DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
DOCUMENT AND ENTITY INFORMATION | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-39085 | |
Entity Registrant Name | HBT Financial, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 37-1117216 | |
Entity Address, Address Line One | 401 North Hershey Rd | |
Entity Address, City or Town | Bloomington | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 61704 | |
City Area Code | 888 | |
Local Phone Number | 897-2276 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | HBT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,366,459 | |
Entity Central Index Key | 0000775215 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 22,976 | $ 24,912 |
Interest-bearing deposits with banks | 406,760 | 287,539 |
Cash and cash equivalents | 429,736 | 312,451 |
Debt securities available-for-sale, at fair value | 856,835 | 922,869 |
Debt securities held-to-maturity (fair value of $195,608 in 2021 and $72,441 in 2020) | 192,994 | 68,395 |
Equity securities with readily determinable fair value | 3,332 | 3,292 |
Equity securities with no readily determinable fair value | 1,552 | 1,552 |
Restricted stock, at cost | 2,498 | 2,498 |
Loans held for sale | 12,882 | 14,713 |
Loans, net of allowance for loan losses of $28,759 in 2021 and $31,838 in 2020 | 2,241,946 | 2,215,168 |
Bank premises and equipment, net | 52,548 | 52,904 |
Bank premises held for sale | 121 | 121 |
Foreclosed assets | 4,748 | 4,168 |
Goodwill | 23,620 | 23,620 |
Core deposit intangible assets, net | 2,509 | 2,798 |
Mortgage servicing rights, at fair value | 7,629 | 5,934 |
Investments in unconsolidated subsidiaries | 1,165 | 1,165 |
Accrued interest receivable | 12,718 | 14,255 |
Other assets | 18,781 | 20,664 |
Total assets | 3,865,614 | 3,666,567 |
Deposits: | ||
Noninterest-bearing | 968,991 | 882,939 |
Interest-bearing | 2,386,975 | 2,247,595 |
Total deposits | 3,355,966 | 3,130,534 |
Securities sold under agreements to repurchase | 41,976 | 45,736 |
Subordinated notes | 39,257 | 39,238 |
Junior subordinated debentures issued to capital trusts | 37,665 | 37,648 |
Other liabilities | 33,344 | 49,494 |
Total liabilities | 3,508,208 | 3,302,650 |
COMMITMENTS AND CONTINGENCIES (Notes 7 and 18) | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | ||
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 27,477,531 in 2021 and 27,457,306 in 2020; shares outstanding of 27,382,069 in 2021 and 27,457,306 in 2020 | 275 | 275 |
Surplus | 191,004 | 190,875 |
Retained earnings | 165,735 | 154,614 |
Accumulated other comprehensive income | 1,906 | 18,153 |
Treasury stock at cost, 95,462 shares in 2021 | (1,514) | |
Total stockholders' equity | 357,406 | 363,917 |
Total liabilities and stockholders' equity | $ 3,865,614 | $ 3,666,567 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Stockholders' Equity | ||
Debt securities held-to-maturity | $ 195,608 | $ 72,441 |
Allowance for loan losses | $ 28,759 | $ 31,838 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 27,477,531 | 27,457,306 |
Common stock, shares outstanding | 27,382,069 | 27,457,306 |
Treasury stock ,shares | 95,462 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Loans, including fees: | ||
Taxable | $ 25,134 | $ 26,941 |
Federally tax exempt | 610 | 674 |
Securities: | ||
Taxable | 3,633 | 3,334 |
Federally tax exempt | 1,136 | 1,028 |
Interest-bearing deposits in bank | 80 | 729 |
Other interest and dividend income | 13 | 14 |
Total interest and dividend income | 30,606 | 32,720 |
INTEREST EXPENSE | ||
Deposits | 644 | 1,595 |
Securities sold under agreements to repurchase | 7 | 20 |
Borrowings | 1 | |
Subordinated notes | 470 | |
Junior subordinated debentures issued to capital trusts | 355 | 443 |
Total interest expense | 1,477 | 2,058 |
Net interest income | 29,129 | 30,662 |
PROVISION FOR LOAN LOSSES | (3,405) | 4,355 |
Net interest income after provision for loan losses | 32,534 | 26,307 |
NONINTEREST INCOME | ||
Mortgage servicing | 685 | 724 |
Mortgage servicing rights fair value adjustment | 1,695 | (2,171) |
Gains on sale of mortgage loans | 2,100 | 536 |
Gains (losses) on securities | 40 | (52) |
Gains (losses) on foreclosed assets | (76) | 35 |
Gains (losses) on other assets | 1 | (3) |
Other noninterest income | 836 | 743 |
Total noninterest income | 10,808 | 5,252 |
NONINTEREST EXPENSE | ||
Salaries | 12,596 | 12,754 |
Employee benefits | 1,722 | 2,434 |
Occupancy of bank premises | 1,938 | 1,828 |
Furniture and equipment | 623 | 603 |
Data processing | 1,688 | 1,586 |
Marketing and customer relations | 565 | 1,044 |
Amortization of intangible assets | 289 | 317 |
FDIC insurance | 240 | 36 |
Loan collection and servicing | 365 | 348 |
Foreclosed assets | 143 | 89 |
Other noninterest expense | 2,375 | 2,268 |
Total noninterest expense | 22,544 | 23,307 |
INCOME BEFORE INCOME TAX EXPENSE | 20,798 | 8,252 |
INCOME TAX EXPENSE | 5,553 | 2,031 |
NET INCOME | $ 15,245 | $ 6,221 |
EARNINGS PER SHARE - BASIC | $ 0.55 | $ 0.23 |
EARNINGS PER SHARE - DILUTED | $ 0.55 | $ 0.23 |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | 27,430,912 | 27,457,306 |
Card income | ||
NONINTEREST INCOME | ||
Revenue | $ 2,258 | $ 1,792 |
Service charges on deposit accounts | ||
NONINTEREST INCOME | ||
Revenue | 1,297 | 1,834 |
Wealth management fees | ||
NONINTEREST INCOME | ||
Revenue | $ 1,972 | $ 1,814 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
NET INCOME | $ 15,245 | $ 6,221 |
OTHER COMPREHENSIVE (LOSS) INCOME | ||
Unrealized (losses) gains on debt securities available-for-sale | (23,074) | 7,602 |
Reclassification adjustment for amortization (accretion) of net unrealized gain (loss) on debt securities transferred to held-to-maturity | 32 | (9) |
Unrealized gains (losses) on derivative instruments | 219 | (970) |
Reclassification adjustment for net settlements on derivative instruments | 99 | 2 |
Total other comprehensive (loss) income, before tax | (22,724) | 6,625 |
Income tax (benefit) expense | (6,477) | 1,888 |
Total other comprehensive (loss) income | (16,247) | 4,737 |
TOTAL COMPREHENSIVE (LOSS) INCOME | $ (1,002) | $ 10,958 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2019 | $ 275 | $ 190,524 | $ 134,287 | $ 7,832 | $ 332,918 | |
Balance (in shares) at Dec. 31, 2019 | 27,457,306 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,221 | 6,221 | ||||
Other comprehensive income (loss) | 4,737 | 4,737 | ||||
Stock-based compensation | 67 | 67 | ||||
Cash dividends and dividend equivalents | (4,130) | (4,130) | ||||
Balance at Mar. 31, 2020 | $ 275 | 190,591 | 136,378 | 12,569 | 339,813 | |
Balance (in shares) at Mar. 31, 2020 | 27,457,306 | |||||
Balance at Dec. 31, 2020 | $ 275 | 190,875 | 154,614 | 18,153 | 363,917 | |
Balance (in shares) at Dec. 31, 2020 | 27,457,306 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,245 | 15,245 | ||||
Other comprehensive income (loss) | (16,247) | (16,247) | ||||
Stock-based compensation | 129 | 129 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 20,225 | |||||
Repurchase of common stock | $ (1,514) | (1,514) | ||||
Repurchase of common stock (in shares) | (95,462) | |||||
Cash dividends and dividend equivalents | (4,124) | (4,124) | ||||
Balance at Mar. 31, 2021 | $ 275 | $ 191,004 | $ 165,735 | $ 1,906 | $ (1,514) | $ 357,406 |
Balance (in shares) at Mar. 31, 2021 | 27,382,069 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Transactions, Parenthetical Disclosures [Abstract] | ||
Cash dividends | $ 0.15 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 15,245 | $ 6,221 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 774 | 690 |
Provision for loan losses | (3,405) | 4,355 |
Net amortization of debt securities | 1,732 | 790 |
Amortization of unrealized gain on dedesignated cash flow hedge | (32) | |
Deferred income tax expense (benefit) | 685 | (678) |
Stock-based compensation | 129 | 67 |
Net accretion of discount and deferred loan fees on loans | (2,562) | (922) |
Net unrealized (gain) loss on equity securities | (40) | 52 |
Net loss on sales of bank premises and equipment | 3 | |
Net loss (gain) on sales of foreclosed assets | 3 | (75) |
Write-down of foreclosed assets | 73 | 47 |
Amortization of intangibles | 289 | 317 |
(Increase) decrease in mortgage servicing rights | (1,695) | 2,171 |
Amortization of discount and issuance costs on subordinated notes and debentures | 36 | 16 |
Mortgage loans originated for sale | (71,835) | (32,156) |
Proceeds from sale of mortgage loans | 75,766 | 32,418 |
Net gain on sale of mortgage loans | (2,100) | (536) |
Decrease in accrued interest receivable | 1,537 | 1,855 |
Decrease in other assets | 875 | 887 |
Decrease in other liabilities | (9,032) | (2,971) |
Net cash provided by operating activities | 6,475 | 12,519 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net change in interest-bearing time deposits with banks | 248 | |
Proceeds from paydowns, maturities, and calls of debt securities | 59,641 | 48,305 |
Purchase of securities | (142,980) | (56,349) |
Net increase (decrease) in loans | (21,482) | 31,210 |
Purchases of bank premises and equipment | (418) | (841) |
Proceeds from sales of foreclosed assets | 15 | 677 |
Net cash (used in) provided by investing activities | (105,224) | 23,250 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 225,432 | (46,552) |
Net decrease in repurchase agreements | (3,760) | (3,622) |
Repurchase of common stock | (1,514) | |
Cash dividends and dividend equivalents paid | (4,124) | (4,130) |
Net cash provided by (used in) financing activities | 216,034 | (54,304) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 117,285 | (18,535) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 312,451 | 283,971 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 429,736 | 265,436 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 2,077 | 2,166 |
Cash paid for income taxes | 985 | |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES | ||
Transfers of loans to foreclosed assets | $ 671 | $ 19 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
ACCOUNTING POLICIES | |
ACCOUNTING POLICIES | NOTE 1 – ACCOUNTING POLICIES Basis of Presentation HBT Financial, Inc. (the Company) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (the Bank or Heartland Bank). The Bank provides a comprehensive suite of business, commercial, wealth management and retail banking products and services to individuals, businesses, and municipal entities throughout Central and Northeastern Illinois. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with generally accepted accounting principles (GAAP) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 12, 2021. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (JOBS Act). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies. Merger of State Bank of Lincoln into Heartland Bank On October 20, 2020, Heartland Bank and State Bank of Lincoln, both wholly-owned bank subsidiaries of the Company on that date, entered into a Bank Merger Agreement providing for the merger of State Bank of Lincoln into Heartland Bank. The merger was consummated on December 31, 2020, resulting in Heartland Bank being our sole bank subsidiary, with the branch locations in Lincoln, Illinois operating as “State Bank of Lincoln, a division of Heartland Bank and Trust Company.” Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, goodwill, and income taxes. Segment Reporting The Company’s operations consist of one reportable segment called community banking. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity. Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2021 | |
SECURITIES | |
SECURITIES | NOTE 2 – SECURITIES The carrying balances of the securities were as follows: March 31, December 31, 2021 2020 (dollars in thousands) Debt securities available-for-sale $ 856,835 $ 922,869 Debt securities held-to-maturity 192,994 68,395 Equity securities with readily determinable fair value 3,332 3,292 Equity securities with no readily determinable fair value 1,552 1,552 Total securities $ 1,054,713 $ 996,108 There were no sales of securities during the three months ended March 31, 2021 and 2020. Gains (losses) on securities were as follows during the three months ended March 31: Three Months Ended March 31, 2021 2020 (dollars in thousands) Net realized gains (losses) on sales $ — $ — Net unrealized gains (losses) on equity securities: Readily determinable fair value 40 (52) No readily determinable fair value — — Gains (losses) on securities $ 40 $ (52) On March 31, 2021, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market value volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category: Amortized Cost Fair Value (dollars in thousands) U.S. government agency $ 7,593 $ 7,323 Mortgage-backed: Agency residential 8,776 8,536 Agency commercial 118,792 113,861 Total $ 135,161 $ 129,720 The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income, but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security. Debt Securities The amortized cost and fair values of debt securities, with gross unrealized gains and losses, are as follows: March 31, 2021 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 129,494 $ 1,785 $ (3,341) $ 127,938 Municipal 280,212 6,479 (4,358) 282,333 Mortgage-backed: Agency residential 164,942 4,366 (204) 169,104 Agency commercial 208,692 2,861 (3,556) 207,997 Corporate 67,959 1,950 (446) 69,463 Total available-for-sale 851,299 17,441 (11,905) 856,835 Held-to-maturity: U.S. government agency 7,323 — — 7,323 Municipal 21,067 1,188 — 22,255 Mortgage-backed: Agency residential 20,335 388 — 20,723 Agency commercial 144,269 1,323 (285) 145,307 Total held-to-maturity 192,994 2,899 (285) 195,608 Total debt securities $ 1,044,293 $ 20,340 $ (12,190) $ 1,052,443 December 31, 2020 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 118,282 $ 3,720 $ (9) $ 121,993 Municipal 265,309 9,232 (280) 274,261 Mortgage-backed: Agency residential 198,543 4,871 (162) 203,252 Agency commercial 246,649 4,651 (534) 250,766 Corporate 70,917 1,786 (106) 72,597 Total available-for-sale 899,700 24,260 (1,091) 922,869 Held-to-maturity: Municipal 22,484 1,390 — 23,874 Mortgage-backed: Agency residential 13,031 452 — 13,483 Agency commercial 32,880 2,222 (18) 35,084 Total held-to-maturity 68,395 4,064 (18) 72,441 Total debt securities $ 968,095 $ 28,324 $ (1,109) $ 995,310 As of March 31, 2021 and December 31, 2020, the Bank had debt securities with a carrying value of $283,967,000 and $308,064,000, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The Company has no direct exposure to the State of Illinois, but approximately 43% of the obligations of local municipalities portfolio consists of debt securities issued by municipalities located in Illinois as of March 31, 2021. Approximately 94% of such debt securities were general obligation issues as of March 31, 2021. The amortized cost and fair value of debt securities by contractual maturity, as of March 31, 2021, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Fair Value Amortized Fair Value (dollars in thousands) Due in 1 year or less $ 31,406 $ 31,734 $ 2,772 $ 2,817 Due after 1 year through 5 years 76,138 78,807 12,000 12,770 Due after 5 years through 10 years 242,096 242,487 13,227 13,580 Due after 10 years 128,025 126,706 391 411 Mortgage-backed: Agency residential 164,942 169,104 20,335 20,723 Agency commercial 208,692 207,997 144,269 145,307 Total $ 851,299 $ 856,835 $ 192,994 $ 195,608 The following tables present gross unrealized losses and fair value of debt securities, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position, as of March 31, 2021 and December 31, 2020: Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total March 31, 2021 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (3,341) $ 80,395 $ — $ — $ (3,341) $ 80,395 Municipal (4,358) 119,502 — — (4,358) 119,502 Mortgage-backed: Agency residential (165) 26,810 (39) 3,594 (204) 30,404 Agency commercial (3,556) 119,719 — — (3,556) 119,719 Corporate (446) 7,009 — — (446) 7,009 Total available-for-sale (11,866) 353,435 (39) 3,594 (11,905) 357,029 Held-to-maturity: Mortgage-backed: Agency commercial (285) 7,669 — — (285) 7,669 Total held-to-maturity (285) 7,669 — — (285) 7,669 Total debt securities $ (12,151) $ 361,104 $ (39) $ 3,594 $ (12,190) $ 364,698 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2020 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (9) $ 5,919 $ — $ — $ (9) $ 5,919 Municipal (280) 19,652 — — (280) 19,652 Mortgage-backed: Agency residential (142) 20,387 (20) 4,490 (162) 24,877 Agency commercial (524) 57,126 (10) 3,449 (534) 60,575 Corporate (106) 4,849 — — (106) 4,849 Total available-for-sale (1,061) 107,933 (30) 7,939 (1,091) 115,872 Held-to-maturity: Mortgage-backed: Agency commercial (18) 2,983 — — (18) 2,983 Total held-to-maturity (18) 2,983 — — (18) 2,983 Total debt securities $ (1,079) $ 110,916 $ (30) $ 7,939 $ (1,109) $ 118,855 As of March 31, 2021, there were 14 debt securities in an unrealized loss position for a period of twelve months or more, and 184 debt securities in an unrealized loss position for a period of less than twelve months. These unrealized losses are primarily a result of fluctuations in market interest rates. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management believes that all declines in value of these debt securities are deemed to be temporary. Equity Securities The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows: Readily No Readily Determinable Determinable March 31, 2021 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,098 $ 1,717 Cumulative net unrealized gains (losses) 234 (165) Carrying value $ 3,332 $ 1,552 Readily No Readily Determinable Determinable December 31, 2020 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,098 $ 1,717 Cumulative net unrealized gains (losses) 194 (165) Carrying value $ 3,292 $ 1,552 As of March 31, 2021 and December 31, 2020, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect downward adjustments based on observable price changes of an identical investment. There have been no impairments or upward adjustments based on observable price changes to equity securities with no readily determinable fair value. |
