities 985 Right-of-use assets obtained in exchange for new operating lease liabilities 59 Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2022 were as follows: (Dollar amounts in thousands) December 31, 2022 Twelve Months Ended December 31, 2023 $ 930 2024 838 2025 794 2026 713 2027 686 Thereafter 2,618 Total Future Minimum Lease Payments 6,579 Amounts Representing Interest (694) Present Value of Net Future Minimum Lease Payments $ 5,885 |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | 20. REGULATORY MATTERS: The Corporation and its bank affiliates are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. Further, the Corporation’s primary source of funds to pay dividends to shareholders is dividends from its subsidiary banks and compliance with these capital requirements can affect the ability of the Corporation and its banking affiliates to pay dividends. At December 31, 2022, none of undistributed earnings of the subsidiary banks, included in consolidated retained earnings, were available for distribution to the Corporation with regulatory approval. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and Banks must meet specific capital guidelines that involve quantitative measures of the Corporation’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation’s and Banks’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and Banks to maintain minimum amounts and ratios of Total, Common equity tier I capital and Tier I Capital to risk-weighted assets, and of Tier I Capital to average assets. Under the Basel III rules, the Corporation must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes, as of December 31, 2022 and 2021, that the Corporation meets all capital adequacy requirements to which it is subject. As of December 31, 2022, the most recent notification from the respective regulatory agencies categorized the subsidiary banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the banks must maintain minimum total risk-based, Common equity tier I capital, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the banks’ category. The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2022 and 2021. To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollar amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital Corporation – 2022 $ 561,347 14.61 % $ 403,400 10.500 % N/A N/A Corporation – 2021 533,599 15.63 % 358,575 10.500 % N/A N/A First Financial Bank – 2022 498,246 13.14 % 398,179 10.500 % 379,219 10.00 % First Financial Bank – 2021 487,416 14.78 % 346,248 10.500 % 329,760 10.00 % Common equity tier I capital Corporation – 2022 $ 521,568 13.58 % $ 268,933 7.000 % N/A N/A Corporation – 2021 490,842 14.37 % 239,050 7.000 % N/A N/A First Financial Bank – 2022 458,467 12.09 % 265,453 7.000 % 246,492 6.50 % First Financial Bank – 2021 446,189 13.53 % 230,832 7.000 % 214,344 6.50 % Tier I risk-based capital Corporation – 2022 $ 521,568 13.58 % $ 326,562 8.500 % N/A N/A Corporation – 2021 490,842 14.37 % 290,275 8.500 % N/A N/A First Financial Bank – 2022 458,467 12.09 % 322,336 8.500 % 303,375 8.00 % First Financial Bank – 2021 446,189 13.53 % 280,296 8.500 % 263,808 8.00 % Tier I leverage capital Corporation – 2022 $ 521,568 10.78 % $ 193,476 4.00 % N/A N/A Corporation – 2021 490,842 9.83 % 199,702 4.00 % N/A N/A First Financial Bank – 2022 458,467 9.50 % 193,073 4.00 % 241,341 5.00 % First Financial Bank – 2021 446,189 9.18 % 194,405 4.00 % 243,006 5.00 % In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC published an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Corporation is not adopting the capital transition relief. |
PARENT COMPANY CONDENSED FINANC
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS | |
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS | 21. PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: The parent company’s condensed balance sheets as of December 31, 2022 and 2021, and the related condensed statements of income and comprehensive income and cash flows for each of the three years in the period ended December 31, 2022, are as follows: CONDENSED BALANCE SHEETS December 31, (Dollar amounts in thousands) 2022 2021 ASSETS Cash deposits in affiliated banks $ 60,692 $ 13,844 Investments in subsidiaries 412,570 571,986 Land and headquarters building, net 9,116 4,423 Other 42,120 7,518 Total Assets $ 524,498 $ 597,771 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Dividends payable 8,912 7,952 Other liabilities 40,293 7,243 TOTAL LIABILITIES 49,205 15,195 Shareholders' Equity 475,293 582,576 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 524,498 $ 597,771 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (Dollar amounts in thousands) 2022 2021 2020 Dividends from subsidiaries $ 94,048 $ 99,231 $ 31,069 Other income 1,254 746 1,054 Interest on borrowings — — (374) Other operating expenses (3,435) (2,611) (3,430) Income before income taxes and equity in undistributed earnings of subsidiaries 91,867 97,366 28,319 Income tax benefit 1,110 681 801 Income before equity in undistributed earnings of subsidiaries 92,977 98,047 29,120 Equity in undistributed earnings of subsidiaries (21,868) (45,060) 24,724 Net income $ 71,109 $ 52,987 $ 53,844 Comprehensive income (loss) $ (66,439) $ 40,797 $ 71,109 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollar amounts in thousands) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 71,109 $ 52,987 $ 53,844 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 297 191 328 Equity in undistributed earnings 21,868 45,060 (24,724) Contribution of shares to ESOP 1,451 1,402 1,471 Restricted stock compensation 825 807 820 Increase (decrease) in other liabilities 33,050 435 6,127 (Increase) decrease in other assets (34,602) (1,518) (5,977) NET CASH FROM OPERATING ACTIVITIES 93,998 99,364 31,889 CASH FLOWS FROM INVESTING ACTIVITIES: (Increase) decrease in premises and equipment (4,990) — — Cash received (disbursed) from acquisitions — (31,348) — NET CASH FROM INVESTING ACTIVITIES (4,990) (31,348) — CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on borrowings — — (10,310) Purchase of treasury stock (27,701) (42,471) (9,220) Dividends paid (14,459) (14,181) (14,273) NET CASH FROM FINANCING ACTIVITES (42,160) (56,652) (33,803) NET (DECREASE) INCREASE IN CASH 46,848 11,364 (1,914) CASH, BEGINNING OF YEAR 13,844 2,480 4,394 CASH, END OF YEAR $ 60,692 $ 13,844 $ 2,480 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ — $ — $ 375 Income taxes $ 13,525 $ 15,025 $ 7,549 |
BUSINESS AND SIGNIFICANT ACCO_2
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates | Use of Estimates: |
Cash Flows | Cash Flows |
Securities | Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts are amortized on the level yield method without anticipating prepayments. Mortgage-backed securities are amortized over the expected life. Realized gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. |
Loans | Loans: All interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. In all cases, loans are placed on non-accrual or charged-off if collection of principal or interest is considered doubtful. The above policies are consistent for all segments of loans. |
Purchased Credit Deteriorated (PCD) Loans | Purchased Credit Deteriorated (PCD) Loans: |
Concentration of Credit Risk | Concentration of Credit Risk: The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are predominately loans to expand a business or finance asset purchases. The underlying risk in the Commercial loan segment is primarily a function of the reliability and sustainability of the cash flows of the borrower and secondarily on the underlying collateral securing the transaction. From time to time, the cash flows of borrowers may be less than historical or as planned. In addition, the underlying collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets financed or other business assets and most commercial loans are further supported by a personal guarantee. However, in some instances, short term loans are made on an unsecured basis. Agriculture production loans are typically secured by growing crops and generally secured by other assets such as farm equipment. Production loans are subject to weather and market pricing risks. The Corporation has established underwriting standards and guidelines for all commercial loan types. The Corporation strives to maintain a geographically diverse commercial real estate portfolio. Commercial real estate loans are primarily underwritten based upon the cash flows of the underlying real estate or from the cash flows of the business conducted at the real estate. Generally, these types of loans will be fully guaranteed by the principal owners of the real estate and loan amounts must be supported by adequate collateral value. Commercial real estate loans may be adversely affected by factors in the local market, the regional economy, or industry specific factors. In addition, Commercial Construction loans are a specific type of commercial real estate loan which inherently carry more risk than loans for completed projects. Since these types of loans are underwritten utilizing estimated costs, feasibility studies, and estimated absorption rates, the underlying value of the project may change based upon the inaccuracy of these projections. Commercial construction loans are closely monitored, subject to industry standards, and disbursements are controlled during the construction process. Residential Retail real estate mortgages that are secured by 1-4 family residences are generally owner occupied and include residential real estate and residential real estate construction loans. The Corporation typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if the ratio is exceeded. The Corporation sells substantially all of its long-term fixed mortgages to secondary market purchasers. Mortgages sold to secondary market purchasers are underwritten to specific guidelines. The Corporation originates some mortgages that are maintained in the bank’s loan portfolio. Portfolio loans are generally adjustable rate mortgages and are underwritten to conform to Qualified Mortgage standards. Several factors are considered in underwriting all Mortgages including the value of the underlying real estate, debt-to-income ratio and credit history of the borrower. Repayment is primarily dependent upon the personal income of the borrower and can be impacted by changes in borrower’s circumstances such as changes in employment status and changes in real estate property values. Risk is mitigated by the sale of substantially all long-term fixed rate mortgages, the underwriting of portfolio loans to Qualified Mortgage standards and the fact that mortgages are generally smaller individual amounts spread over a large number of borrowers. Consumer The consumer portfolio primarily consists of home equity loans and lines (typically secured by a subordinate lien on a 1-4 family residence), secured loans (typically secured by automobiles, boats, recreational vehicles, or motorcycles), cash/CD secured, and unsecured loans. Pricing, loan terms, and loan to value guidelines vary by product line. The underlying value of collateral dependent loans may vary based on a number of economic conditions, including fluctuations in home prices and unemployment levels. Underwriting of consumer loans is based on the individual credit profile and analysis of the debt repayment capacity for each borrower. Payments for consumer loans is typically set-up on equal monthly installments, however, future repayment may be impacted by a change in economic conditions or a change in the personal income levels of individual customers. Overall risks within the consumer portfolio are mitigated by the mix of various loan products, lending in various markets and the overall make-up of the portfolio (small loan sizes and a large number of individual borrowers). |
Allowance for Credit Losses | Allowance for Credit Losses: The allowance for credit loss estimation process involves procedures to appropriately consider the unique characteristics of the loan portfolio segments. These segments are further disaggregated into loan classes based on the level at which credit risk is monitored. When computing the level of expected credit losses, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. We utilize a cohort methodology to determine the allowance for credit losses. This method identifies and captures the balance of a pool of loans with similar risk characteristics at a particular point in time to form a cohort. Then it tracks the respective losses generated by that cohort of loans over their remaining life. When past performance may not be representative of future losses, loss rates are adjusted for qualitative and economic forecast factors. The allowance level is influenced by loan volumes, loan quality rating migration or delinquency status, changes in historical loss experience, and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance for credit losses consists of specific and pooled components. The specific component relates to loans that are individually evaluated. A loan is individually evaluated when the loan no longer shares similar risk characteristics with other loans in its respective loan pool. If a loan is individually evaluated, a portion of the allowance is allocated so that the loan is reported at the fair value of collateral, adjusted for selling costs, if repayment is expected solely from the collateral. The pooled component covers pools of loans that share similar risk characteristics, and is based on historical loss experienced since 2008. This historical loss experience is supplemented with other current factors based on the risks present for each portfolio segment. These current factors include items such as changes in lending policies or procedures, asset specific risks, and economic uncertainty in forward-looking forecasts. Economic indicators utilized in forecasting include unemployment rate, gross domestic product, housing starts, and interest rates. We maintain an allowance for credit losses on unfunded lending commitments to provide for the risk of loss inherent in these arrangements. Unfunded commitments include funds available for disbursement on commercial and agriculture operating lines, commercial real estate and residential construction loans, and home equity lines of credit. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded commitments was $2.1 million at December 31, 2022, and $3.0 million at December 31, 2021. |
Foreclosed Assets | Foreclosed Assets: |
Premises and Equipment | Premises and Equipment: |
Restricted Stock | Restricted Stock: |
Servicing Rights | Servicing Rights: Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with Other Service Charges and Fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is included in Other Service Charges and Fees on the income statement, is for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Servicing fees totaled $1.4 million, $1.3 million and $1.3 million for the years ended December 31, 2022, 2021 and 2020. Late fees and ancillary fees related to loan servicing are not material. |
Stock based compensation | Stock based compensation: |
Transfers of Financial Assets | Transfers of Financial Assets: |
Bank-Owned Life Insurance | Bank-Owned Life Insurance: |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Other intangible assets consist of core deposit assets arising from the whole bank and branch acquisitions. They are initially measured at fair value and then are amortized on an accelerated basis over their estimated useful lives, which are 10 and 12 years, respectively. |
Long-Term Assets | Long-Term Assets: |
Benefit Plans | Benefit Plans: |
Employee Stock Ownership Plan | Employee Stock Ownership Plan: |
Deferred Compensation Plan | Deferred Compensation Plan: |
Incentive Plans | Incentive Plans: 15-year was $2.0 million, $2.3 million and $2.2 million, respectively, and resulted in a liability of $1.6 million at December 31, 2022 and $1.8 million at December 31, 2021. The Omnibus Equity Incentive Plan is a long term incentive plan that was designed to align the interests of participants with the interest of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. |
Income Taxes | Income Taxes: A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: |
Earnings Per Share | Earnings Per Share: |
Comprehensive Income | Comprehensive Income (Loss): |
Loss Contingencies | Loss Contingencies: |
Dividend Restriction | Dividend Restriction: |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: |
Operating Segment | Operating Segment: |
Accounting Pronouncements Adopted: | Accounting Pronouncements Adopted: In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU 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. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which 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. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which defers the sunset date of relief provisions within Topic 848 from December 31, 2022 to December 31, 2024. The objective of the guidance in Topic 848 is to provide relief during the transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024 The Corporation has discontinued originating LIBOR based loans and has a plan in place to transition all LIBOR indexed loans to term SOFR. |
Recently Issued Not Yet Effective Accounting Pronouncements: | Recently Issued Not Yet Effective Accounting Pronouncements: In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures” (ASU 2022-02). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (TDRs) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (CECL) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Corporation for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Corporation is evaluating the effect that ASU 2022-02 will have on its consolidated financial statements and related disclosures. In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 is effective for the Corporation for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption is permitted. The Corporation is evaluating the effect that ASU 2022-03 will have on its consolidated financial statements and related disclosures. |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | |
Schedule of assets and liabilities measured at fair value | The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs). December 31, 2022 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Dollar amounts in thousands) Level 1 Level 2 Level 3 Total U.S. Government agencies $ — $ 98,473 $ — $ 98,473 Mortgage Backed Securities-residential — 620,248 — 620,248 Mortgage Backed Securities-commercial — 9,677 — 9,677 Collateralized mortgage obligations — 203,485 — 203,485 State and municipal — 358,608 1,545 360,153 Municipal taxable — 32,515 — 32,515 U.S. Treasury — 2,944 — 2,944 Collateralized debt obligations — — 2,986 2,986 TOTAL $ — $ 1,325,950 $ 4,531 $ 1,330,481 Derivative Assets 2,838 Derivative Liabilities (2,838) December 31, 2021 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Dollar amounts in thousands) Level 1 Level 2 Level 3 Total U.S. Government agencies $ — $ 120,123 $ — $ 120,123 Mortgage Backed Securities-residential — 626,428 — 626,428 Mortgage Backed Securities-commercial — 15,671 — 15,671 Collateralized mortgage obligations — 175,005 — 175,005 State and municipal — 378,203 1,895 380,098 Municipal taxable — 38,626 — 38,626 U.S. Treasury — 204 — 204 Collateralized debt obligations — — 3,359 3,359 TOTAL $ — $ 1,354,260 $ 5,254 $ 1,359,514 Derivative Assets 1,030 Derivative Liabilities (1,030) |
