Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Entity File Number | 001-12669 | |
Entity Registrant Name | SOUTHSTATE CORP | |
Entity Incorporation, State or Country Code | SC | |
Entity Tax Identification Number | 57-0799315 | |
Entity Address, Address Line One | 1101 First Street South, Suite 202 | |
Entity Address, City or Town | Winter Haven | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33880 | |
City Area Code | 863 | |
Local Phone Number | 293-4710 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SSB | |
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 | 75,922,877 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000764038 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 558,158 | $ 548,387 |
Federal funds sold and interest-earning deposits with banks | 1,215,766 | 580,491 |
Deposits in other financial institutions (restricted cash) | 222,738 | 183,685 |
Total cash and cash equivalents | 1,996,662 | 1,312,563 |
Trading securities, at fair value | 16,039 | 31,263 |
Investment securities: | ||
Securities held to maturity (fair value of $2,227,612 and $2,250,168) | 2,636,673 | 2,683,241 |
Securities available for sale, at fair value | 5,159,999 | 5,326,822 |
Other investments | 217,991 | 179,717 |
Total investment securities | 8,014,663 | 8,189,780 |
Loans held for sale | 27,289 | 28,968 |
Loans: | ||
Total loans | 30,696,142 | 30,177,862 |
Less allowance for credit losses | (370,645) | (356,444) |
Loans, net | 30,325,497 | 29,821,418 |
Other real estate owned | 3,473 | 1,023 |
Bank property held for sale | 16,724 | 17,754 |
Premises and equipment, net | 517,146 | 520,635 |
Bank owned life insurance ("BOLI") | 967,750 | 964,708 |
Deferred tax assets | 165,161 | 177,801 |
Derivatives assets | 159,287 | 211,016 |
Mortgage servicing rights | 85,406 | 86,610 |
Core deposit and other intangibles | 109,603 | 116,450 |
Goodwill | 1,923,106 | 1,923,106 |
Other assets | 596,021 | 515,601 |
Total assets | 44,923,827 | 43,918,696 |
Deposits: | ||
Noninterest-bearing | 12,422,583 | 13,168,656 |
Interest-bearing | 23,979,009 | 23,181,967 |
Total deposits | 36,401,592 | 36,350,623 |
Federal funds purchased | 233,354 | 213,597 |
Securities sold under agreements to repurchase | 310,754 | 342,820 |
Corporate and subordinated debentures | 392,182 | 392,275 |
Other borrowings | 900,000 | |
Reserve for unfunded commitments | 85,068 | 67,215 |
Derivative liabilities | 806,584 | 1,034,143 |
Other liabilities | 545,289 | 443,096 |
Total liabilities | 39,674,823 | 38,843,769 |
Shareholders' equity: | ||
Common stock - $2.50 par value; authorized 160,000,000 shares; 75,859,665 and 75,704,563 shares issued and outstanding, respectively | 189,649 | 189,261 |
Surplus | 4,224,503 | 4,215,712 |
Retained earnings | 1,448,636 | 1,347,042 |
Accumulated other comprehensive loss | (613,784) | (677,088) |
Total shareholders' equity | 5,249,004 | 5,074,927 |
Total liabilities and shareholders' equity | 44,923,827 | 43,918,696 |
Acquired - non-purchased credit deteriorated loans | ||
Loans: | ||
Total loans | 5,620,290 | 5,943,092 |
Acquired - purchased credit deteriorated loans | ||
Loans: | ||
Total loans | 1,325,400 | 1,429,731 |
Non-acquired loans | ||
Loans: | ||
Total loans | $ 23,750,452 | $ 22,805,039 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investment securities: | ||
Securities held to maturity, fair value (in dollars) | $ 2,227,612 | $ 2,250,168 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 75,859,665 | 75,704,563 |
Common stock, shares outstanding | 75,859,665 | 75,704,563 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Loans, including fees | $ 393,366,000 | $ 233,617,000 |
Investment securities: | ||
Taxable | 41,565,000 | 30,120,000 |
Tax-exempt | 6,557,000 | 3,875,000 |
Federal funds sold, securities purchased under agreements to resell and interest-bearing deposits with banks | 8,921,000 | 2,859,000 |
Total interest income | 450,409,000 | 270,471,000 |
Interest expense: | ||
Deposits | 55,942,000 | 4,591,000 |
Federal funds purchased and securities sold under agreements to repurchase | 2,853,000 | 269,000 |
Corporate and subordinated debentures | 5,735,000 | 4,093,000 |
Other borrowings | 4,616,000 | |
Total interest expense | 69,146,000 | 8,953,000 |
Net interest income | 381,263,000 | 261,518,000 |
Provision (recovery) for credit losses | 33,091,000 | (8,449,000) |
Net interest income after provision (recovery) for credit losses | 348,172,000 | 269,967,000 |
Noninterest income: | ||
Securities gains, net | 45,000 | |
Other income | 9,866,000 | 6,595,000 |
Total noninterest income | 71,355,000 | 86,046,000 |
Noninterest expense: | ||
Salaries and employee benefits | 144,060,000 | 137,673,000 |
Occupancy expense | 21,533,000 | 21,840,000 |
Information services expense | 19,925,000 | 19,193,000 |
OREO and loan related expense (recovery) | 169,000 | (238,000) |
Amortization of intangibles | 7,299,000 | 8,494,000 |
Supplies, printing and postage expense | 2,640,000 | 2,189,000 |
Professional fees | 3,702,000 | 3,749,000 |
FDIC assessment and other regulatory charges | 6,294,000 | 4,812,000 |
Advertising and marketing | 2,118,000 | 1,763,000 |
Merger, branch consolidation and severance related expense | 9,412,000 | 10,276,000 |
Other expense | 23,353,000 | 18,849,000 |
Total noninterest expense | 240,505,000 | 228,600,000 |
Earnings: | ||
Income before provision for income taxes | 179,022,000 | 127,413,000 |
Provision for income taxes | 39,096,000 | 27,084,000 |
Net income | $ 139,926,000 | $ 100,329,000 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.84 | $ 1.40 |
Diluted (in dollars per share) | $ 1.83 | $ 1.39 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 75,902 | 71,447 |
Diluted (in shares) | 76,389 | 72,111 |
Fees on deposit accounts | ||
Noninterest income: | ||
Noninterest income | $ 29,859,000 | $ 28,009,000 |
Mortgage banking income | ||
Noninterest income: | ||
Noninterest income | 4,332,000 | 10,594,000 |
Trust and investment services income | ||
Noninterest income: | ||
Noninterest income | 9,937,000 | 9,718,000 |
Correspondent banking and capital market income | ||
Noninterest income: | ||
Noninterest income | 13,594,000 | 27,950,000 |
SBA income | ||
Noninterest income: | ||
Noninterest income | $ 3,722,000 | $ 3,180,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Net income | $ 139,926 | $ 100,329 |
Unrealized holding gains (losses) on available for sale securities: | ||
Unrealized holding gains (losses) arising during period | 72,772 | (362,120) |
Tax effect | (9,501) | 89,310 |
Reclassification adjustment for gains included in net income | 45 | |
Tax effect | (12) | |
Net of tax amount | 63,304 | (272,810) |
Other comprehensive income (loss), net of tax | 63,304 | (272,810) |
Comprehensive income (loss) | $ 203,230 | $ (172,481) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2021 | $ 173,331 | $ 3,653,098 | $ 997,657 | $ (21,146) | $ 4,802,940 |
Balance (in shares) at Dec. 31, 2021 | 69,332,297 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 100,329 | 100,329 | |||
Other comprehensive income (loss), net of tax effects | (272,810) | (272,810) | |||
Total comprehensive income (loss) | (172,481) | ||||
Cash dividends declared on common stock per share | (33,822) | (33,822) | |||
Cash dividends equivalents paid on restricted stock units | (100) | (100) | |||
Stock options exercised | $ 24 | 384 | 408 | ||
Stock options exercised (in shares) | 9,703 | ||||
Stock issued pursuant to restricted stock units | $ 321 | (321) | |||
Stock issued pursuant to restricted stock units (in shares) | 128,302 | ||||
Common stock repurchased - buyback plan | $ (2,530) | (83,928) | (86,458) | ||
Common stock repurchased - buyback plan (in shares) | (1,012,038) | ||||
Common stock repurchased | $ (70) | (2,287) | (2,357) | ||
Common stock repurchased (in shares) | (28,049) | ||||
Share-based compensation expense | 8,486 | 8,486 | |||
Common stock issued for acquisition | $ 18,327 | 641,445 | 659,772 | ||
Common stock issued for acquisition (in shares) | 7,330,803 | ||||
Net fair value of unvested equity awards assumed in the Atlantic Capital acquisition | (1,980) | (1,980) | |||
Balance at Mar. 31, 2022 | $ 189,403 | 4,214,897 | 1,064,064 | (293,956) | 5,174,408 |
Balance (in shares) at Mar. 31, 2022 | 75,761,018 | ||||
Balance at Dec. 31, 2022 | $ 189,261 | 4,215,712 | 1,347,042 | (677,088) | $ 5,074,927 |
Balance (in shares) at Dec. 31, 2022 | 75,704,563 | 75,704,563 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 139,926 | $ 139,926 | |||
Other comprehensive income (loss), net of tax effects | 63,304 | 63,304 | |||
Total comprehensive income (loss) | 203,230 | ||||
Cash dividends declared on common stock per share | (37,912) | (37,912) | |||
Cash dividends equivalents paid on restricted stock units | (420) | (420) | |||
Stock options exercised | $ 59 | 1,114 | 1,173 | ||
Stock options exercised (in shares) | 23,516 | ||||
Restricted stock awards | $ (5) | 5 | |||
Restricted stock awards (in shares) | (2,233) | ||||
Stock issued pursuant to restricted stock units | $ 444 | (444) | |||
Stock issued pursuant to restricted stock units (in shares) | 177,708 | ||||
Common stock repurchased | $ (110) | (3,306) | (3,416) | ||
Common stock repurchased (in shares) | (43,889) | ||||
Share-based compensation expense | 11,422 | 11,422 | |||
Balance at Mar. 31, 2023 | $ 189,649 | $ 4,224,503 | $ 1,448,636 | $ (613,784) | $ 5,249,004 |
Balance (in shares) at Mar. 31, 2023 | 75,859,665 | 75,859,665 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Apr. 27, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity | |||
Common stock cash dividends declared, per share (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.49 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 139,926 | $ 100,329 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,015 | 16,178 |
(Recovery) provision for credit losses | 33,091 | (8,449) |
Deferred income taxes | 3,127 | 49,073 |
Gains on sale of securities, net | (45) | |
Share-based compensation expense | 11,422 | 8,486 |
Accretion of discount related to acquired loans | (7,398) | (6,741) |
(Gains) losses on disposal of premises and equipment | (65) | 812 |
Gains on sale of bank properties held for sale and repossessed real estate | (514) | (624) |
Net amortization of premiums on investment securities | 5,358 | 7,767 |
Bank properties held for sale and repossessed real estate write downs | 410 | 195 |
Fair value adjustment for loans held for sale | 9 | 6,026 |
Originations and purchases of loans held for sale | (157,683) | (645,339) |
Proceeds from sales of loans held for sale | 160,808 | 702,505 |
Gains on sales of loans held for sale | (1,456) | (1,845) |
Increase in cash surrender value of BOLI | (5,906) | (5,260) |
Net change in: | ||
Accrued interest receivable | (3,921) | (4,630) |
Prepaid assets | 2,406 | 3,309 |
Operating leases | 72 | 33 |
Bank owned life insurance | (930) | |
Trading securities | 15,225 | 3,455 |
Derivative assets | 51,729 | 290,886 |
Miscellaneous other assets | (115,557) | (75,613) |
Accrued interest payable | 14,193 | 3,035 |
Accrued income taxes | 36,423 | (20,188) |
Derivative liabilities | (227,559) | 119,608 |
Miscellaneous other liabilities | 91,201 | 35,761 |
Net cash provided by operating activities | 59,381 | 578,769 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities available for sale | 125,298 | 414,438 |
Proceeds from maturities and calls of investment securities held to maturity | 45,308 | 40,152 |
Proceeds from maturities and calls of investment securities available for sale | 110,287 | 158,642 |
Proceeds from sales and redemptions of other investment securities | 25,500 | 13,216 |
Purchases of investment securities available for sale | (980,298) | |
Purchases of investment securities held to maturity | (1,049,722) | |
Purchases of other investment securities | (63,773) | (19,890) |
Net increase in loans | (518,335) | (243,652) |
Net cash received from acquisitions | 250,115 | |
Recoveries of loans previously charged off | 3,589 | 3,168 |
Purchase of bank owned life insurance | (80,000) | |
Purchases of premises and equipment | (7,642) | (4,983) |
Proceeds from redemption and payout of bank owned life insurance policies | 3,794 | |
Proceeds from sale of bank properties held for sale and repossessed real estate | 1,511 | 5,449 |
Proceeds from sale of premises and equipment | 616 | 453 |
Net cash used in investing activities | (273,847) | (1,492,912) |
Cash flows from financing activities: | ||
Net increase in deposits | 51,450 | 518,522 |
Net decrease in federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings | (12,309) | (10,830) |
Proceeds from FHLB borrowings | 2,150,000 | |
Repayment of FHLB borrowings | (1,250,000) | |
Common stock repurchases | (3,416) | (88,815) |
Dividends paid | (38,333) | (33,922) |
Stock options exercised | 1,173 | 408 |
Net cash provided by financing activities | 898,565 | 385,363 |
Net (decrease) increase in cash and cash equivalents | 684,099 | (528,780) |
Cash and cash equivalents at beginning of period | 1,312,563 | 6,721,571 |
Cash and cash equivalents at end of period | 1,996,662 | 6,192,791 |
Cash paid for: | ||
Interest | 54,953 | 5,956 |
Income taxes | 2,400 | 1,231 |
Recognition of operating lease assets in exchange for lease liabilities | 12,428 | |
Acquisitions: | ||
Fair value of tangible assets acquired | 3,499,774 | |
Other intangible assets acquired | 20,791 | |
Liabilities assumed | 3,205,694 | |
Net identifiable assets acquired over liabilities assumed | 342,939 | |
Common stock issued in acquisition | 659,772 | |
Real estate acquired in full or in partial settlement of loans | $ 2,826 | $ 1,151 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, otherwise referred to as GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications had no impact on net income or equity as previously reported. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for complete financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies The information contained in the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2023, should be referenced when reading these unaudited condensed consolidated financial statements. Unless otherwise mentioned or unless the context requires otherwise, references herein to “SouthState,” the “Company” “we,” “us,” “our” or similar references mean SouthState Corporation and its consolidated subsidiaries. References to the “Bank” or “SouthState Bank” means SouthState Corporation’s wholly owned subsidiary, South State Bank, National Association, a national banking association. Loans Loans that management has originated and has the intent and ability to hold for the foreseeable future or until maturity or pay off generally are reported at their unpaid principal balances, less unearned income and net of any deferred loan fees and costs, including unamortized fair value discount or premium. Unearned income on installment loans is recognized as income over the terms of the loans by methods that generally approximate the interest method. Interest on other loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. If the loan is prepaid, the remaining unamortized fees and costs are charged or credited to interest income. Amortization ceases for non-accrual loans. We place non acquired loans and acquired loans on nonaccrual once reasonable doubt exists about the collectability of all principal and interest due. Generally, this occurs when principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection, and excludes factored receivables. For factored receivables, which are commercial trade credits rather than promissory notes, the Company’s practice, in most cases, is to charge-off unpaid recourse receivables when they become 90 days past due from the invoice due date and the non-recourse receivables when they become 120 days past due from the statement due date. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. A loan is evaluated individually for loss when it is on nonaccrual and has a net book balance over $1 million. Large pools of homogeneous loans are collectively evaluated for loss and reserved at the pool level. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as nonaccrual, provided that management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. Allowance for Credit Losses (“ACL”) – Investment Securities Management uses a systematic methodology to determine its ACL for investment securities held to maturity. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held to maturity portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the held to maturity investment portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. Management monitors the held to maturity portfolio to determine whether a valuation account should be recorded. As of March 31, 2023 and December 31, 2022, the Company had The Company follows its nonaccrual policy by reversing interest income in the income statement when the Company determines the interest for held to maturity securities is uncollectible. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the investment securities and does not record an allowance for credit losses on accrued interest receivable. As of March 31, 2023 and December 31, 2022, the accrued interest receivables for all investment securities recorded in Other Assets were Each quarter, management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the Provision for Credit Losses in the Condensed Consolidated Statements of Net Income. ACL – Loans and Certain Off-Balance-Sheet Credit Exposures The ACL for loans held for investment reflects management’s estimate of credit losses that will result from the inability of our borrowers to make required loan payments. The Company makes adjustments to the ACL by recording a provision for or recovery of credit losses through earnings. Loans charged off are recorded as reductions to the ACL on the balance sheet and subsequent recoveries Management uses systematic methodologies to determine its ACL for loans held for investment and certain off-balance-sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. The Company’s ACL recorded in the balance sheet reflects management’s best estimate within the range of expected credit losses. The Company recognizes in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments, or pools, for analysis. The Discounted Cash Flow (“DCF”) method is used for each loan in a pool, and the results are aggregated at the pool level. A periodic tendency to default and absolute loss given default are applied to a projective model of the loan’s cash flow while considering prepayment and principal curtailment effects. The analysis produces expected cash flows for each instrument in the pool by pairing loan-level term information (e.g., maturity date, payment amount, interest rate, etc.) with top-down pool assumptions (e.g., default rates and prepayment speeds). The Company has identified the following portfolio segments: Owner-Occupied Commercial Real Estate, Non-Owner Occupied Commercial Real Estate, Multifamily, Municipal, Commercial and Industrial, Commercial Construction and Land Development, Residential Construction, Residential Senior Mortgage, Residential Junior Mortgage, Revolving Mortgage, and Consumer and Other. In determining the proper level of the ACL, management has determined that the loss experience of the Bank provides the best basis for its assessment of expected credit losses. The Company therefore used its own historical credit loss experience by each loan segment over an economic cycle, while excluding loss experience from certain acquired institutions (i.e., failed banks). For most of the segment models for collectively evaluated loans, the Company incorporated two or more macroeconomic drivers using a statistical regression modeling methodology. Management considers forward-looking information in estimating expected credit losses. The Company subscribes to a third-party service which provides their quarterly macroeconomic baseline scenario and alternative scenarios for the United States economy. The baseline, along with the evaluation of alternative scenarios, is used by management to determine the best estimate within the range of expected credit losses. Management has evaluated the appropriateness of the reasonable and supportable forecast scenarios and has made adjustments as needed. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term mean of historical factors within four quarters using a straight-line approach. The Company generally uses a four-quarter forecast and a four-quarter reversion period. Included in its systematic methodology to determine its ACL, management considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation (i.e., formulaic model results). Each period, the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) Lending Policy; 2) Economic conditions not captured in models; 3) Volume and Mix of Loan Portfolio; 4) Past Due Trends; 5) Concentration Risk; 6) External Factors; and 7) Model Limitations. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company’s threshold for individually evaluated loans includes all non-accrual loans with a net book balance in excess of million. Management will monitor the credit environment and make adjustments to this threshold in the future if warranted. Based on the threshold above, consumer financial assets will generally remain in pools unless they meet the dollar threshold. The expected credit losses on individually evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset. Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , prospectively that requires the elimination of TDR guidance. Management measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications. Longstanding TDR accounting rules were replaced as of January 1, 2023 with ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (See Note 3 Recent Accounting Pronouncements). In accordance with the adoption of ASU 2022-02, any loans modified to a borrower experiencing financial difficulty are reviewed by the Bank to determine if an interest rate reduction, a term extension, an other-than-insignificant payment delay, a principal forgiveness, or any combination of these has occurred. Effective January 1, 2023, the ACL includes expected losses from modifications of receivables to borrowers experiencing financial difficulty. Losses on modifications of loans over million to borrowers experiencing financial difficulty are estimated on an individual basis. Because the effect of the remainder of modifications made to borrowers experiencing financial difficulty is already incorporated into the measurement methodologies used to estimate the allowance, they are accounted for as pooled loans. The effects of reasonably expected TDRs are no longer considered in the measurement of expected credit losses. Prior to the adoption of ASU No. 2022-02, when determining the contractual term, the Company considered expected prepayments but was precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expected it would execute a TDR with a borrower. In the event of a reasonably expected TDR, the Company factored the reasonably-expected TDR into the expected credit losses estimate. For consumer loans, the point at which a TDR was reasonably expected was when the Company approved the borrower’s application for a modification (i.e., the borrower qualifies for the TDR) or when the Credit Administration department approved loan concessions on substandard loans. For commercial loans, the point at which a TDR was reasonably expected was when the Company approved the loan for modification or when the Credit Administration department approved loan concessions on substandard loans. The Company used a discounted cash flow methodology for a TDR to calculate the effect of the concession provided to the borrower within the ACL. For purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e., allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition day, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the unpaid principal balance and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the Provision for Credit Losses in the Condensed Consolidated Statements of Net Income. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable. As of March 31, 2023 and December 31, 2022, the accrued interest receivables for loans recorded in Other Assets were The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the expected credit loss are recorded as a liability on the balance sheet. Management has determined that a majority of the Company’s off-balance sheet credit exposures are not unconditionally cancellable. Management completes funding studies based on historical data to estimate the percentage of unfunded loan commitments that will ultimately be funded to calculate the reserve for unfunded commitments. Management applies this funding rate, along with the loss factor rate determined for each pooled loan segment, to unfunded loan commitments, excluding unconditionally cancellable exposures and letters of credit, to arrive at the reserve for unfunded loan commitments. As of March 31, 2023 and December 31, 2022, the liabilities recorded for expected credit losses on unfunded commitments were million, respectively. Reclassification and Correction Certain amounts previously reported have been reclassified to conform to the current quarter’s presentation. Such reclassifications had no effect on net income and shareholders’ equity. The table below discloses the net change (increase or (decrease)) included in all the Condensed Consolidated Statements of Net Income line items in this Form 10-Q, as a result of the change in accounting treatment. There was no impact to Net Income or Shareholders’ Equity as previously reported. (Dollars in thousands) Three Months Ended March 31, INCOME STATEMENT 2022 Interest income: Effect to interest income on federal funds sold and interest-earning deposits with banks $ 7 Net effect to interest income 7 Effect to interest expense on deposits (37) Net effect to interest expense (37) Net effect to net interest income $ 44 Noninterest Income: Effect to correspondent banking and capital market income $ (44) Net effect to noninterest income $ (44) Net effect to net income $ — |
Recent Accounting and Regulator
Recent Accounting and Regulatory Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Recent Accounting and Regulatory Pronouncements | |
Recent Accounting and Regulatory Pronouncements | Note 3 — Recent Accounting and Regulatory Pronouncements Accounting Standards Adopted In March 2022, FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The amendments in this ASU eliminate the long-standing accounting guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors , as it is no longer meaningful due to the introduction of Topic 326, which requires an entity to consider lifetime expected credit losses on loans when establishing an allowance for credit losses. Thus, most losses that would have been realized for a TDR under Subtopic 310-40 are now captured by the accounting required under Topic 326. The amendments in this ASU also require that an entity disclose current-period gross write offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments – Credit Losses Measured at Amortized Cost . The Company adopted ASU No. 2022-02 effective January 1, 2023. We elected to apply a prospective transition method, which applies only to modifications occurring after the adoption date. For loans meeting the Bank’s materiality criteria, which includes loans in excess of $250,000, an assessment of whether a borrower is experiencing financial difficulty is made on the date of the modification. On the transition date, the former TDR loans as of December 31, 2022 were designated as individually evaluated loans on January 1, 2023 and retained the allowance for credit losses allocated to these loans at the adoption date as the credit risk of these did not change. Aside from the changes to the disclosures required by ASU No. 2022-02, the ASU did not have a material impact on our consolidated financial statements. Issued But Not Yet Adopted Accounting Standards In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848 – Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequently expanded the scope of ASU No. 2020-04 with the issuance of ASU No. 2021-01 and extended the sunset date to December 31, 2024 with ASU No. 2022-06. This update provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that will be discontinued. The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The main provisions for contract modifications include optional relief by allowing the modification as a continuation of the existing contract without additional analysis and other optional expedients regarding embedded features. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that will be discontinued because of reference rate reform. The amendments in this update were effective for all entities as of March 12, 2020 and may be applied through December 31, 2022. An entity may elect to apply the amendments in this update to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments in this update must be applied prospectively for all eligible contract modifications and hedging relationships. The Company has established a LIBOR Committee and various subcommittees, which have evaluated the impact of adopting and implementing ASU 2020-04 on the consolidated financial statements, including the evaluation of all of the Company’s contracts, hedging relationships and other transactions that will be affected by reference rates that are being discontinued. The cross-functional LIBOR Committee and subcommittees have (1) assessed the Company's current exposure to LIBOR indexed instruments and the data, systems and processes that will be impacted; (2) established a detailed implementation plan; and (3) developed a formal governance structure for the transition. The Company is in the process of developing and implementing various proactive steps to facilitate the transition on behalf of customers, which include the adoption and ongoing implementation of fallback provisions that provide for the determination of replacement rates for LIBOR-linked financial products; the adoption of new products linked to alternative reference rates, such as adjustable-rate mortgages, consistent with guidance provided by the U.S. regulators, the Alternative Reference Rates Committee, and government sponsored entities; the cessation of quoting LIBOR and originating new products linked to LIBOR by December 31, 2021; and the selection of SOFR indices as the replacement indices, and successful completion of systems testing using the SOFR replacement indices. The Company discontinued quoting LIBOR on September 30, 2021 and discontinued originating new products linked to LIBOR on December 31, 2021. The Company continues to evaluate its financial and operational infrastructure in its effort to transition all financial and strategic processes, systems, and models to reference rates other than LIBOR. The Company is in the process of developing and implementing processes to educate all client-facing associates and coordinate communications with customers regarding the transition. ASU 2020-04 provides temporary, optional expedients and exceptions to ease the potential burden in accounting for modifications of loan contracts, borrowings, and other transactions related to reference rate reform associated with the LIBOR transition if certain criteria are met. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2022-06 extended the effective date through December 31, 2024. The amendments are effective as of March 12, 2020 through December 31, 2024 and can be adopted at the instrument level on an ongoing basis. Management is adopting these option expedients beginning April 1, 2023 to coincide with the transition and modification of our Libor-exposed instruments beginning in the second quarter of 2023. These modifications have not had and are not expected to have a material impact on the consolidated financial statements. In March 2023, FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . The Proportional Amortization method was introduced by ASU No. 2014-01, but limited this amortization method to investments in low-income housing tax credit structures. The amendments in ASU 2023-02 will allow entities the option to elect whether they account for tax equity investments using the proportional amortization method if certain conditions are met, regardless of the program from which the income tax credits are received. The election would be on a program-by-program basis. The ASU would also require disclosures to be transparent about an entity’s investments that generate income tax credits and other income tax benefits. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years with early adoption permitted. The Company maintains investments in low-income housing tax structures and will evaluate whether it will change its current accounting treatment for low-income housing tax credits. The Company does not anticipate this ASU will have a material impact on its financial statements. |
Mergers and Acquisitions
Mergers and Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Mergers and Acquisitions | |
Mergers and Acquisitions | Note 4 — Mergers and Acquisitions Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or “ACBI”) On March 1, 2022, the Company acquired all of the outstanding common stock of Atlantic Capital in a stock transaction. Upon the terms and subject to the conditions set forth therein, Atlantic Capital merged with and into the Company, with the Company continuing as the surviving corporation in the merger. Immediately following the merger, Atlantic Capital’s wholly owned banking subsidiary, Atlantic Capital Bank, N.A. (“ACB”) merged with and into the Bank, which continues as the surviving bank. Shareholders of Atlantic Capital received shares of the Company’s common stock for each share of Atlantic Capital common stock they owned. In total, the purchase price for Atlantic Capital was million. In the acquisition, the Company acquired $2.4 billion of loans, including PPP loans, at fair value, net of $54.3 million, or 2.24%, estimated discount to the outstanding principal balance, representing 10.0% of the Company’s total loans at December 31, 2021. Of the total loans acquired, management identified million that had more than insignificantly deteriorated since origination and were thus determined to be PCD loans. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805. The Company recognized goodwill on this acquisition of million. The goodwill was calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. During three months ended March 31, 2023 and 2022, the Company incurred approximately $1.4 million and $5.6 million, respectively, of acquisition costs related to this transaction. These acquisition costs are reported in Merger and Branch Consolidation Related Expenses on the Company’s Condensed Consolidated Statements of Net Income. The Atlantic Capital transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by Atlantic Capital Adjustments Adjustments the Company Assets Cash and cash equivalents $ 250,134 $ 24 (a) $ — $ 250,158 Investment securities 717,332 (13,622) (b) — 703,710 Loans, net of allowance and mark 2,394,256 (18,964) (c) (5,614) (c) 2,369,678 Premises and equipment 16,892 2,608 (d) — 19,500 Intangible assets 22,572 (1,781) (e) — 20,791 Bank owned life insurance 74,613 — — 74,613 Deferred tax asset 30,231 2,273 (f) (1,025) (f) 31,479 Other assets 45,274 (1,277) (g) 7,557 (g) 51,554 Total assets $ 3,551,304 $ (30,739) $ 918 $ 3,521,483 Liabilities Deposits: Noninterest-bearing $ 1,411,671 $ — $ — $ 1,411,671 Interest-bearing 1,616,970 — — 1,616,970 Total deposits 3,028,641 — — 3,028,641 Federal funds purchased and securities sold under agreements to repurchase 50,000 — — 50,000 Other borrowings 74,131 4,286 (h) — 78,417 Other liabilities 50,711 (2,075) (i) — 48,636 Total liabilities 3,203,483 2,211 — 3,205,694 Net identifiable assets acquired over (under) liabilities assumed 347,821 (32,950) 918 315,789 Goodwill — 342,939 (918) 342,021 Net assets acquired over liabilities assumed $ 347,821 $ 309,989 $ — $ 657,810 Consideration: SouthState Corporation common shares issued 7,330,803 Purchase price per share of the Company's common stock $ 90.00 Company common stock issued ($659,772) and cash exchanged for fractional shares ($19) $ 659,791 Stock option conversion 1,135 Restricted stock unit conversion 2,870 Restricted stock awards conversion (unvested awards) (5,986) Fair value of total consideration transferred $ 657,810 Explanation of fair value adjustments (a)— Represents an adjustment to record time deposits with financial institutions at fair value (premium). (b)— Represents the reversal of Atlantic Capital's existing fair value adjustments of $17.2 million and the adjustment to record securities at fair value (discount) totaling $30.9 million (includes reclassification of all securities held as HTM to AFS totaling $237.6 million). (c)— Represents approximately 1.40%, or $34.0 million, net credit discount of the loan portfolio and 2.24% total net discount, or $54.3 million, including non-credit discount, based on a third-party valuation. Also, includes a reversal of Atlantic Capital's ending ACL of (d)— Represents the preliminary fair value adjustments of $2.6 million on fixed assets and leased assets. (e)— Represents approximately $17.5 million, or 0.63%, of CDI amount and $3.2 million for SBA servicing asset based on a third-party valuation. Atlantic Capital’s pre-merger goodwill and servicing asset of $19.9 million and $2.6 million, respectively, were written-off. (f)— Represents deferred tax asset related to fair value adjustments with marginal tax rate of 23.9%, which includes an adjustment from Atlantic Capital’s effective tax rate to the Company’s effective tax rate. The difference in effective tax rates relates to state income taxes. (g)— Represents the fair value adjustment (decrease) for low-income housing investments of $1.1 million, write-off of prepaid assets of $233,000, adjustments to receivables of $154,000 and fair value adjustment for Small Business Investment Company (“SBIC”) investments of $7.4 million. (h)— Represents the reversal of the existing Atlantic Capital’s issuance costs on subordinated debt of $0.9 million and recording the fair value adjustment (premium) of $3.4 million, based on a third-party valuation. (i)— Represents the reversal of $2.8 million of unfunded commitment liability at purchase date and the fair value adjustment to increase lease liabilities associated with rental facilities totaling $1.4 million. Also includes the reversal of uncertain tax liability of $0.7 million. Comparative and Pro Forma Financial Information for the Atlantic Capital Acquisition Pro-forma data for the three months ended March 31, 2022 listed in the table below presents pro-forma information as if the Atlantic Capital acquisition occurred at the beginning of 2022. These results combine the historical results of Atlantic Capital in the Company’s Consolidated Statements of Income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2022. Merger-related costs of $5.6 million from the Atlantic Capital acquisition were incurred during the first quarter of 2022 and were excluded from pro forma information below. No adjustments have been made to reduce the impact of any OREO write downs, investment securities sold or repayment of borrowings recognized by Atlantic Capital in 2022. The core system conversion for the Atlantic Capital merger was completed during third quarter of 2022. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition, which are not reflected in the pro forma amounts below. The total revenues presented below represent pro-forma net interest income plus pro-forma noninterest income: Pro Forma Three Months Ended (Dollars in thousands) March 31, 2022 Total revenues (net interest income plus noninterest income) $ 371,196 Net interest income $ 281,577 Net adjusted income available to the common shareholder $ 113,903 EPS — basic $ 1.49 EPS — diluted $ 1.48 The disclosures regarding the results of operations for Atlantic Capital subsequent to the acquisition date are omitted as this information is not practical to obtain. The majority of the fixed costs and purchase accounting entries were booked on the Company’s core system making it impractical to determine Atlantic Capital’s results of operation on a stand-alone basis. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2023 | |