LOANS AND THE ALLOWANCE FOR LOA
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2021 | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | NOTE 3 – LOANS AND THE ALLOWANCE FOR LOAN LOSSES Major categories of loans are summarized as follows: March 31, December 31, 2021 2020 (dollars in thousands) Commercial and industrial $ 412,812 $ 393,312 Agricultural and farmland 228,032 222,723 Commercial real estate - owner occupied 224,599 222,360 Commercial real estate - non-owner occupied 516,963 520,395 Multi-family 236,381 236,391 Construction and land development 215,375 225,652 One-to-four family residential 300,768 306,775 Municipal, consumer, and other 135,775 119,398 Loans, before allowance for loan losses 2,270,705 2,247,006 Allowance for loan losses (28,759) (31,838) Loans, net of allowance for loan losses $ 2,241,946 $ 2,215,168 Paycheck Protection Program (PPP) loans (included above) Commercial and industrial $ 175,389 $ 153,860 Agricultural and farmland 8,921 3,049 Municipal, consumer, and other 6,249 6,587 Total PPP loans $ 190,559 $ 163,496 The following tables detail activity in the allowance for loan losses for the three months ended March 31: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Three Months Ended March 31, 2021 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2020 $ 3,929 $ 793 $ 3,141 $ 11,251 $ 1,957 $ 4,232 $ 1,801 $ 4,734 $ 31,838 Provision for loan losses (1,802) 72 (426) 72 133 (316) (198) (940) (3,405) Charge-offs — — — — — — (72) (123) (195) Recoveries 293 — — 7 — 90 42 89 521 Balance, March 31, 2021 $ 2,420 $ 865 $ 2,715 $ 11,330 $ 2,090 $ 4,006 $ 1,573 $ 3,760 $ 28,759 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Consumer and and Owner Non-owner Construction Residential and Three Months Ended March 31, 2020 Industrial Farmland Occupied Occupied Multi-Family and Land Real Estate Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2019 $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 Provision for loan losses 538 254 (97) 820 450 237 777 1,376 4,355 Charge-offs (809) (27) — (56) — (1) (104) (224) (1,221) Recoveries 54 — 440 5 — 10 71 74 654 Balance, March 31, 2020 $ 4,224 $ 2,993 $ 2,122 $ 4,432 $ 1,474 $ 3,223 $ 3,284 $ 4,335 $ 26,087 The following tables present the recorded investments in loans and the allowance for loan losses by category: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and March 31, 2021 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 408,664 $ 226,668 $ 204,327 $ 477,116 $ 234,257 $ 208,835 $ 283,562 $ 122,266 $ 2,165,695 Individually evaluated for impairment 3,230 548 12,680 25,871 874 4,165 9,443 13,455 70,266 Acquired with deteriorated credit quality 918 816 7,592 13,976 1,250 2,375 7,763 54 34,744 Total $ 412,812 $ 228,032 $ 224,599 $ 516,963 $ 236,381 $ 215,375 $ 300,768 $ 135,775 $ 2,270,705 Allowance for loan losses: Collectively evaluated for impairment $ 1,218 $ 845 $ 2,032 $ 6,947 $ 2,080 $ 3,846 $ 1,091 $ 1,328 $ 19,387 Individually evaluated for impairment 1,095 19 420 4,142 — 144 479 2,431 8,730 Acquired with deteriorated credit quality 107 1 263 241 10 16 3 1 642 Total $ 2,420 $ 865 $ 2,715 $ 11,330 $ 2,090 $ 4,006 $ 1,573 $ 3,760 $ 28,759 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 387,072 $ 217,077 $ 201,417 $ 480,165 $ 234,252 $ 219,822 $ 287,845 $ 105,796 $ 2,133,446 Individually evaluated for impairment 5,312 4,793 13,132 25,993 876 3,809 10,343 13,546 77,804 Acquired with deteriorated credit quality 928 853 7,811 14,237 1,263 2,021 8,587 56 35,756 Total $ 393,312 $ 222,723 $ 222,360 $ 520,395 $ 236,391 $ 225,652 $ 306,775 $ 119,398 $ 2,247,006 Allowance for loan losses: Collectively evaluated for impairment $ 2,736 $ 771 $ 2,306 $ 6,736 $ 1,950 $ 3,984 $ 1,237 $ 1,432 $ 21,152 Individually evaluated for impairment 1,193 22 429 4,255 — 222 560 3,301 9,982 Acquired with deteriorated credit quality — — 406 260 7 26 4 1 704 Total $ 3,929 $ 793 $ 3,141 $ 11,251 $ 1,957 $ 4,232 $ 1,801 $ 4,734 $ 31,838 The following tables present loans individually evaluated for impairment by category of loans: Unpaid Principal Recorded Related March 31, 2021 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,252 $ 2,240 $ 1,095 Agricultural and farmland 166 165 19 Commercial real estate - owner occupied 3,156 3,121 420 Commercial real estate - non-owner occupied 20,605 20,256 4,142 Multi-family — — — Construction and land development 2,229 2,196 144 One-to-four family residential 2,835 2,587 479 Municipal, consumer, and other 8,770 8,744 2,431 Total $ 40,013 $ 39,309 $ 8,730 With no related allowance: Commercial and industrial $ 1,738 $ 990 $ — Agricultural and farmland 383 383 — Commercial real estate - owner occupied 9,635 9,559 — Commercial real estate - non-owner occupied 5,747 5,615 — Multi-family 874 874 — Construction and land development 1,978 1,969 — One-to-four family residential 8,556 6,856 — Municipal, consumer, and other 4,774 4,711 — Total $ 33,685 $ 30,957 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 3,990 $ 3,230 $ 1,095 Agricultural and farmland 549 548 19 Commercial real estate - owner occupied 12,791 12,680 420 Commercial real estate - non-owner occupied 26,352 25,871 4,142 Multi-family 874 874 — Construction and land development 4,207 4,165 144 One-to-four family residential 11,391 9,443 479 Municipal, consumer, and other 13,544 13,455 2,431 Total $ 73,698 $ 70,266 $ 8,730 Unpaid Principal Recorded Related December 31, 2020 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,737 $ 2,725 $ 1,193 Agricultural and farmland 169 168 22 Commercial real estate - owner occupied 3,072 3,040 429 Commercial real estate - non-owner occupied 20,726 20,394 4,255 Multi-family — — — Construction and land development 2,081 2,055 222 One-to-four family residential 2,963 2,739 560 Municipal, consumer, and other 12,207 12,181 3,301 Total $ 43,955 $ 43,302 $ 9,982 With no related allowance: Commercial and industrial $ 3,322 $ 2,587 $ — Agricultural and farmland 4,625 4,625 — Commercial real estate - owner occupied 10,164 10,092 — Commercial real estate - non-owner occupied 5,727 5,599 — Multi-family 876 876 — Construction and land development 1,762 1,754 — One-to-four family residential 9,325 7,604 — Municipal, consumer, and other 1,431 1,365 — Total $ 37,232 $ 34,502 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 6,059 $ 5,312 $ 1,193 Agricultural and farmland 4,794 4,793 22 Commercial real estate - owner occupied 13,236 13,132 429 Commercial real estate - non-owner occupied 26,453 25,993 4,255 Multi-family 876 876 — Construction and land development 3,843 3,809 222 One-to-four family residential 12,288 10,343 560 Municipal, consumer, and other 13,638 13,546 3,301 Total $ 81,187 $ 77,804 $ 9,982 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans during the three months ended March 31: Three Months Ended March 31, 2021 2020 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,266 $ 31 $ 3,486 $ 49 Agricultural and farmland 168 2 573 4 Commercial real estate - owner occupied 3,244 41 828 11 Commercial real estate - non-owner occupied 20,361 208 99 2 Multi-family — — — — Construction and land development 2,248 27 3,064 41 One-to-four family residential 2,644 23 3,261 27 Municipal, consumer, and other 8,802 40 12,487 83 Total $ 39,733 $ 372 $ 23,798 $ 217 With no related allowance: Commercial and industrial $ 1,068 $ 14 $ 5,941 $ 58 Agricultural and farmland 383 6 12,520 161 Commercial real estate - owner occupied 9,600 122 10,432 131 Commercial real estate - non-owner occupied 5,665 68 3,340 41 Multi-family 876 10 — — Construction and land development 1,764 26 324 4 One-to-four family residential 6,981 49 8,344 62 Municipal, consumer, and other 4,746 22 1,370 56 Total $ 31,083 $ 317 $ 42,271 $ 513 Total loans individually evaluated for impairment: Commercial and industrial $ 3,334 $ 45 $ 9,427 $ 107 Agricultural and farmland 551 8 13,093 165 Commercial real estate - owner occupied 12,844 163 11,260 142 Commercial real estate - non-owner occupied 26,026 276 3,439 43 Multi-family 876 10 — — Construction and land development 4,012 53 3,388 45 One-to-four family residential 9,625 72 11,605 89 Municipal, consumer, and other 13,548 62 13,857 139 Total $ 70,816 $ 689 $ 66,069 $ 730 The following tables present the recorded investment in loans by category based on current payment and accrual status: Accruing Interest 30 - 89 Days 90+ Days Total March 31, 2021 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 412,005 $ — $ — $ 807 $ 412,812 Agricultural and farmland 228,032 — — — 228,032 Commercial real estate - owner occupied 224,026 — — 573 224,599 Commercial real estate - non-owner occupied 512,889 92 — 3,982 516,963 Multi-family 236,381 — — — 236,381 Construction and land development 215,221 15 — 139 215,375 One-to-four family residential 296,530 706 29 3,503 300,768 Municipal, consumer, and other 135,550 113 10 102 135,775 Total $ 2,260,634 $ 926 $ 39 $ 9,106 $ 2,270,705 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2020 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 392,490 $ — $ — $ 822 $ 393,312 Agricultural and farmland 222,723 — — — 222,723 Commercial real estate - owner occupied 221,308 112 — 940 222,360 Commercial real estate - non-owner occupied 516,387 — — 4,008 520,395 Multi-family 236,391 — — — 236,391 Construction and land development 225,508 — — 144 225,652 One-to-four family residential 301,282 984 595 3,914 306,775 Municipal, consumer, and other 119,055 211 21 111 119,398 Total $ 2,235,144 $ 1,307 $ 616 $ 9,939 $ 2,247,006 The following tables present total loans by category based on their assigned risk ratings determined by management: March 31, 2021 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 392,957 $ 15,734 $ 4,121 $ — $ 412,812 Agricultural and farmland 196,773 29,994 1,265 — 228,032 Commercial real estate - owner occupied 180,381 31,165 13,053 — 224,599 Commercial real estate - non-owner occupied 429,273 58,874 28,816 — 516,963 Multi-family 208,800 26,707 874 — 236,381 Construction and land development 182,730 28,480 4,165 — 215,375 One-to-four family residential 276,413 13,839 10,516 — 300,768 Municipal, consumer, and other 121,991 330 13,454 — 135,775 Total $ 1,989,318 $ 205,123 $ 76,264 $ — $ 2,270,705 December 31, 2020 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 368,843 $ 18,258 $ 6,211 $ — $ 393,312 Agricultural and farmland 191,662 25,540 5,521 — 222,723 Commercial real estate - owner occupied 176,823 31,990 13,547 — 222,360 Commercial real estate - non-owner occupied 432,752 58,699 28,944 — 520,395 Multi-family 204,449 31,066 876 — 236,391 Construction and land development 193,646 28,193 3,813 — 225,652 One-to-four family residential 280,198 14,526 12,051 — 306,775 Municipal, consumer, and other 105,539 312 13,547 — 119,398 Total $ 1,953,912 $ 208,584 $ 84,510 $ — $ 2,247,006 There were no troubled debt restructurings during the three months ended March 31, 2021 and 2020. Of the troubled debt restructurings entered into during the last 12 months, there were none which had subsequent payment defaults during the three months ended March 31, 2021 and 2020. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due as to interest or principal or were on nonaccrual status subsequent to restructuring. As of March 31, 2021 and December 31, 2020, the Company had $8,673,000 and $8,950,000 of troubled debt restructurings, respectively. Restructured loans are evaluated for impairment quarterly as part of the Company’s determination of the allowance for loan losses. There were no material commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings. The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), along with a joint statement issued by banking regulatory agencies, provided that short-term loan payment modifications to borrowers experiencing financial hardship due to COVID-19 generally do not need to be accounted for as a troubled debt restructuring. As of March 31, 2021 and December 31, 2020, the Company had loans that were granted a payment modification due to a COVID-19 related financial hardship and have not returned to regular payments were $16,697,000 and $27,986,000, respectively. Substantially all modifications were in the form of a three-month interest-only period or a one-month payment deferral. Some borrowers have received more than one loan payment modification. Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows: Three Months Ended March 31, 2021 2020 (dollars in thousands) Beginning balance $ 1,397 $ 1,662 Reclassification from non-accretable difference 74 8 Accretion income (133) (160) Ending balance $ 1,338 $ 1,510 |
LOAN SERVICING
LOAN SERVICING | 3 Months Ended |
Mar. 31, 2021 | |
LOAN SERVICING | |
LOAN SERVICING | NOTE 4 – LOAN SERVICING Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1,077,291,000 and $1,090,219,000 as of March 31, 2021 and December 31, 2020, respectively. Activity in mortgage servicing rights is as follows: Three Months Ended March 31, 2021 2020 (dollars in thousands) Beginning balance $ 5,934 $ 8,518 Capitalized servicing rights 397 214 Fair value adjustment: Attributable to payments and principal reductions (467) (403) Attributable to changes in valuation inputs and assumptions 1,765 (1,982) Total fair value adjustment 1,298 (2,385) Ending balance $ 7,629 $ 6,347 |
FORECLOSED ASSETS
FORECLOSED ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
FORECLOSED ASSETS | |
FORECLOSED ASSETS | NOTE 5 – FORECLOSED ASSETS Foreclosed assets activity is as follows: Three Months Ended March 31, 2021 2020 (dollars in thousands) Beginning balance $ 4,168 $ 5,099 Transfers from loans 671 19 Proceeds from sales (15) (677) Net gain (loss) on sales (3) 75 Direct write-downs (73) (47) Ending balance $ 4,748 $ 4,469 Gains (losses) on foreclosed assets includes the following: Three Months Ended March 31, 2021 2020 (dollars in thousands) Direct write-downs $ (73) $ (47) Net gain (loss) on sales (3) 75 Guarantee reimbursements — 7 Gains (losses) on foreclosed assets $ (76) $ 35 The carrying value of foreclosed one-to-four family residential real estate property as of March 31, 2021 and December 31, 2020, was $1,341,000 and $868,000, respectively. As of March 31, 2021, there were 8 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $947,000. As of December 31, 2020, there were 11 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $1,526,000. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2021 | |
DEPOSITS | |
DEPOSITS | NOTE 6 – DEPOSITS The Company’s deposits are summarized below: March 31, 2021 December 31, 2020 (dollars in thousands) Noninterest-bearing deposits $ 968,991 $ 882,939 Interest-bearing deposits: Interest-bearing demand 1,008,954 968,592 Money market 499,088 462,056 Savings 593,472 517,473 Time 285,461 299,474 Total interest-bearing deposits 2,386,975 2,247,595 Total deposits $ 3,355,966 $ 3,130,534 Money market deposits include $6,853,000 and $6,489,000 of reciprocal transaction deposits as of March 31, 2021 and December 31, 2020, respectively. Time deposits include $2,687,000 and $3,164,000 of reciprocal time deposits as of March 31, 2021 and December 31, 2020, respectively. The aggregate amounts of time deposits in denominations of $250,000 or more amounted to $21,900,000 and $26,687,000 as of March 31, 2021 and December 31, 2020, respectively. The aggregate amounts of time deposits in denominations of $100,000 or more amounted to $92,266,000 and $99,649,000 as of March 31, 2021 and December 31, 2020, respectively. The components of interest expense on deposits are as follows: Three Months Ended March 31, 2021 2020 (dollars in thousands) Interest-bearing demand $ 117 $ 251 Money market 89 394 Savings 41 70 Time 397 880 Total interest expense on deposits $ 644 $ 1,595 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2021 | |
BORROWINGS | |
BORROWINGS | NOTE 7 – BORROWINGS There were no Federal Home Loan Bank of Chicago (FHLB) borrowings outstanding as of March 31, 2021 and December 31, 2020. Available borrowings from the FHLB are secured by FHLB stock held by the Company and pledged security in the form of qualifying loans. The total amount of loans pledged as of March 31, 2021 and December 31, 2020 was $499,886,000 and $493,690,000, respectively. As of March 31, 2021 and December 31, 2020, loans pledged also served as collateral for credit exposure of approximately $355,000 associated with the Bank’s participation in the FHLB’s Mortgage Partnership Finance Program. The Bank also has available borrowings through the discount window of the Federal Reserve Bank of Chicago (FRB). Available borrowings are based on the collateral pledged. As of March 31, 2021 and December 31, 2020, the carrying value of debt securities pledged amounted to $479,000 and $499,000, respectively. There was no outstanding borrowings under the FRB discount window as of March 31, 2021 and December 31, 2020. |
SUBORDINATED NOTES
SUBORDINATED NOTES | 3 Months Ended |
Mar. 31, 2021 | |
SUBORDINATED NOTES | |
SUBORDINATED NOTES | NOTE 8 – SUBORDINATED NOTES On September 3, 2020, the Company issued $40,000,000 of fixed-to-floating rate subordinated notes that mature on September 15, 2030. The subordinated notes, which are unsecured obligations of the Company, bear a fixed interest rate of 4.50% for the first five years after issuance and thereafter bear interest at a floating rate equal to three-month SOFR, as determined on the Floating Interest Determination Date, plus 4.37%. Interest is payable semi-annually during the five year fixed rate period and quarterly during the subsequent five year floating rate period. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after September 15, 2025. If the subordinated notes are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The transaction resulted in debt issuance costs of $789,000 which will be amortized over 10 years. As of March 31, 2021 and December 31, 2020, 100% of the subordinated notes qualified as Tier 2 capital. The face value and carrying value of the subordinated notes are summarized below: March 31, 2021 December 31, 2020 (dollars in thousands) Subordinated notes, at face value $ 40,000 $ 40,000 Unamortized issuance costs (743) (762) Subordinated notes, at carrying value $ 39,257 $ 39,238 |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | 3 Months Ended |