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3) | The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2022 and 2021. Year Ended December 31, 2022 State and municipal Collateralized (Dollar amounts in thousands) obligations debt obligations Other securities Total Beginning balance, January 1 $ 1,895 $ 3,359 $ — $ 5,254 Total realized/unrealized gains or losses Included in earnings — — — — Included in other comprehensive income — (373) — (373) Transfers — — — — Settlements (350) — — (350) Ending balance, December 31 $ 1,545 $ 2,986 $ — $ 4,531 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2021 State and municipal Collateralized (Dollar amounts in thousands) obligations debt obligations Other securities Total Beginning balance, January 1 $ 1,895 $ 3,136 $ — $ 5,031 Total realized/unrealized gains or losses Included in earnings — — — — Included in other comprehensive income — 223 — 223 Purchases — — — — Settlements — — — — Ending balance, December 31 $ 1,895 $ 3,359 $ — $ 5,254 |
Quantitative information about recurring and non-recurring Level 3 | The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022 and 2021. (Dollar amounts in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 1,545 Discounted cash flow Discount rate 3.73%-4.44 % Collateralized debt obligations $ 2,986 Discounted cash flow Discount rate 5.34 % Collateral dependent loans $ 4,477 Discounted cash flow Discount rate for age of appraisal and market conditions 0.00%-50.00 % (Dollar amounts in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 1,895 Discounted cash flow Discount rate 3.41%-4.44 % Collateralized debt obligations $ 3,359 Discounted cash flow Discount rate 1.83 % Collateral dependent loans 12,839 Discounted cash flow Discount rate for age of appraisal and market conditions 0.00%-50.00 % |
Schedule of carrying amount and estimated fair value of financial instruments | The carrying amount and estimated fair value of assets and liabilities are presented in the tables below and were determined based on the above assumptions: December 31, 2022 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 222,517 $ 29,400 $ 193,117 $ — $ 222,517 Federal funds sold 9,374 — 9,374 — 9,374 Securities available-for-sale 1,330,481 — 1,325,950 4,531 1,330,481 Restricted stock 15,378 n/a n/a n/a n/a Loans, net 3,027,659 — — 2,930,680 2,930,680 Accrued interest receivable 21,288 — 5,529 15,759 21,288 Deposits (4,368,871) — (4,369,402) — (4,369,402) Short-term borrowings (70,875) — (70,875) — (70,875) Other borrowings (9,589) — (8,788) — (8,788) Accrued interest payable (483) — (483) — (483) December 31, 2021 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 688,027 $ 24,901 $ 663,126 $ — $ 688,027 Federal funds sold 308 — 308 — 308 Securities available-for-sale 1,359,514 — 1,354,260 5,254 1,359,514 Restricted stock 16,200 n/a n/a n/a n/a Loans, net 2,767,590 — — 2,682,257 2,682,257 Accrued interest receivable 16,946 — 4,709 12,237 16,946 Deposits (4,409,569) — (4,418,117) — (4,418,117) Short-term borrowings (93,374) — (93,374) — (93,374) Other borrowings (15,937) — (16,483) — (16,483) Accrued interest payable (687) — (687) — (687) |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SECURITIES | |
Debt Securities, Available-for-sale | The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: December 31, 2022 Amortized Unrealized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government agencies $ 110,226 $ 24 $ (11,777) $ 98,473 Mortgage Backed Securities - residential 711,131 133 (91,016) 620,248 Mortgage Backed Securities - commercial 10,103 — (426) 9,677 Collateralized mortgage obligations 228,344 60 (24,919) 203,485 State and municipal obligations 396,522 745 (37,114) 360,153 Municipal taxable 39,321 41 (6,847) 32,515 U.S. Treasury 2,979 — (35) 2,944 Collateralized debt obligations — 2,986 — 2,986 TOTAL $ 1,498,626 $ 3,989 $ (172,134) $ 1,330,481 December 31, 2021 Amortized Unrealized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government agencies $ 118,176 $ 2,688 $ (741) $ 120,123 Mortgage Backed Securities-residential 628,920 4,387 (6,879) 626,428 Mortgage Backed Securities-commercial 15,480 191 — 15,671 Collateralized mortgage obligations 175,501 1,272 (1,768) 175,005 State and municipal obligations 362,843 17,833 (578) 380,098 Municipal taxable 38,445 396 (215) 38,626 U.S. Treasury 205 — (1) 204 Collateralized debt obligations — 3,359 — 3,359 TOTAL $ 1,339,570 $ 30,126 $ (10,182) $ 1,359,514 |
Schedule Of Gross Gain Or Loss realised | Below is a summary of the gross gains and losses realized by the Corporation on investment sales and calls during the years ended December 31, 2022, 2021 and 2020, respectively. (Dollar amounts in thousands) 2022 2021 2020 Proceeds $ 1,565 $ 12,886 $ 36,696 Gross gains 6 274 290 Gross losses (3) (160) (57) |
Schedule of contractual maturities of debt securities | Contractual maturities of debt securities at year-end 2022 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately. Available-for-Sale Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 8,031 $ 7,984 Due after one but within five years 45,010 43,566 Due after five but within ten years 88,684 83,055 Due after ten years 407,323 362,466 549,048 497,071 Mortgage-backed securities and collateralized mortgage obligations 949,578 833,410 TOTAL $ 1,498,626 $ 1,330,481 |
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position | The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2022 and 2021. December 31, 2022 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 58,462 $ (4,034) $ 38,959 $ (7,743) $ 97,421 $ (11,777) Mortgage Backed Securities - Residential 234,488 (19,757) 379,520 (71,259) 614,008 (91,016) Mortgage Backed Securities - Commercial 9,677 (426) — — 9,677 (426) Collateralized mortgage obligations 135,135 (11,331) 63,792 (13,588) 198,927 (24,919) State and municipal obligations 233,439 (24,291) 41,510 (12,823) 274,949 (37,114) Municipal taxable 18,637 (3,706) 12,837 (3,141) 31,474 (6,847) U.S. Treasury 2,944 (35) — — 2,944 (35) Total temporarily impaired securities $ 692,782 $ (63,580) $ 536,618 $ (108,554) $ 1,229,400 $ (172,134) December 31, 2021 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 48,939 $ (739) $ 146 $ (2) $ 49,085 $ (741) Mortgage Backed Securities - Residential 436,726 (5,281) 60,807 (1,598) 497,533 (6,879) Collateralized mortgage obligations 73,530 (1,327) 12,505 (441) 86,035 (1,768) State and municipal obligations 54,040 (578) — — 54,040 (578) Municipal taxable 15,048 (195) 729 (20) 15,777 (215) U.S. Treasury 204 (1) — — 204 (1) Total temporarily impaired securities $ 628,487 $ (8,121) $ 74,187 $ (2,061) $ 702,674 $ (10,182) |
Rollforward of the credit losses recognized in earnings | The table below presents a rollforward of the credit losses recognized in earnings for the years presented: (Dollar amounts in thousands) 2022 2021 2020 Beginning balance $ 2,974 $ 2,974 $ 2,974 Reductions for securities called during the period — — — Ending balance $ 2,974 $ 2,974 $ 2,974 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
Summary of Loans | Loans are summarized as follows: December 31, (Dollar amounts in thousands) 2022 2021 Commercial $ 1,798,260 $ 1,674,066 Residential 673,464 664,509 Consumer 588,539 474,026 Total gross loans 3,060,263 2,812,601 Deferred costs, net 7,175 3,294 Allowance for credit losses (39,779) (48,305) TOTAL $ 3,027,659 $ 2,767,590 |
Capitalized Mortgage Servicing Rights | Activity for capitalized mortgage servicing rights (included in other assets) was as follows: December 31, (Dollar amounts in thousands) 2022 2021 2020 Servicing rights: Beginning of year $ 1,959 $ 1,601 $ 1,435 Additions 489 1,094 956 Amortized to expense (681) (736) (790) End of year $ 1,767 $ 1,959 $ 1,601 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACQUISITIONS | |
Schedule of consideration paid and the amounts of the assets acquired and liabilities assumed | Measurement As Initially Period (Dollar amounts in thousands) Reported Adjustments As Adjusted Consideration Cash consideration $ 31,358 $ — $ 31,358 Fair value of total consideration transferred $ 31,358 $ — $ 31,358 Assets acquired Cash $ 3,046 $ 5,220 $ 8,266 Investment securities available-for-sale 57,054 (5,220) 51,834 Federal funds sold 10,470 — 10,470 Bank owned life insurance 9,753 — 9,753 Federal Home Loan Bank stock 1,362 — 1,362 Loans 227,827 — 227,827 Premises and equipment 8,180 — 8,180 Core deposit intangibles 652 — 652 Other assets 4,567 (850) 3,717 Total assets acquired 322,911 (850) 322,061 Liabilities assumed Deposits 286,098 — 286,098 FHLB advances 11,042 — 11,042 Other liabilities 1,956 — 1,956 Total liabilities assumed 299,096 — 299,096 Net identifiable assets 23,815 (850) 22,965 Goodwill $ 7,543 $ 850 $ 8,393 |
Schedule of pro forma financial information | Year ended December 31, (Dollar amounts in thousands, except per share data) 2021 2020 Net interest income $ 150,806 $ 156,051 Net income $ 53,714 $ 55,958 Basic and diluted earnings per share $ 4.07 $ 4.08 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ALLOWANCE FOR CREDIT LOSSES | |
Schedule of allowances for loan losses by portfolio segment | The following table presents the activity of the allowance for credit losses by portfolio segment for the years ended December 31, 2022, 2021 and 2020. Allowance for Credit Losses: December 31, 2022 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 18,883 $ 18,316 $ 10,721 $ 385 $ 48,305 Provision for credit losses (4,079) (3,850) 6,131 (227) (2,025) Loans charged -off (3,917) (657) (11,132) — (15,706) Recoveries 2,062 759 6,384 — 9,205 Ending Balance $ 12,949 $ 14,568 $ 12,104 $ 158 $ 39,779 Allowance for Credit Losses: December 31, 2021 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 13,925 $ 19,142 $ 11,009 $ — $ 44,076 PCD ACL on acquired loans 4,410 — — 0 4,410 Provision for credit losses 1,637 (630) 1,074 385 2,466 Loans charged -off (2,158) (812) (5,246) — (8,216) Recoveries 1,069 616 3,884 — 5,569 Ending Balance $ 18,883 $ 18,316 $ 10,721 $ 385 $ 48,305 Allowance for Credit Losses: December 31, 2020 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 8,945 $ 1,302 $ 8,304 $ 1,392 $ 19,943 Impact of adopting ASC 326 6,843 9,515 2,118 (1,392) 17,084 Provision for credit losses (1,622) 8,612 3,538 — 10,528 Loans charged off (1,097) (944) (6,355) — (8,396) Recoveries 856 657 3,404 — 4,917 Ending Balance $ 13,925 $ 19,142 $ 11,009 $ — $ 44,076 |
Schedule of recorded investment in non-performing loans by class of loans | December 31, 2022 Loans Past Nonaccrual Due Over With No 90 Days Still Allowance (Dollar amounts in thousands) Accruing Nonaccrual For Credit Loss Commercial Commercial & Industrial $ 114 $ 2,137 $ 254 Farmland — 461 — Non Farm, Non Residential — 2,064 2,052 Agriculture — 186 155 All Other Commercial — 26 — Residential First Liens 666 1,380 — Home Equity 180 133 — Junior Liens 197 256 — Multifamily — 1,468 — All Other Residential — 478 — Consumer Motor Vehicle — 2,549 — All Other Consumer — 416 — TOTAL $ 1,157 $ 11,554 $ 2,461 December 31, 2021 Loans Past Nonaccrual Due Over With No 90 Days Still Allowance (Dollar amounts in thousands) Accruing Nonaccrual For Credit Loss Commercial Commercial & Industrial $ 14 $ 1,950 $ 1,662 Farmland — 15 — Non Farm, Non Residential — 2,911 2,898 Agriculture — 111 — All Other Commercial — 4 — Residential First Liens 346 2,339 33 Home Equity — 84 — Junior Liens 89 294 — Multifamily — 225 — All Other Residential — 107 — Consumer Motor Vehicle 94 864 — All Other Consumer — 686 — TOTAL $ 543 $ 9,590 $ 4,593 |
Schedule of amortized cost basis of collateral dependent loans | December 31, 2022 Collateral Type (Dollar amounts in thousands) Real Estate Other Commercial Commercial & Industrial $ 4,613 $ 1 Farmland 3,289 — Non Farm, Non Residential 5,123 — Agriculture — 155 All Other Commercial — — Residential First Liens — — Home Equity — — Junior Liens — — Multifamily — — All Other Residential 895 — Consumer Motor Vehicle — — All Other Consumer — — Total $ 13,920 $ 156 December 31, 2021 Collateral Type (Dollar amounts in thousands) Real Estate Other Commercial Commercial & Industrial $ 17,734 $ 720 Farmland 3,669 — Non Farm, Non Residential 6,135 — Agriculture — — All Other Commercial — — Residential First Liens 33 — Home Equity — — Junior Liens — — Multifamily 935 — All Other Residential — — Consumer Motor Vehicle — — All Other Consumer — — Total $ 28,506 $ 720 |
Schedule of aging of the recorded investment in loans by past due category and class of loans | The following tables present the aging of the recorded investment in loans by past due category and class of loans. December 31, 2022 90 Days 30-59 Days 60-89 Days and Greater Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,698 $ 529 $ 726 $ 2,953 $ 674,569 $ 677,522 Farmland 112 — — 112 127,498 127,610 Non Farm, Non Residential 274 34 — 308 387,108 387,416 Agriculture — 1,231 — 1,231 136,451 137,682 All Other Commercial 333 — 14 347 478,095 478,442 Residential First Liens 4,528 1,203 1,054 6,785 341,131 347,916 Home Equity 305 144 276 725 63,615 64,340 Junior Liens 213 69 327 609 56,367 56,976 Multifamily 317 83 — 400 180,305 180,705 All Other Residential 1,115 350 — 1,465 24,058 25,523 Consumer Motor Vehicle 15,151 1,930 985 18,066 539,651 557,717 All Other Consumer 341 56 15 412 32,967 33,379 TOTAL $ 24,387 $ 5,629 $ 3,397 $ 33,413 $ 3,041,815 $ 3,075,228 December 31, 2021 90 Days 30-59 Days 60-89 Days and Greater Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,132 $ 388 $ 1,614 $ 3,134 $ 693,949 $ 697,083 Farmland 57 — — 57 141,189 141,246 Non Farm, Non Residential 62 — — 62 361,174 361,236 Agriculture 90 42 89 221 141,682 141,903 All Other Commercial 390 — — 390 340,076 340,466 Residential First Liens 4,686 680 949 6,315 336,064 342,379 Home Equity 131 24 58 213 62,085 62,298 Junior Liens 179 120 283 582 50,048 50,630 Multifamily 342 146 — 488 178,849 179,337 All Other Residential 284 291 — 575 30,843 31,418 Consumer Motor Vehicle 7,633 1,105 486 9,224 433,095 442,319 All Other Consumer 192 37 — 229 33,425 33,654 TOTAL $ 15,178 $ 2,833 $ 3,479 $ 21,490 $ 2,802,479 $ 2,823,969 |
Schedule activity for TDRs | During the years ending December 31, 2022, 2021, and 2020 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR’s. 2022 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 407 $ 3,686 $ 706 $ 4,799 Added 305 128 68 501 Disposed — — (679) (679) Charged Off — (50) — (50) Payments (84) (589) (95) (768) December 31, $ 628 $ 3,175 $ — $ 3,803 2021 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, — 3,589 617 4,206 Added 407 491 402 1,300 Charged Off — (29) (82) (111) Payments — (365) (231) (596) December 31, 407 3,686 706 4,799 2020 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 11 $ 3,485 $ 698 $ 4,194 Added — 692 304 996 Charged Off — (6) (158) (164) Payments (11) (582) (227) (820) December 31, $ — $ 3,589 $ 617 $ 4,206 |
Schedule of commercial loan portfolio by risk category | The following tables present the commercial loan portfolio by risk category. These balances do not include accrued interest: December 31, 2022 Term Loans at Amortized Cost Basis by Origination Year Revolving 2022 2021 2020 2019 2018 Prior Loans Total Commercial Commercial and Industrial Pass $ 163,479 $ 128,012 $ 56,830 $ 54,208 $ 26,514 $ 99,522 $ 92,110 $ 620,675 Special Mention 2,071 9,738 3,434 2,572 2,061 1,848 453 $ 22,177 Substandard 423 723 1,861 954 3,169 6,264 9,103 $ 22,497 Doubtful — — — — — — — $ — Not Rated 7,041 1,408 822 469 149 85 — $ 9,974 Subtotal $ 173,014 $ 139,881 $ 62,947 $ 58,203 $ 31,893 $ 107,719 $ 101,666 $ 675,323 Farmland Pass $ 16,261 $ 22,530 $ 9,244 $ 9,438 $ 10,352 $ 48,847 $ 340 $ 117,012 Special Mention — — 1,164 882 — 2,930 — $ 4,976 Substandard — — 456 608 337 1,969 — $ 3,370 Doubtful — — — — — — — $ — Not Rated — — — — — 17 — $ 17 Subtotal $ 16,261 $ 22,530 $ 10,864 $ 10,928 $ 10,689 $ 53,763 $ 340 $ 125,375 Non Farm, Non Residential Pass $ 102,629 $ 75,011 $ 33,214 $ 19,596 $ 31,438 $ 111,586 $ 2,975 $ 376,449 Special Mention 99 1,035 — 921 — 279 — $ 2,334 Substandard — — — 513 — 6,281 — $ 6,794 Doubtful — — — — — — — $ — Not Rated — — 696 — — 269 — $ 965 Subtotal $ 102,728 $ 76,046 $ 33,910 $ 21,030 $ 31,438 $ 118,415 $ 2,975 $ 386,542 Agriculture Pass $ 13,085 $ 9,028 $ 8,015 $ 8,422 $ 1,987 $ 26,729 $ 62,397 $ 129,663 Special Mention 89 — 10 3 — 709 2,519 $ 3,330 Substandard — — — 224 1,201 56 762 $ 2,243 Doubtful — — — — — — — $ — Not Rated 71 39 68 61 25 — — $ 264 Subtotal $ 13,245 $ 9,067 $ 8,093 $ 8,710 $ 3,213 $ 27,494 $ 65,678 $ 135,500 Other Commercial Pass $ 143,941 $ 91,615 $ 90,845 $ 19,259 $ 29,143 $ 82,535 $ 5,602 $ 462,940 Special Mention 23 — — 10 — 11,911 — $ 11,944 Substandard — 23 — — — 6 — $ 29 Doubtful — — — — — — — $ — Not Rated 16 82 — — 29 480 — $ 607 Subtotal $ 143,980 $ 91,720 $ 90,845 $ 19,269 $ 29,172 $ 94,932 $ 5,602 $ 475,520 Residential Multifamily >5 Residential Pass $ 50,424 $ 33,415 $ 46,740 $ 6,734 $ 4,969 $ 27,353 $ 96 $ 169,731 Special Mention — 533 372 — — 6,795 — $ 7,700 Substandard — — — — — 1,280 — $ 1,280 Doubtful — — — — — — — $ — Not Rated — 1,124 — — — 263 — $ 1,387 Subtotal $ 50,424 $ 35,072 $ 47,112 $ 6,734 $ 4,969 $ 35,691 $ 96 $ 180,098 Total Pass $ 489,819 $ 359,611 $ 244,888 $ 117,657 $ 104,403 $ 396,572 $ 163,520 $ 1,876,470 Special Mention 2,282 11,306 4,980 4,388 2,061 24,472 2,972 $ 52,461 Substandard 423 746 2,317 2,299 4,707 15,856 9,865 $ 36,213 Doubtful — — — — — — — $ — Not Rated 7,128 2,653 1,586 530 203 1,114 — $ 13,214 $ 499,652 $ 374,316 $ 253,771 $ 124,874 $ 111,374 $ 438,014 $ 176,357 $ 1,978,358 December 31, 2021 Term Loans at Amortized Cost Basis by Origination Year Revolving 2021 2020 2019 2018 2017 Prior Loans Total Commercial Commercial and Industrial Pass $ 163,588 $ 71,271 $ 80,668 $ 40,441 $ 37,739 $ 113,887 $ 111,594 $ 619,188 Special Mention 7,561 393 1,841 5,375 263 4,523 7,482 $ 27,438 Substandard 4,521 896 348 5,148 2,325 7,934 2,648 $ 23,820 Doubtful — — — — — — — $ — Not Rated 21,134 1,610 959 466 189 140 — $ 24,498 Subtotal $ 196,804 $ 74,170 $ 83,816 $ 51,430 $ 40,516 $ 126,484 $ 121,724 $ 694,944 Farmland Pass $ 25,673 $ 12,060 $ 13,111 $ 13,246 $ 11,049 $ 49,158 $ 1,418 $ 125,715 Special Mention — 1,191 914 — 342 3,247 — $ 5,694 Substandard 3,455 444 — 326 558 2,876 — $ 7,659 Doubtful — — — — — — — $ — Not Rated — — — — — — — $ — Subtotal $ 29,128 $ 13,695 $ 14,025 $ 13,572 $ 11,949 $ 55,281 $ 1,418 $ 139,068 Non Farm, Non Residential Pass $ 81,203 $ 37,971 $ 24,716 $ 32,775 $ 54,732 $ 97,241 $ 10,548 $ 339,186 Special Mention — — 1,103 182 1,948 1,996 — $ 5,229 Substandard — — 910 — 1,440 13,391 — $ 15,741 Doubtful — — — — — — — $ — Not Rated — — — — — 402 — $ 402 Subtotal $ 81,203 $ 37,971 $ 26,729 $ 32,957 $ 58,120 $ 113,030 $ 10,548 $ 360,558 Agriculture Pass $ 14,426 $ 10,386 $ 10,135 $ 2,585 $ 4,932 $ 15,755 $ 68,937 $ 127,156 Special Mention — — 1,000 — 537 271 5,257 $ 7,065 Substandard — 20 216 — 46 485 4,828 $ 5,595 Doubtful — — — — — — — $ — Not Rated 110 120 131 55 1 — — $ 417 Subtotal $ 14,536 $ 10,526 $ 11,482 $ 2,640 $ 5,516 $ 16,511 $ 79,022 $ 140,233 Other Commercial Pass $ 77,821 $ 69,117 $ 33,231 $ 36,495 $ 53,479 $ 58,819 $ 3,488 $ 332,450 Special Mention — — — — — 6,106 — $ 6,106 Substandard 72 — 25 475 — 9 — $ 581 Doubtful — — — — — — — $ — Not Rated 89 — — 37 — — — $ 126 Subtotal $ 77,982 $ 69,117 $ 33,256 $ 37,007 $ 53,479 $ 64,934 $ 3,488 $ 339,263 Residential Multifamily >5 Residential Pass $ 37,244 $ 63,312 $ 16,037 $ 7,471 $ 5,370 $ 35,284 $ 1,434 $ 166,152 Special Mention — — — — — 10,282 — $ 10,282 Substandard — — — — — 958 — $ 958 Doubtful — — — — — — — $ — Not Rated 1,149 — — — 44 384 — $ 1,577 Subtotal $ 38,393 $ 63,312 $ 16,037 $ 7,471 $ 5,414 $ 46,908 $ 1,434 $ 178,969 Total Pass $ 399,955 $ 264,117 $ 177,898 $ 133,013 $ 167,301 $ 370,144 $ 197,419 $ 1,709,847 Special Mention 7,561 1,584 4,858 5,557 3,090 26,425 12,739 $ 61,814 Substandard 8,048 1,360 1,499 5,949 4,369 25,653 7,476 $ 54,354 Doubtful — — — — — — — $ — Not Rated 22,482 1,730 1,090 558 234 926 — $ 27,020 $ 438,046 $ 268,791 $ 185,345 $ 145,077 $ 174,994 $ 423,148 $ 217,634 $ 1,853,035 The Corporation evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on non-accrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following table presents the other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming. These balances do not include accrued interest: December 31, 2022 Term Loans at Amortized Cost Basis by Origination Year Revolving 2022 2021 2020 2019 2018 Prior Loans Total Residential First Liens Performing $ 71,607 $ 70,197 $ 45,080 $ 16,968 $ 20,258 $ 117,488 $ 3,245 $ 344,843 Non-performing 106 — — 141 100 1,782 — $ 2,129 Subtotal $ 71,713 $ 70,197 $ 45,080 $ 17,109 $ 20,358 $ 119,270 $ 3,245 $ 346,972 Home Equity Performing $ 1,995 $ 943 $ 8 $ 115 $ 55 $ 820 $ 59,875 $ 63,811 Non-performing — — 78 — 14 40 176 $ 308 Subtotal $ 1,995 $ 943 $ 86 $ 115 $ 69 $ 860 $ 60,051 $ 64,119 Junior Liens Performing $ 19,074 $ 10,485 $ 7,507 $ 5,830 $ 5,366 $ 6,195 $ 1,928 $ 56,385 Non-performing — 4 77 90 139 141 — $ 451 Subtotal $ 19,074 $ 10,489 $ 7,584 $ 5,920 $ 5,505 $ 6,336 $ 1,928 $ 56,836 Other Residential Performing $ 11,542 $ 9,923 $ 501 $ 915 $ 498 $ 1,582 $ — $ 24,961 Non-performing — — — 425 35 18 — $ 478 Subtotal $ 11,542 $ 9,923 $ 501 $ 1,340 $ 533 $ 1,600 $ — $ 25,439 Consumer Motor Vehicle Performing $ 306,565 $ 118,362 $ 88,144 $ 29,004 $ 8,652 $ 2,230 $ 6 $ 552,963 Non-performing 813 739 437 237 66 47 — $ 2,339 Subtotal $ 307,378 $ 119,101 $ 88,581 $ 29,241 $ 8,718 $ 2,277 $ 6 $ 555,302 Other Consumer Performing $ 13,426 $ 7,914 $ 4,109 $ 1,302 $ 429 $ 819 $ 4,819 $ 32,818 Non-performing 18 247 89 39 12 12 2 $ 419 Subtotal $ 13,444 $ 8,161 $ 4,198 $ 1,341 $ 441 $ 831 $ 4,821 $ 33,237 Total Performing $ 424,209 $ 217,824 $ 145,349 $ 54,134 $ 35,258 $ 129,134 $ 69,873 $ 1,075,781 Non-performing 937 990 681 932 366 2,040 178 $ 6,124 Total other loans $ 425,146 $ 218,814 $ 146,030 $ 55,066 $ 35,624 $ 131,174 $ 70,051 $ 1,081,905 December 31, 2021 Term Loans at Amortized Cost Basis by Origination Year Revolving 2021 2020 2019 2018 2017 Prior Loans Total Residential First Liens Performing $ 86,224 $ 49,633 $ 22,262 $ 24,377 $ 26,437 $ 126,828 $ 3,061 $ 338,822 Non-performing — — 35 69 160 2,421 — $ 2,685 Subtotal $ 86,224 $ 49,633 $ 22,297 $ 24,446 $ 26,597 $ 129,249 $ 3,061 $ 341,507 Home Equity Performing $ 757 $ 9 $ 152 $ 719 $ 62 $ 1,332 $ 59,059 $ 62,090 Non-performing — 25 — — 3 57 — $ 85 Subtotal $ 757 $ 34 $ 152 $ 719 $ 65 $ 1,389 $ 59,059 $ 62,175 Junior Liens Performing $ 13,255 $ 10,189 $ 8,124 $ 7,888 $ 4,158 $ 5,554 $ 968 $ 50,136 Non-performing — 6 64 97 119 94 — $ 380 Subtotal $ 13,255 $ 10,195 $ 8,188 $ 7,985 $ 4,277 $ 5,648 $ 968 $ 50,516 Other Residential Performing $ 20,218 $ 6,665 $ 1,697 $ 662 $ 883 $ 1,092 $ — $ 31,217 Non-performing — — 55 43 — 27 — $ 125 Subtotal $ 20,218 $ 6,665 $ 1,752 $ 705 $ 883 $ 1,119 $ — $ 31,342 Consumer Motor Vehicle Performing $ 188,675 $ 155,156 $ 60,676 $ 23,367 $ 9,307 $ 2,384 $ — $ 439,565 Non-performing 199 373 191 109 43 23 — $ 938 Subtotal $ 188,874 $ 155,529 $ 60,867 $ 23,476 $ 9,350 $ 2,407 $ — $ 440,503 Other Consumer Performing $ 14,924 $ 8,225 $ 3,119 $ 948 $ 304 $ 1,121 $ 4,194 $ 32,835 Non-performing 342 181 107 35 18 3 2 $ 688 Subtotal $ 15,266 $ 8,406 $ 3,226 $ 983 $ 322 $ 1,124 $ 4,196 $ 33,523 Total Performing $ 324,053 $ 229,877 $ 96,030 $ 57,961 $ 41,151 $ 138,311 $ 67,282 $ 954,665 Non-performing 541 585 452 353 343 2,625 2 $ 4,901 Total other loans $ 324,594 $ 230,462 $ 96,482 $ 58,314 $ 41,494 $ 140,936 $ 67,284 $ 959,566 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Premises and Equipment | Premises and equipment are summarized as follows: December 31, (Dollar amounts in thousands) 2022 2021 Land $ 17,888 $ 18,612 Building and leasehold improvements 70,310 73,739 Furniture and equipment 46,669 44,839 134,867 137,190 Less accumulated depreciation (68,720) (67,668) TOTAL $ 66,147 $ 69,522 |
Schedule of Rent Commitments | (Dollar amounts in thousands) December 31, 2022 Twelve Months Ended December 31, 2023 $ 930 2024 838 2025 794 2026 713 2027 686 Thereafter 2,618 Total Future Minimum Lease Payments 6,579 Amounts Representing Interest (694) Present Value of Net Future Minimum Lease Payments $ 5,885 |
Properties And Equipment | |
Property, Plant and Equipment [Line Items] | |
Schedule of Rent Commitments | 2023 $ 929 2024 563 2025 479 2026 329 2027 228 Thereafter 680 $ 3,208 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of goodwill | Goodwill was as follows at year-end: 2022 2021 2020 Beginning of year $ 86,135 $ 78,592 $ 78,592 Acquired goodwill 850 7,543 — Impairment — — — End of year $ 86,985 $ 86,135 $ 78,592 |
Intangible Assets Subject to Amortization | Goodwill related to the acquisition of Hancock Bancorp, Inc. was increased by $850 thousand in 2022 due to adjustments to deferred tax assets related to the filing of the final Hancock Bancorp, Inc. tax return. Intangible assets subject to amortization at December 31, 2022 and 2021 are as follows: 2022 2021 Gross Accumulated Gross Accumulated (Dollar amounts in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 21,857 $ 15,143 $ 21,857 $ 13,833 $ 21,857 $ 15,143 $ 21,857 $ 13,833 |
Estimated Amortization Expense | Estimated amortization expense for the next five years is as follows: In thousands 2023 $ 1,128 2024 888 2025 786 2026 679 2027 590 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS | |
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years are as follows: (dollar amounts in thousands) 2023 $ 274,613 2024 68,801 2025 23,789 2026 16,832 2027 13,185 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHORT-TERM BORROWINGS | |
Schedule of short-term borrowings | A summary of the carrying value of the Corporation’s short-term borrowings at December 31, 2022 and 2021 is presented below: (Dollar amounts in thousands) 2022 2021 Federal Funds Purchased $ 3,000 $ 3,275 Repurchase Agreements 67,875 90,099 $ 70,875 $ 93,374 (Dollar amounts in thousands) 2022 2021 Average amount outstanding $ 84,004 $ 99,810 Maximum amount outstanding at a month end 96,728 117,337 Average interest rate during year 1.48 % 0.40 % Interest rate at year-end 0.27 % 0.08 % |
Schedule of collateral pledged to repurchase agreements by remaining maturity | Collateral pledged to repurchase agreements by remaining maturity are as follows: December 31, 2022 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 30 - 90 than 90 (Dollar amounts in thousands) continuous days days days Total Mortgage Backed Securities - Residential and Collateralized $ 63,335 $ — $ 4,175 $ 365 $ 67,875 December 31, 2021 Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 30 - 90 than 90 (Dollar amounts in thousands) continuous days days days Total Mortgage Backed Securities - Residential and Collateralized $ 83,576 $ — $ 5,816 $ 707 $ 90,099 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER BORROWINGS | |
Schedule of other borrowings | (Dollar amounts in thousands) 2022 2021 FHLB advances $ 9,589 $ 15,937 TOTAL $ 9,589 $ 15,937 |
Aggregate Minimum Annual Retirements | 2023 $ 1,008 2024 2,635 2025 5,946 2026 — 2027 — Thereafter — $ 9,589 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of Non-Interest Income | Years Ended December 31, (Dollar amounts in thousands) 2022 2021 Non-interest income Service charges on deposits and debit card fee income $ 27,540 $ 24,700 Asset management fees 5,155 5,255 Interchange income 559 438 Net gains on sales of loans (a) 1,994 5,003 Loan servicing fees (a) 1,554 1,849 Net gains/(losses) on sales of securities (a) 3 114 Other service charges and fees (a) 665 1,163 Other (b) 9,246 (c) 3,562 Total non-interest income $ 46,716 $ 42,084 (a) Not within the scope of ASC 606. (b) The Other category includes gains/(losses) on the sale of OREO for the years ended December 31, 2022 and December 31, 2021, totaling $60 thousand and $5 thousand, respectively, which is within the scope of ASC 606; the remaining balance is outside the scope of ASC 606. (c) Legal settlement totaling $4 million received in first quarter 2022, and $2.5 million from BOLI mortality payment in third quarter 2022. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Income Tax Expense | Income tax expense is summarized as follows: (Dollar amounts in thousands) 2022 2021 2020 Federal: Currently payable $ 11,016 $ 7,978 $ 7,886 Deferred 2,277 1,488 1,188 13,293 9,466 9,074 State: Currently payable 2,485 3,080 2,422 Deferred 873 80 196 3,358 3,160 2,618 TOTAL $ 16,651 $ 12,626 $ 11,692 |
Reconciliation of Income Tax Expense | The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized as follows: (Dollar amounts in thousands) 2022 2021 2020 Federal income taxes computed at the statutory rate $ 18,430 $ 13,779 $ 13,763 Add (deduct) tax effect of: Tax exempt income (3,439) (2,745) (2,643) ESOP dividend deduction (103) (101) (98) State tax, net of federal benefit 2,653 2,496 2,068 General business tax credits (674) (716) (1,648) Other, net (216) (87) 250 TOTAL $ 16,651 $ 12,626 $ 11,692 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2022 and 2021, are as follows: (Dollar amounts in thousands) 2022 2021 Deferred tax assets: Other than temporary impairment $ 752 $ 764 Net unrealized losses on retirement plans 5,614 6,033 Net unrealized loss on available for sale securities 39,242 — Loan loss provisions 10,054 12,476 Unfunded commitments 537 764 Deferred compensation 1,957 2,367 Compensated absences 709 739 Post-retirement benefits 1,051 1,284 Lease liability 1,572 1,597 Purchase accounting 114 1,333 Other 3,018 2,770 GROSS DEFERRED ASSETS 64,620 30,127 Deferred tax liabilities: Net unrealized gains on securities available-for-sale — (4,269) Depreciation (660) (1,611) Mortgage servicing rights (458) (515) Pensions (1,120) (1,647) Right-of-use asset (1,566) (1,591) Intangibles (6,093) (5,717) FHLB stock dividends (32) (32) Other (4,118) (4,113) GROSS DEFERRED LIABILITIES (14,047) (19,495) NET DEFERRED TAX ASSETS $ 50,573 $ 10,632 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollar amounts in thousands) 2022 2021 2020 Balance at January 1 $ 808 $ 867 $ 825 Additions based on tax positions related to the current year 59 9 114 Additions based on tax positions related to prior years — — — Reductions due to the statute of limitations (9) (68) (72) Balance at December 31 $ 858 $ 808 $ 867 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
Summary of Commitment and Contingent Liabilities | Commitment and contingent liabilities are summarized as follows at December 31: (Dollar amounts in thousands) 2022 2021 Home Equity $ 91,218 $ 92,346 Commercial Operating Lines 616,399 610,965 Other Commitments 112,410 120,111 TOTAL $ 820,027 $ 823,422 Commercial letters of credit $ 7,834 $ 7,042 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plan Disclosure | |
Schedule of Net Benefit Costs | Net periodic benefit cost and other amounts recognized in other comprehensive income included the following components: (Dollar amounts in thousands) 2022 2021 2020 Service cost - benefits earned $ 1,190 $ 1,355 $ 1,300 Interest cost on projected benefit obligation 2,826 2,632 3,116 Expected return on plan assets (4,910) (4,713) (4,198) Net amortization and deferral 1,259 2,072 1,968 Net periodic pension cost 365 1,346 2,186 Net loss (gain) during the period (5,323) (5,883) 3,188 Amortization of prior service cost — (1) (1) Amortization of unrecognized (gain) loss (1,259) (2,072) (1,967) Total recognized in other comprehensive (income) loss (6,582) (7,956) 1,220 Total recognized net periodic pension cost and other comprehensive income $ (6,217) $ (6,610) $ 3,406 |
Schedule of Defined Benefit Plans Disclosures | The information below sets forth the change in projected benefit obligation, reconciliation of plan assets, and the funded status of the Corporation’s retirement program. Actuarial present value of benefits is based on service to date and present pay levels. (Dollar amounts in thousands) 2022 2021 Change in benefit obligation: Benefit obligation at January 1 $ 106,496 $ 109,922 Service cost 1,190 1,355 Interest cost 2,826 2,632 Actuarial (gain) loss (21,350) (2,943) Benefits paid (5,584) (4,470) Benefit obligation at December 31 83,578 106,496 Reconciliation of fair value of plan assets: Fair value of plan assets at January 1 87,979 82,437 Actual return on plan assets (11,117) 7,654 Employer contributions 456 2,358 Benefits paid (5,584) (4,470) Fair value of plan assets at December 31 71,734 87,979 Funded status at December 31 (plan assets less benefit obligation) $ (11,844) $ (18,517) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2022 Change 12/31/2022 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ 13,155 $ (144,290) $ (131,135) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 2,519 (280) 2,239 Total unrealized gain (loss) on securities available-for-sale $ 15,674 $ (144,570) $ (128,896) Unrealized gain (loss) on retirement plans (18,100) 7,022 (11,078) TOTAL $ (2,426) $ (137,548) $ (139,974) Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2021 Change 12/31/2021 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ 31,810 $ (18,655) $ 13,155 Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 2,352 167 2,519 Total unrealized income (loss) on securities available-for-sale $ 34,162 $ (18,488) $ 15,674 Unrealized gain (loss) on retirement plans (24,398) 6,298 (18,100) TOTAL $ 9,764 $ (12,190) $ (2,426) |
Schedule of Assumptions Used | The accumulated benefit obligation for the defined benefit pension plan was $81.5 million and $102.4 million at year-end 2022 and 2021. Principal assumptions used to determine pension benefit obligation at year end: 2022 2021 Discount rate 5.02 % 2.83 % Rate of increase in compensation levels 3.00 3.00 Principal assumptions used to determine net periodic pension cost: 2022 2021 Discount rate 2.83 % 2.52 % Rate of increase in compensation levels 3.00 3.00 Expected long-term rate of return on plan assets 6.00 6.00 |
Schedule of Allocation of Plan Assets | Pension Plan ESOP Pension ESOP Target Target Percentage of Plan Percentage of Plan Allocation Allocation Assets at December 31, Assets at December 31, ASSET CATEGORY 2022 2022 2022 2021 2022 2021 Equity securities 25-75 % 95-99 % 63 % 63 % 99 % 98 % Debt securities 0-50 % 0-0 % 34 % 32 % — % — % Other 0-20 % 0-5 % 3 % 5 % 1 % 2 % TOTAL 100 % 100 % 100 % 100 % |
Schedule Of Fair Value Of Plan Assets | The fair value of the plan assets at December 31, 2022 and 2021, by asset category, is as follows: Fair Value Measurements at December 31, 2022 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Observable Identical Assets Inputs Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 52,319 $ 52,319 $ — $ — Debt securities 10,409 — 10,409 — Investment Funds 9,006 9,006 — — Total plan assets $ 71,734 $ 61,325 $ 10,409 $ — Fair Value Measurements at December 31, 2021 Using: Quoted Prices Significant in Active Other Significant Markets for Observable Observable Identical Assets Inputs Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 62,382 $ 62,382 $ — $ — Debt securities 10,102 — 10,102 — Investment Funds 15,495 15,495 — — Total plan assets $ 87,979 $ 77,877 $ 10,102 $ — |
Schedule of Expected Benefit Payments | Estimated Future Payments PENSION BENEFITS (Dollar amounts in thousands) 2023 $ 6,844 2024 7,034 2025 7,175 2026 7,384 2027 7,490 2028-2032 38,028 Estimated Future Payments (Dollar amounts on thousands) 2023 $ — 2024 374 2025 731 2026 711 2027 730 2028-2032 3,457 |
Schedule Of Weighted Average Assumptions | Weighted average assumptions at December 31: December 31, 2022 2021 Discount rate 5.02 % 2.83 % Initial weighted health care cost trend rate 5.00 % 5.00 % Ultimate health care cost trend rate 5.00 5.00 Year that the rate is assumed to stabilize and remain unchanged 2023 2022 |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income at December 31, 2022 and 2021 consist of: (Dollar amounts in thousands) 2022 2021 Net loss (gain) $ 14,469 $ 21,051 Prior service cost (credit) — — $ 14,469 $ 21,051 |
Postretirement Health Coverage | |
Defined Benefit Plan Disclosure | |
Schedule of Net Benefit Costs | December 31, (Dollar amounts in thousands) 2022 2021 Change in benefit obligation: Benefit obligation at January 1 $ 4,015 $ 4,147 Service cost 34 43 Interest cost 111 103 Plan participants' contributions 74 34 Actuarial (gain) (758) (53) Benefits paid (301) (259) Benefit obligation at December 31 $ 3,175 $ 4,015 Funded status at December 31 $ 3,175 $ 4,015 |
Schedule of Defined Benefit Plans Disclosures | Post-retirement health benefit expense included the following components: Years Ended December 31, (Dollar amounts in thousands) 2022 2021 2020 Service cost $ 34 $ 43 $ 38 Interest cost 111 103 125 Amortization of net actuarial loss (gain) — — — Net periodic benefit cost 145 146 163 Net loss (gain) during the period (758) (53) 238 Amortization of prior service cost — — — Total recognized in other comprehensive income (loss) (758) (53) 238 Total recognized net periodic benefit cost and other comprehensive income $ (613) $ 93 $ 401 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plan Disclosure | |
Schedule of Net Benefit Costs | (Dollar amounts in thousands) 2022 2021 2020 Net loss (gain) during the period $ (1,604) $ 54 $ 1,459 Amortization of prior service cost — — — Amortization of unrecognized (gain) loss (418) (441) (246) Total recognized in other comprehensive (income) loss $ (2,022) $ (387) $ 1,213 |
Schedule of Expected Benefit Payments | Estimated Future Payments (Dollar amounts in thousands) 2023 $ 245 2024 251 2025 247 2026 244 2027 244 2028-2032 1,171 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
STOCK BASED COMPENSATION | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | 2022 2021 Weighted Average Weighted Average Number Grant Date Number Grant Date (shares in thousands) Outstanding Fair Value Outstanding Fair Value Nonvested balance at January 1, 19,546 42.03 19,724 42.51 Granted during the year 18,679 45.35 20,016 41.81 Vested during the year (19,098) 43.19 (19,105) 42.27 Forfeited during the year — — (1,089) 42.51 Nonvested balance at December 31, 19,127 44.11 19,546 42.03 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of Accumulated Other Comprehensive Income | Unrealized gains and (Losses) on available- 2022 for-sale Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1, $ 15,674 $ (18,100) $ (2,426) Change in other comprehensive income (loss) before reclassification (144,568) 6,078 (138,490) Amounts reclassified from accumulated other comprehensive income (2) 944 942 Net current period other comprehensive income (loss) (144,570) 7,022 (137,548) Ending balance, December 31, $ (128,896) $ (11,078) $ (139,974) Unrealized gains and (Losses) on available- 2021 for-sale Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1, $ 34,162 $ (24,398) $ 9,764 Change in other comprehensive income (loss) before reclassification (18,403) 4,744 (13,659) Amounts reclassified from accumulated other comprehensive income (85) 1,554 1,469 Net current period other comprehensive income (loss) (18,488) 6,298 (12,190) Ending balance, December 31, $ 15,674 $ (18,100) $ (2,426) |
Schedule Of Accumulated Other Comprehensive Income Loss Other Than Temporary Impairment | Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2022 Change 12/31/2022 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ 13,155 $ (144,290) $ (131,135) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 2,519 (280) 2,239 Total unrealized gain (loss) on securities available-for-sale $ 15,674 $ (144,570) $ (128,896) Unrealized gain (loss) on retirement plans (18,100) 7,022 (11,078) TOTAL $ (2,426) $ (137,548) $ (139,974) Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2021 Change 12/31/2021 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ 31,810 $ (18,655) $ 13,155 Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 2,352 167 2,519 Total unrealized income (loss) on securities available-for-sale $ 34,162 $ (18,488) $ 15,674 Unrealized gain (loss) on retirement plans (24,398) 6,298 (18,100) TOTAL $ 9,764 $ (12,190) $ (2,426) |
