Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-11487 | |
Entity Registrant Name | LAKELAND FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1559596 | |
Entity Address, Address Line One | 202 East Center Street, | |
Entity Address, City or Town | Warsaw | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46580 | |
City Area Code | 574 | |
Local Phone Number | 267‑6144 | |
Title of 12(b) Security | Common stock, No par value | |
Trading Symbol | LKFN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,433,215 | |
Entity Central Index Key | 0000721994 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 75,081 | $ 80,992 |
Short-term investments | 98,056 | 49,290 |
Total cash and cash equivalents | 173,137 | 130,282 |
Securities available-for-sale, at fair value | 1,062,069 | 1,185,528 |
Securities held-to-maturity, at amortized cost (fair value of $114,264 and $111,029, respectively) | 129,070 | 128,242 |
Real estate mortgage loans held-for-sale | 1,298 | 357 |
Loans, net of allowance for credit losses of $72,058 and $72,606 | 4,790,202 | 4,637,790 |
Land, premises and equipment, net | 58,839 | 58,097 |
Bank owned life insurance | 107,738 | 108,407 |
Federal Reserve and Federal Home Loan Bank stock | 21,420 | 15,795 |
Accrued interest receivable | 27,398 | 27,994 |
Goodwill | 4,970 | 4,970 |
Other assets | 133,405 | 134,909 |
Total assets | 6,509,546 | 6,432,371 |
LIABILITIES | ||
Noninterest bearing deposits | 1,438,030 | 1,736,761 |
Interest bearing deposits | 3,985,029 | 3,723,859 |
Total deposits | 5,423,059 | 5,460,620 |
Federal Funds purchased | 0 | 22,000 |
Federal Home Loan Bank advances | 400,000 | 275,000 |
Total borrowings | 400,000 | 297,000 |
Accrued interest payable | 9,833 | 3,186 |
Other liabilities | 84,659 | 102,678 |
Total liabilities | 5,917,551 | 5,863,484 |
STOCKHOLDERS’ EQUITY | ||
Common stock: 90,000,000 shares authorized, no par value 25,896,764 shares issued and 25,430,917 outstanding as of June 30, 2023 25,825,127 shares issued and 25,349,225 outstanding as of December 31, 2022 | 123,367 | 127,004 |
Retained earnings | 661,447 | 646,100 |
Accumulated other comprehensive income (loss) | (177,645) | (188,923) |
Treasury stock at cost (467,548 shares as of June 30, 2023, 475,902 shares as of December 31, 2022) | (15,263) | (15,383) |
Total stockholders’ equity | 591,906 | 568,798 |
Noncontrolling interest | 89 | 89 |
Total equity | 591,995 | 568,887 |
Total liabilities and equity | $ 6,509,546 | $ 6,432,371 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity | $ 114,264 | $ 111,029 |
Valuation allowance after adoption of ASC 326 | $ 72,058 | $ 72,606 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares issued (in shares) | 25,896,764 | 25,825,127 |
Common stock, shares outstanding (in shares) | 25,429,216 | 25,349,225 |
Treasury stock, at cost (in shares) | 467,548 | 475,902 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and fees on loans | ||||
Taxable | $ 75,047 | $ 44,138 | $ 144,589 | $ 83,873 |
Tax exempt | 960 | 280 | 1,861 | 449 |
Interest and dividends on securities | ||||
Taxable | 3,376 | 3,727 | 6,889 | 7,005 |
Tax exempt | 4,064 | 4,994 | 8,364 | 9,600 |
Other interest income | 1,035 | 483 | 1,999 | 729 |
Total interest income | 84,482 | 53,622 | 163,702 | 101,656 |
Interest on deposits | 33,611 | 4,890 | 58,529 | 7,971 |
Interest on borrowings | ||||
Short-term | 2,347 | 0 | 5,130 | 0 |
Long-term | 0 | 54 | 0 | 127 |
Total interest expense | 35,958 | 4,944 | 63,659 | 8,098 |
NET INTEREST INCOME | 48,524 | 48,678 | 100,043 | 93,558 |
Provision for credit losses | 800 | 0 | 5,150 | 417 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 47,724 | 48,678 | 94,893 | 93,141 |
NONINTEREST INCOME | ||||
Wealth advisory fees | 2,271 | 2,204 | 4,471 | 4,491 |
Investment brokerage fees | 428 | 541 | 962 | 1,060 |
Service charges on deposit accounts | 2,726 | 2,882 | 5,356 | 5,691 |
Loan and service fees | 3,002 | 3,195 | 5,848 | 6,084 |
Merchant card fee income | 929 | 904 | 1,806 | 1,719 |
Bank owned life insurance income (loss) | 693 | (183) | 1,384 | (266) |
Interest rate swap fee income | 794 | 354 | 794 | 404 |
Mortgage banking income (loss) | (35) | 351 | (134) | 860 |
Net securities gains | 3 | 0 | 19 | 0 |
Other income | 690 | 244 | 1,309 | 1,136 |
Total noninterest income | 11,501 | 10,492 | 21,815 | 21,179 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 11,374 | 14,798 | 27,437 | 29,190 |
Net occupancy expense | 1,681 | 1,688 | 3,253 | 3,317 |
Equipment costs | 1,426 | 1,459 | 2,864 | 2,870 |
Data processing fees and supplies | 3,474 | 3,203 | 6,926 | 6,284 |
Corporate and business development | 1,298 | 1,433 | 2,729 | 2,652 |
FDIC insurance and other regulatory fees | 803 | 619 | 1,598 | 1,058 |
Professional fees | 2,049 | 1,414 | 4,170 | 2,973 |
Wire fraud loss | 18,058 | 0 | 18,058 | 0 |
Other expense | 2,571 | 3,299 | 5,133 | 6,538 |
Total noninterest expense | 42,734 | 27,913 | 72,168 | 54,882 |
INCOME BEFORE INCOME TAX EXPENSE | 16,491 | 31,257 | 44,540 | 59,438 |
Income tax expense | 1,880 | 5,584 | 5,651 | 10,123 |
NET INCOME | $ 14,611 | $ 25,673 | $ 38,889 | $ 49,315 |
BASIC WEIGHTED AVERAGE COMMON SHARES (in shares) | 25,607,663 | 25,527,896 | 25,595,412 | 25,521,618 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.57 | $ 1 | $ 1.52 | $ 1.93 |
DILUTED WEIGHTED AVERAGE COMMON SHARES (in shares) | 25,686,354 | 25,697,577 | 25,696,370 | 25,699,908 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.57 | $ 1 | $ 1.51 | $ 1.92 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,611 | $ 25,673 | $ 38,889 | $ 49,315 |
Change in available-for-sale and transferred securities: | ||||
Unrealized holding gain (loss) on securities available-for-sale arising during the period | (13,511) | (82,609) | 13,282 | (221,605) |
Reclassification adjust for amortization of unrealized losses on securities transferred to held-to-maturity | 494 | 386 | 985 | 386 |
Reclassification adjustment for gains included in net income | (3) | 0 | (19) | 0 |
Net securities gain (loss) activity during the period | (13,020) | (82,223) | 14,248 | (221,219) |
Tax effect | 2,734 | 17,349 | (2,992) | 46,538 |
Net of tax amount | (10,286) | (64,874) | 11,256 | (174,681) |
Defined benefit pension plans: | ||||
Amortization of net actuarial loss | 15 | 36 | 30 | 72 |
Net gain activity during the period | 15 | 36 | 30 | 72 |
Tax effect | (4) | (9) | (8) | (18) |
Net of tax amount | 11 | 27 | 22 | 54 |
Total other comprehensive income (loss), net of tax | (10,275) | (64,847) | 11,278 | (174,627) |
Comprehensive income (loss) | $ 4,336 | $ (39,174) | $ 50,167 | $ (125,312) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2021 | 25,300,793 | ||||||
Beginning balance at Dec. 31, 2021 | $ 704,906 | $ 120,615 | $ 583,134 | $ 16,093 | $ (15,025) | $ 704,817 | $ 89 |
Net income | 49,315 | 49,315 | 49,315 | ||||
Other comprehensive income (loss), net of tax | (174,627) | (174,627) | (174,627) | ||||
Cash dividends declared and paid | (20,423) | (20,423) | (20,423) | ||||
Treasury shares purchased under deferred directors' plan (in shares) | (3,574) | ||||||
Treasury shares purchased under deferred directors' plan | 0 | $ 285 | (285) | 0 | |||
Treasury shares sold and distributed under deferred directors' plan (in shares) | 8,555 | ||||||
Treasury shares sold and distributed under deferred directors' plan | 0 | $ (221) | 221 | 0 | |||
Stock activity under equity compensation plans (in shares) | 39,388 | ||||||
Stock activity under equity compensation plans | (1,728) | $ (1,728) | (1,728) | ||||
Stock based compensation expense | 4,620 | $ 4,620 | 4,620 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 25,345,162 | ||||||
Ending balance at Jun. 30, 2022 | 562,063 | $ 123,571 | 612,026 | (158,534) | (15,089) | 561,974 | 89 |
Beginning balance (in shares) at Mar. 31, 2022 | 25,346,149 | ||||||
Beginning balance at Mar. 31, 2022 | 609,102 | $ 121,138 | 596,578 | (93,687) | (15,016) | 609,013 | 89 |
Net income | 25,673 | 25,673 | 25,673 | ||||
Other comprehensive income (loss), net of tax | (64,847) | (64,847) | (64,847) | ||||
Cash dividends declared and paid | (10,225) | (10,225) | (10,225) | ||||
Treasury shares purchased under deferred directors' plan (in shares) | (987) | ||||||
Treasury shares purchased under deferred directors' plan | 0 | $ 73 | (73) | 0 | |||
Treasury shares sold and distributed under deferred directors' plan | 0 | 0 | |||||
Stock activity under equity compensation plans | 0 | 0 | |||||
Stock based compensation expense | 2,360 | $ 2,360 | 2,360 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 25,345,162 | ||||||
Ending balance at Jun. 30, 2022 | $ 562,063 | $ 123,571 | 612,026 | (158,534) | (15,089) | 561,974 | 89 |
Beginning balance (in shares) at Dec. 31, 2022 | 25,349,225 | 25,349,225 | |||||
Beginning balance at Dec. 31, 2022 | $ 568,887 | $ 127,004 | 646,100 | (188,923) | (15,383) | 568,798 | 89 |
Net income | 38,889 | 38,889 | 38,889 | ||||
Other comprehensive income (loss), net of tax | 11,278 | 11,278 | 11,278 | ||||
Cash dividends declared and paid | (23,542) | (23,542) | (23,542) | ||||
Treasury shares purchased under deferred directors' plan (in shares) | (4,501) | ||||||
Treasury shares purchased under deferred directors' plan | 0 | $ 285 | (285) | 0 | |||
Treasury shares sold and distributed under deferred directors' plan (in shares) | 12,855 | ||||||
Treasury shares sold and distributed under deferred directors' plan | 0 | $ (405) | 405 | 0 | |||
Stock activity under equity compensation plans (in shares) | 71,637 | ||||||
Stock activity under equity compensation plans | (3,124) | $ (3,124) | (3,124) | ||||
Stock based compensation expense | $ (393) | $ (393) | (393) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 25,429,216 | 25,429,216 | |||||
Ending balance at Jun. 30, 2023 | $ 591,995 | $ 123,367 | 661,447 | (177,645) | (15,263) | 591,906 | 89 |
Beginning balance (in shares) at Mar. 31, 2023 | 25,430,917 | ||||||
Beginning balance at Mar. 31, 2023 | 602,006 | $ 125,840 | 658,629 | (167,370) | (15,182) | 601,917 | 89 |
Net income | 14,611 | 14,611 | 14,611 | ||||
Other comprehensive income (loss), net of tax | (10,275) | (10,275) | (10,275) | ||||
Cash dividends declared and paid | (11,793) | (11,793) | (11,793) | ||||
Treasury shares purchased under deferred directors' plan (in shares) | (1,701) | ||||||
Treasury shares purchased under deferred directors' plan | 0 | $ 81 | (81) | 0 | |||
Treasury shares sold and distributed under deferred directors' plan | 0 | 0 | |||||
Stock activity under equity compensation plans | 0 | 0 | |||||
Stock based compensation expense | $ (2,554) | $ (2,554) | (2,554) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 25,429,216 | 25,429,216 | |||||
Ending balance at Jun. 30, 2023 | $ 591,995 | $ 123,367 | $ 661,447 | $ (177,645) | $ (15,263) | $ 591,906 | $ 89 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 0.46 | $ 0.40 | $ 0.92 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 38,889 | $ 49,315 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 3,069 | 3,020 |
Provision for credit losses | 5,150 | 417 |
Amortization of loan servicing rights | 286 | 385 |
Net change in loan servicing rights valuation allowance | 0 | (701) |
Loans originated for sale, including participations | (4,266) | (23,082) |
Net gain on sales of loans | (127) | (777) |
Proceeds from sale of loans, including participations | 3,421 | 28,430 |
Net (gain) loss on sales of premises and equipment | (1) | 1 |
Net gain on sales and calls of securities available-for-sale | (19) | 0 |
Net securities amortization | 2,369 | 3,245 |
Stock based compensation expense | (393) | 4,620 |
Losses (earnings) on life insurance | (1,384) | 266 |
Tax benefit of stock award issuances | (720) | (500) |
Net change: | ||
Interest receivable and other assets | (1,411) | 165 |
Interest payable and other liabilities | (7,958) | 26,355 |
Total adjustments | (1,984) | 41,844 |
Net cash from operating activities | 36,905 | 91,159 |
Cash flows from investing activities: | ||
Proceeds from sale of securities available-for-sale | 99,951 | 0 |
Proceeds from maturities, calls and principal paydowns of securities available-for-sale | 38,886 | 59,617 |
Proceeds from maturities, calls and principal paydowns of securities held-to-maturity | 6 | 5 |
Purchases of securities available-for-sale | (4,314) | (313,905) |
Purchase of life insurance | (191) | (657) |
Net (increase) decrease in total loans | (157,846) | (137,525) |
Proceeds from sales of land, premises and equipment | 13 | 1 |
Purchases of land, premises and equipment | (3,823) | (2,314) |
Purchase of Federal Home Loan Bank stock | (5,625) | 0 |
Proceeds from redemption of Federal Home Loan Bank stock | 0 | 932 |
Net cash from investing activities | (32,943) | (393,846) |
Cash flows from financing activities: | ||
Net increase (decrease) in total deposits | (37,561) | (113,823) |
Net increase (decrease) in short-term borrowings | (22,000) | 0 |
Payments On Short-Term FHLB Borrowings | 0 | (75,000) |
Proceeds from short-term FHLB borrowings | 125,000 | 0 |
Common dividends paid | (23,529) | (20,410) |
Preferred dividends paid | (13) | (13) |
Payments related to equity incentive plans | (3,124) | (1,728) |
Purchase of treasury stock | (285) | (285) |
Sale of treasury stock | 405 | 221 |
Net cash from financing activities | 38,893 | (211,038) |
Net change in cash and cash equivalents | 42,855 | (513,725) |
Cash and cash equivalents at beginning of the period | 130,282 | 683,240 |
Cash and cash equivalents at end of the period | 173,137 | 169,515 |
Cash paid during the period for: | ||
Interest | 57,011 | 8,768 |
Income taxes | 7,125 | 7,065 |
Supplemental non-cash disclosures: | ||
Loans transferred to other real estate owned | 284 | 0 |
Right-of-use assets obtained in exchange for lease liabilities | $ 0 | $ 1,612 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION This report is filed for Lakeland Financial Corporation (the "Company"), which has two wholly owned subsidiaries, Lake City Bank (the "Bank") and LCB Risk Management, a captive insurance company. Also included in this report are results for the Bank’s wholly owned subsidiary, LCB Investments II, Inc. ("LCB Investments"), which manages the Bank’s investment securities portfolio. LCB Investments owns LCB Funding, Inc. ("LCB Funding"), a real estate investment trust. All significant inter-company balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and are unaudited. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for any subsequent reporting periods, including the year ending December 31, 2023. The Company’s 2022 Annual Report on Form 10-K should be read in conjunction with these statements. Adoption of New Accounting Standards On March 31, 2022, the FASB issued ASU 2022-02, " Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures ." The update amends ASC 326 to eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying TDR recognition and measurement guidance, creditors will determine whether a modification results in a new loan or continuation of an existing loan. These amendments are intended to enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current-period gross write-offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and and class of financing receivable by year of origination. The update is available for entities that have adopted the amendments in update 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company elected to early adopt the provisions of the ASU related to the discontinuance of TDR reporting, with retrospective application of modification reporting effective starting January 1, 2022. The Company adopted the provisions related to reporting of current-period gross write-offs within the vintage disclosures effective January 1, 2023. The adoption of the provisions contained within ASU 2022-02 did not have a material impact on the consolidated financial statements. On March 28, 2022, the FASB issued ASU 2022-01, " Derivatives and Hedging (ASC 815): Fair Value Hedging - Portfolio Layer Method ." ASC 815 previously permitted only prepayable financial assets and one or more beneficial interests secured by a portfolio of prepayable financial instruments to be included in a last-of-layer closed portfolio. The amendment in this update allows nonrepayable financial assets to also be included in a closed portfolio hedged using the portfolio layer method. That expanded scope allows an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. The update became effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company adopted ASU 2022-01 on January 1, 2023, which did not have a material impact on the consolidated financial statements. Newly Issued But Not Yet Effective Accounting Standards On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, " Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to a planned adoption of reference rates which could include Secured Overnight Financing Rate ("SOFR"), amongst others. The Company has identified certain loans that renewed prior to 2021 and obtained updated reference rate language at the time of the renewal. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company's policy is to adhere to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. The Company transitioned LIBOR-based loans to an alternative reference rate before June 30, 2023. On December 22, 2022, the FASB issued ASU 2022-06, " Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848 ", which definitively provided a sunset date of December 31, 2024 for the relief guidance allowed under Topic 848. The ASU was effective immediately upon issuance. The Company adopted the LIBOR transition relief allowed under this standard, and does not expect final adoption to have a material impact on the consolidated financial statements. On March 28, 2023, the FASB issued ASU 2023-02, " Investments-Equity Method and Joint Ventures (ASC 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ." ASU 2014-01, " Investments-Equity Method and Joint Ventures (ASC 323): Accounting for Investments in Qualified Affordable Housing Projects ", previously introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met; however, this guidance limited the proportional amortization method to investments in low-income-housing tax credit (LIHTC) structures. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of net income tax expense (benefit). Equity investments in other tax credit structures are typically accounted for using the equity method, which results in investment income, gains and losses, and tax credits being presented gross on the income statement in their respective line items. The amendments in this update permit reporting entities to elect to account for certain tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax benefits in the income statement as a component of income tax expense (benefit). To qualify for the proportional amortization method, all of the following conditions must be met: (1) It is probable that the income tax credits allocated to the tax equity investor will be available; (2) The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project; (3) Substantially all of the projected benefits are from income tax credits and other income tax benefits. Projected benefits included income tax credits, other income tax benefits, and other non-income tax -related benefits. The projected benefits are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project; (4) The tax equity investor's projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive; and (5) The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor's liability is limited to its capital investment. An accounting policy election is allowed to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The amendments require that a reporting entity disclose certain information in annual and interim reporting periods that enable investors to understanding the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program including: (1) The nature of its tax equity investments; and (2) The effect of its tax equity investments and related income tax credits and other income tax benefits on its financial position and results of operations. For public business entities, the amendments in this update are effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. Early adoption is permitted in any interim period. If early adoption is elected, the provisions shall be adopted as of the beginning of the fiscal year that includes the interim period of adoption. The amendments in this update must be applied on either a modified retrospective or a retrospective basis. The Company is currently evaluating the impact of this standard for its LIHTC investments and the impact to noninterest income and income tax expense within the consolidated financial statements. Reclassification Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders' equity as previously reported. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities. Available-for-Sale Securities Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the table below. (dollars in thousands) Amortized Gross Unrealized Gain Gross Unrealized Losses Allowance for Credit Losses Fair Value June 30, 2023 U.S. Treasury securities $ 3,251 $ 0 $ (19) $ 0 $ 3,232 U.S. government sponsored agencies 151,029 0 (28,943) 0 122,086 Mortgage-backed securities: residential 545,616 34 (83,617) 0 462,033 State and municipal securities 564,165 10 (89,457) 0 474,718 Total $ 1,264,061 $ 44 $ (202,036) $ 0 $ 1,062,069 December 31, 2022 U.S. Treasury securities $ 3,057 $ 0 $ (23) $ 0 $ 3,034 U.S. government sponsored agencies 156,184 0 (29,223) 0 126,961 Mortgage-backed securities: residential 578,175 67 (85,934) 0 492,308 State and municipal securities 663,367 157 (100,299) 0 563,225 Total $ 1,400,783 $ 224 $ (215,479) $ 0 $ 1,185,528 Held-to-Maturity Securities Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross unrealized gains and losses is presented in the table below. (dollars in thousands) Amortized Gross Unrealized Gain Gross Unrealized Losses Allowance for Credit Losses Fair Value June 30, 2023 State and municipal securities $ 129,070 $ 0 $ (14,806) $ 0 $ 114,264 December 31, 2022 State and municipal securities $ 128,242 $ 0 $ (17,213) $ 0 $ 111,029 On April 1, 2022, the Company elected to transfer securities from available-for-sale to held-to-maturity as an overall balance sheet management strategy. The fair value of securities transferred was $127.0 million from available-for-sale to held-to-maturity. The unrealized loss on the securities transferred from available-for-sale to held-to-maturity was $24.4 million ($19.3 million, net of tax) based on the fair value of the securities on the transfer date and was $21.9 million ($17.3 million, net of tax) at June 30, 2023. The Company has the current intent and ability to hold the transferred securities until maturity. Any net unrealized gain or loss on the transferred securities included in accumulated other comprehensive income (loss) at the time of the transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. There have been no subsequent transfers of securities from available-for-sale to held-to-maturity. Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of June 30, 2023 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Amortized Cost Fair Due in one year or less $ 4,331 $ 4,312 $ 0 $ 0 Due after one year through five years 8,799 8,052 0 0 Due after five years through ten years 30,996 29,763 0 0 Due after ten years 674,319 557,909 129,070 114,264 718,445 600,036 129,070 114,264 Mortgage-backed securities 545,616 462,033 0 0 Total debt securities $ 1,264,061 $ 1,062,069 $ 129,070 $ 114,264 Available-for-sale securities proceeds, gross gains and gross losses are presented below. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2023 2022 2023 2022 Sales of securities available-for-sale Proceeds $ 12,480 $ 0 $ 99,951 $ 0 Gross gains 28 0 439 0 Gross losses (25) 0 (420) 0 Number of securities 22 0 103 0 In accordance with ASU No. 2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. Securities with fair values of $811.1 million and $298.2 million were pledged as of June 30, 2023 and December 31, 2022, respectively, as collateral for borrowings from the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank and for other purposes as permitted or required by law. Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities Information regarding available-for-sale securities with unrealized losses as of June 30, 2023 and December 31, 2022 is presented on the following page. The tables divide the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023 U.S. Treasury securities $ 2,836 $ 17 $ 396 $ 2 $ 3,232 $ 19 U.S. government sponsored agencies 0 0 122,086 28,943 122,086 28,943 Mortgage-backed securities: residential 23,595 1,374 436,450 82,243 460,045 83,617 State and municipal securities 41,561 1,543 421,684 87,914 463,245 89,457 Total available-for-sale $ 67,992 $ 2,934 $ 980,616 $ 199,102 $ 1,048,608 $ 202,036 December 31, 2022 U.S. Treasury securities $ 3,034 $ 23 $ 0 $ 0 $ 3,034 $ 23 U.S. government sponsored agencies 8,420 1,350 118,541 27,873 126,961 29,223 Mortgage-backed securities: residential 165,897 18,637 323,727 67,297 489,624 85,934 State and municipal securities 277,967 33,405 244,436 66,894 522,403 100,299 Total available-for-sale $ 455,318 $ 53,415 $ 686,704 $ 162,064 $ 1,142,022 $ 215,479 Information regarding held-to-maturity securities with unrealized losses as of June 30, 2023 and December 31, 2022 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023 State and municipal securities $ 0 $ 0 $ 114,264 $ 14,806 $ 114,264 $ 14,806 December 31, 2022 State and municipal securities $ 0 $ 0 $ 111,029 $ 17,213 $ 111,029 $ 17,213 The total number of securities with unrealized losses as of June 30, 2023 and December 31, 2022 is presented below. Available-for-sale Held-to-maturity Less than 12 months Total Less than 12 months Total June 30, 2023 U.S. Treasury securities 8 1 9 0 0 0 U.S. government sponsored agencies 0 17 17 0 0 0 Mortgage-backed securities: residential 29 102 131 0 0 0 State and municipal securities 56 367 423 0 41 41 Total temporarily impaired 93 487 580 0 41 41 December 31, 2022 U.S. Treasury securities 7 0 7 0 0 0 U.S. government sponsored agencies 1 16 17 0 0 0 Mortgage-backed securities: residential 95 41 136 0 0 0 State and municipal securities 269 223 492 0 41 41 Total temporarily impaired 372 280 652 0 41 41 Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for-sale debt securities that do not meet the above criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, 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. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes. No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at June 30, 2023 or December 31, 2022. Accrued interest receivable on securities totaled $7.9 million and $8.9 million at June 30, 2023 and December 31, 2022, respectively, and is excluded from the estimate of credit losses. The U.S. government sponsored agencies and mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. State and municipal securities credit losses are benchmarked against highly rated municipal securities of similar duration, as published by Moody's, resulting in an immaterial allowance for credit losses. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
LOANS | LOANS (dollars in thousands) June 30, December 31, Commercial and industrial loans: Working capital lines of credit loans $ 618,655 12.7 % $ 650,948 13.8 % Non-working capital loans 851,232 17.5 842,101 17.9 Total commercial and industrial loans 1,469,887 30.2 1,493,049 31.7 Commercial real estate and multi-family residential loans: Construction and land development loans 590,860 12.1 517,664 11.0 Owner occupied loans 806,072 16.6 758,091 16.0 Nonowner occupied loans 724,799 14.9 706,107 15.0 Multifamily loans 254,662 5.2 197,232 4.2 Total commercial real estate and multi-family residential loans 2,376,393 48.8 2,179,094 46.2 Agri-business and agricultural loans: Loans secured by farmland 176,807 3.6 201,200 4.3 Loans for agricultural production 198,155 4.1 230,888 4.9 Total agri-business and agricultural loans 374,962 7.7 432,088 9.2 Other commercial loans: 120,958 2.5 113,593 2.4 Total commercial loans 4,342,200 89.2 4,217,824 89.5 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 229,078 4.7 212,742 4.5 Open end and junior lien loans 183,738 3.8 175,575 3.7 Residential construction and land development loans 18,569 0.4 19,249 0.4 Total consumer 1-4 family mortgage loans 431,385 8.9 407,566 8.6 Other consumer loans 92,139 1.9 88,075 1.9 Total consumer loans 523,524 10.8 495,641 10.5 Subtotal 4,865,724 100.0 % 4,713,465 100.0 % Less: Allowance for credit losses (72,058) (72,606) Net deferred loan fees (3,464) (3,069) Loans, net $ 4,790,202 $ 4,637,790 The recorded investment in loans does not include accrued interest, which totaled $18.5 million and $18.4 million as of June 30, 2023 and December 31, 2022, respectively. The Company h ad $471,000 and $306,000 in residential real estate loans in the process of foreclosure as of June 30, 2023 and December 31, 2022, respectively. |
ALLOWANCE FOR CREDIT LOSSES AND
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | 6 Months Ended |
Jun. 30, 2023 | |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY The Company maintains an allowance for credit losses to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectable. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management’s judgment, should be charged against the allowance. A provision for credit losses is taken based on management’s ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. The level of credit loss provision is influenced by growth in the overall loan portfolio, emerging market risk, emerging concentration risk, commercial loan focus and large credit concentration, new industry lending activity, general economic conditions and historical loss analysis. In addition, management gives consideration to changes in the facts and circumstances of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision. Furthermore, management’s overall view on credit quality is a factor in the determination of the provision. The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along with current and forecasted economic conditions that may affect borrowers’ ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default (“PD/LGD”) model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a default rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment. These environmental factors include consideration of the following: levels of, and trends in, delinquencies and nonperforming loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio. Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan review officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer’s cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring. Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool. The historical loss rates are supplemented with consideration of economic conditions and portfolio trends. Due to the imprecise nature of estimating the allowance for credit losses, the Company’s allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company’s judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income. For off balance sheet credit exposures outlined in the ASU at 326-20-30-11, it is the Company’s position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded. The following tables present the activity in the allowance for credit losses by portfolio segment for the periods ended: (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Three Months Ended June 30, 2023 Beginning balance, April 1 $ 31,190 $ 29,036 $ 4,621 $ 1,034 $ 3,398 $ 1,096 $ 840 $ 71,215 Provision for credit losses (272) 1,593 (219) 86 51 50 (489) 800 Loans charged-off (7) 0 0 0 (14) (369) 0 (390) Recoveries 67 284 0 0 13 69 0 433 Net loans (charged-off) recovered 60 284 0 0 (1) (300) 0 43 Ending balance $ 30,978 $ 30,913 $ 4,402 $ 1,120 $ 3,448 $ 846 $ 351 $ 72,058 (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Three Months Ended June 30, 2022 Beginning balance, April 1 $ 31,322 $ 26,257 $ 4,761 $ 1,058 $ 2,606 $ 1,040 $ 482 $ 67,526 Provision for credit losses (139) 191 (8) (345) 34 102 165 0 Loans charged-off (13) 0 0 0 0 (85) 0 (98) Recoveries 25 0 0 0 34 36 0 95 Net loans (charged-off) recovered 12 0 0 0 34 (49) 0 (3) Ending balance $ 31,195 $ 26,448 $ 4,753 $ 713 $ 2,674 $ 1,093 $ 647 $ 67,523 (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Six Months Ended June 30, 2023 Beginning balance, January 1 $ 35,290 $ 27,394 $ 4,429 $ 917 $ 3,001 $ 1,021 $ 554 $ 72,606 Provision for credit losses 1,232 3,235 (27) 203 445 265 (203) 5,150 Loans charged-off (5,651) 0 0 0 (14) (621) 0 (6,286) Recoveries 107 284 0 0 16 181 0 588 Net loans (charged-off) recovered (5,544) 284 0 0 2 (440) 0 (5,698) Ending balance $ 30,978 $ 30,913 $ 4,402 $ 1,120 $ 3,448 $ 846 $ 351 $ 72,058 (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Six Months Ended June 30, 2022 Beginning balance, January 1 $ 30,595 $ 26,535 $ 5,034 $ 1,146 $ 2,866 $ 1,147 $ 450 $ 67,773 Provision for credit losses 591 510 (281) (433) (214) 47 197 417 Loans charged-off (32) (597) 0 0 (22) (187) 0 (838) Recoveries 41 0 0 0 44 86 0 171 Net loans (charged-off) recovered 9 (597) 0 0 22 (101) 0 (667) Ending balance $ 31,195 $ 26,448 $ 4,753 $ 713 $ 2,674 $ 1,093 $ 647 $ 67,523 Credit Quality Indicators The Company 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 Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans are considered to be "Pass" rated when they are reviewed as part of the previously described process and do not meet the criteria above, which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with “Not Rated” loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. The following table summarizes the risk category of loans by loan segment and origination date as of June 30, 2023: (dollars in thousands) 2023 2022 2021 2020 2019 Prior Term Total Revolving Total Commercial and industrial loans: Working capital lines of credit loans: Pass $ 231 $ 2,042 $ 2,468 $ 1,366 $ 0 $ 0 $ 6,107 $ 535,802 $ 541,909 Special Mention 0 0 0 0 0 0 0 69,844 69,844 Substandard 0 200 75 0 250 0 525 6,448 6,973 Total 231 2,242 2,543 1,366 250 0 6,632 612,094 618,726 Working capital lines of credit loans: Current period gross write offs 0 0 0 0 0 0 0 115 115 Non-working capital loans: Pass 106,680 267,890 107,070 73,313 38,285 17,517 610,755 203,682 814,437 Special Mention 0 429 1,356 2,696 2,818 6,333 13,632 5,679 19,311 Substandard 226 4,525 1,120 4,064 11 657 10,603 398 11,001 Not Rated 1,012 2,505 1,179 1,051 268 67 6,082 0 6,082 Total 107,918 275,349 110,725 81,124 41,382 24,574 641,072 209,759 850,831 Non-working capital loans: Current period gross write offs 0 5,400 0 0 118 0 5,518 18 5,536 Commercial real estate and multi-family residential loans: Construction and land development loans: Pass 23,520 15,289 10,218 13,306 179 0 62,512 511,070 573,582 Special Mention 0 0 0 0 0 0 0 14,521 14,521 Total 23,520 15,289 10,218 13,306 179 0 62,512 525,591 588,103 Construction and land development loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Owner occupied loans: Pass 88,769 131,307 161,898 135,249 66,660 136,902 720,785 57,223 778,008 Special Mention 0 702 9,148 0 2,257 11,890 23,997 0 23,997 Substandard 225 279 0 1,483 359 1,161 3,507 0 3,507 Total 88,994 132,288 171,046 136,732 69,276 149,953 748,289 57,223 805,512 Owner occupied loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Nonowner occupied loans: Pass 61,069 165,517 122,798 131,928 89,591 62,994 633,897 79,639 713,536 Special Mention 4,264 0 6,446 0 0 0 10,710 0 10,710 Total 65,333 165,517 129,244 131,928 89,591 62,994 644,607 79,639 724,246 Nonowner occupied loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Multifamily loans: Pass 78,926 38,445 9,134 36,289 33,831 30,441 227,066 7,444 234,510 Special Mention 19,794 0 0 0 0 0 19,794 0 19,794 Total 98,720 38,445 9,134 36,289 33,831 30,441 246,860 7,444 254,304 Multifamily loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Agri-business and agricultural loans: Loans secured by farmland: Pass 15,727 33,900 26,271 29,075 10,112 23,210 138,295 38,369 176,664 Special Mention 0 0 0 0 12 0 12 0 12 Substandard 0 0 0 0 0 115 115 0 115 Total 15,727 33,900 26,271 29,075 10,124 23,325 138,422 38,369 176,791 Loans secured by farmland: Current period gross write offs 0 0 0 0 0 0 0 0 0 Loans for agricultural production: Pass 25,929 8,801 28,747 26,880 4,111 11,513 105,981 91,211 197,192 Special Mention 0 0 211 352 0 0 563 500 1,063 Total 25,929 8,801 28,958 27,232 4,111 11,513 106,544 91,711 198,255 Loans for agricultural production: Current period gross write offs 0 0 0 0 0 0 0 0 0 Other commercial loans: Pass 6,213 26,450 39,302 15,524 111 8,059 95,659 21,202 116,861 Special Mention 0 0 0 1,103 0 2,793 3,896 0 3,896 Total 6,213 26,450 39,302 16,627 111 10,852 99,555 21,202 120,757 Other commercial loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans: Pass 5,795 10,782 12,147 10,249 4,647 6,286 49,906 4,607 54,513 Special Mention 0 0 0 535 0 0 535 0 535 Substandard 0 0 96 131 0 263 490 0 490 Not Rated 29,953 53,199 40,652 17,810 4,440 27,166 173,220 0 173,220 Total 35,748 63,981 52,895 28,725 9,087 33,715 224,151 4,607 228,758 Closed end first mortgage loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Open end and junior lien loans: Pass 318 136 516 345 0 26 1,341 8,803 10,144 Substandard 0 0 0 0 28 48 76 133 209 Not Rated 13,104 36,410 10,690 2,105 2,824 2,483 67,616 107,610 175,226 Total 13,422 36,546 11,206 2,450 2,852 2,557 69,033 116,546 185,579 Open end and junior lien loans: Current period gross write offs 0 0 14 0 0 0 14 0 14 Residential construction loans: Not Rated 1,041 13,374 1,604 871 276 1,321 18,487 0 18,487 Total 1,041 13,374 1,604 871 276 1,321 18,487 0 18,487 Residential construction loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Other consumer loans: Pass 1,955 827 1,586 383 0 0 4,751 16,589 21,340 Substandard 0 0 0 0 5 0 5 0 5 Not Rated 14,116 20,994 12,049 7,402 2,411 2,762 59,734 10,832 70,566 Total 16,071 21,821 13,635 7,785 2,416 2,762 64,490 27,421 91,911 Other consumer loans: Current period gross write offs 0 191 91 6 212 1 501 120 621 Total period gross write offs 0 5,591 105 6 330 1 6,033 253 6,286 Total Loans $ 498,867 $ 834,003 $ 606,781 $ 513,510 $ 263,486 $ 354,007 $ 3,070,654 $ 1,791,606 $ 4,862,260 As of June 30, 2023, $1.5 million in PPP loans were included in the "Pass" category of non-working capital commercial and industrial loans. These loans were included in this risk rating category because they are fully guaranteed by the Small Business Administration ("SBA"). The following table summarizes the risk category of loans by loan segment and origination date as of December 31, 2022: (dollars in thousands) 2022 2021 2020 2019 2018 Prior Term Total Revolving Total Commercial and industrial loans: Working capital lines of credit loans: Pass $ 2,207 $ 2,718 $ 1,601 $ 0 $ 0 $ 0 $ 6,526 $ 597,108 $ 603,634 Special Mention 0 0 0 0 0 0 0 36,410 36,410 Substandard 200 0 0 300 0 0 500 10,495 10,995 Total 2,407 2,718 1,601 300 0 0 7,026 644,013 651,039 Non-working capital loans: Pass 272,273 124,600 91,850 47,711 9,981 13,670 560,085 240,490 800,575 Special Mention 448 1,620 0 109 159 2,961 5,297 2,153 7,450 Substandard 11,831 872 5,021 194 1,351 3,979 23,248 4,171 27,419 Not Rated 2,891 1,550 1,254 413 120 23 6,251 0 6,251 Total 287,443 128,642 98,125 48,427 11,611 20,633 594,881 246,814 841,695 Commercial real estate and multi-family residential loans: Construction and land development loans: Pass 26,889 19,944 14,026 356 0 0 61,215 453,953 515,168 Total 26,889 19,944 14,026 356 0 0 61,215 453,953 515,168 Owner occupied loans: Pass 113,656 179,014 139,880 97,353 65,519 97,335 692,757 40,533 733,290 Special Mention 2,960 7,608 0 446 1,491 8,054 20,559 0 20,559 Substandard 308 105 1,491 373 1,161 229 3,667 0 3,667 Total 116,924 186,727 141,371 98,172 68,171 105,618 716,983 40,533 757,516 Nonowner occupied loans: Pass 194,294 125,190 134,661 91,907 15,109 64,874 626,035 68,603 694,638 Special Mention 0 11,024 0 0 0 0 11,024 0 11,024 Total 194,294 136,214 134,661 91,907 15,109 64,874 637,059 68,603 705,662 Multifamily loans: Pass 38,460 25,741 36,929 35,695 2,046 28,866 167,737 7,349 175,086 Special Mention 21,855 0 0 0 0 0 21,855 0 21,855 Total 60,315 25,741 36,929 35,695 2,046 28,866 189,592 7,349 196,941 Agri-business and agricultural loans: Loans secured by farmland: Pass 38,344 28,684 29,741 9,656 8,145 19,638 134,208 63,094 197,302 Special Mention 260 0 1,676 1,780 0 15 3,731 0 3,731 Substandard 0 0 0 0 0 145 145 0 145 Total 38,604 28,684 31,417 11,436 8,145 19,798 138,084 63,094 201,178 Loans for agricultural production: Pass 6,040 30,262 22,167 3,625 9,248 4,539 75,881 143,599 219,480 Special Mention 947 243 7,262 928 0 0 9,380 2,129 11,509 Total 6,987 30,505 29,429 4,553 9,248 4,539 85,261 145,728 230,989 Other commercial loans: Pass 27,097 4,815 17,911 147 931 10,985 61,886 48,295 110,181 Special Mention 0 0 0 0 0 3,160 3,160 0 3,160 Total 27,097 4,815 17,911 147 931 14,145 65,046 48,295 113,341 Consumer 1-4 family mortgage loans: Closed end first mortgage loans: Pass 8,768 12,809 12,289 4,805 4,045 3,860 46,576 5,634 52,210 Special Mention 0 0 552 0 0 0 552 0 552 Substandard 0 0 0 0 83 1,944 2,027 0 2,027 Not Rated 57,404 44,331 20,023 5,936 2,970 27,004 157,668 0 157,668 Total 66,172 57,140 32,864 10,741 7,098 32,808 206,823 5,634 212,457 Open end and junior lien loans: Pass 137 541 357 63 75 0 1,173 5,841 7,014 Substandard 0 0 0 31 49 0 80 111 191 Not Rated 44,472 13,597 3,014 3,616 1,476 2,252 68,427 101,750 170,177 Total 44,609 14,138 3,371 3,710 1,600 2,252 69,680 107,702 177,382 Residential construction loans: Not Rated 14,463 2,167 897 291 129 1,223 19,170 0 19,170 Total 14,463 2,167 897 291 129 1,223 19,170 0 19,170 Other consumer loans: Pass 1,344 1,841 432 600 0 948 5,165 16,152 21,317 Substandard 0 0 0 210 0 0 210 0 210 Not Rated 24,395 14,563 9,168 3,606 2,755 1,352 55,839 10,492 66,331 Total 25,739 16,404 9,600 4,416 2,755 2,300 61,214 26,644 87,858 TOTAL $ 911,943 $ 653,839 $ 552,202 $ 310,151 $ 126,843 $ 297,056 $ 2,852,034 $ 1,858,362 $ 4,710,396 As of December 31, 2022, $1.5 million in PPP loans were included in the "Pass" category of non-working capital commercial and industrial loans. These loans were included in this risk rating category because they are fully guaranteed by the SBA. Nonaccrual and Past Due Loans: The Company does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured. The following table presents the aging of the amortized cost basis in past due loans as of June 30, 2023 by class of loans and loans past due 90 days or more and still accruing by class of loan: (dollars in thousands) Loans Not Past Due 30-89 Days Past Due Greater than 89 Days Past Due and Accruing Total Accruing Total Nonaccrual Nonaccrual With No Allowance For Credit Loss Total Commercial and industrial loans: Working capital lines of credit loans $ 612,932 $ 373 $ 0 $ 607,884 $ 5,421 $ 75 $ 618,726 Non-working capital loans 841,990 0 0 833,149 8,841 695 850,831 Commercial real estate and multi-family residential loans: Construction and land development loans 588,103 0 0 588,103 0 0 588,103 Owner occupied loans 802,589 0 0 799,666 2,923 1,440 805,512 Nonowner occupied loans 724,246 0 0 724,246 0 0 724,246 Multifamily loans 254,304 0 0 254,304 0 0 254,304 Agri-business and agricultural loans: Loans secured by farmland 176,635 41 0 176,561 115 0 176,791 Loans for agricultural production 198,255 0 0 198,255 0 0 198,255 Other commercial loans 120,757 0 0 120,757 0 0 120,757 Consumer 1‑4 family mortgage loans: Closed end first mortgage loans 227,988 268 8 227,770 494 343 228,758 Open end and junior lien loans 185,060 312 0 185,165 207 207 185,579 Residential construction loans 18,487 0 0 18,487 0 0 18,487 Other consumer loans 91,694 213 0 91,903 4 4 91,911 Total $ 4,843,040 $ 1,207 $ 8 $ 4,826,250 $ 18,005 $ 2,764 $ 4,862,260 As of June 30, 2023 there were an insignificant number of loans 30-89 days past due or greater than 89 days past due on nonaccrual. Additionally, interest income recognized on nonaccrual loans was insignificant during the three and six month periods ended June 30, 2023. The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2022 by class of loans and loans past due 90 days or more and still accruing by class of loan: (dollars in thousands) Loans Not Past Due 30-89 Days Past Due Greater than 89 Days Past Due and Accruing Total Accruing Total Nonaccrual Nonaccrual With No Allowance For Credit Loss Total Commercial and industrial loans: Working capital lines of credit loans $ 649,529 $ 68 $ 0 $ 649,597 $ 1,442 $ 0 $ 651,039 Non-working capital loans 830,033 39 1 830,073 11,622 727 841,695 Commercial real estate and multi-family residential loans: Construction and land development loans 515,168 0 0 515,168 0 0 515,168 Owner occupied loans 754,451 0 0 754,451 3,065 1,469 757,516 Nonowner occupied loans 705,662 0 0 705,662 0 0 705,662 Multifamily loans 196,941 0 0 196,941 0 0 196,941 Agri-business and agricultural loans: Loans secured by farmland 201,033 0 0 201,033 145 0 201,178 Loans for agricultural production 230,989 0 0 230,989 0 0 230,989 Other commercial loans 113,341 0 0 113,341 0 0 113,341 Consumer 1‑4 family mortgage loans: Closed end first mortgage loans 211,736 306 122 212,164 293 225 212,457 Open end and junior lien loans 176,758 436 0 177,194 188 188 177,382 Residential construction loans 19,170 0 0 19,170 0 0 19,170 Other consumer loans 87,333 316 0 87,649 209 6 87,858 Total $ 4,692,144 $ 1,165 $ 123 $ 4,693,432 $ 16,964 $ 2,615 $ 4,710,396 As of December 31, 2022 there were an insignificant number of loans 30-89 days past due or greater than 89 days past due on nonaccrual. Additionally, interest income recognized on nonaccrual loans was insignificant during the year ended December 31, 2022. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following tables present the amortized cost basis of collateral dependent loans by class of loan as of: June 30, 2023 (dollars in thousands) Real Estate General Other Total Commercial and industrial loans: Working capital lines of credit loans $ 50 $ 5,221 $ 0 $ 5,271 Non-working capital loans 474 8,043 229 8,746 Commercial real estate and multi-family residential loans: Owner occupied loans 638 1,483 1,161 3,282 Agri-business and agricultural loans: Loans secured by farmland 0 115 0 115 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 494 0 0 494 Open end and junior lien loans 207 0 0 207 Other consumer loans 0 0 4 4 Total $ 1,863 $ 14,862 $ 1,394 $ 18,119 December 31, 2022 (dollars in thousands) Real Estate General Other Total Commercial and industrial loans: Working capital lines of credit loans $ 50 $ 5,402 $ 0 $ 5,452 Non-working capital loans 544 18,109 229 18,882 Commercial real estate and multi-family residential loans: Owner occupied loans 413 1,491 1,161 3,065 Agri-business and agricultural loans: Loans secured by farmland 0 145 0 145 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,030 0 0 2,030 Open end and junior lien loans 188 0 0 188 Other consumer loans 0 0 7 7 Total $ 3,225 $ 25,147 $ 1,397 $ 29,769 Loan Modifications Made to Borrowers Experiencing Financial Difficulty The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point to determine estimate such credit losses is historical loss information. The Company uses a probability of default/loss given default model to determine the allowance for credit losses recorded at origination. Occasionally, the Company subsequently modifies loans for borrowers experiencing financial distress by providing the following forms of relief: forgiveness of loan principal, extension of repayment terms, or an interest rate reduction, among other possible concessions. In some instances, the Company provides multiple types of concessions for such modifications. Because the effect of most modifications to borrowers experiencing financial difficulty is already included in the allowance for credit losses, no change to the allowance for credit losses is generally recorded for these modifications. The following tables present the amortized cost basis of loans that were experiencing financial difficulty and received a modification of terms during the three and six months ended June 30, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivables is also presented below: (dollars in thousands) Combination Principal Forgiveness, Term Extension and Interest Rate Reduction Total Class of Financing Receivable Three Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 1,600 0.20 % (dollars in thousands) Combination Principal Forgiveness, Term Extension and Interest Rate Reduction Total Class of Financing Receivable Six Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 1,600 0.20 % The Company has no material commitments to lend additional funds to borrowers included in the previous tables. The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023: (dollars in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Total Class of Financing Receivable Three Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 9,380 Prime+0.75% reduced to 1.00% Fixed 260 months 0.20 % (dollars in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Total Class of Financing Receivable Six Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 9,380 Prime+0.75% reduced to 1.00% Fixed 260 months 0.20 % During the three and six months ended June 30, 2022, no modifications were made to loans for borrowers experiencing financial difficulty. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. At June 30, 2023, no loans receiving such a modification within the last twelve months were 30 days or greater past due. At June 30, 2023, no loans receiving a modification due to borrower financial difficulty within the last twelve months experienced a payment default. Upon the Company's determination that a modified loan (or portion thereof) has subsequently been deemed uncollectible, the loan (or a portion thereof) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS For the period ended June 30, 2023, the Company had an advance outstanding from the Federal Home Loan Bank ("FHLB") in the amount of $400.0 million. The outstanding advance was a fixed rate bullet advance with an interest rate of 5.17% and matured July 13, 2023. For the period ended December 31, 2022, the Company had a fixed rate bullet advance from the FHLB with an interest rate of 4.21% in the amount of $275.0 million that matured on January 5, 2023. On August 2, 2019 the Company entered into an unsecured revolving credit agreement with another financial institution allowing the Company to borrow up to $30.0 million; this credit agreement was subsequently amended and renewed on July 29, 2023 for $12.5 million. Funds provided under the agreement may be used to repurchase shares of the Company’s common stock under the share repurchase program, which was reauthorized by the Company’s board of directors on April 11, 2023 and expires on April 30, 2025, and for general operations. The credit agreement includes a negative pledge agreement whereby the Company agrees not to pledge or otherwise encumber the stock of the Bank. The credit agreement has a one year term which may be amended, extended, modified or renewed. There were no outstanding borrowings on the credit agreement at June 30, 2023 and December 31, 2022. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Quoted prices (unadjusted) for 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 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 company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Securities: Securities available-for-sale are valued primarily by a third party pricing service. The fair values of securities available-for-sale are determined on a recurring basis by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or pricing models which utilize significant observable inputs such as matrix pricing. This 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). These models utilize the market approach with standard inputs that include, but are not limited to benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain municipal securities that are not rated and observable inputs about the specific issuer are not available, fair values are estimated using observable data from other municipal securities presumed to be similar or other market data on other non-rated municipal securities (Level 3 inputs). The Company’s Finance Department, which is responsible for all accounting and SEC disclosure compliance, and the Company’s Treasury Department, which is responsible for investment portfolio management and asset/liability modeling, are the two areas that determine the Company’s valuation policies and procedures. Both of these areas report directly to the Executive Vice President and Chief Financial Officer of the Company. For assets or liabilities that may be considered for Level 3 fair value measurement on a recurring basis, these two departments and the Executive Vice President and Chief Financial Officer determine the appropriate level of the assets or liabilities under consideration. If there are new assets or liabilities that are determined to be Level 3 by this group, the Risk Management Committee of the Company and the Audit Committee of the Board are made aware of such assets at their next scheduled meeting. Securities pricing is obtained on securities from a third party pricing service and all security prices are tested annually against prices from another third party provider and reviewed with a market value price tolerance variance that varies by sector: municipal securities +/-5%, government MBS/CMO +/-3% and U.S. treasuries +/-1%. If any securities fall outside the tolerance threshold and have a variance of $100,000 or more, a determination of materiality is made for the amount over the threshold. Any security that would have a material threshold difference would be further investigated to determine why the variance exists and if any action is needed concerning the security pricing for that individual security. Changes in market value are reviewed monthly in aggregate by security type and any material changes are reviewed to determine why they exist. At least annually, the pricing methodology of the pricing service is received and reviewed to support the fair value levels used by the Company. A detailed pricing evaluation is requested and reviewed on any security determined to be fair valued using unobservable inputs by the pricing service. Mortgage banking derivative: The fair values of mortgage banking derivatives are based on observable market data as of the measurement date (Level 2). Interest rate swap derivatives: Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. The fair value of interest rate swap derivatives is determined by pricing or valuation models using observable market data as of the measurement date (Level 2). Collateral dependent loans: Collateral dependent loans with specific allocations of the allowance for credit losses are generally based on the fair value of the underlying collateral when repayment is expected solely from the collateral. Fair value is determined using several methods. Generally, the fair value of real estate is based on appraisals by qualified third party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and result in a Level 3 classification of the inputs for determining fair value. In addition, the Company’s management routinely applies internal discount factors to the value of appraisals used in the fair value evaluation of collateral dependent loans. The deductions to the appraisals take into account changing business factors and market conditions, as well as value impairment in cases where the appraisal date predates a likely change in market conditions. Commercial real estate is generally discounted from its appraised value by 30-50% with the higher discounts applied to real estate that is determined to have a thin trading market or to be specialized collateral. In addition to real estate, the Company’s management evaluates other types of collateral as follows: (a) raw and finished inventory is discounted from its cost or book value by 40-60%, depending on the marketability of the goods (b) finished goods are generally discounted by 40-60%, depending on the ease of marketability, cost of transportation or scope of use of the finished good (c) work in process inventory is typically discounted by 60%-100%, depending on the length of manufacturing time, types of components used in the completion process, and the breadth of the user base (d) equipment is valued at a percentage of depreciated book value or recent appraised value, if available, and is typically discounted at 20-50% after various considerations including age and condition of the equipment, marketability, breadth of use, and whether the equipment includes unique components or add-ons; and (e) marketable securities are discounted by 10%-30%, depending on the type of investment, age of valuation report and general market conditions. This methodology is based on a market approach and typically results in a Level 3 classification of the inputs for determining fair value. Mortgage servicing rights: As of June 30, 2023, the fair value of the Company’s Level 3 servicing assets for residential mortgage loans (“MSRs”) was $2.4 million, carried at amortized cost and no valuation reserve. These residential mortgage loans have a weighted average interest rate of 3.5%, a weighted average maturity of 20 years and are secured by homes generally within the Company’s market area of Northern Indiana and Indianapolis. A third-party valuation is used to estimate fair value by stratifying the portfolios on the basis of certain risk characteristics, including loan type and interest rate. Impairment is estimated based on an income approach. The inputs used include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, ancillary income, late fees and float income. The most significant assumption used to value MSRs is prepayment rate. Prepayment rates are estimated based on published industry consensus prepayment rates. The most significant unobservable assumption is the discount rate. At June 30, 2023, the constant prepayment speed (“PSA”) used was 150 and used a discount rate range of 9.50%-11.50%. At December 31, 2022, the PSA used was 159 and the discount rate used was 9.5%. Other real estate owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned are measured at the lower of carrying amount or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are reviewed by the Company’s internal appraisal officer. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable properties used to determine value. Such adjustments are usually significant and result in a Level 3 classification. In addition, the Company’s management may apply discount factors to the appraisals to take into account changing business factors and market conditions, as well as value impairment in cases where the appraisal date predates a likely change in market conditions. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Real estate mortgage loans held-for-sale : Real estate mortgage loans held-for-sale are carried at the lower of cost or fair value, as determined by outstanding commitments, from third party investors, and result in a Level 2 classification. The tables below present the balances of assets measured at fair value on a recurring basis: June 30, 2023 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets: U.S. Treasury securities $ 3,232 $ 0 $ 0 $ 3,232 U.S. government sponsored agency securities 0 122,086 0 122,086 Mortgage-backed securities: residential 0 462,033 0 462,033 State and municipal securities 0 471,701 3,017 474,718 Total securities available-for-sale 3,232 1,055,820 3,017 1,062,069 Mortgage banking derivative 0 68 0 68 Interest rate swap derivative 0 35,660 0 35,660 Total assets $ 3,232 $ 1,091,548 $ 3,017 $ 1,097,797 Liabilities: Interest rate swap derivative 0 35,661 0 35,661 Total liabilities $ 0 $ 35,661 $ 0 $ 35,661 December 31, 2022 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets: U.S. Treasury securities $ 3,034 $ 0 $ 0 $ 3,034 U.S. government sponsored agency securities 0 126,961 0 126,961 Mortgage-backed securities: residential 0 492,308 0 492,308 State and municipal securities 0 561,150 2,075 563,225 Total securities available-for-sale 3,034 1,180,419 2,075 1,185,528 Mortgage banking derivative 0 43 0 43 Interest rate swap derivative 0 36,920 0 36,920 Total assets $ 3,034 $ 1,217,382 $ 2,075 $ 1,222,491 Liabilities: Interest rate swap derivative 0 36,921 0 36,921 Total liabilities $ 0 $ 36,921 $ 0 $ 36,921 The fair value of Level 3 available-for-sale securities was immaterial and thus did not require additional recurring fair value disclosure. The tables below present the balances of assets measured at fair value on a nonrecurring basis: June 30, 2023 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets Collateral dependent loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 2,644 $ 2,644 Non-working capital loans 0 0 3,139 3,139 Commercial real estate and multi-family residential loans: Owner occupied loans 0 0 326 326 Agri-business and agricultural loans: Loans secured by farmland 0 0 25 25 Total collateral dependent loans 0 0 6,134 6,134 Other real estate owned 0 0 384 384 Total assets $ 0 $ 0 $ 6,518 $ 6,518 December 31, 2022 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets Collateral dependent loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 3,178 $ 3,178 Non-working capital loans 0 0 8,354 8,354 Commercial real estate and multi-family residential loans: Owner occupied loans 0 0 425 425 Agri-business and agricultural loans: Loans secured by farmland 0 0 35 35 Total collateral dependent loans 0 0 11,992 11,992 Other real estate owned 0 0 100 100 Total assets $ 0 $ 0 $ 12,092 $ 12,092 The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2023: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Collateral dependent loans: Commercial and industrial $ 5,783 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 62 % 25%-99% Collateral dependent loans: Commercial real estate and multi-family residential loans 326 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 78 % Collateral dependent loans: Agri-business and agricultural 25 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 78 % Other real estate owned 384 Appraisals Discount to reflect current market conditions and ultimate collectability 36 % The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2022: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Collateral dependent loans: Commercial and industrial $ 11,532 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 62 % 29%-99% Collateral dependent loans: Commercial real estate and multi-family residential loans 425 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 57 % 37%-76% Collateral dependent loans: Agri-business and agricultural 35 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 76 % Other real estate owned 100 Appraisals Discount to reflect current market conditions and ultimate collectability 68 % The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments. Items that are not financial instruments are not included. June 30, 2023 Carrying Estimated Fair Value (dollars in thousands) Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 173,137 $ 172,892 $ 245 $ 0 $ 173,137 Securities available-for-sale 1,062,069 3,232 1,055,820 3,017 1,062,069 Securities held-to-maturity 129,070 0 114,264 0 114,264 Real estate mortgages held-for-sale 1,298 0 1,342 0 1,342 Loans, net 4,790,202 0 0 4,606,769 4,606,769 Mortgage banking derivative 68 0 68 0 68 Interest rate swap derivative 35,660 0 35,660 0 35,660 Federal Reserve and Federal Home Loan Bank Stock 21,420 N/A N/A N/A N/A Accrued interest receivable 27,398 0 8,859 18,539 27,398 Financial Liabilities: Certificates of deposit 822,797 0 824,292 0 824,292 All other deposits 4,600,262 4,600,262 0 0 4,600,262 Federal Home Loan Bank advances 400,000 400,003 0 0 400,003 Interest rate swap derivative 35,661 0 35,661 0 35,661 Standby letters of credit 133 0 0 133 133 Accrued interest payable 9,833 441 9,392 0 9,833 December 31, 2022 Carrying Estimated Fair Value (dollars in thousands) Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 130,282 $ 129,069 $ 1,213 $ 0 $ 130,282 Securities available-for-sale 1,185,528 3,034 1,180,419 2,075 1,185,528 Securities held-to-maturity 128,242 0 111,029 0 111,029 Real estate mortgages held-for-sale 357 0 372 0 372 Loans, net 4,637,790 0 0 4,454,678 4,454,678 Mortgage banking derivative 43 0 43 0 43 Interest rate swap derivative 36,920 0 36,920 0 36,920 Federal Reserve and Federal Home Loan Bank Stock 15,795 N/A N/A N/A N/A Accrued interest receivable 27,994 0 9,598 18,396 27,994 Financial Liabilities: Certificates of deposit 626,186 0 621,206 0 621,206 All other deposits 4,834,434 4,834,434 0 0 4,834,434 Federal Funds purchased 22,000 22,000 0 0 22,000 Federal Home Loan Bank advances 275,000 275,000 0 0 275,000 Interest rate swap derivative 36,921 0 36,921 0 36,921 Standby letters of credit 249 0 0 249 249 Accrued interest payable 3,186 486 2,700 0 3,186 |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
OFFSETTING ASSETS AND LIABILITIES | |
OFFSETTING ASSETS AND LIABILITIES | OFFSETTING ASSETS AND LIABILITIES The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at June 30, 2023 and December 31, 2022. June 30, 2023 Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Net Amount (dollars in thousands) Financial Instruments Cash Collateral Position Assets Interest Rate Swap Derivatives $ 35,660 $ 0 $ 35,660 $ 0 $ (27,965) $ 7,695 Total Assets $ 35,660 $ 0 $ 35,660 $ 0 $ (27,965) $ 7,695 Liabilities Interest Rate Swap Derivatives $ 35,661 $ 0 $ 35,661 $ 0 $ (90) $ 35,571 Total Liabilities $ 35,661 $ 0 $ 35,661 $ 0 $ (90) $ 35,571 December 31, 2022 Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Net Amount (dollars in thousands) Financial Instruments Cash Collateral Position Assets Interest Rate Swap Derivatives $ 36,920 $ 0 $ 36,920 $ 0 $ (34,185) $ 2,735 Total Assets $ 36,920 $ 0 $ 36,920 $ 0 $ (34,185) $ 2,735 Liabilities Interest Rate Swap Derivatives $ 36,921 $ 0 $ 36,921 $ 0 $ (90) $ 36,831 Total Liabilities $ 36,921 $ 0 $ 36,921 $ 0 $ (90) $ 36,831 If an event of default occurs causing an early termination of an interest rate swap derivative, any early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period, which includes shares held in treasury on behalf of participants in the Company’s Directors Fee Deferral Plan, and share repurchases. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based awards and warrants, none of which were antidilutive. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Weighted average shares outstanding for basic earnings per common share 25,607,663 25,527,896 25,595,412 25,521,618 Dilutive effect of stock based awards 78,691 169,681 100,958 178,290 Weighted average shares outstanding for diluted earnings per common share 25,686,354 25,697,577 25,696,370 25,699,908 Basic earnings per common share $ 0.57 $ 1.00 $ 1.52 $ 1.93 Diluted earnings per common share $ 0.57 $ 1.00 $ 1.51 $ 1.92 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2023 | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the three months ended June 30, 2023 and 2022, all shown net of tax: (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at April 1, 2023 $ (166,612) $ (758) $ (167,370) Other comprehensive income (loss) before reclassification (10,674) 0 (10,674) Amounts reclassified from accumulated other comprehensive income (loss) 388 11 399 Net current period other comprehensive income (loss) (10,286) 11 (10,275) Balance at June 30, 2023 $ (176,898) $ (747) $ (177,645) (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at April 1, 2022 $ (92,751) $ (936) $ (93,687) Other comprehensive income (loss) before reclassification (65,179) 0 (65,179) Amounts reclassified from accumulated other comprehensive income (loss) 305 27 332 Net current period other comprehensive income (loss) (64,874) 27 (64,847) Balance at June 30, 2022 $ (157,625) $ (909) $ (158,534) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the six months ended June 30, 2023 and 2022, all shown net of tax: (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at January 1, 2023 $ (188,154) $ (769) $ (188,923) Other comprehensive income (loss) before reclassification 10,493 0 10,493 Amounts reclassified from accumulated other comprehensive income (loss) 763 22 785 Net current period other comprehensive income (loss) 11,256 22 11,278 Balance at June 30, 2023 $ (176,898) $ (747) $ (177,645) (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at January 1, 2022 $ 17,056 $ (963) $ 16,093 Other comprehensive income (loss) before reclassification (174,986) 0 (174,986) Amounts reclassified from accumulated other comprehensive income (loss) 305 54 359 Net current period other comprehensive income (loss) (174,681) 54 (174,627) Balance at June 30, 2022 $ (157,625) $ (909) $ (158,534) Reclassifications out of other accumulated other comprehensive income (loss) for the three months ended June 30, 2023 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (494) Interest income Realized gains and (losses) on available-for-sale securities 3 Net securities gains Tax effect 103 Income tax expense (388) Net of tax Amortization of defined benefit pension items (15) Other expense Tax effect 4 Income tax expense (11) Net of tax Total reclassifications for the period $ (399) Net income Reclassifications out of other accumulated comprehensive income (loss) for the three months ended June 30, 2022 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (386) Interest income Tax effect 81 Income tax expense (305) Net of tax Amortization of defined benefit pension items (36) Other expense Tax effect 9 Income tax expense (27) Net of tax Total reclassifications for the period $ (332) Net income Reclassifications out of accumulated comprehensive loss for the six months ended June 30, 2023 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (985) Interest income Realized gains and (losses) on available-for-sale securities 19 Net securities gains Tax effect 203 Income tax expense (763) Net of tax Amortization of defined benefit pension items (30) Other expense Tax effect 8 Income tax expense (22) Net of tax Total reclassifications for the period $ (785) Net income Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2022 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (386) Interest income Tax effect 81 Income tax expense (305) Net of tax Amortization of defined benefit pension items (72) Other expense Tax effect 18 Income tax expense (54) Net of tax Total reclassifications for the period $ (359) Net income |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2037 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use ("ROU") lease assets and are included in other assets on the consolidated balance sheet. The Company's corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company's right to use an underlying asset for the lease term and lease obligations represent the Company's obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as a practical expedient of the standard. The following is a maturity analysis of the operating lease liabilities as of June 30, 2023: Years ending December 31, (in thousands) Operating Lease Obligation 2023 $ 365 2024 744 2025 756 2026 730 2027 753 2028 and thereafter 2,185 Total undiscounted lease payments 5,533 Less imputed interest (534) Lease liability $ 4,999 Right-of-use asset $ 4,999 Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2023 2022 2023 2022 Lease cost Operating lease cost $ 300 $ 163 $ 478 $ 333 Short-term lease cost 4 8 8 14 Total lease cost $ 304 $ 171 $ 486 $ 347 Other information Operating cash outflows from operating leases $ 300 $ 163 $ 478 $ 333 Weighted-average remaining lease term - operating leases 6.8 years 8.5 years 6.8 years 8.5 years Weighted average discount rate - operating leases 2.5 % 2.5 % 2.5 % 2.5 % |