Mar. 31, 2021 | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | NOTE 9 – JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS Five subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company. The Company owns all of the outstanding stock of the five subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“junior subordinated debentures”) issued by the Company. These junior subordinated debentures are the only assets of the trusts and the interest payments from the junior subordinated debentures finance the distributions paid on the capital securities. The junior subordinated debentures are unsecured and rank junior and subordinate in the right of payment to all senior debt of the Company. The trusts are not consolidated in the Company’s financial statements. The face and carrying value of junior subordinated debentures are summarized below: March 31, 2021 December 31, 2020 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 FFBI Capital Trust I 7,217 7,217 National Bancorp Statutory Trust I 5,773 5,773 Total junior subordinated debentures, at face value 38,765 38,765 National Bancorp Statutory Trust I unamortized discount (1,100) (1,117) Total junior subordinated debentures, at carrying value $ 37,665 $ 37,648 The interest rates on the junior subordinated debentures are variable, reset quarterly, and are equal to the three-month LIBOR, as determined on the LIBOR Determination Date specific to each junior subordinated debenture, plus a fixed percentage. The interest rates and maturities of the junior subordinated debentures are summarized as follows: Interest Rate at Variable March 31, December 31, Maturity Interest Rate 2021 2020 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 2.99 % 2.99 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 1.71 1.75 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 1.53 1.57 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 3.04 3.04 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 3.08 3.12 December 31, 2037 The distribution rate payable on the junior subordinated debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events in default, to defer payments of interest on the junior subordinated debentures at any time by extending the interest payment period for a period not exceeding 20 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the junior subordinated debentures. The capital securities are subject to mandatory redemption upon payment of the junior subordinated debentures and carry an interest rate identical to that of the related junior subordinated debenture. The junior subordinated debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the debentures or the capital securities. If the junior subordinated debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The Company has the right to terminate each Capital Trust and cause the junior subordinated debentures to be distributed to the holders of the capital securities in liquidation of such trusts. Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of March 31, 2021 and December 31, 2020, 100%of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 10 – DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Interest Rate Swaps Designated as Cash Flow Hedges The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The interest rate swap agreements designated as cash flow hedges are summarized as follows: March 31, 2021 December 31, 2020 Notional Fair Notional Fair Amount Value Amount Value (dollars in thousands) Fair value recorded in other liabilities $ 17,000 $ (1,140) $ 17,000 $ (1,458) As of March 31, 2021, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of March 31, 2021 and December 31, 2020, the Company had cash pledged and held on deposit at counterparties of $1,310,000 and $1,630,000, respectively. In 2019, the Company had an interest rate swap contract with a notional amount of $10,000,000 designated as a cash flow hedge on variable-rate loans. Beginning April 1, 2019, this hedging relationship was no longer considered highly effective, and the Company discontinued hedge accounting. In accordance with hedge accounting guidance, the net unrealized gain associated with the discontinued hedging relationship, recorded within accumulated other comprehensive income, was reclassified into earnings through April 7, 2020, the period the hedged forecasted transactions affected earnings. The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows: Location of gross gain (loss) reclassified Amounts of gross gain (loss) from accumulated other reclassified from accumulated comprehensive income to income other comprehensive income Three Months Ended March 31, 2021 2020 Designated as cash flow hedges: (dollars in thousands) Taxable loan interest income $ — $ 32 Junior subordinated debentures interest expense (99) (34) Total $ (99) $ (2) Interest Rate Swaps Not Designated as Hedging Instruments The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. The interest rate swap agreements not designated as hedging instruments are summarized as follows: March 31, 2021 December 31, 2020 Notional Fair Notional Fair Amount Value Amount Value (dollars in thousands) Fair value recorded in other assets: Interest rate swaps with a commercial borrower counterparty $ 115,378 $ 8,496 $ 122,313 $ 15,360 Interest rate swaps with a financial institution counterparty 3,992 64 — — Total fair value recorded in other assets $ 119,370 $ 8,560 $ 122,313 $ 15,360 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 3,992 $ (64) $ — $ — Interest rate swaps with a financial institution counterparty 115,378 (8,496) 122,313 (15,360) Total fair value recorded in other liabilities $ 119,370 $ (8,560) $ 122,313 $ (15,360) As of March 31, 2021, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2022 and 2042. As of March 31, 2021 and December 31, 2020, the Company had $9,974,000 and $15,490,000, respectively, of debt securities pledged and held in safekeeping at the financial institution counterparty. The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows: Three Months Ended March 31, 2021 2020 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 7,564 $ 13,571 Gross losses (7,564) (13,571) Net gains (losses) $ — $ — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the activity and accumulated balances for components of other comprehensive income (loss): Unrealized Gains (Losses) on Debt Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Three Months Ended March 31, 2021 Balance, December 31, 2020 $ 19,578 $ (118) $ (1,307) $ 18,153 Transfer from available-for-sale to held-to-maturity 3,890 (3,890) — — Other comprehensive income (loss) before reclassifications (23,074) — 219 (22,855) Reclassifications — 32 99 131 Other comprehensive income (loss), before tax (23,074) 32 318 (22,724) Income tax expense (benefit) (6,577) 9 91 (6,477) Other comprehensive income (loss), after tax (16,497) 23 227 (16,247) Balance, March 31, 2021 $ 6,971 $ (3,985) $ (1,080) $ 1,906 Three Months Ended March 31, 2020 Balance, December 31, 2019 $ 8,659 $ (131) $ (696) $ 7,832 Other comprehensive income (loss) before reclassifications 7,602 — (970) 6,632 Reclassifications — (9) 2 (7) Other comprehensive income (loss), before tax 7,602 (9) (968) 6,625 Income tax expense (benefit) 2,166 (2) (276) 1,888 Other comprehensive income (loss), after tax 5,436 (7) (692) 4,737 Balance, March 31, 2020 $ 14,095 $ (138) $ (1,388) $ 12,569 The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in gain (loss) on securities in the accompanying consolidated statements of income. The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income. The amounts reclassified from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 10 for additional information. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | NOTE 12 – INCOME TAXES Allocation of income tax expense between current and deferred portions is as follows: Three Months Ended March 31, 2021 2020 (dollars in thousands) Current Federal $ 3,170 $ 1,721 State 1,698 988 Total current 4,868 2,709 Deferred Federal 457 (457) State 228 (221) Total deferred 685 (678) Income tax expense $ 5,553 $ 2,031 Income tax expense differs from the statutory federal rate due to the following: Three Months Ended March 31, 2021 2020 Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 4,368 21.0 % $ 1,733 21.0 % Increase (decrease) resulting from: Federally tax exempt interest income (367) (1.8) (357) (4.3) State taxes, net of federal benefit 1,514 7.3 631 7.6 Other 38 0.2 24 0.3 Income tax expense $ 5,553 26.7 % $ 2,031 24.6 % The components of the net deferred tax asset (liability) are as follows: March 31, December 31, 2021 2020 (dollars in thousands) Deferred tax assets Allowance for loan losses $ 8,170 $ 9,046 Compensation related 1,802 2,301 Deferred loan fees 2,470 1,595 Nonaccrual interest 646 660 Foreclosed assets 59 45 Goodwill 287 336 Other 1,049 1,011 Total deferred tax assets 14,483 14,994 Deferred tax liabilities Fixed asset depreciation 4,368 4,361 Mortgage servicing rights 2,175 1,692 Other purchase accounting adjustments 1,080 1,115 Intangible assets 521 580 Prepaid assets 557 685 Net unrealized gain on debt securities 1 6,569 Other 367 370 Total deferred tax liabilities 9,069 15,372 Net deferred tax asset (liability) $ 5,414 $ (378) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 13 – EARNINGS PER SHARE The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding restricted stock units were vested. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2021 2020 (dollars in thousands) Numerator: Net income $ 15,245 $ 6,221 Earnings allocated to participating securities (31) (15) Numerator for earnings per share - basic and diluted $ 15,214 $ 6,206 Denominator: Weighted average common shares outstanding 27,430,912 27,457,306 Dilutive effect of outstanding restricted stock units 2,489 — Weighted average common shares outstanding, including all dilutive potential shares 27,433,401 27,457,306 Earnings per share - Basic $ 0.55 $ 0.23 Earnings per share - Diluted $ 0.55 $ 0.23 |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 3 Months Ended |
Mar. 31, 2021 | |
EMPLOYEE BENEFIT PLANS | |
DEFERRED COMPENSATION | NOTE 14 – DEFERRED COMPENSATION The Company maintained a supplemental executive retirement plan (the SERP) for certain key executive officers. The SERP benefit payments were scheduled to be paid in equal monthly installments over 30 years. In June 2019, the Company approved the termination of the SERP agreements, and a lump sum payment was made in June 2020 to each participant equal to the present value of any remaining installment payments. During the three months ended March 31, 2020, the Company recognized employee benefits expense for the SERP of $970,000. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2021 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | NOTE 15 – STOCK-BASED COMPENSATION PLANS The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vi) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares. The following is a summary of stock-based compensation expense (benefit): Three Months Ended March 31, 2021 2020 (dollars in thousands) Restricted stock units $ 114 $ 67 Performance restricted stock units 15 — Total awards classified as equity 129 67 Stock appreciation rights 130 (335) Total stock-based compensation expense (benefit) $ 259 $ (268) Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested or paid at the same time as dividends on common stock, are classified as dividends charged to retained earnings. On February 19, 2021, the Company granted 43,047 restricted stock units to certain key employees which vest in three The following is a summary of restricted stock unit activity: Three Months Ended March 31, 2021 2020 Weighted Weighted Average Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 71,000 $ 18.98 — $ — Granted 46,347 15.53 73,150 19.03 Vested (20,225) 18.86 — — Forfeited — — — — Ending balance 97,122 $ 17.36 73,150 $ 19.03 A further summary of restricted stock units as of March 31, 2021, is as follows: Weighted Average Restricted Remaining Grant Date Fair Values Stock Units Contractual Term $ 15.53 46,347 2.8 years $ 19.03 50,775 2.8 years As of March 31, 2021, unrecognized compensation cost related to non-vested restricted stock units was $1,602,000. Performance Restricted Stock Units A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of common stock awarded is based on a performance condition and the completion of the requisite service period. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price and an assessment of the probable outcome of the performance condition and is recognized on a straight-line basis over the service period of the entire award. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings. On February 19, 2021, the Company granted 28,697 performance restricted stock units to certain key employees which vest on February 28, 2024. The performance condition is based on the average annual return on average tangible common equity during a three-year performance period. The number of shares of common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. The total fair value of the performance restricted stock units granted on February 19, 2021 was $405,000, based on the grant date closing price of $15.53 per share and an assessment of the probable outcome of the performance condition on the grant date. The following is a summary of performance restricted stock unit activity: Three months ended March 31, 2021 2020 Maximum Maximum Awarded Weighted Awarded Weighted Performance Average Performance Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance — $ — — $ — Granted 43,046 15.53 — — Vested — — — — Forfeited — — — — Ending balance 43,046 $ 15.53 — $ — A further summary of performance restricted stock units as of March 31, 2021, is as follows: Maximum Awarded Performance Weighted Average Restricted Remaining Grant Date Fair Values Stock Units Contractual Term $ 15.53 43,046 2.9 years As of March 31, 2021, unrecognized compensation cost related to non-vested performance restricted stock units was $390,000, based on the current assessment of the probable outcome of the performance condition. Stock Appreciation Rights A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights units are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for unvested stock appreciation rights is recognized on a straight line basis over the service period of the entire award. The unvested stock appreciation rights vest in four equal annual installments beginning on the first anniversary of the grant date. The following is a summary of stock appreciation rights activity: Three Months Ended March 31, 2021 2020 Stock Weighted Stock Weighted Beginning balance 105,570 $ 16.32 110,160 $ 16.32 Granted — — — — Exercised — — — — Expired (1,530) 16.32 — — Forfeited — — — — Ending balance 104,040 $ 16.32 110,160 $ 16.32 A further summary of stock appreciation rights as of March 31, 2021, is as follows: Weighted Average Stock Appreciation Rights Remaining Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 104,040 85,680 7.9 years As of March 31, 2021, unrecognized compensation cost related to non-vested stock appreciation rights was $67,000. As of March 31, 2021 and December 31, 2020, the liability recorded for outstanding stock appreciation rights was $402,000 and $272,000, respectively. The Company used an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies. March 31, December 31, 2021 2020 Risk-free interest rate 1.55 % 0.80 % Expected volatility 34.96 % 34.72 % Expected life (in years) 8.4 8.7 Expected dividend yield 3.50 % 3.96 % As of March 31, 2021, the liability recorded for previously exercised stock appreciation rights was $797,000, which will be paid in three remaining equal annual installments. As of December 31, 2020, the liability recorded for previously exercised units was $1,087,000. |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended |
Mar. 31, 2021 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 16 – REGULATORY MATTERS The ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company. The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies. Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. As of March 31, 2021 and December 31, 2020, the capital conservation buffer was 2.5%. As of March 31, 2021, the Company and the Bank each met all capital adequacy requirements to which they were subject. The actual and required capital amounts and ratios of HBT Financial, Inc. (on a consolidated basis) and the Bank are as follows: Actual For Capital To Be Well March 31, 2021 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 434,408 17.37 % $ 200,018 8.00 % N/A N/A Heartland Bank and Trust Company 397,098 15.90 199,847 8.00 $ 249,809 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 366,392 14.65 % $ 150,014 6.00 % N/A N/A Heartland Bank and Trust Company 368,339 14.74 149,885 6.00 $ 199,847 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 329,892 13.19 % $ 112,510 4.50 % N/A N/A Heartland Bank and Trust Company 368,339 14.74 112,414 4.50 $ 162,376 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 366,392 9.85 % $ 148,768 4.00 % N/A N/A Heartland Bank and Trust Company 368,339 9.91 148,616 4.00 $ 185,770 5.00 % Actual For Capital To Be Well December 31, 2020 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 426,283 17.40 % $ 195,970 8.00 % N/A N/A Heartland Bank and Trust Company 382,511 15.63 195,787 8.00 $ 244,733 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 356,410 14.55 % $ 146,977 6.00 % N/A N/A Heartland Bank and Trust Company 351,904 14.38 146,840 6.00 $ 195,787 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 319,927 13.06 % $ 110,233 4.50 % N/A N/A Heartland Bank and Trust Company 351,904 14.38 110,130 4.50 $ 159,077 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 356,410 9.94 % $ 143,454 4.00 % N/A N/A Heartland Bank and Trust Company 351,904 9.82 143,296 4.00 $ 179,120 5.00 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 17 – FAIR VALUE OF FINANCIAL INSTRUMENTS Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Additional information on fair value measurements is summarized in Note 1 to the Company’s annual consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC on March 12, 2021. There were no transfers between levels during the three months ended March 31, 2021 and 2020. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. The following tables present the balances of the assets measured at fair value on a recurring basis: March 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 127,938 $ — $ 127,938 Municipal — 282,333 — 282,333 Mortgage-backed: Agency residential — 169,104 — 169,104 Agency commercial — 207,997 — 207,997 Corporate — 69,463 — 69,463 Equity securities with readily determinable fair values 3,332 — — 3,332 Mortgage servicing rights — — 7,629 7,629 Derivative financial assets — 8,560 — 8,560 Derivative financial liabilities — 9,700 — 9,700 December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 121,993 $ — $ 121,993 Municipal — 274,261 — 274,261 Mortgage-backed: Agency residential — 203,252 — 203,252 Agency commercial — 250,766 — 250,766 Corporate — 72,597 — 72,597 Equity securities with readily determinable fair values 3,292 — — 3,292 Mortgage servicing rights — — 5,934 5,934 Derivative financial assets — 15,360 — 15,360 Derivative financial liabilities — 16,818 — 16,818 The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. There were no changes to the valuation techniques from December 31, 2020 to March 31, 2021. Investment Securities When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income. Derivative Financial Instruments Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income. Mortgage Servicing Rights The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income. The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): March 31, 2021 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 7,629 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 85.0% (12.3%) Discount rate 8.8% to 11.0% (9.0%) December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 5,934 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 85.0% (17.3%) Discount rate 9.0% to 11.0% (9.0%) Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present the balances of the assets measured at fair value on a nonrecurring basis: March 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 12,882 $ — $ 12,882 Collateral-dependent impaired loans — — 30,579 30,579 Bank premises held for sale — — 121 121 Foreclosed assets — — 4,748 4,748 December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 14,713 $ — $ 14,713 Collateral-dependent impaired loans — — 33,320 33,320 Bank premises held for sale — — 121 121 Foreclosed assets — — 4,168 4,168 Loans Held for Sale Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes indicate fair value of the held for sale loans is greater than cost. Collateral-Dependent Impaired Loans In accordance with the provisions of the loan impairment guidance, impairment was measured for loans which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of collateral-dependent impaired loans is estimated based on the fair value of the underlying collateral supporting the loan. Collateral-dependent impaired loans require classification in the fair value hierarchy. Impaired loans include loans acquired with deteriorated credit quality. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. Bank Premises Held for Sale Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of bank premises held for sale is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Collateral-Dependent Impaired Loans, Bank Premises Held for Sale, and Foreclosed Assets The estimated fair value of collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets is based on the appraised fair value of the collateral, less estimated costs to sell. Collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or a similar evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals or a similar evaluation of the collateral underlying collateral-dependent loans and foreclosed assets are obtained at the time a loan is first considered impaired or a loan is transferred to foreclosed assets. Appraisals or a similar evaluation of bank premises held for sale are obtained when first classified as held for sale. Appraisals or similar evaluations are obtained subsequently as deemed necessary by management but at least annually on foreclosed assets and bank premises held for sale. Appraisals are reviewed for accuracy and consistency by management. Appraisals are performed by individuals selected from the list of approved appraisers maintained by management. The appraised values are reduced by estimated costs to sell. These discounts and estimates are developed by management by comparison to historical results. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): March 31, 2021 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 30,579 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 4,748 Appraisal Appraisal adjustments 7% (7%) December 31, 2020 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 33,320 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 4,168 Appraisal Appraisal adjustments 7% (7%) Other Fair Value Methods The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments. Cash and Cash Equivalents The carrying amounts of these financial instruments approximate their fair values. Interest-bearing Time Deposits with Banks The carrying values of interest-bearing time deposits with banks approximate their fair values. Restricted Stock The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the market place. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. Investments in Unconsolidated Subsidiaries The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts. Time Deposits Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits. Securities Sold Under Agreements to Repurchase The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts. Subordinated Notes The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Junior Subordinated Debentures The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Accrued Interest The carrying amounts of accrued interest approximate fair value. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument. The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments: Fair Value March 31, 2021 December 31, 2020 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 429,736 $ 429,736 $ 312,451 $ 312,451 Debt securities held-to-maturity Level 2 192,994 195,608 68,395 72,441 Restricted stock Level 3 2,498 2,498 2,498 2,498 Loans, net Level 3 2,241,946 2,264,145 2,215,168 2,235,767 Investments in unconsolidated subsidiaries Level 3 1,165 1,165 1,165 1,165 Accrued interest receivable Level 2 12,718 12,718 14,255 14,255 Financial liabilities: Time deposits Level 3 285,461 286,430 299,474 300,989 Securities sold under agreements to repurchase Level 2 41,976 41,976 45,736 45,736 Subordinated notes Level 3 39,257 38,162 39,238 38,403 Junior subordinated debentures Level 3 37,665 23,528 37,648 23,766 Accrued interest payable Level 2 551 551 1,151 1,151 The Company estimated the fair value of lending related commitments as described in Note 18 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods and termination clauses provided in the agreements. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 – COMMITMENTS AND CONTINGENCIES Financial Instruments The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Such commitments and conditional obligations were as follows: Contractual Amount March 31, December 31, 2021 2020 (dollars in thousands) Commitments to extend credit $ 523,646 $ 530,191 Standby letters of credit 10,235 10,031 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan. Legal Contingencies Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation HBT Financial, Inc. (the Company) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (the Bank or Heartland Bank). The Bank provides a comprehensive suite of business, commercial, wealth management and retail banking products and services to individuals, businesses, and municipal entities throughout Central and Northeastern Illinois. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with generally accepted accounting principles (GAAP) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 12, 2021. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (JOBS Act). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies. |
Merger of State Bank of Lincoln into Heartland Bank | Merger of State Bank of Lincoln into Heartland Bank On October 20, 2020, Heartland Bank and State Bank of Lincoln, both wholly-owned bank subsidiaries of the Company on that date, entered into a Bank Merger Agreement providing for the merger of State Bank of Lincoln into Heartland Bank. The merger was consummated on December 31, 2020, resulting in Heartland Bank being our sole bank subsidiary, with the branch locations in Lincoln, Illinois operating as “State Bank of Lincoln, a division of Heartland Bank and Trust Company.” |
Use of Estimates | Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, goodwill, and income taxes. |
Segment Reporting | Segment Reporting The Company’s operations consist of one reportable segment called community banking. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity. |
Subsequent Events | Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
SECURITIES | |
Summary of carrying balances of securities | March 31, December 31, 2021 2020 (dollars in thousands) Debt securities available-for-sale $ 856,835 $ 922,869 Debt securities held-to-maturity 192,994 68,395 Equity securities with readily determinable fair value 3,332 3,292 Equity securities with no readily determinable fair value 1,552 1,552 Total securities $ 1,054,713 $ 996,108 |
Schedule of gains (losses) on securities | Three Months Ended March 31, 2021 2020 (dollars in thousands) Net realized gains (losses) on sales $ — $ — Net unrealized gains (losses) on equity securities: Readily determinable fair value 40 (52) No readily determinable fair value — — Gains (losses) on securities $ 40 $ (52) |
Schedule of certain debt securities from the available-for-sale category to the held-to-maturity category | Amortized Cost Fair Value (dollars in thousands) U.S. government agency $ 7,593 $ 7,323 Mortgage-backed: Agency residential 8,776 8,536 Agency commercial 118,792 113,861 Total $ 135,161 $ 129,720 |
Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses | March 31, 2021 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 129,494 $ 1,785 $ (3,341) $ 127,938 Municipal 280,212 6,479 (4,358) 282,333 Mortgage-backed: Agency residential 164,942 4,366 (204) 169,104 Agency commercial 208,692 2,861 (3,556) 207,997 Corporate 67,959 1,950 (446) 69,463 Total available-for-sale 851,299 17,441 (11,905) 856,835 Held-to-maturity: U.S. government agency 7,323 — — 7,323 Municipal 21,067 1,188 — 22,255 Mortgage-backed: Agency residential 20,335 388 — 20,723 Agency commercial 144,269 1,323 (285) 145,307 Total held-to-maturity 192,994 2,899 (285) 195,608 Total debt securities $ 1,044,293 $ 20,340 $ (12,190) $ 1,052,443 December 31, 2020 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 118,282 $ 3,720 $ (9) $ 121,993 Municipal 265,309 9,232 (280) 274,261 Mortgage-backed: Agency residential 198,543 4,871 (162) 203,252 Agency commercial 246,649 4,651 (534) 250,766 Corporate 70,917 1,786 (106) 72,597 Total available-for-sale 899,700 24,260 (1,091) 922,869 Held-to-maturity: Municipal 22,484 1,390 — 23,874 Mortgage-backed: Agency residential 13,031 452 — 13,483 Agency commercial 32,880 2,222 (18) 35,084 Total held-to-maturity 68,395 4,064 (18) 72,441 Total debt securities $ 968,095 $ 28,324 $ (1,109) $ 995,310 |
Schedule of amortized cost and fair value of securities by contractual maturity | Available-for-Sale Held-to-Maturity Amortized Fair Value Amortized Fair Value (dollars in thousands) Due in 1 year or less $ 31,406 $ 31,734 $ 2,772 $ 2,817 Due after 1 year through 5 years 76,138 78,807 12,000 12,770 Due after 5 years through 10 years 242,096 242,487 13,227 13,580 Due after 10 years 128,025 126,706 391 411 Mortgage-backed: Agency residential 164,942 169,104 20,335 20,723 Agency commercial 208,692 207,997 144,269 145,307 Total $ 851,299 $ 856,835 $ 192,994 $ 195,608 |
Schedule of gross unrealized losses and fair value of investments | Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total March 31, 2021 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (3,341) $ 80,395 $ — $ — $ (3,341) $ 80,395 Municipal (4,358) 119,502 — — (4,358) 119,502 Mortgage-backed: Agency residential (165) 26,810 (39) 3,594 (204) 30,404 Agency commercial (3,556) 119,719 — — (3,556) 119,719 Corporate (446) 7,009 — — (446) 7,009 Total available-for-sale (11,866) 353,435 (39) 3,594 (11,905) 357,029 Held-to-maturity: Mortgage-backed: Agency commercial (285) 7,669 — — (285) 7,669 Total held-to-maturity (285) 7,669 — — (285) 7,669 Total debt securities $ (12,151) $ 361,104 $ (39) $ 3,594 $ (12,190) $ 364,698 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2020 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (9) $ 5,919 $ — $ — $ (9) $ 5,919 Municipal (280) 19,652 — — (280) 19,652 Mortgage-backed: Agency residential (142) 20,387 (20) 4,490 (162) 24,877 Agency commercial (524) 57,126 (10) 3,449 (534) 60,575 Corporate (106) 4,849 — — (106) 4,849 Total available-for-sale (1,061) 107,933 (30) 7,939 (1,091) 115,872 Held-to-maturity: Mortgage-backed: Agency commercial (18) 2,983 — — (18) 2,983 Total held-to-maturity (18) 2,983 — — (18) 2,983 Total debt securities $ (1,079) $ 110,916 $ (30) $ 7,939 $ (1,109) $ 118,855 |
Schedule of equity securities with initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses | Readily No Readily Determinable Determinable March 31, 2021 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,098 $ 1,717 Cumulative net unrealized gains (losses) 234 (165) Carrying value $ 3,332 $ 1,552 Readily No Readily Determinable Determinable December 31, 2020 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,098 $ 1,717 Cumulative net unrealized gains (losses) 194 (165) Carrying value $ 3,292 $ 1,552 |
LOANS AND THE ALLOWANCE FOR L_2
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |
Summary of Loans | March 31, December 31, 2021 2020 (dollars in thousands) Commercial and industrial $ 412,812 $ 393,312 Agricultural and farmland 228,032 222,723 Commercial real estate - owner occupied 224,599 222,360 Commercial real estate - non-owner occupied 516,963 520,395 Multi-family 236,381 236,391 Construction and land development 215,375 225,652 One-to-four family residential 300,768 306,775 Municipal, consumer, and other 135,775 119,398 Loans, before allowance for loan losses 2,270,705 2,247,006 Allowance for loan losses (28,759) (31,838) Loans, net of allowance for loan losses $ 2,241,946 $ 2,215,168 Paycheck Protection Program (PPP) loans (included above) Commercial and industrial $ 175,389 $ 153,860 Agricultural and farmland 8,921 3,049 Municipal, consumer, and other 6,249 6,587 Total PPP loans $ 190,559 $ 163,496 |
Schedule of activity in allowance for loan losses | Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Three Months Ended March 31, 2021 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2020 $ 3,929 $ 793 $ 3,141 $ 11,251 $ 1,957 $ 4,232 $ 1,801 $ 4,734 $ 31,838 Provision for loan losses (1,802) 72 (426) 72 133 (316) (198) (940) (3,405) Charge-offs — — — — — — (72) (123) (195) Recoveries 293 — — 7 — 90 42 89 521 Balance, March 31, 2021 $ 2,420 $ 865 $ 2,715 $ 11,330 $ 2,090 $ 4,006 $ 1,573 $ 3,760 $ 28,759 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Consumer and and Owner Non-owner Construction Residential and Three Months Ended March 31, 2020 Industrial Farmland Occupied Occupied Multi-Family and Land Real Estate Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2019 $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 Provision for loan losses 538 254 (97) 820 450 237 777 1,376 4,355 Charge-offs (809) (27) — (56) — (1) (104) (224) (1,221) Recoveries 54 — 440 5 — 10 71 74 654 Balance, March 31, 2020 $ 4,224 $ 2,993 $ 2,122 $ 4,432 $ 1,474 $ 3,223 $ 3,284 $ 4,335 $ 26,087 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and March 31, 2021 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 408,664 $ 226,668 $ 204,327 $ 477,116 $ 234,257 $ 208,835 $ 283,562 $ 122,266 $ 2,165,695 Individually evaluated for impairment 3,230 548 12,680 25,871 874 4,165 9,443 13,455 70,266 Acquired with deteriorated credit quality 918 816 7,592 13,976 1,250 2,375 7,763 54 34,744 Total $ 412,812 $ 228,032 $ 224,599 $ 516,963 $ 236,381 $ 215,375 $ 300,768 $ 135,775 $ 2,270,705 Allowance for loan losses: Collectively evaluated for impairment $ 1,218 $ 845 $ 2,032 $ 6,947 $ 2,080 $ 3,846 $ 1,091 $ 1,328 $ 19,387 Individually evaluated for impairment 1,095 19 420 4,142 — 144 479 2,431 8,730 Acquired with deteriorated credit quality 107 1 263 241 10 16 3 1 642 Total $ 2,420 $ 865 $ 2,715 $ 11,330 $ 2,090 $ 4,006 $ 1,573 $ 3,760 $ 28,759 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 387,072 $ 217,077 $ 201,417 $ 480,165 $ 234,252 $ 219,822 $ 287,845 $ 105,796 $ 2,133,446 Individually evaluated for impairment 5,312 4,793 13,132 25,993 876 3,809 10,343 13,546 77,804 Acquired with deteriorated credit quality 928 853 7,811 14,237 1,263 2,021 8,587 56 35,756 Total $ 393,312 $ 222,723 $ 222,360 $ 520,395 $ 236,391 $ 225,652 $ 306,775 $ 119,398 $ 2,247,006 Allowance for loan losses: Collectively evaluated for impairment $ 2,736 $ 771 $ 2,306 $ 6,736 $ 1,950 $ 3,984 $ 1,237 $ 1,432 $ 21,152 Individually evaluated for impairment 1,193 22 429 4,255 — 222 560 3,301 9,982 Acquired with deteriorated credit quality — — 406 260 7 26 4 1 704 Total $ 3,929 $ 793 $ 3,141 $ 11,251 $ 1,957 $ 4,232 $ 1,801 $ 4,734 $ 31,838 |