Securities | |
Securities | Note 5 —Securities Investment Securities The following is the amortized cost and fair value of investment securities held to maturity: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value March 31, 2023: U.S. Government agencies $ 197,264 $ — $ (28,175) $ 169,089 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,553,373 — (238,470) 1,314,903 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 468,794 — (63,317) 405,477 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 360,962 — (68,141) 292,821 Small Business Administration loan-backed securities 56,280 — (10,958) 45,322 $ 2,636,673 $ — $ (409,061) $ 2,227,612 December 31, 2022: U.S. Government agencies $ 197,262 $ — $ (29,787) $ 167,475 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,591,646 — (255,093) 1,336,553 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 474,660 — (69,664) 404,996 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 362,586 — (66,304) 296,282 Small Business Administration loan-backed securities 57,087 — (12,225) 44,862 $ 2,683,241 $ — $ (433,073) $ 2,250,168 The following is the amortized cost and fair value of investment securities available for sale: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value March 31, 2023: U.S. Treasuries $ 273,035 $ — $ (4,939) $ 268,096 U.S. Government agencies 246,001 — (25,742) 220,259 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,951,725 — (278,563) 1,673,162 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 689,575 — (98,163) 591,412 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,180,323 8 (192,894) 987,437 State and municipal obligations 1,138,809 4 (171,856) 966,957 Small Business Administration loan-backed securities 466,462 194 (41,164) 425,492 Corporate securities 30,571 — (3,387) 27,184 $ 5,976,501 $ 206 $ (816,708) $ 5,159,999 December 31, 2022: U.S. Treasuries $ 272,416 $ — $ (6,778) $ 265,638 U.S. Government agencies 245,972 — (26,884) 219,088 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,996,405 — (298,052) 1,698,353 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 708,337 — (107,292) 601,045 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,196,700 2,542 (198,844) 1,000,398 State and municipal obligations 1,269,525 1,210 (205,883) 1,064,852 Small Business Administration loan-backed securities 491,203 302 (46,695) 444,810 Corporate securities 35,583 — (2,945) 32,638 $ 6,216,141 $ 4,054 $ (893,373) $ 5,326,822 During the three months ended March 31, 2023, there were gross gains of $1.3 million and gross losses of $1.3 million, a net gain of $45,000 , realized from the sale of available for sale securities. During the three months ended March 31, 2022, the Company sold securities totaling million that were acquired from ACBI on March 1, 2022. These securities were marked to fair value at merger and therefore resulted in The following is the amortized cost and carrying value of other investment securities: Carrying (Dollars in thousands) Value March 31, 2023: Federal Home Loan Bank stock $ 53,335 Federal Reserve Bank stock 150,261 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 10,832 $ 217,991 December 31, 2022: Federal Home Loan Bank stock $ 15,085 Federal Reserve Bank stock 150,261 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 10,808 $ 179,717 Our other investment securities consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of March 31, 2023, we determined that there was no impairment on other investment securities. The amortized cost and fair value of debt securities at March 31, 2023 by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 254,326 $ 250,191 Due after one year through five years 101,073 94,058 309,053 295,225 Due after five years through ten years 382,261 337,412 1,148,155 1,001,653 Due after ten years 2,153,339 1,796,142 4,264,967 3,612,930 $ 2,636,673 $ 2,227,612 $ 5,976,501 $ 5,159,999 Information pertaining to our securities with gross unrealized losses at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows: Less Than Twelve Months Twelve Months or More Gross Unrealized Fair Gross Unrealized Fair (Dollars in thousands) Losses Value Losses Value March 31, 2023: Securities Held to Maturity U.S. Government agencies $ — $ — $ 28,175 $ 169,089 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises — — 238,470 1,314,903 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 1,187 45,925 62,130 359,552 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 13,414 57,771 54,727 235,050 Small Business Administration loan-backed securities — — 10,958 45,322 $ 14,601 $ 103,696 $ 394,460 $ 2,123,916 Securities Available for Sale U.S. Treasuries $ — $ — $ 4,939 $ 268,096 U.S. Government agencies 1,065 53,935 24,677 166,324 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,027 32,334 277,536 1,640,828 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 2,650 73,464 95,513 517,948 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 10,606 107,009 182,288 874,332 State and municipal obligations 4,250 74,784 167,606 888,984 Small Business Administration loan-backed securities 428 80,092 40,736 278,346 Corporate securities 635 5,863 2,752 21,321 $ 20,661 $ 427,481 $ 796,047 $ 4,656,179 December 31, 2022: Securities Held to Maturity U.S. Government agencies $ 5,514 $ 78,833 $ 24,273 $ 88,642 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 65,181 513,086 189,912 823,467 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 30,284 277,868 39,380 127,128 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 14,318 82,895 51,986 213,387 Small Business Administration loan-backed securities — — 12,225 44,862 $ 115,297 $ 952,682 $ 317,776 $ 1,297,486 Securities Available for Sale U.S. Treasuries $ 6,778 $ 265,638 $ — $ — U.S. Government agencies 8,193 138,807 18,691 80,281 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 42,767 459,773 255,285 1,238,580 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 21,450 274,082 85,842 326,963 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 17,156 206,228 181,688 767,002 State and municipal obligations 97,084 616,631 108,799 391,848 Small Business Administration loan-backed securities 2,152 92,535 44,543 264,933 Corporate securities 2,209 28,374 736 4,264 $ 197,789 $ 2,082,068 $ 695,584 $ 3,073,871 Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the extent to which the fair value has been less than cost, (4) our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third-party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. The Company performed an analysis that determined that the following securities have a zero expected credit loss: U.S. Treasury Securities, Agency-Backed Securities including securities issued by Ginnie Mae, Fannie Mae, FHLB, FFCB and SBA. All of the U.S. Treasury and Agency-Backed Securities have the full faith and credit backing of the United States Government or one of its agencies. Municipal securities and all other securities that do not have a zero expected credit loss are evaluated quarterly to determine whether there is a credit loss associated with a decline in fair value. All debt securities in an unrealized loss position as of March 31, 2023 continue to perform as scheduled and we do not believe there is a credit loss or a provision for credit losses is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities. See Note 2 — Summary of Significant Account Policies for further discussion. Management continues to monitor all of our securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods. At March 31, 2023, investment securities with a carrying value of $2.4 billion were pledged to secure public funds deposits and for other purposes required and permitted by law. The carrying value total of million pledged to secure interest rate swap positions with correspondents. At December 31, 2023, investment securities with a carrying value of billion were pledged to secure public funds deposits and for other purposes required and permitted by law. The carrying value total of Trading Securities At March 31, 2023 and December 31, 2022, trading securities, at estimated fair value, were as follows: March 31, December 31, (Dollars in thousands) 2023 2022 U.S. Government agencies $ 3,925 $ 11,190 Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises 3,439 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,304 4,589 State and municipal obligations 7,122 13,993 Other debt securities 249 1,491 $ 16,039 $ 31,263 Net losses on trading securities for the three months ended March 31, 2023 and 2022 were as follows: Three Months Ended March 31, (Dollars in thousands) 2023 2022 Net losses on sales transaction $ (139) $ (1,239) Net mark to mark losses (6) (1,976) Net losses on trading securities $ (145) $ (3,215) |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Loans | |
Loans | Note 6 — Loans The following is a summary of total loans: March 31, December 31, (Dollars in thousands) 2023 2022 Loans: Construction and land development (1) $ 2,749,290 $ 2,860,360 Commercial non-owner occupied 8,236,216 8,072,959 Commercial owner occupied real estate 5,522,514 5,460,193 Consumer owner occupied (2) 5,528,546 5,162,042 Home equity loans 1,332,285 1,313,168 Commercial and industrial 5,321,306 5,313,483 Other income producing property 721,291 696,242 Consumer 1,277,549 1,278,426 Other loans 7,145 20,989 Total loans 30,696,142 30,177,862 Less allowance for credit losses (370,645) (356,444) Loans, net $ 30,325,497 $ 29,821,418 (1) Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans. (2) Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as loans collateralized by 1-4 family owner occupied property with a business intent. The above table reflects the loan portfolio at the amortized cost basis for the periods March 31, 2023 and December 31, 2022, to include net deferred costs of $55.3 million and $49.7 million, respectively, and unamortized discount total related to loans acquired of $64.7 million and $72.1 million, respectively. Accrued interest receivables of The Company purchased loans through its acquisition of ACBI, for which there was, at acquisition, evidence of more than an insignificant deterioration of credit quality since origination. The carrying amount of those loans, at acquisition, is as follows: (Dollars in thousands) March 1, 2022 Book value of acquired loans at acquisition $ 137,874 Allowance for credit losses at acquisition (13,758) Non-credit discount at acquisition (5,943) Carrying value or book value of acquired loans at acquisition $ 118,173 As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve. The Company utilizes a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum every six months. A description of the general characteristics of the risk grades is as follows: ● Pass —These loans range from minimal credit risk to average, however, still acceptable credit risk. ● Special mention —A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. ● Substandard —A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful —A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner occupied loans are collateralized by 1-4 family owner occupied property with a business intent. The following tables present the credit risk profile by risk grade of commercial loans by origination year as of March 31, 2023 and December 31, 2022: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Construction and land development Risk rating: Pass $ 65,979 $ 898,029 $ 602,843 $ 109,487 $ 34,046 $ 33,860 $ 75,139 $ 1,819,383 Special mention — 2,022 1,193 264 20,255 7,671 — 31,405 Substandard 1,518 139 164 9 1,334 1,590 — 4,754 Doubtful — — — — — 6 — 6 Total Construction and land development $ 67,497 $ 900,190 $ 604,200 $ 109,760 $ 55,635 $ 43,127 $ 75,139 $ 1,855,548 Construction and land development Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial non-owner occupied Risk rating: Pass $ 144,211 $ 2,339,057 $ 1,964,957 $ 799,333 $ 892,806 $ 1,834,435 $ 89,240 $ 8,064,039 Special mention 95 9,442 708 12,167 5,423 60,130 — 87,965 Substandard 2,875 5,697 38,180 1,405 10,164 25,637 253 84,211 Doubtful — — 1 — — — — 1 Total Commercial non-owner occupied $ 147,181 $ 2,354,196 $ 2,003,846 $ 812,905 $ 908,393 $ 1,920,202 $ 89,493 $ 8,236,216 Commercial non-owner occupied Current-period gross charge-offs $ — $ — $ 51 $ — $ — $ — $ — $ 51 Commercial Owner Occupied Risk rating: Pass $ 165,248 $ 1,052,756 $ 1,154,709 $ 712,735 $ 702,606 $ 1,437,016 $ 70,057 $ 5,295,127 Special mention 342 3,576 24,689 3,285 4,397 37,842 1,020 75,151 Substandard 1,916 14,645 34,913 19,882 12,394 68,401 80 152,231 Doubtful — — — 1 — 4 — 5 Total commercial owner occupied $ 167,506 $ 1,070,977 $ 1,214,311 $ 735,903 $ 719,397 $ 1,543,263 $ 71,157 $ 5,522,514 Commercial owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Risk rating: Pass $ 417,089 $ 1,349,157 $ 807,583 $ 478,312 $ 253,680 $ 514,686 $ 1,354,618 $ 5,175,125 Special mention 533 6,705 4,488 702 1,698 4,791 23,114 42,031 Substandard 2,464 4,025 27,306 5,574 6,359 13,109 45,274 104,111 Doubtful 1 2 17 1 — 16 2 39 Total commercial and industrial $ 420,087 $ 1,359,889 $ 839,394 $ 484,589 $ 261,737 $ 532,602 $ 1,423,008 $ 5,321,306 Commercial and industrial Current-period gross charge-offs $ 2 $ 1,097 $ 160 $ 14 $ 149 $ 280 $ 104 $ 1,806 Other income producing property Risk rating: Pass $ 14,839 $ 161,959 $ 107,741 $ 58,591 $ 45,660 $ 142,437 $ 49,887 $ 581,114 Special mention 80 603 859 1,007 337 3,387 2,076 8,349 Substandard — 842 900 294 236 7,081 614 9,967 Doubtful — 397 — — — 6 — 403 Total other income producing property $ 14,919 $ 163,801 $ 109,500 $ 59,892 $ 46,233 $ 152,911 $ 52,577 $ 599,833 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer owner occupied Risk rating: Pass $ 1,349 $ 4,740 $ 3,117 $ 1,720 $ 382 $ 467 $ 17,524 $ 29,299 Special mention — 528 19 132 281 — — 960 Substandard — 7 94 931 1,601 193 151 2,977 Doubtful — — — — — 1 — 1 Total Consumer owner occupied $ 1,349 $ 5,275 $ 3,230 $ 2,783 $ 2,264 $ 661 $ 17,675 $ 33,237 Consumer owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other loans Risk rating: Pass $ 7,145 $ — $ — $ — $ — $ — $ — $ 7,145 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 7,145 $ — $ — $ — $ — $ — $ — $ 7,145 Other loans Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Commercial Loans Risk rating: Pass $ 815,860 $ 5,805,698 $ 4,640,950 $ 2,160,178 $ 1,929,180 $ 3,962,901 $ 1,656,465 $ 20,971,232 Special mention 1,050 22,876 31,956 17,557 32,391 113,821 26,210 245,861 Substandard 8,773 25,355 101,557 28,095 32,088 116,011 46,372 358,251 Doubtful 1 399 18 2 — 33 2 455 Total Commercial Loans $ 825,684 $ 5,854,328 $ 4,774,481 $ 2,205,832 $ 1,993,659 $ 4,192,766 $ 1,729,049 $ 21,575,799 Total Commercial Loans Current-period gross charge-offs $ 2 $ 1,097 $ 211 $ 14 $ 149 $ 280 $ 104 $ 1,857 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Construction and land development Risk rating: Pass $ 875,751 $ 742,985 $ 134,996 $ 63,439 $ 14,521 $ 29,442 $ 65,656 $ 1,926,790 Special mention 1,643 988 268 76 7,219 2,068 — 12,262 Substandard 214 10,409 11 2,326 — 4,282 — 17,242 Doubtful — — — — — 6 — 6 Total Construction and land development $ 877,608 $ 754,382 $ 135,275 $ 65,841 $ 21,740 $ 35,798 $ 65,656 $ 1,956,300 Construction and land development Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial non-owner occupied Risk rating: Pass $ 2,245,943 $ 1,849,079 $ 816,791 $ 959,707 $ 506,350 $ 1,417,397 $ 108,759 $ 7,904,026 Special mention 7,579 4,225 936 11,036 24,067 32,110 5,000 84,953 Substandard 13,256 25,557 609 9,383 6,472 26,366 2,257 83,900 Doubtful — 1 — 79 — — — 80 Total Commercial non-owner occupied $ 2,266,778 $ 1,878,862 $ 818,336 $ 980,205 $ 536,889 $ 1,475,873 $ 116,016 $ 8,072,959 Commercial non-owner occupied Current-period gross charge-offs $ 8 $ — $ — $ — $ — $ 360 $ — $ 368 Commercial Owner Occupied Risk rating: Pass $ 1,046,562 $ 1,136,289 $ 725,040 $ 709,669 $ 446,497 $ 1,080,522 $ 75,506 $ 5,220,085 Special mention 3,620 25,263 3,383 7,934 7,160 34,724 1,294 83,378 Substandard 12,861 34,210 19,962 16,502 9,487 62,808 895 156,725 Doubtful — — 1 — — 4 — 5 Total commercial owner occupied $ 1,063,043 $ 1,195,762 $ 748,386 $ 734,105 $ 463,144 $ 1,178,058 $ 77,695 $ 5,460,193 Commercial owner occupied Current-period gross charge-offs — — — 1,143 — 833 — 1,976 Commercial and industrial Risk rating: Pass $ 1,566,203 $ 895,368 $ 506,655 $ 274,446 $ 212,522 $ 333,286 $ 1,386,678 $ 5,175,158 Special mention 5,885 3,782 3,401 1,859 3,378 1,316 24,347 43,968 Substandard 6,308 27,974 4,770 6,591 6,783 8,476 32,876 93,778 Doubtful — — — — 155 422 2 579 Total commercial and industrial $ 1,578,396 $ 927,124 $ 514,826 $ 282,896 $ 222,838 $ 343,500 $ 1,443,903 $ 5,313,483 Commercial and industrial Current-period gross charge-offs 4 2,825 198 630 2,214 2,589 1,742 10,202 Other income producing property Risk rating: Pass $ 149,793 $ 92,887 $ 60,473 $ 46,189 $ 47,155 $ 107,436 $ 46,179 $ 550,112 Special mention 952 957 1,257 378 190 3,652 2,328 9,714 Substandard 876 359 1,281 300 214 11,214 1,065 15,309 Doubtful 401 — — — — 136 — 537 Total other income producing property $ 152,022 $ 94,203 $ 63,011 $ 46,867 $ 47,559 $ 122,438 $ 49,572 $ 575,672 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ 46 $ 50 $ 96 Consumer owner occupied Risk rating: Pass $ 5,947 $ 3,124 $ 1,811 $ 418 $ 68 $ 332 $ 15,910 $ 27,610 Special mention 537 20 136 284 — — 66 1,043 Substandard 13 95 12 1,614 — 202 151 2,087 Doubtful — — — — 1 — — 1 Total Consumer owner occupied $ 6,497 $ 3,239 $ 1,959 $ 2,316 $ 69 $ 534 $ 16,127 $ 30,741 Consumer owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other loans Risk rating: Pass $ 20,989 $ — $ — $ — $ — $ — $ — $ 20,989 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 20,989 $ — $ — $ — $ — $ — $ — $ 20,989 Other loans Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Commercial Loans Risk rating: Pass $ 5,911,188 $ 4,719,732 $ 2,245,766 $ 2,053,868 $ 1,227,113 $ 2,968,415 $ 1,698,688 $ 20,824,770 Special mention 20,216 35,235 9,381 21,567 42,014 73,870 33,035 235,318 Substandard 33,528 98,604 26,645 36,716 22,956 113,348 37,244 369,041 Doubtful 401 1 1 79 156 568 2 1,208 Total Commercial Loans $ 5,965,333 $ 4,853,572 $ 2,281,793 $ 2,112,230 $ 1,292,239 $ 3,156,201 $ 1,768,969 $ 21,430,337 Current-period gross charge-offs $ 12 $ 2,825 $ 198 $ 1,773 $ 2,214 $ 3,828 $ 1,792 $ 12,642 For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots. The following table presents the credit risk profile by past due status of consumer loans by origination year as of March 31, 2023: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Consumer owner occupied Days past due: Current $ 240,632 $ 1,748,552 $ 1,587,281 $ 657,794 $ 309,618 $ 939,645 $ — $ 5,483,522 30 days past due — 438 451 323 672 2,242 — 4,126 60 days past due — 243 97 620 — 746 — 1,706 90 days past due — 676 268 853 683 3,475 — 5,955 Total Consumer owner occupied $ 240,632 $ 1,749,909 $ 1,588,097 $ 659,590 $ 310,973 $ 946,108 $ — $ 5,495,309 Consumer owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ 2 $ — $ 2 Home equity loans Days past due: Current $ 4,563 $ 7,084 $ 5,367 $ 3,733 $ 1,141 $ 17,773 $ 1,287,131 $ 1,326,792 30 days past due — 273 — — 89 1,003 2,424 3,789 60 days past due — 59 — — — 221 494 774 90 days past due — — 162 21 277 121 349 930 Total Home equity loans $ 4,563 $ 7,416 $ 5,529 $ 3,754 $ 1,507 $ 19,118 $ 1,290,398 $ 1,332,285 Home equity loans Current-period gross charge-offs $ — $ — $ — $ 39 $ — $ — $ — $ 39 Consumer Days past due: Current $ 104,807 $ 383,665 $ 187,023 $ 100,664 $ 78,646 $ 173,622 $ 224,373 $ 1,252,800 30 days past due — 252 449 37 107 1,213 11,052 13,110 60 days past due — 231 19 49 55 242 7,531 8,127 90 days past due — 456 76 39 34 1,400 1,507 3,512 Total consumer $ 104,807 $ 384,604 $ 187,567 $ 100,789 $ 78,842 $ 176,477 $ 244,463 $ 1,277,549 Consumer Current-period gross charge-offs $ 20 $ 295 $ 100 $ 79 $ 100 $ 244 $ 1,891 $ 2,729 Construction and land development Days past due: Current $ 20,979 $ 554,627 $ 251,650 $ 35,810 $ 11,006 $ 18,336 $ 615 $ 893,023 30 days past due — 325 — — — 279 — 604 60 days past due — — — 22 — 92 — 114 90 days past due — — — 1 — — — 1 Total Construction and land development $ 20,979 $ 554,952 $ 251,650 $ 35,833 $ 11,006 $ 18,707 $ 615 $ 893,742 Construction and land development Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other income producing property Days past due: Current $ 3,664 $ 45,269 $ 20,833 $ 4,812 $ 2,624 $ 43,104 $ 604 $ 120,910 30 days past due — — — — — 292 — 292 60 days past due — — — — — — — — 90 days past due — — — — — 256 — 256 Total other income producing property $ 3,664 $ 45,269 $ 20,833 $ 4,812 $ 2,624 $ 43,652 $ 604 $ 121,458 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Consumer Loans Days past due: Current $ 374,645 $ 2,739,197 $ 2,052,154 $ 802,813 $ 403,035 $ 1,192,480 $ 1,512,723 $ 9,077,047 30 days past due — 1,288 900 360 868 5,029 13,476 21,921 60 days past due — 533 116 691 55 1,301 8,025 10,721 90 days past due — 1,132 506 914 994 5,252 1,856 10,654 Total Consumer Loans $ 374,645 $ 2,742,150 $ 2,053,676 $ 804,778 $ 404,952 $ 1,204,062 $ 1,536,080 $ 9,120,343 Current-period gross charge-offs $ 20 $ 295 $ 100 $ 118 $ 100 $ 246 $ 1,891 $ 2,770 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Total Loans $ 1,200,329 $ 8,596,478 $ 6,828,157 $ 3,010,610 $ 2,398,611 $ 5,396,828 $ 3,265,129 $ 30,696,142 Current-period gross charge-offs $ 890 $ 524 $ 311 $ 132 $ 249 $ 526 $ 1,995 $ 4,627 The following table presents the credit risk profile by past due status of consumer loans by origination year as of December 31, 2022: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Consumer owner occupied Days past due: Current $ 1,695,454 $ 1,467,080 $ 657,005 $ 315,458 $ 187,580 $ 792,572 $ — $ 5,115,149 30 days past due 1,316 1,254 1,681 664 272 2,028 — 7,215 60 days past due 255 337 579 — 242 1,650 — 3,063 90 days past due — 944 776 454 664 3,036 — 5,874 Total Consumer owner occupied $ 1,697,025 $ 1,469,615 $ 660,041 $ 316,576 $ 188,758 $ 799,286 $ — $ 5,131,301 Consumer owner occupied Current-period gross charge-offs $ 25 $ — $ — $ 6 $ 23 $ 66 $ — $ 120 Home equity loans Days past due: Current $ 5,921 $ 5,231 $ 3,282 $ 1,560 $ 1,955 $ 17,941 $ 1,272,848 $ 1,308,738 30 days past due — — 155 77 418 422 1,586 2,658 60 days past due — — 19 36 70 26 540 691 90 days past due — — 60 87 — 611 323 1,081 Total Home equity loans $ 5,921 $ 5,231 $ 3,516 $ 1,760 $ 2,443 $ 19,000 $ 1,275,297 $ 1,313,168 Home equity loans Current-period gross charge-offs $ — $ — $ — $ 19 $ — $ 280 $ 146 $ 445 Consumer Days past due: Current $ 407,825 $ 206,003 $ 111,210 $ 86,008 $ 44,303 $ 141,053 $ 248,314 $ 1,244,716 30 days past due 718 194 78 174 63 1,255 17,471 19,953 60 days past due 55 103 107 36 144 557 9,836 10,838 90 days past due 126 60 58 66 165 1,660 784 2,919 Total consumer $ 408,724 $ 206,360 $ 111,453 $ 86,284 $ 44,675 $ 144,525 $ 276,405 $ 1,278,426 Consumer Current-period gross charge-offs $ 254 $ 653 $ 337 $ 265 $ 62 $ 664 $ 7,979 $ 10,214 Construction and land development Days past due: Current $ 466,475 $ 351,485 $ 50,472 $ 14,053 $ 7,006 $ 13,588 $ 379 $ 903,458 30 days past due 2 — — 57 23 43 — 125 60 days past due — — — — — — — — 90 days past due — — 436 — — 41 — 477 Total Construction and land development $ 466,477 $ 351,485 $ 50,908 $ 14,110 $ 7,029 $ 13,672 $ 379 $ 904,060 Construction and land development Current-period gross charge-offs $ — $ — $ 21 $ — $ — $ 4 $ — $ 25 Other income producing property Days past due: Current $ 45,717 $ 21,421 $ 4,937 $ 2,663 $ 4,322 $ 40,680 $ 624 $ 120,364 30 days past due — — — — — 62 — 62 60 days past due — — — — — 23 — 23 90 days past due — — — — — 121 — 121 Total other income producing property $ 45,717 $ 21,421 $ 4,937 $ 2,663 $ 4,322 $ 40,886 $ 624 $ 120,570 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Consumer Loans Days past due: Current $ 2,621,392 $ 2,051,220 $ 826,906 $ 419,742 $ 245,166 $ 1,005,834 $ 1,522,165 $ 8,692,425 30 days past due 2,036 1,448 1,914 972 776 3,810 19,057 30,013 60 days past due 310 440 705 72 456 2,256 10,376 14,615 90 days past due 126 1,004 1,330 607 829 5,469 1,107 10,472 Total Consumer Loans $ 2,623,864 $ 2,054,112 $ 830,855 $ 421,393 $ 247,227 $ 1,017,369 $ 1,552,705 $ 8,747,525 Current-period gross charge-offs $ 279 $ 653 $ 358 $ 290 $ 85 $ 1,014 $ 8,125 $ 10,804 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Total Loans $ 8,589,197 $ 6,907,684 $ 3,112,648 $ 2,533,623 $ 1,539,466 $ 4,173,570 $ 3,321,674 $ 30,177,862 Current-period gross charge-offs $ 291 $ 3,478 $ 556 $ 2,063 $ 2,299 $ 4,842 $ 9,917 $ 23,446 The following table presents an aging analysis of past due accruing loans, segregated by class. 30 - 59 Days 60 - 89 Days 90+ Days Total Non- Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Accruing Loans March 31, 2023 Construction and land development $ 980 $ 4,050 $ — $ 5,030 $ 2,743,954 $ 306 $ 2,749,290 Commercial non-owner occupied 4,410 1,778 — 6,188 8,208,270 21,758 8,236,216 Commercial owner occupied 3,841 4,552 1,665 10,058 5,476,893 35,563 5,522,514 Consumer owner occupied 2,521 1,344 — 3,865 5,505,300 19,381 5,528,546 Home equity loans 2,811 673 — 3,484 1,323,065 5,736 1,332,285 Commercial and industrial 21,931 9,618 1,837 33,386 5,257,967 29,953 5,321,306 Other income producing property 2,224 156 147 2,527 715,773 2,991 721,291 Consumer 13,015 8,002 1 21,018 1,251,249 5,282 1,277,549 Other loans — — — — 7,145 — 7,145 $ 51,733 $ 30,173 $ 3,650 $ 85,556 $ 30,489,616 $ 120,970 $ 30,696,142 December 31, 2022 Construction and land development $ 2,146 $ 3,653 $ — $ 5,799 $ 2,853,734 $ 827 $ 2,860,360 Commercial non-owner occupied 1,158 978 77 2,213 8,050,321 20,425 8,072,959 Commercial owner occupied 10,748 2,059 2,231 15,038 5,410,066 35,089 5,460,193 Consumer owner occupied 6,001 744 40 6,785 5,137,950 17,307 5,162,042 Home equity loans 2,527 361 — 2,888 1,303,964 6,316 1,313,168 Commercial and industrial 24,500 11,677 1,704 37,881 5,258,473 17,129 5,313,483 Other income producing property 1,623 1,480 298 3,401 690,107 2,734 696,242 Consumer 19,713 10,655 — 30,368 1,243,660 4,398 1,278,426 Other loans — — — — 20,989 — 20,989 $ 68,416 $ 31,607 $ 4,350 $ 104,373 $ 29,969,264 $ 104,225 $ 30,177,862 The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of March 31, 2023 and the information pertaining to nonaccrual loans by class, including restructured loans as of December 31, 2023. March 31, Greater than Non-accrual December 31, (Dollars in thousands) 2023 90 Days Accruing (1) with no allowance (1) 2022 Construction and land development $ 306 $ — $ 8 $ 827 Commercial non-owner occupied 21,758 — 11,338 20,425 Commercial owner occupied real estate 35,563 1,665 15,034 35,089 Consumer owner occupied 19,381 — 5 17,307 Home equity loans 5,736 — 1,489 6,316 Commercial and industrial 29,953 1,837 6,252 17,129 Other income producing property 2,991 147 — 2,734 Consumer 5,282 1 — 4,398 Total loans on nonaccrual status $ 120,970 $ 3,650 $ 34,126 $ 104,225 (1) – Greater than 90 days accruing and non-accrual with no allowance loans at March 31, 2023. There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 2 Summary of Significant Accounting Policies for further detailed on individually evaluated loans. The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period: March 31, Collateral December 31, Collateral (Dollars in thousands) 2023 Coverage % 2022 Coverage % Commercial owner occupied real estate Industrial $ 8,166 $ 9,344 114% $ — $ — Other 6,868 17,012 248% 14,638 |
Allowance for Credit Losses (AC
Allowance for Credit Losses (ACL) | 3 Months Ended |
Mar. 31, 2023 | |
Allowance for Credit Losses (ACL) | |
Allowance for Credit Losses (ACL) | Note 7 — Allowance for Credit Losses (ACL) See Note 2 — Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q for further detailed descriptions of our estimation process and methodology related to the allowance for credit losses. The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows: Residential Residential Residential Other CRE Owner Non-Owner (Dollars in thousands) Mortgage Sr. Mortgage Jr. HELOC Construction C&D Consumer Multifamily Municipal Occupied Occupied CRE C & I Total Three Months Ended March 31, 2023 Allowance for credit losses: Balance at end of period December 31, 2022 $ 72,188 $ 405 $ 14,886 $ 8,974 $ 45,410 $ 22,767 $ 3,684 $ 849 $ 58,083 $ 78,485 $ 50,713 $ 356,444 Charge-offs (2) — (39) — — (2,729) — — — (51) (1,806) (4,627) Recoveries 294 5 245 72 258 584 — — 293 106 1,732 3,589 Net (charge offs) recoveries 292 5 206 72 258 (2,145) — — 293 55 (74) (1,038) Provision (recovery) (1) 4,871 (61) (774) 130 9,401 2,697 1,823 30 (835) 3,933 (5,976) 15,239 Balance at end of period March 31, 2023 $ 77,351 $ 349 $ 14,318 $ 9,176 $ 55,069 $ 23,319 $ 5,507 $ 879 $ 57,541 $ 82,473 $ 44,663 $ 370,645 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 77,982 $ 350 $ 12,229 $ 8,994 $ 49,865 $ 23,319 $ 5,369 $ 731 $ 49,297 $ 78,013 $ 35,355 $ 341,504 Individually evaluated 197 — 2,285 — 155 — — — 6,812 2,721 4,612 16,782 Total quantitative allowance 78,179 350 14,514 8,994 50,020 23,319 5,369 731 56,109 80,734 39,967 358,286 Qualitative allowance (828) (1) (196) 182 5,049 — 138 148 1,432 1,739 4,696 12,359 Balance at end of period March 31, 2023 $ 77,351 $ 349 $ 14,318 $ 9,176 $ 55,069 $ 23,319 $ 5,507 $ 879 $ 57,541 $ 82,473 $ 44,663 $ 370,645 Three Months Ended March 31, 2022 Allowance for credit losses: Balance at end of period December 31, 2021 $ 47,036 $ 611 $ 13,325 $ 4,997 $ 37,593 $ 23,149 $ 4,921 $ 565 $ 61,794 $ 79,649 $ 28,167 $ 301,807 Initial Allowance for PCD loans acquired during period 84 — — — 86 — — — 1,479 — 7,569 9,218 Initial Allowance for Non PCD loans acquired during period 352 26 132 2 1,887 51 426 — 2,519 2,697 5,605 13,697 Charge-offs (58) (19) (218) — (4) (2,661) — — (371) — (2,159) (5,490) Recoveries 394 55 257 3 234 532 — — 314 69 1,309 3,167 Net (charge offs) recoveries 336 36 39 3 230 (2,129) — — (57) 69 (850) (2,323) Provision (recovery) (1) (1,806) (87) 175 614 (14,438) 828 (1,444) 42 (16,641) 13,945 (3,191) (22,003) Balance at end of period March 31, 2022 $ 46,002 $ 586 $ 13,671 $ 5,616 $ 25,358 $ 21,899 $ 3,903 $ 607 $ 49,094 $ 96,360 $ 37,300 $ 300,396 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 45,805 $ 586 $ 12,301 $ 5,616 $ 24,770 $ 21,899 $ 3,903 $ 607 $ 45,302 $ 95,051 $ 32,476 $ 288,316 Individually evaluated 168 — 1,357 — 588 — — — 2,960 — 3,358 8,431 Total quantitative allowance 45,973 586 13,658 5,616 25,358 21,899 3,903 607 48,262 95,051 35,834 296,747 Qualitative allowance 29 — 13 — — — — — 832 1,309 1,466 3,649 Balance at end of period March 31, 2022 $ 46,002 $ 586 $ 13,671 $ 5,616 $ 25,358 $ 21,899 $ 3,903 $ 607 $ 49,094 $ 96,360 $ 37,300 $ 300,396 (1) Provision for credit losses for unfunded commitments of $17.9 million was recorded during the first quarter of 2023, compared to a negative provision (recovery) for credit losses of ($142,000) , net of the provision for $3.4 million recorded for the unfunded commitments acquired from ACBI, recorded during the first quarter of 2022 that is not included in the above table. |
Other Real Estate Owned and Ban
Other Real Estate Owned and Bank Properties Held for Sale | 3 Months Ended |
Mar. 31, 2023 | |
Other Real Estate Owned and Bank Properties Held for Sale | |
Other Real Estate Owned and Bank Premises Held for Sale | Note 8 — Other Real Estate Owned and Bank Properties Held for Sale The following is a summary of information pertaining to OREO and Bank Properties Held for Sale: (Dollars in thousands) OREO Bank Properties Held for Sale Total Balance, December 31, 2022 $ 1,023 $ 17,754 $ 18,777 Additions, net 2,826 — 2,826 Write-downs — (409) (409) Sold (376) (621) (997) Balance, March 31, 2023 $ 3,473 $ 16,724 $ 20,197 At March 31, 2023, there were a total of six properties included in OREO 31, 2022. At March 31, 2023, there were a total of 31, 2022. At March 31, 2023, we had no residential real estate included in OREO and |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Leases | Note 9 — Leases As of March 31, 2023 and December 31, 2022, we had operating right-of-use (“ROU”) assets of $104.7 million and $108.0 million, respectively, and operating lease liabilities of $112.4 million and $115.6 million, respectively. We maintain operating leases on land and buildings for some of our operating centers, branch facilities and ATM locations. Most leases include one or more . The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. Three Months Ended (Dollars in thousands) March 31, 2023 2022 Lease Cost Components: Amortization of ROU assets - finance leases $ 117 $ 117 Interest on lease liabilities - finance leases 11 13 Operating lease cost (cost resulting from lease payments) 4,240 4,333 Short-term lease cost 109 143 Variable lease cost (cost excluded from lease payments) 634 437 Total lease cost $ 5,111 $ 5,043 Supplemental Cash Flow and Other Information Related to Leases: Finance lease - operating cash flows $ 11 $ 13 Finance lease - financing cash flows 110 108 Operating lease - operating cash flows (fixed payments) 4,097 4,181 Operating lease - operating cash flows (net change asset/liability) (3,287) (3,303) New ROU assets - operating leases — 12,428 New ROU assets - finance leases — — Weighted - average remaining lease term (years) - finance leases 5.18 6.17 Weighted - average remaining lease term (years) - operating leases 9.88 10.47 Weighted - average discount rate - finance leases 1.7% 1.7% Weighted - average discount rate - operating leases 3.0% 3.0% Operating lease payments due: 2023 (excluding the quarter ended March 31, 2023) $ 12,226 2024 15,011 2025 13,548 2026 13,135 2027 12,172 Thereafter 66,550 Total undiscounted cash flows 132,642 Discount on cash flows (20,233) Total operating lease liabilities $ 112,409 As of March 31, 2023, the Company held a small number of finance leases assumed in connection to the CenterState merger completed in 2020. These leases are all real estate leases. Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained. At March 31, 2023, we did not maintain any leases with related parties, and determined that the number and dollar amount of our equipment leases was immaterial. As of March 31, 2023, we had additional operating leases that have not yet commenced. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Deposits | |
Deposits | Note 10 — Deposits Our total deposits are comprised of the following: March 31, December 31, (Dollars in thousands) 2023 2022 Noninterest-bearing checking $ 12,422,583 $ 13,168,656 Interest-bearing checking 8,316,023 8,955,519 Savings 3,156,214 3,464,351 Money market 8,388,275 8,342,111 Time deposits 4,118,497 2,419,986 Total deposits $ 36,401,592 $ 36,350,623 At March 31, 2023 and December 31, 2022, we had $658.5 million and $464.9 million in certificates of deposits greater than $250,000, respectively. At March 31, 2023 and December 31, 2022, the Company held |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Plans | |
Retirement Plans | Note 11 — Retirement Plans The Company sponsors an employees’ savings plan under the provisions of the Internal Revenue Code Section 401(k). Electing employees are eligible to participate in the employees’ savings plan after attaining age . Plan participants elect to contribute portions of their annual base compensation as a before tax contribution. Employer contributions may be made from current or accumulated net profits. Participants may elect to contribute of annual base compensation as a before tax contribution. Employees participating in the plan received a of their salary. We expensed Employees can enter the savings plan on or after the first day of each month. The employee may enter into a salary deferral agreement at any time to select an alternative deferral amount or to elect not to defer in the plan. If the employee does not elect an investment allocation, the plan administrator will select a retirement-based portfolio according to the employee’s number of years until normal retirement age. The plan’s investment valuations are generally provided on a daily basis. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Common Share | |
Earnings Per Share | Note 12 — Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding during each period, excluding non-vested restricted shares. Our diluted earnings per share is based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted stock units. Stock options and unvested restricted stock units are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive. The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended March 31, (Dollars and shares in thousands, except for per share amounts) 2023 2022 Basic earnings per common share: Net income $ 139,926 $ 100,329 Weighted-average basic common shares 75,902 71,447 Basic earnings per common share $ 1.84 $ 1.40 Diluted earnings per common share: Net income $ 139,926 $ 100,329 Weighted-average basic common shares 75,902 71,447 Effect of dilutive securities 487 664 Weighted-average dilutive shares 76,389 72,111 Diluted earnings per common share $ 1.83 $ 1.39 The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive under the treasury stock method as follows: Three Months Ended March 31, 2023 2022 Number of shares 57,169 57,169 Range of exercise prices $ 87.30 to $ 91.35 $ 87.30 to $ 91.35 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Compensation | |