Reclassification out of Accumulated Other Comprehensive Income | Year Ended December 31, 2022 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 3 Net securities gains (losses) on available-for-sale (1) Income tax expense securities $ 2 Net of tax Amortization of $ (1,259) (a) Salary and benefits retirement plan items 315 Income tax expense $ (944) Net of tax Total reclassifications for the period $ (942) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2021 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 114 Net securities gains (losses) on available-for-sale (29) Income tax expense securities $ 85 Net of tax Amortization of $ (2,072) (a) Salary and benefits retirement plan items 518 Income tax expense $ (1,554) Net of tax Total reclassifications for the period $ (1,469) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2020 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 233 Net securities gains (losses) on available-for-sale (58) Income tax expense securities $ 175 Net of tax Amortization of $ (1,967) (a) retirement plan items 492 Income tax expense $ (1,475) Net of tax Total reclassifications for the period $ (1,300) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details) . |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Schedule of lease cost | Year Ended (Dollar amounts in thousands) December 31, 2022 Operating lease cost $ 1,018 Short-term lease cost 200 Variable lease cost 11 Total lease cost $ 1,229 Other information: Cash paid for amounts included in the measurement of operating lease liabilities 985 Right-of-use assets obtained in exchange for new operating lease liabilities 59 |
Schedule of Future minimum payments for operating leases | (Dollar amounts in thousands) December 31, 2022 Twelve Months Ended December 31, 2023 $ 930 2024 838 2025 794 2026 713 2027 686 Thereafter 2,618 Total Future Minimum Lease Payments 6,579 Amounts Representing Interest (694) Present Value of Net Future Minimum Lease Payments $ 5,885 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY MATTERS | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2022 and 2021. To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollar amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital Corporation – 2022 $ 561,347 14.61 % $ 403,400 10.500 % N/A N/A Corporation – 2021 533,599 15.63 % 358,575 10.500 % N/A N/A First Financial Bank – 2022 498,246 13.14 % 398,179 10.500 % 379,219 10.00 % First Financial Bank – 2021 487,416 14.78 % 346,248 10.500 % 329,760 10.00 % Common equity tier I capital Corporation – 2022 $ 521,568 13.58 % $ 268,933 7.000 % N/A N/A Corporation – 2021 490,842 14.37 % 239,050 7.000 % N/A N/A First Financial Bank – 2022 458,467 12.09 % 265,453 7.000 % 246,492 6.50 % First Financial Bank – 2021 446,189 13.53 % 230,832 7.000 % 214,344 6.50 % Tier I risk-based capital Corporation – 2022 $ 521,568 13.58 % $ 326,562 8.500 % N/A N/A Corporation – 2021 490,842 14.37 % 290,275 8.500 % N/A N/A First Financial Bank – 2022 458,467 12.09 % 322,336 8.500 % 303,375 8.00 % First Financial Bank – 2021 446,189 13.53 % 280,296 8.500 % 263,808 8.00 % Tier I leverage capital Corporation – 2022 $ 521,568 10.78 % $ 193,476 4.00 % N/A N/A Corporation – 2021 490,842 9.83 % 199,702 4.00 % N/A N/A First Financial Bank – 2022 458,467 9.50 % 193,073 4.00 % 241,341 5.00 % First Financial Bank – 2021 446,189 9.18 % 194,405 4.00 % 243,006 5.00 % |
PARENT COMPANY CONDENSED FINA_2
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS | |
Schedule of Condensed Balance Sheet | CONDENSED BALANCE SHEETS December 31, (Dollar amounts in thousands) 2022 2021 ASSETS Cash deposits in affiliated banks $ 60,692 $ 13,844 Investments in subsidiaries 412,570 571,986 Land and headquarters building, net 9,116 4,423 Other 42,120 7,518 Total Assets $ 524,498 $ 597,771 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Dividends payable 8,912 7,952 Other liabilities 40,293 7,243 TOTAL LIABILITIES 49,205 15,195 Shareholders' Equity 475,293 582,576 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 524,498 $ 597,771 |
Schedule of Condensed Income Statement | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (Dollar amounts in thousands) 2022 2021 2020 Dividends from subsidiaries $ 94,048 $ 99,231 $ 31,069 Other income 1,254 746 1,054 Interest on borrowings — — (374) Other operating expenses (3,435) (2,611) (3,430) Income before income taxes and equity in undistributed earnings of subsidiaries 91,867 97,366 28,319 Income tax benefit 1,110 681 801 Income before equity in undistributed earnings of subsidiaries 92,977 98,047 29,120 Equity in undistributed earnings of subsidiaries (21,868) (45,060) 24,724 Net income $ 71,109 $ 52,987 $ 53,844 Comprehensive income (loss) $ (66,439) $ 40,797 $ 71,109 |
Schedule of Condensed Cash Flow Statement | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollar amounts in thousands) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 71,109 $ 52,987 $ 53,844 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 297 191 328 Equity in undistributed earnings 21,868 45,060 (24,724) Contribution of shares to ESOP 1,451 1,402 1,471 Restricted stock compensation 825 807 820 Increase (decrease) in other liabilities 33,050 435 6,127 (Increase) decrease in other assets (34,602) (1,518) (5,977) NET CASH FROM OPERATING ACTIVITIES 93,998 99,364 31,889 CASH FLOWS FROM INVESTING ACTIVITIES: (Increase) decrease in premises and equipment (4,990) — — Cash received (disbursed) from acquisitions — (31,348) — NET CASH FROM INVESTING ACTIVITIES (4,990) (31,348) — CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on borrowings — — (10,310) Purchase of treasury stock (27,701) (42,471) (9,220) Dividends paid (14,459) (14,181) (14,273) NET CASH FROM FINANCING ACTIVITES (42,160) (56,652) (33,803) NET (DECREASE) INCREASE IN CASH 46,848 11,364 (1,914) CASH, BEGINNING OF YEAR 13,844 2,480 4,394 CASH, END OF YEAR $ 60,692 $ 13,844 $ 2,480 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ — $ — $ 375 Income taxes $ 13,525 $ 15,025 $ 7,549 |
BUSINESS AND SIGNIFICANT ACCO_3
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) item segment subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment | ||||
Number of investment subsidiaries (subsidiary) | subsidiary | 2 | |||
Number of subsidiaries | subsidiary | 4 | |||
Number of branches entity operates (branches) | 78 | |||
Number of loan production offices | 5 | |||
Transfer to other real estate | $ | $ 570,000 | $ 43,000 | $ 567,000 | |
Impairment of goodwill | $ | $ 0 | |||
Repayment of deferred fees and interest in years | 10 years | |||
Expenses for deferred compensation | $ | $ 78,000 | 117,000 | 111,000 | |
Allowance for credit losses on unfunded commitments | $ | 2,100,000 | 3,000,000 | ||
Retained earnings | $ | 614,829,000 | 559,139,000 | ||
Compensation expense | $ | 0 | 0 | 0 | |
Deferred compensation liability, current | $ | $ 1,200,000 | 1,300,000 | ||
Incentive award, payment period | 15 years | |||
Compensation liability | $ | $ 4,800,000 | 6,000,000 | ||
Share Based Compensation, Short Term Portion, Payment Period | 75 days | |||
Vesting period | 3 years | |||
Share Based Compensation, Long-Term Portion, Payment Period | 75 days | |||
Officers' compensation expense | $ | $ 2,000,000 | 2,300,000 | 2,200,000 | |
Deferred compensation liability incentive plan | $ | $ 1,600,000 | 1,800,000 | ||
Likelihood of unfavorable settlement (percent) | 50% | |||
Number of reportable segments | segment | 1 | |||
Minimum | ||||
Property, Plant and Equipment | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Maximum | ||||
Property, Plant and Equipment | ||||
Finite-lived intangible asset, useful life | 12 years | |||
Furniture and Fixtures | Minimum | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, estimated useful lives | 3 | |||
Furniture and Fixtures | Maximum | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, estimated useful lives | 5 years | |||
Buildings And Leasehold Improvements | Minimum | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, estimated useful lives | 33 | |||
Buildings And Leasehold Improvements | Maximum | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, estimated useful lives | 39 years | |||
Vigo County | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 9 | |||
Daviess County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Clay County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 3 | |||
Greene County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Knox County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Parke County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Putnam County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Sullivan County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 3 | |||
Vanderburgh County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Vermillion County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 3 | |||
Champaign County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of loan production offices | 4 | |||
Clark County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Coles County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Crawford County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Franklin County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Jasper County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Lawrence County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Livingston County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Marion County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
McLean County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Richland County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Vermilion County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 6 | |||
Wayne County, Illinois | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Calloway County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Breckinridge County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Christian County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 3 | |||
Fulton County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Hancock County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Hopkins County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Marshall County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Todd County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Trigg County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Warren County, Kentucky | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 2 | |||
Cheatham County, Tennessee | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 3 | |||
Houston County, Tennessee | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Montgomery County, Tennessee | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 3 | |||
Hamilton County, Indiana | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Rutherford County, Tennessee | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
Williamson County, Tennessee | ||||
Property, Plant and Equipment | ||||
Number of branches entity operates (branches) | 1 | |||
First Financial Bank | ||||
Property, Plant and Equipment | ||||
Investments in subsidiaries | $ | $ 1,000,000 | |||
Service fees | ||||
Property, Plant and Equipment | ||||
Revenue within scope of ASC 606 | $ | $ 1,400,000 | $ 1,300,000 | $ 1,300,000 |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value of Derivatives as of Measurement Date (Level 2 Inputs) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value measurement | ||
Securities available-for-sale | $ 1,330,481 | $ 1,359,514 |
Fair Value | 1,330,481 | 1,359,514 |
U.S. Government agencies | ||
Fair value measurement | ||
Fair Value | 98,473 | 120,123 |
Mortgage Backed Securities - residential | ||
Fair value measurement | ||
Fair Value | 620,248 | 626,428 |
Mortgage Backed Securities - commercial | ||
Fair value measurement | ||
Fair Value | 9,677 | 15,671 |
Collateralized Mortgage Obligations | ||
Fair value measurement | ||
Fair Value | 203,485 | 175,005 |
State and municipal obligations | ||
Fair value measurement | ||
Fair Value | 360,153 | 380,098 |
Municipal taxable | ||
Fair value measurement | ||
Fair Value | 32,515 | 38,626 |
U.S. Treasury | ||
Fair value measurement | ||
Fair Value | 2,944 | 204 |
Collateralized debt obligations | ||
Fair value measurement | ||
Fair Value | 2,986 | 3,359 |
Level 1 | ||
Fair value measurement | ||
Fair Value | 0 | 0 |
Level 2 | ||
Fair value measurement | ||
Derivative Assets | 2,838 | 1,030 |
Derivative Liabilities | (2,838) | (1,030) |
Fair Value | 1,325,950 | 1,354,260 |
Level 2 | U.S. Government agencies | ||
Fair value measurement | ||
Fair Value | 98,473 | 120,123 |
Level 2 | Mortgage Backed Securities - residential | ||
Fair value measurement | ||
Fair Value | 620,248 | 626,428 |
Level 2 | Mortgage Backed Securities - commercial | ||
Fair value measurement | ||
Fair Value | 9,677 | 15,671 |
Level 2 | Collateralized Mortgage Obligations | ||
Fair value measurement | ||
Fair Value | 203,485 | 175,005 |
Level 2 | State and municipal obligations | ||
Fair value measurement | ||
Fair Value | 358,608 | 378,203 |
Level 2 | Municipal taxable | ||
Fair value measurement | ||
Fair Value | 32,515 | 38,626 |
Level 2 | U.S. Treasury | ||
Fair value measurement | ||
Fair Value | 2,944 | 204 |
Level 3 | ||
Fair value measurement | ||
Fair Value | 4,531 | 5,254 |
Level 3 | State and municipal obligations | ||
Fair value measurement | ||
Fair Value | 1,545 | 1,895 |
Level 3 | Collateralized debt obligations | ||
Fair value measurement | ||
Fair Value | $ 2,986 | $ 3,359 |
FAIR VALUES OF FINANCIAL INST_4
FAIR VALUES OF FINANCIAL INSTRUMENTS - Reconciliation and Income Statement Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total realized/unrealized gains or losses | ||
Beginning balance | $ 5,254 | $ 5,031 |
Total realized/unrealized gains or losses - Included in earnings | 0 | 0 |
Total realized/unrealized gains or losses - Included in other comprehensive income | $ (373) | $ 223 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent |
Transfers | $ 0 | $ 0 |
Settlements | (350) | 0 |
Ending balance | 4,531 | 5,254 |
State and municipal obligations | ||
Total realized/unrealized gains or losses | ||
Beginning balance | 1,895 | 1,895 |
Total realized/unrealized gains or losses - Included in earnings | 0 | 0 |
Total realized/unrealized gains or losses - Included in other comprehensive income | 0 | |
Transfers | 0 | 0 |
Settlements | (350) | 0 |
Ending balance | 1,545 | 1,895 |
Collateralized debt obligations | ||
Total realized/unrealized gains or losses | ||
Beginning balance | 3,359 | 3,136 |
Total realized/unrealized gains or losses - Included in earnings | 0 | 0 |
Total realized/unrealized gains or losses - Included in other comprehensive income | (373) | 223 |
Settlements | 0 | 0 |
Ending balance | 2,986 | 3,359 |
Other securities | ||
Total realized/unrealized gains or losses | ||
Beginning balance | 0 | |
Total realized/unrealized gains or losses - Included in earnings | 0 | 0 |
Settlements | $ 0 | 0 |
Ending balance | $ 0 |
FAIR VALUES OF FINANCIAL INST_5
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information About Recurring and Non-Recurring Level 3 (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0 | |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0.50 | |
state and municipal obligations | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Fair Value | $ 1,545 | $ 1,895 |
state and municipal obligations | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0.0373 | 0.0341 |
state and municipal obligations | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0.0444 | 0.0444 |
Collateralized debt obligations | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Fair Value | $ 2,986 | $ 3,359 |
Collateralized debt obligations | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0.0534 | |
State and municipal obligations | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0.0183 | |
Other Real Estate | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Fair Value | $ 337 | $ 108 |
Impaired Loans | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Fair Value | $ 4,477 | $ 12,839 |
Impaired Loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0 | 0 |
Impaired Loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Range of Inputs (percent) | 0.5000 | 0.5000 |
FAIR VALUES OF FINANCIAL INST_6
FAIR VALUES OF FINANCIAL INSTRUMENTS - Carrying Amount and Estimated Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying amount and estimated fair value of financial instruments | ||
Securities available-for-sale | $ 1,330,481 | $ 1,359,514 |
Securities available-for-sale | 1,330,481 | 1,359,514 |
Restricted stock | 15,378 | 16,200 |
Accrued interest receivable | 21,288 | 16,946 |
Deposits | (4,368,871) | (4,409,569) |
Level 1 | ||
Carrying amount and estimated fair value of financial instruments | ||
Cash and due from banks | 29,400 | 24,901 |
Securities available-for-sale | 0 | 0 |
Level 2 | ||
Carrying amount and estimated fair value of financial instruments | ||
Cash and due from banks | 193,117 | 663,126 |
Federal funds sold | 9,374 | 308 |
Securities available-for-sale | 1,325,950 | 1,354,260 |
Accrued interest receivable | 5,529 | 4,709 |
Deposits | (4,369,402) | (4,418,117) |
Short-term borrowings | (70,875) | (93,374) |
Other borrowings | (8,788) | (16,483) |
Accrued interest payable | (483) | (687) |
Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Securities available-for-sale | 4,531 | 5,254 |
Loans, net | 2,930,680 | 2,682,257 |
Accrued interest receivable | 15,759 | 12,237 |
Reported Value Measurement | ||
Carrying amount and estimated fair value of financial instruments | ||
Cash and due from banks | 222,517 | 688,027 |
Federal funds sold | 9,374 | 308 |
Securities available-for-sale | 1,330,481 | 1,359,514 |
Restricted stock | 15,378 | 16,200 |
Loans, net | 3,027,659 | 2,767,590 |
Accrued interest receivable | 21,288 | 16,946 |
Deposits | (4,368,871) | (4,409,569) |
Short-term borrowings | (70,875) | (93,374) |
Other borrowings | (9,589) | (15,937) |
Accrued interest payable | (483) | (687) |
Estimate of Fair Value Measurement | ||
Carrying amount and estimated fair value of financial instruments | ||
Cash and due from banks | 222,517 | 688,027 |
Federal funds sold | 9,374 | 308 |
Securities available-for-sale | 1,330,481 | 1,359,514 |
Loans, net | 2,930,680 | 2,682,257 |
Accrued interest receivable | 21,288 | 16,946 |
Deposits | (4,369,402) | (4,418,117) |
Short-term borrowings | (70,875) | (93,374) |
Other borrowings | (8,788) | (16,483) |
Accrued interest payable | $ (483) | $ (687) |
FAIR VALUES OF FINANCIAL INST_7
FAIR VALUES OF FINANCIAL INSTRUMENTS - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Carrying amount and estimated fair value of financial instruments | |||
Gain on sale of investments | $ 6 | $ 274 | $ 290 |
Fair value, assets, level 1 to level 2 transfers, amount | 0 | 0 | |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | |
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 | |
Fair value, liabilities, level 2 to level 1 transfers, amount | 0 | 0 | |
Unrealized gains and losses | 0 | 0 | $ 0 |
Other Real Estate Commercial loan | Level 3 | |||
Carrying amount and estimated fair value of financial instruments | |||
Fair Value | 39 | 68 | |
Other Real Estate Residential Loan | Level 3 | |||
Carrying amount and estimated fair value of financial instruments | |||
Fair Value | 298 | 40 | |
Impaired Loans | Level 3 | |||
Carrying amount and estimated fair value of financial instruments | |||
Fair Value | 4,477 | 12,839 | |
Other Real Estate | Level 3 | |||
Carrying amount and estimated fair value of financial instruments | |||
Fair Value | 337 | 108 | |
Assets fair value adjustment increase (decrease) | $ 25 | $ 0 | |
Discount rate | Minimum | |||
Carrying amount and estimated fair value of financial instruments | |||
Range of Inputs (percent) | 0 | ||
Discount rate | Minimum | Impaired Loans | |||
Carrying amount and estimated fair value of financial instruments | |||
Range of Inputs (percent) | 0 | 0 | |
Discount rate | Maximum | |||
Carrying amount and estimated fair value of financial instruments | |||
Range of Inputs (percent) | 0.50 | ||
Discount rate | Maximum | Impaired Loans | |||
Carrying amount and estimated fair value of financial instruments | |||
Range of Inputs (percent) | 0.5000 | 0.5000 |
RESTRICTIONS ON CASH AND DUE _2
RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
RESTRICTIONS ON CASH AND DUE FROM BANKS | ||