Schedule of loans individually evaluated for impairment by category | The following tables present loans individually evaluated for impairment by category of loans: Unpaid Principal Recorded Related March 31, 2021 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,252 $ 2,240 $ 1,095 Agricultural and farmland 166 165 19 Commercial real estate - owner occupied 3,156 3,121 420 Commercial real estate - non-owner occupied 20,605 20,256 4,142 Multi-family — — — Construction and land development 2,229 2,196 144 One-to-four family residential 2,835 2,587 479 Municipal, consumer, and other 8,770 8,744 2,431 Total $ 40,013 $ 39,309 $ 8,730 With no related allowance: Commercial and industrial $ 1,738 $ 990 $ — Agricultural and farmland 383 383 — Commercial real estate - owner occupied 9,635 9,559 — Commercial real estate - non-owner occupied 5,747 5,615 — Multi-family 874 874 — Construction and land development 1,978 1,969 — One-to-four family residential 8,556 6,856 — Municipal, consumer, and other 4,774 4,711 — Total $ 33,685 $ 30,957 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 3,990 $ 3,230 $ 1,095 Agricultural and farmland 549 548 19 Commercial real estate - owner occupied 12,791 12,680 420 Commercial real estate - non-owner occupied 26,352 25,871 4,142 Multi-family 874 874 — Construction and land development 4,207 4,165 144 One-to-four family residential 11,391 9,443 479 Municipal, consumer, and other 13,544 13,455 2,431 Total $ 73,698 $ 70,266 $ 8,730 Unpaid Principal Recorded Related December 31, 2020 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,737 $ 2,725 $ 1,193 Agricultural and farmland 169 168 22 Commercial real estate - owner occupied 3,072 3,040 429 Commercial real estate - non-owner occupied 20,726 20,394 4,255 Multi-family — — — Construction and land development 2,081 2,055 222 One-to-four family residential 2,963 2,739 560 Municipal, consumer, and other 12,207 12,181 3,301 Total $ 43,955 $ 43,302 $ 9,982 With no related allowance: Commercial and industrial $ 3,322 $ 2,587 $ — Agricultural and farmland 4,625 4,625 — Commercial real estate - owner occupied 10,164 10,092 — Commercial real estate - non-owner occupied 5,727 5,599 — Multi-family 876 876 — Construction and land development 1,762 1,754 — One-to-four family residential 9,325 7,604 — Municipal, consumer, and other 1,431 1,365 — Total $ 37,232 $ 34,502 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 6,059 $ 5,312 $ 1,193 Agricultural and farmland 4,794 4,793 22 Commercial real estate - owner occupied 13,236 13,132 429 Commercial real estate - non-owner occupied 26,453 25,993 4,255 Multi-family 876 876 — Construction and land development 3,843 3,809 222 One-to-four family residential 12,288 10,343 560 Municipal, consumer, and other 13,638 13,546 3,301 Total $ 81,187 $ 77,804 $ 9,982 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans during the three months ended March 31: Three Months Ended March 31, 2021 2020 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 2,266 $ 31 $ 3,486 $ 49 Agricultural and farmland 168 2 573 4 Commercial real estate - owner occupied 3,244 41 828 11 Commercial real estate - non-owner occupied 20,361 208 99 2 Multi-family — — — — Construction and land development 2,248 27 3,064 41 One-to-four family residential 2,644 23 3,261 27 Municipal, consumer, and other 8,802 40 12,487 83 Total $ 39,733 $ 372 $ 23,798 $ 217 With no related allowance: Commercial and industrial $ 1,068 $ 14 $ 5,941 $ 58 Agricultural and farmland 383 6 12,520 161 Commercial real estate - owner occupied 9,600 122 10,432 131 Commercial real estate - non-owner occupied 5,665 68 3,340 41 Multi-family 876 10 — — Construction and land development 1,764 26 324 4 One-to-four family residential 6,981 49 8,344 62 Municipal, consumer, and other 4,746 22 1,370 56 Total $ 31,083 $ 317 $ 42,271 $ 513 Total loans individually evaluated for impairment: Commercial and industrial $ 3,334 $ 45 $ 9,427 $ 107 Agricultural and farmland 551 8 13,093 165 Commercial real estate - owner occupied 12,844 163 11,260 142 Commercial real estate - non-owner occupied 26,026 276 3,439 43 Multi-family 876 10 — — Construction and land development 4,012 53 3,388 45 One-to-four family residential 9,625 72 11,605 89 Municipal, consumer, and other 13,548 62 13,857 139 Total $ 70,816 $ 689 $ 66,069 $ 730 |
Schedule of recorded investment on past due basis | Accruing Interest 30 - 89 Days 90+ Days Total March 31, 2021 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 412,005 $ — $ — $ 807 $ 412,812 Agricultural and farmland 228,032 — — — 228,032 Commercial real estate - owner occupied 224,026 — — 573 224,599 Commercial real estate - non-owner occupied 512,889 92 — 3,982 516,963 Multi-family 236,381 — — — 236,381 Construction and land development 215,221 15 — 139 215,375 One-to-four family residential 296,530 706 29 3,503 300,768 Municipal, consumer, and other 135,550 113 10 102 135,775 Total $ 2,260,634 $ 926 $ 39 $ 9,106 $ 2,270,705 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2020 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 392,490 $ — $ — $ 822 $ 393,312 Agricultural and farmland 222,723 — — — 222,723 Commercial real estate - owner occupied 221,308 112 — 940 222,360 Commercial real estate - non-owner occupied 516,387 — — 4,008 520,395 Multi-family 236,391 — — — 236,391 Construction and land development 225,508 — — 144 225,652 One-to-four family residential 301,282 984 595 3,914 306,775 Municipal, consumer, and other 119,055 211 21 111 119,398 Total $ 2,235,144 $ 1,307 $ 616 $ 9,939 $ 2,247,006 |
Schedule of loans by category risk ratings | March 31, 2021 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 392,957 $ 15,734 $ 4,121 $ — $ 412,812 Agricultural and farmland 196,773 29,994 1,265 — 228,032 Commercial real estate - owner occupied 180,381 31,165 13,053 — 224,599 Commercial real estate - non-owner occupied 429,273 58,874 28,816 — 516,963 Multi-family 208,800 26,707 874 — 236,381 Construction and land development 182,730 28,480 4,165 — 215,375 One-to-four family residential 276,413 13,839 10,516 — 300,768 Municipal, consumer, and other 121,991 330 13,454 — 135,775 Total $ 1,989,318 $ 205,123 $ 76,264 $ — $ 2,270,705 December 31, 2020 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 368,843 $ 18,258 $ 6,211 $ — $ 393,312 Agricultural and farmland 191,662 25,540 5,521 — 222,723 Commercial real estate - owner occupied 176,823 31,990 13,547 — 222,360 Commercial real estate - non-owner occupied 432,752 58,699 28,944 — 520,395 Multi-family 204,449 31,066 876 — 236,391 Construction and land development 193,646 28,193 3,813 — 225,652 One-to-four family residential 280,198 14,526 12,051 — 306,775 Municipal, consumer, and other 105,539 312 13,547 — 119,398 Total $ 1,953,912 $ 208,584 $ 84,510 $ — $ 2,247,006 |
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality | Three Months Ended March 31, 2021 2020 (dollars in thousands) Beginning balance $ 1,397 $ 1,662 Reclassification from non-accretable difference 74 8 Accretion income (133) (160) Ending balance $ 1,338 $ 1,510 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LOAN SERVICING | |
Schedule of activity in mortgage servicing rights | Three Months Ended March 31, 2021 2020 (dollars in thousands) Beginning balance $ 5,934 $ 8,518 Capitalized servicing rights 397 214 Fair value adjustment: Attributable to payments and principal reductions (467) (403) Attributable to changes in valuation inputs and assumptions 1,765 (1,982) Total fair value adjustment 1,298 (2,385) Ending balance $ 7,629 $ 6,347 |
FORECLOSED ASSETS (Tables)
FORECLOSED ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FORECLOSED ASSETS | |
Schedule of foreclosed assets activity | Three Months Ended March 31, 2021 2020 (dollars in thousands) Beginning balance $ 4,168 $ 5,099 Transfers from loans 671 19 Proceeds from sales (15) (677) Net gain (loss) on sales (3) 75 Direct write-downs (73) (47) Ending balance $ 4,748 $ 4,469 |
Schedule of gains (losses) on foreclosed assets | Three Months Ended March 31, 2021 2020 (dollars in thousands) Direct write-downs $ (73) $ (47) Net gain (loss) on sales (3) 75 Guarantee reimbursements — 7 Gains (losses) on foreclosed assets $ (76) $ 35 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DEPOSITS | |
Schedule of Company's interest-bearing deposits | March 31, 2021 December 31, 2020 (dollars in thousands) Noninterest-bearing deposits $ 968,991 $ 882,939 Interest-bearing deposits: Interest-bearing demand 1,008,954 968,592 Money market 499,088 462,056 Savings 593,472 517,473 Time 285,461 299,474 Total interest-bearing deposits 2,386,975 2,247,595 Total deposits $ 3,355,966 $ 3,130,534 |
Schedule of interest expense on deposits | Three Months Ended March 31, 2021 2020 (dollars in thousands) Interest-bearing demand $ 117 $ 251 Money market 89 394 Savings 41 70 Time 397 880 Total interest expense on deposits $ 644 $ 1,595 |
SUBORDINATED NOTES (Tables)
SUBORDINATED NOTES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Subordinated Notes | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |
Schedule of carrying value of subordinated debentures | March 31, 2021 December 31, 2020 (dollars in thousands) Subordinated notes, at face value $ 40,000 $ 40,000 Unamortized issuance costs (743) (762) Subordinated notes, at carrying value $ 39,257 $ 39,238 |
JUNIOR SUBORDINATED DEBENTURE_2
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Tables) - Junior Subordinated Debentures Issued | 3 Months Ended |
Mar. 31, 2021 | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |
Schedule of carrying value of subordinated debentures | March 31, 2021 December 31, 2020 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 FFBI Capital Trust I 7,217 7,217 National Bancorp Statutory Trust I 5,773 5,773 Total junior subordinated debentures, at face value 38,765 38,765 National Bancorp Statutory Trust I unamortized discount (1,100) (1,117) Total junior subordinated debentures, at carrying value $ 37,665 $ 37,648 |
Schedule of interest rates and maturities of the junior subordinated debentures | Interest Rate at Variable March 31, December 31, Maturity Interest Rate 2021 2020 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 2.99 % 2.99 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 1.71 1.75 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 1.53 1.57 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 3.04 3.04 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 3.08 3.12 December 31, 2037 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Summary of fair values of Company's derivative instrument assets and liabilities related to interest rate swap contracts | March 31, 2021 December 31, 2020 Notional Fair Notional Fair Amount Value Amount Value (dollars in thousands) Fair value recorded in other liabilities $ 17,000 $ (1,140) $ 17,000 $ (1,458) |
Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income | Location of gross gain (loss) reclassified Amounts of gross gain (loss) from accumulated other reclassified from accumulated comprehensive income to income other comprehensive income Three Months Ended March 31, 2021 2020 Designated as cash flow hedges: (dollars in thousands) Taxable loan interest income $ — $ 32 Junior subordinated debentures interest expense (99) (34) Total $ (99) $ (2) |
Summary of interest rate swap agreements not designated as hedging instruments | March 31, 2021 December 31, 2020 Notional Fair Notional Fair Amount Value Amount Value (dollars in thousands) Fair value recorded in other assets: Interest rate swaps with a commercial borrower counterparty $ 115,378 $ 8,496 $ 122,313 $ 15,360 Interest rate swaps with a financial institution counterparty 3,992 64 — — Total fair value recorded in other assets $ 119,370 $ 8,560 $ 122,313 $ 15,360 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 3,992 $ (64) $ — $ — Interest rate swaps with a financial institution counterparty 115,378 (8,496) 122,313 (15,360) Total fair value recorded in other liabilities $ 119,370 $ (8,560) $ 122,313 $ (15,360) |
Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income | Three Months Ended March 31, 2021 2020 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 7,564 $ 13,571 Gross losses (7,564) (13,571) Net gains (losses) $ — $ — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
Schedule of the activity and accumulated balances for components of other comprehensive income (loss) | Unrealized Gains (Losses) on Debt Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Three Months Ended March 31, 2021 Balance, December 31, 2020 $ 19,578 $ (118) $ (1,307) $ 18,153 Transfer from available-for-sale to held-to-maturity 3,890 (3,890) — — Other comprehensive income (loss) before reclassifications (23,074) — 219 (22,855) Reclassifications — 32 99 131 Other comprehensive income (loss), before tax (23,074) 32 318 (22,724) Income tax expense (benefit) (6,577) 9 91 (6,477) Other comprehensive income (loss), after tax (16,497) 23 227 (16,247) Balance, March 31, 2021 $ 6,971 $ (3,985) $ (1,080) $ 1,906 Three Months Ended March 31, 2020 Balance, December 31, 2019 $ 8,659 $ (131) $ (696) $ 7,832 Other comprehensive income (loss) before reclassifications 7,602 — (970) 6,632 Reclassifications — (9) 2 (7) Other comprehensive income (loss), before tax 7,602 (9) (968) 6,625 Income tax expense (benefit) 2,166 (2) (276) 1,888 Other comprehensive income (loss), after tax 5,436 (7) (692) 4,737 Balance, March 31, 2020 $ 14,095 $ (138) $ (1,388) $ 12,569 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
Schedule of allocation of federal and state income taxes between current and deferred portions | Three Months Ended March 31, 2021 2020 (dollars in thousands) Current Federal $ 3,170 $ 1,721 State 1,698 988 Total current 4,868 2,709 Deferred Federal 457 (457) State 228 (221) Total deferred 685 (678) Income tax expense $ 5,553 $ 2,031 |
Schedule of effective income tax rate reconciliation | Three Months Ended March 31, 2021 2020 Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 4,368 21.0 % $ 1,733 21.0 % Increase (decrease) resulting from: Federally tax exempt interest income (367) (1.8) (357) (4.3) State taxes, net of federal benefit 1,514 7.3 631 7.6 Other 38 0.2 24 0.3 Income tax expense $ 5,553 26.7 % $ 2,031 24.6 % |
Schedule of components of the net deferred tax asset (liability) | March 31, December 31, 2021 2020 (dollars in thousands) Deferred tax assets Allowance for loan losses $ 8,170 $ 9,046 Compensation related 1,802 2,301 Deferred loan fees 2,470 1,595 Nonaccrual interest 646 660 Foreclosed assets 59 45 Goodwill 287 336 Other 1,049 1,011 Total deferred tax assets 14,483 14,994 Deferred tax liabilities Fixed asset depreciation 4,368 4,361 Mortgage servicing rights 2,175 1,692 Other purchase accounting adjustments 1,080 1,115 Intangible assets 521 580 Prepaid assets 557 685 Net unrealized gain on debt securities 1 6,569 Other 367 370 Total deferred tax liabilities 9,069 15,372 Net deferred tax asset (liability) $ 5,414 $ (378) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER SHARE | |
Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings | Three Months Ended March 31, 2021 2020 (dollars in thousands) Numerator: Net income $ 15,245 $ 6,221 Earnings allocated to participating securities (31) (15) Numerator for earnings per share - basic and diluted $ 15,214 $ 6,206 Denominator: Weighted average common shares outstanding 27,430,912 27,457,306 Dilutive effect of outstanding restricted stock units 2,489 — Weighted average common shares outstanding, including all dilutive potential shares 27,433,401 27,457,306 Earnings per share - Basic $ 0.55 $ 0.23 Earnings per share - Diluted $ 0.55 $ 0.23 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
STOCK-BASED COMPENSATION PLANS | |
Summary of stock-based compensation expense | Three Months Ended March 31, 2021 2020 (dollars in thousands) Restricted stock units $ 114 $ 67 Performance restricted stock units 15 — Total awards classified as equity 129 67 Stock appreciation rights 130 (335) Total stock-based compensation expense (benefit) $ 259 $ (268) |
Schedule of the summary of outstanding restricted stock units | Three Months Ended March 31, 2021 2020 Weighted Weighted Average Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 71,000 $ 18.98 — $ — Granted 46,347 15.53 73,150 19.03 Vested (20,225) 18.86 — — Forfeited — — — — Ending balance 97,122 $ 17.36 73,150 $ 19.03 A further summary of restricted stock units as of March 31, 2021, is as follows: Weighted Average Restricted Remaining Grant Date Fair Values Stock Units Contractual Term $ 15.53 46,347 2.8 years $ 19.03 50,775 2.8 years |
Schedule of the status of stock appreciation rights and changes | Three Months Ended March 31, 2021 2020 Stock Weighted Stock Weighted Beginning balance 105,570 $ 16.32 110,160 $ 16.32 Granted — — — — Exercised — — — — Expired (1,530) 16.32 — — Forfeited — — — — Ending balance 104,040 $ 16.32 110,160 $ 16.32 A further summary of stock appreciation rights as of March 31, 2021, is as follows: Weighted Average Stock Appreciation Rights Remaining Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 104,040 85,680 7.9 years |
Schedule of assumptions used in valuing stock appreciation rights | March 31, December 31, 2021 2020 Risk-free interest rate 1.55 % 0.80 % Expected volatility 34.96 % 34.72 % Expected life (in years) 8.4 8.7 Expected dividend yield 3.50 % 3.96 % |
Performance restricted stock units | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of the summary of outstanding restricted stock units | Three months ended March 31, 2021 2020 Maximum Maximum Awarded Weighted Awarded Weighted Performance Average Performance Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance — $ — — $ — Granted 43,046 15.53 — — Vested — — — — Forfeited — — — — Ending balance 43,046 $ 15.53 — $ — A further summary of performance restricted stock units as of March 31, 2021, is as follows: Maximum Awarded Performance Weighted Average Restricted Remaining Grant Date Fair Values Stock Units Contractual Term $ 15.53 43,046 2.9 years |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
REGULATORY MATTERS | |
Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios | Actual For Capital To Be Well March 31, 2021 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 434,408 17.37 % $ 200,018 8.00 % N/A N/A Heartland Bank and Trust Company 397,098 15.90 199,847 8.00 $ 249,809 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 366,392 14.65 % $ 150,014 6.00 % N/A N/A Heartland Bank and Trust Company 368,339 14.74 149,885 6.00 $ 199,847 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 329,892 13.19 % $ 112,510 4.50 % N/A N/A Heartland Bank and Trust Company 368,339 14.74 112,414 4.50 $ 162,376 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 366,392 9.85 % $ 148,768 4.00 % N/A N/A Heartland Bank and Trust Company 368,339 9.91 148,616 4.00 $ 185,770 5.00 % Actual For Capital To Be Well December 31, 2020 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 426,283 17.40 % $ 195,970 8.00 % N/A N/A Heartland Bank and Trust Company 382,511 15.63 195,787 8.00 $ 244,733 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 356,410 14.55 % $ 146,977 6.00 % N/A N/A Heartland Bank and Trust Company 351,904 14.38 146,840 6.00 $ 195,787 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 319,927 13.06 % $ 110,233 4.50 % N/A N/A Heartland Bank and Trust Company 351,904 14.38 110,130 4.50 $ 159,077 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 356,410 9.94 % $ 143,454 4.00 % N/A N/A Heartland Bank and Trust Company 351,904 9.82 143,296 4.00 $ 179,120 5.00 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Summary of assets measured at fair value on a recurring basis | March 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 127,938 $ — $ 127,938 Municipal — 282,333 — 282,333 Mortgage-backed: Agency residential — 169,104 — 169,104 Agency commercial — 207,997 — 207,997 Corporate — 69,463 — 69,463 Equity securities with readily determinable fair values 3,332 — — 3,332 Mortgage servicing rights — — 7,629 7,629 Derivative financial assets — 8,560 — 8,560 Derivative financial liabilities — 9,700 — 9,700 December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 121,993 $ — $ 121,993 Municipal — 274,261 — 274,261 Mortgage-backed: Agency residential — 203,252 — 203,252 Agency commercial — 250,766 — 250,766 Corporate — 72,597 — 72,597 Equity securities with readily determinable fair values 3,292 — — 3,292 Mortgage servicing rights — — 5,934 5,934 Derivative financial assets — 15,360 — 15,360 Derivative financial liabilities — 16,818 — 16,818 |
Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements | The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): March 31, 2021 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 7,629 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 85.0% (12.3%) Discount rate 8.8% to 11.0% (9.0%) December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 5,934 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 85.0% (17.3%) Discount rate 9.0% to 11.0% (9.0%) |
Summary of assets measured at fair value on a nonrecurring basis | March 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 12,882 $ — $ 12,882 Collateral-dependent impaired loans — — 30,579 30,579 Bank premises held for sale — — 121 121 Foreclosed assets — — 4,748 4,748 December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 14,713 $ — $ 14,713 Collateral-dependent impaired loans — — 33,320 33,320 Bank premises held for sale — — 121 121 Foreclosed assets — — 4,168 4,168 |
Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements | The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): March 31, 2021 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 30,579 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 4,748 Appraisal Appraisal adjustments 7% (7%) December 31, 2020 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 33,320 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 4,168 Appraisal Appraisal adjustments 7% (7%) |
Summary information on the carrying amounts and estimated fair values of the Company's financial instruments | Fair Value March 31, 2021 December 31, 2020 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 429,736 $ 429,736 $ 312,451 $ 312,451 Debt securities held-to-maturity Level 2 192,994 195,608 68,395 72,441 Restricted stock Level 3 2,498 2,498 2,498 2,498 Loans, net Level 3 2,241,946 2,264,145 2,215,168 2,235,767 Investments in unconsolidated subsidiaries Level 3 1,165 1,165 1,165 1,165 Accrued interest receivable Level 2 12,718 12,718 14,255 14,255 Financial liabilities: Time deposits Level 3 285,461 286,430 299,474 300,989 Securities sold under agreements to repurchase Level 2 41,976 41,976 45,736 45,736 Subordinated notes Level 3 39,257 38,162 39,238 38,403 Junior subordinated debentures Level 3 37,665 23,528 37,648 23,766 Accrued interest payable Level 2 551 551 1,151 1,151 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of commitments and conditional obligations | Contractual Amount March 31, December 31, 2021 2020 (dollars in thousands) Commitments to extend credit $ 523,646 $ 530,191 Standby letters of credit 10,235 10,031 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
ACCOUNTING POLICIES | |
Number of segments | 1 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
SECURITIES | ||
Carrying value of securities pledged to secure public and trust deposits | $ 283,967 | $ 308,064 |
Illinois | ||
SECURITIES | ||
Percentage of obligations of local municipalities | 43.00% | |
Percentage of general obligations in local municipalities | 94.00% |
SECURITIES - Carrying balances
SECURITIES - Carrying balances of securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
SECURITIES | ||
Debt securities available-for-sale | $ 856,835 | $ 922,869 |
Debt securities held-to-maturity Amortized Cost | 192,994 | 68,395 |
Equity securities with readily determinable fair value | 3,332 | 3,292 |
Equity securities with no readily determinable fair value | 1,552 | 1,552 |
Total securities | $ 1,054,713 | $ 996,108 |
SECURITIES - Sale and Gain (los
SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales of securities available-for-sale | ||
Proceeds from sales | $ 0 | $ 0 |
Net unrealized gains (losses) on equity securities: | ||
Readily determinable fair value | 40 | (52) |
Gains (losses) on securities | $ 40 | $ (52) |
SECURITIES - Amortized cost and
SECURITIES - Amortized cost and Fair values of held-to-maturity securities transferred from available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | $ 192,994 | $ 68,395 |
Fair Value | 195,608 | 72,441 |
U.S. government agency | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 7,323 | |
Fair Value | 7,323 | |
Mortgage-backed: Agency residential | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 20,335 | 13,031 |
Fair Value | 20,723 | 13,483 |
Mortgage-backed: Agency commercial | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 144,269 | 32,880 |
Fair Value | 145,307 | $ 35,084 |
Debt Securities Transferred | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 135,161 | |
Fair Value | 129,720 | |
Debt Securities Transferred | U.S. government agency | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 7,593 | |
Fair Value | 7,323 | |
Debt Securities Transferred | Mortgage-backed: Agency residential | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 8,776 | |
Fair Value | 8,536 | |
Debt Securities Transferred | Mortgage-backed: Agency commercial | ||
Held-to-maturity | ||
Debt securities held-to-maturity Amortized Cost | 118,792 | |
Fair Value | $ 113,861 |
SECURITIES - Amortized cost a_2
SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Available-for-sale | ||
Amortized Cost | $ 851,299 | $ 899,700 |
Gross Unrealized Gains | 17,441 | 24,260 |
Gross Unrealized Losses | (11,905) | (1,091) |
Fair Value | 856,835 | 922,869 |
Held-to-maturity | ||
Amortized Cost | 192,994 | 68,395 |
Gross Unrealized Gains | 2,899 | 4,064 |
Gross Unrealized Losses | (285) | (18) |
Fair Value | 195,608 | 72,441 |
Total Amortized Cost | 1,044,293 | 968,095 |
Total Gross Unrealized Gains | 20,340 | 28,324 |
Total Gross Unrealized Losses | (12,190) | (1,109) |
Total Fair Value | 1,052,443 | 995,310 |
U.S. government agency | ||
Available-for-sale | ||
Amortized Cost | 129,494 | 118,282 |
Gross Unrealized Gains | 1,785 | 3,720 |
Gross Unrealized Losses | (3,341) | (9) |
Fair Value | 127,938 | 121,993 |
Held-to-maturity | ||
Amortized Cost | 7,323 | |
Fair Value | 7,323 | |
Municipal | ||
Available-for-sale | ||
Amortized Cost | 280,212 | 265,309 |
Gross Unrealized Gains | 6,479 | 9,232 |
Gross Unrealized Losses | (4,358) | (280) |
Fair Value | 282,333 | 274,261 |
Held-to-maturity | ||
Amortized Cost | 21,067 | 22,484 |
Gross Unrealized Gains | 1,188 | 1,390 |
Fair Value | 22,255 | 23,874 |
Mortgage-backed: Agency residential | ||
Available-for-sale | ||
Amortized Cost | 164,942 | 198,543 |
Gross Unrealized Gains | 4,366 | 4,871 |
Gross Unrealized Losses | (204) | (162) |
Fair Value | 169,104 | 203,252 |
Held-to-maturity | ||
Amortized Cost | 20,335 | 13,031 |
Gross Unrealized Gains | 388 | 452 |
Fair Value | 20,723 | 13,483 |
Mortgage-backed: Agency commercial | ||
Available-for-sale | ||
Amortized Cost | 208,692 | 246,649 |
Gross Unrealized Gains | 2,861 | 4,651 |
Gross Unrealized Losses | (3,556) | (534) |
Fair Value | 207,997 | 250,766 |
Held-to-maturity | ||
Amortized Cost | 144,269 | 32,880 |
Gross Unrealized Gains | 1,323 | 2,222 |
Gross Unrealized Losses | (285) | (18) |
Fair Value | 145,307 | 35,084 |
Corporate | ||
Available-for-sale | ||
Amortized Cost | 67,959 | 70,917 |
Gross Unrealized Gains | 1,950 | 1,786 |
Gross Unrealized Losses | (446) | (106) |
Fair Value | $ 69,463 | $ 72,597 |
SECURITIES - Amortized cost a_3
SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Amortized Cost | $ 851,299 | $ 899,700 |
Fair Value | ||
Fair Value | 856,835 | 922,869 |
Amortized Cost | ||
Debt securities held-to-maturity Amortized Cost | 192,994 | 68,395 |
Fair Value | ||
Fair Value | 195,608 | 72,441 |
Mortgage-backed: Agency residential | ||
Amortized Cost | ||
Amortized Cost | 164,942 | 198,543 |
Fair Value | ||
Fair Value | 169,104 | 203,252 |
Amortized Cost | ||
Debt securities held-to-maturity Amortized Cost | 20,335 | 13,031 |
Fair Value | ||
Fair Value | 20,723 | 13,483 |
Mortgage-backed: Agency commercial | ||
Amortized Cost | ||
Amortized Cost | 208,692 | 246,649 |
Fair Value | ||
Fair Value | 207,997 | 250,766 |
Amortized Cost | ||
Debt securities held-to-maturity Amortized Cost | 144,269 | 32,880 |
Fair Value | ||
Fair Value | 145,307 | $ 35,084 |
Available-for-sale | ||
Amortized Cost | ||
Due in 1 year or less | 31,406 | |
Due after 1 year through 5 years | 76,138 | |
Due after 5 years through 10 years | 242,096 | |
Due after 10 years | 128,025 | |
Amortized Cost | 851,299 | |
Fair Value | ||
Due in 1 year or less | 31,734 | |
Due after 1 year through 5 years | 78,807 | |
Due after 5 years through 10 years | 242,487 | |
Due after 10 years | 126,706 | |
Fair Value | 856,835 | |
Available-for-sale | Mortgage-backed: Agency residential | ||
Amortized Cost | ||
Amortized Cost | 164,942 | |
Fair Value | ||
Fair Value | 169,104 | |
Available-for-sale | Mortgage-backed: Agency commercial | ||
Amortized Cost | ||
Amortized Cost | 208,692 | |
Fair Value | ||
Fair Value | 207,997 | |
Held-to-maturity | ||
Amortized Cost | ||
Due in 1 year or less | 2,772 | |
Due after 1 year through 5 years | 12,000 | |
Due after 5 years through 10 years | 13,227 | |
Due after 10 years | 391 | |
Debt securities held-to-maturity Amortized Cost | 192,994 | |
Fair Value | ||
Due in 1 year or less | 2,817 | |
Due after 1 year through 5 years | 12,770 | |
Due after 5 years through 10 years | 13,580 | |
Due after 10 years | 411 | |
Fair Value | 195,608 | |
Held-to-maturity | Mortgage-backed: Agency residential | ||
Amortized Cost | ||
Debt securities held-to-maturity Amortized Cost | 20,335 | |
Fair Value | ||
Fair Value | 20,723 | |
Held-to-maturity | Mortgage-backed: Agency commercial | ||
Amortized Cost | ||
Debt securities held-to-maturity Amortized Cost | 144,269 | |
Fair Value | ||
Fair Value | $ 145,307 |
SECURITIES - Investments in a C
SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($) |
Available-for-sale: Unrealized Loss | ||
Less than 12 Months | $ (11,866) | $ (1,061) |
12 Months or More | (39) | (30) |
Total Unrealized Loss of Available-for-sale securities | (11,905) | (1,091) |
Held-to-maturity: Unrealized Loss | ||
Less than 12 Months | (285) | (18) |
Total Unrealized Loss of Held-to-maturity securities | (285) | (18) |
Available-for-sale: Fair Value | ||
Less than 12 Months | 353,435 | 107,933 |
12 Months or More | 3,594 | 7,939 |
Total Fair Value Available-for-sale securities | 357,029 | 115,872 |
Held-to-maturity: Fair value | ||
Less than 12 Months | 7,669 | 2,983 |
Total Fair Value Held-to-maturity securities | 7,669 | 2,983 |
Total: Unrealized Losses | ||
Less Than 12 Months | (12,151) | (1,079) |
12 Months or More | (39) | (30) |
Total Unrealized Losses | (12,190) | (1,109) |
Total: Fair Value | ||
Less than 12 Months | 361,104 | 110,916 |
12 Months or More | 3,594 | 7,939 |
Total Fair Value | $ 364,698 | 118,855 |
Number of securities in an unrealized loss position for a period of twelve months or more | item | 14 | |
Number of securities in an unrealized loss position for a period of less than twelve months | item | 184 | |
U.S. government agency | ||
Available-for-sale: Unrealized Loss | ||
Less than 12 Months | $ (3,341) | (9) |
Total Unrealized Loss of Available-for-sale securities | (3,341) | (9) |
Available-for-sale: Fair Value | ||
Less than 12 Months | 80,395 | 5,919 |
Total Fair Value Available-for-sale securities | 80,395 | 5,919 |
Municipal | ||
Available-for-sale: Unrealized Loss | ||
Less than 12 Months | (4,358) | (280) |
Total Unrealized Loss of Available-for-sale securities | (4,358) | (280) |
Available-for-sale: Fair Value | ||
Less than 12 Months | 119,502 | 19,652 |
Total Fair Value Available-for-sale securities | 119,502 | 19,652 |
Mortgage-backed: Agency residential | ||
Available-for-sale: Unrealized Loss | ||
Less than 12 Months | (165) | (142) |
12 Months or More | (39) | (20) |
Total Unrealized Loss of Available-for-sale securities | (204) | (162) |
Available-for-sale: Fair Value | ||
Less than 12 Months | 26,810 | 20,387 |
12 Months or More | 3,594 | 4,490 |
Total Fair Value Available-for-sale securities | 30,404 | 24,877 |
Mortgage-backed: Agency commercial | ||
Available-for-sale: Unrealized Loss | ||
Less than 12 Months | (3,556) | (524) |
12 Months or More | (10) | |
Total Unrealized Loss of Available-for-sale securities | (3,556) | (534) |
Held-to-maturity: Unrealized Loss | ||
Less than 12 Months | (285) | (18) |
Total Unrealized Loss of Held-to-maturity securities | (285) | (18) |
Available-for-sale: Fair Value | ||
Less than 12 Months | 119,719 | 57,126 |
12 Months or More | 3,449 | |
Total Fair Value Available-for-sale securities | 119,719 | 60,575 |
Held-to-maturity: Fair value | ||
Less than 12 Months | 7,669 | 2,983 |
Total Fair Value Held-to-maturity securities | 7,669 | 2,983 |
Corporate | ||
Available-for-sale: Unrealized Loss | ||
Less than 12 Months | (446) | (106) |
Total Unrealized Loss of Available-for-sale securities | (446) | (106) |
Available-for-sale: Fair Value | ||
Less than 12 Months | 7,009 | 4,849 |
Total Fair Value Available-for-sale securities | $ 7,009 | $ 4,849 |
SECURITIES - Equity securities
SECURITIES - Equity securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Equity Securities - Readily determinable fair value | ||
Equity Securities, Readily determinable fair value, cost | $ 3,098 | $ 3,098 |
Equity Securities, Readily determinable fair value, Cumulative Net Unrealized Gains (Losses) | 234 | 194 |
Equity securities, Readily determinable fair value, Carrying Value | 3,332 | 3,292 |
Equity Securities - No readily determinable fair value | ||
Equity Securities, No readily determinable fair value, cost | 1,717 | 1,717 |
Equity Securities, No readily determinable fair value, Cumulative Net Unrealized Gains (Losses) | (165) | (165) |
Equity securities: No readily determinable fair value, Carrying Value | 1,552 | 1,552 |
Impairment on equity securities with no readily determinable value | 0 | 0 |
Upward adjustment on equity securities with no readily determinable fair value | $ 0 | $ 0 |
LOANS AND THE ALLOWANCE FOR L_3
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Categories of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | $ 2,270,705 | $ 2,247,006 | ||
Allowance for loan losses | (28,759) | (31,838) | $ (26,087) | $ (22,299) |
Loans, net of allowance for loan losses | 2,241,946 | 2,215,168 | ||
Paycheck Protection Program (PPP) Loans | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 190,559 | 163,496 | ||
Commercial and industrial | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 412,812 | 393,312 | ||
Allowance for loan losses | (2,420) | (3,929) | (4,224) | (4,441) |
Commercial and industrial | Paycheck Protection Program (PPP) Loans | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 175,389 | 153,860 | ||
Agricultural and farmland | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 228,032 | 222,723 | ||
Allowance for loan losses | (865) | (793) | (2,993) | (2,766) |
Agricultural and farmland | Paycheck Protection Program (PPP) Loans | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 8,921 | 3,049 | ||
Commercial real estate - owner occupied | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 224,599 | 222,360 | ||
Allowance for loan losses | (2,715) | (3,141) | (2,122) | (1,779) |
Commercial real estate - non-owner occupied | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 516,963 | 520,395 | ||
Allowance for loan losses | (11,330) | (11,251) | (4,432) | (3,663) |
Multi-family | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 236,381 | 236,391 | ||
Allowance for loan losses | (2,090) | (1,957) | (1,474) | (1,024) |
Construction and land development | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 215,375 | 225,652 | ||
Allowance for loan losses | (4,006) | (4,232) | (3,223) | (2,977) |
One-to-four family residential | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 300,768 | 306,775 | ||
Allowance for loan losses | (1,573) | (1,801) | (3,284) | (2,540) |
Municipal, consumer, and other | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | 135,775 | 119,398 | ||
Allowance for loan losses | (3,760) | (4,734) | $ (4,335) | $ (3,109) |