Share-Based Compensation | Note 13 — Share-Based Compensation Our 2004, 2012, 2019 and 2020 share-based compensation plans are long-term retention plans intended to attract, retain, and provide incentives for key employees and non-employee directors in the form of incentive and non-qualified stock options, restricted stock, and restricted stock units (“RSUs”). Our 2020 plan was adopted by our shareholders at our annual meeting on October 29, 2020. The Company also assumed the obligations of ACBI under various equity incentive plans pursuant to the acquisition of ACBI on March 1, 2022 and the obligations of CenterState under various equity incentive plans pursuant to the merger with CenterState on June 7, 2020. Stock Options With the exception of non-qualified stock options granted to directors under the 2004 and 2012 plans, which in some cases may be exercised at any time prior to expiration and in some other cases may be exercised at intervals less than a year following the grant date, incentive stock options granted under our 2004, 2012, 2019 and 2020 plans may not be exercised in whole or in part within a year following the date of the grant, as these incentive stock options become exercisable in 25% increments pro ratably over the four-year period following the grant date. The options are granted at an exercise price at least equal to the fair value of the common stock at the date of grant and expire from the date of grant. options were granted under the 2004, 2012 or 2019 plans after January 26, 2012, February 1, 2019, and October 29, 2020, respectively, and the plans are closed other than for any options still unexercised and outstanding. The 2020 plan is the only plan from which new share-based compensation grants may be issued. It is the Company’s policy to grant options out of the shares registered under the 2020 plan. Activity in the Company’s stock option plans is summarized in the following table. Weighted Weighted Average Aggregate Average Remaining Intrinsic Shares Price (Yrs.) (000's) Outstanding at January 1, 2023 161,832 $ 66.20 Exercised (19,011) 51.01 Expired (929) 33.09 Outstanding at March 31, 2023 141,892 68.45 3.03 $ 1,534 Exercisable at March 31, 2023 141,892 68.45 3.03 $ 1,534 The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options’ vesting periods. There have been stock options issued during the first three months of 2023. Because all outstanding stock options had vested as of December 31, 2022, there was no unrecognized compensation cost related to nonvested stock option grants under the plans or fair value of shares vested for the year ended March 31, 2023. The intrinsic value of stock option shares exercised for the three months ended March 31, 2023 was Restricted Stock From time-to-time, we grant shares of restricted stock to key employees. These awards help align the interests of these employees with the interests of our shareholders by providing economic value directly related to increases in the value of our stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. We recognize expenses equal to the total value of such awards, ratably over the vesting period of the stock grants. Restricted stock grants to employees generally vest ratably over a two All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non-vested shares. Prior to vesting of the shares, as long as employed by the Company, the employees will have the right to vote such shares and to receive dividends paid with respect to such shares. All restricted shares will fully vest in the event of change in control of the Company or upon the death of the recipient. Nonvested restricted stock for 2023 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2023 50,506 $ 89.12 Vested (18,380) 90.00 Forfeited (2,233) 90.00 Nonvested at March 31, 2023 29,893 $ 88.51 As of March 31, 2023, there was $1.8 million of total unrecognized compensation cost related to nonvested restricted stock granted under the plans. This cost is expected to be recognized over a weighted-average period of years as of March 31, 2023. The total fair value of shares vested during the three months ended March 31, 2023 was Restricted Stock Units (“RSU”) From time-to-time, we also grant performance RSUs and time-vested RSUs to key employees, and time-vested RSUs to non-employee directors. These awards help align the interests of these employees with the interests of our shareholders by providing economic value directly related to our performance. Some performance RSU grants contain a one two from the grant date). The performance-based awards for our long-term incentive plans are dependent on the achievement of tangible book value growth and return on average tangible common equity relative to the Company’s peer group during each performance period. Grants to non-employee directors typically vest within a 12-month period. We communicate threshold, target, and maximum performance RSU awards and performance targets to the applicable key employees at the beginning of a performance period. Due to the merger with CenterState on June 7, 2020, all legacy and assumed performance-based restricted stock units converted to a time-vesting requirement. With respect to some long-term incentive awards, dividend equivalents are accrued at the same rate as cash dividends paid for each share of the Company’s common stock during the performance or time-vested period, and subsequently paid when the shares are issued on the vesting or settlement date. The value of the RSUs awarded is established as the fair market value of the stock at the time of the grant. We recognize expense on a straight-line basis typically over the performance or time-vesting periods based upon the probable performance target, as applicable, that will be met. Outstanding RSUs for the three months ended March 31, 2023 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Outstanding at January 1, 2023 940,512 $ 73.82 Granted 328,343 76.05 Vested (177,708) 86.81 Forfeited (3,604) 75.92 Outstanding at March 31, 2023 1,087,543 $ 72.37 The nonvested shares of 1,087,543 at March 31, 2023 includes 89,682 shares that have fully vested but are subject to a two-year holding period, which commenced at the end of their respective vesting period. These vested shares will be released and issued into shares of common stock at the end of their respective two-year holding period, the last of which will end by March 31, 2025. As of March 31, 2023, there was $39.2 million of total unrecognized compensation cost related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted-average period of years as of March 31, 2023. The total fair value of RSUs vested and released during the three months ended March 31, 2023 was million. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | Note 14 — Commitments and Contingent Liabilities In the normal course of business, we make various commitments and incur certain contingent liabilities, which are not reflected in the accompanying financial statements. The commitments and contingent liabilities include guarantees, commitments to extend credit, and standby letters of credit. At March 31, 2023, commitments to extend credit and standby letters of credit totaled billion. million and recorded on the Balance Sheet. We have been named as defendant in various legal actions, arising from its normal business activities, in which damages in various amounts are claimed. We are also exposed to litigation risk related to the prior business activities of banks acquired through whole bank acquisitions. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value. | |
Fair Value | Note 15 — Fair Value GAAP defines fair value and establishes a framework for measuring and disclosing fair value. Fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale and trading securities, derivative contracts, mortgage loans held for sale, SBA servicing rights, and mortgage servicing rights (“MSRs”) are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, OREO, bank properties held for sale, and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. FASB ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1 Observable inputs such as quoted prices in active markets; Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following is a description of valuation methodologies used for assets recorded at fair value. Trading Securities The fair values of trading securities are determined as follows: (1) for those securities that have traded prior to the date of the Condensed Consolidated Balance Sheets but have not settled (date of sale) until after such date, the sales price is used as the fair value; and, (2) for those securities which have not traded as of the date of the Condensed Consolidated Balance Sheets, the fair value was determined by broker price indications of similar or same securities. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and The NASDAQ Stock Market. Level 2 securities include mortgage-backed securities and debentures issued by government agencies or sponsored entities, municipal bonds and corporate debt securities, or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of FHLB and FRB stock approximates fair value based on the redemption provisions. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at fair value with changes in fair value recognized in current period earnings. The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans held for sale are recurring Level 2. Loans We do not record loans at fair value on a recurring basis. However, from time to time, a loan may be individually evaluated for expected credit losses if it no longer shares similar risk characteristics with other pooled loans. Once a loan is identified as an individually evaluated loan, management measures expected credit losses using estimated fair value methodologies. The fair value of the individually evaluated loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those individually evaluated loans not requiring an ACL represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2023, approximately two thirds of the individually evaluated loans were evaluated based on the fair value of the collateral because such loans were considered collateral dependent. Individually evaluated loans, where an allowance is established based on the fair value of collateral, requires classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, we consider the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we consider the individually evaluated loan as nonrecurring Level 3. Other Real Estate Owned (“OREO”) OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is typically reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, and adjusted for estimated selling costs (Level 2). However, OREO is considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the ACL. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of OREO Expense and Loan Related Expense in the Condensed Consolidated Statements of Net Income. Bank Property Held for Sale Bank property held for sale consists of locations that management has identified as no longer needed and reclassified from bank properties. These properties are typically reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, and adjusted for estimated selling costs (Level 2). However, bank property held for sale is considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, restrictions and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. At the time a property is identified as held for sale, any excess of the book balance over the fair value of the real estate is treated as a charge against earnings. Gains or losses on sale and generally any subsequent write-downs to the value are recorded as a component in Other Expense in the Condensed Consolidated Statements of Net Income. Derivative Financial Instruments Fair value is estimated using pricing models of derivatives with similar characteristics or discounted cash flow models where future floating cash flows are projected and discounted back; and accordingly, these derivatives are classified within Level 2 of the fair value hierarchy (See Note 17 — Derivative Financial Instruments for additional information). Mortgage Servicing Rights (“MSRs”) and SBA Servicing Asset The estimated fair value of MSRs and SBA servicing asset is obtained through a third-party vendor analysis of future cash flows. In early 2022 and in connection with the SBA servicing asset acquired through the Atlantic Capital acquisition, the Company began using a third-party vendor analysis of future cash flows to determine the fair value of the SBA servicing asset. Previously, the SBA servicing asset was recorded at amortized cost. The valuations for the servicing assets use assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, as well as the market’s perception of future interest rate movements. MSRs and SBA servicing asset are classified as Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis: Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2023: Assets Derivative financial instruments $ 159,287 $ — $ 159,287 $ — Loans held for sale 27,289 — 27,289 — Trading securities 16,039 — 16,039 — Securities available for sale: U.S. Treasuries 268,096 — 268,096 — U.S. Government agencies 220,259 — 220,259 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,673,162 — 1,673,162 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 591,412 — 591,412 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 987,437 — 987,437 — State and municipal obligations 966,957 — 966,957 — Small Business Administration loan-backed securities 425,492 — 425,492 — Corporate securities 27,184 — 27,184 — Total securities available for sale 5,159,999 — 5,159,999 — Mortgage servicing rights 85,406 — — 85,406 SBA servicing asset 6,521 — — 6,521 $ 5,454,541 $ — $ 5,362,614 $ 91,927 Liabilities Derivative financial instruments $ 806,584 $ — $ 806,584 $ — December 31, 2022: Assets Derivative financial instruments $ 211,016 $ — $ 211,016 $ — Loans held for sale 28,968 — 28,968 — Trading securities 31,263 — 31,263 — Securities available for sale: U.S. Treasuries 265,638 — 265,638 — U.S. Government agencies 219,088 — 219,088 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,698,353 — 1,698,353 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 601,045 — 601,045 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,000,398 — 1,000,398 — State and municipal obligations 1,064,852 — 1,064,852 — Small Business Administration loan-backed securities 444,810 — 444,810 — Corporate securities 32,638 — 32,638 — Total securities available for sale 5,326,822 — 5,326,822 — Mortgage servicing rights 86,610 — — 86,610 SBA servicing asset 6,068 — — 6,068 $ 5,690,747 $ — $ 5,598,069 $ 92,678 Liabilities Derivative financial instruments $ 1,034,143 $ — $ 1,034,143 $ — Changes in Level 1, 2 and 3 Fair Value Measurements When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses below include changes in fair value due in part to observable factors that are part of the valuation methodology. There were no changes in hierarchy classifications of Level 3 assets or liabilities for the three months ended March 31, 2023. A reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis for the three months ended March 31, 2023 is as follows: (Dollars in thousands) MSRs Fair value, January 1, 2023 $ 86,610 Servicing assets that resulted from transfers of financial assets 1,494 Changes in fair value due to valuation inputs or assumptions (1,289) Changes in fair value due to decay (1,409) Fair value, March 31, 2023 $ 85,406 In 2022, the Company elected to prospectively apply fair value accounting to the Company’s SBA servicing asset, which is considered a Level 3 asset. A reconciliation of the beginning and ending balances of the SBA servicing asset recorded at fair value on a recurring basis for the period ending March 31, 2023 is as follows: (Dollars in thousands) SBA Servicing Asset Fair value, January 1, 2023 $ 6,068 Servicing assets that resulted from transfers of financial assets 334 Changes in fair value due to decay (236) Changes in fair value due to valuation inputs or assumptions 355 Fair value, March 31, 2023 $ 6,521 There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at March 31, 2023. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis: Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2023: OREO $ 3,473 $ — $ — $ 3,473 Bank properties held for sale 16,724 — — 16,724 Individually evaluated loans 28,650 — — 28,650 December 31, 2022: OREO $ 1,023 $ — $ — $ 1,023 Bank properties held for sale 17,754 — — 17,754 Individually evaluated loans 20,802 — — 20,802 Quantitative Information about Level 3 Fair Value Measurement Weighted Average March 31, December 31, Valuation Technique Unobservable Input 2023 2022 Nonrecurring measurements: Individually evaluated loans Discounted appraisals and discounted cash flows Collateral discounts 24 % 31 % OREO and Bank properties held for sale Discounted appraisals Collateral discounts and estimated costs to sell 15 % 16 % Fair Value of Financial Instruments We used the following methods and assumptions in estimating our fair value disclosures for financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those models are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The use of different methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2023 and December 31, 2022. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents Trading Securities The fair values of trading securities are determined as follows: (1) for those securities that have traded prior to the date of the Consolidated Balance Sheets but have not settled (date of sale) until after such date, the sales price is used as the fair value; and, (2) for those securities which have not traded as of the date of the consolidated balance sheet, the fair value was determined by broker price indications of similar or same securities. Investment Securities — Securities available for sale are valued at quoted market prices or dealer quotes. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of FHLB and FRB stock approximates fair value based on the redemption provisions. The carrying value of our investment in unconsolidated subsidiaries approximates fair value. See Note 5 — Investment Securities for additional information, as well as page 33 regarding fair value. Loans held for sale Loans — The fair value of loans is based on an exit price. To estimate an exit price, all loans (fixed and variable) are being valued with a discounted cash flow analyses for loans that includes our estimate of future credit losses expected to be incurred over the life of the loans. Fair values for certain mortgage loans (e.g., one-to-four family residential) and other consumer loans are estimated using discounted cash flow analyses based on our current rates offered for new loans of the same type, structure and credit quality. Fair values for other loans (e.g., commercial real estate and investment property mortgage loans, commercial and industrial loans) are estimated using discounted cash flow analyses-using interest rates we currently offer for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using a discounted cash flow analysis. Deposit Liabilities — The fair values disclosed for demand deposits (e.g., interest and non-interest bearing checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts, and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Other Borrowings Accrued Interest Derivative Financial Instruments Commitments to Extend Credit, Standby Letters of Credit and Financial Guarantees — The fair values of commitments to extend credit are estimated taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of guarantees and letters of credit are based on fees currently charged for similar agreements or on the estimated costs to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair value, and related carrying amount, of our financial instruments are as follows: Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 March 31, 2023 Financial assets: Cash and cash equivalents $ 1,996,662 $ 1,996,662 $ 1,996,662 $ — $ — Trading securities 16,039 16,039 — 16,039 — Investment securities 8,014,663 7,567,328 179,717 7,387,611 — Loans held for sale 27,289 27,289 — 27,289 — Loans, net of allowance for credit losses 30,325,497 29,646,800 — — 29,646,800 Accrued interest receivable 138,515 138,515 — 26,888 111,627 Mortgage servicing rights 85,406 85,406 — — 85,406 SBA servicing asset 6,521 — — — 6,521 Interest rate swap - non-designated hedge 157,014 157,014 — 157,014 — Other derivative financial instruments (mortgage banking related) 2,273 2,273 — 2,273 — Financial liabilities: Deposits 36,401,592 36,333,275 — 36,333,275 — Federal funds purchased and securities sold under agreements to repurchase 544,108 556,417 — 556,417 — Corporate and subordinated debentures 392,182 380,925 — 380,925 — Other borrowings 900,000 900,000 — 900,000 — Accrued interest payable 20,411 20,411 — 20,411 — Interest rate swap - non-designated hedge 806,584 806,584 — 806,584 — Other derivative financial instruments (mortgage banking related) — — — — — Off balance sheet financial instruments: Commitments to extend credit — (255,022) — (255,022) — December 31, 2022 Financial assets: Cash and cash equivalents $ 1,312,563 $ 1,312,563 $ 1,312,563 $ — $ — Trading securities 31,263 31,263 — 31,263 — Investment securities 8,189,780 7,756,707 179,717 7,576,990 — Loans held for sale 28,968 28,968 — 28,968 — Loans, net of allowance for credit losses 29,821,418 29,329,499 — — 29,329,499 Accrued interest receivable 134,594 134,594 — 28,449 106,145 Mortgage servicing rights 86,610 86,610 — — 86,610 SBA servicing asset 6,068 — — — 6,068 Interest rate swap - non-designated hedge 210,216 210,216 — 210,216 — Other derivative financial instruments (mortgage banking related) 800 800 — 800 — Financial liabilities: Deposits 36,350,623 36,264,401 — 36,264,401 — Federal funds purchased and securities sold under agreements to repurchase 556,417 556,417 — 556,417 — Corporate and subordinated debentures 392,275 377,360 — 377,360 — Accrued interest payable 6,218 6,218 — 3,345 — Interest rate swap - non-designated hedge 1,033,980 1,033,980 — 1,033,980 — Other derivative financial instruments (mortgage banking related) 163 163 — 163 — Off balance sheet financial instruments: Commitments to extend credit — (184,801) — (184,801) — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 16 — Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Unrealized Gains and Benefit (Losses) on Securities (Dollars in thousands) Plans Available for Sale Total Three Months Ended March 31, 2023 Balance at December 31, 2022 $ (673) $ (676,415) $ (677,088) Other comprehensive income before reclassifications — 63,271 63,271 Amounts reclassified from accumulated other comprehensive loss — 33 33 Net comprehensive income — 63,304 63,304 Balance at March 31, 2023 $ (673) $ (613,111) $ (613,784) Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 57 $ (21,203) $ (21,146) Other comprehensive loss before reclassifications — (272,810) (272,810) Net comprehensive loss — (272,810) (272,810) Balance at March 31, 2022 $ 57 $ (294,013) $ (293,956) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) For the Three Months Ended March 31, Accumulated Other Comprehensive Income (Loss) Component 2023 2022 Income Statement Line Item Affected Gains on sales of available for sale securities: $ 45 $ — Securities gains, net (12) — Provision for income taxes 33 — Net income Total reclassifications for the period $ 33 $ — |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 17 — Derivative Financial Instruments The Company uses certain derivative instruments to meet the needs of customers as well as to manage the interest rate risk associated with certain transactions. The following table summarizes the derivative financial instruments used by the Company: March 31, 2023 December 31, 2022 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets and Other Liabilities $ 12,186 $ 206 $ — $ 12,289 $ 414 $ — Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities 10,701,004 28,580 805,749 10,480,171 8,539 1,033,980 Matched interest rate swaps with counterparty Other Assets and Other Liabilities 10,606,749 128,227 835 10,400,733 201,263 — Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets and Other Liabilities 67,500 1,158 — 35,000 — 163 Contracts used to hedge mortgage pipeline Other Assets 100,500 1,115 — 51,000 800 — Total derivatives $ 21,487,939 $ 159,286 $ 806,584 $ 20,979,193 $ 211,016 $ 1,034,143 Cash Flow Hedge of Interest Rate Risk The Company is exposed to interest rate risk in the course of its business operations and manages a portion of this risk through the use of derivative financial instruments, in the form of interest rate swaps. We account for interest rate swaps that are classified as cash flow hedges on the balance sheet at fair value. We had no cash flow hedges as of March 31, 2023 and December 31, 2022. For more information regarding the fair value of our derivative financial instruments, see Note 15 — Fair Value to these financial statements. For derivatives designated as hedging exposure to variable cash flows of a forecasted transaction (cash flow hedge), the derivative’s entire gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedged instrument and related swap are terminated before maturity. For derivatives that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately. Historically, for designated hedging relationships, we have had a third-party perform retrospective and prospective effectiveness testing on a quarterly basis using quantitative methods to determine if the hedge is still highly effective. Hedge accounting ceases on transactions that are no longer deemed highly effective, or for which the derivative has been terminated or de-designated. The Company did not maintain any cash flow hedges on the balance sheet throughout the three months ended March 31, 2023 and year ended December 31, 2022 (See Note 16—Accumulated Other Comprehensive Income (Loss) for activity in accumulated comprehensive income (loss) and the amounts reclassified into earnings). Credit risk related to the derivative arises when amounts receivable from the counterparty (derivatives dealer) exceed those payable. We control the risk of loss by only transacting with derivatives dealers that are national market makers whose credit ratings are strong. Each party to the interest rate swap is required to provide collateral in the form of cash or securities to the counterparty when the counterparty’s exposure to a mark-to-market replacement value exceeds certain negotiated limits. These limits are typically based on current credit ratings and vary with ratings changes. With the Company not maintaining any cash flow hedges at March 31, 2023 and December 31, 2022, there was collateral pledged. Balance Sheet Fair Value Hedge As of March 31, 2023 and December 31, 2022, the Company maintained loan swaps, with an aggregate notional amount of $12.2 million and $12.3 million, respectively, accounted for as fair value hedges. This derivative protects us from interest rate risk caused by changes in the LIBOR curve in relation to a certain designated fixed rate loan. The derivative converts the fixed rate loan to a floating rate. Settlement occurs in any given period where there is a difference in the stated fixed rate and variable rate and the difference is recorded in net interest income . The fair value of this hedge is recorded in either other assets or in other liabilities depending on the position of the hedge with the offset recorded in loans. Non-designated Hedges of Interest Rate Risk Customer Swap The Company maintains interest rate swap contracts with customers that are classified as non-designated hedges and are not speculative in nature. These agreements are designed to convert customer’s variable rate loans with the Company to fixed rate. These interest rate swaps are executed with loan customers to facilitate a respective risk management strategy and allow the customer to pay a fixed rate of interest to the Company. These interest rate swaps are simultaneously hedged by executing offsetting interest rate swaps with unrelated market counterparties to minimize the net risk exposure to the Company resulting from the transactions and allow the Company to receive a variable rate of interest. The interest rate swaps pay and receive interest based on a floating rate based on one month LIBOR plus credit spread, with payments being calculated on the notional amount. The Company is in the process of implementing a plan to transition these interest rate swap contracts to a reference rate other than LIBOR. For discussion related to reference rate reform, please refer to Issued But Not Yet Adopted Accounting Standards within Note 2—Summary of Significant Accounting Policies. The interest rate swaps are settled monthly with varying maturities. The variation margin settlement payment and the related derivative instruments fair value are considered a single unit of account for accounting and financial reporting purposes. Depending on the net position of the swaps with LCH and CME, the fair value, net of the variation margin, is reported in Derivative Assets or Derivative Liabilities on the Condensed Consolidated Balance Sheets. In addition, the expense or income attributable to the variation margin for the centrally cleared swaps with LCH and CME is reported in Noninterest Income, specifically within Correspondent and Capital Markets Income. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of March 31, 2023 and December 31, 2022, the interest rate swaps had an aggregate notional amount of approximately billion, respectively. At March 31, 2023, the fair value of the interest rate swap derivatives is recorded in other assets at billion. The fair value of derivative assets at December 31, 2022 was reduced by million in variation margin payments applicable to swaps centrally cleared through LCH and CME. All changes in fair value are recorded through earnings within Correspondent and Capital Markets Income, a component of Noninterest Income on the Condensed Consolidated Statements of Net Income. recorded on these derivatives for the year ended March 31, 2023. There was a net gain of recorded on these derivatives for the quarter ended March 31, 2022. As of March 31, 2023, we provided million of cash collateral on the customer swaps, which is included in Cash and Cash Equivalents on the Condensed Consolidated Balance Sheets as Deposits in Other Financial Institutions (Restricted Cash). We also provided million in investment securities at market value as collateral on the customer swaps which is included in Investment Securities – available for sale on the Condensed Consolidated Balance Sheets. Counterparties provided Foreign Exchange The Company may enter into foreign exchange contracts with customers to accommodate their need to convert certain foreign currencies into U.S. Dollars. To offset the foreign exchange risk, the Company may enter into substantially identical agreements with an unrelated market counterparty to hedge these foreign exchange contracts. At March 31, 2023 and December 31, 2022, there were no outstanding contracts or agreements related to foreign currency. If there were foreign currency contracts outstanding at March 31, 2023, the fair value of these contracts would be included in Other Assets and Other Liabilities in the accompanying Condensed Consolidated Balance Sheets. All changes in fair value are recorded as other noninterest income. There was Mortgage Banking The Company also has derivatives contracts that are not classified as accounting hedges to mitigate risks related to the Company’s mortgage banking activities. These instruments may include financial forwards, futures contracts, and options written and purchased, which are used to hedge MSRs; while forward sales commitments are typically used to hedge the mortgage pipeline. Such instruments derive their cash flows, and therefore their values, by reference to an underlying instrument, index or referenced interest rate. The Company does not elect hedge accounting treatment for any of these derivative instruments and as a result, changes in fair value of the instruments (both gains and losses) are recorded in the Company’s Condensed Consolidated Statements of Net Income in mortgage banking income. Mortgage Servicing Rights (“MSRs”) Derivatives contracts related to MSRs are used to help offset changes in fair value and are written in amounts referred to as notional amounts. Notional amounts provide a basis for calculating payments between counterparties but do not represent amounts to be exchanged between the parties and are not a measure of financial risk. On March 31, 2023, we had derivative financial instruments outstanding with notional amounts totaling 31, 2022. The estimated net fair value of the open contracts related to the MSRs was recorded as a gain of Mortgage Pipeline The following table presents our notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline related to the held for sale portfolio. (Dollars in thousands) March 31, 2023 December 31, 2022 Mortgage loan pipeline $ 107,831 $ 40,850 Expected closures 90,737 37,210 Fair value of mortgage loan pipeline commitments 1,848 524 Forward sales commitments 100,500 51,000 Fair value of forward commitments (734) 276 |
Capital Ratios
Capital Ratios | 3 Months Ended |
Mar. 31, 2023 | |
Capital Ratios | |
Capital Ratios | Note 18 — Capital Ratios The Company is subject to regulations with respect to certain risk-based capital ratios. These risk-based capital ratios measure the relationship of capital to a combination of balance sheet and off-balance sheet risks. The values of both balance sheet and off-balance sheet items are adjusted based on the rules to reflect categorical credit risk. In addition to the risk-based capital ratios, the regulatory agencies have also established a leverage ratio for assessing capital adequacy. The leverage ratio is equal to Tier 1 capital divided by total consolidated on-balance sheet assets (minus amounts deducted from Tier 1 capital). The leverage ratio does not involve assigning risk weights to assets. Under current regulations, the Company and the Bank are subject to a minimum ratio of common equity Tier 1 capital (“CET1”) to risk-weighted assets of 4.5% and a minimum required ratio of Tier 1 capital to risk-weighted assets of 6% . The minimum required leverage ratio is . The minimum required total capital to risk-weighted assets ratio is In order to avoid restrictions on capital distributions and discretionary bonus payments to executives, under the new rules a covered banking organization is also required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer is required to consist solely of CET1, and the buffer applies to all three risk-based measurements (CET1, Tier 1 capital and total capital). The capital conservation buffer became fully phased-in on January 1, 2019 and consists of an additional amount of Tier 1 common equity equal to The Bank is also subject to the regulatory framework for prompt corrective action, which identifies five capital categories for insured depository institutions (well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized) and is based on specified thresholds for each of the three risk-based regulatory capital ratios (CET1, Tier 1 capital and total capital) and for the leverage ratio. The following table presents actual and required capital ratios as of March 31, 2023 and December 31, 2022 for the Company and the Bank under the current capital rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations. Required to be Minimum Capital Considered Well Actual Required - Basel III Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio March 31, 2023: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,891,155 11.13 % $ 2,446,483 7.00 % $ 2,271,735 6.50 % SouthState Bank (the Bank) 4,165,577 11.93 % 2,443,212 7.00 % 2,268,697 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,891,155 11.13 % 2,970,730 8.50 % 2,795,981 8.00 % SouthState Bank (the Bank) 4,165,577 11.93 % 2,966,757 8.50 % 2,792,242 8.00 % Total capital to risk-weighted assets: Consolidated 4,647,783 13.30 % 3,669,725 10.50 % 3,494,976 10.00 % SouthState Bank (the Bank) 4,532,206 12.99 % 3,664,818 10.50 % 3,490,303 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,891,155 9.05 % 1,719,404 4.00 % 2,149,255 5.00 % SouthState Bank (the Bank) 4,165,577 9.70 % 1,718,633 4.00 % 2,148,291 5.00 % December 31, 2022: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,788,106 10.96 % $ 2,420,417 7.00 % $ 2,247,530 6.50 % SouthState Bank (the Bank) 4,074,045 11.80 % 2,417,133 7.00 % 2,244,481 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,788,106 10.96 % 2,939,077 8.50 % 2,766,190 8.00 % SouthState Bank (the Bank) 4,074,045 11.80 % 2,935,090 8.50 % 2,762,438 8.00 % Total capital to risk-weighted assets: Consolidated 4,485,397 12.97 % 3,630,625 10.50 % 3,457,738 10.00 % SouthState Bank (the Bank) 4,381,336 12.69 % 3,625,700 10.50 % 3,453,047 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,788,106 8.72 % 1,736,991 4.00 % 2,171,239 5.00 % SouthState Bank (the Bank) 4,074,045 9.39 % 1,736,330 4.00 % 2,170,412 5.00 % As of March 31, 2023 and December 31, 2022, the capital ratios of the Company and the Bank were well in excess of the minimum regulatory requirements and exceeded the thresholds for the “well capitalized” regulatory classification. In accordance with ASU No. 2016-13, applied the provisions of the standard using the modified retrospective method as a cumulative-effect adjustment to retained earnings. million. Instead of recognizing the effects from ASU 2016-13 at adoption, the standard included a transitional method option for recognizing the adoption date effects on the Company’s regulatory capital calculations over a three-year phase-in. In March 2020, in response to the COVID-19 pandemic, the regulatory agencies provided an additional transitional method option of a two-year deferral for the start of the three-year phase-in of the recognition of the adoption date effects of ASU 2016-13 along with an option to defer the current impact on regulatory capital calculations of ASU 2016-13 during the first two years (“5-year method”). Under this 5-year method, the Company would recognize an estimate of the previous incurred loss method for determining the allowance for credit losses in regulatory capital calculations and the difference from the CECL method would be deferred for two years. After two years, the effects from adoption date and the deferral difference from the first two years of applying CECL would be phased-in over three years using the straight-line method. The regulatory rules provided a one-time opportunity at the end of the first quarter of 2020 for covered banking organizations to choose its transition option for CECL. The Company chose the 5-year method and is deferring the recognition of the effects from adoption date and the CECL difference from the first two years of application. This amount was fixed as of December 31, 2021, and that amount began the three-year phase out in the first quarter of 2022 with being phased out in 2023. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 19 — Goodwill and Other Intangible Assets The carrying amount of goodwill was $1.9 billion at March 31, 2023 31, 2022. The Company last completed its annual valuation of the carrying value of its goodwill as of October 31, 2022. We determined that impairment charge was necessary for each period end. We will continue to monitor the impact of the market conditions on the Company’s The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets: March 31, December 31, (Dollars in thousands) 2023 2022 Gross carrying amount $ 275,321 $ 274,869 Accumulated amortization (165,718) (158,419) $ 109,603 $ 116,450 Amortization expense totaled $7.3 million for the quarter ended March 31, 2023, compared to $8.5 million for the quarter ended March 31, 2022. Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between two In early 2022 and in connection with the SBA servicing asset acquired through the Atlantic Capital acquisition, which was recorded at fair value on acquisition date, the Company elected to prospectively apply fair value accounting to the Company’s SBA servicing asset. The change in fair value of the SBA servicing asset is recorded in SBA Income, a component of Noninterest Income on the Consolidated Statements of Income, during each applicable reporting period. As a result of the change in accounting treatment, the Company will no longer amortize the SBA servicing asset and therefore excluded the SBA servicing asset from the future amortization expense table presented below. The fair value of the SBA servicing asset was $6.5 million and $6.1 million, respectively, at March 31, 2023 and December 31, 2022. (Dollars in thousands) Quarter ending: June 30, 2023 $ 7,028 September 30, 2023 6,616 December 31, 2023 6,615 March 31, 2024 6,003 June 30, 2024 5,739 Thereafter 71,082 $ 103,083 |