Cash Reserve Balance | $ 0 | $ 0 |
SECURITIES - Fair value of secu
SECURITIES - Fair value of securities available for sale and related unrealized gain and loss (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | $ 3,989 | $ 30,126 |
Unrealized Losses | (172,134) | (10,182) |
Securities available-for-sale | 1,330,481 | 1,359,514 |
Fair Value | 1,330,481 | 1,359,514 |
Amortized Cost | 1,498,626 | 1,339,570 |
U.S. Government agencies | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 24 | 2,688 |
Unrealized Losses | (11,777) | (741) |
Fair Value | 98,473 | 120,123 |
Amortized Cost | 110,226 | 118,176 |
Mortgage Backed Securities - residential | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 133 | 4,387 |
Unrealized Losses | (91,016) | (6,879) |
Fair Value | 620,248 | 626,428 |
Amortized Cost | 711,131 | 628,920 |
Mortgage Backed Securities - commercial | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 0 | 191 |
Unrealized Losses | (426) | 0 |
Fair Value | 9,677 | 15,671 |
Amortized Cost | 10,103 | 15,480 |
Collateralized Mortgage Obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 60 | 1,272 |
Unrealized Losses | (24,919) | (1,768) |
Fair Value | 203,485 | 175,005 |
Amortized Cost | 228,344 | 175,501 |
State and municipal obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 745 | 17,833 |
Unrealized Losses | (37,114) | (578) |
Fair Value | 360,153 | 380,098 |
Amortized Cost | 396,522 | 362,843 |
Municipal taxable | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 41 | 396 |
Unrealized Losses | (6,847) | (215) |
Fair Value | 32,515 | 38,626 |
Amortized Cost | 39,321 | 38,445 |
U.S. Treasury | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 0 | 0 |
Unrealized Losses | (35) | (1) |
Fair Value | 2,944 | 204 |
Amortized Cost | 2,979 | 205 |
Collateralized debt obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
Unrealized Gains | 2,986 | 3,359 |
Unrealized Losses | 0 | 0 |
Fair Value | 2,986 | 3,359 |
Amortized Cost | $ 0 | $ 0 |
SECURITIES - Gross gains and lo
SECURITIES - Gross gains and losses realized by the corporation on investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SECURITIES | |||
Proceeds | $ 1,565 | $ 12,886 | $ 36,696 |
Gross gains | 6 | 274 | 290 |
Gross losses | $ (3) | $ (160) | $ (57) |
SECURITIES - Contractual maturi
SECURITIES - Contractual maturities of debt securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 8,031 | |
Due after one but within five years | 45,010 | |
Due after five but within ten years | 88,684 | |
Due after ten years | 407,323 | |
Total of securities having specified maturity period | 549,048 | |
Mortgage-backed securities and collateralized mortgage obligations | 949,578 | |
Amortized Cost | 1,498,626 | $ 1,339,570 |
Fair Value | ||
Due in one year or less | 7,984 | |
Due after one but within five years | 43,566 | |
Due after five but within ten years | 83,055 | |
Due after ten years | 362,466 | |
Total of securities having specified maturities period | 497,071 | |
Mortgage-backed securities and collateralized mortgage obligations | 833,410 | |
TOTAL | 1,330,481 | 1,359,514 |
TOTAL | $ 1,330,481 | $ 1,359,514 |
SECURITIES - Securities Gross (
SECURITIES - Securities Gross (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Less Than 12 Months | ||
Fair Value | $ 692,782 | $ 628,487 |
Unrealized Losses | (63,580) | (8,121) |
More Than 12 Months | ||
Fair Value | 536,618 | 74,187 |
Unrealized Losses | (108,554) | (2,061) |
Total | ||
Fair Value | 1,229,400 | 702,674 |
Unrealized Losses | (172,134) | (10,182) |
U.S. Government agencies | ||
Less Than 12 Months | ||
Fair Value | 58,462 | |
Unrealized Losses | (4,034) | |
More Than 12 Months | ||
Fair Value | 38,959 | |
Unrealized Losses | (7,743) | |
Total | ||
Fair Value | 97,421 | |
Unrealized Losses | (11,777) | |
Mortgage Backed Securities - residential | ||
Less Than 12 Months | ||
Fair Value | 234,488 | 48,939 |
Unrealized Losses | (19,757) | (739) |
More Than 12 Months | ||
Fair Value | 379,520 | 146 |
Unrealized Losses | (71,259) | (2) |
Total | ||
Fair Value | 614,008 | 49,085 |
Unrealized Losses | (91,016) | (741) |
Mortgage Backed Securities - commercial | ||
Less Than 12 Months | ||
Fair Value | 9,677 | 436,726 |
Unrealized Losses | (426) | (5,281) |
More Than 12 Months | ||
Fair Value | 0 | 60,807 |
Unrealized Losses | 0 | (1,598) |
Total | ||
Fair Value | 9,677 | 497,533 |
Unrealized Losses | (426) | (6,879) |
Collateralized Mortgage Obligations | ||
Less Than 12 Months | ||
Fair Value | 135,135 | 73,530 |
Unrealized Losses | (11,331) | (1,327) |
More Than 12 Months | ||
Fair Value | 63,792 | 12,505 |
Unrealized Losses | (13,588) | (441) |
Total | ||
Fair Value | 198,927 | 86,035 |
Unrealized Losses | (24,919) | (1,768) |
State and municipal obligations | ||
Less Than 12 Months | ||
Fair Value | 233,439 | 54,040 |
Unrealized Losses | (24,291) | (578) |
More Than 12 Months | ||
Fair Value | 41,510 | 0 |
Unrealized Losses | (12,823) | 0 |
Total | ||
Fair Value | 274,949 | 54,040 |
Unrealized Losses | (37,114) | (578) |
Municipal taxable | ||
Less Than 12 Months | ||
Fair Value | 18,637 | 15,048 |
Unrealized Losses | (3,706) | (195) |
More Than 12 Months | ||
Fair Value | 12,837 | 729 |
Unrealized Losses | (3,141) | (20) |
Total | ||
Fair Value | 31,474 | 15,777 |
Unrealized Losses | (6,847) | (215) |
U.S. Treasury | ||
Less Than 12 Months | ||
Fair Value | 2,944 | 204 |
Unrealized Losses | (35) | (1) |
More Than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized Losses | 0 | 0 |
Total | ||
Fair Value | 2,944 | 204 |
Unrealized Losses | $ (35) | $ (1) |
SECURITIES - Rollforward of the
SECURITIES - Rollforward of the credit losses recognized in earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Rollforward of the credit losses recognized in earnings | |||
Beginning balance | $ 2,974 | $ 2,974 | $ 2,974 |
Reductions for securities called during the period | 0 | 0 | 0 |
Ending balance | $ 2,974 | $ 2,974 | $ 2,974 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 security | Dec. 31, 2022 USD ($) security segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Securities pledged as collateral | $ 946,300,000 | $ 814,700,000 | |||
Gain on sale of investments | 6,000 | 274,000 | $ 290,000 | ||
Loss on sale of investments | $ 3,000 | 160,000 | 57,000 | ||
Number of CDO other-than-temporary impaired | security | 3 | ||||
Number of CDO called | security | 1 | ||||
Cumulative OTTI charges | $ 2,974,000 | 2,974,000 | 2,974,000 | $ 2,974,000 | |
Number of investment securities segregation for impairment evaluation | segment | 2 | ||||
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale | $ 179,597,000 | $ 262,209,000 | $ 260,631,000 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 895 | ||||
Other Than Temporarily Impaired Cdo | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Contractual balance | $ 3,700,000 | ||||
Reduced balance | 3,000,000 | ||||
Interest payment received | 750,000 | ||||
Cumulative OTTI charges | 3,000,000 | ||||
Other comprehensive income net | $ 3,000,000 |
LOANS - Summary of loans (Detai
LOANS - Summary of loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 3,060,263 | $ 2,812,601 | ||
Deferred costs, net | 7,175 | 3,294 | ||
Allowance fore credit losses | (39,779) | (48,305) | $ (44,076) | $ (19,943) |
Loans, Net | 3,027,659 | 2,767,590 | ||
Commercial Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,798,260 | 1,674,066 | ||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 673,464 | 664,509 | ||
Consumer Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 588,539 | $ 474,026 |
LOANS - Additional Information
LOANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | $ 1.7 | $ 4.2 |
Loans serviced for others, not reported as assets | 518.1 | 542.8 |
Escrow deposit | 2.7 | 3 |
Fair value, based on valuations | $ 3.3 | $ 2.7 |
Servicing Liability, Fair Value, Change in Fair Value, Valuation Input, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Sale of Mortgage Loans | Gain (Loss) on Sale of Mortgage Loans |
Valuation allowance | $ 0 | $ 0 |
Assumptions used to estimate fair value, discount rate (percent) | 12.50% | 12.50% |
Assumptions used to estimate fair value, weighted average life | 8 years | |
Director and Executive Officer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 50.9 | |
Advances | 46.2 | |
Repayments | 45.7 | |
Related party loans | 5.3 | |
Ending Balance | $ 46.1 | $ 50.9 |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assumptions used to estimate fair value, prepayment speed (percent) | 238% | 453% |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assumptions used to estimate fair value, prepayment speed (percent) | 113% | 185% |
LOANS - Capitalized mortgage se
LOANS - Capitalized mortgage servicing rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Rights | |||
Beginning of year | $ 1,959 | $ 1,601 | $ 1,435 |
Additions | 489 | 1,094 | 956 |
Amortized to expense | (681) | (736) | (790) |
End of year | $ 1,767 | $ 1,959 | $ 1,601 |
ACQUISITIONS - Narratives (Deta
ACQUISITIONS - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Nov. 05, 2021 | Nov. 04, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 86,135 | $ 86,985 | $ 78,592 | $ 78,592 | ||
Hancock Bancorp, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Share price | $ 18.38 | |||||
Aggregate value of the transaction | $ 31,358 | $ 31,358 | ||||
Acquisition-related costs | $ 1,200 | |||||
Goodwill | 8,393 | $ 7,543 | ||||
Financial assets purchased | 12,900 | |||||
Contractual Receivables Gross | 18,300 | |||||
Contractual Receivables uncollectible | $ 4,400 |
ACQUISITIONS - Assets acquired
ACQUISITIONS - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Nov. 05, 2021 | Nov. 05, 2021 | Nov. 04, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities assumed | |||||||
Goodwill | $ 86,985 | $ 86,135 | $ 78,592 | $ 78,592 | |||
Hancock Bancorp, Inc | |||||||
Consideration | |||||||
Cash consideration | $ 31,358 | $ 31,358 | |||||
Fair value of total consideration transferred | 31,358 | 31,358 | |||||
Assets acquired | |||||||
Cash | 8,266 | $ 8,266 | 3,046 | ||||
Investment securities available-for-sale | 51,834 | 51,834 | 57,054 | ||||
Federal funds sold | 10,470 | 10,470 | 10,470 | ||||
Bank owned life insurance | 9,753 | 9,753 | 9,753 | ||||
Federal Home Loan Bank stock | 1,362 | 1,362 | 1,362 | ||||
Loans | 227,827 | 227,827 | 227,827 | ||||
Premises and equipment | 8,180 | 8,180 | 8,180 | ||||
Core deposit intangibles | 652 | 652 | 652 | ||||
Other assets | 3,717 | 3,717 | 4,567 | ||||
Total assets acquired | 322,061 | 322,061 | 322,911 | ||||
Liabilities assumed | |||||||
Deposits | 286,098 | 286,098 | 286,098 | ||||
FHLB advances | 11,042 | 11,042 | 11,042 | ||||
Other liabilities | 1,956 | 1,956 | 1,956 | ||||
Total liabilities assumed | 299,096 | 299,096 | 299,096 | ||||
Net identifiable assets | 22,965 | 22,965 | 23,815 | ||||
Goodwill | $ 8,393 | 8,393 | $ 7,543 | ||||
Measurement Period Adjustments - Assets acquired | |||||||
Cash | 5,220 | ||||||
Investment securities available-for-sale | (5,220) | ||||||
Other assets | (850) | ||||||
Total assets acquired | (850) | ||||||
Net identifiable assets | (850) | ||||||
Goodwill | $ 850 |
ACQUISITIONS - Pro forma Financ
ACQUISITIONS - Pro forma Financial Information (Details) - Hancock Bancorp, Inc - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 150,806 | $ 156,051 |
Net income | $ 53,714 | $ 55,958 |
Basic and diluted earnings per share | $ 4.07 | $ 4.08 |
Basic and diluted earnings per share | $ 4.07 | $ 4.08 |
ALLOWANCE FOR CREDIT LOSSES - A
ALLOWANCE FOR CREDIT LOSSES - Activity in allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 48,305 | $ 44,076 | $ 19,943 |
Impact of adopting ASC 326 | 17,084 | ||
PCD ACL on acquired loans | 4,410 | ||
Provision for credit losses | (2,025) | 2,466 | 10,528 |
Loans charged off | (15,706) | (8,216) | (8,396) |
Recoveries | 9,205 | 5,569 | 4,917 |
Ending Balance | 39,779 | 48,305 | 44,076 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 18,883 | 13,925 | 8,945 |
Impact of adopting ASC 326 | 6,843 | ||
PCD ACL on acquired loans | 4,410 | ||
Provision for credit losses | (4,079) | 1,637 | (1,622) |
Loans charged off | (3,917) | (2,158) | (1,097) |
Recoveries | 2,062 | 1,069 | 856 |
Ending Balance | 12,949 | 18,883 | 13,925 |
Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 18,316 | 19,142 | 1,302 |
Impact of adopting ASC 326 | 9,515 | ||
Provision for credit losses | (3,850) | (630) | 8,612 |
Loans charged off | (657) | (812) | (944) |
Recoveries | 759 | 616 | 657 |
Ending Balance | 14,568 | 18,316 | 19,142 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10,721 | 11,009 | 8,304 |
Impact of adopting ASC 326 | 2,118 | ||
Provision for credit losses | 6,131 | 1,074 | 3,538 |
Loans charged off | (11,132) | (5,246) | (6,355) |
Recoveries | 6,384 | 3,884 | 3,404 |
Ending Balance | 12,104 | 10,721 | 11,009 |
Unallocated | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 385 | 0 | 1,392 |
Impact of adopting ASC 326 | (1,392) | ||
PCD ACL on acquired loans | 0 | ||
Provision for credit losses | (227) | 385 | 0 |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 158 | 385 | $ 0 |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 18,883 | ||
Ending Balance | $ 18,883 |
ALLOWANCE FOR CREDIT LOSSES - R
ALLOWANCE FOR CREDIT LOSSES - Recorded Investments in Nonperforming Loans (Details) - Nonperforming Loans - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | $ 1,157 | $ 543 |
Non-accrual | 11,554 | 9,590 |
Nonaccrual | 2,461 | 4,593 |
Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 114 | 14 |
Non-accrual | 2,137 | 1,950 |
Nonaccrual | 254 | 1,662 |
Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 461 | 15 |
Nonaccrual | 0 | 0 |
Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 2,064 | 2,911 |
Nonaccrual | 2,052 | 2,898 |
Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 186 | 111 |
Nonaccrual | 155 | 0 |
All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 26 | 4 |
Nonaccrual | 0 | 0 |
First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 666 | 346 |
Non-accrual | 1,380 | 2,339 |
Nonaccrual | 0 | 33 |
Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 180 | 0 |
Non-accrual | 133 | 84 |
Nonaccrual | 0 | 0 |
Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 197 | 89 |
Non-accrual | 256 | 294 |
Nonaccrual | 0 | 0 |
Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 1,468 | 225 |
Nonaccrual | 0 | 0 |
All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 478 | 107 |
Nonaccrual | 0 | 0 |
Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 94 |
Non-accrual | 2,549 | 864 |
Nonaccrual | 0 | 0 |
All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 |
Non-accrual | 416 | 686 |
Nonaccrual | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES - L
ALLOWANCE FOR CREDIT LOSSES - Loans Modified as Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
Beginning Balance | $ 4,799 | $ 4,206 | $ 4,194 |
Added | 501 | 1,300 | 996 |
Disposed | (679) | ||
Charged Off | (50) | (111) | (164) |
Payments | (768) | (596) | (820) |
Ending Balance | 3,803 | 4,799 | 4,206 |
Commercial | |||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
Beginning Balance | 407 | 0 | 11 |
Added | 305 | 407 | 0 |
Disposed | 0 | ||
Charged Off | 0 | 0 | 0 |
Payments | (84) | 0 | (11) |
Ending Balance | 628 | 407 | 0 |
Residential | |||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
Beginning Balance | 3,686 | 3,589 | 3,485 |
Added | 128 | 491 | 692 |
Charged Off | (50) | (29) | (6) |
Payments | (589) | (365) | (582) |
Ending Balance | 3,175 | 3,686 | 3,589 |
Consumer | |||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
Beginning Balance | 706 | 617 | 698 |
Added | 68 | 402 | 304 |
Disposed | (679) | ||
Charged Off | (82) | (158) | |
Payments | $ (95) | (231) | (227) |
Ending Balance | $ 706 | $ 617 |
ALLOWANCE FOR CREDIT LOSSES -_2
ALLOWANCE FOR CREDIT LOSSES - Amortized cost basis of collateral dependent loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | $ 13,920 | $ 28,506 |
Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 156 | 720 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 1,978,358 | 1,853,035 |
Commercial | Commercial & Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 675,323 | 694,944 |
Commercial | Commercial & Industrial | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 4,613 | 17,734 |
Commercial | Commercial & Industrial | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 1 | 720 |
Commercial | Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 125,375 | 139,068 |
Commercial | Farmland | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 3,289 | 3,669 |
Commercial | Non Farm, Non Residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 386,542 | 360,558 |
Commercial | Non Farm, Non Residential | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 5,123 | 6,135 |
Commercial | Agriculture | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 135,500 | 140,233 |
Commercial | Agriculture | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 155 | |
Commercial | All Other Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 475,520 | 339,263 |
Commercial | Multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 180,098 | 178,969 |
Residential | First Liens | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 346,972 | 341,507 |
Residential | First Liens | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 33 | |
Residential | Home Equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 64,119 | 62,175 |
Residential | Junior Liens | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 56,836 | 50,516 |
Residential | Multifamily | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 935 | |
Residential | All Other Residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 25,439 | 31,342 |
Residential | All Other Residential | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 895 | |
Consumer | Motor Vehicle | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | 555,302 | 440,503 |
Consumer | All Other Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable | $ 33,237 | $ 33,523 |
ALLOWANCE FOR CREDIT LOSSES -_3
ALLOWANCE FOR CREDIT LOSSES - Aging of the Recorded Investment in Loans by Past Due Category and Class of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | $ 3,075,228 | $ 2,823,969 |
Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 677,522 | 697,083 |
Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 127,610 | 141,246 |
Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 387,416 | 361,236 |
Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 137,682 | 141,903 |
All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 478,442 | 340,466 |
First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 347,916 | 342,379 |
Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 64,340 | 62,298 |
Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 56,976 | 50,630 |
Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 180,705 | 179,337 |
All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 25,523 | 31,418 |
Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 557,717 | 442,319 |
All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 33,379 | 33,654 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 24,387 | 15,178 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,698 | 1,132 |
Financial Asset, 30 to 59 Days Past Due [Member] | Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 112 | 57 |
Financial Asset, 30 to 59 Days Past Due [Member] | Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 274 | 62 |
Financial Asset, 30 to 59 Days Past Due [Member] | Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 90 | |
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 333 | 390 |
Financial Asset, 30 to 59 Days Past Due [Member] | First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 4,528 | 4,686 |
Financial Asset, 30 to 59 Days Past Due [Member] | Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 305 | 131 |