LOSS CONTINGENCIES
LOSS CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LOSS CONTINGENCIES | LOSS CONTINGENCIES Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Bank discovered potentially fraudulent activity by a former treasury management client involving multiple banks. The former client subsequently filed several related bankruptcy cases, captioned In re Interlogic Outsourcing, Inc., et al. , which are pending in the United States Bankruptcy Court for the Western District of Michigan. On April 27, 2021, the bankruptcy court entered an order approving an amended plan of liquidation, which was filed by the former client, other debtors and bankruptcy plan proponents, and approving the consolidation of the assets in the aforementioned cases under the Khan IOI Consolidated Estate Trust. On August 9, 2021, the liquidating trustee for the bankruptcy estates filed a complaint against the Bank and the Company, and agreed to stay prosecution of the action through August 31, 2022. The original complaint focused on a series of business transactions among the client, related entities and the Bank, which the liquidating trustee alleged are voidable under applicable federal bankruptcy and state law. The complaint also addressed treatment of the Bank's claims filed in the bankruptcy cases. On August 31, 2022, the trustee filed his amended complaint against the former client, the Bank, the Company, four officers of the Bank and one independent director of the Bank. The amended complaint alleged that the former client engaged in a check kiting scheme involving multiple banks. The amended complaint alleged that a series of business transactions among the client, his related entities and the Bank are voidable under applicable bankruptcy and state laws. The amended complaint also alleged that the Bank, the Company and the five individual bank representatives who are named as defendants violated various federal and state laws in assisting the former client in his check kiting scheme. On October 26, 2022, the trustee filed his second amended complaint which was virtually identical to his amended complaint. On January 5, 2023, the Bank, the Company and the five individual bank representatives filed motions to dismiss the second amended complaint. On May 30, 2023, the court issued its decision granting the defendants’ motion to dismiss in part and denying it in part. The court dismissed all claims against the Company and the Bank’s independent director. The court dismissed several of the claims against the defendants but granted the trustee the right to file an amended complaint. On June 20, 2023, the trustee filed his third amended complaint. The trustee alleges many of the same claims that were alleged in his second amended complaint. The defendants will file a motion to dismiss the third amended complaint on July 25, 2023. Based on current information, we have determined that a material loss is neither probable nor estimable at this time, and the Bank, and the four individual Bank representatives who are named as defendants in the third amended complaint intend to vigorously defend themselves against all allegations asserted in the third amended complaint. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 14,611 | $ 25,673 | $ 38,889 | $ 49,315 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | This report is filed for Lakeland Financial Corporation (the "Company"), which has two wholly owned subsidiaries, Lake City Bank (the "Bank") and LCB Risk Management, a captive insurance company. Also included in this report are results for the Bank’s wholly owned subsidiary, LCB Investments II, Inc. ("LCB Investments"), which manages the Bank’s investment securities portfolio. LCB Investments owns LCB Funding, Inc. ("LCB Funding"), a real estate investment trust. All significant inter-company balances and transactions have been eliminated in consolidation. |
Basis of Accounting Policy | The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and are unaudited. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for any subsequent reporting periods, including the year ending December 31, 2023. The Company’s 2022 Annual Report on Form 10-K should be read in conjunction with these statements. |
Adoption of New Accounting Standards, Newly Issued But Not Yet Effective Accounting Standards and Newly Proposed Accounting Standards | Adoption of New Accounting Standards On March 31, 2022, the FASB issued ASU 2022-02, " Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures ." The update amends ASC 326 to eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructuring activities by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying TDR recognition and measurement guidance, creditors will determine whether a modification results in a new loan or continuation of an existing loan. These amendments are intended to enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, the amendments to ASC 326 require that an entity disclose current-period gross write-offs by year of origination within the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and and class of financing receivable by year of origination. The update is available for entities that have adopted the amendments in update 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company elected to early adopt the provisions of the ASU related to the discontinuance of TDR reporting, with retrospective application of modification reporting effective starting January 1, 2022. The Company adopted the provisions related to reporting of current-period gross write-offs within the vintage disclosures effective January 1, 2023. The adoption of the provisions contained within ASU 2022-02 did not have a material impact on the consolidated financial statements. On March 28, 2022, the FASB issued ASU 2022-01, " Derivatives and Hedging (ASC 815): Fair Value Hedging - Portfolio Layer Method ." ASC 815 previously permitted only prepayable financial assets and one or more beneficial interests secured by a portfolio of prepayable financial instruments to be included in a last-of-layer closed portfolio. The amendment in this update allows nonrepayable financial assets to also be included in a closed portfolio hedged using the portfolio layer method. That expanded scope allows an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. The update became effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company adopted ASU 2022-01 on January 1, 2023, which did not have a material impact on the consolidated financial statements. Newly Issued But Not Yet Effective Accounting Standards On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, " Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ." ASC 848 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to a planned adoption of reference rates which could include Secured Overnight Financing Rate ("SOFR"), amongst others. The Company has identified certain loans that renewed prior to 2021 and obtained updated reference rate language at the time of the renewal. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company's policy is to adhere to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020. The Company discontinued the use of new LIBOR-based loans by December 31, 2021, according to regulatory guidelines. The Company transitioned LIBOR-based loans to an alternative reference rate before June 30, 2023. On December 22, 2022, the FASB issued ASU 2022-06, " Reference Rate Reform (ASC 848): Deferral of the Sunset Date of Topic 848 ", which definitively provided a sunset date of December 31, 2024 for the relief guidance allowed under Topic 848. The ASU was effective immediately upon issuance. The Company adopted the LIBOR transition relief allowed under this standard, and does not expect final adoption to have a material impact on the consolidated financial statements. On March 28, 2023, the FASB issued ASU 2023-02, " Investments-Equity Method and Joint Ventures (ASC 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ." ASU 2014-01, " Investments-Equity Method and Joint Ventures (ASC 323): Accounting for Investments in Qualified Affordable Housing Projects ", previously introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met; however, this guidance limited the proportional amortization method to investments in low-income-housing tax credit (LIHTC) structures. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of net income tax expense (benefit). Equity investments in other tax credit structures are typically accounted for using the equity method, which results in investment income, gains and losses, and tax credits being presented gross on the income statement in their respective line items. The amendments in this update permit reporting entities to elect to account for certain tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax benefits in the income statement as a component of income tax expense (benefit). To qualify for the proportional amortization method, all of the following conditions must be met: (1) It is probable that the income tax credits allocated to the tax equity investor will be available; (2) The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project; (3) Substantially all of the projected benefits are from income tax credits and other income tax benefits. Projected benefits included income tax credits, other income tax benefits, and other non-income tax -related benefits. The projected benefits are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project; (4) The tax equity investor's projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive; and (5) The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor's liability is limited to its capital investment. An accounting policy election is allowed to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The amendments require that a reporting entity disclose certain information in annual and interim reporting periods that enable investors to understanding the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program including: (1) The nature of its tax equity investments; and (2) The effect of its tax equity investments and related income tax credits and other income tax benefits on its financial position and results of operations. For public business entities, the amendments in this update are effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. Early adoption is permitted in any interim period. If early adoption is elected, the provisions shall be adopted as of the beginning of the fiscal year that includes the interim period of adoption. The amendments in this update must be applied on either a modified retrospective or a retrospective basis. The Company is currently evaluating the impact of this standard for its LIHTC investments and the impact to noninterest income and income tax expense within the consolidated financial statements. |
Reclassification | Reclassification Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders' equity as previously reported. |
Allowance for Credit Losses and Credit Quality | The Company maintains an allowance for credit losses to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectable. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management’s judgment, should be charged against the allowance. A provision for credit losses is taken based on management’s ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. The level of credit loss provision is influenced by growth in the overall loan portfolio, emerging market risk, emerging concentration risk, commercial loan focus and large credit concentration, new industry lending activity, general economic conditions and historical loss analysis. In addition, management gives consideration to changes in the facts and circumstances of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision. Furthermore, management’s overall view on credit quality is a factor in the determination of the provision. The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along with current and forecasted economic conditions that may affect borrowers’ ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default (“PD/LGD”) model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a default rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment. These environmental factors include consideration of the following: levels of, and trends in, delinquencies and nonperforming loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio. Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan review officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer’s cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring. Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool. The historical loss rates are supplemented with consideration of economic conditions and portfolio trends. Due to the imprecise nature of estimating the allowance for credit losses, the Company’s allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company’s judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income. For off balance sheet credit exposures outlined in the ASU at 326-20-30-11, it is the Company’s position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded. |
Leases | The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2037 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use ("ROU") lease assets and are included in other assets on the consolidated balance sheet. The Company's corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company's right to use an underlying asset for the lease term and lease obligations represent the Company's obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as a practical expedient of the standard. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Securities | Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the table below. (dollars in thousands) Amortized Gross Unrealized Gain Gross Unrealized Losses Allowance for Credit Losses Fair Value June 30, 2023 U.S. Treasury securities $ 3,251 $ 0 $ (19) $ 0 $ 3,232 U.S. government sponsored agencies 151,029 0 (28,943) 0 122,086 Mortgage-backed securities: residential 545,616 34 (83,617) 0 462,033 State and municipal securities 564,165 10 (89,457) 0 474,718 Total $ 1,264,061 $ 44 $ (202,036) $ 0 $ 1,062,069 December 31, 2022 U.S. Treasury securities $ 3,057 $ 0 $ (23) $ 0 $ 3,034 U.S. government sponsored agencies 156,184 0 (29,223) 0 126,961 Mortgage-backed securities: residential 578,175 67 (85,934) 0 492,308 State and municipal securities 663,367 157 (100,299) 0 563,225 Total $ 1,400,783 $ 224 $ (215,479) $ 0 $ 1,185,528 |
Debt Securities, Held-to-Maturity | Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross unrealized gains and losses is presented in the table below. (dollars in thousands) Amortized Gross Unrealized Gain Gross Unrealized Losses Allowance for Credit Losses Fair Value June 30, 2023 State and municipal securities $ 129,070 $ 0 $ (14,806) $ 0 $ 114,264 December 31, 2022 State and municipal securities $ 128,242 $ 0 $ (17,213) $ 0 $ 111,029 |
Schedule of Available-For-Sale Securities By Maturity | Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of June 30, 2023 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Amortized Cost Fair Due in one year or less $ 4,331 $ 4,312 $ 0 $ 0 Due after one year through five years 8,799 8,052 0 0 Due after five years through ten years 30,996 29,763 0 0 Due after ten years 674,319 557,909 129,070 114,264 718,445 600,036 129,070 114,264 Mortgage-backed securities 545,616 462,033 0 0 Total debt securities $ 1,264,061 $ 1,062,069 $ 129,070 $ 114,264 |
Schedule of Sales of Securities Available For Sale | Available-for-sale securities proceeds, gross gains and gross losses are presented below. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2023 2022 2023 2022 Sales of securities available-for-sale Proceeds $ 12,480 $ 0 $ 99,951 $ 0 Gross gains 28 0 439 0 Gross losses (25) 0 (420) 0 Number of securities 22 0 103 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | Information regarding available-for-sale securities with unrealized losses as of June 30, 2023 and December 31, 2022 is presented on the following page. The tables divide the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023 U.S. Treasury securities $ 2,836 $ 17 $ 396 $ 2 $ 3,232 $ 19 U.S. government sponsored agencies 0 0 122,086 28,943 122,086 28,943 Mortgage-backed securities: residential 23,595 1,374 436,450 82,243 460,045 83,617 State and municipal securities 41,561 1,543 421,684 87,914 463,245 89,457 Total available-for-sale $ 67,992 $ 2,934 $ 980,616 $ 199,102 $ 1,048,608 $ 202,036 December 31, 2022 U.S. Treasury securities $ 3,034 $ 23 $ 0 $ 0 $ 3,034 $ 23 U.S. government sponsored agencies 8,420 1,350 118,541 27,873 126,961 29,223 Mortgage-backed securities: residential 165,897 18,637 323,727 67,297 489,624 85,934 State and municipal securities 277,967 33,405 244,436 66,894 522,403 100,299 Total available-for-sale $ 455,318 $ 53,415 $ 686,704 $ 162,064 $ 1,142,022 $ 215,479 |
Debt Securities, Held-To-Maturity, Unrealized Loss Position, Fair Value | Information regarding held-to-maturity securities with unrealized losses as of June 30, 2023 and December 31, 2022 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2023 State and municipal securities $ 0 $ 0 $ 114,264 $ 14,806 $ 114,264 $ 14,806 December 31, 2022 State and municipal securities $ 0 $ 0 $ 111,029 $ 17,213 $ 111,029 $ 17,213 |
Schedule of Quantitative Disclosure of Available-For-Sale Securities | The total number of securities with unrealized losses as of June 30, 2023 and December 31, 2022 is presented below. Available-for-sale Held-to-maturity Less than 12 months Total Less than 12 months Total June 30, 2023 U.S. Treasury securities 8 1 9 0 0 0 U.S. government sponsored agencies 0 17 17 0 0 0 Mortgage-backed securities: residential 29 102 131 0 0 0 State and municipal securities 56 367 423 0 41 41 Total temporarily impaired 93 487 580 0 41 41 December 31, 2022 U.S. Treasury securities 7 0 7 0 0 0 U.S. government sponsored agencies 1 16 17 0 0 0 Mortgage-backed securities: residential 95 41 136 0 0 0 State and municipal securities 269 223 492 0 41 41 Total temporarily impaired 372 280 652 0 41 41 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans | (dollars in thousands) June 30, December 31, Commercial and industrial loans: Working capital lines of credit loans $ 618,655 12.7 % $ 650,948 13.8 % Non-working capital loans 851,232 17.5 842,101 17.9 Total commercial and industrial loans 1,469,887 30.2 1,493,049 31.7 Commercial real estate and multi-family residential loans: Construction and land development loans 590,860 12.1 517,664 11.0 Owner occupied loans 806,072 16.6 758,091 16.0 Nonowner occupied loans 724,799 14.9 706,107 15.0 Multifamily loans 254,662 5.2 197,232 4.2 Total commercial real estate and multi-family residential loans 2,376,393 48.8 2,179,094 46.2 Agri-business and agricultural loans: Loans secured by farmland 176,807 3.6 201,200 4.3 Loans for agricultural production 198,155 4.1 230,888 4.9 Total agri-business and agricultural loans 374,962 7.7 432,088 9.2 Other commercial loans: 120,958 2.5 113,593 2.4 Total commercial loans 4,342,200 89.2 4,217,824 89.5 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 229,078 4.7 212,742 4.5 Open end and junior lien loans 183,738 3.8 175,575 3.7 Residential construction and land development loans 18,569 0.4 19,249 0.4 Total consumer 1-4 family mortgage loans 431,385 8.9 407,566 8.6 Other consumer loans 92,139 1.9 88,075 1.9 Total consumer loans 523,524 10.8 495,641 10.5 Subtotal 4,865,724 100.0 % 4,713,465 100.0 % Less: Allowance for credit losses (72,058) (72,606) Net deferred loan fees (3,464) (3,069) Loans, net $ 4,790,202 $ 4,637,790 |
ALLOWANCE FOR CREDIT LOSSES A_2
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | |
Summary of Allowance for Credit Loss | The following tables present the activity in the allowance for credit losses by portfolio segment for the periods ended: (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Three Months Ended June 30, 2023 Beginning balance, April 1 $ 31,190 $ 29,036 $ 4,621 $ 1,034 $ 3,398 $ 1,096 $ 840 $ 71,215 Provision for credit losses (272) 1,593 (219) 86 51 50 (489) 800 Loans charged-off (7) 0 0 0 (14) (369) 0 (390) Recoveries 67 284 0 0 13 69 0 433 Net loans (charged-off) recovered 60 284 0 0 (1) (300) 0 43 Ending balance $ 30,978 $ 30,913 $ 4,402 $ 1,120 $ 3,448 $ 846 $ 351 $ 72,058 (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Three Months Ended June 30, 2022 Beginning balance, April 1 $ 31,322 $ 26,257 $ 4,761 $ 1,058 $ 2,606 $ 1,040 $ 482 $ 67,526 Provision for credit losses (139) 191 (8) (345) 34 102 165 0 Loans charged-off (13) 0 0 0 0 (85) 0 (98) Recoveries 25 0 0 0 34 36 0 95 Net loans (charged-off) recovered 12 0 0 0 34 (49) 0 (3) Ending balance $ 31,195 $ 26,448 $ 4,753 $ 713 $ 2,674 $ 1,093 $ 647 $ 67,523 (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Six Months Ended June 30, 2023 Beginning balance, January 1 $ 35,290 $ 27,394 $ 4,429 $ 917 $ 3,001 $ 1,021 $ 554 $ 72,606 Provision for credit losses 1,232 3,235 (27) 203 445 265 (203) 5,150 Loans charged-off (5,651) 0 0 0 (14) (621) 0 (6,286) Recoveries 107 284 0 0 16 181 0 588 Net loans (charged-off) recovered (5,544) 284 0 0 2 (440) 0 (5,698) Ending balance $ 30,978 $ 30,913 $ 4,402 $ 1,120 $ 3,448 $ 846 $ 351 $ 72,058 (dollars in thousands) Commercial and Industrial Commercial Real Estate and Multifamily Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer Unallocated Total Six Months Ended June 30, 2022 Beginning balance, January 1 $ 30,595 $ 26,535 $ 5,034 $ 1,146 $ 2,866 $ 1,147 $ 450 $ 67,773 Provision for credit losses 591 510 (281) (433) (214) 47 197 417 Loans charged-off (32) (597) 0 0 (22) (187) 0 (838) Recoveries 41 0 0 0 44 86 0 171 Net loans (charged-off) recovered 9 (597) 0 0 22 (101) 0 (667) Ending balance $ 31,195 $ 26,448 $ 4,753 $ 713 $ 2,674 $ 1,093 $ 647 $ 67,523 |
Summary of Risk Category of Loans by Loan Segment and Origination Date and Credit Quality Indicators | The following table summarizes the risk category of loans by loan segment and origination date as of June 30, 2023: (dollars in thousands) 2023 2022 2021 2020 2019 Prior Term Total Revolving Total Commercial and industrial loans: Working capital lines of credit loans: Pass $ 231 $ 2,042 $ 2,468 $ 1,366 $ 0 $ 0 $ 6,107 $ 535,802 $ 541,909 Special Mention 0 0 0 0 0 0 0 69,844 69,844 Substandard 0 200 75 0 250 0 525 6,448 6,973 Total 231 2,242 2,543 1,366 250 0 6,632 612,094 618,726 Working capital lines of credit loans: Current period gross write offs 0 0 0 0 0 0 0 115 115 Non-working capital loans: Pass 106,680 267,890 107,070 73,313 38,285 17,517 610,755 203,682 814,437 Special Mention 0 429 1,356 2,696 2,818 6,333 13,632 5,679 19,311 Substandard 226 4,525 1,120 4,064 11 657 10,603 398 11,001 Not Rated 1,012 2,505 1,179 1,051 268 67 6,082 0 6,082 Total 107,918 275,349 110,725 81,124 41,382 24,574 641,072 209,759 850,831 Non-working capital loans: Current period gross write offs 0 5,400 0 0 118 0 5,518 18 5,536 Commercial real estate and multi-family residential loans: Construction and land development loans: Pass 23,520 15,289 10,218 13,306 179 0 62,512 511,070 573,582 Special Mention 0 0 0 0 0 0 0 14,521 14,521 Total 23,520 15,289 10,218 13,306 179 0 62,512 525,591 588,103 Construction and land development loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Owner occupied loans: Pass 88,769 131,307 161,898 135,249 66,660 136,902 720,785 57,223 778,008 Special Mention 0 702 9,148 0 2,257 11,890 23,997 0 23,997 Substandard 225 279 0 1,483 359 1,161 3,507 0 3,507 Total 88,994 132,288 171,046 136,732 69,276 149,953 748,289 57,223 805,512 Owner occupied loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Nonowner occupied loans: Pass 61,069 165,517 122,798 131,928 89,591 62,994 633,897 79,639 713,536 Special Mention 4,264 0 6,446 0 0 0 10,710 0 10,710 Total 65,333 165,517 129,244 131,928 89,591 62,994 644,607 79,639 724,246 Nonowner occupied loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Multifamily loans: Pass 78,926 38,445 9,134 36,289 33,831 30,441 227,066 7,444 234,510 Special Mention 19,794 0 0 0 0 0 19,794 0 19,794 Total 98,720 38,445 9,134 36,289 33,831 30,441 246,860 7,444 254,304 Multifamily loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Agri-business and agricultural loans: Loans secured by farmland: Pass 15,727 33,900 26,271 29,075 10,112 23,210 138,295 38,369 176,664 Special Mention 0 0 0 0 12 0 12 0 12 Substandard 0 0 0 0 0 115 115 0 115 Total 15,727 33,900 26,271 29,075 10,124 23,325 138,422 38,369 176,791 Loans secured by farmland: Current period gross write offs 0 0 0 0 0 0 0 0 0 Loans for agricultural production: Pass 25,929 8,801 28,747 26,880 4,111 11,513 105,981 91,211 197,192 Special Mention 0 0 211 352 0 0 563 500 1,063 Total 25,929 8,801 28,958 27,232 4,111 11,513 106,544 91,711 198,255 Loans for agricultural production: Current period gross write offs 0 0 0 0 0 0 0 0 0 Other commercial loans: Pass 6,213 26,450 39,302 15,524 111 8,059 95,659 21,202 116,861 Special Mention 0 0 0 1,103 0 2,793 3,896 0 3,896 Total 6,213 26,450 39,302 16,627 111 10,852 99,555 21,202 120,757 Other commercial loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans: Pass 5,795 10,782 12,147 10,249 4,647 6,286 49,906 4,607 54,513 Special Mention 0 0 0 535 0 0 535 0 535 Substandard 0 0 96 131 0 263 490 0 490 Not Rated 29,953 53,199 40,652 17,810 4,440 27,166 173,220 0 173,220 Total 35,748 63,981 52,895 28,725 9,087 33,715 224,151 4,607 228,758 Closed end first mortgage loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Open end and junior lien loans: Pass 318 136 516 345 0 26 1,341 8,803 10,144 Substandard 0 0 0 0 28 48 76 133 209 Not Rated 13,104 36,410 10,690 2,105 2,824 2,483 67,616 107,610 175,226 Total 13,422 36,546 11,206 2,450 2,852 2,557 69,033 116,546 185,579 Open end and junior lien loans: Current period gross write offs 0 0 14 0 0 0 14 0 14 Residential construction loans: Not Rated 1,041 13,374 1,604 871 276 1,321 18,487 0 18,487 Total 1,041 13,374 1,604 871 276 1,321 18,487 0 18,487 Residential construction loans: Current period gross write offs 0 0 0 0 0 0 0 0 0 Other consumer loans: Pass 1,955 827 1,586 383 0 0 4,751 16,589 21,340 Substandard 0 0 0 0 5 0 5 0 5 Not Rated 14,116 20,994 12,049 7,402 2,411 2,762 59,734 10,832 70,566 Total 16,071 21,821 13,635 7,785 2,416 2,762 64,490 27,421 91,911 Other consumer loans: Current period gross write offs 0 191 91 6 212 1 501 120 621 Total period gross write offs 0 5,591 105 6 330 1 6,033 253 6,286 Total Loans $ 498,867 $ 834,003 $ 606,781 $ 513,510 $ 263,486 $ 354,007 $ 3,070,654 $ 1,791,606 $ 4,862,260 The following table summarizes the risk category of loans by loan segment and origination date as of December 31, 2022: (dollars in thousands) 2022 2021 2020 2019 2018 Prior Term Total Revolving Total Commercial and industrial loans: Working capital lines of credit loans: Pass $ 2,207 $ 2,718 $ 1,601 $ 0 $ 0 $ 0 $ 6,526 $ 597,108 $ 603,634 Special Mention 0 0 0 0 0 0 0 36,410 36,410 Substandard 200 0 0 300 0 0 500 10,495 10,995 Total 2,407 2,718 1,601 300 0 0 7,026 644,013 651,039 Non-working capital loans: Pass 272,273 124,600 91,850 47,711 9,981 13,670 560,085 240,490 800,575 Special Mention 448 1,620 0 109 159 2,961 5,297 2,153 7,450 Substandard 11,831 872 5,021 194 1,351 3,979 23,248 4,171 27,419 Not Rated 2,891 1,550 1,254 413 120 23 6,251 0 6,251 Total 287,443 128,642 98,125 48,427 11,611 20,633 594,881 246,814 841,695 Commercial real estate and multi-family residential loans: Construction and land development loans: Pass 26,889 19,944 14,026 356 0 0 61,215 453,953 515,168 Total 26,889 19,944 14,026 356 0 0 61,215 453,953 515,168 Owner occupied loans: Pass 113,656 179,014 139,880 97,353 65,519 97,335 692,757 40,533 733,290 Special Mention 2,960 7,608 0 446 1,491 8,054 20,559 0 20,559 Substandard 308 105 1,491 373 1,161 229 3,667 0 3,667 Total 116,924 186,727 141,371 98,172 68,171 105,618 716,983 40,533 757,516 Nonowner occupied loans: Pass 194,294 125,190 134,661 91,907 15,109 64,874 626,035 68,603 694,638 Special Mention 0 11,024 0 0 0 0 11,024 0 11,024 Total 194,294 136,214 134,661 91,907 15,109 64,874 637,059 68,603 705,662 Multifamily loans: Pass 38,460 25,741 36,929 35,695 2,046 28,866 167,737 7,349 175,086 Special Mention 21,855 0 0 0 0 0 21,855 0 21,855 Total 60,315 25,741 36,929 35,695 2,046 28,866 189,592 7,349 196,941 Agri-business and agricultural loans: Loans secured by farmland: Pass 38,344 28,684 29,741 9,656 8,145 19,638 134,208 63,094 197,302 Special Mention 260 0 1,676 1,780 0 15 3,731 0 3,731 Substandard 0 0 0 0 0 145 145 0 145 Total 38,604 28,684 31,417 11,436 8,145 19,798 138,084 63,094 201,178 Loans for agricultural production: Pass 6,040 30,262 22,167 3,625 9,248 4,539 75,881 143,599 219,480 Special Mention 947 243 7,262 928 0 0 9,380 2,129 11,509 Total 6,987 30,505 29,429 4,553 9,248 4,539 85,261 145,728 230,989 Other commercial loans: Pass 27,097 4,815 17,911 147 931 10,985 61,886 48,295 110,181 Special Mention 0 0 0 0 0 3,160 3,160 0 3,160 Total 27,097 4,815 17,911 147 931 14,145 65,046 48,295 113,341 Consumer 1-4 family mortgage loans: Closed end first mortgage loans: Pass 8,768 12,809 12,289 4,805 4,045 3,860 46,576 5,634 52,210 Special Mention 0 0 552 0 0 0 552 0 552 Substandard 0 0 0 0 83 1,944 2,027 0 2,027 Not Rated 57,404 44,331 20,023 5,936 2,970 27,004 157,668 0 157,668 Total 66,172 57,140 32,864 10,741 7,098 32,808 206,823 5,634 212,457 Open end and junior lien loans: Pass 137 541 357 63 75 0 1,173 5,841 7,014 Substandard 0 0 0 31 49 0 80 111 191 Not Rated 44,472 13,597 3,014 3,616 1,476 2,252 68,427 101,750 170,177 Total 44,609 14,138 3,371 3,710 1,600 2,252 69,680 107,702 177,382 Residential construction loans: Not Rated 14,463 2,167 897 291 129 1,223 19,170 0 19,170 Total 14,463 2,167 897 291 129 1,223 19,170 0 19,170 Other consumer loans: Pass 1,344 1,841 432 600 0 948 5,165 16,152 21,317 Substandard 0 0 0 210 0 0 210 0 210 Not Rated 24,395 14,563 9,168 3,606 2,755 1,352 55,839 10,492 66,331 Total 25,739 16,404 9,600 4,416 2,755 2,300 61,214 26,644 87,858 TOTAL $ 911,943 $ 653,839 $ 552,202 $ 310,151 $ 126,843 $ 297,056 $ 2,852,034 $ 1,858,362 $ 4,710,396 |
Schedule of Aging of the Amortized Cost Basis In Past Due Loans | The following table presents the aging of the amortized cost basis in past due loans as of June 30, 2023 by class of loans and loans past due 90 days or more and still accruing by class of loan: (dollars in thousands) Loans Not Past Due 30-89 Days Past Due Greater than 89 Days Past Due and Accruing Total Accruing Total Nonaccrual Nonaccrual With No Allowance For Credit Loss Total Commercial and industrial loans: Working capital lines of credit loans $ 612,932 $ 373 $ 0 $ 607,884 $ 5,421 $ 75 $ 618,726 Non-working capital loans 841,990 0 0 833,149 8,841 695 850,831 Commercial real estate and multi-family residential loans: Construction and land development loans 588,103 0 0 588,103 0 0 588,103 Owner occupied loans 802,589 0 0 799,666 2,923 1,440 805,512 Nonowner occupied loans 724,246 0 0 724,246 0 0 724,246 Multifamily loans 254,304 0 0 254,304 0 0 254,304 Agri-business and agricultural loans: Loans secured by farmland 176,635 41 0 176,561 115 0 176,791 Loans for agricultural production 198,255 0 0 198,255 0 0 198,255 Other commercial loans 120,757 0 0 120,757 0 0 120,757 Consumer 1‑4 family mortgage loans: Closed end first mortgage loans 227,988 268 8 227,770 494 343 228,758 Open end and junior lien loans 185,060 312 0 185,165 207 207 185,579 Residential construction loans 18,487 0 0 18,487 0 0 18,487 Other consumer loans 91,694 213 0 91,903 4 4 91,911 Total $ 4,843,040 $ 1,207 $ 8 $ 4,826,250 $ 18,005 $ 2,764 $ 4,862,260 The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2022 by class of loans and loans past due 90 days or more and still accruing by class of loan: (dollars in thousands) Loans Not Past Due 30-89 Days Past Due Greater than 89 Days Past Due and Accruing Total Accruing Total Nonaccrual Nonaccrual With No Allowance For Credit Loss Total Commercial and industrial loans: Working capital lines of credit loans $ 649,529 $ 68 $ 0 $ 649,597 $ 1,442 $ 0 $ 651,039 Non-working capital loans 830,033 39 1 830,073 11,622 727 841,695 Commercial real estate and multi-family residential loans: Construction and land development loans 515,168 0 0 515,168 0 0 515,168 Owner occupied loans 754,451 0 0 754,451 3,065 1,469 757,516 Nonowner occupied loans 705,662 0 0 705,662 0 0 705,662 Multifamily loans 196,941 0 0 196,941 0 0 196,941 Agri-business and agricultural loans: Loans secured by farmland 201,033 0 0 201,033 145 0 201,178 Loans for agricultural production 230,989 0 0 230,989 0 0 230,989 Other commercial loans 113,341 0 0 113,341 0 0 113,341 Consumer 1‑4 family mortgage loans: Closed end first mortgage loans 211,736 306 122 212,164 293 225 212,457 Open end and junior lien loans 176,758 436 0 177,194 188 188 177,382 Residential construction loans 19,170 0 0 19,170 0 0 19,170 Other consumer loans 87,333 316 0 87,649 209 6 87,858 Total $ 4,692,144 $ 1,165 $ 123 $ 4,693,432 $ 16,964 $ 2,615 $ 4,710,396 |
Schedule of Amortized Cost Basis Of Collateral Dependent Loans | The following tables present the amortized cost basis of collateral dependent loans by class of loan as of: June 30, 2023 (dollars in thousands) Real Estate General Other Total Commercial and industrial loans: Working capital lines of credit loans $ 50 $ 5,221 $ 0 $ 5,271 Non-working capital loans 474 8,043 229 8,746 Commercial real estate and multi-family residential loans: Owner occupied loans 638 1,483 1,161 3,282 Agri-business and agricultural loans: Loans secured by farmland 0 115 0 115 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 494 0 0 494 Open end and junior lien loans 207 0 0 207 Other consumer loans 0 0 4 4 Total $ 1,863 $ 14,862 $ 1,394 $ 18,119 December 31, 2022 (dollars in thousands) Real Estate General Other Total Commercial and industrial loans: Working capital lines of credit loans $ 50 $ 5,402 $ 0 $ 5,452 Non-working capital loans 544 18,109 229 18,882 Commercial real estate and multi-family residential loans: Owner occupied loans 413 1,491 1,161 3,065 Agri-business and agricultural loans: Loans secured by farmland 0 145 0 145 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 2,030 0 0 2,030 Open end and junior lien loans 188 0 0 188 Other consumer loans 0 0 7 7 Total $ 3,225 $ 25,147 $ 1,397 $ 29,769 |
Financing Receivable, Troubled Debt Restructuring | The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivables is also presented below: (dollars in thousands) Combination Principal Forgiveness, Term Extension and Interest Rate Reduction Total Class of Financing Receivable Three Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 1,600 0.20 % (dollars in thousands) Combination Principal Forgiveness, Term Extension and Interest Rate Reduction Total Class of Financing Receivable Six Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 1,600 0.20 % The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023: (dollars in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Total Class of Financing Receivable Three Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 9,380 Prime+0.75% reduced to 1.00% Fixed 260 months 0.20 % (dollars in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Total Class of Financing Receivable Six Months Ended June 30, 2023 Commercial and industrial loans: Non-working capital loans $ 9,380 Prime+0.75% reduced to 1.00% Fixed 260 months 0.20 % |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The tables below present the balances of assets measured at fair value on a recurring basis: June 30, 2023 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets: U.S. Treasury securities $ 3,232 $ 0 $ 0 $ 3,232 U.S. government sponsored agency securities 0 122,086 0 122,086 Mortgage-backed securities: residential 0 462,033 0 462,033 State and municipal securities 0 471,701 3,017 474,718 Total securities available-for-sale 3,232 1,055,820 3,017 1,062,069 Mortgage banking derivative 0 68 0 68 Interest rate swap derivative 0 35,660 0 35,660 Total assets $ 3,232 $ 1,091,548 $ 3,017 $ 1,097,797 Liabilities: Interest rate swap derivative 0 35,661 0 35,661 Total liabilities $ 0 $ 35,661 $ 0 $ 35,661 December 31, 2022 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets: U.S. Treasury securities $ 3,034 $ 0 $ 0 $ 3,034 U.S. government sponsored agency securities 0 126,961 0 126,961 Mortgage-backed securities: residential 0 492,308 0 492,308 State and municipal securities 0 561,150 2,075 563,225 Total securities available-for-sale 3,034 1,180,419 2,075 1,185,528 Mortgage banking derivative 0 43 0 43 Interest rate swap derivative 0 36,920 0 36,920 Total assets $ 3,034 $ 1,217,382 $ 2,075 $ 1,222,491 Liabilities: Interest rate swap derivative 0 36,921 0 36,921 Total liabilities $ 0 $ 36,921 $ 0 $ 36,921 |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | The tables below present the balances of assets measured at fair value on a nonrecurring basis: June 30, 2023 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets Collateral dependent loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 2,644 $ 2,644 Non-working capital loans 0 0 3,139 3,139 Commercial real estate and multi-family residential loans: Owner occupied loans 0 0 326 326 Agri-business and agricultural loans: Loans secured by farmland 0 0 25 25 Total collateral dependent loans 0 0 6,134 6,134 Other real estate owned 0 0 384 384 Total assets $ 0 $ 0 $ 6,518 $ 6,518 December 31, 2022 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 Assets Collateral dependent loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 3,178 $ 3,178 Non-working capital loans 0 0 8,354 8,354 Commercial real estate and multi-family residential loans: Owner occupied loans 0 0 425 425 Agri-business and agricultural loans: Loans secured by farmland 0 0 35 35 Total collateral dependent loans 0 0 11,992 11,992 Other real estate owned 0 0 100 100 Total assets $ 0 $ 0 $ 12,092 $ 12,092 |
Schedule of Fair Value Measured on Nonrecurring Basis Valuation Techniques | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2023: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Collateral dependent loans: Commercial and industrial $ 5,783 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 62 % 25%-99% Collateral dependent loans: Commercial real estate and multi-family residential loans 326 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 78 % Collateral dependent loans: Agri-business and agricultural 25 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 78 % Other real estate owned 384 Appraisals Discount to reflect current market conditions and ultimate collectability 36 % The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2022: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Collateral dependent loans: Commercial and industrial $ 11,532 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 62 % 29%-99% Collateral dependent loans: Commercial real estate and multi-family residential loans 425 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 57 % 37%-76% Collateral dependent loans: Agri-business and agricultural 35 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 76 % Other real estate owned 100 Appraisals Discount to reflect current market conditions and ultimate collectability 68 % |
Schedule of Fair Values and the Related Carrying Values of Financial Instruments | The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments. Items that are not financial instruments are not included. June 30, 2023 Carrying Estimated Fair Value (dollars in thousands) Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 173,137 $ 172,892 $ 245 $ 0 $ 173,137 Securities available-for-sale 1,062,069 3,232 1,055,820 3,017 1,062,069 Securities held-to-maturity 129,070 0 114,264 0 114,264 Real estate mortgages held-for-sale 1,298 0 1,342 0 1,342 Loans, net 4,790,202 0 0 4,606,769 4,606,769 Mortgage banking derivative 68 0 68 0 68 Interest rate swap derivative 35,660 0 35,660 0 35,660 Federal Reserve and Federal Home Loan Bank Stock 21,420 N/A N/A N/A N/A Accrued interest receivable 27,398 0 8,859 18,539 27,398 Financial Liabilities: Certificates of deposit 822,797 0 824,292 0 824,292 All other deposits 4,600,262 4,600,262 0 0 4,600,262 Federal Home Loan Bank advances 400,000 400,003 0 0 400,003 Interest rate swap derivative 35,661 0 35,661 0 35,661 Standby letters of credit 133 0 0 133 133 Accrued interest payable 9,833 441 9,392 0 9,833 December 31, 2022 Carrying Estimated Fair Value (dollars in thousands) Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 130,282 $ 129,069 $ 1,213 $ 0 $ 130,282 Securities available-for-sale 1,185,528 3,034 1,180,419 2,075 1,185,528 Securities held-to-maturity 128,242 0 111,029 0 111,029 Real estate mortgages held-for-sale 357 0 372 0 372 Loans, net 4,637,790 0 0 4,454,678 4,454,678 Mortgage banking derivative 43 0 43 0 43 Interest rate swap derivative 36,920 0 36,920 0 36,920 Federal Reserve and Federal Home Loan Bank Stock 15,795 N/A N/A N/A N/A Accrued interest receivable 27,994 0 9,598 18,396 27,994 Financial Liabilities: Certificates of deposit 626,186 0 621,206 0 621,206 All other deposits 4,834,434 4,834,434 0 0 4,834,434 Federal Funds purchased 22,000 22,000 0 0 22,000 Federal Home Loan Bank advances 275,000 275,000 0 0 275,000 Interest rate swap derivative 36,921 0 36,921 0 36,921 Standby letters of credit 249 0 0 249 249 Accrued interest payable 3,186 486 2,700 0 3,186 |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
OFFSETTING ASSETS AND LIABILITIES | |