Mortgage Loan Servicing, Origin
Mortgage Loan Servicing, Origination, and Loans Held for Sale | 3 Months Ended |
Mar. 31, 2023 | |
Mortgage Loan Servicing, Origination, and Loans Held for Sale | |
Mortgage Loan Servicing, Origination, and Loans Held for Sale | Note 20 — Mortgage Loan Servicing, Origination, and Loans Held for Sale The portfolio of residential mortgages serviced for others, which is not included in the accompanying Condensed Consolidated Balance Sheets the portfolio of residential mortgages serviced for others, was $6.6 billion as of both March 31, 2023 and December 31, 2022. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amounts of contractually specified servicing fees we earned during the year ended March 31, 2023 and March 31, 2022 were million, respectively. Servicing fees are recorded in Mortgage Banking Income in our Condensed Consolidated Statements of Net Income. At March 31, 2023 and December 31, 2022, MSRs were $85.4 million and $86.6 million on our Condensed Consolidated Balance Sheets, respectively. MSRs are recorded at fair value with changes in fair value recorded as a component of Mortgage Banking Income in the Condensed Consolidated Statements of Net Income. The market value adjustments related to MSRs recorded in Mortgage Banking Income for the year ended March 31, 2023 and March 31, 2022 were losses of million, respectively. The Company has used various free standing derivative instruments to mitigate the income statement effect of changes in fair value resulting from changes in market value adjustments, in addition to changes in valuation inputs and assumptions related to MSRs. See Note 15 — Fair Value for the changes in fair value of MSRs. The following table presents the changes in the fair value of the MSR and offsetting hedge. Three Months Ended (Dollars in thousands) March 31, 2023 March 31, 2022 (Decrease) increase in fair value of MSRs $ (1,290) $ 12,827 Decay of MSRs (1,409) (2,230) Gain (loss) related to derivatives 145 (11,838) Net effect on Condensed Consolidated Statements of Net Income $ (2,554) $ (1,241) The fair value of MSRs is highly sensitive to changes in assumptions and is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and with the use of independent third-party appraisals. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of the MSR. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if applied at a different time. See Note 15 — Fair Value for additional information regarding fair value. The characteristics and sensitivity analysis of the MSRs are included in the following table. March 31, December 31, (Dollars in thousands) 2023 2022 Composition of residential loans serviced for others Fixed-rate mortgage loans 100.0 % 100.0 % Adjustable-rate mortgage loans — % — % Total 100.0 % 100.0 % Weighted average life 8.24 years 8.37 years Constant Prepayment rate (CPR) 6.6 % 6.4 % Weighted average discount rate 10.0 % 10.0 % Effect on fair value due to change in interest rates 25 basis point increase $ 1,012 $ 774 50 basis point increase 1,888 1,428 25 basis point decrease (1,146) (902) 50 basis point decrease (2,422) (1,938) The sensitivity calculations above are hypothetical and should not be considered predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. The effects of an adverse variation in a particular assumption on the fair value of the MSRs as disclosed in the table above is calculated without changing any other assumptions. In reality, changes in one factor may result in adjusting other factors, which may magnify or contract the effects of the change. Whole loan sales were $159.4 million for the year ended March 31, 2023, compared to $700.7 million for the year ended March 31, 2022. For March 31, 2023, Loans held for sale have historically been comprised of residential mortgage loans awaiting sale in the secondary market, which generally settle in 15 to 45 days . Loans held for sale were 31, 2022, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Short-Term Borrowings | |
Repurchase Agreements | Note 21 — Short-Term Borrowings Securities Sold Under Agreements to Repurchase (“Repurchase agreements”) Repurchase agreements represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. Repurchase agreements are subject to terms and conditions of the master repurchase agreements between the Company and the client and are accounted for as secured borrowings. Repurchase agreements are included in federal funds purchased and securities sold under agreements to repurchase on the condensed consolidated balance sheets. At March 31, 2023 and December 31, 2022, our repurchase agreements totaled million, respectively. All of our repurchase agreements were overnight or continuous (until-further-notice) agreements at March 31, 2023 and December 31, 2022. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a carrying value of 31, 2022, respectively. Declines in the value of the collateral would require us to increase the amounts of securities pledged. Federal Funds Purchased Federal funds purchased are generally overnight daily borrowings with no defined maturity date. At March 31, 2023 and December 31, 2022, our federal funds purchased totaled million, respectively. Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Borrowings The Company has from time-to-time entered into borrowing agreements with the FHLB and FRB. Borrowings under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, investment securities, and commercial real estate loans under a blanket-floating lien. As of March 31, 2023, the Company had $900.0 million in outstanding FHLB borrowings with a weighted average interest rate of 5.07% . As of December 31, 2022, there were no outstanding FHLB borrowings. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at March 31, 2023, were approximately million in collateral value. This allows the Company a total borrowing capacity at the FHLB of approximately billion. After accounting for letters of credit totaling March 31, 2023 outstanding borrowings with the FRB at March 31, 2023 or December 31, 2022. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2023 | |
Stock Repurchase Program | |
Stock Repurchase Program | Note 22 — Stock Repurchase Program On April 27, 2022, the Company’s Board of Directors approved a stock repurchase program (“2022 Stock Repurchase Program”) authorizing the Company to repurchase up to 3,750,000 of the Company’s common shares along with the remaining authorized shares of 370,021 from the Company’s 2021 stock repurchase program (“2021 Stock Repurchase Plan”) for a total authorization of 4,120,021 shares. The Company did t repurchase any shares through the 2022 Stock Repurchase Program during 2022 or during the first quarter of 2023. During the first quarter of 2022, before the approval of the 2022 Stock Repurchase Program, the Company repurchased a total of |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events | |
Subsequent Events | Note 23 — Subsequent Events On April 27, 2023, the Company announced the declaration of a quarterly cash dividend on its common stock at $0.50 per share. The dividend is payable on May 19, 2023 to shareholders of record as of May 12, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Loans | Loans Loans that management has originated and has the intent and ability to hold for the foreseeable future or until maturity or pay off generally are reported at their unpaid principal balances, less unearned income and net of any deferred loan fees and costs, including unamortized fair value discount or premium. Unearned income on installment loans is recognized as income over the terms of the loans by methods that generally approximate the interest method. Interest on other loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. If the loan is prepaid, the remaining unamortized fees and costs are charged or credited to interest income. Amortization ceases for non-accrual loans. We place non acquired loans and acquired loans on nonaccrual once reasonable doubt exists about the collectability of all principal and interest due. Generally, this occurs when principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection, and excludes factored receivables. For factored receivables, which are commercial trade credits rather than promissory notes, the Company’s practice, in most cases, is to charge-off unpaid recourse receivables when they become 90 days past due from the invoice due date and the non-recourse receivables when they become 120 days past due from the statement due date. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. A loan is evaluated individually for loss when it is on nonaccrual and has a net book balance over $1 million. Large pools of homogeneous loans are collectively evaluated for loss and reserved at the pool level. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as nonaccrual, provided that management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. |
Allowance for Credit Losses ("ACL") | Allowance for Credit Losses (“ACL”) – Investment Securities Management uses a systematic methodology to determine its ACL for investment securities held to maturity. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held to maturity portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the held to maturity investment portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. Management monitors the held to maturity portfolio to determine whether a valuation account should be recorded. As of March 31, 2023 and December 31, 2022, the Company had The Company follows its nonaccrual policy by reversing interest income in the income statement when the Company determines the interest for held to maturity securities is uncollectible. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the investment securities and does not record an allowance for credit losses on accrued interest receivable. As of March 31, 2023 and December 31, 2022, the accrued interest receivables for all investment securities recorded in Other Assets were Each quarter, management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the Provision for Credit Losses in the Condensed Consolidated Statements of Net Income. ACL – Loans and Certain Off-Balance-Sheet Credit Exposures The ACL for loans held for investment reflects management’s estimate of credit losses that will result from the inability of our borrowers to make required loan payments. The Company makes adjustments to the ACL by recording a provision for or recovery of credit losses through earnings. Loans charged off are recorded as reductions to the ACL on the balance sheet and subsequent recoveries Management uses systematic methodologies to determine its ACL for loans held for investment and certain off-balance-sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, management’s process for determining expected credit losses may result in a range of expected credit losses. The Company’s ACL recorded in the balance sheet reflects management’s best estimate within the range of expected credit losses. The Company recognizes in net income the amount needed to adjust the ACL for management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans. The ACL is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments, or pools, for analysis. The Discounted Cash Flow (“DCF”) method is used for each loan in a pool, and the results are aggregated at the pool level. A periodic tendency to default and absolute loss given default are applied to a projective model of the loan’s cash flow while considering prepayment and principal curtailment effects. The analysis produces expected cash flows for each instrument in the pool by pairing loan-level term information (e.g., maturity date, payment amount, interest rate, etc.) with top-down pool assumptions (e.g., default rates and prepayment speeds). The Company has identified the following portfolio segments: Owner-Occupied Commercial Real Estate, Non-Owner Occupied Commercial Real Estate, Multifamily, Municipal, Commercial and Industrial, Commercial Construction and Land Development, Residential Construction, Residential Senior Mortgage, Residential Junior Mortgage, Revolving Mortgage, and Consumer and Other. In determining the proper level of the ACL, management has determined that the loss experience of the Bank provides the best basis for its assessment of expected credit losses. The Company therefore used its own historical credit loss experience by each loan segment over an economic cycle, while excluding loss experience from certain acquired institutions (i.e., failed banks). For most of the segment models for collectively evaluated loans, the Company incorporated two or more macroeconomic drivers using a statistical regression modeling methodology. Management considers forward-looking information in estimating expected credit losses. The Company subscribes to a third-party service which provides their quarterly macroeconomic baseline scenario and alternative scenarios for the United States economy. The baseline, along with the evaluation of alternative scenarios, is used by management to determine the best estimate within the range of expected credit losses. Management has evaluated the appropriateness of the reasonable and supportable forecast scenarios and has made adjustments as needed. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term mean of historical factors within four quarters using a straight-line approach. The Company generally uses a four-quarter forecast and a four-quarter reversion period. Included in its systematic methodology to determine its ACL, management considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation (i.e., formulaic model results). Each period, the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) Lending Policy; 2) Economic conditions not captured in models; 3) Volume and Mix of Loan Portfolio; 4) Past Due Trends; 5) Concentration Risk; 6) External Factors; and 7) Model Limitations. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company’s threshold for individually evaluated loans includes all non-accrual loans with a net book balance in excess of million. Management will monitor the credit environment and make adjustments to this threshold in the future if warranted. Based on the threshold above, consumer financial assets will generally remain in pools unless they meet the dollar threshold. The expected credit losses on individually evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset. Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , prospectively that requires the elimination of TDR guidance. Management measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications. Longstanding TDR accounting rules were replaced as of January 1, 2023 with ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (See Note 3 Recent Accounting Pronouncements). In accordance with the adoption of ASU 2022-02, any loans modified to a borrower experiencing financial difficulty are reviewed by the Bank to determine if an interest rate reduction, a term extension, an other-than-insignificant payment delay, a principal forgiveness, or any combination of these has occurred. Effective January 1, 2023, the ACL includes expected losses from modifications of receivables to borrowers experiencing financial difficulty. Losses on modifications of loans over million to borrowers experiencing financial difficulty are estimated on an individual basis. Because the effect of the remainder of modifications made to borrowers experiencing financial difficulty is already incorporated into the measurement methodologies used to estimate the allowance, they are accounted for as pooled loans. The effects of reasonably expected TDRs are no longer considered in the measurement of expected credit losses. Prior to the adoption of ASU No. 2022-02, when determining the contractual term, the Company considered expected prepayments but was precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expected it would execute a TDR with a borrower. In the event of a reasonably expected TDR, the Company factored the reasonably-expected TDR into the expected credit losses estimate. For consumer loans, the point at which a TDR was reasonably expected was when the Company approved the borrower’s application for a modification (i.e., the borrower qualifies for the TDR) or when the Credit Administration department approved loan concessions on substandard loans. For commercial loans, the point at which a TDR was reasonably expected was when the Company approved the loan for modification or when the Credit Administration department approved loan concessions on substandard loans. The Company used a discounted cash flow methodology for a TDR to calculate the effect of the concession provided to the borrower within the ACL. For purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e., allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition day, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the unpaid principal balance and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the Provision for Credit Losses in the Condensed Consolidated Statements of Net Income. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable. As of March 31, 2023 and December 31, 2022, the accrued interest receivables for loans recorded in Other Assets were The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the expected credit loss are recorded as a liability on the balance sheet. Management has determined that a majority of the Company’s off-balance sheet credit exposures are not unconditionally cancellable. Management completes funding studies based on historical data to estimate the percentage of unfunded loan commitments that will ultimately be funded to calculate the reserve for unfunded commitments. Management applies this funding rate, along with the loss factor rate determined for each pooled loan segment, to unfunded loan commitments, excluding unconditionally cancellable exposures and letters of credit, to arrive at the reserve for unfunded loan commitments. As of March 31, 2023 and December 31, 2022, the liabilities recorded for expected credit losses on unfunded commitments were million, respectively. |
Reclassification and Correction | Reclassification and Correction Certain amounts previously reported have been reclassified to conform to the current quarter’s presentation. Such reclassifications had no effect on net income and shareholders’ equity. The table below discloses the net change (increase or (decrease)) included in all the Condensed Consolidated Statements of Net Income line items in this Form 10-Q, as a result of the change in accounting treatment. There was no impact to Net Income or Shareholders’ Equity as previously reported. (Dollars in thousands) Three Months Ended March 31, INCOME STATEMENT 2022 Interest income: Effect to interest income on federal funds sold and interest-earning deposits with banks $ 7 Net effect to interest income 7 Effect to interest expense on deposits (37) Net effect to interest expense (37) Net effect to net interest income $ 44 Noninterest Income: Effect to correspondent banking and capital market income $ (44) Net effect to noninterest income $ (44) Net effect to net income $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Net Changes Included in the Condensed Consolidated Statements of Income | (Dollars in thousands) Three Months Ended March 31, INCOME STATEMENT 2022 Interest income: Effect to interest income on federal funds sold and interest-earning deposits with banks $ 7 Net effect to interest income 7 Effect to interest expense on deposits (37) Net effect to interest expense (37) Net effect to net interest income $ 44 Noninterest Income: Effect to correspondent banking and capital market income $ (44) Net effect to noninterest income $ (44) Net effect to net income $ — |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) - Atlantic Capital | 3 Months Ended |
Mar. 31, 2023 | |
Mergers and Acquisitions | |
Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred | Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by Atlantic Capital Adjustments Adjustments the Company Assets Cash and cash equivalents $ 250,134 $ 24 (a) $ — $ 250,158 Investment securities 717,332 (13,622) (b) — 703,710 Loans, net of allowance and mark 2,394,256 (18,964) (c) (5,614) (c) 2,369,678 Premises and equipment 16,892 2,608 (d) — 19,500 Intangible assets 22,572 (1,781) (e) — 20,791 Bank owned life insurance 74,613 — — 74,613 Deferred tax asset 30,231 2,273 (f) (1,025) (f) 31,479 Other assets 45,274 (1,277) (g) 7,557 (g) 51,554 Total assets $ 3,551,304 $ (30,739) $ 918 $ 3,521,483 Liabilities Deposits: Noninterest-bearing $ 1,411,671 $ — $ — $ 1,411,671 Interest-bearing 1,616,970 — — 1,616,970 Total deposits 3,028,641 — — 3,028,641 Federal funds purchased and securities sold under agreements to repurchase 50,000 — — 50,000 Other borrowings 74,131 4,286 (h) — 78,417 Other liabilities 50,711 (2,075) (i) — 48,636 Total liabilities 3,203,483 2,211 — 3,205,694 Net identifiable assets acquired over (under) liabilities assumed 347,821 (32,950) 918 315,789 Goodwill — 342,939 (918) 342,021 Net assets acquired over liabilities assumed $ 347,821 $ 309,989 $ — $ 657,810 Consideration: SouthState Corporation common shares issued 7,330,803 Purchase price per share of the Company's common stock $ 90.00 Company common stock issued ($659,772) and cash exchanged for fractional shares ($19) $ 659,791 Stock option conversion 1,135 Restricted stock unit conversion 2,870 Restricted stock awards conversion (unvested awards) (5,986) Fair value of total consideration transferred $ 657,810 Explanation of fair value adjustments (a)— Represents an adjustment to record time deposits with financial institutions at fair value (premium). (b)— Represents the reversal of Atlantic Capital's existing fair value adjustments of $17.2 million and the adjustment to record securities at fair value (discount) totaling $30.9 million (includes reclassification of all securities held as HTM to AFS totaling $237.6 million). (c)— Represents approximately 1.40%, or $34.0 million, net credit discount of the loan portfolio and 2.24% total net discount, or $54.3 million, including non-credit discount, based on a third-party valuation. Also, includes a reversal of Atlantic Capital's ending ACL of (d)— Represents the preliminary fair value adjustments of $2.6 million on fixed assets and leased assets. (e)— Represents approximately $17.5 million, or 0.63%, of CDI amount and $3.2 million for SBA servicing asset based on a third-party valuation. Atlantic Capital’s pre-merger goodwill and servicing asset of $19.9 million and $2.6 million, respectively, were written-off. (f)— Represents deferred tax asset related to fair value adjustments with marginal tax rate of 23.9%, which includes an adjustment from Atlantic Capital’s effective tax rate to the Company’s effective tax rate. The difference in effective tax rates relates to state income taxes. (g)— Represents the fair value adjustment (decrease) for low-income housing investments of $1.1 million, write-off of prepaid assets of $233,000, adjustments to receivables of $154,000 and fair value adjustment for Small Business Investment Company (“SBIC”) investments of $7.4 million. (h)— Represents the reversal of the existing Atlantic Capital’s issuance costs on subordinated debt of $0.9 million and recording the fair value adjustment (premium) of $3.4 million, based on a third-party valuation. (i)— Represents the reversal of $2.8 million of unfunded commitment liability at purchase date and the fair value adjustment to increase lease liabilities associated with rental facilities totaling $1.4 million. Also includes the reversal of uncertain tax liability of $0.7 million. |
Schedule of proforma information | Pro Forma Three Months Ended (Dollars in thousands) March 31, 2022 Total revenues (net interest income plus noninterest income) $ 371,196 Net interest income $ 281,577 Net adjusted income available to the common shareholder $ 113,903 EPS — basic $ 1.49 EPS — diluted $ 1.48 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Securities | |
Schedule of amortized cost and fair value of investment securities held to maturity | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value March 31, 2023: U.S. Government agencies $ 197,264 $ — $ (28,175) $ 169,089 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,553,373 — (238,470) 1,314,903 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 468,794 — (63,317) 405,477 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 360,962 — (68,141) 292,821 Small Business Administration loan-backed securities 56,280 — (10,958) 45,322 $ 2,636,673 $ — $ (409,061) $ 2,227,612 December 31, 2022: U.S. Government agencies $ 197,262 $ — $ (29,787) $ 167,475 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,591,646 — (255,093) 1,336,553 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 474,660 — (69,664) 404,996 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 362,586 — (66,304) 296,282 Small Business Administration loan-backed securities 57,087 — (12,225) 44,862 $ 2,683,241 $ — $ (433,073) $ 2,250,168 |
Schedule of amortized cost and fair value of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value March 31, 2023: U.S. Treasuries $ 273,035 $ — $ (4,939) $ 268,096 U.S. Government agencies 246,001 — (25,742) 220,259 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,951,725 — (278,563) 1,673,162 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 689,575 — (98,163) 591,412 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,180,323 8 (192,894) 987,437 State and municipal obligations 1,138,809 4 (171,856) 966,957 Small Business Administration loan-backed securities 466,462 194 (41,164) 425,492 Corporate securities 30,571 — (3,387) 27,184 $ 5,976,501 $ 206 $ (816,708) $ 5,159,999 December 31, 2022: U.S. Treasuries $ 272,416 $ — $ (6,778) $ 265,638 U.S. Government agencies 245,972 — (26,884) 219,088 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,996,405 — (298,052) 1,698,353 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 708,337 — (107,292) 601,045 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,196,700 2,542 (198,844) 1,000,398 State and municipal obligations 1,269,525 1,210 (205,883) 1,064,852 Small Business Administration loan-backed securities 491,203 302 (46,695) 444,810 Corporate securities 35,583 — (2,945) 32,638 $ 6,216,141 $ 4,054 $ (893,373) $ 5,326,822 |
Schedule of amortized cost and carrying value of other investment securities | Carrying (Dollars in thousands) Value March 31, 2023: Federal Home Loan Bank stock $ 53,335 Federal Reserve Bank stock 150,261 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 10,832 $ 217,991 December 31, 2022: Federal Home Loan Bank stock $ 15,085 Federal Reserve Bank stock 150,261 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 10,808 $ 179,717 |
Schedule of amortized cost and fair value of debt and equity securities by contractual maturity | Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 254,326 $ 250,191 Due after one year through five years 101,073 94,058 309,053 295,225 Due after five years through ten years 382,261 337,412 1,148,155 1,001,653 Due after ten years 2,153,339 1,796,142 4,264,967 3,612,930 $ 2,636,673 $ 2,227,612 $ 5,976,501 $ 5,159,999 |
Schedule of securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less Than Twelve Months Twelve Months or More Gross Unrealized Fair Gross Unrealized Fair (Dollars in thousands) Losses Value Losses Value March 31, 2023: Securities Held to Maturity U.S. Government agencies $ — $ — $ 28,175 $ 169,089 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises — — 238,470 1,314,903 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 1,187 45,925 62,130 359,552 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 13,414 57,771 54,727 235,050 Small Business Administration loan-backed securities — — 10,958 45,322 $ 14,601 $ 103,696 $ 394,460 $ 2,123,916 Securities Available for Sale U.S. Treasuries $ — $ — $ 4,939 $ 268,096 U.S. Government agencies 1,065 53,935 24,677 166,324 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,027 32,334 277,536 1,640,828 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 2,650 73,464 95,513 517,948 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 10,606 107,009 182,288 874,332 State and municipal obligations 4,250 74,784 167,606 888,984 Small Business Administration loan-backed securities 428 80,092 40,736 278,346 Corporate securities 635 5,863 2,752 21,321 $ 20,661 $ 427,481 $ 796,047 $ 4,656,179 December 31, 2022: Securities Held to Maturity U.S. Government agencies $ 5,514 $ 78,833 $ 24,273 $ 88,642 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 65,181 513,086 189,912 823,467 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 30,284 277,868 39,380 127,128 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 14,318 82,895 51,986 213,387 Small Business Administration loan-backed securities — — 12,225 44,862 $ 115,297 $ 952,682 $ 317,776 $ 1,297,486 Securities Available for Sale U.S. Treasuries $ 6,778 $ 265,638 $ — $ — U.S. Government agencies 8,193 138,807 18,691 80,281 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 42,767 459,773 255,285 1,238,580 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 21,450 274,082 85,842 326,963 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 17,156 206,228 181,688 767,002 State and municipal obligations 97,084 616,631 108,799 391,848 Small Business Administration loan-backed securities 2,152 92,535 44,543 264,933 Corporate securities 2,209 28,374 736 4,264 $ 197,789 $ 2,082,068 $ 695,584 $ 3,073,871 |
Schedule of trading securities | March 31, December 31, (Dollars in thousands) 2023 2022 U.S. Government agencies $ 3,925 $ 11,190 Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises 3,439 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,304 4,589 State and municipal obligations 7,122 13,993 Other debt securities 249 1,491 $ 16,039 $ 31,263 |
Summary of net (losses) gains on trading securities | Three Months Ended March 31, (Dollars in thousands) 2023 2022 Net losses on sales transaction $ (139) $ (1,239) Net mark to mark losses (6) (1,976) Net losses on trading securities $ (145) $ (3,215) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Loans | |
Summary of loans | The following is a summary of total loans: March 31, December 31, (Dollars in thousands) 2023 2022 Loans: Construction and land development (1) $ 2,749,290 $ 2,860,360 Commercial non-owner occupied 8,236,216 8,072,959 Commercial owner occupied real estate 5,522,514 5,460,193 Consumer owner occupied (2) 5,528,546 5,162,042 Home equity loans 1,332,285 1,313,168 Commercial and industrial 5,321,306 5,313,483 Other income producing property 721,291 696,242 Consumer 1,277,549 1,278,426 Other loans 7,145 20,989 Total loans 30,696,142 30,177,862 Less allowance for credit losses (370,645) (356,444) Loans, net $ 30,325,497 $ 29,821,418 (1) Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans. (2) Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as loans collateralized by 1-4 family owner occupied property with a business intent. |
Schedule of purchased loans through acquisition | (Dollars in thousands) March 1, 2022 Book value of acquired loans at acquisition $ 137,874 Allowance for credit losses at acquisition (13,758) Non-credit discount at acquisition (5,943) Carrying value or book value of acquired loans at acquisition $ 118,173 |
Schedule of credit risk profile by risk grade of loans | Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Construction and land development Risk rating: Pass $ 65,979 $ 898,029 $ 602,843 $ 109,487 $ 34,046 $ 33,860 $ 75,139 $ 1,819,383 Special mention — 2,022 1,193 264 20,255 7,671 — 31,405 Substandard 1,518 139 164 9 1,334 1,590 — 4,754 Doubtful — — — — — 6 — 6 Total Construction and land development $ 67,497 $ 900,190 $ 604,200 $ 109,760 $ 55,635 $ 43,127 $ 75,139 $ 1,855,548 Construction and land development Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial non-owner occupied Risk rating: Pass $ 144,211 $ 2,339,057 $ 1,964,957 $ 799,333 $ 892,806 $ 1,834,435 $ 89,240 $ 8,064,039 Special mention 95 9,442 708 12,167 5,423 60,130 — 87,965 Substandard 2,875 5,697 38,180 1,405 10,164 25,637 253 84,211 Doubtful — — 1 — — — — 1 Total Commercial non-owner occupied $ 147,181 $ 2,354,196 $ 2,003,846 $ 812,905 $ 908,393 $ 1,920,202 $ 89,493 $ 8,236,216 Commercial non-owner occupied Current-period gross charge-offs $ — $ — $ 51 $ — $ — $ — $ — $ 51 Commercial Owner Occupied Risk rating: Pass $ 165,248 $ 1,052,756 $ 1,154,709 $ 712,735 $ 702,606 $ 1,437,016 $ 70,057 $ 5,295,127 Special mention 342 3,576 24,689 3,285 4,397 37,842 1,020 75,151 Substandard 1,916 14,645 34,913 19,882 12,394 68,401 80 152,231 Doubtful — — — 1 — 4 — 5 Total commercial owner occupied $ 167,506 $ 1,070,977 $ 1,214,311 $ 735,903 $ 719,397 $ 1,543,263 $ 71,157 $ 5,522,514 Commercial owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Risk rating: Pass $ 417,089 $ 1,349,157 $ 807,583 $ 478,312 $ 253,680 $ 514,686 $ 1,354,618 $ 5,175,125 Special mention 533 6,705 4,488 702 1,698 4,791 23,114 42,031 Substandard 2,464 4,025 27,306 5,574 6,359 13,109 45,274 104,111 Doubtful 1 2 17 1 — 16 2 39 Total commercial and industrial $ 420,087 $ 1,359,889 $ 839,394 $ 484,589 $ 261,737 $ 532,602 $ 1,423,008 $ 5,321,306 Commercial and industrial Current-period gross charge-offs $ 2 $ 1,097 $ 160 $ 14 $ 149 $ 280 $ 104 $ 1,806 Other income producing property Risk rating: Pass $ 14,839 $ 161,959 $ 107,741 $ 58,591 $ 45,660 $ 142,437 $ 49,887 $ 581,114 Special mention 80 603 859 1,007 337 3,387 2,076 8,349 Substandard — 842 900 294 236 7,081 614 9,967 Doubtful — 397 — — — 6 — 403 Total other income producing property $ 14,919 $ 163,801 $ 109,500 $ 59,892 $ 46,233 $ 152,911 $ 52,577 $ 599,833 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer owner occupied Risk rating: Pass $ 1,349 $ 4,740 $ 3,117 $ 1,720 $ 382 $ 467 $ 17,524 $ 29,299 Special mention — 528 19 132 281 — — 960 Substandard — 7 94 931 1,601 193 151 2,977 Doubtful — — — — — 1 — 1 Total Consumer owner occupied $ 1,349 $ 5,275 $ 3,230 $ 2,783 $ 2,264 $ 661 $ 17,675 $ 33,237 Consumer owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other loans Risk rating: Pass $ 7,145 $ — $ — $ — $ — $ — $ — $ 7,145 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 7,145 $ — $ — $ — $ — $ — $ — $ 7,145 Other loans Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Commercial Loans Risk rating: Pass $ 815,860 $ 5,805,698 $ 4,640,950 $ 2,160,178 $ 1,929,180 $ 3,962,901 $ 1,656,465 $ 20,971,232 Special mention 1,050 22,876 31,956 17,557 32,391 113,821 26,210 245,861 Substandard 8,773 25,355 101,557 28,095 32,088 116,011 46,372 358,251 Doubtful 1 399 18 2 — 33 2 455 Total Commercial Loans $ 825,684 $ 5,854,328 $ 4,774,481 $ 2,205,832 $ 1,993,659 $ 4,192,766 $ 1,729,049 $ 21,575,799 Total Commercial Loans Current-period gross charge-offs $ 2 $ 1,097 $ 211 $ 14 $ 149 $ 280 $ 104 $ 1,857 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Construction and land development Risk rating: Pass $ 875,751 $ 742,985 $ 134,996 $ 63,439 $ 14,521 $ 29,442 $ 65,656 $ 1,926,790 Special mention 1,643 988 268 76 7,219 2,068 — 12,262 Substandard 214 10,409 11 2,326 — 4,282 — 17,242 Doubtful — — — — — 6 — 6 Total Construction and land development $ 877,608 $ 754,382 $ 135,275 $ 65,841 $ 21,740 $ 35,798 $ 65,656 $ 1,956,300 Construction and land development Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial non-owner occupied Risk rating: Pass $ 2,245,943 $ 1,849,079 $ 816,791 $ 959,707 $ 506,350 $ 1,417,397 $ 108,759 $ 7,904,026 Special mention 7,579 4,225 936 11,036 24,067 32,110 5,000 84,953 Substandard 13,256 25,557 609 9,383 6,472 26,366 2,257 83,900 Doubtful — 1 — 79 — — — 80 Total Commercial non-owner occupied $ 2,266,778 $ 1,878,862 $ 818,336 $ 980,205 $ 536,889 $ 1,475,873 $ 116,016 $ 8,072,959 Commercial non-owner occupied Current-period gross charge-offs $ 8 $ — $ — $ — $ — $ 360 $ — $ 368 Commercial Owner Occupied Risk rating: Pass $ 1,046,562 $ 1,136,289 $ 725,040 $ 709,669 $ 446,497 $ 1,080,522 $ 75,506 $ 5,220,085 Special mention 3,620 25,263 3,383 7,934 7,160 34,724 1,294 83,378 Substandard 12,861 34,210 19,962 16,502 9,487 62,808 895 156,725 Doubtful — — 1 — — 4 — 5 Total commercial owner occupied $ 1,063,043 $ 1,195,762 $ 748,386 $ 734,105 $ 463,144 $ 1,178,058 $ 77,695 $ 5,460,193 Commercial owner occupied Current-period gross charge-offs — — — 1,143 — 833 — 1,976 Commercial and industrial Risk rating: Pass $ 1,566,203 $ 895,368 $ 506,655 $ 274,446 $ 212,522 $ 333,286 $ 1,386,678 $ 5,175,158 Special mention 5,885 3,782 3,401 1,859 3,378 1,316 24,347 43,968 Substandard 6,308 27,974 4,770 6,591 6,783 8,476 32,876 93,778 Doubtful — — — — 155 422 2 579 Total commercial and industrial $ 1,578,396 $ 927,124 $ 514,826 $ 282,896 $ 222,838 $ 343,500 $ 1,443,903 $ 5,313,483 Commercial and industrial Current-period gross charge-offs 4 2,825 198 630 2,214 2,589 1,742 10,202 Other income producing property Risk rating: Pass $ 149,793 $ 92,887 $ 60,473 $ 46,189 $ 47,155 $ 107,436 $ 46,179 $ 550,112 Special mention 952 957 1,257 378 190 3,652 2,328 9,714 Substandard 876 359 1,281 300 214 11,214 1,065 15,309 Doubtful 401 — — — — 136 — 537 Total other income producing property $ 152,022 $ 94,203 $ 63,011 $ 46,867 $ 47,559 $ 122,438 $ 49,572 $ 575,672 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ 46 $ 50 $ 96 Consumer owner occupied Risk rating: Pass $ 5,947 $ 3,124 $ 1,811 $ 418 $ 68 $ 332 $ 15,910 $ 27,610 Special mention 537 20 136 284 — — 66 1,043 Substandard 13 95 12 1,614 — 202 151 2,087 Doubtful — — — — 1 — — 1 Total Consumer owner occupied $ 6,497 $ 3,239 $ 1,959 $ 2,316 $ 69 $ 534 $ 16,127 $ 30,741 Consumer owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other loans Risk rating: Pass $ 20,989 $ — $ — $ — $ — $ — $ — $ 20,989 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 20,989 $ — $ — $ — $ — $ — $ — $ 20,989 Other loans Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Commercial Loans Risk rating: Pass $ 5,911,188 $ 4,719,732 $ 2,245,766 $ 2,053,868 $ 1,227,113 $ 2,968,415 $ 1,698,688 $ 20,824,770 Special mention 20,216 35,235 9,381 21,567 42,014 73,870 33,035 235,318 Substandard 33,528 98,604 26,645 36,716 22,956 113,348 37,244 369,041 Doubtful 401 1 1 79 156 568 2 1,208 Total Commercial Loans $ 5,965,333 $ 4,853,572 $ 2,281,793 $ 2,112,230 $ 1,292,239 $ 3,156,201 $ 1,768,969 $ 21,430,337 Current-period gross charge-offs $ 12 $ 2,825 $ 198 $ 1,773 $ 2,214 $ 3,828 $ 1,792 $ 12,642 For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots. The following table presents the credit risk profile by past due status of consumer loans by origination year as of March 31, 2023: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Consumer owner occupied Days past due: Current $ 240,632 $ 1,748,552 $ 1,587,281 $ 657,794 $ 309,618 $ 939,645 $ — $ 5,483,522 30 days past due — 438 451 323 672 2,242 — 4,126 60 days past due — 243 97 620 — 746 — 1,706 90 days past due — 676 268 853 683 3,475 — 5,955 Total Consumer owner occupied $ 240,632 $ 1,749,909 $ 1,588,097 $ 659,590 $ 310,973 $ 946,108 $ — $ 5,495,309 Consumer owner occupied Current-period gross charge-offs $ — $ — $ — $ — $ — $ 2 $ — $ 2 Home equity loans Days past due: Current $ 4,563 $ 7,084 $ 5,367 $ 3,733 $ 1,141 $ 17,773 $ 1,287,131 $ 1,326,792 30 days past due — 273 — — 89 1,003 2,424 3,789 60 days past due — 59 — — — 221 494 774 90 days past due — — 162 21 277 121 349 930 Total Home equity loans $ 4,563 $ 7,416 $ 5,529 $ 3,754 $ 1,507 $ 19,118 $ 1,290,398 $ 1,332,285 Home equity loans Current-period gross charge-offs $ — $ — $ — $ 39 $ — $ — $ — $ 39 Consumer Days past due: Current $ 104,807 $ 383,665 $ 187,023 $ 100,664 $ 78,646 $ 173,622 $ 224,373 $ 1,252,800 30 days past due — 252 449 37 107 1,213 11,052 13,110 60 days past due — 231 19 49 55 242 7,531 8,127 90 days past due — 456 76 39 34 1,400 1,507 3,512 Total consumer $ 104,807 $ 384,604 $ 187,567 $ 100,789 $ 78,842 $ 176,477 $ 244,463 $ 1,277,549 Consumer Current-period gross charge-offs $ 20 $ 295 $ 100 $ 79 $ 100 $ 244 $ 1,891 $ 2,729 Construction and land development Days past due: Current $ 20,979 $ 554,627 $ 251,650 $ 35,810 $ 11,006 $ 18,336 $ 615 $ 893,023 30 days past due — 325 — — — 279 — 604 60 days past due — — — 22 — 92 — 114 90 days past due — — — 1 — — — 1 Total Construction and land development $ 20,979 $ 554,952 $ 251,650 $ 35,833 $ 11,006 $ 18,707 $ 615 $ 893,742 Construction and land development Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other income producing property Days past due: Current $ 3,664 $ 45,269 $ 20,833 $ 4,812 $ 2,624 $ 43,104 $ 604 $ 120,910 30 days past due — — — — — 292 — 292 60 days past due — — — — — — — — 90 days past due — — — — — 256 — 256 Total other income producing property $ 3,664 $ 45,269 $ 20,833 $ 4,812 $ 2,624 $ 43,652 $ 604 $ 121,458 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Consumer Loans Days past due: Current $ 374,645 $ 2,739,197 $ 2,052,154 $ 802,813 $ 403,035 $ 1,192,480 $ 1,512,723 $ 9,077,047 30 days past due — 1,288 900 360 868 5,029 13,476 21,921 60 days past due — 533 116 691 55 1,301 8,025 10,721 90 days past due — 1,132 506 914 994 5,252 1,856 10,654 Total Consumer Loans $ 374,645 $ 2,742,150 $ 2,053,676 $ 804,778 $ 404,952 $ 1,204,062 $ 1,536,080 $ 9,120,343 Current-period gross charge-offs $ 20 $ 295 $ 100 $ 118 $ 100 $ 246 $ 1,891 $ 2,770 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of March 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Total Loans $ 1,200,329 $ 8,596,478 $ 6,828,157 $ 3,010,610 $ 2,398,611 $ 5,396,828 $ 3,265,129 $ 30,696,142 Current-period gross charge-offs $ 890 $ 524 $ 311 $ 132 $ 249 $ 526 $ 1,995 $ 4,627 The following table presents the credit risk profile by past due status of consumer loans by origination year as of December 31, 2022: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Consumer owner occupied Days past due: Current $ 1,695,454 $ 1,467,080 $ 657,005 $ 315,458 $ 187,580 $ 792,572 $ — $ 5,115,149 30 days past due 1,316 1,254 1,681 664 272 2,028 — 7,215 60 days past due 255 337 579 — 242 1,650 — 3,063 90 days past due — 944 776 454 664 3,036 — 5,874 Total Consumer owner occupied $ 1,697,025 $ 1,469,615 $ 660,041 $ 316,576 $ 188,758 $ 799,286 $ — $ 5,131,301 Consumer owner occupied Current-period gross charge-offs $ 25 $ — $ — $ 6 $ 23 $ 66 $ — $ 120 Home equity loans Days past due: Current $ 5,921 $ 5,231 $ 3,282 $ 1,560 $ 1,955 $ 17,941 $ 1,272,848 $ 1,308,738 30 days past due — — 155 77 418 422 1,586 2,658 60 days past due — — 19 36 70 26 540 691 90 days past due — — 60 87 — 611 323 1,081 Total Home equity loans $ 5,921 $ 5,231 $ 3,516 $ 1,760 $ 2,443 $ 19,000 $ 1,275,297 $ 1,313,168 Home equity loans Current-period gross charge-offs $ — $ — $ — $ 19 $ — $ 280 $ 146 $ 445 Consumer Days past due: Current $ 407,825 $ 206,003 $ 111,210 $ 86,008 $ 44,303 $ 141,053 $ 248,314 $ 1,244,716 30 days past due 718 194 78 174 63 1,255 17,471 19,953 60 days past due 55 103 107 36 144 557 9,836 10,838 90 days past due 126 60 58 66 165 1,660 784 2,919 Total consumer $ 408,724 $ 206,360 $ 111,453 $ 86,284 $ 44,675 $ 144,525 $ 276,405 $ 1,278,426 Consumer Current-period gross charge-offs $ 254 $ 653 $ 337 $ 265 $ 62 $ 664 $ 7,979 $ 10,214 Construction and land development Days past due: Current $ 466,475 $ 351,485 $ 50,472 $ 14,053 $ 7,006 $ 13,588 $ 379 $ 903,458 30 days past due 2 — — 57 23 43 — 125 60 days past due — — — — — — — — 90 days past due — — 436 — — 41 — 477 Total Construction and land development $ 466,477 $ 351,485 $ 50,908 $ 14,110 $ 7,029 $ 13,672 $ 379 $ 904,060 Construction and land development Current-period gross charge-offs $ — $ — $ 21 $ — $ — $ 4 $ — $ 25 Other income producing property Days past due: Current $ 45,717 $ 21,421 $ 4,937 $ 2,663 $ 4,322 $ 40,680 $ 624 $ 120,364 30 days past due — — — — — 62 — 62 60 days past due — — — — — 23 — 23 90 days past due — — — — — 121 — 121 Total other income producing property $ 45,717 $ 21,421 $ 4,937 $ 2,663 $ 4,322 $ 40,886 $ 624 $ 120,570 Other income producing property Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Consumer Loans Days past due: Current $ 2,621,392 $ 2,051,220 $ 826,906 $ 419,742 $ 245,166 $ 1,005,834 $ 1,522,165 $ 8,692,425 30 days past due 2,036 1,448 1,914 972 776 3,810 19,057 30,013 60 days past due 310 440 705 72 456 2,256 10,376 14,615 90 days past due 126 1,004 1,330 607 829 5,469 1,107 10,472 Total Consumer Loans $ 2,623,864 $ 2,054,112 $ 830,855 $ 421,393 $ 247,227 $ 1,017,369 $ 1,552,705 $ 8,747,525 Current-period gross charge-offs $ 279 $ 653 $ 358 $ 290 $ 85 $ 1,014 $ 8,125 $ 10,804 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total Total Loans $ 8,589,197 $ 6,907,684 $ 3,112,648 $ 2,533,623 $ 1,539,466 $ 4,173,570 $ 3,321,674 $ 30,177,862 Current-period gross charge-offs $ 291 $ 3,478 $ 556 $ 2,063 $ 2,299 $ 4,842 $ 9,917 $ 23,446 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | The following table presents an aging analysis of past due accruing loans, segregated by class. 