Financial Asset, 30 to 59 Days Past Due [Member] | Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 213 | 179 |
Financial Asset, 30 to 59 Days Past Due [Member] | Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 317 | 342 |
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,115 | 284 |
Financial Asset, 30 to 59 Days Past Due [Member] | Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 15,151 | 7,633 |
Financial Asset, 30 to 59 Days Past Due [Member] | All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 341 | 192 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 5,629 | 2,833 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 529 | 388 |
Financial Asset, 60 to 89 Days Past Due [Member] | Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 34 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,231 | 42 |
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financial Asset, 60 to 89 Days Past Due [Member] | First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,203 | 680 |
Financial Asset, 60 to 89 Days Past Due [Member] | Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 144 | 24 |
Financial Asset, 60 to 89 Days Past Due [Member] | Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 69 | 120 |
Financial Asset, 60 to 89 Days Past Due [Member] | Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 83 | 146 |
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 350 | 291 |
Financial Asset, 60 to 89 Days Past Due [Member] | Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,930 | 1,105 |
Financial Asset, 60 to 89 Days Past Due [Member] | All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 56 | 37 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 3,397 | 3,479 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 726 | 1,614 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 89 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 14 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,054 | 949 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 276 | 58 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 327 | 283 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 985 | 486 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 15 | 0 |
Financial Asset, Past Due | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 33,413 | 21,490 |
Financial Asset, Past Due | Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 2,953 | 3,134 |
Financial Asset, Past Due | Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 112 | 57 |
Financial Asset, Past Due | Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 308 | 62 |
Financial Asset, Past Due | Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,231 | 221 |
Financial Asset, Past Due | All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 347 | 390 |
Financial Asset, Past Due | First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 6,785 | 6,315 |
Financial Asset, Past Due | Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 725 | 213 |
Financial Asset, Past Due | Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 609 | 582 |
Financial Asset, Past Due | Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 400 | 488 |
Financial Asset, Past Due | All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 1,465 | 575 |
Financial Asset, Past Due | Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 18,066 | 9,224 |
Financial Asset, Past Due | All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 412 | 229 |
Financial Asset, Not Past Due | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 3,041,815 | 2,802,479 |
Financial Asset, Not Past Due | Commercial & Industrial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 674,569 | 693,949 |
Financial Asset, Not Past Due | Farmland | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 127,498 | 141,189 |
Financial Asset, Not Past Due | Non Farm, Non Residential | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 387,108 | 361,174 |
Financial Asset, Not Past Due | Agriculture | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 136,451 | 141,682 |
Financial Asset, Not Past Due | All Other Commercial | Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 478,095 | 340,076 |
Financial Asset, Not Past Due | First Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 341,131 | 336,064 |
Financial Asset, Not Past Due | Home Equity | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 63,615 | 62,085 |
Financial Asset, Not Past Due | Junior Liens | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 56,367 | 50,048 |
Financial Asset, Not Past Due | Multifamily | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 180,305 | 178,849 |
Financial Asset, Not Past Due | All Other Residential | Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 24,058 | 30,843 |
Financial Asset, Not Past Due | Motor Vehicle | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | 539,651 | 433,095 |
Financial Asset, Not Past Due | All Other Consumer | Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Financing Receivable Recorded Investment | $ 32,967 | $ 33,425 |
ALLOWANCE FOR CREDIT LOSSES -_4
ALLOWANCE FOR CREDIT LOSSES - Recorded Investment of Commercial Loan Portfolio by Risk Category (Details ) - Commercial - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Analysis of risk category of loans by class of loans | ||
Current year | $ 499,652 | $ 438,046 |
Prior year | 374,316 | 268,791 |
Two years before current year | 253,771 | 185,345 |
Three years before current year | 124,874 | 145,077 |
Four years before current year | 111,374 | 174,994 |
Prior | 438,014 | 423,148 |
Revolving Loans | 176,357 | 217,634 |
Total Loans | 1,978,358 | 1,853,035 |
Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 173,014 | 196,804 |
Prior year | 139,881 | 74,170 |
Two years before current year | 62,947 | 83,816 |
Three years before current year | 58,203 | 51,430 |
Four years before current year | 31,893 | 40,516 |
Prior | 107,719 | 126,484 |
Revolving Loans | 101,666 | 121,724 |
Total Loans | 675,323 | 694,944 |
Farmland | ||
Analysis of risk category of loans by class of loans | ||
Current year | 16,261 | 29,128 |
Prior year | 22,530 | 13,695 |
Two years before current year | 10,864 | 14,025 |
Three years before current year | 10,928 | 13,572 |
Four years before current year | 10,689 | 11,949 |
Prior | 53,763 | 55,281 |
Revolving Loans | 340 | 1,418 |
Total Loans | 125,375 | 139,068 |
Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Current year | 102,728 | 81,203 |
Prior year | 76,046 | 37,971 |
Two years before current year | 33,910 | 26,729 |
Three years before current year | 21,030 | 32,957 |
Four years before current year | 31,438 | 58,120 |
Prior | 118,415 | 113,030 |
Revolving Loans | 2,975 | 10,548 |
Total Loans | 386,542 | 360,558 |
Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Current year | 13,245 | 14,536 |
Prior year | 9,067 | 10,526 |
Two years before current year | 8,093 | 11,482 |
Three years before current year | 8,710 | 2,640 |
Four years before current year | 3,213 | 5,516 |
Prior | 27,494 | 16,511 |
Revolving Loans | 65,678 | 79,022 |
Total Loans | 135,500 | 140,233 |
All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 143,980 | 77,982 |
Prior year | 91,720 | 69,117 |
Two years before current year | 90,845 | 33,256 |
Three years before current year | 19,269 | 37,007 |
Four years before current year | 29,172 | 53,479 |
Prior | 94,932 | 64,934 |
Revolving Loans | 5,602 | 3,488 |
Total Loans | 475,520 | 339,263 |
Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Current year | 50,424 | 38,393 |
Prior year | 35,072 | 63,312 |
Two years before current year | 47,112 | 16,037 |
Three years before current year | 6,734 | 7,471 |
Four years before current year | 4,969 | 5,414 |
Prior | 35,691 | 46,908 |
Revolving Loans | 96 | 1,434 |
Total Loans | 180,098 | 178,969 |
Pass | ||
Analysis of risk category of loans by class of loans | ||
Current year | 489,819 | 399,955 |
Prior year | 359,611 | 264,117 |
Two years before current year | 244,888 | 177,898 |
Three years before current year | 117,657 | 133,013 |
Four years before current year | 104,403 | 167,301 |
Prior | 396,572 | 370,144 |
Revolving Loans | 163,520 | 197,419 |
Total Loans | 1,876,470 | 1,709,847 |
Pass | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 163,479 | 163,588 |
Prior year | 128,012 | 71,271 |
Two years before current year | 56,830 | 80,668 |
Three years before current year | 54,208 | 40,441 |
Four years before current year | 26,514 | 37,739 |
Prior | 99,522 | 113,887 |
Revolving Loans | 92,110 | 111,594 |
Total Loans | 620,675 | 619,188 |
Pass | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Current year | 16,261 | 25,673 |
Prior year | 22,530 | 12,060 |
Two years before current year | 9,244 | 13,111 |
Three years before current year | 9,438 | 13,246 |
Four years before current year | 10,352 | 11,049 |
Prior | 48,847 | 49,158 |
Revolving Loans | 340 | 1,418 |
Total Loans | 117,012 | 125,715 |
Pass | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Current year | 102,629 | 81,203 |
Prior year | 75,011 | 37,971 |
Two years before current year | 33,214 | 24,716 |
Three years before current year | 19,596 | 32,775 |
Four years before current year | 31,438 | 54,732 |
Prior | 111,586 | 97,241 |
Revolving Loans | 2,975 | 10,548 |
Total Loans | 376,449 | 339,186 |
Pass | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Current year | 13,085 | 14,426 |
Prior year | 9,028 | 10,386 |
Two years before current year | 8,015 | 10,135 |
Three years before current year | 8,422 | 2,585 |
Four years before current year | 1,987 | 4,932 |
Prior | 26,729 | 15,755 |
Revolving Loans | 62,397 | 68,937 |
Total Loans | 129,663 | 127,156 |
Pass | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 143,941 | 77,821 |
Prior year | 91,615 | 69,117 |
Two years before current year | 90,845 | 33,231 |
Three years before current year | 19,259 | 36,495 |
Four years before current year | 29,143 | 53,479 |
Prior | 82,535 | 58,819 |
Revolving Loans | 5,602 | 3,488 |
Total Loans | 462,940 | 332,450 |
Pass | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Current year | 50,424 | 37,244 |
Prior year | 33,415 | 63,312 |
Two years before current year | 46,740 | 16,037 |
Three years before current year | 6,734 | 7,471 |
Four years before current year | 4,969 | 5,370 |
Prior | 27,353 | 35,284 |
Revolving Loans | 96 | 1,434 |
Total Loans | 169,731 | 166,152 |
Special Mention | ||
Analysis of risk category of loans by class of loans | ||
Current year | 2,282 | 7,561 |
Prior year | 11,306 | 1,584 |
Two years before current year | 4,980 | 4,858 |
Three years before current year | 4,388 | 5,557 |
Four years before current year | 2,061 | 3,090 |
Prior | 24,472 | 26,425 |
Revolving Loans | 2,972 | 12,739 |
Total Loans | 52,461 | 61,814 |
Special Mention | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 2,071 | 7,561 |
Prior year | 9,738 | 393 |
Two years before current year | 3,434 | 1,841 |
Three years before current year | 2,572 | 5,375 |
Four years before current year | 2,061 | 263 |
Prior | 1,848 | 4,523 |
Revolving Loans | 453 | 7,482 |
Total Loans | 22,177 | 27,438 |
Special Mention | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | 1,191 |
Two years before current year | 1,164 | 914 |
Three years before current year | 882 | |
Four years before current year | 0 | 342 |
Prior | 2,930 | 3,247 |
Revolving Loans | 0 | |
Total Loans | 4,976 | 5,694 |
Special Mention | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Current year | 99 | |
Prior year | 1,035 | |
Two years before current year | 0 | 1,103 |
Three years before current year | 921 | 182 |
Four years before current year | 0 | 1,948 |
Prior | 279 | 1,996 |
Revolving Loans | 0 | |
Total Loans | 2,334 | 5,229 |
Special Mention | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Current year | 89 | |
Prior year | 0 | |
Two years before current year | 10 | 1,000 |
Three years before current year | 3 | |
Four years before current year | 0 | 537 |
Prior | 709 | 271 |
Revolving Loans | 2,519 | 5,257 |
Total Loans | 3,330 | 7,065 |
Special Mention | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 23 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 10 | |
Four years before current year | 0 | |
Prior | 11,911 | 6,106 |
Revolving Loans | 0 | |
Total Loans | 11,944 | 6,106 |
Special Mention | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 533 | |
Two years before current year | 372 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 6,795 | 10,282 |
Revolving Loans | 0 | |
Total Loans | 7,700 | 10,282 |
Substandard | ||
Analysis of risk category of loans by class of loans | ||
Current year | 423 | 8,048 |
Prior year | 746 | 1,360 |
Two years before current year | 2,317 | 1,499 |
Three years before current year | 2,299 | 5,949 |
Four years before current year | 4,707 | 4,369 |
Prior | 15,856 | 25,653 |
Revolving Loans | 9,865 | 7,476 |
Total Loans | 36,213 | 54,354 |
Substandard | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 423 | 4,521 |
Prior year | 723 | 896 |
Two years before current year | 1,861 | 348 |
Three years before current year | 954 | 5,148 |
Four years before current year | 3,169 | 2,325 |
Prior | 6,264 | 7,934 |
Revolving Loans | 9,103 | 2,648 |
Total Loans | 22,497 | 23,820 |
Substandard | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | 3,455 |
Prior year | 0 | 444 |
Two years before current year | 456 | |
Three years before current year | 608 | 326 |
Four years before current year | 337 | 558 |
Prior | 1,969 | 2,876 |
Revolving Loans | 0 | |
Total Loans | 3,370 | 7,659 |
Substandard | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | 910 |
Three years before current year | 513 | |
Four years before current year | 0 | 1,440 |
Prior | 6,281 | 13,391 |
Revolving Loans | 0 | |
Total Loans | 6,794 | 15,741 |
Substandard | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | 20 |
Two years before current year | 0 | 216 |
Three years before current year | 224 | |
Four years before current year | 1,201 | 46 |
Prior | 56 | 485 |
Revolving Loans | 762 | 4,828 |
Total Loans | 2,243 | 5,595 |
Substandard | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | 72 |
Prior year | 23 | |
Two years before current year | 0 | 25 |
Three years before current year | 0 | 475 |
Four years before current year | 0 | |
Prior | 6 | 9 |
Revolving Loans | 0 | |
Total Loans | 29 | 581 |
Substandard | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 1,280 | 958 |
Revolving Loans | 0 | |
Total Loans | 1,280 | 958 |
Doubtful | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Doubtful | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Doubtful | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Doubtful | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Doubtful | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Doubtful | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Doubtful | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 0 | |
Not Rated | ||
Analysis of risk category of loans by class of loans | ||
Current year | 7,128 | 22,482 |
Prior year | 2,653 | 1,730 |
Two years before current year | 1,586 | 1,090 |
Three years before current year | 530 | 558 |
Four years before current year | 203 | 234 |
Prior | 1,114 | 926 |
Revolving Loans | 0 | |
Total Loans | 13,214 | 27,020 |
Not Rated | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 7,041 | 21,134 |
Prior year | 1,408 | 1,610 |
Two years before current year | 822 | 959 |
Three years before current year | 469 | 466 |
Four years before current year | 149 | 189 |
Prior | 85 | 140 |
Revolving Loans | 0 | |
Total Loans | 9,974 | 24,498 |
Not Rated | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 17 | |
Revolving Loans | 0 | |
Total Loans | 17 | |
Not Rated | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | |
Prior year | 0 | |
Two years before current year | 696 | |
Three years before current year | 0 | |
Four years before current year | 0 | |
Prior | 269 | 402 |
Revolving Loans | 0 | |
Total Loans | 965 | 402 |
Not Rated | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Current year | 71 | 110 |
Prior year | 39 | 120 |
Two years before current year | 68 | 131 |
Three years before current year | 61 | 55 |
Four years before current year | 25 | 1 |
Prior | 0 | |
Revolving Loans | 0 | |
Total Loans | 264 | 417 |
Not Rated | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Current year | 16 | 89 |
Prior year | 82 | |
Two years before current year | 0 | |
Three years before current year | 0 | 37 |
Four years before current year | 29 | |
Prior | 480 | |
Revolving Loans | 0 | |
Total Loans | 607 | 126 |
Not Rated | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Current year | 0 | 1,149 |
Prior year | 1,124 | |
Two years before current year | 0 | |
Three years before current year | 0 | |
Four years before current year | 0 | 44 |
Prior | 263 | 384 |
Revolving Loans | 0 | |
Total Loans | $ 1,387 | $ 1,577 |
ALLOWANCE FOR CREDIT LOSSES - O
ALLOWANCE FOR CREDIT LOSSES - Other loan portfolio by risk category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonperforming loans past due | 90 days | |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | $ 424,209 | $ 324,053 |
Prior year | 217,824 | 229,877 |
Two years before current year | 145,349 | 96,030 |
Three years before current year | 54,134 | 57,961 |
Four years before current year | 35,258 | 41,151 |
Prior | 129,134 | 138,311 |
Revolving Loans | 69,873 | 67,282 |
Total Loans | 1,075,781 | 954,665 |
Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 937 | 541 |
Prior year | 990 | 585 |
Two years before current year | 681 | 452 |
Three years before current year | 932 | 353 |
Four years before current year | 366 | 343 |
Prior | 2,040 | 2,625 |
Revolving Loans | 178 | 2 |
Total Loans | 6,124 | 4,901 |
Total other loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 425,146 | 324,594 |
Prior year | 218,814 | 230,462 |
Two years before current year | 146,030 | 96,482 |
Three years before current year | 55,066 | 58,314 |
Four years before current year | 35,624 | 41,494 |
Prior | 131,174 | 140,936 |
Revolving Loans | 70,051 | 67,284 |
Total Loans | 1,081,905 | 959,566 |
Residential | First Liens | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 71,713 | 86,224 |
Prior year | 70,197 | 49,633 |
Two years before current year | 45,080 | 22,297 |
Three years before current year | 17,109 | 24,446 |
Four years before current year | 20,358 | 26,597 |
Prior | 119,270 | 129,249 |
Revolving Loans | 3,245 | 3,061 |
Total Loans | 346,972 | 341,507 |
Residential | First Liens | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 71,607 | 86,224 |
Prior year | 70,197 | 49,633 |
Two years before current year | 45,080 | 22,262 |
Three years before current year | 16,968 | 24,377 |
Four years before current year | 20,258 | 26,437 |
Prior | 117,488 | 126,828 |
Revolving Loans | 3,245 | 3,061 |
Total Loans | 344,843 | 338,822 |
Residential | First Liens | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 106 | |
Two years before current year | 35 | |
Three years before current year | 141 | 69 |
Four years before current year | 100 | 160 |
Prior | 1,782 | 2,421 |
Total Loans | 2,129 | 2,685 |
Residential | Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,995 | 757 |
Prior year | 943 | 34 |
Two years before current year | 86 | 152 |
Three years before current year | 115 | 719 |
Four years before current year | 69 | 65 |
Prior | 860 | 1,389 |
Revolving Loans | 60,051 | 59,059 |
Total Loans | 64,119 | 62,175 |
Residential | Home Equity | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,995 | 757 |
Prior year | 943 | 9 |
Two years before current year | 8 | 152 |
Three years before current year | 115 | 719 |
Four years before current year | 55 | 62 |
Prior | 820 | 1,332 |
Revolving Loans | 59,875 | 59,059 |
Total Loans | 63,811 | 62,090 |
Residential | Home Equity | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior year | 25 | |
Two years before current year | 78 | |
Four years before current year | 14 | 3 |
Prior | 40 | 57 |
Revolving Loans | 176 | |
Total Loans | 308 | 85 |