Schedule of Offsetting Assets and Liability | The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at June 30, 2023 and December 31, 2022. June 30, 2023 Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Net Amount (dollars in thousands) Financial Instruments Cash Collateral Position Assets Interest Rate Swap Derivatives $ 35,660 $ 0 $ 35,660 $ 0 $ (27,965) $ 7,695 Total Assets $ 35,660 $ 0 $ 35,660 $ 0 $ (27,965) $ 7,695 Liabilities Interest Rate Swap Derivatives $ 35,661 $ 0 $ 35,661 $ 0 $ (90) $ 35,571 Total Liabilities $ 35,661 $ 0 $ 35,661 $ 0 $ (90) $ 35,571 December 31, 2022 Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Net Amount (dollars in thousands) Financial Instruments Cash Collateral Position Assets Interest Rate Swap Derivatives $ 36,920 $ 0 $ 36,920 $ 0 $ (34,185) $ 2,735 Total Assets $ 36,920 $ 0 $ 36,920 $ 0 $ (34,185) $ 2,735 Liabilities Interest Rate Swap Derivatives $ 36,921 $ 0 $ 36,921 $ 0 $ (90) $ 36,831 Total Liabilities $ 36,921 $ 0 $ 36,921 $ 0 $ (90) $ 36,831 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Weighted average shares outstanding for basic earnings per common share 25,607,663 25,527,896 25,595,412 25,521,618 Dilutive effect of stock based awards 78,691 169,681 100,958 178,290 Weighted average shares outstanding for diluted earnings per common share 25,686,354 25,697,577 25,696,370 25,699,908 Basic earnings per common share $ 0.57 $ 1.00 $ 1.52 $ 1.93 Diluted earnings per common share $ 0.57 $ 1.00 $ 1.51 $ 1.92 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income | The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the three months ended June 30, 2023 and 2022, all shown net of tax: (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at April 1, 2023 $ (166,612) $ (758) $ (167,370) Other comprehensive income (loss) before reclassification (10,674) 0 (10,674) Amounts reclassified from accumulated other comprehensive income (loss) 388 11 399 Net current period other comprehensive income (loss) (10,286) 11 (10,275) Balance at June 30, 2023 $ (176,898) $ (747) $ (177,645) (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at April 1, 2022 $ (92,751) $ (936) $ (93,687) Other comprehensive income (loss) before reclassification (65,179) 0 (65,179) Amounts reclassified from accumulated other comprehensive income (loss) 305 27 332 Net current period other comprehensive income (loss) (64,874) 27 (64,847) Balance at June 30, 2022 $ (157,625) $ (909) $ (158,534) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the six months ended June 30, 2023 and 2022, all shown net of tax: (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at January 1, 2023 $ (188,154) $ (769) $ (188,923) Other comprehensive income (loss) before reclassification 10,493 0 10,493 Amounts reclassified from accumulated other comprehensive income (loss) 763 22 785 Net current period other comprehensive income (loss) 11,256 22 11,278 Balance at June 30, 2023 $ (176,898) $ (747) $ (177,645) (dollars in thousands) Unrealized Gains and Losses on Available- Defined Benefit Pension Items Total Balance at January 1, 2022 $ 17,056 $ (963) $ 16,093 Other comprehensive income (loss) before reclassification (174,986) 0 (174,986) Amounts reclassified from accumulated other comprehensive income (loss) 305 54 359 Net current period other comprehensive income (loss) (174,681) 54 (174,627) Balance at June 30, 2022 $ (157,625) $ (909) $ (158,534) |
Schedule of Reclassification Accumulated Other Comprehensive Income | Reclassifications out of other accumulated other comprehensive income (loss) for the three months ended June 30, 2023 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (494) Interest income Realized gains and (losses) on available-for-sale securities 3 Net securities gains Tax effect 103 Income tax expense (388) Net of tax Amortization of defined benefit pension items (15) Other expense Tax effect 4 Income tax expense (11) Net of tax Total reclassifications for the period $ (399) Net income Reclassifications out of other accumulated comprehensive income (loss) for the three months ended June 30, 2022 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (386) Interest income Tax effect 81 Income tax expense (305) Net of tax Amortization of defined benefit pension items (36) Other expense Tax effect 9 Income tax expense (27) Net of tax Total reclassifications for the period $ (332) Net income Reclassifications out of accumulated comprehensive loss for the six months ended June 30, 2023 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (985) Interest income Realized gains and (losses) on available-for-sale securities 19 Net securities gains Tax effect 203 Income tax expense (763) Net of tax Amortization of defined benefit pension items (30) Other expense Tax effect 8 Income tax expense (22) Net of tax Total reclassifications for the period $ (785) Net income Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2022 are as follows: Details about Amount Affected Line Item (dollars in thousands) Amortization of unrealized losses on held-to-maturity securities $ (386) Interest income Tax effect 81 Income tax expense (305) Net of tax Amortization of defined benefit pension items (72) Other expense Tax effect 18 Income tax expense (54) Net of tax Total reclassifications for the period $ (359) Net income |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Maturity Analysis of the Operating Lease Liabilities | The following is a maturity analysis of the operating lease liabilities as of June 30, 2023: Years ending December 31, (in thousands) Operating Lease Obligation 2023 $ 365 2024 744 2025 756 2026 730 2027 753 2028 and thereafter 2,185 Total undiscounted lease payments 5,533 Less imputed interest (534) Lease liability $ 4,999 Right-of-use asset $ 4,999 |
Schedule of Lease Cost | Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2023 2022 2023 2022 Lease cost Operating lease cost $ 300 $ 163 $ 478 $ 333 Short-term lease cost 4 8 8 14 Total lease cost $ 304 $ 171 $ 486 $ 347 Other information Operating cash outflows from operating leases $ 300 $ 163 $ 478 $ 333 Weighted-average remaining lease term - operating leases 6.8 years 8.5 years 6.8 years 8.5 years Weighted average discount rate - operating leases 2.5 % 2.5 % 2.5 % 2.5 % |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 6 Months Ended |
Jun. 30, 2023 subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | 2 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available For Sale and Held to Maturity Securities (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Abstract] | ||
Amortized Cost | $ 1,264,061,000 | $ 1,400,783,000 |
Gross Unrealized Gain | 44,000 | 224,000 |
Gross Unrealized Losses | (202,036,000) | (215,479,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 1,062,069,000 | 1,185,528,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Amortized Cost | 3,251,000 | 3,057,000 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | (19,000) | (23,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 3,232,000 | 3,034,000 |
U.S. government sponsored agencies | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Amortized Cost | 151,029,000 | 156,184,000 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | (28,943,000) | (29,223,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 122,086,000 | 126,961,000 |
Mortgage-backed securities: residential | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Amortized Cost | 545,616,000 | 578,175,000 |
Gross Unrealized Gain | 34,000 | 67,000 |
Gross Unrealized Losses | (83,617,000) | (85,934,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 462,033,000 | 492,308,000 |
State and municipal securities | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Amortized Cost | 564,165,000 | 663,367,000 |
Gross Unrealized Gain | 10,000 | 157,000 |
Gross Unrealized Losses | (89,457,000) | (100,299,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 474,718,000 | $ 563,225,000 |
SECURITIES - Held-to-Maturity S
SECURITIES - Held-to-Maturity Securities (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 129,070,000 | $ 128,242,000 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 114,264,000 | 111,029,000 |
State and municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 129,070,000 | 128,242,000 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | (14,806,000) | (17,213,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 114,264,000 | $ 111,029,000 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2022 |
Investments, Debt and Equity Securities [Abstract] | |||
Fair value of held-to-maturity securities transferred from available-for sale | $ 127,000,000 | ||
Unrealized loss of held-to-maturity securities transferred from available-for sale | $ 24,400,000 | 21,900,000 | |
Unrealized loss of held-to-maturity securities transferred from available-for sale, net of tax | 19,300,000 | $ 17,300,000 | |
Available-for-sale Securities pledged as collateral | 811,100,000 | $ 298,200,000 | |
Allowance for credit losses | 0 | 0 | |
Allowance for Credit Losses | 0 | 0 | |
Accrued interest receivable on available-for-sale debt securities | $ 7,900,000 | $ 8,900,000 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities By Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 4,331 | |
Due after one year through five years | 8,799 | |
Due after five years through ten years | 30,996 | |
Due after ten years | 674,319 | |
Total available-for-sale securities, gross | 718,445 | |
Mortgage-backed securities | 545,616 | |
Amortized Cost | 1,264,061 | $ 1,400,783 |
Fair Value | ||
Due in one year or less | 4,312 | |
Due after one year through five years | 8,052 | |
Due after five years through ten years | 29,763 | |
Due after ten years | 557,909 | |
Total available-for-sale securities, gross | 600,036 | |
Mortgage-backed securities | 462,033 | |
Total securities available-for-sale | 1,062,069 | 1,185,528 |
Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 129,070 | |
Total held-to-maturity securities, gross | 129,070 | |
Mortgage-backed securities | 0 | |
Amortized Cost | 129,070 | |
Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 114,264 | |
Total held-to-maturity securities, gross | 114,264 | |
Mortgage-backed securities | 0 | |
Fair Value | $ 114,264 | $ 111,029 |
SECURITIES - Schedule of Sales
SECURITIES - Schedule of Sales of Securities Available For Sale (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) security | Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) security | |
Sales of securities available-for-sale | ||||
Proceeds | $ 12,480 | $ 0 | $ 99,951 | $ 0 |
Gross gains | 28 | 0 | 439 | 0 |
Gross losses | $ (25) | $ 0 | $ (420) | $ 0 |
Number of securities | security | 22 | 0 | 103 | 0 |
SECURITIES - Unrealized Loss An
SECURITIES - Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities | ||
Less than 12 months, fair value | $ 67,992 | $ 455,318 |
12 months or more, fair value | 980,616 | 686,704 |
Total fair value | 1,048,608 | 1,142,022 |
Less than 12 months, unrealized losses | 2,934 | 53,415 |
12 Months or more, unrealized losses | 199,102 | 162,064 |
Total unrealized losses | 202,036 | 215,479 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities | ||
Less than 12 months, fair value | 2,836 | 3,034 |
12 months or more, fair value | 396 | 0 |
Total fair value | 3,232 | 3,034 |
Less than 12 months, unrealized losses | 17 | 23 |
12 Months or more, unrealized losses | 2 | 0 |
Total unrealized losses | 19 | 23 |
U.S. government sponsored agencies | ||
Schedule of Available-for-sale Securities | ||
Less than 12 months, fair value | 0 | 8,420 |
12 months or more, fair value | 122,086 | 118,541 |
Total fair value | 122,086 | 126,961 |
Less than 12 months, unrealized losses | 0 | 1,350 |
12 Months or more, unrealized losses | 28,943 | 27,873 |
Total unrealized losses | 28,943 | 29,223 |
Mortgage-backed securities: residential | ||
Schedule of Available-for-sale Securities | ||
Less than 12 months, fair value | 23,595 | 165,897 |
12 months or more, fair value | 436,450 | 323,727 |
Total fair value | 460,045 | 489,624 |
Less than 12 months, unrealized losses | 1,374 | 18,637 |
12 Months or more, unrealized losses | 82,243 | 67,297 |
Total unrealized losses | 83,617 | 85,934 |
State and municipal securities | ||
Schedule of Available-for-sale Securities | ||
Less than 12 months, fair value | 41,561 | 277,967 |
12 months or more, fair value | 421,684 | 244,436 |
Total fair value | 463,245 | 522,403 |
Less than 12 months, unrealized losses | 1,543 | 33,405 |
12 Months or more, unrealized losses | 87,914 | 66,894 |
Total unrealized losses | $ 89,457 | $ 100,299 |
SECURITIES - Held-to-maturity_2
SECURITIES - Held-to-maturity Securities With Unrealized Losses (Details) - State and municipal securities - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 0 | $ 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or more, fair value | 114,264 | 111,029 |
12 Months or more, unrealized losses | 14,806 | 17,213 |
Total fair value | 114,264 | 111,029 |
Unrealized losses | $ 14,806 | $ 17,213 |
SECURITIES - Quantitative Discl
SECURITIES - Quantitative Disclosure of Available For Sale of Securities (Details) - position | Jun. 30, 2023 | Dec. 31, 2022 |
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 93 | 372 |
12 months or more | 487 | 280 |
Total | 580 | 652 |
U.S. Treasury securities | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 8 | 7 |
12 months or more | 1 | 0 |
Total | 9 | 7 |
U.S. government sponsored agencies | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 0 | 1 |
12 months or more | 17 | 16 |
Total | 17 | 17 |
Mortgage-backed securities: residential | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 29 | 95 |
12 months or more | 102 | 41 |
Total | 131 | 136 |
State and municipal securities | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 56 | 269 |
12 months or more | 367 | 223 |
Total | 423 | 492 |
SECURITIES - Quantitative Dis_2
SECURITIES - Quantitative Disclosure of Held to Maturity Securities (Details) - position | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 41 | 41 |
Total | 41 | 41 |
U.S. Treasury securities | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
U.S. government sponsored agencies | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Mortgage-backed securities: residential | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
State and municipal securities | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 41 | 41 |
Total | 41 | 41 |
LOANS - Total Loans Outstanding
LOANS - Total Loans Outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 4,865,724 | $ 4,713,465 | ||||
Percentage of loans receivable | 100% | 100% | ||||
Less: Allowance for credit losses | $ (72,058) | $ (72,606) | $ (71,215) | $ (67,523) | $ (67,526) | $ (67,773) |
Net deferred loan fees | (3,464) | (3,069) | ||||
Loans, net | 4,790,202 | 4,637,790 | ||||
Total commercial loans | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 4,342,200 | $ 4,217,824 | ||||
Percentage of loans receivable | 89.20% | 89.50% | ||||
Total consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 523,524 | $ 495,641 | ||||
Percentage of loans receivable | 10.80% | 10.50% | ||||
Other consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 92,139 | $ 88,075 | ||||
Percentage of loans receivable | 1.90% | 1.90% | ||||
Commercial and industrial loans: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 1,469,887 | $ 1,493,049 | ||||
Percentage of loans receivable | 30.20% | 31.70% | ||||
Commercial and industrial loans: | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: Allowance for credit losses | $ (30,978) | $ (35,290) | (31,190) | (31,195) | (31,322) | (30,595) |
Commercial and industrial loans: | Working capital lines of credit loans | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 618,655 | $ 650,948 | ||||
Percentage of loans receivable | 12.70% | 13.80% | ||||
Commercial and industrial loans: | Non-working capital loans | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 851,232 | $ 842,101 | ||||
Percentage of loans receivable | 17.50% | 17.90% | ||||
Commercial real estate and multi-family residential loans: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 2,376,393 | $ 2,179,094 | ||||
Percentage of loans receivable | 48.80% | 46.20% | ||||
Commercial real estate and multi-family residential loans: | Construction and land development loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 590,860 | $ 517,664 | ||||
Percentage of loans receivable | 12.10% | 11% | ||||
Commercial real estate and multi-family residential loans: | Owner occupied loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 806,072 | $ 758,091 | ||||
Percentage of loans receivable | 16.60% | 16% | ||||
Commercial real estate and multi-family residential loans: | Nonowner occupied loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 724,799 | $ 706,107 | ||||
Percentage of loans receivable | 14.90% | 15% | ||||
Commercial real estate and multi-family residential loans: | Multifamily loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 254,662 | $ 197,232 | ||||
Percentage of loans receivable | 5.20% | 4.20% | ||||
Agri-business and agricultural loans: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 374,962 | $ 432,088 | ||||
Percentage of loans receivable | 7.70% | 9.20% | ||||
Agri-business and agricultural loans: | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: Allowance for credit losses | $ (4,402) | $ (4,429) | $ (4,621) | $ (4,753) | $ (4,761) | $ (5,034) |
Agri-business and agricultural loans: | Loans secured by farmland | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 176,807 | $ 201,200 | ||||
Percentage of loans receivable | 3.60% | 4.30% | ||||
Agri-business and agricultural loans: | Loans for agricultural production | Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 198,155 | $ 230,888 | ||||
Percentage of loans receivable | 4.10% | 4.90% | ||||
Other commercial loans: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 120,958 | $ 113,593 | ||||
Percentage of loans receivable | 2.50% | 2.40% | ||||
Consumer 1-4 family mortgage loans: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 431,385 | $ 407,566 | ||||
Percentage of loans receivable | 8.90% | 8.60% | ||||
Consumer 1-4 family mortgage loans: | Closed end first mortgage loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 229,078 | $ 212,742 | ||||
Percentage of loans receivable | 4.70% | 4.50% | ||||
Consumer 1-4 family mortgage loans: | Open end and junior lien loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 183,738 | $ 175,575 | ||||
Percentage of loans receivable | 3.80% | 3.70% | ||||
Consumer 1-4 family mortgage loans: | Residential construction and land development loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable before allowance for credit loss | $ 18,569 | $ 19,249 | ||||
Percentage of loans receivable | 0.40% | 0.40% |
LOANS - Additional Information
LOANS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Investment loans excluding accrued interest | $ 18,500 | $ 18,400 |
Residential real estate loans in the process of foreclosure | $ 471 | $ 306 |
ALLOWANCE FOR CREDIT LOSSES A_3
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | $ 71,215 | $ 67,526 | $ 72,606 | $ 67,773 |
Provision for credit losses | 800 | 0 | 5,150 | 417 |
Loans charged-off | (390) | (98) | (6,286) | (838) |
Recoveries | 433 | 95 | 588 | 171 |
Net loans (charged-off) recovered | 43 | (3) | (5,698) | (667) |
Ending balance | 72,058 | 67,523 | 72,058 | 67,523 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 840 | 482 | 554 | 450 |
Provision for credit losses | (489) | 165 | (203) | 197 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net loans (charged-off) recovered | 0 | 0 | 0 | 0 |
Ending balance | 351 | 647 | 351 | 647 |
Commercial Portfolio Segment | Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 31,190 | 31,322 | 35,290 | 30,595 |
Provision for credit losses | (272) | (139) | 1,232 | 591 |
Loans charged-off | (7) | (13) | (5,651) | (32) |
Recoveries | 67 | 25 | 107 | 41 |
Net loans (charged-off) recovered | 60 | 12 | (5,544) | 9 |
Ending balance | 30,978 | 31,195 | 30,978 | 31,195 |
Commercial Portfolio Segment | Commercial Real Estate and Multifamily Residential | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 29,036 | 26,257 | 27,394 | 26,535 |
Provision for credit losses | 1,593 | 191 | 3,235 | 510 |
Loans charged-off | 0 | 0 | 0 | (597) |
Recoveries | 284 | 0 | 284 | 0 |
Net loans (charged-off) recovered | 284 | 0 | 284 | (597) |
Ending balance | 30,913 | 26,448 | 30,913 | 26,448 |
Commercial Portfolio Segment | Agri-business and Agricultural | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 4,621 | 4,761 | 4,429 | 5,034 |
Provision for credit losses | (219) | (8) | (27) | (281) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net loans (charged-off) recovered | 0 | 0 | 0 | 0 |
Ending balance | 4,402 | 4,753 | 4,402 | 4,753 |
Commercial Portfolio Segment | Other Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 1,034 | 1,058 | 917 | 1,146 |
Provision for credit losses | 86 | (345) | 203 | (433) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net loans (charged-off) recovered | 0 | 0 | 0 | 0 |
Ending balance | 1,120 | 713 | 1,120 | 713 |
Consumer Portfolio Segment | Consumer 1-4 Family Mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 3,398 | 2,606 | 3,001 | 2,866 |
Provision for credit losses | 51 | 34 | 445 | (214) |
Loans charged-off | (14) | 0 | (14) | (22) |
Recoveries | 13 | 34 | 16 | 44 |
Net loans (charged-off) recovered | (1) | 34 | 2 | 22 |
Ending balance | 3,448 | 2,674 | 3,448 | 2,674 |
Consumer Portfolio Segment | Other Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Beginning balance | 1,096 | 1,040 | 1,021 | 1,147 |
Provision for credit losses | 50 | 102 | 265 | 47 |
Loans charged-off | (369) | (85) | (621) | (187) |
Recoveries | 69 | 36 | 181 | 86 |
Net loans (charged-off) recovered | (300) | (49) | (440) | (101) |
Ending balance | $ 846 | $ 1,093 | $ 846 | $ 1,093 |
ALLOWANCE FOR CREDIT LOSSES A_4
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable before allowance for credit loss | $ 4,862,260 | $ 4,710,396 |
PPP | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable before allowance for credit loss | $ 1,500 | $ 1,500 |
ALLOWANCE FOR CREDIT LOSSES A_5
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Risk Category of Loans by Loan Segment and Origination (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | $ 498,867 | $ 911,943 |
Year Two | 834,003 | 653,839 |
Year Three | 606,781 | 552,202 |
Year Four | 513,510 | 310,151 |
Year Five | 263,486 | 126,843 |
Prior | 354,007 | 297,056 |
Term Total | 3,070,654 | 2,852,034 |
Revolving | 1,791,606 | 1,858,362 |
Total | 4,862,260 | 4,710,396 |
2023 | 0 | |
2022 | 5,591 | |
2021 | 105 | |
2020 | 6 | |
2019 | 330 | |
Prior | 1 | |
Term Total | 6,033 | |
Revolving | 253 | |
Total | 6,286 | |
Other commercial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 6,213 | 27,097 |
Year Two | 26,450 | 4,815 |
Year Three | 39,302 | 17,911 |
Year Four | 16,627 | 147 |
Year Five | 111 | 931 |
Prior | 10,852 | 14,145 |
Term Total | 99,555 | 65,046 |
Revolving | 21,202 | 48,295 |
Total | 120,757 | 113,341 |
Working capital lines of credit loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 115 | |
Total | 115 | |
Working capital lines of credit loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 231 | 2,407 |
Year Two | 2,242 | 2,718 |
Year Three | 2,543 | 1,601 |
Year Four | 1,366 | 300 |
Year Five | 250 | 0 |
Prior | 0 | 0 |
Term Total | 6,632 | 7,026 |
Revolving | 612,094 | 644,013 |
Total | 618,726 | 651,039 |
Non-working capital loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 5,400 | |
2021 | 0 | |
2020 | 0 | |
2019 | 118 | |
Prior | 0 | |
Term Total | 5,518 | |
Revolving | 18 | |
Total | 5,536 | |
Non-working capital loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 107,918 | 287,443 |
Year Two | 275,349 | 128,642 |
Year Three | 110,725 | 98,125 |
Year Four | 81,124 | 48,427 |
Year Five | 41,382 | 11,611 |
Prior | 24,574 | 20,633 |
Term Total | 641,072 | 594,881 |
Revolving | 209,759 | 246,814 |
Total | 850,831 | 841,695 |