30 - 59 Days 60 - 89 Days 90+ Days Total Non- Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Accruing Loans March 31, 2023 Construction and land development $ 980 $ 4,050 $ — $ 5,030 $ 2,743,954 $ 306 $ 2,749,290 Commercial non-owner occupied 4,410 1,778 — 6,188 8,208,270 21,758 8,236,216 Commercial owner occupied 3,841 4,552 1,665 10,058 5,476,893 35,563 5,522,514 Consumer owner occupied 2,521 1,344 — 3,865 5,505,300 19,381 5,528,546 Home equity loans 2,811 673 — 3,484 1,323,065 5,736 1,332,285 Commercial and industrial 21,931 9,618 1,837 33,386 5,257,967 29,953 5,321,306 Other income producing property 2,224 156 147 2,527 715,773 2,991 721,291 Consumer 13,015 8,002 1 21,018 1,251,249 5,282 1,277,549 Other loans — — — — 7,145 — 7,145 $ 51,733 $ 30,173 $ 3,650 $ 85,556 $ 30,489,616 $ 120,970 $ 30,696,142 December 31, 2022 Construction and land development $ 2,146 $ 3,653 $ — $ 5,799 $ 2,853,734 $ 827 $ 2,860,360 Commercial non-owner occupied 1,158 978 77 2,213 8,050,321 20,425 8,072,959 Commercial owner occupied 10,748 2,059 2,231 15,038 5,410,066 35,089 5,460,193 Consumer owner occupied 6,001 744 40 6,785 5,137,950 17,307 5,162,042 Home equity loans 2,527 361 — 2,888 1,303,964 6,316 1,313,168 Commercial and industrial 24,500 11,677 1,704 37,881 5,258,473 17,129 5,313,483 Other income producing property 1,623 1,480 298 3,401 690,107 2,734 696,242 Consumer 19,713 10,655 — 30,368 1,243,660 4,398 1,278,426 Other loans — — — — 20,989 — 20,989 $ 68,416 $ 31,607 $ 4,350 $ 104,373 $ 29,969,264 $ 104,225 $ 30,177,862 |
Summary of information pertaining to nonaccrual loans by class | March 31, Greater than Non-accrual December 31, (Dollars in thousands) 2023 90 Days Accruing (1) with no allowance (1) 2022 Construction and land development $ 306 $ — $ 8 $ 827 Commercial non-owner occupied 21,758 — 11,338 20,425 Commercial owner occupied real estate 35,563 1,665 15,034 35,089 Consumer owner occupied 19,381 — 5 17,307 Home equity loans 5,736 — 1,489 6,316 Commercial and industrial 29,953 1,837 6,252 17,129 Other income producing property 2,991 147 — 2,734 Consumer 5,282 1 — 4,398 Total loans on nonaccrual status $ 120,970 $ 3,650 $ 34,126 $ 104,225 (1) – Greater than 90 days accruing and non-accrual with no allowance loans at March 31, 2023. |
Summary of collateral dependent loans, by type of collateral | The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period: March 31, Collateral December 31, Collateral (Dollars in thousands) 2023 Coverage % 2022 Coverage % Commercial owner occupied real estate Industrial $ 8,166 $ 9,344 114% $ — $ — Other 6,868 17,012 248% 14,638 38,900 266% Commercial non-owner occupied real estate Other 11,338 31,860 281% 6,450 10,900 169% Commercial and industrial Other 18,428 30,586 166% 4,808 5,591 116% Home equity loans Residential 1-4 family dwelling 1,489 2,860 192% 1,523 1,671 110% Total collateral dependent loans $ 46,289 $ 91,662 $ 27,419 $ 57,062 |
Schedule of restructured loans segregated by class and type of concession | Three Months Ended and As of March 31, 2023 Increase in Amortized % of Total Weighted Average (Dollars in thousands) Cost Asset Class Life of Loan Term extension Construction and land development $ 260 $ 0.04% 12 months Commercial owner occupied real estate 2,105 0.02% 8 months Commercial and industrial 1,145 0.02% 10 months Consumer 282 0.02% 6 months Total term extensions $ 3,792 |
Schedule of changes in status of loans restructured within the previous 12 months | The following table presents the changes in status of loans modified within the previous three months to borrowers experiencing financial difficulty, as of March 31, 2023, by type of modification. There were no subsequent defaults. Paying Under Converted to Foreclosures Restructured Terms Nonaccrual and Defaults Amortized Amortized Amortized (Dollars in thousands) Cost Cost Cost Term extension Construction and land development $ 260 $ — $ — Commercial owner occupied real estate 2,105 — — Consumer owner occupied 282 — — Commercial and industrial 1,145 — — Total term extensions $ 3,792 $ — $ — The following table presents the changes in status of TDR loans within the previous twelve months as of March 31, 2022 by type of concession, for the comparative period, prior to the adoption of ASU 2022-02. There were no subsequent defaults that resulted in a change to reserves on the individually evaluated loan. Paying Under Converted to Foreclosures and Restructured Terms Nonaccrual Defaults Number Recorded Number Recorded Number Recorded (Dollars in thousands) of Loans Investment of Loans Investment of Loans Investment Interest rate modification 14 $ 1,783 — $ — — $ — Term modification 4 2,806 — — — — 18 $ 4,589 — $ — — $ — |
Non acquired credit impaired loans | |
Summary of Loans | |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | The following table depicts the performance of loans modified within the previous three months to borrowers experiencing financial difficulty, as of March 31, 2023. Payment Status (Amortized Cost Basis) 30-89 Days 90+ Days (Dollars in thousands) Current Past Due Past Due Construction and land development $ 260 $ — $ — Commercial owner occupied 2,105 — — Consumer owner occupied 282 — — Commercial and industrial 1,145 — — Total $ 3,792 $ — $ — |
Schedule of restructured loans segregated by class and type of concession | The following table presents loans designated as TDRs segregated by class and type of concession that were restructured, for the comparative period, prior to the adoption of ASU 2022-02. Three Months Ended March 31, 2022 Pre-Modification Post-Modification Number Amortized Amortized (Dollars in thousands) of loans Cost Cost Interest rate modification Construction and land development 1 $ 120 $ 120 Commercial non-owner occupied 1 187 187 Commercial owner occupied 2 268 268 Consumer owner occupied 1 99 99 Commercial and industrial 4 497 497 Other income producing property 2 119 119 Total interest rate modifications 11 $ 1,290 $ 1,290 Term modification Construction and land development 1 $ 141 $ 141 Commercial non-owner occupied 2 2,356 2,356 Total term modifications 3 2,497 2,497 14 $ 3,787 $ 3,787 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (ACL) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Allowance for Credit Losses (ACL) | |
Schedule of changes in allowance for loan losses | The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows: Residential Residential Residential Other CRE Owner Non-Owner (Dollars in thousands) Mortgage Sr. Mortgage Jr. HELOC Construction C&D Consumer Multifamily Municipal Occupied Occupied CRE C & I Total Three Months Ended March 31, 2023 Allowance for credit losses: Balance at end of period December 31, 2022 $ 72,188 $ 405 $ 14,886 $ 8,974 $ 45,410 $ 22,767 $ 3,684 $ 849 $ 58,083 $ 78,485 $ 50,713 $ 356,444 Charge-offs (2) — (39) — — (2,729) — — — (51) (1,806) (4,627) Recoveries 294 5 245 72 258 584 — — 293 106 1,732 3,589 Net (charge offs) recoveries 292 5 206 72 258 (2,145) — — 293 55 (74) (1,038) Provision (recovery) (1) 4,871 (61) (774) 130 9,401 2,697 1,823 30 (835) 3,933 (5,976) 15,239 Balance at end of period March 31, 2023 $ 77,351 $ 349 $ 14,318 $ 9,176 $ 55,069 $ 23,319 $ 5,507 $ 879 $ 57,541 $ 82,473 $ 44,663 $ 370,645 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 77,982 $ 350 $ 12,229 $ 8,994 $ 49,865 $ 23,319 $ 5,369 $ 731 $ 49,297 $ 78,013 $ 35,355 $ 341,504 Individually evaluated 197 — 2,285 — 155 — — — 6,812 2,721 4,612 16,782 Total quantitative allowance 78,179 350 14,514 8,994 50,020 23,319 5,369 731 56,109 80,734 39,967 358,286 Qualitative allowance (828) (1) (196) 182 5,049 — 138 148 1,432 1,739 4,696 12,359 Balance at end of period March 31, 2023 $ 77,351 $ 349 $ 14,318 $ 9,176 $ 55,069 $ 23,319 $ 5,507 $ 879 $ 57,541 $ 82,473 $ 44,663 $ 370,645 Three Months Ended March 31, 2022 Allowance for credit losses: Balance at end of period December 31, 2021 $ 47,036 $ 611 $ 13,325 $ 4,997 $ 37,593 $ 23,149 $ 4,921 $ 565 $ 61,794 $ 79,649 $ 28,167 $ 301,807 Initial Allowance for PCD loans acquired during period 84 — — — 86 — — — 1,479 — 7,569 9,218 Initial Allowance for Non PCD loans acquired during period 352 26 132 2 1,887 51 426 — 2,519 2,697 5,605 13,697 Charge-offs (58) (19) (218) — (4) (2,661) — — (371) — (2,159) (5,490) Recoveries 394 55 257 3 234 532 — — 314 69 1,309 3,167 Net (charge offs) recoveries 336 36 39 3 230 (2,129) — — (57) 69 (850) (2,323) Provision (recovery) (1) (1,806) (87) 175 614 (14,438) 828 (1,444) 42 (16,641) 13,945 (3,191) (22,003) Balance at end of period March 31, 2022 $ 46,002 $ 586 $ 13,671 $ 5,616 $ 25,358 $ 21,899 $ 3,903 $ 607 $ 49,094 $ 96,360 $ 37,300 $ 300,396 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 45,805 $ 586 $ 12,301 $ 5,616 $ 24,770 $ 21,899 $ 3,903 $ 607 $ 45,302 $ 95,051 $ 32,476 $ 288,316 Individually evaluated 168 — 1,357 — 588 — — — 2,960 — 3,358 8,431 Total quantitative allowance 45,973 586 13,658 5,616 25,358 21,899 3,903 607 48,262 95,051 35,834 296,747 Qualitative allowance 29 — 13 — — — — — 832 1,309 1,466 3,649 Balance at end of period March 31, 2022 $ 46,002 $ 586 $ 13,671 $ 5,616 $ 25,358 $ 21,899 $ 3,903 $ 607 $ 49,094 $ 96,360 $ 37,300 $ 300,396 (1) Provision for credit losses for unfunded commitments of $17.9 million was recorded during the first quarter of 2023, compared to a negative provision (recovery) for credit losses of ($142,000) , net of the provision for $3.4 million recorded for the unfunded commitments acquired from ACBI, recorded during the first quarter of 2022 that is not included in the above table. |
Other Real Estate Owned and B_2
Other Real Estate Owned and Bank Properties Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Real Estate Owned and Bank Properties Held for Sale | |
Schedule of information pertaining to OREO and Bank Premises Held for Sale | (Dollars in thousands) OREO Bank Properties Held for Sale Total Balance, December 31, 2022 $ 1,023 $ 17,754 $ 18,777 Additions, net 2,826 — 2,826 Write-downs — (409) (409) Sold (376) (621) (997) Balance, March 31, 2023 $ 3,473 $ 16,724 $ 20,197 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Schedule of information pertaining to operating leases | Three Months Ended (Dollars in thousands) March 31, 2023 2022 Lease Cost Components: Amortization of ROU assets - finance leases $ 117 $ 117 Interest on lease liabilities - finance leases 11 13 Operating lease cost (cost resulting from lease payments) 4,240 4,333 Short-term lease cost 109 143 Variable lease cost (cost excluded from lease payments) 634 437 Total lease cost $ 5,111 $ 5,043 Supplemental Cash Flow and Other Information Related to Leases: Finance lease - operating cash flows $ 11 $ 13 Finance lease - financing cash flows 110 108 Operating lease - operating cash flows (fixed payments) 4,097 4,181 Operating lease - operating cash flows (net change asset/liability) (3,287) (3,303) New ROU assets - operating leases — 12,428 New ROU assets - finance leases — — Weighted - average remaining lease term (years) - finance leases 5.18 6.17 Weighted - average remaining lease term (years) - operating leases 9.88 10.47 Weighted - average discount rate - finance leases 1.7% 1.7% Weighted - average discount rate - operating leases 3.0% 3.0% Operating lease payments due: 2023 (excluding the quarter ended March 31, 2023) $ 12,226 2024 15,011 2025 13,548 2026 13,135 2027 12,172 Thereafter 66,550 Total undiscounted cash flows 132,642 Discount on cash flows (20,233) Total operating lease liabilities $ 112,409 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deposits | |
Schedule of total deposits | March 31, December 31, (Dollars in thousands) 2023 2022 Noninterest-bearing checking $ 12,422,583 $ 13,168,656 Interest-bearing checking 8,316,023 8,955,519 Savings 3,156,214 3,464,351 Money market 8,388,275 8,342,111 Time deposits 4,118,497 2,419,986 Total deposits $ 36,401,592 $ 36,350,623 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Common Share | |
Schedule of computation of basic and diluted earnings per common share | Three Months Ended March 31, (Dollars and shares in thousands, except for per share amounts) 2023 2022 Basic earnings per common share: Net income $ 139,926 $ 100,329 Weighted-average basic common shares 75,902 71,447 Basic earnings per common share $ 1.84 $ 1.40 Diluted earnings per common share: Net income $ 139,926 $ 100,329 Weighted-average basic common shares 75,902 71,447 Effect of dilutive securities 487 664 Weighted-average dilutive shares 76,389 72,111 Diluted earnings per common share $ 1.83 $ 1.39 |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per common share | Three Months Ended March 31, 2023 2022 Number of shares 57,169 57,169 Range of exercise prices $ 87.30 to $ 91.35 $ 87.30 to $ 91.35 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Compensation | |
Schedule of stock option activity | Weighted Weighted Average Aggregate Average Remaining Intrinsic Shares Price (Yrs.) (000's) Outstanding at January 1, 2023 161,832 $ 66.20 Exercised (19,011) 51.01 Expired (929) 33.09 Outstanding at March 31, 2023 141,892 68.45 3.03 $ 1,534 Exercisable at March 31, 2023 141,892 68.45 3.03 $ 1,534 |
Summary of nonvested restricted stock | Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2023 50,506 $ 89.12 Vested (18,380) 90.00 Forfeited (2,233) 90.00 Nonvested at March 31, 2023 29,893 $ 88.51 |
Summary of nonvested RSUs | Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Outstanding at January 1, 2023 940,512 $ 73.82 Granted 328,343 76.05 Vested (177,708) 86.81 Forfeited (3,604) 75.92 Outstanding at March 31, 2023 1,087,543 $ 72.37 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2023: Assets Derivative financial instruments $ 159,287 $ — $ 159,287 $ — Loans held for sale 27,289 — 27,289 — Trading securities 16,039 — 16,039 — Securities available for sale: U.S. Treasuries 268,096 — 268,096 — U.S. Government agencies 220,259 — 220,259 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,673,162 — 1,673,162 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 591,412 — 591,412 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 987,437 — 987,437 — State and municipal obligations 966,957 — 966,957 — Small Business Administration loan-backed securities 425,492 — 425,492 — Corporate securities 27,184 — 27,184 — Total securities available for sale 5,159,999 — 5,159,999 — Mortgage servicing rights 85,406 — — 85,406 SBA servicing asset 6,521 — — 6,521 $ 5,454,541 $ — $ 5,362,614 $ 91,927 Liabilities Derivative financial instruments $ 806,584 $ — $ 806,584 $ — December 31, 2022: Assets Derivative financial instruments $ 211,016 $ — $ 211,016 $ — Loans held for sale 28,968 — 28,968 — Trading securities 31,263 — 31,263 — Securities available for sale: U.S. Treasuries 265,638 — 265,638 — U.S. Government agencies 219,088 — 219,088 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,698,353 — 1,698,353 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 601,045 — 601,045 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,000,398 — 1,000,398 — State and municipal obligations 1,064,852 — 1,064,852 — Small Business Administration loan-backed securities 444,810 — 444,810 — Corporate securities 32,638 — 32,638 — Total securities available for sale 5,326,822 — 5,326,822 — Mortgage servicing rights 86,610 — — 86,610 SBA servicing asset 6,068 — — 6,068 $ 5,690,747 $ — $ 5,598,069 $ 92,678 Liabilities Derivative financial instruments $ 1,034,143 $ — $ 1,034,143 $ — |
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis | (Dollars in thousands) MSRs Fair value, January 1, 2023 $ 86,610 Servicing assets that resulted from transfers of financial assets 1,494 Changes in fair value due to valuation inputs or assumptions (1,289) Changes in fair value due to decay (1,409) Fair value, March 31, 2023 $ 85,406 |
Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2023: OREO $ 3,473 $ — $ — $ 3,473 Bank properties held for sale 16,724 — — 16,724 Individually evaluated loans 28,650 — — 28,650 December 31, 2022: OREO $ 1,023 $ — $ — $ 1,023 Bank properties held for sale 17,754 — — 17,754 Individually evaluated loans 20,802 — — 20,802 |
Schedule of quantitative information about level 3 fair value measurements | Weighted Average March 31, December 31, Valuation Technique Unobservable Input 2023 2022 Nonrecurring measurements: Individually evaluated loans Discounted appraisals and discounted cash flows Collateral discounts 24 % 31 % OREO and Bank properties held for sale Discounted appraisals Collateral discounts and estimated costs to sell 15 % 16 % |
Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments | Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 March 31, 2023 Financial assets: Cash and cash equivalents $ 1,996,662 $ 1,996,662 $ 1,996,662 $ — $ — Trading securities 16,039 16,039 — 16,039 — Investment securities 8,014,663 7,567,328 179,717 7,387,611 — Loans held for sale 27,289 27,289 — 27,289 — Loans, net of allowance for credit losses 30,325,497 29,646,800 — — 29,646,800 Accrued interest receivable 138,515 138,515 — 26,888 111,627 Mortgage servicing rights 85,406 85,406 — — 85,406 SBA servicing asset 6,521 — — — 6,521 Interest rate swap - non-designated hedge 157,014 157,014 — 157,014 — Other derivative financial instruments (mortgage banking related) 2,273 2,273 — 2,273 — Financial liabilities: Deposits 36,401,592 36,333,275 — 36,333,275 — Federal funds purchased and securities sold under agreements to repurchase 544,108 556,417 — 556,417 — Corporate and subordinated debentures 392,182 380,925 — 380,925 — Other borrowings 900,000 900,000 — 900,000 — Accrued interest payable 20,411 20,411 — 20,411 — Interest rate swap - non-designated hedge 806,584 806,584 — 806,584 — Other derivative financial instruments (mortgage banking related) — — — — — Off balance sheet financial instruments: Commitments to extend credit — (255,022) — (255,022) — December 31, 2022 Financial assets: Cash and cash equivalents $ 1,312,563 $ 1,312,563 $ 1,312,563 $ — $ — Trading securities 31,263 31,263 — 31,263 — Investment securities 8,189,780 7,756,707 179,717 7,576,990 — Loans held for sale 28,968 28,968 — 28,968 — Loans, net of allowance for credit losses 29,821,418 29,329,499 — — 29,329,499 Accrued interest receivable 134,594 134,594 — 28,449 106,145 Mortgage servicing rights 86,610 86,610 — — 86,610 SBA servicing asset 6,068 — — — 6,068 Interest rate swap - non-designated hedge 210,216 210,216 — 210,216 — Other derivative financial instruments (mortgage banking related) 800 800 — 800 — Financial liabilities: Deposits 36,350,623 36,264,401 — 36,264,401 — Federal funds purchased and securities sold under agreements to repurchase 556,417 556,417 — 556,417 — Corporate and subordinated debentures 392,275 377,360 — 377,360 — Accrued interest payable 6,218 6,218 — 3,345 — Interest rate swap - non-designated hedge 1,033,980 1,033,980 — 1,033,980 — Other derivative financial instruments (mortgage banking related) 163 163 — 163 — Off balance sheet financial instruments: Commitments to extend credit — (184,801) — (184,801) — |
SBA servicing asset | |
Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis | (Dollars in thousands) SBA Servicing Asset Fair value, January 1, 2023 $ 6,068 Servicing assets that resulted from transfers of financial assets 334 Changes in fair value due to decay (236) Changes in fair value due to valuation inputs or assumptions 355 Fair value, March 31, 2023 $ 6,521 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive (loss) income | Unrealized Gains and Benefit (Losses) on Securities (Dollars in thousands) Plans Available for Sale Total Three Months Ended March 31, 2023 Balance at December 31, 2022 $ (673) $ (676,415) $ (677,088) Other comprehensive income before reclassifications — 63,271 63,271 Amounts reclassified from accumulated other comprehensive loss — 33 33 Net comprehensive income — 63,304 63,304 Balance at March 31, 2023 $ (673) $ (613,111) $ (613,784) Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 57 $ (21,203) $ (21,146) Other comprehensive loss before reclassifications — (272,810) (272,810) Net comprehensive loss — (272,810) (272,810) Balance at March 31, 2022 $ 57 $ (294,013) $ (293,956) |
Schedule of reclassifications out of accumulated other comprehensive (loss) income, net of tax | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) For the Three Months Ended March 31, Accumulated Other Comprehensive Income (Loss) Component 2023 2022 Income Statement Line Item Affected Gains on sales of available for sale securities: $ 45 $ — Securities gains, net (12) — Provision for income taxes 33 — Net income Total reclassifications for the period $ 33 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Financial Instruments | |
Derivative financial instruments summary | March 31, 2023 December 31, 2022 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets and Other Liabilities $ 12,186 $ 206 $ — $ 12,289 $ 414 $ — Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities 10,701,004 28,580 805,749 10,480,171 8,539 1,033,980 Matched interest rate swaps with counterparty Other Assets and Other Liabilities 10,606,749 128,227 835 10,400,733 201,263 — Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets and Other Liabilities 67,500 1,158 — 35,000 — 163 Contracts used to hedge mortgage pipeline Other Assets 100,500 1,115 — 51,000 800 — Total derivatives $ 21,487,939 $ 159,286 $ 806,584 $ 20,979,193 $ 211,016 $ 1,034,143 |
Schedule of notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline | (Dollars in thousands) March 31, 2023 December 31, 2022 Mortgage loan pipeline $ 107,831 $ 40,850 Expected closures 90,737 37,210 Fair value of mortgage loan pipeline commitments 1,848 524 Forward sales commitments 100,500 51,000 Fair value of forward commitments (734) 276 |
Capital Ratios (Tables)
Capital Ratios (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Capital Ratios | |
Schedule of actual and required capital ratios | Required to be Minimum Capital Considered Well Actual Required - Basel III Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio March 31, 2023: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,891,155 11.13 % $ 2,446,483 7.00 % $ 2,271,735 6.50 % SouthState Bank (the Bank) 4,165,577 11.93 % 2,443,212 7.00 % 2,268,697 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,891,155 11.13 % 2,970,730 8.50 % 2,795,981 8.00 % SouthState Bank (the Bank) 4,165,577 11.93 % 2,966,757 8.50 % 2,792,242 8.00 % Total capital to risk-weighted assets: Consolidated 4,647,783 13.30 % 3,669,725 10.50 % 3,494,976 10.00 % SouthState Bank (the Bank) 4,532,206 12.99 % 3,664,818 10.50 % 3,490,303 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,891,155 9.05 % 1,719,404 4.00 % 2,149,255 5.00 % SouthState Bank (the Bank) 4,165,577 9.70 % 1,718,633 4.00 % 2,148,291 5.00 % December 31, 2022: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,788,106 10.96 % $ 2,420,417 7.00 % $ 2,247,530 6.50 % SouthState Bank (the Bank) 4,074,045 11.80 % 2,417,133 7.00 % 2,244,481 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,788,106 10.96 % 2,939,077 8.50 % 2,766,190 8.00 % SouthState Bank (the Bank) 4,074,045 11.80 % 2,935,090 8.50 % 2,762,438 8.00 % Total capital to risk-weighted assets: Consolidated 4,485,397 12.97 % 3,630,625 10.50 % 3,457,738 10.00 % SouthState Bank (the Bank) 4,381,336 12.69 % 3,625,700 10.50 % 3,453,047 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,788,106 8.72 % 1,736,991 4.00 % 2,171,239 5.00 % SouthState Bank (the Bank) 4,074,045 9.39 % 1,736,330 4.00 % 2,170,412 5.00 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Other Intangible Assets | |
Summary of gross carrying amounts and accumulated amortization of other intangible assets | March 31, December 31, (Dollars in thousands) 2023 2022 Gross carrying amount $ 275,321 $ 274,869 Accumulated amortization (165,718) (158,419) $ 109,603 $ 116,450 |
Schedule of estimated amortization expense for other intangibles for each of the next five quarters | (Dollars in thousands) Quarter ending: June 30, 2023 $ 7,028 September 30, 2023 6,616 December 31, 2023 6,615 March 31, 2024 6,003 June 30, 2024 5,739 Thereafter 71,082 $ 103,083 |
Mortgage Loan Servicing, Orig_2
Mortgage Loan Servicing, Origination, and Loans Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Mortgage Loan Servicing, Origination, and Loans Held for Sale | |
Summary of changes in the fair value of MSRs and its offsetting hedge | Three Months Ended (Dollars in thousands) March 31, 2023 March 31, 2022 (Decrease) increase in fair value of MSRs $ (1,290) $ 12,827 Decay of MSRs (1,409) (2,230) Gain (loss) related to derivatives 145 (11,838) Net effect on Condensed Consolidated Statements of Net Income $ (2,554) $ (1,241) |
Schedule of characteristics and sensitivity analysis of the MSR | The characteristics and sensitivity analysis of the MSRs are included in the following table. March 31, December 31, (Dollars in thousands) 2023 2022 Composition of residential loans serviced for others Fixed-rate mortgage loans 100.0 % 100.0 % Adjustable-rate mortgage loans — % — % Total 100.0 % 100.0 % Weighted average life 8.24 years 8.37 years Constant Prepayment rate (CPR) 6.6 % 6.4 % Weighted average discount rate 10.0 % 10.0 % Effect on fair value due to change in interest rates 25 basis point increase $ 1,012 $ 774 50 basis point increase 1,888 1,428 25 basis point decrease (1,146) (902) 50 basis point decrease (2,422) (1,938) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Leases (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Summary of Significant Accounting Policies | |
Financing Receivable , Individually Evaluated for Losses ,Net Book Balance | $ 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Held-to-maturity Securities | $ 2,636,673 | $ 2,683,241 |
Threshold Net Book Balance, Individually Evaluated Loans | 1,000 | |
Financing Receivable, Threshold Loss on Modifications Estimated | 1,000 | |
Interest Receivable | 109,400 | 105,400 |
Liability Recorded for Expected Credit Losses on Unfunded Commitments | 85,100 | |
Other Assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accrued interest receivable for investment securities | 26,400 | 28,200 |
Interest Receivable | 109,400 | 105,400 |
Other Liabilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Liability Recorded for Expected Credit Losses on Unfunded Commitments | $ 85,100 | $ 67,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reclassification and Correction Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Effect to interest income on federal funds sold and interest-earning deposits with banks | $ 8,921 | $ 2,859 |
Net effect to interest income | 450,409 | 270,471 |
Effect to interest expense on deposits | 55,942 | 4,591 |
Net effect to interest expense | 69,146 | 8,953 |
Net effect to net interest income | 381,263 | 261,518 |
Noninterest income: | ||
Net effect to noninterest income | 71,355 | 86,046 |
Net effect to net income | 139,926 | 100,329 |
Correspondent banking and capital market income | ||
Noninterest income: | ||
Noninterest income | $ 13,594 | 27,950 |
Adjustments | ||
Interest income: | ||
Effect to interest income on federal funds sold and interest-earning deposits with banks | 7 | |
Net effect to interest income | 7 | |
Effect to interest expense on deposits | (37) | |
Net effect to interest expense | (37) | |
Net effect to net interest income | 44 | |
Noninterest income: | ||
Net effect to noninterest income | (44) | |
Adjustments | Correspondent banking and capital market income | ||
Noninterest income: | ||
Noninterest income | $ (44) |
Mergers and Acquisitions - Atla
Mergers and Acquisitions - Atlantic Capital (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 01, 2022 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Mergers and Acquisitions | ||||
Goodwill | $ 1,923,106,000 | $ 1,923,106,000 | ||
Deposits: | ||||
Goodwill | 1,923,106,000 | 1,923,106,000 | ||
Consideration: | ||||
Reversal of CSFL's ending allowance for credit losses | 4,627,000 | $ 5,490,000 | $ 23,446,000 | |
Atlantic Capital | ||||
Mergers and Acquisitions | ||||
Shares of the common stock in exchange for each share | 0.36 | |||
Purchase price | $ 657,810,000 | |||
Loans at fair value acquired after initial fair value adjustment | 2,400,000,000 | |||
Estimated discount on loans | $ 54,300,000 | |||
Estimated discount on loans (as a percent) | 2.24% | |||
Loans acquired as a percentage of total loans | 10% | |||
Credit deficiencies that were identified as Purchased Credit Deteriorated ("PCD") loans. | $ 137,900,000 | |||
Goodwill | 342,021,000 | |||
Acquisition costs | $ 1,400,000 | $ 5,600,000 | ||
Assets | ||||
Cash and cash equivalents | 250,158,000 | |||
Investment securities | 703,710,000 | |||
Loans, net of allowance and mark | 2,369,678,000 | |||
Premises and equipment | 19,500,000 | |||
Intangible assets | 20,791,000 | |||
Bank owned life insurance | 74,613,000 | |||
Deferred tax asset | 31,479,000 | |||
Other assets | 51,554,000 | |||
Total assets | 3,521,483,000 | |||
Deposits: | ||||
Noninterest-bearing | 1,411,671,000 | |||
Interest-bearing | 1,616,970,000 | |||
Total deposits | 3,028,641,000 | |||
Federal funds purchased and securities sold under agreements to repurchase | 50,000,000 | |||
Other borrowings | 78,417,000 | |||
Other liabilities | 48,636,000 | |||
Total liabilities | 3,205,694,000 | |||
Net identifiable assets acquired over (under) liabilities assumed | 315,789,000 | |||
Goodwill | 342,021,000 | |||
Net assets acquired over liabilities assumed | $ 657,810,000 | |||
Consideration: | ||||
Number of shares issued as consideration | shares | 7,330,803 | |||
Purchase price per share of the Company's common stock | $ / shares | $ 90 | |||
Company common stock issued and cash exchanged for fractional shares. | $ 659,791,000 | |||
Value of shares issued | 659,772,000 | |||
Value of common stock issued for fractional shares | 19,000 | |||
Stock option conversion | 1,135,000 | |||
Restricted stock unit conversion | 2,870,000 | |||
Restricted stock awards conversion (unvested awards) | (5,986,000) | |||
Fair value of total consideration transferred | 657,810,000 | |||
Reversal of fair value adjustments | 17,200,000 | |||
Securities and time deposits at fair value (discount) | 30,900,000 | |||
HTM reclassified to AFS | $ 237,600,000 | |||
Credit mark of the loan portfolio (as a percent) | 1.40% | |||
Credit mark of the loan portfolio | $ 34,000,000 | |||
Net credit discount of the loan portfolio (as a percent) | 2.24% | |||
Net non-credit discount of the loan portfolio | $ 54,300,000 | |||
Reversal of CSFL's ending allowance for credit losses | 22,100,000 | |||
Fair value adjustment for reversal of deferred fees and costs | 7,600,000 | |||
Fair value adjustment for fixed assets and leased assets | 2,600,000 | |||
Core deposit intangible from a third party valuation | $ 17,500,000 | |||
Core deposit intangible from a third party valuation (as a percent) | 0.63 | |||
Serving assets from third party valuation | $ 3,200,000 | |||
Servicing assets written off | 19,900,000 | |||
Goodwill written off | $ 2,600,000 | |||
Deferred tax assets related to fair value adjustments with marginal tax rate | 23.90% | |||
Fair value negative adjustment for investment in low income housing | $ 1,100,000 | |||
Fair value adjustment (decrease) on write-off of prepaid assets | 233,000 | |||
Fair value adjustment for receivables | 154,000 | |||
Fair value adjustment for Small Business Investment Company ("SBIC') Investments | 7,400,000 | |||
Issuance costs on subordinated debt | 900,000 | |||
Fair value adjustment on reversal of debt issuance costs | 3,400,000 | |||
Reversal of an existing unfunded commitment reserve at purchase date | 2,800,000 | |||
Fair value adjustment to increase lease liabilities associated with rental facilities | 1,400,000 | |||
Fair value adjustment for reversal of uncertain tax liability | 700,000 | |||
Atlantic Capital | As Recorded by Atlantic Capital | ||||
Assets | ||||
Cash and cash equivalents | 250,134,000 | |||
Investment securities | 717,332,000 | |||
Loans, net of allowance and mark | 2,394,256,000 | |||
Premises and equipment | 16,892,000 | |||
Intangible assets | 22,572,000 | |||
Bank owned life insurance | 74,613,000 | |||
Deferred tax asset | 30,231,000 | |||
Other assets | 45,274,000 | |||
Total assets | 3,551,304,000 | |||
Deposits: | ||||
Noninterest-bearing | 1,411,671,000 | |||
Interest-bearing | 1,616,970,000 | |||
Total deposits | 3,028,641,000 | |||
Federal funds purchased and securities sold under agreements to repurchase | 50,000,000 | |||
Other borrowings | 74,131,000 | |||
Other liabilities | 50,711,000 | |||
Total liabilities | 3,203,483,000 | |||
Net identifiable assets acquired over (under) liabilities assumed | 347,821,000 | |||
Net assets acquired over liabilities assumed | 347,821,000 | |||
Atlantic Capital | Initial Fair Value Adjustments | ||||
Mergers and Acquisitions | ||||
Goodwill | 342,939,000 | |||
Assets | ||||
Cash and cash equivalents | 24,000 | |||
Investment securities | (13,622,000) | |||
Loans, net of allowance and mark | (18,964,000) | |||
Premises and equipment | 2,608,000 | |||
Intangible assets | (1,781,000) | |||
Deferred tax asset | 2,273,000 | |||
Other assets | (1,277,000) | |||
Total assets | (30,739,000) | |||
Deposits: | ||||
Other borrowings | 4,286,000 | |||
Other liabilities | (2,075,000) | |||
Total liabilities | 2,211,000 | |||
Net identifiable assets acquired over (under) liabilities assumed | (32,950,000) | |||
Goodwill | 342,939,000 | |||
Net assets acquired over liabilities assumed | 309,989,000 | |||
Atlantic Capital | Subsequent Fair Value Adjustments | ||||
Mergers and Acquisitions | ||||
Goodwill | (918,000) | |||
Assets | ||||
Loans, net of allowance and mark | (5,614,000) | |||
Deferred tax asset | (1,025,000) | |||
Other assets | 7,557,000 | |||
Total assets | 918,000 | |||
Deposits: | ||||
Net identifiable assets acquired over (under) liabilities assumed | 918,000 | |||
Goodwill | $ (918,000) |
Mergers and Acquisitions - Pro
Mergers and Acquisitions - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Proforma amounts | ||
Total revenues (net interest income plus noninterest income) | $ 371,196 | |