Residential | Junior Liens | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 19,074 | 13,255 |
Prior year | 10,489 | 10,195 |
Two years before current year | 7,584 | 8,188 |
Three years before current year | 5,920 | 7,985 |
Four years before current year | 5,505 | 4,277 |
Prior | 6,336 | 5,648 |
Revolving Loans | 1,928 | 968 |
Total Loans | 56,836 | 50,516 |
Residential | Junior Liens | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 19,074 | 13,255 |
Prior year | 10,485 | 10,189 |
Two years before current year | 7,507 | 8,124 |
Three years before current year | 5,830 | 7,888 |
Four years before current year | 5,366 | 4,158 |
Prior | 6,195 | 5,554 |
Revolving Loans | 1,928 | 968 |
Total Loans | 56,385 | 50,136 |
Residential | Junior Liens | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior year | 4 | 6 |
Two years before current year | 77 | 64 |
Three years before current year | 90 | 97 |
Four years before current year | 139 | 119 |
Prior | 141 | 94 |
Total Loans | 451 | 380 |
Residential | All Other Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 11,542 | 20,218 |
Prior year | 9,923 | 6,665 |
Two years before current year | 501 | 1,752 |
Three years before current year | 1,340 | 705 |
Four years before current year | 533 | 883 |
Prior | 1,600 | 1,119 |
Total Loans | 25,439 | 31,342 |
Residential | All Other Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 11,542 | 20,218 |
Prior year | 9,923 | 6,665 |
Two years before current year | 501 | 1,697 |
Three years before current year | 915 | 662 |
Four years before current year | 498 | 883 |
Prior | 1,582 | 1,092 |
Total Loans | 24,961 | 31,217 |
Residential | All Other Residential | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Two years before current year | 55 | |
Three years before current year | 425 | 43 |
Four years before current year | 35 | |
Prior | 18 | 27 |
Total Loans | 478 | 125 |
Consumer | Motor Vehicle | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 307,378 | 188,874 |
Prior year | 119,101 | 155,529 |
Two years before current year | 88,581 | 60,867 |
Three years before current year | 29,241 | 23,476 |
Four years before current year | 8,718 | 9,350 |
Prior | 2,277 | 2,407 |
Revolving Loans | 6 | |
Total Loans | 555,302 | 440,503 |
Consumer | Motor Vehicle | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 306,565 | 188,675 |
Prior year | 118,362 | 155,156 |
Two years before current year | 88,144 | 60,676 |
Three years before current year | 29,004 | 23,367 |
Four years before current year | 8,652 | 9,307 |
Prior | 2,230 | 2,384 |
Revolving Loans | 6 | |
Total Loans | 552,963 | 439,565 |
Consumer | Motor Vehicle | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 813 | 199 |
Prior year | 739 | 373 |
Two years before current year | 437 | 191 |
Three years before current year | 237 | 109 |
Four years before current year | 66 | 43 |
Prior | 47 | 23 |
Total Loans | 2,339 | 938 |
Consumer | All Other Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 13,444 | 15,266 |
Prior year | 8,161 | 8,406 |
Two years before current year | 4,198 | 3,226 |
Three years before current year | 1,341 | 983 |
Four years before current year | 441 | 322 |
Prior | 831 | 1,124 |
Revolving Loans | 4,821 | 4,196 |
Total Loans | 33,237 | 33,523 |
Consumer | All Other Consumer | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 13,426 | 14,924 |
Prior year | 7,914 | 8,225 |
Two years before current year | 4,109 | 3,119 |
Three years before current year | 1,302 | 948 |
Four years before current year | 429 | 304 |
Prior | 819 | 1,121 |
Revolving Loans | 4,819 | 4,194 |
Total Loans | 32,818 | 32,835 |
Consumer | All Other Consumer | Nonperforming Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 18 | 342 |
Prior year | 247 | 181 |
Two years before current year | 89 | 107 |
Three years before current year | 39 | 35 |
Four years before current year | 12 | 18 |
Prior | 12 | 3 |
Revolving Loans | 2 | 2 |
Total Loans | $ 419 | $ 688 |
ALLOWANCE FOR CREDIT LOSSES -_5
ALLOWANCE FOR CREDIT LOSSES - Additional Information (Details) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) loan | Dec. 31, 2022 USD ($) | |
Allowance for loan losses | ||||
Number of modifications resulted in the permanent reduction | 0 | 0 | 0 | |
Number of loans related to TDR | loan | 8 | 39 | 42 | |
Loans charged off within 12 months of the modification | $ 0 | |||
Specific reserves allocated to troubled debt restructuring | $ 0 | $ 0 | $ 0 | 0 |
Number of loans modified due to COVID-19 | loan | 1,225 | |||
Loans modified due to COVID-19 | $ 253,000 | |||
Number of loans resumed normal scheduled payments | loan | 961 | |||
Loans resumed normal scheduled payments | $ 210,000 | |||
Number of loans provided additional payment relief | loan | 204 | |||
Number of Loans under Original Payment Relief Plan | loan | 1 | |||
Original payment relief plan, amount | $ 17,000 | |||
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk | $ 100 | $ 100 | ||
Commercial | ||||
Allowance for loan losses | ||||
Number of loans provided additional payment relief | loan | 9 | |||
Additional payment relief | $ 36,000 | |||
Minimum | ||||
Allowance for loan losses | ||||
Loan modification, reduction of stated interest rate | 12 months | |||
Loan modification, extension of maturity date | 12 months | |||
Maximum | ||||
Allowance for loan losses | ||||
Loan modification, reduction of stated interest rate | 5 years | |||
Loan modification, extension of maturity date | 10 years |
PREMISES AND EQUIPMENT - Schedu
PREMISES AND EQUIPMENT - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
PREMISES AND EQUIPMENT | ||
Land | $ 17,888 | $ 18,612 |
Building and leasehold improvements | 70,310 | 73,739 |
Furniture and equipment | 46,669 | 44,839 |
Property Plant And Equipment Gross | 134,867 | 137,190 |
Less accumulated depreciation | (68,720) | (67,668) |
TOTAL | $ 66,147 | $ 69,522 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |||
Depreciation | $ 4.8 | $ 4.6 | $ 4.4 |
Rent expense | $ 1.2 | $ 1.4 | $ 1.1 |
PREMISES AND EQUIPMENT - Sche_2
PREMISES AND EQUIPMENT - Schedule of Rent Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Property, Plant and Equipment [Line Items] | |
Total Future Minimum Lease Payments | $ 6,579 |
Properties And Equipment | |
Property, Plant and Equipment [Line Items] | |
2023 | 929 |
2024 | 563 |
2025 | 479 |
2026 | 329 |
2027 | 228 |
Thereafter | 680 |
Total Future Minimum Lease Payments | $ 3,208 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
GOODWILL AND INTANGIBLE ASSETS | |||
Amortization of intangible assets | $ 1.3 | $ 1.6 | $ 1.7 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | |||
Beginning of year | $ 86,135 | $ 78,592 | |
Acquired goodwill | 850 | 7,543 | |
Impairment | $ 0 | ||
End of year | 86,985 | $ 86,135 | |
Hancock Bancorp, Inc | |||
Goodwill | |||
Adjustments to deferred tax assets related to the filing of the final Hancock Bancorp, Inc. tax return | $ 850 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets | ||
Gross Amount | $ 21,857 | $ 21,857 |
Accumulated Amortization | 15,143 | 13,833 |
Core deposit intangible | ||
Finite-Lived Intangible Assets | ||
Gross Amount | 21,857 | 21,857 |
Accumulated Amortization | $ 15,143 | $ 13,833 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
GOODWILL AND INTANGIBLE ASSETS | |
2023 | $ 1,128 |
2024 | 888 |
2025 | 786 |
2026 | 679 |
2027 | $ 590 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Time deposits that meet or exceed the FDIC Insurance limit | $ 50,600 | $ 74,000 |
2023 | 274,613 | |
2024 | 68,801 | |
2025 | 23,789 | |
2026 | 16,832 | |
2027 | $ 13,185 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
SHORT-TERM BORROWINGS | ||
Federal Funds Purchased | $ 3,000 | $ 3,275 |
Repurchase Agreements | 67,875 | 90,099 |
Short-term borrowings | $ 70,875 | $ 93,374 |
SHORT-TERM BORROWINGS - Repurch
SHORT-TERM BORROWINGS - Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Repurchase Agreements | ||
Repurchase Agreements | $ 67,875 | $ 90,099 |
Average amount outstanding | 84,004 | 99,810 |
Maximum amount outstanding at a month end | $ 96,728 | $ 117,337 |
Average interest rate during year (percent) | 1.48% | 0.40% |
Interest rate at year-end (percent) | 0.27% | 0.08% |
Maturity over 90 days | ||
Repurchase Agreements | ||
Repurchase Agreements | $ 365 | $ 707 |
Maturity 30 to 90 Days | ||
Repurchase Agreements | ||
Repurchase Agreements | 4,175 | 5,816 |
Maturity up to 30 days | ||
Repurchase Agreements | ||
Repurchase Agreements | 0 | |
Maturity Overnight | ||
Repurchase Agreements | ||
Repurchase Agreements | $ 63,335 | $ 83,576 |
OTHER BORROWINGS - Schedule of
OTHER BORROWINGS - Schedule of Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER BORROWINGS | ||
FHLB advances | $ 9,589 | $ 15,937 |
TOTAL | $ 9,589 | $ 15,937 |
OTHER BORROWINGS - Aggregate Mi
OTHER BORROWINGS - Aggregate Minimum Annual Retirements (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
OTHER BORROWINGS | |
2023 | $ 1,008 |
2024 | 2,635 |
2025 | 5,946 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Long-term Debt | $ 9,589 |
OTHER BORROWINGS (Details)
OTHER BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
FHLB advances | $ 9,589 | $ 15,937 |
General debt obligations, collateral pledged | 40,300 | $ 58,500 |
General debt obligations, maximum amount available | $ 246,400 | |
Minimum | ||
Debt Instrument | ||
Branch of FHLB bank, interest rate (percent) | 0.68% | 0.68% |
Maximum | ||
Debt Instrument | ||
Branch of FHLB bank, interest rate (percent) | 1.70% | 3.32% |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contracts with Customers | |||
Net gains on sales of loans | $ 1,994 | $ 5,003 | |
Loan servicing fees | 1,554 | 1,849 | $ 1,715 |
Net gains/(losses) on sales of securities | 3 | 114 | |
Other service charges and fees | 665 | 1,163 | |
Other | 9,246 | 3,562 | |
TOTAL NON-INTEREST INCOME | 46,716 | 42,084 | $ 42,476 |
Legal settlement received | 4,000 | ||
BOLI mortality payment | 2,500 | ||
Service charges on deposits and debit card fee income | |||
Revenue from Contracts with Customers | |||
Revenue within scope of ASC 606 | 27,540 | 24,700 | |
Asset management fees | |||
Revenue from Contracts with Customers | |||
Revenue within scope of ASC 606 | 5,155 | 5,255 | |
Interchange income | |||
Revenue from Contracts with Customers | |||
Revenue within scope of ASC 606 | 559 | 438 | |
Other, | |||
Revenue from Contracts with Customers | |||
Revenue within scope of ASC 606 | $ 60 | $ 5 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal: | |||
Currently payable | $ 11,016 | $ 7,978 | $ 7,886 |
Deferred | 2,277 | 1,488 | 1,188 |
Federal income tax expense (benefit), continuing operations | 13,293 | 9,466 | 9,074 |
State: | |||
Currently payable | 2,485 | 3,080 | 2,422 |
Deferred | 873 | 80 | 196 |
State and local income tax expense (benefit), continuing operations | 3,358 | 3,160 | 2,618 |
TOTAL | $ 16,651 | $ 12,626 | $ 11,692 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Federal income taxes computed at the statutory rate | $ 18,430 | $ 13,779 | $ 13,763 |
Add (deduct) tax effect of: | |||
Tax exempt income | (3,439) | (2,745) | (2,643) |
ESOP dividend deduction | (103) | (101) | (98) |
State tax, net of federal benefit | 2,653 | 2,496 | 2,068 |
General business tax credits | (674) | (716) | (1,648) |
Other, net | (216) | (87) | 250 |
TOTAL | $ 16,651 | $ 12,626 | $ 11,692 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Other than temporary impairment | $ 752 | $ 764 |
Net unrealized losses on retirement plans | 5,614 | 6,033 |
Net loss on available for sale securities | 39,242 | |
Loan loss provisions | 10,054 | 12,476 |
Unfunded commitments | 537 | 764 |
Deferred compensation | 1,957 | 2,367 |
Compensated absences | 709 | 739 |
Post-retirement benefits | 1,051 | 1,284 |
Lease liability | 1,572 | 1,597 |
Purchase accounting | 114 | 1,333 |
Other | 3,018 | 2,770 |
GROSS DEFERRED ASSETS | 64,620 | 30,127 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available-for-sale | (4,269) | |
Depreciation | (660) | (1,611) |
Mortgage servicing rights | (458) | (515) |
Pensions | (1,120) | (1,647) |
Right-of-use asset | (1,566) | (1,591) |
Intangibles | (6,093) | (5,717) |
FHLB stock dividends | (32) | (32) |
Other | (4,118) | (4,113) |
GROSS DEFERRED LIABILITIES | (14,047) | (19,495) |
NET DEFERRED TAX ASSETS | $ 50,573 | $ 10,632 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1 | $ 808 | $ 867 | $ 825 |
Additions based on tax positions related to the current year | 59 | 9 | 114 |
Additions based on tax positions related to prior years | 0 | 0 | 0 |
Reductions due to the statute of limitations | (9) | (68) | (72) |
Balance at December 31 | $ 858 | $ 808 | $ 867 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||
Federal statutory income tax rate (percent) | 21% | |||
Part of unrecognized tax benefits | $ 858 | $ 808 | $ 867 | $ 825 |
Increase (decrease) in interest and penalities | 18 | 21 | 11 | |
Income tax examination, penalties and interest accrued | $ 103 | $ 85 | $ 64 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK - Summary of Commitment and Contingent Liabilities (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||||
Other Commitments | $ 112,410,000 | $ 120,111,000 | ||
TOTAL | 820,027,000 | 823,422,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Loans and Leases Receivable, Commitments, Fixed Rates | $ 0.0545 | $ 0.0325 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loans and Leases Receivable, Commitments, Fixed Rates | $ 0.0900 | $ 0.0600 | ||
Home Equity | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | 91,218,000 | 92,346,000 | ||
Commercial Operating Lines | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | 616,399,000 | 610,965,000 | ||
Commercial letters of credit | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | $ 7,834,000 | $ 7,042,000 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | ||
Notional amount of interest rate derivatives | $ 39.9 | $ 32.9 |
Gain (loss) on interest rate derivative instruments not designated as hedging instruments | $ 2.8 | $ 1 |
RETIREMENT PLANS - Schedule of
RETIREMENT PLANS - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RETIREMENT PLANS | |||
Service cost - benefits earned | $ 1,190 | $ 1,355 | $ 1,300 |
Interest cost on projected benefit obligation | $ 2,826 | $ 2,632 | $ 3,116 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Labor and Related Expense | Labor and Related Expense | Labor and Related Expense |
Expected return on plan assets | $ (4,910) | $ (4,713) | $ (4,198) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Labor and Related Expense | Labor and Related Expense | Labor and Related Expense |
Net amortization and deferral | $ 1,259 | $ 2,072 | $ 1,968 |
Net periodic pension cost | 365 | 1,346 | 2,186 |
Net loss (gain) during the period | (5,323) | (5,883) | 3,188 |
Amortization of prior service cost | 1 | 1 | |
Amortization of unrecognized (gain) loss | (1,259) | (2,072) | (1,967) |
Total recognized in other comprehensive (income) loss | 6,582 | 7,956 | (1,220) |
Total recognized net periodic pension cost and other comprehensive income | $ (6,217) | $ (6,610) | $ 3,406 |
RETIREMENT PLANS - Schedule o_2
RETIREMENT PLANS - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | |||
Benefit obligation at January 1 | $ 106,496 | $ 109,922 | |
Service cost | 1,190 | 1,355 | $ 1,300 |
Interest cost | 2,826 | 2,632 | 3,116 |
Actuarial (gain) loss | (21,350) | (2,943) | |
Benefits paid | (5,584) | (4,470) | |
Benefit obligation at December 31 | 83,578 | 106,496 | 109,922 |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at January 1 | 87,979 | 82,437 | |
Actual return on plan assets | (11,117) | 7,654 | |
Employer contributions | 456 | 2,358 | |
Fair value of plan assets at December 31 | 71,734 | 87,979 | $ 82,437 |
Funded status at December 31 (plan assets less benefit obligation) | $ (11,844) | $ (18,517) |
RETIREMENT PLANS - Schedule o_3
RETIREMENT PLANS - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RETIREMENT PLANS | ||
Net loss (gain) | $ 14,469 | $ 21,051 |
Pension and other postretirement benefit plans, adjustment | $ 14,469 | $ 21,051 |
RETIREMENT PLANS - Schedule o_4
RETIREMENT PLANS - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Principal assumptions used (benefit obligation): | ||
Discount rate (percent) | 5.02% | 2.83% |
Rate of increase in compensation levels (percent) | 3% | 3% |
Principal assumptions used (net periodic benefit): | ||
Discount rate | 2.83% | 2.52% |
Rate of increase in compensation levels | 3% | 3% |
Expected long-term rate of return on plan assets (percent) | 6% | 6% |
RETIREMENT PLANS - Schedule o_5
RETIREMENT PLANS - Schedule of Allocation of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 100% | 100% |
Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 100% | 100% |
Other securities | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 3% | 5% |
Other securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 1% | 2% |
Equity Securities | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 63% | 63% |
Equity Securities | Minimum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 25% | |
Equity Securities | Maximum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 75% | |
Equity Securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 99% | 98% |
Equity Securities | Employee Stock Ownership Plan | Minimum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 95% | |
Equity Securities | Employee Stock Ownership Plan | Maximum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 99% | |
Debt securities | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 34% | 32% |
Debt securities | Minimum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 0% | |
Debt securities | Maximum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 50% | |
Debt securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 0% | 0% |
Debt securities | Employee Stock Ownership Plan | Minimum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 0% | |
Debt securities | Employee Stock Ownership Plan | Maximum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 0% | |
Other Security Investments | Minimum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 0% | |
Other Security Investments | Maximum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 20% | |
Other Security Investments | Employee Stock Ownership Plan | Minimum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 0% | |
Other Security Investments | Employee Stock Ownership Plan | Maximum | ||
Defined Benefit Plan Disclosure | ||
Percentage of plan assets (percent) | 5% |
RETIREMENT PLANS - Schedule O_6
RETIREMENT PLANS - Schedule Of Fair Value Of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 71,734 | $ 87,979 | $ 82,437 |
Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 61,325 | 77,877 | |
Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 10,409 | 10,102 | |
Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 52,319 | 62,382 | |
Equity Securities | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 52,319 | 62,382 | |
Equity Securities | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 10,409 | 10,102 | |
Debt securities | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Debt securities | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 10,409 | 10,102 | |
Debt securities | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Investment Funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 9,006 | 15,495 | |
Investment Funds | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 9,006 | 15,495 | |
Investment Funds | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Investment Funds | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | $ 0 |
RETIREMENT PLANS - Schedule o_7
RETIREMENT PLANS - Schedule of Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
RETIREMENT PLANS | |
2023 | $ 6,844 |
2024 | 7,034 |
2025 | 7,175 |
2026 | 7,384 |
2027 | 7,490 |
2028-2032 | $ 38,028 |
RETIREMENT PLANS - Supplemental