Construction and land development loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Construction and land development loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 23,520 | 26,889 |
Year Two | 15,289 | 19,944 |
Year Three | 10,218 | 14,026 |
Year Four | 13,306 | 356 |
Year Five | 179 | 0 |
Prior | 0 | 0 |
Term Total | 62,512 | 61,215 |
Revolving | 525,591 | 453,953 |
Total | 588,103 | 515,168 |
Owner occupied loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Owner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 88,994 | 116,924 |
Year Two | 132,288 | 186,727 |
Year Three | 171,046 | 141,371 |
Year Four | 136,732 | 98,172 |
Year Five | 69,276 | 68,171 |
Prior | 149,953 | 105,618 |
Term Total | 748,289 | 716,983 |
Revolving | 57,223 | 40,533 |
Total | 805,512 | 757,516 |
Nonowner occupied loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Nonowner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 65,333 | 194,294 |
Year Two | 165,517 | 136,214 |
Year Three | 129,244 | 134,661 |
Year Four | 131,928 | 91,907 |
Year Five | 89,591 | 15,109 |
Prior | 62,994 | 64,874 |
Term Total | 644,607 | 637,059 |
Revolving | 79,639 | 68,603 |
Total | 724,246 | 705,662 |
Multifamily loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Multifamily loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 98,720 | 60,315 |
Year Two | 38,445 | 25,741 |
Year Three | 9,134 | 36,929 |
Year Four | 36,289 | 35,695 |
Year Five | 33,831 | 2,046 |
Prior | 30,441 | 28,866 |
Term Total | 246,860 | 189,592 |
Revolving | 7,444 | 7,349 |
Total | 254,304 | 196,941 |
Loans secured by farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Loans secured by farmland | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 15,727 | 38,604 |
Year Two | 33,900 | 28,684 |
Year Three | 26,271 | 31,417 |
Year Four | 29,075 | 11,436 |
Year Five | 10,124 | 8,145 |
Prior | 23,325 | 19,798 |
Term Total | 138,422 | 138,084 |
Revolving | 38,369 | 63,094 |
Total | 176,791 | 201,178 |
Loans for agricultural production | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Loans for agricultural production | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 25,929 | 6,987 |
Year Two | 8,801 | 30,505 |
Year Three | 28,958 | 29,429 |
Year Four | 27,232 | 4,553 |
Year Five | 4,111 | 9,248 |
Prior | 11,513 | 4,539 |
Term Total | 106,544 | 85,261 |
Revolving | 91,711 | 145,728 |
Total | 198,255 | 230,989 |
Other commercial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Closed end first mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Closed end first mortgage loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 35,748 | 66,172 |
Year Two | 63,981 | 57,140 |
Year Three | 52,895 | 32,864 |
Year Four | 28,725 | 10,741 |
Year Five | 9,087 | 7,098 |
Prior | 33,715 | 32,808 |
Term Total | 224,151 | 206,823 |
Revolving | 4,607 | 5,634 |
Total | 228,758 | 212,457 |
Open end and junior lien loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 14 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 14 | |
Revolving | 0 | |
Total | 14 | |
Open end and junior lien loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 13,422 | 44,609 |
Year Two | 36,546 | 14,138 |
Year Three | 11,206 | 3,371 |
Year Four | 2,450 | 3,710 |
Year Five | 2,852 | 1,600 |
Prior | 2,557 | 2,252 |
Term Total | 69,033 | 69,680 |
Revolving | 116,546 | 107,702 |
Total | 185,579 | 177,382 |
Residential construction loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 0 | |
Total | 0 | |
Residential construction loans: | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 1,041 | 14,463 |
Year Two | 13,374 | 2,167 |
Year Three | 1,604 | 897 |
Year Four | 871 | 291 |
Year Five | 276 | 129 |
Prior | 1,321 | 1,223 |
Term Total | 18,487 | 19,170 |
Revolving | 0 | 0 |
Total | 18,487 | 19,170 |
Other consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 191 | |
2021 | 91 | |
2020 | 6 | |
2019 | 212 | |
Prior | 1 | |
Term Total | 501 | |
Revolving | 120 | |
Total | 621 | |
Other consumer loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 16,071 | 25,739 |
Year Two | 21,821 | 16,404 |
Year Three | 13,635 | 9,600 |
Year Four | 7,785 | 4,416 |
Year Five | 2,416 | 2,755 |
Prior | 2,762 | 2,300 |
Term Total | 64,490 | 61,214 |
Revolving | 27,421 | 26,644 |
Total | 91,911 | 87,858 |
Pass | Other commercial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 6,213 | 27,097 |
Year Two | 26,450 | 4,815 |
Year Three | 39,302 | 17,911 |
Year Four | 15,524 | 147 |
Year Five | 111 | 931 |
Prior | 8,059 | 10,985 |
Term Total | 95,659 | 61,886 |
Revolving | 21,202 | 48,295 |
Total | 116,861 | 110,181 |
Pass | Working capital lines of credit loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 231 | 2,207 |
Year Two | 2,042 | 2,718 |
Year Three | 2,468 | 1,601 |
Year Four | 1,366 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Term Total | 6,107 | 6,526 |
Revolving | 535,802 | 597,108 |
Total | 541,909 | 603,634 |
Pass | Non-working capital loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 106,680 | 272,273 |
Year Two | 267,890 | 124,600 |
Year Three | 107,070 | 91,850 |
Year Four | 73,313 | 47,711 |
Year Five | 38,285 | 9,981 |
Prior | 17,517 | 13,670 |
Term Total | 610,755 | 560,085 |
Revolving | 203,682 | 240,490 |
Total | 814,437 | 800,575 |
Pass | Construction and land development loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 23,520 | 26,889 |
Year Two | 15,289 | 19,944 |
Year Three | 10,218 | 14,026 |
Year Four | 13,306 | 356 |
Year Five | 179 | 0 |
Prior | 0 | 0 |
Term Total | 62,512 | 61,215 |
Revolving | 511,070 | 453,953 |
Total | 573,582 | 515,168 |
Pass | Owner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 88,769 | 113,656 |
Year Two | 131,307 | 179,014 |
Year Three | 161,898 | 139,880 |
Year Four | 135,249 | 97,353 |
Year Five | 66,660 | 65,519 |
Prior | 136,902 | 97,335 |
Term Total | 720,785 | 692,757 |
Revolving | 57,223 | 40,533 |
Total | 778,008 | 733,290 |
Pass | Nonowner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 61,069 | 194,294 |
Year Two | 165,517 | 125,190 |
Year Three | 122,798 | 134,661 |
Year Four | 131,928 | 91,907 |
Year Five | 89,591 | 15,109 |
Prior | 62,994 | 64,874 |
Term Total | 633,897 | 626,035 |
Revolving | 79,639 | 68,603 |
Total | 713,536 | 694,638 |
Pass | Multifamily loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 78,926 | 38,460 |
Year Two | 38,445 | 25,741 |
Year Three | 9,134 | 36,929 |
Year Four | 36,289 | 35,695 |
Year Five | 33,831 | 2,046 |
Prior | 30,441 | 28,866 |
Term Total | 227,066 | 167,737 |
Revolving | 7,444 | 7,349 |
Total | 234,510 | 175,086 |
Pass | Loans secured by farmland | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 15,727 | 38,344 |
Year Two | 33,900 | 28,684 |
Year Three | 26,271 | 29,741 |
Year Four | 29,075 | 9,656 |
Year Five | 10,112 | 8,145 |
Prior | 23,210 | 19,638 |
Term Total | 138,295 | 134,208 |
Revolving | 38,369 | 63,094 |
Total | 176,664 | 197,302 |
Pass | Loans for agricultural production | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 25,929 | 6,040 |
Year Two | 8,801 | 30,262 |
Year Three | 28,747 | 22,167 |
Year Four | 26,880 | 3,625 |
Year Five | 4,111 | 9,248 |
Prior | 11,513 | 4,539 |
Term Total | 105,981 | 75,881 |
Revolving | 91,211 | 143,599 |
Total | 197,192 | 219,480 |
Pass | Closed end first mortgage loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 5,795 | 8,768 |
Year Two | 10,782 | 12,809 |
Year Three | 12,147 | 12,289 |
Year Four | 10,249 | 4,805 |
Year Five | 4,647 | 4,045 |
Prior | 6,286 | 3,860 |
Term Total | 49,906 | 46,576 |
Revolving | 4,607 | 5,634 |
Total | 54,513 | 52,210 |
Pass | Open end and junior lien loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 318 | 137 |
Year Two | 136 | 541 |
Year Three | 516 | 357 |
Year Four | 345 | 63 |
Year Five | 0 | 75 |
Prior | 26 | 0 |
Term Total | 1,341 | 1,173 |
Revolving | 8,803 | 5,841 |
Total | 10,144 | 7,014 |
Pass | Other consumer loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 1,955 | 1,344 |
Year Two | 827 | 1,841 |
Year Three | 1,586 | 432 |
Year Four | 383 | 600 |
Year Five | 0 | 0 |
Prior | 0 | 948 |
Term Total | 4,751 | 5,165 |
Revolving | 16,589 | 16,152 |
Total | 21,340 | 21,317 |
Special Mention | Other commercial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 1,103 | 0 |
Year Five | 0 | 0 |
Prior | 2,793 | 3,160 |
Term Total | 3,896 | 3,160 |
Revolving | 0 | 0 |
Total | 3,896 | 3,160 |
Special Mention | Working capital lines of credit loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Term Total | 0 | 0 |
Revolving | 69,844 | 36,410 |
Total | 69,844 | 36,410 |
Special Mention | Non-working capital loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 448 |
Year Two | 429 | 1,620 |
Year Three | 1,356 | 0 |
Year Four | 2,696 | 109 |
Year Five | 2,818 | 159 |
Prior | 6,333 | 2,961 |
Term Total | 13,632 | 5,297 |
Revolving | 5,679 | 2,153 |
Total | 19,311 | 7,450 |
Special Mention | Construction and land development loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 0 | |
Term Total | 0 | |
Revolving | 14,521 | |
Total | 14,521 | |
Special Mention | Owner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 2,960 |
Year Two | 702 | 7,608 |
Year Three | 9,148 | 0 |
Year Four | 0 | 446 |
Year Five | 2,257 | 1,491 |
Prior | 11,890 | 8,054 |
Term Total | 23,997 | 20,559 |
Revolving | 0 | 0 |
Total | 23,997 | 20,559 |
Special Mention | Nonowner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 4,264 | 0 |
Year Two | 0 | 11,024 |
Year Three | 6,446 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Term Total | 10,710 | 11,024 |
Revolving | 0 | 0 |
Total | 10,710 | 11,024 |
Special Mention | Multifamily loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 19,794 | 21,855 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Term Total | 19,794 | 21,855 |
Revolving | 0 | 0 |
Total | 19,794 | 21,855 |
Special Mention | Loans secured by farmland | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 260 |
Year Two | 0 | 0 |
Year Three | 0 | 1,676 |
Year Four | 0 | 1,780 |
Year Five | 12 | 0 |
Prior | 0 | 15 |
Term Total | 12 | 3,731 |
Revolving | 0 | 0 |
Total | 12 | 3,731 |
Special Mention | Loans for agricultural production | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 947 |
Year Two | 0 | 243 |
Year Three | 211 | 7,262 |
Year Four | 352 | 928 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Term Total | 563 | 9,380 |
Revolving | 500 | 2,129 |
Total | 1,063 | 11,509 |
Special Mention | Closed end first mortgage loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 552 |
Year Four | 535 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Term Total | 535 | 552 |
Revolving | 0 | 0 |
Total | 535 | 552 |
Substandard | Working capital lines of credit loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 200 |
Year Two | 200 | 0 |
Year Three | 75 | 0 |
Year Four | 0 | 300 |
Year Five | 250 | 0 |
Prior | 0 | 0 |
Term Total | 525 | 500 |
Revolving | 6,448 | 10,495 |
Total | 6,973 | 10,995 |
Substandard | Non-working capital loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 226 | 11,831 |
Year Two | 4,525 | 872 |
Year Three | 1,120 | 5,021 |
Year Four | 4,064 | 194 |
Year Five | 11 | 1,351 |
Prior | 657 | 3,979 |
Term Total | 10,603 | 23,248 |
Revolving | 398 | 4,171 |
Total | 11,001 | 27,419 |
Substandard | Owner occupied loans | Commercial Real Estate and Multifamily Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 225 | 308 |
Year Two | 279 | 105 |
Year Three | 0 | 1,491 |
Year Four | 1,483 | 373 |
Year Five | 359 | 1,161 |
Prior | 1,161 | 229 |
Term Total | 3,507 | 3,667 |
Revolving | 0 | 0 |
Total | 3,507 | 3,667 |
Substandard | Loans secured by farmland | Agri-business and agricultural loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 115 | 145 |
Term Total | 115 | 145 |
Revolving | 0 | 0 |
Total | 115 | 145 |
Substandard | Closed end first mortgage loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 96 | 0 |
Year Four | 131 | 0 |
Year Five | 0 | 83 |
Prior | 263 | 1,944 |
Term Total | 490 | 2,027 |
Revolving | 0 | 0 |
Total | 490 | 2,027 |
Substandard | Open end and junior lien loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 31 |
Year Five | 28 | 49 |
Prior | 48 | 0 |
Term Total | 76 | 80 |
Revolving | 133 | 111 |
Total | 209 | 191 |
Substandard | Other consumer loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 210 |
Year Five | 5 | 0 |
Prior | 0 | 0 |
Term Total | 5 | 210 |
Revolving | 0 | 0 |
Total | 5 | 210 |
Not Rated | Non-working capital loans | Commercial and industrial loans: | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 1,012 | 2,891 |
Year Two | 2,505 | 1,550 |
Year Three | 1,179 | 1,254 |
Year Four | 1,051 | 413 |
Year Five | 268 | 120 |
Prior | 67 | 23 |
Term Total | 6,082 | 6,251 |
Revolving | 0 | 0 |
Total | 6,082 | 6,251 |
Not Rated | Closed end first mortgage loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 29,953 | 57,404 |
Year Two | 53,199 | 44,331 |
Year Three | 40,652 | 20,023 |
Year Four | 17,810 | 5,936 |
Year Five | 4,440 | 2,970 |
Prior | 27,166 | 27,004 |
Term Total | 173,220 | 157,668 |
Revolving | 0 | 0 |
Total | 173,220 | 157,668 |
Not Rated | Open end and junior lien loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 13,104 | 44,472 |
Year Two | 36,410 | 13,597 |
Year Three | 10,690 | 3,014 |
Year Four | 2,105 | 3,616 |
Year Five | 2,824 | 1,476 |
Prior | 2,483 | 2,252 |
Term Total | 67,616 | 68,427 |
Revolving | 107,610 | 101,750 |
Total | 175,226 | 170,177 |
Not Rated | Residential construction loans: | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 1,041 | 14,463 |
Year Two | 13,374 | 2,167 |
Year Three | 1,604 | 897 |
Year Four | 871 | 291 |
Year Five | 276 | 129 |
Prior | 1,321 | 1,223 |
Term Total | 18,487 | 19,170 |
Revolving | 0 | 0 |
Total | 18,487 | 19,170 |
Not Rated | Other consumer loans | Consumer 1-4 Family Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year One | 14,116 | 24,395 |
Year Two | 20,994 | 14,563 |
Year Three | 12,049 | 9,168 |
Year Four | 7,402 | 3,606 |
Year Five | 2,411 | 2,755 |
Prior | 2,762 | 1,352 |
Term Total | 59,734 | 55,839 |
Revolving | 10,832 | 10,492 |
Total | $ 70,566 | $ 66,331 |
ALLOWANCE FOR CREDIT LOSSES A_6
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Aging Of The Amortized Cost In Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | $ 4,862,260 | $ 4,710,396 |
Total Nonaccrual | 18,005 | 16,964 |
Nonaccrual With No Allowance For Credit Loss | 2,764 | 2,615 |
Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 4,843,040 | 4,692,144 |
30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 1,207 | 1,165 |
Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 8 | 123 |
Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 4,826,250 | 4,693,432 |
Commercial and industrial loans: | Working capital lines of credit loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 618,726 | 651,039 |
Total Nonaccrual | 5,421 | 1,442 |
Nonaccrual With No Allowance For Credit Loss | 75 | 0 |
Commercial and industrial loans: | Working capital lines of credit loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 612,932 | 649,529 |
Commercial and industrial loans: | Working capital lines of credit loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 373 | 68 |
Commercial and industrial loans: | Working capital lines of credit loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Commercial and industrial loans: | Working capital lines of credit loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 607,884 | 649,597 |
Commercial and industrial loans: | Non-working capital loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 850,831 | 841,695 |
Total Nonaccrual | 8,841 | 11,622 |
Nonaccrual With No Allowance For Credit Loss | 695 | 727 |
Commercial and industrial loans: | Non-working capital loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 841,990 | 830,033 |
Commercial and industrial loans: | Non-working capital loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 39 |
Commercial and industrial loans: | Non-working capital loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 1 |
Commercial and industrial loans: | Non-working capital loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 833,149 | 830,073 |
Commercial Real Estate and Multifamily Residential | Construction and land development loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 588,103 | 515,168 |
Total Nonaccrual | 0 | 0 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Construction and land development loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 588,103 | 515,168 |
Commercial Real Estate and Multifamily Residential | Construction and land development loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Construction and land development loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Construction and land development loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 588,103 | 515,168 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 805,512 | 757,516 |
Total Nonaccrual | 2,923 | 3,065 |
Nonaccrual With No Allowance For Credit Loss | 1,440 | 1,469 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 802,589 | 754,451 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 799,666 | 754,451 |
Commercial Real Estate and Multifamily Residential | Nonowner occupied loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 724,246 | 705,662 |
Total Nonaccrual | 0 | 0 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Nonowner occupied loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 724,246 | 705,662 |
Commercial Real Estate and Multifamily Residential | Nonowner occupied loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Nonowner occupied loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Nonowner occupied loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 724,246 | 705,662 |
Commercial Real Estate and Multifamily Residential | Multifamily loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 254,304 | 196,941 |
Total Nonaccrual | 0 | 0 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Multifamily loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 254,304 | 196,941 |
Commercial Real Estate and Multifamily Residential | Multifamily loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Multifamily loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Multifamily loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 254,304 | 196,941 |
Agri-business and agricultural loans: | Loans secured by farmland | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 176,791 | 201,178 |
Total Nonaccrual | 115 | 145 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Agri-business and agricultural loans: | Loans secured by farmland | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 176,635 | 201,033 |
Agri-business and agricultural loans: | Loans secured by farmland | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 41 | 0 |
Agri-business and agricultural loans: | Loans secured by farmland | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Agri-business and agricultural loans: | Loans secured by farmland | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 176,561 | 201,033 |
Agri-business and agricultural loans: | Loans for agricultural production | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 198,255 | 230,989 |
Total Nonaccrual | 0 | 0 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Agri-business and agricultural loans: | Loans for agricultural production | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 198,255 | 230,989 |
Agri-business and agricultural loans: | Loans for agricultural production | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Agri-business and agricultural loans: | Loans for agricultural production | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Agri-business and agricultural loans: | Loans for agricultural production | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 198,255 | 230,989 |
Agri-business and agricultural loans: | Other commercial loans: | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 120,757 | 113,341 |
Total Nonaccrual | 0 | 0 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Agri-business and agricultural loans: | Other commercial loans: | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 120,757 | 113,341 |
Agri-business and agricultural loans: | Other commercial loans: | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Agri-business and agricultural loans: | Other commercial loans: | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Agri-business and agricultural loans: | Other commercial loans: | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 120,757 | 113,341 |
Consumer 1-4 Family Mortgage | Closed end first mortgage loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 228,758 | 212,457 |
Total Nonaccrual | 494 | 293 |
Nonaccrual With No Allowance For Credit Loss | 343 | 225 |
Consumer 1-4 Family Mortgage | Closed end first mortgage loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 227,988 | 211,736 |
Consumer 1-4 Family Mortgage | Closed end first mortgage loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 268 | 306 |
Consumer 1-4 Family Mortgage | Closed end first mortgage loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 8 | 122 |
Consumer 1-4 Family Mortgage | Closed end first mortgage loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 227,770 | 212,164 |
Consumer 1-4 Family Mortgage | Open end and junior lien loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 185,579 | 177,382 |
Total Nonaccrual | 207 | 188 |
Nonaccrual With No Allowance For Credit Loss | 207 | 188 |
Consumer 1-4 Family Mortgage | Open end and junior lien loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 185,060 | 176,758 |
Consumer 1-4 Family Mortgage | Open end and junior lien loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 312 | 436 |
Consumer 1-4 Family Mortgage | Open end and junior lien loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Consumer 1-4 Family Mortgage | Open end and junior lien loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 185,165 | 177,194 |
Consumer 1-4 Family Mortgage | Residential construction loans: | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 18,487 | 19,170 |
Total Nonaccrual | 0 | 0 |
Nonaccrual With No Allowance For Credit Loss | 0 | 0 |
Consumer 1-4 Family Mortgage | Residential construction loans: | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 18,487 | 19,170 |
Consumer 1-4 Family Mortgage | Residential construction loans: | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 0 | 0 |
Consumer 1-4 Family Mortgage | Residential construction loans: | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Consumer 1-4 Family Mortgage | Residential construction loans: | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 18,487 | 19,170 |
Consumer 1-4 Family Mortgage | Other consumer loans | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 91,911 | 87,858 |
Total Nonaccrual | 4 | 209 |
Nonaccrual With No Allowance For Credit Loss | 4 | 6 |