Net interest income | 281,577 | |
Net adjusted income available to the common shareholder | $ 113,903 | |
EPS - basic | $ 1.49 | |
EPS - diluted | $ 1.48 | |
Atlantic Capital | ||
Mergers and Acquisitions | ||
Acquisition costs | $ 1,400 | $ 5,600 |
Securities - Amortized cost and
Securities - Amortized cost and fair value for available for sale securities (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
investment securities held-to-maturity | |||
Amortized cost | $ 2,636,673,000 | $ 2,683,241,000 | |
Gross Unrealized Losses | (409,061,000) | (433,073,000) | |
Fair Value | 2,227,612,000 | 2,250,168,000 | |
Investment securities available for sale | |||
Amortized cost | 5,976,501,000 | 6,216,141,000 | |
Gross Unrealized Gains | 206,000 | 4,054,000 | |
Gross Unrealized Losses | (816,708,000) | (893,373,000) | |
Fair Value | 5,159,999,000 | 5,326,822,000 | |
Gross realized gains | 1,300,000 | ||
Gross realized losses | 1,300,000 | ||
Securities gains, net | 45,000 | ||
Atlantic Capital | |||
Investment securities available for sale | |||
Realized gains or losses | $ 0 | ||
Sold securities | $ 414,400,000 | ||
U.S. Treasuries | |||
Investment securities available for sale | |||
Amortized cost | 273,035,000 | 272,416,000 | |
Gross Unrealized Losses | (4,939,000) | (6,778,000) | |
Fair Value | 268,096,000 | 265,638,000 | |
U.S. Government agencies | |||
investment securities held-to-maturity | |||
Amortized cost | 197,264,000 | 197,262,000 | |
Gross Unrealized Losses | (28,175,000) | (29,787,000) | |
Fair Value | 169,089,000 | 167,475,000 | |
Investment securities available for sale | |||
Amortized cost | 246,001,000 | 245,972,000 | |
Gross Unrealized Losses | (25,742,000) | (26,884,000) | |
Fair Value | 220,259,000 | 219,088,000 | |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | |||
investment securities held-to-maturity | |||
Amortized cost | 1,553,373,000 | 1,591,646,000 | |
Gross Unrealized Losses | (238,470,000) | (255,093,000) | |
Fair Value | 1,314,903,000 | 1,336,553,000 | |
Investment securities available for sale | |||
Amortized cost | 1,951,725,000 | 1,996,405,000 | |
Gross Unrealized Losses | (278,563,000) | (298,052,000) | |
Fair Value | 1,673,162,000 | 1,698,353,000 | |
Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises | |||
investment securities held-to-maturity | |||
Amortized cost | 468,794,000 | 474,660,000 | |
Gross Unrealized Losses | (63,317,000) | (69,664,000) | |
Fair Value | 405,477,000 | 404,996,000 | |
Investment securities available for sale | |||
Amortized cost | 689,575,000 | 708,337,000 | |
Gross Unrealized Losses | (98,163,000) | (107,292,000) | |
Fair Value | 591,412,000 | 601,045,000 | |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | |||
investment securities held-to-maturity | |||
Amortized cost | 360,962,000 | 362,586,000 | |
Gross Unrealized Losses | (68,141,000) | (66,304,000) | |
Fair Value | 292,821,000 | 296,282,000 | |
Investment securities available for sale | |||
Amortized cost | 1,180,323,000 | 1,196,700,000 | |
Gross Unrealized Gains | 8,000 | 2,542,000 | |
Gross Unrealized Losses | (192,894,000) | (198,844,000) | |
Fair Value | 987,437,000 | 1,000,398,000 | |
State and municipal obligations | |||
Investment securities available for sale | |||
Amortized cost | 1,138,809,000 | 1,269,525,000 | |
Gross Unrealized Gains | 4,000 | 1,210,000 | |
Gross Unrealized Losses | (171,856,000) | (205,883,000) | |
Fair Value | 966,957,000 | 1,064,852,000 | |
Small Business Administration loan-backed securities | |||
investment securities held-to-maturity | |||
Amortized cost | 56,280,000 | 57,087,000 | |
Gross Unrealized Losses | (10,958,000) | (12,225,000) | |
Fair Value | 45,322,000 | 44,862,000 | |
Investment securities available for sale | |||
Amortized cost | 466,462,000 | 491,203,000 | |
Gross Unrealized Gains | 194,000 | 302,000 | |
Gross Unrealized Losses | (41,164,000) | (46,695,000) | |
Fair Value | 425,492,000 | 444,810,000 | |
Corporate securities. | |||
Investment securities available for sale | |||
Amortized cost | 30,571,000 | 35,583,000 | |
Gross Unrealized Losses | (3,387,000) | (2,945,000) | |
Fair Value | $ 27,184,000 | $ 32,638,000 |
Securities - Carrying value of
Securities - Carrying value of other investment securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other investment securities | ||
Carrying Value | $ 217,991 | $ 179,717 |
Federal Home Loan Bank stock | ||
Other investment securities | ||
Carrying Value | 53,335 | 15,085 |
Federal Reserve Bank Stock | ||
Other investment securities | ||
Carrying Value | 150,261 | 150,261 |
Investment in unconsolidated subsidiaries | ||
Other investment securities | ||
Carrying Value | 3,563 | 3,563 |
Other nonmarketable investment securities | ||
Other investment securities | ||
Carrying Value | $ 10,832 | $ 10,808 |
Securities - Amortized cost a_2
Securities - Amortized cost and fair value by contractual maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due after one year through five years | $ 101,073 | |
Due after five years through ten years | 382,261 | |
Due after ten years | 2,153,339 | |
Total | 2,636,673 | $ 2,683,241 |
Fair Value | ||
Due after one year through five years | 94,058 | |
Due after five years through ten years | 337,412 | |
Due after ten years | 1,796,142 | |
Fair Value | 2,227,612 | 2,250,168 |
Amortized Cost | ||
Due in one year or less | 254,326 | |
Due after one year through five years | 309,053 | |
Due after five years through ten years | 1,148,155 | |
Due after ten years | 4,264,967 | |
Amortized Cost | 5,976,501 | 6,216,141 |
Fair Value | ||
Due in one year or less | 250,191 | |
Due after one year through five years | 295,225 | |
Due after five years through ten years | 1,001,653 | |
Due after ten years | 3,612,930 | |
Fair Value | $ 5,159,999 | $ 5,326,822 |
Securities - Securities with gr
Securities - Securities with gross unrealized losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | $ 14,601 | $ 115,297 |
Twelve Months or More | 394,460 | 317,776 |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 103,696 | 952,682 |
Twelve Months or More | 2,123,916 | 1,297,486 |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 20,661 | 197,789 |
Twelve Months or More | 796,047 | 695,584 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 427,481 | 2,082,068 |
Twelve Months or More | 4,656,179 | 3,073,871 |
U.S. Treasuries | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 6,778 | |
Twelve Months or More | 4,939 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 265,638 | |
Twelve Months or More | 268,096 | |
U.S. Government agencies | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 5,514 | |
Twelve Months or More | 28,175 | 24,273 |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 78,833 | |
Twelve Months or More | 169,089 | 88,642 |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 1,065 | 8,193 |
Twelve Months or More | 24,677 | 18,691 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 53,935 | 138,807 |
Twelve Months or More | 166,324 | 80,281 |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 65,181 | |
Twelve Months or More | 238,470 | 189,912 |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 513,086 | |
Twelve Months or More | 1,314,903 | 823,467 |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 1,027 | 42,767 |
Twelve Months or More | 277,536 | 255,285 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 32,334 | 459,773 |
Twelve Months or More | 1,640,828 | 1,238,580 |
Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 1,187 | 30,284 |
Twelve Months or More | 62,130 | 39,380 |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 45,925 | 277,868 |
Twelve Months or More | 359,552 | 127,128 |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 2,650 | 21,450 |
Twelve Months or More | 95,513 | 85,842 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 73,464 | 274,082 |
Twelve Months or More | 517,948 | 326,963 |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 13,414 | 14,318 |
Twelve Months or More | 54,727 | 51,986 |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 57,771 | 82,895 |
Twelve Months or More | 235,050 | 213,387 |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 10,606 | 17,156 |
Twelve Months or More | 182,288 | 181,688 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 107,009 | 206,228 |
Twelve Months or More | 874,332 | 767,002 |
State and municipal obligations | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 4,250 | 97,084 |
Twelve Months or More | 167,606 | 108,799 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 74,784 | 616,631 |
Twelve Months or More | 888,984 | 391,848 |
Small Business Administration loan-backed securities | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Twelve Months or More | 10,958 | 12,225 |
Securities Held to Maturity, Fair Value | ||
Twelve Months or More | 45,322 | 44,862 |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 428 | 2,152 |
Twelve Months or More | 40,736 | 44,543 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 80,092 | 92,535 |
Twelve Months or More | 278,346 | 264,933 |
Corporate securities. | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 635 | 2,209 |
Twelve Months or More | 2,752 | 736 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 5,863 | 28,374 |
Twelve Months or More | $ 21,321 | $ 4,264 |
Securities - Securities Pledged
Securities - Securities Pledged as Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investment Securities | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 8,014,663 | $ 8,189,780 |
Asset Pledged as Collateral [Member] | ||
Investment Securities | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | 2,400,000 | 2,600,000 |
Asset Pledged as Collateral [Member] | Public Funds Deposits | ||
Investment Securities | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | 1,900,000 | 1,900,000 |
Asset Pledged as Collateral [Member] | FHLB Advances | ||
Investment Securities | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | 415,700 | 596,100 |
Asset Pledged as Collateral [Member] | Interest rate swap | ||
Investment Securities | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 113,200 | $ 114,900 |
Securities - Trading Securities
Securities - Trading Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investment Securities | ||
Trading securities | $ 16,039 | $ 31,263 |
U.S. Government agencies | ||
Investment Securities | ||
Trading securities | 3,925 | 11,190 |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Investment Securities | ||
Trading securities | 3,439 | |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Investment Securities | ||
Trading securities | 1,304 | 4,589 |
State and municipal obligations | ||
Investment Securities | ||
Trading securities | 7,122 | 13,993 |
Other debt securities | ||
Investment Securities | ||
Trading securities | $ 249 | $ 1,491 |
Securities - Net losses on trad
Securities - Net losses on trading securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2021 | |
Securities | ||
Net losses on sales transaction | $ (139) | $ (1,239) |
Net mark to mark losses | (6) | (1,976) |
Net losses on trading securities | $ (145) | $ (3,215) |
Loans - Summary of loans (Detai
Loans - Summary of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Summary of Loans | ||||
Total loans | $ 30,696,142 | $ 30,177,862 | ||
Less allowance for credit losses | (370,645) | (356,444) | $ (300,396) | $ (301,807) |
Loans, net | 30,325,497 | 29,821,418 | ||
Deferred costs | 55,300 | 49,700 | ||
Unamortized Discounts | 64,700 | 72,100 | ||
Interest Receivable | 109,400 | 105,400 | ||
Construction and land development | ||||
Summary of Loans | ||||
Total loans | 2,749,290 | 2,860,360 | ||
Commercial non-owner occupied | ||||
Summary of Loans | ||||
Total loans | 8,236,216 | 8,072,959 | ||
Consumer Owner Occupied Loans | ||||
Summary of Loans | ||||
Total loans | 5,528,546 | 5,162,042 | ||
Home equity loans | ||||
Summary of Loans | ||||
Total loans | 1,332,285 | 1,313,168 | ||
Commercial owner occupied real estate loan | ||||
Summary of Loans | ||||
Total loans | 5,522,514 | 5,460,193 | ||
Commercial and industrial | ||||
Summary of Loans | ||||
Total loans | 5,321,306 | 5,313,483 | ||
Other income producing property | ||||
Summary of Loans | ||||
Total loans | 721,291 | 696,242 | ||
Consumer loans | ||||
Summary of Loans | ||||
Total loans | 1,277,549 | 1,278,426 | ||
Other loans | ||||
Summary of Loans | ||||
Total loans | 7,145 | 20,989 | ||
Commercial loans | ||||
Summary of Loans | ||||
Total loans | 21,575,799 | 21,430,337 | ||
Commercial loans | Construction and land development | ||||
Summary of Loans | ||||
Total loans | 1,855,548 | 1,956,300 | ||
Commercial loans | Commercial non-owner occupied | ||||
Summary of Loans | ||||
Total loans | 8,236,216 | 8,072,959 | ||
Commercial loans | Commercial non-owner occupied real estate. | ||||
Summary of Loans | ||||
Total loans | 5,522,514 | 5,460,193 | ||
Commercial loans | Consumer Owner Occupied Loans | ||||
Summary of Loans | ||||
Total loans | 33,237 | 30,741 | ||
Commercial loans | Commercial owner occupied real estate loan | ||||
Summary of Loans | ||||
Total loans | 5,522,514 | 5,460,193 | ||
Commercial loans | Commercial and industrial | ||||
Summary of Loans | ||||
Total loans | 5,321,306 | 5,313,483 | ||
Commercial loans | Other income producing property | ||||
Summary of Loans | ||||
Total loans | 599,833 | 575,672 | ||
Commercial loans | Other loans | ||||
Summary of Loans | ||||
Total loans | 7,145 | 20,989 | ||
Consumer portfolio loans | ||||
Summary of Loans | ||||
Total loans | 9,120,343 | 8,747,525 | ||
Consumer portfolio loans | Construction and land development | ||||
Summary of Loans | ||||
Total loans | 893,742 | 904,060 | ||
Consumer portfolio loans | Consumer Owner Occupied Loans | ||||
Summary of Loans | ||||
Total loans | 5,495,309 | 5,131,301 | ||
Consumer portfolio loans | Home equity loans | ||||
Summary of Loans | ||||
Total loans | 1,332,285 | 1,313,168 | ||
Consumer portfolio loans | Other income producing property | ||||
Summary of Loans | ||||
Total loans | 121,458 | 120,570 | ||
Consumer portfolio loans | Consumer loans | ||||
Summary of Loans | ||||
Total loans | $ 1,277,549 | $ 1,278,426 |
Loans - Loans purchased through
Loans - Loans purchased through its acquisition of Atlantic Capital (Details) - Atlantic Capital $ in Thousands | Mar. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Book value of acquired loans at acquisition | $ 137,874 |
Allowance for credit losses at acquisition | (13,758) |
Non-credit discount at acquisition | (5,943) |
Carrying value or book value of acquired loans at acquisition | $ 118,173 |
Loans - Credit risk profile by
Loans - Credit risk profile by risk grade of commercial and consumer loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | $ 1,200,329 | $ 8,589,197 | |
Amortized Cost Basis by Origination Year - 2022 | 8,596,478 | 6,907,684 | |
Amortized Cost Basis by Origination Year - 2021 | 6,828,157 | 3,112,648 | |
Amortized Cost Basis by Origination Year - 2020 | 3,010,610 | 2,533,623 | |
Amortized Cost Basis by Origination Year - 2019 | 2,398,611 | 1,539,466 | |
Amortized Cost Basis by Origination Year - Prior | 5,396,828 | 4,173,570 | |
Amortized Cost Basis by Origination Year - Revolving | 3,265,129 | 3,321,674 | |
Total loans | 30,696,142 | 30,177,862 | |
Current-period gross charge-offs - 2023 | 890 | 291 | |
Current-period gross charge-offs - 2022 | 524 | 3,478 | |
Current-period gross charge-offs - 2021 | 311 | 556 | |
Current-period gross charge-offs - 2020 | 132 | 2,063 | |
Current-period gross charge-offs - 2019 | 249 | 2,299 | |
Current-period gross charge-offs - Prior | 526 | 4,842 | |
Current-period gross charge-offs - Revolving | 1,995 | 9,917 | |
Current-period gross charge-offs - Total | 4,627 | $ 5,490 | 23,446 |
30 days past due | |||
Loans | |||
Total loans | 51,733 | 68,416 | |
60 days past due | |||
Loans | |||
Total loans | 30,173 | 31,607 | |
90 days past due | |||
Loans | |||
Total loans | 3,650 | 4,350 | |
Construction and land development | |||
Loans | |||
Total loans | 2,749,290 | 2,860,360 | |
Construction and land development | 30 days past due | |||
Loans | |||
Total loans | 980 | 2,146 | |
Construction and land development | 60 days past due | |||
Loans | |||
Total loans | 4,050 | 3,653 | |
Commercial non-owner occupied | |||
Loans | |||
Total loans | 8,236,216 | 8,072,959 | |
Commercial non-owner occupied | 30 days past due | |||
Loans | |||
Total loans | 4,410 | 1,158 | |
Commercial non-owner occupied | 60 days past due | |||
Loans | |||
Total loans | 1,778 | 978 | |
Commercial non-owner occupied | 90 days past due | |||
Loans | |||
Total loans | 77 | ||
Commercial owner occupied real estate loan | |||
Loans | |||
Total loans | 5,522,514 | 5,460,193 | |
Commercial owner occupied real estate loan | 30 days past due | |||
Loans | |||
Total loans | 3,841 | 10,748 | |
Commercial owner occupied real estate loan | 60 days past due | |||
Loans | |||
Total loans | 4,552 | 2,059 | |
Commercial owner occupied real estate loan | 90 days past due | |||
Loans | |||
Total loans | 1,665 | 2,231 | |
Commercial and industrial | |||
Loans | |||
Total loans | 5,321,306 | 5,313,483 | |
Commercial and industrial | 30 days past due | |||
Loans | |||
Total loans | 21,931 | 24,500 | |
Commercial and industrial | 60 days past due | |||
Loans | |||
Total loans | 9,618 | 11,677 | |
Commercial and industrial | 90 days past due | |||
Loans | |||
Total loans | 1,837 | 1,704 | |
Other income producing property | |||
Loans | |||
Total loans | 721,291 | 696,242 | |
Other income producing property | 30 days past due | |||
Loans | |||
Total loans | 2,224 | 1,623 | |
Other income producing property | 60 days past due | |||
Loans | |||
Total loans | 156 | 1,480 | |
Other income producing property | 90 days past due | |||
Loans | |||
Total loans | 147 | 298 | |
Consumer Owner Occupied Loans | |||
Loans | |||
Total loans | 5,528,546 | 5,162,042 | |
Consumer Owner Occupied Loans | 30 days past due | |||
Loans | |||
Total loans | 2,521 | 6,001 | |
Consumer Owner Occupied Loans | 60 days past due | |||
Loans | |||
Total loans | 1,344 | 744 | |
Consumer Owner Occupied Loans | 90 days past due | |||
Loans | |||
Total loans | 40 | ||
Home equity loans | |||
Loans | |||
Total loans | 1,332,285 | 1,313,168 | |
Home equity loans | 30 days past due | |||
Loans | |||
Total loans | 2,811 | 2,527 | |
Home equity loans | 60 days past due | |||
Loans | |||
Total loans | 673 | 361 | |
Consumer loans | |||
Loans | |||
Total loans | 1,277,549 | 1,278,426 | |
Consumer loans | 30 days past due | |||
Loans | |||
Total loans | 13,015 | 19,713 | |
Consumer loans | 60 days past due | |||
Loans | |||
Total loans | 8,002 | 10,655 | |
Consumer loans | 90 days past due | |||
Loans | |||
Total loans | 1 | ||
Other loans | |||
Loans | |||
Total loans | 7,145 | 20,989 | |
Commercial loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 825,684 | 5,965,333 | |
Amortized Cost Basis by Origination Year - 2022 | 5,854,328 | 4,853,572 | |
Amortized Cost Basis by Origination Year - 2021 | 4,774,481 | 2,281,793 | |
Amortized Cost Basis by Origination Year - 2020 | 2,205,832 | 2,112,230 | |
Amortized Cost Basis by Origination Year - 2019 | 1,993,659 | 1,292,239 | |
Amortized Cost Basis by Origination Year - Prior | 4,192,766 | 3,156,201 | |
Amortized Cost Basis by Origination Year - Revolving | 1,729,049 | 1,768,969 | |
Total loans | 21,575,799 | 21,430,337 | |
Current-period gross charge-offs - 2023 | 2 | 12 | |
Current-period gross charge-offs - 2022 | 1,097 | 2,825 | |
Current-period gross charge-offs - 2021 | 211 | 198 | |
Current-period gross charge-offs - 2020 | 14 | 1,773 | |
Current-period gross charge-offs - 2019 | 149 | 2,214 | |
Current-period gross charge-offs - Prior | 280 | 3,828 | |
Current-period gross charge-offs - Revolving | 104 | 1,792 | |
Current-period gross charge-offs - Total | 1,857 | 12,642 | |
Commercial loans | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 815,860 | 5,911,188 | |
Amortized Cost Basis by Origination Year - 2022 | 5,805,698 | 4,719,732 | |
Amortized Cost Basis by Origination Year - 2021 | 4,640,950 | 2,245,766 | |
Amortized Cost Basis by Origination Year - 2020 | 2,160,178 | 2,053,868 | |
Amortized Cost Basis by Origination Year - 2019 | 1,929,180 | 1,227,113 | |
Amortized Cost Basis by Origination Year - Prior | 3,962,901 | 2,968,415 | |
Amortized Cost Basis by Origination Year - Revolving | 1,656,465 | 1,698,688 | |
Total loans | 20,971,232 | 20,824,770 | |
Commercial loans | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,050 | 20,216 | |
Amortized Cost Basis by Origination Year - 2022 | 22,876 | 35,235 | |
Amortized Cost Basis by Origination Year - 2021 | 31,956 | 9,381 | |
Amortized Cost Basis by Origination Year - 2020 | 17,557 | 21,567 | |
Amortized Cost Basis by Origination Year - 2019 | 32,391 | 42,014 | |
Amortized Cost Basis by Origination Year - Prior | 113,821 | 73,870 | |
Amortized Cost Basis by Origination Year - Revolving | 26,210 | 33,035 | |
Total loans | 245,861 | 235,318 | |
Commercial loans | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 8,773 | 33,528 | |
Amortized Cost Basis by Origination Year - 2022 | 25,355 | 98,604 | |
Amortized Cost Basis by Origination Year - 2021 | 101,557 | 26,645 | |
Amortized Cost Basis by Origination Year - 2020 | 28,095 | 36,716 | |
Amortized Cost Basis by Origination Year - 2019 | 32,088 | 22,956 | |
Amortized Cost Basis by Origination Year - Prior | 116,011 | 113,348 | |
Amortized Cost Basis by Origination Year - Revolving | 46,372 | 37,244 | |
Total loans | 358,251 | 369,041 | |
Commercial loans | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1 | 401 | |
Amortized Cost Basis by Origination Year - 2022 | 399 | 1 | |
Amortized Cost Basis by Origination Year - 2021 | 18 | 1 | |
Amortized Cost Basis by Origination Year - 2020 | 2 | 79 | |
Amortized Cost Basis by Origination Year - 2019 | 156 | ||
Amortized Cost Basis by Origination Year - Prior | 33 | 568 | |
Amortized Cost Basis by Origination Year - Revolving | 2 | 2 | |
Total loans | 455 | 1,208 | |
Commercial loans | Construction and land development | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 67,497 | 877,608 | |
Amortized Cost Basis by Origination Year - 2022 | 900,190 | 754,382 | |
Amortized Cost Basis by Origination Year - 2021 | 604,200 | 135,275 | |
Amortized Cost Basis by Origination Year - 2020 | 109,760 | 65,841 | |
Amortized Cost Basis by Origination Year - 2019 | 55,635 | 21,740 | |
Amortized Cost Basis by Origination Year - Prior | 43,127 | 35,798 | |
Amortized Cost Basis by Origination Year - Revolving | 75,139 | 65,656 | |
Total loans | 1,855,548 | 1,956,300 | |
Commercial loans | Construction and land development | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 65,979 | 875,751 | |
Amortized Cost Basis by Origination Year - 2022 | 898,029 | 742,985 | |
Amortized Cost Basis by Origination Year - 2021 | 602,843 | 134,996 | |
Amortized Cost Basis by Origination Year - 2020 | 109,487 | 63,439 | |
Amortized Cost Basis by Origination Year - 2019 | 34,046 | 14,521 | |
Amortized Cost Basis by Origination Year - Prior | 33,860 | 29,442 | |
Amortized Cost Basis by Origination Year - Revolving | 75,139 | 65,656 | |
Total loans | 1,819,383 | 1,926,790 | |
Commercial loans | Construction and land development | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,643 | ||
Amortized Cost Basis by Origination Year - 2022 | 2,022 | 988 | |
Amortized Cost Basis by Origination Year - 2021 | 1,193 | 268 | |
Amortized Cost Basis by Origination Year - 2020 | 264 | 76 | |
Amortized Cost Basis by Origination Year - 2019 | 20,255 | 7,219 | |
Amortized Cost Basis by Origination Year - Prior | 7,671 | 2,068 | |
Total loans | 31,405 | 12,262 | |
Commercial loans | Construction and land development | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,518 | 214 | |
Amortized Cost Basis by Origination Year - 2022 | 139 | 10,409 | |
Amortized Cost Basis by Origination Year - 2021 | 164 | 11 | |
Amortized Cost Basis by Origination Year - 2020 | 9 | 2,326 | |
Amortized Cost Basis by Origination Year - 2019 | 1,334 | ||
Amortized Cost Basis by Origination Year - Prior | 1,590 | 4,282 | |
Total loans | 4,754 | 17,242 | |
Commercial loans | Construction and land development | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - Prior | 6 | 6 | |
Total loans | 6 | 6 | |
Commercial loans | Commercial non-owner occupied | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 147,181 | 2,266,778 | |
Amortized Cost Basis by Origination Year - 2022 | 2,354,196 | 1,878,862 | |
Amortized Cost Basis by Origination Year - 2021 | 2,003,846 | 818,336 | |
Amortized Cost Basis by Origination Year - 2020 | 812,905 | 980,205 | |
Amortized Cost Basis by Origination Year - 2019 | 908,393 | 536,889 | |
Amortized Cost Basis by Origination Year - Prior | 1,920,202 | 1,475,873 | |
Amortized Cost Basis by Origination Year - Revolving | 89,493 | 116,016 | |
Total loans | 8,236,216 | 8,072,959 | |
Current-period gross charge-offs - 2023 | 8 | ||
Current-period gross charge-offs - 2021 | 51 | ||
Current-period gross charge-offs - Prior | 360 | ||
Current-period gross charge-offs - Total | 51 | 368 | |
Commercial loans | Commercial non-owner occupied | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 144,211 | 2,245,943 | |
Amortized Cost Basis by Origination Year - 2022 | 2,339,057 | 1,849,079 | |
Amortized Cost Basis by Origination Year - 2021 | 1,964,957 | 816,791 | |
Amortized Cost Basis by Origination Year - 2020 | 799,333 | 959,707 | |
Amortized Cost Basis by Origination Year - 2019 | 892,806 | 506,350 | |
Amortized Cost Basis by Origination Year - Prior | 1,834,435 | 1,417,397 | |
Amortized Cost Basis by Origination Year - Revolving | 89,240 | 108,759 | |
Total loans | 8,064,039 | 7,904,026 | |
Commercial loans | Commercial non-owner occupied | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 95 | 7,579 | |
Amortized Cost Basis by Origination Year - 2022 | 9,442 | 4,225 | |
Amortized Cost Basis by Origination Year - 2021 | 708 | 936 | |
Amortized Cost Basis by Origination Year - 2020 | 12,167 | 11,036 | |
Amortized Cost Basis by Origination Year - 2019 | 5,423 | 24,067 | |
Amortized Cost Basis by Origination Year - Prior | 60,130 | 32,110 | |
Amortized Cost Basis by Origination Year - Revolving | 5,000 | ||
Total loans | 87,965 | 84,953 | |
Commercial loans | Commercial non-owner occupied | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 2,875 | 13,256 | |
Amortized Cost Basis by Origination Year - 2022 | 5,697 | 25,557 | |
Amortized Cost Basis by Origination Year - 2021 | 38,180 | 609 | |
Amortized Cost Basis by Origination Year - 2020 | 1,405 | 9,383 | |
Amortized Cost Basis by Origination Year - 2019 | 10,164 | 6,472 | |
Amortized Cost Basis by Origination Year - Prior | 25,637 | 26,366 | |
Amortized Cost Basis by Origination Year - Revolving | 253 | 2,257 | |
Total loans | 84,211 | 83,900 | |
Commercial loans | Commercial non-owner occupied | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2022 | 1 | ||
Amortized Cost Basis by Origination Year - 2021 | 1 | ||
Amortized Cost Basis by Origination Year - 2020 | 79 | ||
Total loans | 1 | 80 | |
Commercial loans | Commercial owner occupied real estate loan | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 167,506 | 1,063,043 | |
Amortized Cost Basis by Origination Year - 2022 | 1,070,977 | 1,195,762 | |
Amortized Cost Basis by Origination Year - 2021 | 1,214,311 | 748,386 | |
Amortized Cost Basis by Origination Year - 2020 | 735,903 | 734,105 | |
Amortized Cost Basis by Origination Year - 2019 | 719,397 | 463,144 | |
Amortized Cost Basis by Origination Year - Prior | 1,543,263 | 1,178,058 | |
Amortized Cost Basis by Origination Year - Revolving | 71,157 | 77,695 | |
Total loans | 5,522,514 | 5,460,193 | |
Current-period gross charge-offs - 2020 | 1,143 | ||
Current-period gross charge-offs - Prior | 833 | ||
Current-period gross charge-offs - Total | 1,976 | ||
Commercial loans | Commercial owner occupied real estate loan | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 165,248 | 1,046,562 | |
Amortized Cost Basis by Origination Year - 2022 | 1,052,756 | 1,136,289 | |
Amortized Cost Basis by Origination Year - 2021 | 1,154,709 | 725,040 | |
Amortized Cost Basis by Origination Year - 2020 | 712,735 | 709,669 | |
Amortized Cost Basis by Origination Year - 2019 | 702,606 | 446,497 | |
Amortized Cost Basis by Origination Year - Prior | 1,437,016 | 1,080,522 | |
Amortized Cost Basis by Origination Year - Revolving | 70,057 | 75,506 | |
Total loans | 5,295,127 | 5,220,085 | |
Commercial loans | Commercial owner occupied real estate loan | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 342 | 3,620 | |
Amortized Cost Basis by Origination Year - 2022 | 3,576 | 25,263 | |
Amortized Cost Basis by Origination Year - 2021 | 24,689 | 3,383 | |
Amortized Cost Basis by Origination Year - 2020 | 3,285 | 7,934 | |
Amortized Cost Basis by Origination Year - 2019 | 4,397 | 7,160 | |
Amortized Cost Basis by Origination Year - Prior | 37,842 | 34,724 | |
Amortized Cost Basis by Origination Year - Revolving | 1,020 | 1,294 | |
Total loans | 75,151 | 83,378 | |
Commercial loans | Commercial owner occupied real estate loan | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,916 | 12,861 | |
Amortized Cost Basis by Origination Year - 2022 | 14,645 | 34,210 | |
Amortized Cost Basis by Origination Year - 2021 | 34,913 | 19,962 | |
Amortized Cost Basis by Origination Year - 2020 | 19,882 | 16,502 | |
Amortized Cost Basis by Origination Year - 2019 | 12,394 | 9,487 | |
Amortized Cost Basis by Origination Year - Prior | 68,401 | 62,808 | |
Amortized Cost Basis by Origination Year - Revolving | 80 | 895 | |
Total loans | 152,231 | 156,725 | |
Commercial loans | Commercial owner occupied real estate loan | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2021 | 1 | ||
Amortized Cost Basis by Origination Year - 2020 | 1 | ||
Amortized Cost Basis by Origination Year - Prior | 4 | 4 | |
Total loans | 5 | 5 | |
Commercial loans | Commercial and industrial | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 420,087 | 1,578,396 | |
Amortized Cost Basis by Origination Year - 2022 | 1,359,889 | 927,124 | |
Amortized Cost Basis by Origination Year - 2021 | 839,394 | 514,826 | |
Amortized Cost Basis by Origination Year - 2020 | 484,589 | 282,896 | |
Amortized Cost Basis by Origination Year - 2019 | 261,737 | 222,838 | |
Amortized Cost Basis by Origination Year - Prior | 532,602 | 343,500 | |
Amortized Cost Basis by Origination Year - Revolving | 1,423,008 | 1,443,903 | |
Total loans | 5,321,306 | 5,313,483 | |
Current-period gross charge-offs - 2023 | 2 | 4 | |
Current-period gross charge-offs - 2022 | 1,097 | 2,825 | |
Current-period gross charge-offs - 2021 | 160 | 198 | |
Current-period gross charge-offs - 2020 | 14 | 630 | |
Current-period gross charge-offs - 2019 | 149 | 2,214 | |
Current-period gross charge-offs - Prior | 280 | 2,589 | |
Current-period gross charge-offs - Revolving | 104 | 1,742 | |
Current-period gross charge-offs - Total | 1,806 | 10,202 | |
Commercial loans | Commercial and industrial | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 417,089 | 1,566,203 | |
Amortized Cost Basis by Origination Year - 2022 | 1,349,157 | 895,368 | |
Amortized Cost Basis by Origination Year - 2021 | 807,583 | 506,655 | |
Amortized Cost Basis by Origination Year - 2020 | 478,312 | 274,446 | |
Amortized Cost Basis by Origination Year - 2019 | 253,680 | 212,522 | |
Amortized Cost Basis by Origination Year - Prior | 514,686 | 333,286 | |
Amortized Cost Basis by Origination Year - Revolving | 1,354,618 | 1,386,678 | |
Total loans | 5,175,125 | 5,175,158 | |
Commercial loans | Commercial and industrial | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 533 | 5,885 | |
Amortized Cost Basis by Origination Year - 2022 | 6,705 | 3,782 | |
Amortized Cost Basis by Origination Year - 2021 | 4,488 | 3,401 | |
Amortized Cost Basis by Origination Year - 2020 | 702 | 1,859 | |
Amortized Cost Basis by Origination Year - 2019 | 1,698 | 3,378 | |
Amortized Cost Basis by Origination Year - Prior | 4,791 | 1,316 | |
Amortized Cost Basis by Origination Year - Revolving | 23,114 | 24,347 | |
Total loans | 42,031 | 43,968 | |
Commercial loans | Commercial and industrial | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 2,464 | 6,308 | |
Amortized Cost Basis by Origination Year - 2022 | 4,025 | 27,974 | |
Amortized Cost Basis by Origination Year - 2021 | 27,306 | 4,770 | |
Amortized Cost Basis by Origination Year - 2020 | 5,574 | 6,591 | |
Amortized Cost Basis by Origination Year - 2019 | 6,359 | 6,783 | |
Amortized Cost Basis by Origination Year - Prior | 13,109 | 8,476 | |
Amortized Cost Basis by Origination Year - Revolving | 45,274 | 32,876 | |
Total loans | 104,111 | 93,778 | |
Commercial loans | Commercial and industrial | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1 | ||
Amortized Cost Basis by Origination Year - 2022 | 2 | ||
Amortized Cost Basis by Origination Year - 2021 | 17 | ||
Amortized Cost Basis by Origination Year - 2020 | 1 | ||
Amortized Cost Basis by Origination Year - 2019 | 155 | ||
Amortized Cost Basis by Origination Year - Prior | 16 | 422 | |
Amortized Cost Basis by Origination Year - Revolving | 2 | 2 | |
Total loans | 39 | 579 | |
Commercial loans | Other income producing property | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 14,919 | 152,022 | |
Amortized Cost Basis by Origination Year - 2022 | 163,801 | 94,203 | |
Amortized Cost Basis by Origination Year - 2021 | 109,500 | 63,011 | |
Amortized Cost Basis by Origination Year - 2020 | 59,892 | 46,867 | |
Amortized Cost Basis by Origination Year - 2019 | 46,233 | 47,559 | |
Amortized Cost Basis by Origination Year - Prior | 152,911 | 122,438 | |
Amortized Cost Basis by Origination Year - Revolving | 52,577 | 49,572 | |
Total loans | 599,833 | 575,672 | |
Current-period gross charge-offs - Prior | 46 | ||
Current-period gross charge-offs - Revolving | 50 | ||
Current-period gross charge-offs - Total | 96 | ||
Commercial loans | Other income producing property | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 14,839 | 149,793 | |
Amortized Cost Basis by Origination Year - 2022 | 161,959 | 92,887 | |
Amortized Cost Basis by Origination Year - 2021 | 107,741 | 60,473 | |
Amortized Cost Basis by Origination Year - 2020 | 58,591 | 46,189 | |
Amortized Cost Basis by Origination Year - 2019 | 45,660 | 47,155 | |
Amortized Cost Basis by Origination Year - Prior | 142,437 | 107,436 | |
Amortized Cost Basis by Origination Year - Revolving | 49,887 | 46,179 | |
Total loans | 581,114 | 550,112 | |
Commercial loans | Other income producing property | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 80 | 952 | |
Amortized Cost Basis by Origination Year - 2022 | 603 | 957 | |
Amortized Cost Basis by Origination Year - 2021 | 859 | 1,257 | |
Amortized Cost Basis by Origination Year - 2020 | 1,007 | 378 | |
Amortized Cost Basis by Origination Year - 2019 | 337 | 190 | |
Amortized Cost Basis by Origination Year - Prior | 3,387 | 3,652 | |
Amortized Cost Basis by Origination Year - Revolving | 2,076 | 2,328 | |
Total loans | 8,349 | 9,714 | |
Commercial loans | Other income producing property | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 876 | ||
Amortized Cost Basis by Origination Year - 2022 | 842 | 359 | |
Amortized Cost Basis by Origination Year - 2021 | 900 | 1,281 | |
Amortized Cost Basis by Origination Year - 2020 | 294 | 300 | |
Amortized Cost Basis by Origination Year - 2019 | 236 | 214 | |
Amortized Cost Basis by Origination Year - Prior | 7,081 | 11,214 | |
Amortized Cost Basis by Origination Year - Revolving | 614 | 1,065 | |
Total loans | 9,967 | 15,309 | |
Commercial loans | Other income producing property | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 401 | ||
Amortized Cost Basis by Origination Year - 2022 | 397 | ||
Amortized Cost Basis by Origination Year - Prior | 6 | 136 | |
Total loans | 403 | 537 | |
Commercial loans | Consumer Owner Occupied Loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,349 | 6,497 | |
Amortized Cost Basis by Origination Year - 2022 | 5,275 | 3,239 | |
Amortized Cost Basis by Origination Year - 2021 | 3,230 | 1,959 | |
Amortized Cost Basis by Origination Year - 2020 | 2,783 | 2,316 | |
Amortized Cost Basis by Origination Year - 2019 | 2,264 | 69 | |
Amortized Cost Basis by Origination Year - Prior | 661 | 534 | |
Amortized Cost Basis by Origination Year - Revolving | 17,675 | 16,127 | |
Total loans | 33,237 | 30,741 | |
Commercial loans | Consumer Owner Occupied Loans | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,349 | 5,947 | |
Amortized Cost Basis by Origination Year - 2022 | 4,740 | 3,124 | |
Amortized Cost Basis by Origination Year - 2021 | 3,117 | 1,811 | |
Amortized Cost Basis by Origination Year - 2020 | 1,720 | 418 | |
Amortized Cost Basis by Origination Year - 2019 | 382 | 68 | |
Amortized Cost Basis by Origination Year - Prior | 467 | 332 | |
Amortized Cost Basis by Origination Year - Revolving | 17,524 | 15,910 | |
Total loans | 29,299 | 27,610 | |
Commercial loans | Consumer Owner Occupied Loans | Special mention | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 537 | ||
Amortized Cost Basis by Origination Year - 2022 | 528 | 20 | |
Amortized Cost Basis by Origination Year - 2021 | 19 | 136 | |
Amortized Cost Basis by Origination Year - 2020 | 132 | 284 | |
Amortized Cost Basis by Origination Year - 2019 | 281 | ||
Amortized Cost Basis by Origination Year - Revolving | 66 | ||
Total loans | 960 | 1,043 | |
Commercial loans | Consumer Owner Occupied Loans | Substandard | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 13 | ||
Amortized Cost Basis by Origination Year - 2022 | 7 | 95 | |
Amortized Cost Basis by Origination Year - 2021 | 94 | 12 | |
Amortized Cost Basis by Origination Year - 2020 | 931 | 1,614 | |
Amortized Cost Basis by Origination Year - 2019 | 1,601 | ||
Amortized Cost Basis by Origination Year - Prior | 193 | 202 | |
Amortized Cost Basis by Origination Year - Revolving | 151 | 151 | |
Total loans | 2,977 | 2,087 | |
Commercial loans | Consumer Owner Occupied Loans | Doubtful | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2019 | 1 | ||
Amortized Cost Basis by Origination Year - Prior | 1 | ||
Total loans | 1 | 1 | |
Commercial loans | Other loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 7,145 | 20,989 | |
Total loans | 7,145 | 20,989 | |
Commercial loans | Other loans | Pass | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 7,145 | 20,989 | |
Total loans | 7,145 | 20,989 | |
Consumer portfolio loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 374,645 | 2,623,864 | |
Amortized Cost Basis by Origination Year - 2022 | 2,742,150 | 2,054,112 | |
Amortized Cost Basis by Origination Year - 2021 | 2,053,676 | 830,855 | |
Amortized Cost Basis by Origination Year - 2020 | 804,778 | 421,393 | |
Amortized Cost Basis by Origination Year - 2019 | 404,952 | 247,227 | |
Amortized Cost Basis by Origination Year - Prior | 1,204,062 | 1,017,369 | |
Amortized Cost Basis by Origination Year - Revolving | 1,536,080 | 1,552,705 | |
Total loans | 9,120,343 | 8,747,525 | |
Current-period gross charge-offs - 2023 | 20 | 279 | |
Current-period gross charge-offs - 2022 | 295 | 653 | |
Current-period gross charge-offs - 2021 | 100 | 358 | |
Current-period gross charge-offs - 2020 | 118 | 290 | |
Current-period gross charge-offs - 2019 | 100 | 85 | |
Current-period gross charge-offs - Prior | 246 | 1,014 | |
Current-period gross charge-offs - Revolving | 1,891 | 8,125 | |