Municipal, consumer, and other | Paycheck Protection Program (PPP) Loans | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans, before allowance for loan losses | $ 6,249 | $ 6,587 |
LOANS AND THE ALLOWANCE FOR L_4
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | $ 31,838 | $ 22,299 |
Provision for loan losses | (3,405) | 4,355 |
Charge-offs | (195) | (1,221) |
Recoveries | 521 | 654 |
Allowance for loan losses at end of period | 28,759 | 26,087 |
Commercial and industrial | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 3,929 | 4,441 |
Provision for loan losses | (1,802) | 538 |
Charge-offs | (809) | |
Recoveries | 293 | 54 |
Allowance for loan losses at end of period | 2,420 | 4,224 |
Agricultural and farmland | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 793 | 2,766 |
Provision for loan losses | 72 | 254 |
Charge-offs | (27) | |
Allowance for loan losses at end of period | 865 | 2,993 |
Commercial real estate - owner occupied | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 3,141 | 1,779 |
Provision for loan losses | (426) | (97) |
Recoveries | 440 | |
Allowance for loan losses at end of period | 2,715 | 2,122 |
Commercial real estate - non-owner occupied | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 11,251 | 3,663 |
Provision for loan losses | 72 | 820 |
Charge-offs | (56) | |
Recoveries | 7 | 5 |
Allowance for loan losses at end of period | 11,330 | 4,432 |
Multi-family | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 1,957 | 1,024 |
Provision for loan losses | 133 | 450 |
Allowance for loan losses at end of period | 2,090 | 1,474 |
Construction and land development | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 4,232 | 2,977 |
Provision for loan losses | (316) | 237 |
Charge-offs | (1) | |
Recoveries | 90 | 10 |
Allowance for loan losses at end of period | 4,006 | 3,223 |
One-to-four family residential | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 1,801 | 2,540 |
Provision for loan losses | (198) | 777 |
Charge-offs | (72) | (104) |
Recoveries | 42 | 71 |
Allowance for loan losses at end of period | 1,573 | 3,284 |
Municipal, consumer, and other | ||
Activity in the allowance for loan losses | ||
Allowance for loan losses at beginning of period | 4,734 | 3,109 |
Provision for loan losses | (940) | 1,376 |
Charge-offs | (123) | (224) |
Recoveries | 89 | 74 |
Allowance for loan losses at end of period | $ 3,760 | $ 4,335 |
LOANS AND THE ALLOWANCE FOR L_5
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | $ 2,165,695 | $ 2,133,446 | ||
Individually evaluated for impairment, Loans | 70,266 | 77,804 | ||
Total | 2,270,705 | 2,247,006 | ||
Collectively evaluated for impairment, Allowance for loan losses | 19,387 | 21,152 | ||
Individually evaluated for impairment, Allowance for loan losses | 8,730 | 9,982 | ||
Total investments in loans | 28,759 | 31,838 | $ 26,087 | $ 22,299 |
Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 34,744 | 35,756 | ||
Individually evaluated for impairment, Allowance for loan losses | 642 | 704 | ||
Commercial and industrial | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 408,664 | 387,072 | ||
Individually evaluated for impairment, Loans | 3,230 | 5,312 | ||
Total | 412,812 | 393,312 | ||
Collectively evaluated for impairment, Allowance for loan losses | 1,218 | 2,736 | ||
Individually evaluated for impairment, Allowance for loan losses | 1,095 | 1,193 | ||
Total investments in loans | 2,420 | 3,929 | 4,224 | 4,441 |
Commercial and industrial | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 918 | 928 | ||
Individually evaluated for impairment, Allowance for loan losses | 107 | |||
Agricultural and farmland | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 226,668 | 217,077 | ||
Individually evaluated for impairment, Loans | 548 | 4,793 | ||
Total | 228,032 | 222,723 | ||
Collectively evaluated for impairment, Allowance for loan losses | 845 | 771 | ||
Individually evaluated for impairment, Allowance for loan losses | 19 | 22 | ||
Total investments in loans | 865 | 793 | 2,993 | 2,766 |
Agricultural and farmland | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 816 | 853 | ||
Individually evaluated for impairment, Allowance for loan losses | 1 | |||
Commercial real estate - owner occupied | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 204,327 | 201,417 | ||
Individually evaluated for impairment, Loans | 12,680 | 13,132 | ||
Total | 224,599 | 222,360 | ||
Collectively evaluated for impairment, Allowance for loan losses | 2,032 | 2,306 | ||
Individually evaluated for impairment, Allowance for loan losses | 420 | 429 | ||
Total investments in loans | 2,715 | 3,141 | 2,122 | 1,779 |
Commercial real estate - owner occupied | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 7,592 | 7,811 | ||
Individually evaluated for impairment, Allowance for loan losses | 263 | 406 | ||
Commercial real estate - non-owner occupied | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 477,116 | 480,165 | ||
Individually evaluated for impairment, Loans | 25,871 | 25,993 | ||
Total | 516,963 | 520,395 | ||
Collectively evaluated for impairment, Allowance for loan losses | 6,947 | 6,736 | ||
Individually evaluated for impairment, Allowance for loan losses | 4,142 | 4,255 | ||
Total investments in loans | 11,330 | 11,251 | 4,432 | 3,663 |
Commercial real estate - non-owner occupied | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 13,976 | 14,237 | ||
Individually evaluated for impairment, Allowance for loan losses | 241 | 260 | ||
Multi-family | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 234,257 | 234,252 | ||
Individually evaluated for impairment, Loans | 874 | 876 | ||
Total | 236,381 | 236,391 | ||
Collectively evaluated for impairment, Allowance for loan losses | 2,080 | 1,950 | ||
Total investments in loans | 2,090 | 1,957 | 1,474 | 1,024 |
Multi-family | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 1,250 | 1,263 | ||
Individually evaluated for impairment, Allowance for loan losses | 10 | 7 | ||
Construction and land development | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 208,835 | 219,822 | ||
Individually evaluated for impairment, Loans | 4,165 | 3,809 | ||
Total | 215,375 | 225,652 | ||
Collectively evaluated for impairment, Allowance for loan losses | 3,846 | 3,984 | ||
Individually evaluated for impairment, Allowance for loan losses | 144 | 222 | ||
Total investments in loans | 4,006 | 4,232 | 3,223 | 2,977 |
Construction and land development | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 2,375 | 2,021 | ||
Individually evaluated for impairment, Allowance for loan losses | 16 | 26 | ||
One-to-four family residential | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 283,562 | 287,845 | ||
Individually evaluated for impairment, Loans | 9,443 | 10,343 | ||
Total | 300,768 | 306,775 | ||
Collectively evaluated for impairment, Allowance for loan losses | 1,091 | 1,237 | ||
Individually evaluated for impairment, Allowance for loan losses | 479 | 560 | ||
Total investments in loans | 1,573 | 1,801 | 3,284 | 2,540 |
One-to-four family residential | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 7,763 | 8,587 | ||
Individually evaluated for impairment, Allowance for loan losses | 3 | 4 | ||
Municipal, consumer, and other | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Collectively evaluated for impairment, Loans | 122,266 | 105,796 | ||
Individually evaluated for impairment, Loans | 13,455 | 13,546 | ||
Total | 135,775 | 119,398 | ||
Collectively evaluated for impairment, Allowance for loan losses | 1,328 | 1,432 | ||
Individually evaluated for impairment, Allowance for loan losses | 2,431 | 3,301 | ||
Total investments in loans | 3,760 | 4,734 | $ 4,335 | $ 3,109 |
Municipal, consumer, and other | Loans acquired with deteriorated credit quality | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Total | 54 | 56 | ||
Individually evaluated for impairment, Allowance for loan losses | $ 1 | $ 1 |
LOANS AND THE ALLOWANCE FOR L_6
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Individually evaluated for impairment by category of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Unpaid Principal Balance | |||
With an allowance recorded | $ 40,013 | $ 43,955 | |
With no related allowance | 33,685 | 37,232 | |
Total loans individually evaluated for impairment | 73,698 | 81,187 | |
Recorded Investment | |||
With an allowance recorded | 39,309 | 43,302 | |
With no related allowance | 30,957 | 34,502 | |
Total loans individually evaluated for impairment | 70,266 | 77,804 | |
Related Allowance | 8,730 | 9,982 | |
Average Recorded Investment | |||
With an allowance recorded | 39,733 | $ 23,798 | |
With no related allowance | 31,083 | 42,271 | |
Total loans individually evaluated for impairment | 70,816 | 66,069 | |
Interest Income Recognized | |||
With an allowance recorded | 372 | 217 | |
With no related allowance | 317 | 513 | |
Total loans individually evaluated for impairment | 689 | 730 | |
Commercial and industrial | |||
Unpaid Principal Balance | |||
With an allowance recorded | 2,252 | 2,737 | |
With no related allowance | 1,738 | 3,322 | |
Total loans individually evaluated for impairment | 3,990 | 6,059 | |
Recorded Investment | |||
With an allowance recorded | 2,240 | 2,725 | |
With no related allowance | 990 | 2,587 | |
Total loans individually evaluated for impairment | 3,230 | 5,312 | |
Related Allowance | 1,095 | 1,193 | |
Average Recorded Investment | |||
With an allowance recorded | 2,266 | 3,486 | |
With no related allowance | 1,068 | 5,941 | |
Total loans individually evaluated for impairment | 3,334 | 9,427 | |
Interest Income Recognized | |||
With an allowance recorded | 31 | 49 | |
With no related allowance | 14 | 58 | |
Total loans individually evaluated for impairment | 45 | 107 | |
Agricultural and farmland | |||
Unpaid Principal Balance | |||
With an allowance recorded | 166 | 169 | |
With no related allowance | 383 | 4,625 | |
Total loans individually evaluated for impairment | 549 | 4,794 | |
Recorded Investment | |||
With an allowance recorded | 165 | 168 | |
With no related allowance | 383 | 4,625 | |
Total loans individually evaluated for impairment | 548 | 4,793 | |
Related Allowance | 19 | 22 | |
Average Recorded Investment | |||
With an allowance recorded | 168 | 573 | |
With no related allowance | 383 | 12,520 | |
Total loans individually evaluated for impairment | 551 | 13,093 | |
Interest Income Recognized | |||
With an allowance recorded | 2 | 4 | |
With no related allowance | 6 | 161 | |
Total loans individually evaluated for impairment | 8 | 165 | |
Commercial real estate - owner occupied | |||
Unpaid Principal Balance | |||
With an allowance recorded | 3,156 | 3,072 | |
With no related allowance | 9,635 | 10,164 | |
Total loans individually evaluated for impairment | 12,791 | 13,236 | |
Recorded Investment | |||
With an allowance recorded | 3,121 | 3,040 | |
With no related allowance | 9,559 | 10,092 | |
Total loans individually evaluated for impairment | 12,680 | 13,132 | |
Related Allowance | 420 | 429 | |
Average Recorded Investment | |||
With an allowance recorded | 3,244 | 828 | |
With no related allowance | 9,600 | 10,432 | |
Total loans individually evaluated for impairment | 12,844 | 11,260 | |
Interest Income Recognized | |||
With an allowance recorded | 41 | 11 | |
With no related allowance | 122 | 131 | |
Total loans individually evaluated for impairment | 163 | 142 | |
Commercial real estate - non-owner occupied | |||
Unpaid Principal Balance | |||
With an allowance recorded | 20,605 | 20,726 | |
With no related allowance | 5,747 | 5,727 | |
Total loans individually evaluated for impairment | 26,352 | 26,453 | |
Recorded Investment | |||
With an allowance recorded | 20,256 | 20,394 | |
With no related allowance | 5,615 | 5,599 | |
Total loans individually evaluated for impairment | 25,871 | 25,993 | |
Related Allowance | 4,142 | 4,255 | |
Average Recorded Investment | |||
With an allowance recorded | 20,361 | 99 | |
With no related allowance | 5,665 | 3,340 | |
Total loans individually evaluated for impairment | 26,026 | 3,439 | |
Interest Income Recognized | |||
With an allowance recorded | 208 | 2 | |
With no related allowance | 68 | 41 | |
Total loans individually evaluated for impairment | 276 | 43 | |
Multi-family | |||
Unpaid Principal Balance | |||
With no related allowance | 874 | 876 | |
Total loans individually evaluated for impairment | 874 | 876 | |
Recorded Investment | |||
With no related allowance | 874 | 876 | |
Total loans individually evaluated for impairment | 874 | 876 | |
Average Recorded Investment | |||
With no related allowance | 876 | ||
Total loans individually evaluated for impairment | 876 | ||
Interest Income Recognized | |||
With no related allowance | 10 | ||
Total loans individually evaluated for impairment | 10 | ||
Construction and land development | |||
Unpaid Principal Balance | |||
With an allowance recorded | 2,229 | 2,081 | |
With no related allowance | 1,978 | 1,762 | |
Total loans individually evaluated for impairment | 4,207 | 3,843 | |
Recorded Investment | |||
With an allowance recorded | 2,196 | 2,055 | |
With no related allowance | 1,969 | 1,754 | |
Total loans individually evaluated for impairment | 4,165 | 3,809 | |
Related Allowance | 144 | 222 | |
Average Recorded Investment | |||
With an allowance recorded | 2,248 | 3,064 | |
With no related allowance | 1,764 | 324 | |
Total loans individually evaluated for impairment | 4,012 | 3,388 | |
Interest Income Recognized | |||
With an allowance recorded | 27 | 41 | |
With no related allowance | 26 | 4 | |
Total loans individually evaluated for impairment | 53 | 45 | |
One-to-four family residential | |||
Unpaid Principal Balance | |||
With an allowance recorded | 2,835 | 2,963 | |
With no related allowance | 8,556 | 9,325 | |
Total loans individually evaluated for impairment | 11,391 | 12,288 | |
Recorded Investment | |||
With an allowance recorded | 2,587 | 2,739 | |
With no related allowance | 6,856 | 7,604 | |
Total loans individually evaluated for impairment | 9,443 | 10,343 | |
Related Allowance | 479 | 560 | |
Average Recorded Investment | |||
With an allowance recorded | 2,644 | 3,261 | |
With no related allowance | 6,981 | 8,344 | |
Total loans individually evaluated for impairment | 9,625 | 11,605 | |
Interest Income Recognized | |||
With an allowance recorded | 23 | 27 | |
With no related allowance | 49 | 62 | |
Total loans individually evaluated for impairment | 72 | 89 | |
Municipal, consumer, and other | |||
Unpaid Principal Balance | |||
With an allowance recorded | 8,770 | 12,207 | |
With no related allowance | 4,774 | 1,431 | |
Total loans individually evaluated for impairment | 13,544 | 13,638 | |
Recorded Investment | |||
With an allowance recorded | 8,744 | 12,181 | |
With no related allowance | 4,711 | 1,365 | |
Total loans individually evaluated for impairment | 13,455 | 13,546 | |
Related Allowance | 2,431 | $ 3,301 | |
Average Recorded Investment | |||
With an allowance recorded | 8,802 | 12,487 | |
With no related allowance | 4,746 | 1,370 | |
Total loans individually evaluated for impairment | 13,548 | 13,857 | |
Interest Income Recognized | |||
With an allowance recorded | 40 | 83 | |
With no related allowance | 22 | 56 | |
Total loans individually evaluated for impairment | $ 62 | $ 139 |
LOANS AND THE ALLOWANCE FOR L_7
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accruing Interest | ||
Current | $ 2,260,634 | $ 2,235,144 |
Nonaccrual | 9,106 | 9,939 |
Total | 2,270,705 | 2,247,006 |
30 - 89 Days Past Due | ||
Accruing Interest | ||
Past due | 926 | 1,307 |
90+ Days Past Due | ||
Accruing Interest | ||
Past due | 39 | 616 |
Commercial and industrial | ||
Accruing Interest | ||
Current | 412,005 | 392,490 |
Nonaccrual | 807 | 822 |
Total | 412,812 | 393,312 |
Agricultural and farmland | ||
Accruing Interest | ||
Current | 228,032 | 222,723 |
Total | 228,032 | 222,723 |
Commercial real estate - owner occupied | ||
Accruing Interest | ||
Current | 224,026 | 221,308 |
Nonaccrual | 573 | 940 |
Total | 224,599 | 222,360 |
Commercial real estate - owner occupied | 30 - 89 Days Past Due | ||
Accruing Interest | ||
Past due | 112 | |
Commercial real estate - non-owner occupied | ||
Accruing Interest | ||
Current | 512,889 | 516,387 |
Nonaccrual | 3,982 | 4,008 |
Total | 516,963 | 520,395 |
Commercial real estate - non-owner occupied | 30 - 89 Days Past Due | ||
Accruing Interest | ||
Past due | 92 | |
Multi-family | ||
Accruing Interest | ||
Current | 236,381 | 236,391 |
Total | 236,381 | 236,391 |
Construction and land development | ||
Accruing Interest | ||
Current | 215,221 | 225,508 |
Nonaccrual | 139 | 144 |
Total | 215,375 | 225,652 |
Construction and land development | 30 - 89 Days Past Due | ||
Accruing Interest | ||
Past due | 15 | |
One-to-four family residential | ||
Accruing Interest | ||
Current | 296,530 | 301,282 |
Nonaccrual | 3,503 | 3,914 |
Total | 300,768 | 306,775 |
One-to-four family residential | 30 - 89 Days Past Due | ||
Accruing Interest | ||
Past due | 706 | 984 |
One-to-four family residential | 90+ Days Past Due | ||
Accruing Interest | ||
Past due | 29 | 595 |
Municipal, consumer, and other | ||
Accruing Interest | ||
Current | 135,550 | 119,055 |
Nonaccrual | 102 | 111 |
Total | 135,775 | 119,398 |
Municipal, consumer, and other | 30 - 89 Days Past Due | ||
Accruing Interest | ||
Past due | 113 | 211 |
Municipal, consumer, and other | 90+ Days Past Due | ||
Accruing Interest | ||
Past due | $ 10 | $ 21 |
LOANS AND THE ALLOWANCE FOR L_8
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | $ 2,270,705 | $ 2,247,006 |
Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 1,989,318 | 1,953,912 |
Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 205,123 | 208,584 |
Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 76,264 | 84,510 |
Commercial and industrial | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 412,812 | 393,312 |
Commercial and industrial | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 392,957 | 368,843 |
Commercial and industrial | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 15,734 | 18,258 |