RETIREMENT PLANS - Supplemental employee retirement plan defined benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |||
Net loss (gain) during the period | $ (5,323) | $ (5,883) | $ 3,188 |
Amortization of prior service cost | (1) | (1) | |
Amortization of unrecognized (gain) loss | (1,259) | (2,072) | (1,967) |
Total recognized in other comprehensive income (loss) | (6,582) | (7,956) | 1,220 |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |||
Net loss (gain) during the period | (1,604) | 54 | 1,459 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of unrecognized (gain) loss | (418) | (441) | (246) |
Total recognized in other comprehensive income (loss) | $ (2,022) | $ (387) | $ 1,213 |
RETIREMENT PLANS - Schedule o_8
RETIREMENT PLANS - Schedule of Expected Benefit Payments Post Retirement (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |
2023 | $ 6,844 |
2024 | 7,034 |
2025 | 7,175 |
2026 | 7,384 |
2027 | 7,490 |
2028-2032 | 38,028 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |
2023 | 0 |
2024 | 374 |
2025 | 731 |
2026 | 711 |
2027 | 730 |
2028-2032 | $ 3,457 |
RETIREMENT PLANS - Schedule o_9
RETIREMENT PLANS - Schedule of post-retirement benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | |||
Benefit obligation at January 1 | $ 106,496 | $ 109,922 | |
Service cost | 1,190 | 1,355 | $ 1,300 |
Interest cost | 2,826 | 2,632 | 3,116 |
Actuarial (gain) loss | (21,350) | (2,943) | |
Benefit obligation at December 31 | 83,578 | 106,496 | 109,922 |
Funded status at December 31 | (11,844) | (18,517) | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | 4,015 | 4,147 | |
Service cost | 34 | 43 | |
Interest cost | 111 | 103 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 74 | 34 | |
Actuarial (gain) loss | (758) | (53) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 301 | 259 | |
Benefit obligation at December 31 | 3,175 | 4,015 | $ 4,147 |
Funded status at December 31 | $ 3,175 | $ 4,015 |
RETIREMENT PLANS - Schedule _10
RETIREMENT PLANS - Schedule Of Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RETIREMENT PLANS | ||
Discount rate (percent) | 5.02% | 2.83% |
Initial weighted health care cost trend rate (percent) | 5.00 | 5.00 |
Ultimate health care cost trend rate (percent) | 5% | 5% |
Year that the rate is assumed to stabilize and remain unchanged (percent) | 2023 | 2022 |
RETIREMENT PLANS - Schedule _11
RETIREMENT PLANS - Schedule of post-retirement health benefit expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure | |||
Service cost | $ 1,190 | $ 1,355 | $ 1,300 |
Interest cost | 2,826 | 2,632 | 3,116 |
Recognized actuarial loss | (21,350) | (2,943) | |
Net periodic pension cost | 365 | 1,346 | 2,186 |
Net loss (gain) during the period | (5,323) | (5,883) | 3,188 |
Amortization of prior service cost | (1) | (1) | |
Total recognized in other comprehensive income (loss) | (6,582) | (7,956) | 1,220 |
Total recognized net periodic pension cost and other comprehensive income | (6,217) | (6,610) | 3,406 |
Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure | |||
Service cost | 34 | 43 | 38 |
Interest cost | 111 | 103 | 125 |
Amortization of transition obligation | 0 | 0 | 0 |
Net periodic pension cost | 145 | 146 | 163 |
Net loss (gain) during the period | (758) | (53) | 238 |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (758) | (53) | 238 |
Total recognized net periodic pension cost and other comprehensive income | $ (613) | $ 93 | $ 401 |
RETIREMENT PLANS - Schedule _12
RETIREMENT PLANS - Schedule of Other Postretirement Benefit Plans Disclosures (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |
2023 | $ 6,844 |
2024 | 7,034 |
2025 | 7,175 |
2026 | 7,384 |
2027 | 7,490 |
2028-2032 | 38,028 |
Postretirement Health Coverage | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | |
2023 | 245 |
2024 | 251 |
2025 | 247 |
2026 | 244 |
2027 | 244 |
2028-2032 | $ 1,171 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 100% | 100% | |
Employer contributions | $ 456 | $ 2,358 | |
Cash contributions to ESOP | (1,450) | (1,400) | $ (1,470) |
Cash contributions to ESOP for employees no longer participating in plan | 1,100 | 1,100 | 1,200 |
Pension plans with accumulated benefit obligations in excess of plan assets, aggregate accumulated benefit obligation | 81,500 | 102,400 | |
Pension and other postretirement defined benefit plans, liabilities | 7,500 | 8,800 | |
Accumulated other comprehensive income/(loss) | (139,974) | (2,426) | 9,764 |
First Financial Corporation Common Stock | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan assets equity securities | $ 17,200 | $ 18,100 | |
Percentage of plan assets (percent) | 24% | 21% | |
Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 63% | 63% | |
Debt securities | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 34% | 32% | |
Other securities | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 3% | 5% | |
Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Employer contributions | $ 126 | $ 2,050 | 4,440 |
Expected contributions to pension plan in 2014 | $ 0 | ||
Employee Stock Ownership Plan | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 100% | 100% | |
Cash contributions to ESOP | $ (642) | ||
Employee Stock Ownership Plan | First Financial Corporation Common Stock | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan assets equity securities | $ 7,800 | $ 7,200 | |
Employee Stock Ownership Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 99% | 98% | |
Employee Stock Ownership Plan | Debt securities | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 0% | 0% | |
Employee Stock Ownership Plan | Other securities | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan percentage of plan assets | 1% | 2% | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Pension expense | $ 751 | $ 748 | 539 |
Accumulated other comprehensive income (loss), after tax | 1,200 | 3,200 | |
Accumulated other comprehensive income/(loss) | (546) | (212) | |
Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure | |||
Expected contributions to pension plan in 2014 | 245 | ||
Pension expense | 300 | 259 | |
Amortization of transition obligations (assets) | $ 0 | $ 0 | $ 0 |
STOCK BASED COMPENSATION - Shar
STOCK BASED COMPENSATION - Share based compensation arrangement (Details) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shares Outstanding | ||
Nonvested balance at January 1 (shares) | 19,546 | 19,724 |
Granted during the year (shares) | 18,679 | 20,016 |
Vested during the year (shares) | (19,098) | (19,105) |
Forfeited during the year (shares) | (1,089) | |
Novested balance at December 31 (shares) | 19,127 | 19,546 |
Weighted Average Exercise Price | ||
Nonvested balance at January 1 | $ 42.03 | $ 42.51 |
Granted during the year (price per share) | 45.35 | 41.81 |
Vested during the year (price per share) | 43.19 | 42.27 |
Forfeited during the year (price per share) | 42.51 | |
Nonvested balance at December 31 | $ 44.11 | $ 42.03 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Apr. 20, 2011 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 21, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Compensation expense | $ 825 | $ 807 | $ 820 | ||
Stock Incentive Plan 2011 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved for future issuance | 700,000 | ||||
Number of shares awarded | 245,598 | 18,679 | 21,159 | ||
Number of additional shares authorized (shares) | 360,162 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares awarded | 18,679,000 | 20,016,000 | |||
Vesting period | 3 years | ||||
Total compensation cost not yet recognized, stock options | $ 844 | $ 821 | |||
Total compensation cost not yet recognized, period for recognition | 1 year 6 months | ||||
Options, vested in period, fair value | $ 880 | $ 865 | |||
Restricted Stock | First Anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price of common stock (percent) | 33% | ||||
Restricted Stock | Second Anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price of common stock (percent) | 33% | ||||
Restricted Stock | Third Anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price of common stock (percent) | 34% | ||||
Amended Plan 2011 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved for future issuance | 400,000 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ (2,426) | $ 9,764 |
Change in other comprehensive income (loss) before reclassification | (138,490) | (13,659) |
Amounts reclassified from accumulated other comprehensive income | 942 | 1,469 |
Net current period other comprehensive income (loss) | (137,548) | (12,190) |
Ending balance | (139,974) | (2,426) |
Unrealized gains and (Losses) on available- for-sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 15,674 | 34,162 |
Change in other comprehensive income (loss) before reclassification | (144,568) | (18,403) |
Amounts reclassified from accumulated other comprehensive income | (2) | (85) |
Net current period other comprehensive income (loss) | (144,570) | (18,488) |
Ending balance | (128,896) | 15,674 |
Retirement plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (18,100) | (24,398) |
Change in other comprehensive income (loss) before reclassification | 6,078 | 4,744 |
Amounts reclassified from accumulated other comprehensive income | 944 | 1,554 |
Net current period other comprehensive income (loss) | 7,022 | 6,298 |
Ending balance | $ (11,078) | $ (18,100) |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ (2,426) | $ 9,764 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (137,548) | (12,190) |
Ending balance | (139,974) | (2,426) |
Unrealized gains and (Losses) on available- for-sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 15,674 | 34,162 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (144,570) | (18,488) |
Ending balance | (128,896) | 15,674 |
Unrealized gains (losses) on securities available-for-sale without other than temporary impairment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 13,155 | 31,810 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (144,290) | (18,655) |
Ending balance | (131,135) | 13,155 |
Unrealized gains (losses) on securities available-for-sale with other than temporary impairment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 2,519 | 2,352 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (280) | 167 |
Ending balance | 2,239 | 2,519 |
Retirement plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (18,100) | (24,398) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 7,022 | 6,298 |
Ending balance | $ (11,078) | $ (18,100) |
OTHER COMPREHENSIVE INCOME (L_5
OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net securities gains (losses) | $ 3 | $ 114 | $ 233 |
Income tax expense | (16,651) | (12,626) | (11,692) |
NET INCOME | 71,109 | 52,987 | 53,844 |
Amount reclassified from accumulated other comprehensive income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
NET INCOME | (942) | (1,469) | (1,300) |
Unrealized gains and (Losses) on available- for-sale Securities | Amount reclassified from accumulated other comprehensive income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net securities gains (losses) | 3 | 114 | 233 |
Income tax expense | (1) | (29) | (58) |
NET INCOME | 2 | 85 | 175 |
Retirement plans | Amount reclassified from accumulated other comprehensive income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Change in funded status of post retirement benefits | (1,259) | (2,072) | (1,967) |
Income tax expense | 315 | 518 | 492 |
NET INCOME | $ (944) | $ (1,554) | $ (1,475) |
LEASES (Details)
LEASES (Details) | Dec. 31, 2022 USD ($) |
LEASES | |
Operating lease liabilities | $ 5,885,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
Operating lease right-of-use assets | $ 5,840,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets |
Weighted average remaining lease term for operating leases | 9 years 7 months 6 days |
Weighted average discount rate | 2.18% |
LEASES - Lease cost (Details)
LEASES - Lease cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
LEASES | |
Operating lease cost | $ 1,018 |
Short-term lease cost | 200 |
Variable lease cost | 11 |
Total lease cost | 1,229 |
Cash paid for amounts included in the measurement of operating lease liabilities | 985 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 59 |
LEASES - Future minimum payment
LEASES - Future minimum payments for operating leases (Details) | Dec. 31, 2022 USD ($) |
Twelve Months Ended December 31, | |
2023 | $ 930,000 |
2024 | 838,000 |
2025 | 794,000 |
2026 | 713,000 |
2027 | 686,000 |
Thereafter | 2,618,000 |
Total Future Minimum Lease Payments | 6,579,000 |
Amounts Representing Interest | (694,000) |
Present Value of Net Future Minimum Lease Payments | $ 5,885,000 |
REGULATORY MATTERS - Regulatory
REGULATORY MATTERS - Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Corporation [Member] | ||
Capital [Abstract] | ||
Capital | $ 561,347 | $ 533,599 |
Capital to Risk Weighted Assets (percent) | 0.1461 | 0.1563 |
Capital Required for Capital Adequacy | $ 403,400 | $ 358,575 |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 0.10500 | 0.10500 |
Common equity capital | $ 521,568 | $ 490,842 |
Common Equity Capital to Risk Weighted Assets | 0.1358% | 0.1437% |
Common equity capital required for capital adequacy | $ 268,933 | $ 239,050 |
Common Equity Capital required for Capital Adequacy to Risk Weighted Assets | 7% | 7% |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | $ 521,568 | $ 490,842 |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 0.1358 | 0.1437 |
Tier One Risk Based Capital Required for Capital Adequacy | $ 326,562 | $ 290,275 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 0.08500 | 0.08500 |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | $ 521,568 | $ 490,842 |
Tier One Leverage Capital to Average Assets (percent) | 0.1078 | 0.0983 |
Tier One Leverage Capital Required for Capital Adequacy | $ 193,476 | $ 199,702 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 0.0400 | 0.0400 |
First Financial Bank | ||
Capital [Abstract] | ||
Capital | $ 498,246 | $ 487,416 |
Capital to Risk Weighted Assets (percent) | 0.1314 | 0.1478 |
Capital Required for Capital Adequacy | $ 398,179 | $ 346,248 |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 0.10500 | 0.10500 |
Capital Required to be Well Capitalized | $ 379,219 | $ 329,760 |
Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 0.1000 | 0.1000 |
Common equity capital | $ 458,467 | $ 446,189 |
Common Equity Capital to Risk Weighted Assets | 0.1209% | 0.1353% |
Common equity capital required for capital adequacy | $ 265,453 | $ 230,832 |
Common Equity Capital required for Capital Adequacy to Risk Weighted Assets | 7% | 7% |
Common equity capital required to be well capitalized | $ 246,492 | $ 214,344 |
Common Equity Capital required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | $ 458,467 | $ 446,189 |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 0.1209 | 0.1353 |
Tier One Risk Based Capital Required for Capital Adequacy with Buffer | $ 322,336 | $ 280,296 |
Tier One Risk Based Capital Required for Capital Adequacy with Buffer to Risk Weighted Assets (percent) | 0.08500 | 0.08500 |
Tier One Risk Based Capital Required to be Well Capitalized | $ 303,375 | $ 263,808 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 0.0800 | 0.0800 |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | $ 458,467 | $ 446,189 |
Tier One Leverage Capital to Average Assets (percent) | 0.0950 | 0.0918 |
Tier One Leverage Capital Required for Capital Adequacy | $ 193,073 | $ 194,405 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 0.0400 | 0.0400 |
Tier One Leverage Capital Required to be Well Capitalized | $ 241,341 | $ 243,006 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets (percent) | 0.0500 | 0.0500 |
PARENT COMPANY CONDENSED FINA_3
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and due from banks | $ 222,517 | $ 688,027 | ||
Land and headquarters building, net | 66,147 | 69,522 | ||
Other assets | 86,697 | 45,728 | ||
TOTAL ASSETS | 4,989,281 | 5,175,099 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 64,653 | 73,643 | ||
TOTAL LIABILITIES | 4,513,988 | 4,592,523 | ||
Shareholders' Equity | 475,293 | 582,576 | $ 596,992 | $ 547,125 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,989,281 | 5,175,099 | ||
Parent | ||||
ASSETS | ||||
Cash and due from banks | 60,692 | 13,844 | ||
Investments in subsidiaries | 412,570 | 571,986 | ||
Land and headquarters building, net | 9,116 | 4,423 | ||
Other assets | 42,120 | 7,518 | ||
TOTAL ASSETS | 524,498 | 597,771 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Dividends payable | 8,912 | 7,952 | ||
Other liabilities | 40,293 | 7,243 | ||
TOTAL LIABILITIES | 49,205 | 15,195 | ||
Shareholders' Equity | 475,293 | 582,576 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 524,498 | $ 597,771 |
PARENT COMPANY CONDENSED FINA_4
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS - Schedule of Condensed Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Other income | $ 9,246 | $ 3,562 | |
Income tax benefit | (16,651) | (12,626) | $ (11,692) |
NET INCOME | 71,109 | 52,987 | 53,844 |
Comprehensive income (loss) | (66,439) | 40,797 | 71,109 |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiaries | 94,048 | 99,231 | 31,069 |
Other income | 1,254 | 746 | 1,054 |
Interest on borrowings | (374) | ||
Other operating expenses | (3,435) | (2,611) | (3,430) |
Income before income taxes and equity in undistributed earnings of subsidiaries | 91,867 | 97,366 | 28,319 |
Income tax benefit | 1,110 | 681 | 801 |
Income before equity in undistributed earnings of subsidiaries | 92,977 | 98,047 | 29,120 |
Equity in undistributed earnings of subsidiaries | (21,868) | (45,060) | 24,724 |
NET INCOME | 71,109 | 52,987 | 53,844 |
Comprehensive income (loss) | $ (66,439) | $ 40,797 | $ 71,109 |
PARENT COMPANY CONDENSED FINA_5
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS - Schedule of Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 71,109 | $ 52,987 | $ 53,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Contribution of shares to ESOP | 1,451 | 1,402 | 1,471 |
Restricted stock compensation | 825 | 807 | 820 |
NET CASH FROM OPERATING ACTIVITIES | 78,787 | 55,067 | 77,425 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
NET CASH FROM INVESTING ACTIVITIES | (433,689) | (312,156) | (16,248) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Purchase of treasury stock | (27,701) | (42,471) | (9,220) |
Dividends paid | (14,459) | (14,181) | (14,273) |
NET CASH FROM FINANCING ACTIVITIES | (110,608) | 287,646 | 468,867 |
NET (DECREASE) INCREASE IN CASH | (465,510) | 30,557 | 530,044 |
Supplemental disclosures of cash flow information: | |||
Income Taxes | 13,525 | 15,025 | 7,549 |
Parent | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | 71,109 | 52,987 | 53,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 297 | 191 | 328 |
Equity in undistributed earnings | 21,868 | 45,060 | (24,724) |
Contribution of shares to ESOP | 1,451 | 1,402 | 1,471 |
Restricted stock compensation | 825 | 807 | 820 |
Increase (decrease) in other liabilities | 33,050 | 435 | 6,127 |
(Increase) decrease in other assets | (34,602) | (1,518) | (5,977) |
NET CASH FROM OPERATING ACTIVITIES | 93,998 | 99,364 | 31,889 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
(Increase) decrease in premises and equipment | (4,990) | ||
Cash received (disbursed) from acquisitions | 0 | (31,348) | 0 |
NET CASH FROM INVESTING ACTIVITIES | (4,990) | (31,348) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Principal payments on borrowings | (10,310) | ||
Purchase of treasury stock | (27,701) | (42,471) | (9,220) |
Dividends paid | (14,459) | (14,181) | (14,273) |
NET CASH FROM FINANCING ACTIVITIES | (42,160) | (56,652) | (33,803) |
NET (DECREASE) INCREASE IN CASH | 46,848 | 11,364 | (1,914) |
CASH, BEGINNING OF YEAR | 13,844 | 2,480 | 4,394 |
CASH, END OF YEAR | 60,692 | 13,844 | 2,480 |
Supplemental disclosures of cash flow information: | |||
Interest | 0 | 0 | 375 |
Income Taxes | $ 13,525 | $ 15,025 | $ 7,549 |