Current-period gross charge-offs - Total | 2,770 | 10,804 | |
Consumer portfolio loans | Current due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 374,645 | 2,621,392 | |
Amortized Cost Basis by Origination Year - 2022 | 2,739,197 | 2,051,220 | |
Amortized Cost Basis by Origination Year - 2021 | 2,052,154 | 826,906 | |
Amortized Cost Basis by Origination Year - 2020 | 802,813 | 419,742 | |
Amortized Cost Basis by Origination Year - 2019 | 403,035 | 245,166 | |
Amortized Cost Basis by Origination Year - Prior | 1,192,480 | 1,005,834 | |
Amortized Cost Basis by Origination Year - Revolving | 1,512,723 | 1,522,165 | |
Total loans | 9,077,047 | 8,692,425 | |
Consumer portfolio loans | 30 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 2,036 | ||
Amortized Cost Basis by Origination Year - 2022 | 1,288 | 1,448 | |
Amortized Cost Basis by Origination Year - 2021 | 900 | 1,914 | |
Amortized Cost Basis by Origination Year - 2020 | 360 | 972 | |
Amortized Cost Basis by Origination Year - 2019 | 868 | 776 | |
Amortized Cost Basis by Origination Year - Prior | 5,029 | 3,810 | |
Amortized Cost Basis by Origination Year - Revolving | 13,476 | 19,057 | |
Total loans | 21,921 | 30,013 | |
Consumer portfolio loans | 60 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 310 | ||
Amortized Cost Basis by Origination Year - 2022 | 533 | 440 | |
Amortized Cost Basis by Origination Year - 2021 | 116 | 705 | |
Amortized Cost Basis by Origination Year - 2020 | 691 | 72 | |
Amortized Cost Basis by Origination Year - 2019 | 55 | 456 | |
Amortized Cost Basis by Origination Year - Prior | 1,301 | 2,256 | |
Amortized Cost Basis by Origination Year - Revolving | 8,025 | 10,376 | |
Total loans | 10,721 | 14,615 | |
Consumer portfolio loans | 90 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 126 | ||
Amortized Cost Basis by Origination Year - 2022 | 1,132 | 1,004 | |
Amortized Cost Basis by Origination Year - 2021 | 506 | 1,330 | |
Amortized Cost Basis by Origination Year - 2020 | 914 | 607 | |
Amortized Cost Basis by Origination Year - 2019 | 994 | 829 | |
Amortized Cost Basis by Origination Year - Prior | 5,252 | 5,469 | |
Amortized Cost Basis by Origination Year - Revolving | 1,856 | 1,107 | |
Total loans | 10,654 | 10,472 | |
Consumer portfolio loans | Construction and land development | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 20,979 | 466,477 | |
Amortized Cost Basis by Origination Year - 2022 | 554,952 | 351,485 | |
Amortized Cost Basis by Origination Year - 2021 | 251,650 | 50,908 | |
Amortized Cost Basis by Origination Year - 2020 | 35,833 | 14,110 | |
Amortized Cost Basis by Origination Year - 2019 | 11,006 | 7,029 | |
Amortized Cost Basis by Origination Year - Prior | 18,707 | 13,672 | |
Amortized Cost Basis by Origination Year - Revolving | 615 | 379 | |
Total loans | 893,742 | 904,060 | |
Current-period gross charge-offs - 2021 | 21 | ||
Current-period gross charge-offs - Prior | 4 | ||
Current-period gross charge-offs - Total | 25 | ||
Consumer portfolio loans | Construction and land development | Current due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 20,979 | 466,475 | |
Amortized Cost Basis by Origination Year - 2022 | 554,627 | 351,485 | |
Amortized Cost Basis by Origination Year - 2021 | 251,650 | 50,472 | |
Amortized Cost Basis by Origination Year - 2020 | 35,810 | 14,053 | |
Amortized Cost Basis by Origination Year - 2019 | 11,006 | 7,006 | |
Amortized Cost Basis by Origination Year - Prior | 18,336 | 13,588 | |
Amortized Cost Basis by Origination Year - Revolving | 615 | 379 | |
Total loans | 893,023 | 903,458 | |
Consumer portfolio loans | Construction and land development | 30 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 2 | ||
Amortized Cost Basis by Origination Year - 2022 | 325 | ||
Amortized Cost Basis by Origination Year - 2020 | 57 | ||
Amortized Cost Basis by Origination Year - 2019 | 23 | ||
Amortized Cost Basis by Origination Year - Prior | 279 | 43 | |
Total loans | 604 | 125 | |
Consumer portfolio loans | Construction and land development | 60 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2020 | 22 | ||
Amortized Cost Basis by Origination Year - Prior | 92 | ||
Total loans | 114 | ||
Consumer portfolio loans | Construction and land development | 90 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2021 | 436 | ||
Amortized Cost Basis by Origination Year - 2020 | 1 | ||
Amortized Cost Basis by Origination Year - Prior | 41 | ||
Total loans | 1 | 477 | |
Consumer portfolio loans | Other income producing property | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 3,664 | 45,717 | |
Amortized Cost Basis by Origination Year - 2022 | 45,269 | 21,421 | |
Amortized Cost Basis by Origination Year - 2021 | 20,833 | 4,937 | |
Amortized Cost Basis by Origination Year - 2020 | 4,812 | 2,663 | |
Amortized Cost Basis by Origination Year - 2019 | 2,624 | 4,322 | |
Amortized Cost Basis by Origination Year - Prior | 43,652 | 40,886 | |
Amortized Cost Basis by Origination Year - Revolving | 604 | 624 | |
Total loans | 121,458 | 120,570 | |
Consumer portfolio loans | Other income producing property | Current due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 3,664 | 45,717 | |
Amortized Cost Basis by Origination Year - 2022 | 45,269 | 21,421 | |
Amortized Cost Basis by Origination Year - 2021 | 20,833 | 4,937 | |
Amortized Cost Basis by Origination Year - 2020 | 4,812 | 2,663 | |
Amortized Cost Basis by Origination Year - 2019 | 2,624 | 4,322 | |
Amortized Cost Basis by Origination Year - Prior | 43,104 | 40,680 | |
Amortized Cost Basis by Origination Year - Revolving | 604 | 624 | |
Total loans | 120,910 | 120,364 | |
Consumer portfolio loans | Other income producing property | 30 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - Prior | 292 | 62 | |
Total loans | 292 | 62 | |
Consumer portfolio loans | Other income producing property | 60 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - Prior | 23 | ||
Total loans | 23 | ||
Consumer portfolio loans | Other income producing property | 90 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - Prior | 256 | 121 | |
Total loans | 256 | 121 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 240,632 | 1,697,025 | |
Amortized Cost Basis by Origination Year - 2022 | 1,749,909 | 1,469,615 | |
Amortized Cost Basis by Origination Year - 2021 | 1,588,097 | 660,041 | |
Amortized Cost Basis by Origination Year - 2020 | 659,590 | 316,576 | |
Amortized Cost Basis by Origination Year - 2019 | 310,973 | 188,758 | |
Amortized Cost Basis by Origination Year - Prior | 946,108 | 799,286 | |
Total loans | 5,495,309 | 5,131,301 | |
Current-period gross charge-offs - 2023 | 25 | ||
Current-period gross charge-offs - 2020 | 6 | ||
Current-period gross charge-offs - 2019 | 23 | ||
Current-period gross charge-offs - Prior | 2 | 66 | |
Current-period gross charge-offs - Total | 2 | 120 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | Current due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 240,632 | 1,695,454 | |
Amortized Cost Basis by Origination Year - 2022 | 1,748,552 | 1,467,080 | |
Amortized Cost Basis by Origination Year - 2021 | 1,587,281 | 657,005 | |
Amortized Cost Basis by Origination Year - 2020 | 657,794 | 315,458 | |
Amortized Cost Basis by Origination Year - 2019 | 309,618 | 187,580 | |
Amortized Cost Basis by Origination Year - Prior | 939,645 | 792,572 | |
Total loans | 5,483,522 | 5,115,149 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | 30 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 1,316 | ||
Amortized Cost Basis by Origination Year - 2022 | 438 | 1,254 | |
Amortized Cost Basis by Origination Year - 2021 | 451 | 1,681 | |
Amortized Cost Basis by Origination Year - 2020 | 323 | 664 | |
Amortized Cost Basis by Origination Year - 2019 | 672 | 272 | |
Amortized Cost Basis by Origination Year - Prior | 2,242 | 2,028 | |
Total loans | 4,126 | 7,215 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | 60 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 255 | ||
Amortized Cost Basis by Origination Year - 2022 | 243 | 337 | |
Amortized Cost Basis by Origination Year - 2021 | 97 | 579 | |
Amortized Cost Basis by Origination Year - 2020 | 620 | ||
Amortized Cost Basis by Origination Year - 2019 | 242 | ||
Amortized Cost Basis by Origination Year - Prior | 746 | 1,650 | |
Total loans | 1,706 | 3,063 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | 90 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2022 | 676 | 944 | |
Amortized Cost Basis by Origination Year - 2021 | 268 | 776 | |
Amortized Cost Basis by Origination Year - 2020 | 853 | 454 | |
Amortized Cost Basis by Origination Year - 2019 | 683 | 664 | |
Amortized Cost Basis by Origination Year - Prior | 3,475 | 3,036 | |
Total loans | 5,955 | 5,874 | |
Consumer portfolio loans | Home equity loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 4,563 | 5,921 | |
Amortized Cost Basis by Origination Year - 2022 | 7,416 | 5,231 | |
Amortized Cost Basis by Origination Year - 2021 | 5,529 | 3,516 | |
Amortized Cost Basis by Origination Year - 2020 | 3,754 | 1,760 | |
Amortized Cost Basis by Origination Year - 2019 | 1,507 | 2,443 | |
Amortized Cost Basis by Origination Year - Prior | 19,118 | 19,000 | |
Amortized Cost Basis by Origination Year - Revolving | 1,290,398 | 1,275,297 | |
Total loans | 1,332,285 | 1,313,168 | |
Current-period gross charge-offs - 2020 | 39 | 19 | |
Current-period gross charge-offs - Prior | 280 | ||
Current-period gross charge-offs - Revolving | 146 | ||
Current-period gross charge-offs - Total | 39 | 445 | |
Consumer portfolio loans | Home equity loans | Current due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 4,563 | 5,921 | |
Amortized Cost Basis by Origination Year - 2022 | 7,084 | 5,231 | |
Amortized Cost Basis by Origination Year - 2021 | 5,367 | 3,282 | |
Amortized Cost Basis by Origination Year - 2020 | 3,733 | 1,560 | |
Amortized Cost Basis by Origination Year - 2019 | 1,141 | 1,955 | |
Amortized Cost Basis by Origination Year - Prior | 17,773 | 17,941 | |
Amortized Cost Basis by Origination Year - Revolving | 1,287,131 | 1,272,848 | |
Total loans | 1,326,792 | 1,308,738 | |
Consumer portfolio loans | Home equity loans | 30 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2022 | 273 | ||
Amortized Cost Basis by Origination Year - 2021 | 155 | ||
Amortized Cost Basis by Origination Year - 2020 | 77 | ||
Amortized Cost Basis by Origination Year - 2019 | 89 | 418 | |
Amortized Cost Basis by Origination Year - Prior | 1,003 | 422 | |
Amortized Cost Basis by Origination Year - Revolving | 2,424 | 1,586 | |
Total loans | 3,789 | 2,658 | |
Consumer portfolio loans | Home equity loans | 60 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2022 | 59 | ||
Amortized Cost Basis by Origination Year - 2021 | 19 | ||
Amortized Cost Basis by Origination Year - 2020 | 36 | ||
Amortized Cost Basis by Origination Year - 2019 | 70 | ||
Amortized Cost Basis by Origination Year - Prior | 221 | 26 | |
Amortized Cost Basis by Origination Year - Revolving | 494 | 540 | |
Total loans | 774 | 691 | |
Consumer portfolio loans | Home equity loans | 90 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2021 | 162 | 60 | |
Amortized Cost Basis by Origination Year - 2020 | 21 | 87 | |
Amortized Cost Basis by Origination Year - 2019 | 277 | ||
Amortized Cost Basis by Origination Year - Prior | 121 | 611 | |
Amortized Cost Basis by Origination Year - Revolving | 349 | 323 | |
Total loans | 930 | 1,081 | |
Consumer portfolio loans | Consumer loans | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 104,807 | 408,724 | |
Amortized Cost Basis by Origination Year - 2022 | 384,604 | 206,360 | |
Amortized Cost Basis by Origination Year - 2021 | 187,567 | 111,453 | |
Amortized Cost Basis by Origination Year - 2020 | 100,789 | 86,284 | |
Amortized Cost Basis by Origination Year - 2019 | 78,842 | 44,675 | |
Amortized Cost Basis by Origination Year - Prior | 176,477 | 144,525 | |
Amortized Cost Basis by Origination Year - Revolving | 244,463 | 276,405 | |
Total loans | 1,277,549 | 1,278,426 | |
Current-period gross charge-offs - 2023 | 20 | 254 | |
Current-period gross charge-offs - 2022 | 295 | 653 | |
Current-period gross charge-offs - 2021 | 100 | 337 | |
Current-period gross charge-offs - 2020 | 79 | 265 | |
Current-period gross charge-offs - 2019 | 100 | 62 | |
Current-period gross charge-offs - Prior | 244 | 664 | |
Current-period gross charge-offs - Revolving | 1,891 | 7,979 | |
Current-period gross charge-offs - Total | 2,729 | 10,214 | |
Consumer portfolio loans | Consumer loans | Current due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 104,807 | 407,825 | |
Amortized Cost Basis by Origination Year - 2022 | 383,665 | 206,003 | |
Amortized Cost Basis by Origination Year - 2021 | 187,023 | 111,210 | |
Amortized Cost Basis by Origination Year - 2020 | 100,664 | 86,008 | |
Amortized Cost Basis by Origination Year - 2019 | 78,646 | 44,303 | |
Amortized Cost Basis by Origination Year - Prior | 173,622 | 141,053 | |
Amortized Cost Basis by Origination Year - Revolving | 224,373 | 248,314 | |
Total loans | 1,252,800 | 1,244,716 | |
Consumer portfolio loans | Consumer loans | 30 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 718 | ||
Amortized Cost Basis by Origination Year - 2022 | 252 | 194 | |
Amortized Cost Basis by Origination Year - 2021 | 449 | 78 | |
Amortized Cost Basis by Origination Year - 2020 | 37 | 174 | |
Amortized Cost Basis by Origination Year - 2019 | 107 | 63 | |
Amortized Cost Basis by Origination Year - Prior | 1,213 | 1,255 | |
Amortized Cost Basis by Origination Year - Revolving | 11,052 | 17,471 | |
Total loans | 13,110 | 19,953 | |
Consumer portfolio loans | Consumer loans | 60 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 55 | ||
Amortized Cost Basis by Origination Year - 2022 | 231 | 103 | |
Amortized Cost Basis by Origination Year - 2021 | 19 | 107 | |
Amortized Cost Basis by Origination Year - 2020 | 49 | 36 | |
Amortized Cost Basis by Origination Year - 2019 | 55 | 144 | |
Amortized Cost Basis by Origination Year - Prior | 242 | 557 | |
Amortized Cost Basis by Origination Year - Revolving | 7,531 | 9,836 | |
Total loans | 8,127 | 10,838 | |
Consumer portfolio loans | Consumer loans | 90 days past due | |||
Loans | |||
Amortized Cost Basis by Origination Year - 2023 | 126 | ||
Amortized Cost Basis by Origination Year - 2022 | 456 | 60 | |
Amortized Cost Basis by Origination Year - 2021 | 76 | 58 | |
Amortized Cost Basis by Origination Year - 2020 | 39 | 66 | |
Amortized Cost Basis by Origination Year - 2019 | 34 | 165 | |
Amortized Cost Basis by Origination Year - Prior | 1,400 | 1,660 | |
Amortized Cost Basis by Origination Year - Revolving | 1,507 | 784 | |
Total loans | $ 3,512 | $ 2,919 |
Loans - Aging analysis of past
Loans - Aging analysis of past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Allowance for Loan Losses | ||
Non-Accruing | $ 120,970 | $ 104,225 |
Total loans | 30,696,142 | 30,177,862 |
30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 51,733 | 68,416 |
60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 30,173 | 31,607 |
90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,650 | 4,350 |
Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 85,556 | 104,373 |
Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 30,489,616 | 29,969,264 |
Non-acquired loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23,750,452 | 22,805,039 |
Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 306 | 827 |
Total loans | 2,749,290 | 2,860,360 |
Construction and land development | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 980 | 2,146 |
Construction and land development | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,050 | 3,653 |
Construction and land development | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,030 | 5,799 |
Construction and land development | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,743,954 | 2,853,734 |
Commercial non-owner occupied | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 21,758 | 20,425 |
Total loans | 8,236,216 | 8,072,959 |
Commercial non-owner occupied | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,410 | 1,158 |
Commercial non-owner occupied | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,778 | 978 |
Commercial non-owner occupied | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 77 | |
Commercial non-owner occupied | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 6,188 | 2,213 |
Commercial non-owner occupied | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 8,208,270 | 8,050,321 |
Commercial owner occupied real estate loan | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 35,563 | 35,089 |
Total loans | 5,522,514 | 5,460,193 |
Commercial owner occupied real estate loan | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,841 | 10,748 |
Commercial owner occupied real estate loan | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,552 | 2,059 |
Commercial owner occupied real estate loan | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,665 | 2,231 |
Commercial owner occupied real estate loan | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 10,058 | 15,038 |
Commercial owner occupied real estate loan | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,476,893 | 5,410,066 |
Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 19,381 | 17,307 |
Total loans | 5,528,546 | 5,162,042 |
Consumer Owner Occupied Loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,521 | 6,001 |
Consumer Owner Occupied Loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,344 | 744 |
Consumer Owner Occupied Loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 40 | |
Consumer Owner Occupied Loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,865 | 6,785 |
Consumer Owner Occupied Loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,505,300 | 5,137,950 |
Home equity loans | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 5,736 | 6,316 |
Total loans | 1,332,285 | 1,313,168 |
Home equity loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,811 | 2,527 |
Home equity loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 673 | 361 |
Home equity loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,484 | 2,888 |
Home equity loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,323,065 | 1,303,964 |
Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 29,953 | 17,129 |
Total loans | 5,321,306 | 5,313,483 |
Commercial and industrial | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 21,931 | 24,500 |
Commercial and industrial | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 9,618 | 11,677 |
Commercial and industrial | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,837 | 1,704 |
Commercial and industrial | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 33,386 | 37,881 |
Commercial and industrial | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,257,967 | 5,258,473 |
Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 2,991 | 2,734 |
Total loans | 721,291 | 696,242 |
Other income producing property | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,224 | 1,623 |
Other income producing property | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 156 | 1,480 |
Other income producing property | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 147 | 298 |
Other income producing property | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,527 | 3,401 |
Other income producing property | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 715,773 | 690,107 |
Consumer loans | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 5,282 | 4,398 |
Total loans | 1,277,549 | 1,278,426 |
Consumer loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 13,015 | 19,713 |
Consumer loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 8,002 | 10,655 |
Consumer loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1 | |
Consumer loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 21,018 | 30,368 |
Consumer loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,251,249 | 1,243,660 |
Other loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 7,145 | 20,989 |
Other loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 7,145 | 20,989 |
Commercial loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 21,575,799 | 21,430,337 |
Commercial loans | Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,855,548 | 1,956,300 |
Commercial loans | Commercial non-owner occupied | ||
Loans and Allowance for Loan Losses | ||
Total loans | 8,236,216 | 8,072,959 |
Commercial loans | Commercial owner occupied real estate loan | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,522,514 | 5,460,193 |
Commercial loans | Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 33,237 | 30,741 |
Commercial loans | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,321,306 | 5,313,483 |
Commercial loans | Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Total loans | 599,833 | 575,672 |
Commercial loans | Other loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 7,145 | 20,989 |
Consumer portfolio loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 9,120,343 | 8,747,525 |
Consumer portfolio loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 21,921 | 30,013 |
Consumer portfolio loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 10,721 | 14,615 |
Consumer portfolio loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 10,654 | 10,472 |
Consumer portfolio loans | Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 893,742 | 904,060 |
Consumer portfolio loans | Construction and land development | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 604 | 125 |
Consumer portfolio loans | Construction and land development | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 114 | |
Consumer portfolio loans | Construction and land development | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1 | 477 |
Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,495,309 | 5,131,301 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,126 | 7,215 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,706 | 3,063 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,955 | 5,874 |
Consumer portfolio loans | Home equity loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,332,285 | 1,313,168 |
Consumer portfolio loans | Home equity loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,789 | 2,658 |
Consumer portfolio loans | Home equity loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 774 | 691 |
Consumer portfolio loans | Home equity loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 930 | 1,081 |
Consumer portfolio loans | Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Total loans | 121,458 | 120,570 |
Consumer portfolio loans | Other income producing property | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 292 | 62 |
Consumer portfolio loans | Other income producing property | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23 | |
Consumer portfolio loans | Other income producing property | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 256 | 121 |
Consumer portfolio loans | Consumer loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,277,549 | 1,278,426 |
Consumer portfolio loans | Consumer loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 13,110 | 19,953 |
Consumer portfolio loans | Consumer loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 8,127 | 10,838 |
Consumer portfolio loans | Consumer loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | $ 3,512 | $ 2,919 |
Loans - Nonaccrual loans (Detai
Loans - Nonaccrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | $ 120,970 | $ 104,225 |
Greater than 90 Days Accruing | 3,650 | |
Non-accrual with no allowance | 34,126 | |
Commercial loans | Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 306 | 827 |
Non-accrual with no allowance | 8 | |
Commercial loans | Commercial non-owner occupied | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 21,758 | 20,425 |
Non-accrual with no allowance | 11,338 | |
Commercial loans | Commercial owner occupied real estate loan | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 35,563 | 35,089 |
Greater than 90 Days Accruing | 1,665 | |
Non-accrual with no allowance | 15,034 | |
Commercial loans | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 29,953 | 17,129 |
Greater than 90 Days Accruing | 1,837 | |
Non-accrual with no allowance | 6,252 | |
Commercial loans | Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 2,991 | 2,734 |
Greater than 90 Days Accruing | 147 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 19,381 | 17,307 |
Non-accrual with no allowance | 5 | |
Consumer portfolio loans | Home equity loans | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 5,736 | 6,316 |
Non-accrual with no allowance | 1,489 | |
Consumer portfolio loans | Consumer loans | ||
Loans and Allowance for Loan Losses | ||
Total loans on nonaccrual status | 5,282 | $ 4,398 |
Greater than 90 Days Accruing | $ 1 |
Loans - Collateral Dependent Lo
Loans - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2020 | |
Loans and Allowance for Loan Losses | |||
Loans individually evaluated for impairment | $ 1,000 | ||
Financing Receivable, Threshold Loss on Modifications Estimated | $ 1,000 | ||
Increase in overall collateral dependent loans | $ (18,900) | ||
Number of months generally required to return to accruing status | 6 months | ||
Commercial non-owner occupied | |||
Loans and Allowance for Loan Losses | |||
Collateral dependent loans | $ 46,289 | $ 27,419 | |
Collateral Coverage | 91,662 | 57,062 | |
Commercial non-owner occupied | Other | |||
Loans and Allowance for Loan Losses | |||
Collateral dependent loans | 11,338 | 6,450 | |
Collateral Coverage | $ 31,860 | $ 10,900 | |
Collateral Coverage (as a percent) | 281% | 169% | |
Commercial owner occupied real estate loan | Other | |||
Loans and Allowance for Loan Losses | |||
Collateral dependent loans | $ 6,868 | $ 14,638 | |
Collateral Coverage | $ 17,012 | $ 38,900 | |
Collateral Coverage (as a percent) | 248% | 266% | |
Commercial owner occupied real estate loan | Industrial | |||
Loans and Allowance for Loan Losses | |||
Collateral dependent loans | $ 8,166 | ||
Collateral Coverage | $ 9,344 | ||
Collateral Coverage (as a percent) | 114% | ||
Commercial and industrial | Other | |||
Loans and Allowance for Loan Losses | |||
Collateral dependent loans | $ 18,428 | $ 4,808 | |
Collateral Coverage | $ 30,586 | $ 5,591 | |
Collateral Coverage (as a percent) | 166% | 116% | |
Home equity loans | Residential 1-4 family dwelling | |||
Loans and Allowance for Loan Losses | |||
Collateral dependent loans | $ 1,489 | $ 1,523 | |
Collateral Coverage | $ 2,860 | $ 1,671 | |
Collateral Coverage (as a percent) | 192% | 110% |
Loans - Loans Designated as Mod
Loans - Loans Designated as Modifications (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Accrued interest receivable | $ 12 |
Term extension | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amortized Cost | 3,792 |
Commercial loans | Construction and land development | Term extension | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amortized Cost | $ 260 |
% of Total Asset Class | 0.04% |
Increase in Weighted Average Life of Loan | 12 months |
Commercial loans | Commercial owner occupied real estate loan | Term extension | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amortized Cost | $ 2,105 |
% of Total Asset Class | 0.02% |
Increase in Weighted Average Life of Loan | 8 months |
Commercial loans | Commercial and industrial | Term extension | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amortized Cost | $ 1,145 |
% of Total Asset Class | 0.02% |
Increase in Weighted Average Life of Loan | 10 months |
Consumer portfolio loans | Consumer loans | Term extension | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amortized Cost | $ 282 |
% of Total Asset Class | 0.02% |
Increase in Weighted Average Life of Loan | 6 months |
Loans - Loans Designated as TDR
Loans - Loans Designated as TDRs (Details) | 3 Months Ended | |
Mar. 31, 2022 USD ($) loan | Mar. 31, 2023 USD ($) | |
Allowance for Credit Losses | ||
Number of loans | loan | 14 | |
Pre-Modification Amortized Cost | $ 3,787,000 | |
Post-Modification Amortized Cost | 3,787,000 | |
Balance of accruing TDRs | 12,400,000 | |
Remaining availability under commitments to lend additional funds on restructured loans | 768,000 | $ 3,400,000 |
Specific reserve associated with restructured loans that subsequently defaulted | $ 4,200,000 | |
Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 11 | |
Pre-Modification Amortized Cost | $ 1,290,000 | |
Post-Modification Amortized Cost | $ 1,290,000 | |
Term modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 3 | |
Pre-Modification Amortized Cost | $ 2,497,000 | |
Post-Modification Amortized Cost | $ 2,497,000 | |
Construction and land development | Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 120,000 | |
Post-Modification Amortized Cost | $ 120,000 | |
Construction and land development | Term modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 141,000 | |
Post-Modification Amortized Cost | $ 141,000 | |
Commercial non-owner occupied | Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 187,000 | |
Post-Modification Amortized Cost | $ 187,000 | |
Commercial non-owner occupied | Term modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 2 | |
Pre-Modification Amortized Cost | $ 2,356,000 | |
Post-Modification Amortized Cost | $ 2,356,000 | |
Commercial owner occupied real estate loan | Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 2 | |
Pre-Modification Amortized Cost | $ 268,000 | |
Post-Modification Amortized Cost | $ 268,000 | |
Consumer Owner Occupied Loans | Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 99,000 | |
Post-Modification Amortized Cost | $ 99,000 | |
Commercial and industrial | Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 4 | |
Pre-Modification Amortized Cost | $ 497,000 | |
Post-Modification Amortized Cost | $ 497,000 | |
Other income producing property | Interest rate modification | ||
Allowance for Credit Losses | ||
Number of loans | loan | 2 | |
Pre-Modification Amortized Cost | $ 119,000 | |
Post-Modification Amortized Cost | $ 119,000 |
Loans - Changes in Status of Lo
Loans - Changes in Status of Loans (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) loan | |
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Number of Loans | loan | 18 | |
Paying Under Restructured Terms - Amortized Cost | $ 4,589 | |
Interest rate reduction | ||
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Number of Loans | loan | 14 | |
Paying Under Restructured Terms - Amortized Cost | $ 1,783 | |
Term extension | ||
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Number of Loans | loan | 4 | |
Paying Under Restructured Terms - Amortized Cost | $ 3,792 | $ 2,806 |
Term extension | Consumer portfolio loans | Construction and land development | ||
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Amortized Cost | 260 | |
Term extension | Consumer portfolio loans | Commercial owner occupied real estate loan | ||
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Amortized Cost | 2,105 | |
Term extension | Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Amortized Cost | 282 | |
Term extension | Consumer portfolio loans | Commercial and industrial | ||
Allowance for Credit Losses | ||
Paying Under Restructured Terms - Amortized Cost | $ 1,145 |
Loans - Performance of Loans Mo
Loans - Performance of Loans Modified (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized Cost Basis | $ 4,589 | |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized Cost Basis | $ 3,792 | |
Commercial loans | Construction and land development | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized Cost Basis | 260 | |
Commercial loans | Commercial owner occupied real estate loan | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized Cost Basis | 2,105 | |
Commercial loans | Commercial and industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized Cost Basis | 1,145 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized Cost Basis | $ 282 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (ACL) - Disaggregated analysis of the changes in allowance for credit losses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Allowance for credit losses | ||||
Balance at beginning of period | $ 356,444,000 | $ 301,807,000 | $ 301,807,000 | |
Charge-offs | (4,627,000) | (5,490,000) | (23,446,000) | |
Recoveries | 3,589,000 | 3,167,000 | ||
Net (charge-offs) recoveries | (1,038,000) | (2,323,000) | ||
Provision (recovery) | 15,239,000 | (22,003,000) | ||
Balance at end of period | 370,645,000 | 300,396,000 | 356,444,000 | |
Quantitative allowance | ||||
Collectively evaluated | 341,504,000 | 288,316,000 | ||
Individually evaluated | 16,782,000 | 8,431,000 | ||
Total quantitative allowance | 358,286,000 | 296,747,000 | ||
Qualitative allowance | 12,359,000 | 3,649,000 | ||
Unfunded Commitment | ||||
Allowance for credit losses | ||||
Provision (recovery) | 17,900,000 | (142,000) | ||
Initial PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 9,218,000 | |||
Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 13,697,000 | |||
Residential Mortgage Sr. | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 72,188,000 | 47,036,000 | 47,036,000 | |
Charge-offs | (2,000) | (58,000) | ||
Recoveries | 294,000 | 394,000 | ||
Net (charge-offs) recoveries | 292,000 | 336,000 | ||
Provision (recovery) | 4,871,000 | (1,806,000) | ||
Balance at end of period | 77,351,000 | 46,002,000 | 72,188,000 | |
Quantitative allowance | ||||
Collectively evaluated | 77,982,000 | 45,805,000 | ||
Individually evaluated | 197,000 | 168,000 | ||
Total quantitative allowance | 78,179,000 | 45,973,000 | ||
Qualitative allowance | (828,000) | 29,000 | ||
Residential Mortgage Sr. | Initial PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 84,000 | |||
Residential Mortgage Sr. | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 352,000 | |||
Residential Mortgage Jr. | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 405,000 | 611,000 | 611,000 | |
Charge-offs | (19,000) | |||
Recoveries | 5,000 | 55,000 | ||
Net (charge-offs) recoveries | 5,000 | 36,000 | ||
Provision (recovery) | (61,000) | (87,000) | ||
Balance at end of period | 349,000 | 586,000 | 405,000 | |
Quantitative allowance | ||||
Collectively evaluated | 350,000 | 586,000 | ||
Total quantitative allowance | 350,000 | 586,000 | ||
Qualitative allowance | (1,000) | |||
Residential Mortgage Jr. | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 26,000 | |||
HELOC | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 14,886,000 | 13,325,000 | 13,325,000 | |
Charge-offs | (39,000) | (218,000) | ||
Recoveries | 245,000 | 257,000 | ||
Net (charge-offs) recoveries | 206,000 | 39,000 | ||
Provision (recovery) | (774,000) | 175,000 | ||
Balance at end of period | 14,318,000 | 13,671,000 | 14,886,000 | |
Quantitative allowance | ||||
Collectively evaluated | 12,229,000 | 12,301,000 | ||
Individually evaluated | 2,285,000 | 1,357,000 | ||
Total quantitative allowance | 14,514,000 | 13,658,000 | ||
Qualitative allowance | (196,000) | 13,000 | ||
HELOC | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 132,000 | |||
Residential Construction | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 8,974,000 | 4,997,000 | 4,997,000 | |
Recoveries | 72,000 | 3,000 | ||
Net (charge-offs) recoveries | 72,000 | 3,000 | ||
Provision (recovery) | 130,000 | 614,000 | ||
Balance at end of period | 9,176,000 | 5,616,000 | 8,974,000 | |
Quantitative allowance | ||||
Collectively evaluated | 8,994,000 | 5,616,000 | ||
Total quantitative allowance | 8,994,000 | 5,616,000 | ||
Qualitative allowance | 182,000 | |||
Residential Construction | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 2,000 | |||
Other C&D | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 45,410,000 | 37,593,000 | 37,593,000 | |
Charge-offs | (4,000) | |||
Recoveries | 258,000 | 234,000 | ||
Net (charge-offs) recoveries | 258,000 | 230,000 | ||
Provision (recovery) | 9,401,000 | (14,438,000) | ||
Balance at end of period | 55,069,000 | 25,358,000 | 45,410,000 | |
Quantitative allowance | ||||
Collectively evaluated | 49,865,000 | 24,770,000 | ||
Individually evaluated | 155,000 | 588,000 | ||
Total quantitative allowance | 50,020,000 | 25,358,000 | ||
Qualitative allowance | 5,049,000 | |||
Other C&D | Initial PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 86,000 | |||
Other C&D | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 1,887,000 | |||
Consumer | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 22,767,000 | 23,149,000 | 23,149,000 | |
Charge-offs | (2,729,000) | (2,661,000) | ||
Recoveries | 584,000 | 532,000 | ||
Net (charge-offs) recoveries | (2,145,000) | (2,129,000) | ||
Provision (recovery) | 2,697,000 | 828,000 | ||
Balance at end of period | 23,319,000 | 21,899,000 | 22,767,000 | |
Quantitative allowance | ||||
Collectively evaluated | 23,319,000 | 21,899,000 | ||
Total quantitative allowance | 23,319,000 | 21,899,000 | ||
Consumer | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 51,000 | |||
Multifamily | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 3,684,000 | 4,921,000 | 4,921,000 | |
Provision (recovery) | 1,823,000 | (1,444,000) | ||
Balance at end of period | 5,507,000 | 3,903,000 | 3,684,000 | |
Quantitative allowance | ||||
Collectively evaluated | 5,369,000 | 3,903,000 | ||
Total quantitative allowance | 5,369,000 | 3,903,000 | ||
Qualitative allowance | 138,000 | |||
Multifamily | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 426,000 | |||
Municipal | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 849,000 | 565,000 | 565,000 | |
Provision (recovery) | 30,000 | 42,000 | ||
Balance at end of period | 879,000 | 607,000 | 849,000 | |
Quantitative allowance | ||||
Collectively evaluated | 731,000 | 607,000 | ||
Total quantitative allowance | 731,000 | 607,000 | ||
Qualitative allowance | 148,000 | |||
CRE Owner Occupied | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 58,083,000 | 61,794,000 | 61,794,000 | |
Charge-offs | (371,000) | |||
Recoveries | 293,000 | 314,000 | ||
Net (charge-offs) recoveries | 293,000 | (57,000) | ||
Provision (recovery) | (835,000) | (16,641,000) | ||
Balance at end of period | 57,541,000 | 49,094,000 | 58,083,000 | |
Quantitative allowance | ||||
Collectively evaluated | 49,297,000 | 45,302,000 | ||
Individually evaluated | 6,812,000 | 2,960,000 | ||
Total quantitative allowance | 56,109,000 | 48,262,000 | ||
Qualitative allowance | 1,432,000 | 832,000 | ||
CRE Owner Occupied | Initial PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 1,479,000 | |||
CRE Owner Occupied | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 2,519,000 | |||
Non Owner Occupied CRE | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 78,485,000 | 79,649,000 | 79,649,000 | |
Charge-offs | (51,000) | |||
Recoveries | 106,000 | 69,000 | ||
Net (charge-offs) recoveries | 55,000 | 69,000 | ||
Provision (recovery) | 3,933,000 | 13,945,000 | ||
Balance at end of period | 82,473,000 | 96,360,000 | 78,485,000 | |
Quantitative allowance | ||||
Collectively evaluated | 78,013,000 | 95,051,000 | ||
Individually evaluated | 2,721,000 | |||
Total quantitative allowance | 80,734,000 | 95,051,000 | ||
Qualitative allowance | 1,739,000 | 1,309,000 | ||
Non Owner Occupied CRE | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 2,697,000 | |||
C & I | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 50,713,000 | 28,167,000 | 28,167,000 | |