Consumer 1-4 Family Mortgage | Other consumer loans | Loans Not Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 91,694 | 87,333 |
Consumer 1-4 Family Mortgage | Other consumer loans | 30-89 Days Past Due | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | 213 | 316 |
Consumer 1-4 Family Mortgage | Other consumer loans | Greater than 89 Days Past Due and Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Greater than 89 Days Past Due and Accruing | 0 | 0 |
Consumer 1-4 Family Mortgage | Other consumer loans | Total Accruing | ||
Financing Receivable, Amortized Cost, Aging [Abstract] | ||
Loans | $ 91,903 | $ 87,649 |
ALLOWANCE FOR CREDIT LOSSES A_7
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Amortized Cost Basis Of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Collateral Dependent Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | $ 1,863 | $ 3,225 |
General Business Assets | 14,862 | 25,147 |
Other | 1,394 | 1,397 |
Total | 18,119 | 29,769 |
Commercial and industrial loans: | Working capital lines of credit loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 50 | 50 |
General Business Assets | 5,221 | 5,402 |
Other | 0 | 0 |
Total | 5,271 | 5,452 |
Commercial and industrial loans: | Non-working capital loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 474 | 544 |
General Business Assets | 8,043 | 18,109 |
Other | 229 | 229 |
Total | 8,746 | 18,882 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 638 | 413 |
General Business Assets | 1,483 | 1,491 |
Other | 1,161 | 1,161 |
Total | 3,282 | 3,065 |
Agri-business and agricultural loans: | Loans secured by farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 0 | 0 |
General Business Assets | 115 | 145 |
Other | 0 | 0 |
Total | 115 | 145 |
Consumer 1-4 Family Mortgage | Closed end first mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 494 | 2,030 |
General Business Assets | 0 | 0 |
Other | 0 | 0 |
Total | 494 | 2,030 |
Consumer 1-4 Family Mortgage | Open end and junior lien loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 207 | 188 |
General Business Assets | 0 | 0 |
Other | 0 | 0 |
Total | 207 | 188 |
Consumer 1-4 Family Mortgage | Other consumer loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Real Estate | 0 | 0 |
General Business Assets | 0 | 0 |
Other | 4 | 7 |
Total | $ 4 | $ 7 |
ALLOWANCE FOR CREDIT LOSSES A_8
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Amortized Cost Basis of Each Class of Financing Receivables (Details) - Commercial and industrial loans - Non-working capital loans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of loans receivable | 0.20% | 0.20% |
Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Combination Principal Forgiveness, Term Extension and Interest Rate Reduction | $ 1,600 | |
Percentage of loans receivable | 0.20% | 0.20% |
ALLOWANCE FOR CREDIT LOSSES A_9
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Financial Effect of Loan Modifications (Details) - Commercial and industrial loans - Non-working capital loans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percentage of loans receivable | 0.20% | 0.20% |
Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 9,380 | $ 9,380 |
Contractual Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted-Average Interest Rate Reduction | 1% | 1% |
Contractual Interest Rate Reduction | Prime | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted-Average Interest Rate Reduction | 0.75% | 0.75% |
Extended Maturity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted-Average Term Extension | 260 months | 260 months |
BORROWINGS - Long-term Borrowin
BORROWINGS - Long-term Borrowings (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Federal Home Loan Bank Of Indianapolis Notes One Point Six One Percentage Due January Seven Two Thousand Twenty | |
Debt Instrument [Line Items] | |
Interest rate | 4.21% |
FHLB Bullet advance | $ 275 |
Federal Home Loan Bank Advances | |
Debt Instrument [Line Items] | |
Long-term FHLB advances | $ 400 |
Interest rate | 5.17% |
BORROWINGS - Revolving Credit A
BORROWINGS - Revolving Credit Agreement (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2023 | Jul. 29, 2023 | Dec. 31, 2022 | Aug. 02, 2019 | |
Line of Credit Facility [Line Items] | ||||
Federal Funds purchased | $ 0 | $ 22,000,000 | ||
Unsecured revolving credit agreement | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 30,000,000 | |||
Debt instrument, term | 1 year | |||
Federal Funds purchased | $ 0 | $ 0 | ||
Unsecured revolving credit agreement | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 12,500,000 |
FAIR VALUE DISCLOSURES - Additi
FAIR VALUE DISCLOSURES - Additional Information (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) prepaymentSpeed | Dec. 31, 2022 prepaymentSpeed | |
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 3.50% | |
Mortgage servicing rights | $ 2,400,000 | |
Weighted average maturity of residential mortgages | 20 years | |
Qualitative information used to estimate fair value | prepaymentSpeed | 150 | 159 |
Discount rate used to estimate fair value | 9.50% | |
Minimum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Amount of variance | $ 100,000 | |
Discount rate used to estimate fair value | 9.50% | |
Minimum | Commercial Real Estates | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 30% | |
Minimum | Inventory Finished Goods | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 40% | |
Minimum | Finished Goods | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 40% | |
Minimum | Inventory Work In Process | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 60% | |
Minimum | Equipment | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 20% | |
Minimum | Marketable Securities | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 10% | |
Maximum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Discount rate used to estimate fair value | 11.50% | |
Maximum | Commercial Real Estates | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 50% | |
Maximum | Inventory Finished Goods | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 60% | |
Maximum | Finished Goods | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 60% | |
Maximum | Inventory Work In Process | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 100% | |
Maximum | Equipment | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 50% | |
Maximum | Marketable Securities | Level 3 | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of discount from appraised value (in hundredths) | 30% | |
Municipal Notes | Minimum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of variance | (5.00%) | |
Municipal Notes | Maximum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of variance | 5% | |
US Government Agencies Short-term Debt Securities | Minimum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of variance | (3.00%) | |
US Government Agencies Short-term Debt Securities | Maximum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of variance | 3% | |
U.S. Treasury securities | Minimum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of variance | (1.00%) | |
U.S. Treasury securities | Maximum | ||
Assets Pledged As Collateral For Loans Receivable [Line Items] | ||
Percentage of variance | 1% |
FAIR VALUE DISCLOSURES - Assets
FAIR VALUE DISCLOSURES - Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Total securities available-for-sale | $ 1,062,069 | $ 1,185,528 |
Mortgage banking derivative | 35,660 | 36,920 |
Liabilities: | ||
Mortgage banking derivative | 35,661 | 36,921 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
U.S. Treasury securities | 3,232 | 3,034 |
U.S. government sponsored agency securities | 122,086 | 126,961 |
Mortgage-backed securities: residential | 462,033 | 492,308 |
State and municipal securities | 474,718 | 563,225 |
Total securities available-for-sale | 1,062,069 | 1,185,528 |
Mortgage banking derivative | 68 | 43 |
Interest rate swap derivative | 35,660 | 36,920 |
Total assets | 1,097,797 | 1,222,491 |
Liabilities: | ||
Interest rate swap derivative | 35,661 | 36,921 |
Total liabilities | 35,661 | 36,921 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
U.S. Treasury securities | 3,232 | 3,034 |
U.S. government sponsored agency securities | 0 | 0 |
Mortgage-backed securities: residential | 0 | 0 |
State and municipal securities | 0 | 0 |
Total securities available-for-sale | 3,232 | 3,034 |
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Total assets | 3,232 | 3,034 |
Liabilities: | ||
Interest rate swap derivative | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
U.S. Treasury securities | 0 | 0 |
U.S. government sponsored agency securities | 122,086 | 126,961 |
Mortgage-backed securities: residential | 462,033 | 492,308 |
State and municipal securities | 471,701 | 561,150 |
Total securities available-for-sale | 1,055,820 | 1,180,419 |
Mortgage banking derivative | 68 | 43 |
Interest rate swap derivative | 35,660 | 36,920 |
Total assets | 1,091,548 | 1,217,382 |
Liabilities: | ||
Interest rate swap derivative | 35,661 | 36,921 |
Total liabilities | 35,661 | 36,921 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
U.S. Treasury securities | 0 | 0 |
U.S. government sponsored agency securities | 0 | 0 |
Mortgage-backed securities: residential | 0 | 0 |
State and municipal securities | 3,017 | 2,075 |
Total securities available-for-sale | 3,017 | 2,075 |
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Total assets | 3,017 | 2,075 |
Liabilities: | ||
Interest rate swap derivative | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Asse_2
FAIR VALUE DISCLOSURES - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 6,134 | $ 11,992 |
Other real estate owned | 384 | 100 |
Total assets | 6,518 | 12,092 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,134 | 11,992 |
Other real estate owned | 384 | 100 |
Total assets | 6,518 | 12,092 |
Commercial and industrial loans: | Working capital lines of credit loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,644 | 3,178 |
Commercial and industrial loans: | Working capital lines of credit loans | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial and industrial loans: | Working capital lines of credit loans | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial and industrial loans: | Working capital lines of credit loans | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,644 | 3,178 |
Commercial and industrial loans: | Non-working capital loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,139 | 8,354 |
Commercial and industrial loans: | Non-working capital loans | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial and industrial loans: | Non-working capital loans | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial and industrial loans: | Non-working capital loans | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,139 | 8,354 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 326 | 425 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial Real Estate and Multifamily Residential | Owner occupied loans | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 326 | 425 |
Agri-business and agricultural loans | Loans secured by farmland | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 25 | 35 |
Agri-business and agricultural loans | Loans secured by farmland | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Agri-business and agricultural loans | Loans secured by farmland | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Agri-business and agricultural loans | Loans secured by farmland | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 25 | $ 35 |
FAIR VALUE DISCLOSURES - Valuat
FAIR VALUE DISCLOSURES - Valuation Methodology and Unobservable Inputs for Level 3 Assets (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Fair Value | $ 6,134 | $ 11,992 |
Commercial and industrial loans: | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Fair Value | $ 5,783 | $ 11,532 |
Commercial and industrial loans: | Average | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.62 | 0.62 |
Commercial and industrial loans: | Minimum | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.25 | 0.29 |
Commercial and industrial loans: | Maximum | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.99 | 0.99 |
Commercial Real Estate and Multifamily Residential | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Fair Value | $ 326 | $ 425 |
Commercial Real Estate and Multifamily Residential | Average | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.78 | 0.57 |
Commercial Real Estate and Multifamily Residential | Minimum | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.37 | |
Commercial Real Estate and Multifamily Residential | Maximum | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.76 | |
Agri-business and agricultural loans | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Fair Value | $ 25 | $ 35 |
Agri-business and agricultural loans | Average | Valuation, Collateral Based Measurements | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.78 | 0.76 |
Other Real Estate Owned | Valuation, Cost Approach | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Fair Value | $ 384 | $ 100 |
Other Real Estate Owned | Average | Valuation, Cost Approach | Measurement Input, Discount Rate | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Average and Range of Inputs | 0.36 | 0.68 |
FAIR VALUE DISCLOSURES - Estima
FAIR VALUE DISCLOSURES - Estimated Fair Values And The Related Carrying Values Of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Securities available-for-sale, at fair value | $ 1,062,069 | $ 1,185,528 |
Securities held-to-maturity | 114,264 | 111,029 |
Financial Liabilities: | ||
Federal Funds purchased | 22,000 | |
Federal Home Loan Bank advances | 400,003 | |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 173,137 | 130,282 |
Securities available-for-sale, at fair value | 1,062,069 | 1,185,528 |
Securities held-to-maturity | 129,070 | 128,242 |
Real estate mortgages held-for-sale | 1,298 | 357 |
Loans, net | 4,790,202 | 4,637,790 |
Mortgage banking derivative | 68 | 43 |
Interest rate swap derivative | 35,660 | 36,920 |
Federal Reserve and Federal Home Loan Bank Stock | 21,420 | 15,795 |
Accrued interest receivable | 27,398 | 27,994 |
Financial Liabilities: | ||
Certificates of deposit | 822,797 | 626,186 |
All other deposits | 4,600,262 | 4,834,434 |
Interest rate swap derivative | 35,661 | 36,921 |
Standby letters of credit | 133 | 249 |
Accrued interest payable | 9,833 | 3,186 |
Federal Funds purchased | 22,000 | |
Federal Home Loan Bank advances | 400,000 | 275,000 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 173,137 | 130,282 |
Securities available-for-sale, at fair value | 1,062,069 | 1,185,528 |
Securities held-to-maturity | 114,264 | 111,029 |
Real estate mortgages held-for-sale | 1,342 | 372 |
Loans, net | 4,606,769 | 4,454,678 |
Mortgage banking derivative | 68 | 43 |
Interest rate swap derivative | 35,660 | 36,920 |
Accrued interest receivable | 27,398 | 27,994 |
Financial Liabilities: | ||
Certificates of deposit | 824,292 | 621,206 |
All other deposits | 4,600,262 | 4,834,434 |
Interest rate swap derivative | 35,661 | 36,921 |
Standby letters of credit | 133 | 249 |
Accrued interest payable | 9,833 | 3,186 |
Federal Home Loan Bank advances | 275,000 | |
Level 1 | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 172,892 | 129,069 |
Securities available-for-sale, at fair value | 3,232 | 3,034 |
Securities held-to-maturity | 0 | 0 |
Real estate mortgages held-for-sale | 0 | 0 |
Loans, net | 0 | 0 |
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities: | ||
Certificates of deposit | 0 | 0 |
All other deposits | 4,600,262 | 4,834,434 |
Interest rate swap derivative | 0 | 0 |
Standby letters of credit | 0 | 0 |
Accrued interest payable | 441 | 486 |
Federal Funds purchased | 22,000 | |
Federal Home Loan Bank advances | 400,003 | 275,000 |
Level 2 | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 245 | 1,213 |
Securities available-for-sale, at fair value | 1,055,820 | 1,180,419 |
Securities held-to-maturity | 114,264 | 111,029 |
Real estate mortgages held-for-sale | 1,342 | 372 |
Loans, net | 0 | 0 |
Mortgage banking derivative | 68 | 43 |
Interest rate swap derivative | 35,660 | 36,920 |
Accrued interest receivable | 8,859 | 9,598 |
Financial Liabilities: | ||
Certificates of deposit | 824,292 | 621,206 |
All other deposits | 0 | 0 |
Interest rate swap derivative | 35,661 | 36,921 |
Standby letters of credit | 0 | 0 |
Accrued interest payable | 9,392 | 2,700 |
Federal Funds purchased | 0 | |
Federal Home Loan Bank advances | 0 | 0 |
Level 3 | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 3,017 | 2,075 |
Securities held-to-maturity | 0 | 0 |
Real estate mortgages held-for-sale | 0 | 0 |
Loans, net | 4,606,769 | 4,454,678 |
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Accrued interest receivable | 18,539 | 18,396 |
Financial Liabilities: | ||
Certificates of deposit | 0 | 0 |
All other deposits | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Standby letters of credit | 133 | 249 |
Accrued interest payable | 0 | 0 |
Federal Funds purchased | 0 | |
Federal Home Loan Bank advances | $ 0 | $ 0 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Schedule of Offsetting of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Gross Amounts of Recognized Assets/Liabilities | $ 35,660 | $ 36,920 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts presented in the Statement of Financial Position | 35,660 | 36,920 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position | (27,965) | (34,185) |
Net Amount | 7,695 | 2,735 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 35,661 | 36,921 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts presented in the Statement of Financial Position | 35,661 | 36,921 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position | (90) | (90) |
Net Amounts presented in the Statement of Financial Position | 35,571 | 36,831 |
Interest Rate Swap Derivatives | ||
Assets | ||
Gross Amounts of Recognized Assets/Liabilities | 35,660 | 36,920 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts presented in the Statement of Financial Position | 35,660 | 36,920 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position | (27,965) | (34,185) |
Net Amount | 7,695 | 2,735 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 35,661 | 36,921 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts presented in the Statement of Financial Position | 35,661 | 36,921 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Position | (90) | (90) |
Net Amounts presented in the Statement of Financial Position | $ 35,571 | $ 36,831 |
EARNINGS PER SHARE - Earnings P
EARNINGS PER SHARE - Earnings Per Share Computations (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Number of antidilutive shares | 0 | 0 | 0 | 0 |
Weighted average shares outstanding for basic earnings per common share | 25,607,663 | 25,527,896 | 25,595,412 | 25,521,618 |
Dilutive effect of stock based awards | 78,691 | 169,681 | 100,958 | 178,290 |
Weighted average shares outstanding for diluted earnings per common share | 25,686,354 | 25,697,577 | 25,696,370 | 25,699,908 |
Basic earnings per common share (in dollars per share) | $ 0.57 | $ 1 | $ 1.52 | $ 1.93 |
Diluted earnings per common share (in dollars per share) | $ 0.57 | $ 1 | $ 1.51 | $ 1.92 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 602,006 | $ 609,102 | $ 568,887 | $ 704,906 |
Net current period other comprehensive (loss) income | (10,275) | (64,847) | 11,278 | (174,627) |
Ending balance | 591,995 | 562,063 | 591,995 | 562,063 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (167,370) | (93,687) | (188,923) | 16,093 |
Other comprehensive income (loss) before reclassification | (10,674) | (65,179) | 10,493 | (174,986) |
Amounts reclassified from accumulated other comprehensive income (loss) | 399 | 332 | 785 | 359 |
Net current period other comprehensive (loss) income | (10,275) | (64,847) | 11,278 | (174,627) |
Ending balance | (177,645) | (158,534) | (177,645) | (158,534) |
Unrealized Gains and Losses on Available- for-Sales Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (166,612) | (92,751) | (188,154) | 17,056 |
Other comprehensive income (loss) before reclassification | (10,674) | (65,179) | 10,493 | (174,986) |
Amounts reclassified from accumulated other comprehensive income (loss) | 388 | 305 | 763 | 305 |
Net current period other comprehensive (loss) income | (10,286) | (64,874) | 11,256 | (174,681) |
Ending balance | (176,898) | (157,625) | (176,898) | (157,625) |
Defined Benefit Pension Items | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (758) | (936) | (769) | (963) |
Other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 11 | 27 | 22 | 54 |
Net current period other comprehensive (loss) income | 11 | 27 | 22 | 54 |
Ending balance | $ (747) | $ (909) | $ (747) | $ (909) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | $ 84,482 | $ 53,622 | $ 163,702 | $ 101,656 |
Net securities gains | 3 | 0 | 19 | 0 |
Income tax expense | 1,880 | 5,584 | 5,651 | 10,123 |
Other expense | 2,571 | 3,299 | 5,133 | 6,538 |
Net income | 14,611 | 25,673 | 38,889 | 49,315 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (399) | (332) | (785) | (359) |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Available-for-Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net securities gains | 3 | 19 | ||
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Held-to-Maturity Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | (494) | (386) | (985) | (386) |
Income tax expense | 103 | 81 | 203 | 81 |
Net income | (388) | (305) | (763) | (305) |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Defined Benefit Pension Items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 4 | 9 | 8 | 18 |
Other expense | (15) | (36) | (30) | (72) |
Net income | $ (11) | $ (27) | $ (22) | $ (54) |
LEASES - Maturity Analysis (Det
LEASES - Maturity Analysis (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 365 |
2024 | 744 |
2025 | 756 |
2026 | 730 |
2027 | 753 |
2028 and thereafter | 2,185 |
Total undiscounted lease payments | 5,533 |
Less imputed interest | $ (534) |
Operating lease, liability, statement of financial position | Other liabilities |
Lease liability | $ 4,999 |
Operating lease, right-of-use asset, statement of financial position | Other Assets |
Right-of-use asset | $ 4,999 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lease cost | ||||
Operating lease cost | $ 300 | $ 163 | $ 478 | $ 333 |
Short-term lease cost | 4 | 8 | 8 | 14 |
Total lease cost | $ 304 | $ 171 | $ 486 | $ 347 |
LEASES - Other Information (Det
LEASES - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating cash outflows from operating leases | $ 300 | $ 163 | $ 478 | $ 333 |
Weighted-average remaining lease term - operating leases | 6 years 9 months 18 days | 8 years 6 months | 6 years 9 months 18 days | 8 years 6 months |
Weighted average discount rate - operating leases | 2.50% | 2.50% | 2.50% | 2.50% |