Charge-offs | (1,806,000) | (2,159,000) | ||
Recoveries | 1,732,000 | 1,309,000 | ||
Net (charge-offs) recoveries | (74,000) | (850,000) | ||
Provision (recovery) | (5,976,000) | (3,191,000) | ||
Balance at end of period | 44,663,000 | 37,300,000 | $ 50,713,000 | |
Quantitative allowance | ||||
Collectively evaluated | 35,355,000 | 32,476,000 | ||
Individually evaluated | 4,612,000 | 3,358,000 | ||
Total quantitative allowance | 39,967,000 | 35,834,000 | ||
Qualitative allowance | $ 4,696,000 | 1,466,000 | ||
C & I | Initial PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 7,569,000 | |||
C & I | Initial Non PCD Allowance | ||||
Allowance for credit losses | ||||
Balance at end of period | 5,605,000 | |||
Atlantic Capital | ||||
Allowance for credit losses | ||||
Charge-offs | $ (22,100,000) | |||
Atlantic Capital | Unfunded Commitment | ||||
Allowance for credit losses | ||||
Provision (recovery) | $ 3,400,000 |
Other Real Estate Owned and B_3
Other Real Estate Owned and Bank Properties Held for Sale (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) property | Dec. 31, 2022 property | |
OREO and Bank Premises | ||
Balance at the beginning of the period | $ 18,777 | |
Additions, net | 2,826 | |
Write-downs | (409) | |
Sold | (997) | |
Balance at the end of the period | $ 20,197 | |
Number of properties held | property | 6 | 6 |
Number of properties premises held for sale | property | 16 | 17 |
Residential real estate consumer mortgage loans in foreclosure, carrying value | $ 3,000 | |
OREO. | ||
OREO and Bank Premises | ||
Balance at the beginning of the period | 1,023 | |
Additions, net | 2,826 | |
Sold | (376) | |
Balance at the end of the period | 3,473 | |
Bank Premises Held for Sale | ||
OREO and Bank Premises | ||
Balance at the beginning of the period | 17,754 | |
Write-downs | (409) | |
Sold | (621) | |
Balance at the end of the period | $ 16,724 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Right to use asset | $ 104,700 | $ 108,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Lease Liability | $ 112,409 | $ 115,600 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. |
Existence of option to extend | true | |
Lessee, Operating Leases Liability Not Yet Commenced | $ 0 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 21 years |
Leases - Lease cost and other i
Leases - Lease cost and other information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lease Cost Components: | |||
Amortization of ROU assets - finance leases | $ 117 | $ 117 | |
Interest on lease liabilities - finance leases | 11 | 13 | |
Operating lease cost (cost resulting from lease payments) | 4,240 | 4,333 | |
Short-term lease cost | 109 | 143 | |
Variable lease cost (cost excluded from lease payments) | 634 | 437 | |
Total lease cost | 5,111 | 5,043 | |
Supplemental Cash Flow and Other Information Related to Leases: | |||
Finance lease - operating cash flows | 11 | 13 | |
Finance lease - financing cash flows | 110 | 108 | |
Operating lease - operating cash flows (fixed payments) | 4,097 | 4,181 | |
Operating lease - operating cash flows (net change asset/liability) | $ (3,287) | (3,303) | |
New ROU assets - operating leases | $ 12,428 | ||
Weighted - average remaining lease term (years) - finance leases | 5 years 2 months 4 days | 6 years 2 months 1 day | |
Weighted - average remaining lease term (years) - operating leases | 9 years 10 months 17 days | 10 years 5 months 19 days | |
Weighted - average discount rate - finance leases | 1.70% | 1.70% | |
Weighted - average discount rate - operating leases | 3% | 3% | |
Maturity Analysis of Lease Liabilities: | |||
2023 (excluding the quarter ended March 31, 2023) | $ 12,226 | ||
2024 | 15,011 | ||
2025 | 13,548 | ||
2026 | 13,135 | ||
2027 | 12,172 | ||
Thereafter | 66,550 | ||
Total undiscounted cash flows | 132,642 | ||
Discount on cash flows | (20,233) | ||
Total operating lease liabilities | $ 112,409 | $ 115,600 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. |
Deposits - Total deposits (Deta
Deposits - Total deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Non-interest bearing checking | $ 12,422,583 | $ 13,168,656 |
Interest-bearing checking | 8,316,023 | 8,955,519 |
Savings | 3,156,214 | 3,464,351 |
Money market | 8,388,275 | 8,342,111 |
Time deposits | 4,118,497 | 2,419,986 |
Total deposits | $ 36,401,592 | $ 36,350,623 |
Deposits - Certificates of depo
Deposits - Certificates of deposits and Scheduled maturities of time deposits (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Aggregate amounts of certificates of deposits in denominations of $250,000 or more | $ 658.5 | $ 464.9 |
Traditional, out-of-market brokered deposits | $ 1,400 | $ 150 |
Retirement Plans - Safe Harbor
Retirement Plans - Safe Harbor plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employees' savings plan | ||
Matching contribution by the company (as a percent) | 100% | |
Employee savings plan/ 401(k) | $ 4.5 | $ 4 |
Minimum | ||
Employees' savings plan | ||
Age of employees to be eligible to participate in the defined contribution plan | 21 years | |
Percentage of annual base compensation that participants may elect to contribute | 1% | |
Maximum | ||
Employees' savings plan | ||
Percentage of annual base compensation that participants may elect to contribute | 50% | |
Percentage of employees salary for which the company contributes a matching contribution | 4% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of basic and diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic earnings per common share: | ||
Net income | $ 139,926 | $ 100,329 |
Weighted-average basic common shares | 75,902 | 71,447 |
Basic earnings per common share (in dollars per share) | $ 1.84 | $ 1.40 |
Diluted earnings per common share: | ||
Net income | $ 139,926 | $ 100,329 |
Weighted-average basic common shares | 75,902 | 71,447 |
Effect of dilutive securities (in shares) | 487 | 664 |
Weighted-average dilutive shares | 76,389 | 72,111 |
Diluted earnings per common share (in dollars per share) | $ 1.83 | $ 1.39 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of diluted EPS under Treasury method (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share | ||
Number of shares | 57,169 | 57,169 |
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 87.30 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - USD ($) | 3 Months Ended | 192 Months Ended |
Mar. 31, 2023 | Dec. 31, 2019 | |
Additional disclosures | ||
Intrinsic value of stock option shares exercised | $ 510,000 | |
2004 plan | ||
Additional disclosures | ||
Granted (in shares) | 0 | |
2020 plan | ||
Share-Based Compensation | ||
Number of shares registered | 2,072,245 | |
Stock Options | ||
Number of shares | ||
Outstanding at the beginning of the period (in shares) | 161,832 | |
Exercised (in shares) | (19,011) | |
Expired (in shares) | (929) | |
Outstanding at the end of the period (in shares) | 141,892 | |
Exercisable at the end of the period (in shares) | 141,892 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 66.20 | |
Exercised (in dollars per share) | 51.01 | |
Expired (in dollars per share) | 33.09 | |
Outstanding at the end of the period (in dollars per share) | 68.45 | |
Exercisable at the end of the period (in dollars per share) | $ 68.45 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding at the end of the period | 3 years 10 days | |
Exercisable at the end of the period | 3 years 10 days | |
Aggregate Intrinsic Value | ||
Outstanding at the end of the period | $ 1,534,000 | |
Exercisable at the end of the period | $ 1,534,000 | |
Additional disclosures | ||
Granted (in shares) | 0 | |
Total unrecognized compensation cost related to non vested stock option grants | $ 0 | |
Incentive stock options | Maximum | ||
Share-Based Compensation | ||
Vesting period | 4 years | |
Incentive stock options | Plan 2004 and 2012 | ||
Share-Based Compensation | ||
Vesting percentage | 25% | |
Expiration period | 10 years |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock (Details) - Restricted Stock $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Restricted Stock Activity | |
Outstanding at the beginning of the period (in shares) | shares | 50,506 |
Vested (in shares) | shares | (18,380) |
Forfeited (in shares) | shares | (2,233) |
Outstanding at the end of the period (in shares) | shares | 29,893 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 89.12 |
Vested (in dollars per share) | $ / shares | 90 |
Forfeited (in dollars per share) | $ / shares | 90 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 88.51 |
Additional disclosures | |
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ | $ 1.8 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 1 month 9 days |
Total fair value of shares vested during the period | $ | $ 1.5 |
Minimum | |
Additional disclosures | |
Vesting period | 2 years |
Maximum | |
Additional disclosures | |
Vesting period | 4 years |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Restricted Stock Units | |
RSU Activity | |
Outstanding at the beginning of the period (in shares) | 940,512 |
Granted (in shares) | 328,343 |
Vested (in shares) | (177,708) |
Forfeited (in shares) | (3,604) |
Outstanding at the end of the period (in shares) | 1,087,543 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 73.82 |
Granted (in dollars per share) | $ / shares | 76.05 |
Vested (in dollars per share) | $ / shares | 86.81 |
Forfeited (in dollars per share) | $ / shares | 75.92 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 72.37 |
Additional disclosures | |
Options vested (in shares) | 89,682 |
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ | $ 39.2 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 2 months 19 days |
Total fair value of shares vested during the period | $ | $ 15.4 |
Restricted Stock Units | Maximum | |
Additional disclosures | |
Vesting period | 12 months |
Performance based restricted stock units | |
Additional disclosures | |
Performance period | 3 years |
Other Performance based restricted stock units | Minimum | |
Additional disclosures | |
Performance period | 1 year |
Other Performance based restricted stock units | Maximum | |
Additional disclosures | |
Performance period | 2 years |
Timed based restricted stock units | Minimum | |
Additional disclosures | |
Performance period | 2 years |
Timed based restricted stock units | Maximum | |
Additional disclosures | |
Performance period | 4 years |
2021 and 2022 LTI performance-based RSU grants | Restricted Stock Units | |
Additional disclosures | |
Additional shares authorized | 147,601 |
Vesting period | 3 years |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingent Liabilities | |
Commitments to extend credit and standby letters of credit | $ 11,400 |
Liability recorded for expected credit losses on unfunded commitments | $ 85.1 |
Fair Value - Assets and liabili
Fair Value - Assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value | ||
Percentage of loans individually evaluated based on fair value of collateral | 66.67% | |
Assets | ||
Trading securities | $ 16,039 | $ 31,263 |
Securities available for sale | 5,159,999 | 5,326,822 |
SBA servicing asset | 6,500 | 6,100 |
U.S. Treasuries | ||
Assets | ||
Securities available for sale | 268,096 | 265,638 |
U.S. Government agencies | ||
Assets | ||
Trading securities | 3,925 | 11,190 |
Securities available for sale | 220,259 | 219,088 |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Trading securities | 3,439 | |
Securities available for sale | 1,673,162 | 1,698,353 |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Trading securities | 1,304 | 4,589 |
Securities available for sale | 987,437 | 1,000,398 |
State and municipal obligations | ||
Assets | ||
Trading securities | 7,122 | 13,993 |
Securities available for sale | 966,957 | 1,064,852 |
Corporate securities. | ||
Assets | ||
Securities available for sale | 27,184 | 32,638 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Loans held for sale | 27,289 | 28,968 |
Trading securities | 16,039 | 31,263 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 85,406 | 86,610 |
SBA servicing asset | 6,521 | 6,068 |
Changes in fair value of assets | ||
Changes in hierarchy classifications of Level 3 assets | 0 | |
Changes in hierarchy classifications of Level 3 liabilities | 0 | |
Recurring basis | ||
Assets | ||
Derivative financial instruments | 159,287 | 211,016 |
Loans held for sale | 27,289 | 28,968 |
Trading securities | 16,039 | 31,263 |
Securities available for sale | 5,159,999 | 5,326,822 |
Mortgage servicing rights | 85,406 | 86,610 |
SBA servicing asset | 6,521 | 6,068 |
Fair value of Assets, Total | 5,454,541 | 5,690,747 |
Liabilities | ||
Derivative financial instruments | 806,584 | 1,034,143 |
Recurring basis | U.S. Treasuries | ||
Assets | ||
Securities available for sale | 268,096 | 265,638 |
Recurring basis | U.S. Government agencies | ||
Assets | ||
Securities available for sale | 220,259 | 219,088 |
Recurring basis | Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 1,673,162 | 1,698,353 |
Recurring basis | Residential Collateralized Mortgage-Obligations Issued By U.S. Government Agencies Or Sponsored Enterprises [Member] | ||
Assets | ||
Securities available for sale | 591,412 | 601,045 |
Recurring basis | Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 987,437 | 1,000,398 |
Recurring basis | State and municipal obligations | ||
Assets | ||
Securities available for sale | 966,957 | 1,064,852 |
Recurring basis | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 425,492 | 444,810 |
Recurring basis | Corporate securities. | ||
Assets | ||
Securities available for sale | 27,184 | 32,638 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative financial instruments | 159,287 | 211,016 |
Loans held for sale | 27,289 | 28,968 |
Trading securities | 16,039 | 31,263 |
Securities available for sale | 5,159,999 | 5,326,822 |
Fair value of Assets, Total | 5,362,614 | 5,598,069 |
Liabilities | ||
Derivative financial instruments | 806,584 | 1,034,143 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasuries | ||
Assets | ||
Securities available for sale | 268,096 | 265,638 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government agencies | ||
Assets | ||
Securities available for sale | 220,259 | 219,088 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 1,673,162 | 1,698,353 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential Collateralized Mortgage-Obligations Issued By U.S. Government Agencies Or Sponsored Enterprises [Member] | ||
Assets | ||
Securities available for sale | 591,412 | 601,045 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 987,437 | 1,000,398 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets | ||
Securities available for sale | 966,957 | 1,064,852 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 425,492 | 444,810 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities. | ||
Assets | ||
Securities available for sale | 27,184 | 32,638 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 85,406 | 86,610 |
SBA servicing asset | 6,521 | 6,068 |
Fair value of Assets, Total | $ 91,927 | $ 92,678 |
Changes in fair value of assets | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | |
Unrealized losses included in accumulated other comprehensive (loss) income related to Level 3 financial assets and liabilities | $ 0 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | ||
Changes in fair value of assets | ||
Fair value of assets at the beginning of the period | 86,610 | |
Servicing assets that resulted from transfers of financial assets | 1,494 | |
Changes in fair value assets due to valuation inputs or assumptions | (1,289) | |
Changes in fair value due to decay | (1,409) | |
Fair value of assets at the end of the period | 85,406 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | SBA servicing asset | ||
Changes in fair value of assets | ||
Fair value of assets at the beginning of the period | 6,068 | |
Servicing assets that resulted from transfers of financial assets | 334 | |
Changes in fair value assets due to valuation inputs or assumptions | $ 355 | |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | |
Changes in fair value due to decay | $ (236) | |
Fair value of assets at the end of the period | $ 6,521 |
Fair Value - Assets and liabi_2
Fair Value - Assets and liabilities measured at fair value on a nonrecurring basis (Details) $ in Thousands | Mar. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item |
Fair Value | ||
OREO | $ 3,473 | $ 1,023 |
Individually evaluated loans | 120,970 | 104,225 |
Nonrecurring basis | OREO | Fair Value | ||
Fair Value | ||
OREO | 3,473 | 1,023 |
Nonrecurring basis | Bank properties held for sale | Fair Value | ||
Fair Value | ||
Bank properties held for sale | 16,724 | 17,754 |
Nonrecurring basis | Non-acquired impaired loans | Fair Value | ||
Fair Value | ||
Individually evaluated loans | $ 28,650 | $ 20,802 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember, us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:MarketApproachValuationTechniqueMember, us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans | Weighted average | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Discount rate (as a percent) | item | 0.24 | 0.31 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | ||
Fair Value | ||
OREO | $ 3,473 | $ 1,023 |
Quantitative Information about Level 3 Fair Value Measurements | ||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputCostToSellMember, us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputCostToSellMember, us-gaap:MeasurementInputDiscountRateMember |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | Weighted average | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Discount rate (as a percent) | item | 0.15 | 0.16 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Bank properties held for sale | ||
Fair Value | ||
Bank properties held for sale | $ 16,724 | $ 17,754 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Non-acquired impaired loans | ||
Fair Value | ||
Individually evaluated loans | $ 28,650 | $ 20,802 |
Fair Value - Estimated fair val
Fair Value - Estimated fair value and related carrying amount, of the Company's financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financial assets: | |||
Trading securities | $ 16,039 | $ 31,263 | |
SBA servicing asset | 6,500 | 6,100 | |
Financial liabilities: | |||
Other borrowings | 900,000 | ||
Other derivative financial instruments (mortgage banking related) | (227,559) | $ 119,608 | |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 1,996,662 | 1,312,563 | |
Trading securities | 16,039 | 31,263 | |
Investment securities | 8,014,663 | 8,189,780 | |
Loans held for sale | 27,289 | 28,968 | |
Loans, net of allowance for credit losses | 30,325,497 | 29,821,418 | |
Accrued interest receivable | 138,515 | 134,594 | |
Mortgage servicing rights | 85,406 | 86,610 | |
SBA servicing asset | 6,521 | 6,068 | |
Interest rate swap - non-designated hedge | 157,014 | 210,216 | |
Other derivative financial instruments (mortgage banking related) | $ 2,273 | $ 800 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Derivative Asset, Noncurrent | Derivative Asset, Noncurrent | |
Financial liabilities: | |||
Deposits | $ 36,401,592 | $ 36,350,623 | |
Federal funds purchased and securities sold under agreements to repurchase | 544,108 | 556,417 | |
Corporate and subordinated debentures | 392,182 | 392,275 | |
Other borrowings | 900,000 | ||
Accrued interest payable | 20,411 | 6,218 | |
Interest rate swap - non-designated hedge | 806,584 | 1,033,980 | |
Other derivative financial instruments (mortgage banking related) | 163 | ||
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 1,996,662 | 1,312,563 | |
Trading securities | 16,039 | 31,263 | |
Investment securities | 7,567,328 | 7,756,707 | |
Loans held for sale | 27,289 | 28,968 | |
Loans, net of allowance for credit losses | 29,646,800 | 29,329,499 | |
Accrued interest receivable | 138,515 | 134,594 | |
Mortgage servicing rights | 85,406 | 86,610 | |
Interest rate swap - non-designated hedge | 157,014 | 210,216 | |
Other derivative financial instruments (mortgage banking related) | $ 2,273 | $ 800 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Derivative Asset, Noncurrent | Derivative Asset, Noncurrent | |
Financial liabilities: | |||
Deposits | $ 36,333,275 | $ 36,264,401 | |
Federal funds purchased and securities sold under agreements to repurchase | 556,417 | 556,417 | |
Corporate and subordinated debentures | 380,925 | 377,360 | |
Other borrowings | 900,000 | ||
Accrued interest payable | 20,411 | 6,218 | |
Interest rate swap - non-designated hedge | 806,584 | 1,033,980 | |
Other derivative financial instruments (mortgage banking related) | 163 | ||
Commitments to extend credit | Fair Value | |||
Financial liabilities: | |||
Commitments to extend credit | (255,022) | (184,801) | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 1,996,662 | 1,312,563 | |
Investment securities | 179,717 | 179,717 | |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Trading securities | 16,039 | 31,263 | |
Investment securities | 7,387,611 | 7,576,990 | |
Loans held for sale | 27,289 | 28,968 | |
Accrued interest receivable | 26,888 | 28,449 | |
Interest rate swap - non-designated hedge | 157,014 | 210,216 | |
Other derivative financial instruments (mortgage banking related) | $ 2,273 | $ 800 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Derivative Asset, Noncurrent | Derivative Asset, Noncurrent | |
Financial liabilities: | |||
Deposits | $ 36,333,275 | $ 36,264,401 | |
Federal funds purchased and securities sold under agreements to repurchase | 556,417 | 556,417 | |
Corporate and subordinated debentures | 380,925 | 377,360 | |
Other borrowings | 900,000 | ||
Accrued interest payable | 20,411 | 3,345 | |
Interest rate swap - non-designated hedge | 806,584 | 1,033,980 | |
Other derivative financial instruments (mortgage banking related) | 163 | ||
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Financial liabilities: | |||
Commitments to extend credit | (255,022) | (184,801) | |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Loans, net of allowance for credit losses | 29,646,800 | 29,329,499 | |
Accrued interest receivable | 111,627 | 106,145 | |
Mortgage servicing rights | 85,406 | 86,610 | |
SBA servicing asset | $ 6,521 | $ 6,068 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance at the beginning of the period | $ (677,088) | |
Net comprehensive (loss) income | 63,304 | $ (272,810) |
Balance at the end of the period | (613,784) | |
Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at the beginning of the period | (673) | 57 |
Balance at the end of the period | (673) | 57 |
Unrealized Gains and (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at the beginning of the period | (676,415) | (21,203) |
Other comprehensive income (loss) before reclassifications | 63,271 | (272,810) |
Amounts reclassified from accumulated other comprehensive loss | 33 | |
Net comprehensive (loss) income | 63,304 | (272,810) |
Balance at the end of the period | (613,111) | (294,013) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at the beginning of the period | (677,088) | (21,146) |
Other comprehensive income (loss) before reclassifications | 63,271 | (272,810) |
Amounts reclassified from accumulated other comprehensive loss | 33 | |
Net comprehensive (loss) income | 63,304 | (272,810) |
Balance at the end of the period | $ (613,784) | $ (293,956) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassifications out of accumulated other comprehensive income, net of tax | ||
Provision for income taxes | $ 39,096 | $ 27,084 |
Net income | 139,926 | $ 100,329 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||
Reclassifications out of accumulated other comprehensive income, net of tax | ||
Net income | 33 | |
Unrealized Gains and (Losses) on Securities Available for Sale | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||
Reclassifications out of accumulated other comprehensive income, net of tax | ||
Securities gains (losses), net | 45 | |
Provision for income taxes | 12 | |
Net income | $ 33 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative Financial Instruments | |||
Notional Amount | $ 21,487,939,000 | $ 20,979,193,000 | |
Estimated Fair Value Gain | $ 159,286,000 | $ 211,016,000 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | Noninterest Income, Other | |
Estimated Fair Value Loss | $ 806,584,000 | $ 1,034,143,000 | |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | Noninterest Income, Other | |
Net gain | $ 96,000 | $ 41,000 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | ||
Reduction in derivative liability fair value | $ 650,000,000 | $ 824,300,000 | |
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Fair value of forward commitments | (806,584,000) | (1,034,143,000) | |
Other Liabilities | |||
Derivative Financial Instruments | |||
Fair value of the interest rate swap derivatives, other liabilities | 806,600,000,000 | 1,000,000,000 | |
Other Assets | |||
Derivative Financial Instruments | |||
Fair value of the interest rate swap derivatives, other assets | 156,800,000 | 209,800,000 | |
Mortgage loan pipeline | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 107,831,000 | 40,850,000 | |
Expected closures | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 90,737,000 | 37,210,000 | |
Cash flow hedge | |||
Derivative Financial Instruments | |||
Collateral provided | 0 | 0 | |
Cash flow hedge | Cash and Cash Equivalents | Borrower | |||
Derivative Financial Instruments | |||
Collateral provided | 222,700,000 | ||
Cash flow hedge | Interest-bearing deposits | Counterparty | |||
Derivative Financial Instruments | |||
Cash collateral | 100,300,000 | ||
Interest rate contracts | |||
Derivative Financial Instruments | |||
Notional Amount | 21,300,000,000 | 20,900,000,000 | |
Mortgage servicing rights hedging | Non-designated hedges | |||
Derivative Financial Instruments | |||
Notional Amount | 67,500,000 | 35,000,000 | |
Estimated gain (loss) on fair value | 1,200,000 | 163,000 | |
Mortgage servicing rights hedging | Non-designated hedges | Other Assets and Other Liabilities | |||
Derivative Financial Instruments | |||
Notional Amount | 67,500,000 | $ 35,000,000 | |
Estimated Fair Value Gain | $ 1,158,000 | ||
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | ||
Estimated Fair Value Loss | $ 163,000 | ||
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | ||
Mortgage loan pipeline commitments hedging | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | $ 1,848,000 | 524,000 | |
Mortgage loan pipeline commitments hedging | Non-designated hedges | Other Assets | |||
Derivative Financial Instruments | |||
Notional Amount | 100,500,000 | 51,000,000 | |
Estimated Fair Value Gain | $ 1,115,000 | $ 800,000 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | Noninterest Income, Other | |
Forward commitments | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | $ 100,500,000 | $ 51,000,000 | |
Fair value of forward commitments | (734,000) | 276,000 | |
Customer swaps | Cash flow hedge | |||
Derivative Financial Instruments | |||
Collateral provided | 113,200,000 | ||
Foreign exchange swaps | |||
Derivative Financial Instruments | |||
Gain or loss recorded | 0 | $ 0 | |
Interest rate swap | Fair Value Hedging | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 12,200,000 | 12,300,000 | |
Interest rate swap | Fair Value Hedging | Other Liabilities | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 12,186,000 | 12,289,000 | |
Estimated Fair Value Gain | $ 206,000 | $ 414,000 | |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | |
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Borrower | |||
Derivative Financial Instruments | |||
Notional Amount | $ 10,701,004,000 | $ 10,480,171,000 | |
Estimated Fair Value Gain | $ 28,580,000 | $ 8,539,000 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | Noninterest Income, Other | |
Estimated Fair Value Loss | $ 805,749,000 | $ 1,033,980,000 | |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | Noninterest Income, Other | |
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | $ 10,606,749,000 | $ 10,400,733,000 | |
Estimated Fair Value Gain | $ 128,227,000 | $ 201,263,000 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | ||
Estimated Fair Value Loss | $ 835,000 | ||
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other | Noninterest Income, Other |
Capital Ratios (Details)
Capital Ratios (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2020 | Jan. 01, 2019 | |
Capital ratios | ||||||
Capital conversion buffer common equity Tier 1 of risk-weighted assets (as a percent) | 2.50% | |||||
Additional allowance for credit losses for loans | $ 300,396 | $ 370,645 | $ 356,444 | $ 301,807 | ||
Deferred tax assets | 165,161 | 177,801 | ||||
Additional reserve for unfunded commitments | 85,100 | |||||
Retained earnings | 1,448,636 | 1,347,042 | ||||
Phasing out percentage | 50% | |||||
Common equity Tier 1 to risk-weighted assets | ||||||
Actual, Capital Amount | $ 3,891,155 | $ 3,788,106 | ||||
Actual, Ratio (as a percent) | 11.13% | 10.96% | ||||
Required to be considered well capitalized, Capital Amount | $ 2,271,735 | $ 2,247,530 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | ||||
Tier I capital to risk-weighted assets | ||||||
Actual, Capital Amount | $ 3,891,155 | $ 3,788,106 | ||||
Actual, Ratio (as a percent) | 0.1113 | 0.1096 | ||||
Minimum capital required, Capital Amount | $ 2,795,981 | $ 2,766,190 | ||||
Minimum capital required, Ratio (as a percent) | 0.0800 | 0.0800 | ||||
Total capital to risk-weighted assets | ||||||
Actual, Capital Amount | $ 4,647,783 | $ 4,485,397 | ||||
Actual, Ratio (as a percent) | 0.1330 | 0.1297 | ||||
Required to be considered well capitalized, Capital Amount | $ 3,494,976 | $ 3,457,738 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 0.1000 | 0.1000 | ||||
Tier I capital to average assets (leverage ratio) | ||||||
Actual, Capital Amount | $ 3,891,155 | $ 3,788,106 | ||||
Actual, Ratio (as a percent) | 0.0905 | 0.0872 | ||||
Required to be considered well capitalized, Capital Amount | $ 2,149,255 | $ 2,171,239 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 0.0500 | 0.0500 | ||||
ASU 2016-13 | ||||||
Capital ratios | ||||||
Additional allowance for credit losses for loans | $ 54,400 | |||||
Deferred tax assets | 12,600 | |||||
Retained earnings | (44,800) | |||||
ASU 2016-13 | Adjustments | ||||||
Capital ratios | ||||||
Additional reserve for unfunded commitments | $ 6,400 | |||||
SouthState Bank (the Bank) | ||||||
Common equity Tier 1 to risk-weighted assets | ||||||
Actual, Capital Amount | $ 4,165,577 | $ 4,074,045 | ||||
Actual, Ratio (as a percent) | 11.93% | 11.80% | ||||
Required to be considered well capitalized, Capital Amount | $ 2,268,697 | $ 2,244,481 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | ||||
Tier I capital to risk-weighted assets | ||||||
Actual, Capital Amount | $ 4,165,577 | $ 4,074,045 | ||||
Actual, Ratio (as a percent) | 0.1193 | 0.1180 | ||||
Minimum capital required, Capital Amount | $ 2,792,242 | $ 2,762,438 | ||||
Minimum capital required, Ratio (as a percent) | 0.0800 | 0.0800 | ||||
Total capital to risk-weighted assets | ||||||
Actual, Capital Amount | $ 4,532,206 | $ 4,381,336 | ||||
Actual, Ratio (as a percent) | 0.1299 | 0.1269 | ||||
Required to be considered well capitalized, Capital Amount | $ 3,490,303 | $ 3,453,047 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 0.1000 | 0.1000 | ||||
Tier I capital to average assets (leverage ratio) | ||||||
Actual, Capital Amount | $ 4,165,577 | $ 4,074,045 | ||||
Actual, Ratio (as a percent) | 0.0970 | 0.0939 | ||||
Required to be considered well capitalized, Capital Amount | $ 2,148,291 | $ 2,170,412 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 0.0500 | 0.0500 | ||||
Fully Phased-In | ||||||
Common equity Tier 1 to risk-weighted assets | ||||||
Minimum capital required, Capital Amount | $ 2,446,483 | $ 2,420,417 | ||||
Minimum capital required, Ratio (as a percent) | 7% | 7% | ||||
Tier I capital to risk-weighted assets | ||||||
Required to be considered well capitalized, Capital Amount | $ 2,970,730 | $ 2,939,077 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 0.0850 | 0.0850 | ||||
Total capital to risk-weighted assets | ||||||
Minimum capital required, Capital Amount | $ 3,669,725 | $ 3,630,625 | ||||
Minimum capital required, Ratio (as a percent) | 0.1050 | 0.1050 | ||||
Tier I capital to average assets (leverage ratio) | ||||||
Minimum capital required, Capital Amount | $ 1,719,404 | $ 1,736,991 | ||||
Minimum capital required, Ratio (as a percent) | 0.0400 | 0.0400 | ||||
Fully Phased-In | SouthState Bank (the Bank) | ||||||
Common equity Tier 1 to risk-weighted assets | ||||||
Minimum capital required, Capital Amount | $ 2,443,212 | $ 2,417,133 | ||||
Minimum capital required, Ratio (as a percent) | 7% | 7% | ||||
Tier I capital to risk-weighted assets | ||||||
Required to be considered well capitalized, Capital Amount | $ 2,966,757 | $ 2,935,090 | ||||
Required to be considered well capitalized, Ratio (as a percent) | 0.0850 | 0.0850 | ||||
Total capital to risk-weighted assets | ||||||
Minimum capital required, Capital Amount | $ 3,664,818 | $ 3,625,700 | ||||
Minimum capital required, Ratio (as a percent) | 0.1050 | 0.1050 | ||||
Tier I capital to average assets (leverage ratio) | ||||||
Minimum capital required, Capital Amount | $ 1,718,633 | $ 1,736,330 | ||||
Minimum capital required, Ratio (as a percent) | 0.0400 | 0.0400 | ||||
Minimum | ||||||
Common equity Tier 1 to risk-weighted assets | ||||||
Actual, Ratio (as a percent) | 4.50% | |||||
Tier I capital to risk-weighted assets | ||||||
Required to be considered well capitalized, Ratio (as a percent) | 0.06 | |||||
Total capital to risk-weighted assets | ||||||
Actual, Ratio (as a percent) | 0.04 | |||||
Tier I capital to average assets (leverage ratio) | ||||||
Actual, Ratio (as a percent) | 0.08 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 01, 2022 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,923,106 | $ 1,923,106 | |
Impairment Charges | $ 0 | ||
Atlantic Capital | |||
Goodwill [Line Items] | |||
Goodwill | $ 342,021 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of gross carrying amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Other intangible assets | |||
Gross carrying amount | $ 275,321 | $ 274,869 | |
Accumulated amortization | (165,718) | (158,419) | |
Net carrying amount | 109,603 | 116,450 | |
Amortization expense | 7,299 | $ 8,494 | |
Fair value of SBA servicing assets | $ 6,500 | $ 6,100 | |
Minimum | |||
Other intangible assets | |||
Estimated useful lives | 2 years | ||
Maximum | |||
Other intangible assets | |||
Estimated useful lives | 15 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Estimated amortization expense | ||
Net carrying amount | $ 109,603 | $ 116,450 |
Other intangibles, excluding the SBA servicing assets | ||
Estimated amortization expense | ||
June 30, 2023 | 7,028 | |
September 30, 2023 | 6,616 | |
December 31, 2023 | 6,615 | |
March 31, 2024 | 6,003 | |
June 30, 2024 | 5,739 | |
Thereafter | 71,082 | |
Net carrying amount | $ 103,083 |
Mortgage Loan Servicing, Orig_3
Mortgage Loan Servicing, Origination, and Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Mortgage Loan Servicing, Origination, and Loans Held for Sale | |||
Residential mortgages serviced for others | $ 6,600,000 | $ 6,600,000 | |
Contractually specified servicing fees earned | 4,100 | $ 3,800 | |
Mortgage servicing rights | 85,406 | $ 86,610 | |
Changes in the fair value of MSRs and its offsetting hedge. | |||
(Decrease) increase in fair value of MSRs | (1,290) | 12,827 | |
Decay of MSRs | (1,409) | (2,230) | |
Gain (loss) related to derivatives | 145 | (11,838) | |
Net effect on Consolidated Statements of Net Income | $ (2,554) | $ (1,241) | |
Characteristics and sensitivity analysis of the MSR | |||
Composition of residential loans serviced for others | 100% | 100% | |
Weighted average life (in years) | 8 years 2 months 26 days | 8 years 4 months 13 days | |
Constant Prepayment rate (CPR) (as a percent) | 6.60% | 6.40% | |
Weighted average discount rate (as a percent) | 10% | 10% | |
Effect on fair value due to change in interest rates: | |||
25 basis point increase | $ 1,012 | $ 774 | |
50 basis point increase | 1,888 | 1,428 | |
25 basis point decrease | (1,146) | (902) | |
50 basis point decrease | $ (2,422) | $ (1,938) | |
Fixed-rate mortgage loans | |||
Characteristics and sensitivity analysis of the MSR | |||
Composition of residential loans serviced for others | 100% | 100% |
Mortgage Loan Servicing, Orig_4
Mortgage Loan Servicing, Origination, and Loans Held for Sale - Mandatory cash forwards (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||
Loan sales | $ 159,400 | $ 700,700 | |
Loan securitizations and loan sales | $ 123,000 | $ 530,500 | |
Percentage of loan securitizations and loan sales | 77.20% | 75.70% | |
Loans held for sale | $ 27,289 | $ 28,968 | |
Minimum | |||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||
Loans held for sale, settlement period | 15 days | ||
Maximum | |||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||
Loans held for sale, settlement period | 45 days |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Secured Debt, Repurchase Agreements | ||
Carrying amount of securities sold under repurchase agreements with customers | $ 310,800 | $ 342,800 |
Carrying amount of the securities pledged to collateralize repurchase agreements | 8,014,663 | 8,189,780 |
Federal funds purchased | 233,354 | 213,597 |
Letter of credit outstanding | 2,100 | |
Loans | 30,325,497 | 29,821,418 |
FRB Borrowings | ||
Secured Debt, Repurchase Agreements | ||
Letter of credit outstanding | 0 | 0 |
Maximum borrowing capacity | 2,500,000 | |
Loans | 2,500,000 | |
FHLB Advances [ Member ] | ||
Secured Debt, Repurchase Agreements | ||
Outstanding advances | $ 900,000 | |
weighted average interest rate | 5.07% | |
Debt Instrument Collateral Amount | $ 6,500,000 | |
Amount of cash pledged as collateral | 355,000 | |
Letter of credit outstanding | 900,000 | |
Unused net credit available with the FHLB | 6,000,000 | |
Debt Instrument Unused Borrowing Capacity Amount | 6,900,000 | |
Asset Pledged as Collateral [Member] | ||
Secured Debt, Repurchase Agreements | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 2,400,000 | 2,600,000 |
Asset Pledged as Collateral [Member] | FRB Borrowings | ||
Secured Debt, Repurchase Agreements | ||
Financing Receivable, Pledging Purpose [Extensible Enumeration] | Federal funds purchased | |
Asset Pledged as Collateral [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Secured Debt, Repurchase Agreements | ||
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 435,500 | $ 443,200 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2023 | Apr. 27, 2022 | |
Stock repurchase program | |||
Shares authorized under repurchase program | 4,120,021 | ||
2021 Stock Repurchase Plan | |||
Stock repurchase program | |||
Number of shares repurchased | 1,012,038 | ||
Average price per share | $ 85.43 | ||
Additional shares available for repurchase | 370,021 | ||
2022 Stock Repurchase Plan | |||
Stock repurchase program | |||
Shares authorized under repurchase program | 0 | 3,750,000 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | ||
Apr. 27, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Subsequent Events | |||
Cash dividends declared (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.49 |