Commercial and industrial | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 4,121 | 6,211 |
Agricultural and farmland | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 228,032 | 222,723 |
Agricultural and farmland | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 196,773 | 191,662 |
Agricultural and farmland | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 29,994 | 25,540 |
Agricultural and farmland | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 1,265 | 5,521 |
Commercial real estate - owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 224,599 | 222,360 |
Commercial real estate - owner occupied | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 180,381 | 176,823 |
Commercial real estate - owner occupied | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 31,165 | 31,990 |
Commercial real estate - owner occupied | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 13,053 | 13,547 |
Commercial real estate - non-owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 516,963 | 520,395 |
Commercial real estate - non-owner occupied | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 429,273 | 432,752 |
Commercial real estate - non-owner occupied | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 58,874 | 58,699 |
Commercial real estate - non-owner occupied | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 28,816 | 28,944 |
Multi-family | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 236,381 | 236,391 |
Multi-family | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 208,800 | 204,449 |
Multi-family | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 26,707 | 31,066 |
Multi-family | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 874 | 876 |
Construction and land development | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 215,375 | 225,652 |
Construction and land development | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 182,730 | 193,646 |
Construction and land development | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 28,480 | 28,193 |
Construction and land development | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 4,165 | 3,813 |
One-to-four family residential | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 300,768 | 306,775 |
One-to-four family residential | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 276,413 | 280,198 |
One-to-four family residential | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 13,839 | 14,526 |
One-to-four family residential | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 10,516 | 12,051 |
Municipal, consumer, and other | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 135,775 | 119,398 |
Municipal, consumer, and other | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 121,991 | 105,539 |
Municipal, consumer, and other | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | 330 | 312 |
Municipal, consumer, and other | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Total | $ 13,454 | $ 13,547 |
LOANS AND THE ALLOWANCE FOR L_9
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||
Loans with payment modifications due to COVID-19 | $ 16,697,000 | $ 27,986,000 | |
Troubled debt restructurings | 8,673,000 | $ 8,950,000 | |
Troubled debt restructuring subsequent payment defaults during the three months | $ 0 | $ 0 |
LOANS AND THE ALLOWANCE FOR _10
LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Accretable Yield For Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in accretable yield for loans acquired with deteriorated credit quality | ||
Beginning balance | $ 1,397 | $ 1,662 |
Reclassification from non-accretable difference | 74 | 8 |
Accretion income | (133) | (160) |
Ending balance | $ 1,338 | $ 1,510 |
LOAN SERVICING - Mortgage Servi
LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||
Beginning balance | $ 5,934 | ||
Ending balance | 7,629 | $ 5,934 | |
Mortgage Loans | |||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||
Beginning balance | 5,934 | $ 8,518 | 8,518 |
Capitalized servicing rights | 397 | 214 | |
Attributable to payments and principal reductions | (467) | (403) | |
Attributable to changes in valuation inputs and assumptions | 1,765 | (1,982) | |
Total fair value adjustment | 1,298 | (2,385) | |
Ending balance | 7,629 | $ 6,347 | 5,934 |
Mortgage loans serviced for others | $ 1,077,291 | $ 1,090,219 |
FORECLOSED ASSETS - Activity (D
FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
FORECLOSED ASSETS | ||
Beginning balance | $ 4,168 | $ 5,099 |
Transfers from loans | 671 | 19 |
Proceeds from sales | (15) | (677) |
Net gain (loss) on sales | (3) | 75 |
Direct write-downs | (73) | (47) |
Ending balance | $ 4,748 | $ 4,469 |
FORECLOSED ASSETS - Gains (loss
FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
FORECLOSED ASSETS | ||
Direct write-downs | $ (73) | $ (47) |
Net gain (loss) on sales | (3) | 75 |
Guarantee reimbursements | 7 | |
Gains (losses) on foreclosed assets | $ (76) | $ 35 |
FORECLOSED ASSETS - Additional
FORECLOSED ASSETS - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
FORECLOSED ASSETS | ||||
Carrying value of foreclosed asset | $ 4,748 | $ 4,168 | $ 4,469 | $ 5,099 |
One-to-four family residential real estate property | ||||
FORECLOSED ASSETS | ||||
Carrying value of foreclosed asset | $ 1,341 | $ 868 | ||
Number of loans in the process of foreclosure | loan | 8 | 11 | ||
Loan amount in the process of foreclosure | $ 947 | $ 1,526 |
DEPOSITS - Interest bearing Dep
DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
DEPOSITS | ||
Noninterest-bearing Deposit Liabilities | $ 968,991 | $ 882,939 |
Interest-bearing demand | 1,008,954 | 968,592 |
Money market | 499,088 | 462,056 |
Savings | 593,472 | 517,473 |
Time | 285,461 | 299,474 |
Total interest-bearing deposits | 2,386,975 | 2,247,595 |
Total deposits | $ 3,355,966 | $ 3,130,534 |
DEPOSITS - Interest bearing D_2
DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
DEPOSITS | ||
Reciprocal transaction deposits, Money market deposits | $ 6,853 | $ 6,489 |
Reciprocal transaction deposits, Time deposits | 2,687 | 3,164 |
Time deposits in denominations of $250,000 or more | 21,900 | 26,687 |
Time deposits in denominations of $100,000 or more | $ 92,266 | $ 99,649 |
DEPOSITS - Interest expense on
DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
DEPOSITS | ||
Interest-bearing demand | $ 117 | $ 251 |
Money market | 89 | 394 |
Savings | 41 | 70 |
Time | 397 | 880 |
Total interest expense on deposits | $ 644 | $ 1,595 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
BORROWINGS | ||
Borrowings | $ 0 | $ 0 |
Securities pledged, served as collateral | 499,886 | 493,690 |
Loans pledged in association with Mortgage Partnership Finance Program | 355 | 355 |
FRB Discount Window | ||
BORROWINGS | ||
Borrowings | 0 | 0 |
Securities pledged, served as collateral | $ 479 | $ 499 |
SUBORDINATED NOTES (Details)
SUBORDINATED NOTES (Details) - Subordinated Notes - USD ($) $ in Thousands | Sep. 03, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |||
Face amount | $ 40,000 | $ 40,000 | $ 40,000 |
Debt issuance costs | $ 789 | ||
Amortization period of debt issuance costs | 10 years | ||
Qualifies as Tier 2 capital | 100.00% | 100.00% | |
First five years | |||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |||
Fixed interest rate | 4.50% | ||
Subsequent five years | SOFR | |||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |||
Spread on interest rate basis | 4.37% |
SUBORDINATED NOTES - Summary (D
SUBORDINATED NOTES - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 03, 2020 |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |||
Total junior subordinated debentures, at carrying value | $ 39,257 | $ 39,238 | |
Subordinated Notes | |||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |||
Face amount | 40,000 | 40,000 | $ 40,000 |
Unamortized issuance costs | (743) | (762) | |
Total junior subordinated debentures, at carrying value | $ 39,257 | $ 39,238 |
JUNIOR SUBORDINATED DEBENTURE_3
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Carrying Values (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)subsidiary | Dec. 31, 2020USD ($) | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Number of subsidiary business trusts | subsidiary | 5 | |
Total junior subordinated debentures, at carrying value | $ 39,257 | $ 39,238 |
Junior Subordinated Debentures Issued | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Face amount | 38,765 | 38,765 |
Total junior subordinated debentures, at carrying value | 37,665 | 37,648 |
Junior Subordinated Debentures Issued | Heartland Bancorp, Inc. Capital Trust B | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Face amount | 10,310 | 10,310 |
Junior Subordinated Debentures Issued | Heartland Bancorp, Inc. Capital Trust C | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Face amount | 10,310 | 10,310 |
Junior Subordinated Debentures Issued | Heartland Bancorp, Inc. Capital Trust D | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Face amount | 5,155 | 5,155 |
Junior Subordinated Debentures Issued | FFBI Capital Trust I | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Face amount | 7,217 | 7,217 |
Junior Subordinated Debentures Issued | National Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Face amount | 5,773 | 5,773 |
Unamortized discount | $ (1,100) | $ (1,117) |
JUNIOR SUBORDINATED DEBENTURE_4
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Interest rate and maturities (Details) - Junior Subordinated Debentures Issued | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Heartland Bancorp, Inc. Capital Trust B | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Interest Rate | 2.99% | 2.99% |
Heartland Bancorp, Inc. Capital Trust B | LIBOR | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Spread on interest rate basis | 2.75% | |
Heartland Bancorp, Inc. Capital Trust C | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Interest Rate | 1.71% | 1.75% |
Heartland Bancorp, Inc. Capital Trust C | LIBOR | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Spread on interest rate basis | 1.53% | |
Heartland Bancorp, Inc. Capital Trust D | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Interest Rate | 1.53% | 1.57% |
Heartland Bancorp, Inc. Capital Trust D | LIBOR | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Spread on interest rate basis | 1.35% | |
FFBI Capital Trust I | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Interest Rate | 3.04% | 3.04% |
FFBI Capital Trust I | LIBOR | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Spread on interest rate basis | 2.80% | |
National Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Interest Rate | 3.08% | 3.12% |
National Bancorp Statutory Trust I | LIBOR | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Spread on interest rate basis | 2.90% |
JUNIOR SUBORDINATED DEBENTURE_5
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Narrative (Details) - period | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Trust preferred securities qualified as Tier 1 capital | 100.00% | 100.00% |
Junior Subordinated Debentures Issued | ||
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Maximum deferred interest period quarters | 20 | |
Period shorten the maturity date from the event | 90 days |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Cash pledged | $ 1,310,000 | $ 1,630,000 | |
Securities pledged | $ 9,974,000 | $ 15,490,000 | |
Interest rate swap | Cash flow hedge | Variable-rate borrowings | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Notional amount | $ 10,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated - Interest rate swap - Cash flow hedge - Other liabilities - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative financial liability fair value | $ (1,140) | $ (1,458) |
Derivative financial liability notional amount | $ 17,000 | $ 17,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - Cash flow hedge - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income | $ (99) | $ (2) |
Taxable loan interest income | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income | 32 | |
Subordinated debentures interest expense | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income | $ (99) | $ (34) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not designated - Interest rate swap - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Gross gains | $ 7,564 | $ 13,571 | |
Gross losses | (7,564) | $ (13,571) | |
Other assets | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Derivative asset notional amount | 119,370 | $ 122,313 | |
Derivative financial assets fair value | 8,560 | 15,360 | |
Other assets | Commercial Borrower | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Derivative asset notional amount | 115,378 | 122,313 | |
Derivative financial assets fair value | 8,496 | 15,360 | |
Other assets | Financial Institutions Borrower | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Derivative asset notional amount | 3,992 | ||
Derivative financial assets fair value | 64 | ||
Other liabilities | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Derivative liability notional amount | 119,370 | 122,313 | |
Derivative financial liabilities fair value | (8,560) | (15,360) | |
Other liabilities | Commercial Borrower | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Derivative liability notional amount | 3,992 | ||
Derivative financial liabilities fair value | 64 | ||
Other liabilities | Financial Institutions Borrower | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Derivative liability notional amount | 115,378 | 122,313 | |
Derivative financial liabilities fair value | $ (8,496) | $ (15,360) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||
Balance | $ 363,917 | $ 332,918 |
Other comprehensive income (loss), before tax | (22,724) | 6,625 |
Income tax expense (benefit) | (6,477) | 1,888 |
Other comprehensive income (loss), after tax | (16,247) | 4,737 |
Balance | 357,406 | 339,813 |
Accumulated Other Comprehensive Income (Loss) | ||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||
Balance | 18,153 | 7,832 |
Other comprehensive income (loss) before reclassifications | (22,855) | 6,632 |
Reclassifications | 131 | (7) |
Other comprehensive income (loss), before tax | (22,724) | 6,625 |
Income tax expense (benefit) | (6,477) | 1,888 |
Other comprehensive income (loss), after tax | (16,247) | 4,737 |
Balance | 1,906 | 12,569 |
Unrealized gains (losses) on available-for-sale securities | ||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||
Balance | 19,578 | 8,659 |
Transfer from available-for-sale to held-to-maturity | 3,890 | |
Other comprehensive income (loss) before reclassifications | (23,074) | 7,602 |
Other comprehensive income (loss), before tax | (23,074) | 7,602 |
Income tax expense (benefit) | (6,577) | 2,166 |
Other comprehensive income (loss), after tax | (16,497) | 5,436 |
Balance | 6,971 | 14,095 |
Unrealized gains (losses) on held-to-maturity securities | ||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||
Balance | (118) | (131) |
Transfer from available-for-sale to held-to-maturity | (3,890) | |
Reclassifications | 32 | (9) |
Other comprehensive income (loss), before tax | 32 | (9) |
Income tax expense (benefit) | 9 | (2) |
Other comprehensive income (loss), after tax | 23 | (7) |
Balance | (3,985) | (138) |
Derivatives | ||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||
Balance | (1,307) | (696) |
Other comprehensive income (loss) before reclassifications | 219 | (970) |
Reclassifications | 99 | 2 |
Other comprehensive income (loss), before tax | 318 | (968) |
Income tax expense (benefit) | 91 | (276) |
Other comprehensive income (loss), after tax | 227 | (692) |
Balance | $ (1,080) | $ (1,388) |
INCOME TAXES - Allocation (Deta
INCOME TAXES - Allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Current | ||
Federal | $ 3,170 | $ 1,721 |
State | 1,698 | 988 |
Total current | 4,868 | 2,709 |
Deferred | ||
Federal | 457 | (457) |
State | 228 | (221) |
Total deferred | 685 | (678) |
Income tax expense | $ 5,553 | $ 2,031 |
INCOME TAXES - Federal income t
INCOME TAXES - Federal income tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Federal income tax expense: | ||
Federal income tax, at statutory rate | $ 4,368 | $ 1,733 |
Federal income tax, at statutory rate (as a percent) | 21.00% | 21.00% |
Increase (decrease) resulting from: | ||
Federally tax exempt interest income | $ (367) | $ (357) |
Federally tax exempt interest income (as a percent) | (1.80%) | (4.30%) |
State taxes, net of federal benefit | $ 1,514 | $ 631 |
State taxes, net of federal benefit (as a percent) | 7.30% | 7.60% |
Other | $ 38 | $ 24 |
Other (as a percent) | 0.20% | 0.30% |
Income tax expense | $ 5,553 | $ 2,031 |
Total (as a percent) | 26.70% | 24.60% |
INCOME TAXES - Components of ne
INCOME TAXES - Components of net deferred tax asset (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Allowance for loan losses | $ 8,170 | $ 9,046 |
Compensation related | 1,802 | 2,301 |
Deferred loan fees | 2,470 | 1,595 |
Nonaccrual interest | 646 | 660 |
Foreclosed assets | 59 | 45 |
Goodwill | 287 | 336 |
Other | 1,049 | 1,011 |
Total deferred tax assets | 14,483 | 14,994 |
Deferred tax liabilities | ||
Fixed asset depreciation | 4,368 | 4,361 |
Mortgage servicing rights | 2,175 | 1,692 |
Other purchase accounting adjustments | 1,080 | 1,115 |
Intangible assets | 521 | 580 |
Prepaid assets | 557 | 685 |
Net unrealized gain on debt securities | 1 | 6,569 |
Other | 367 | 370 |
Total deferred tax liabilities | 9,069 | 15,372 |
Net deferred tax asset (liability) | $ (378) | |
Net deferred tax asset (liability) | $ 5,414 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income | $ 15,245 | $ 6,221 |
Earnings allocated to unvested restricted stock units | (31) | (15) |
Numerator for earnings per share - basic | $ 15,214 | $ 6,206 |
Denominator: | ||
Weighted average common shares outstanding | 27,430,912 | 27,457,306 |
Dilutive effect of outstanding restricted stock units | 2,489 | |
Weighted average common shares outstanding, including all dilutive potential shares | 27,433,401 | 27,457,306 |
Earnings per share - Basic | $ 0.55 | $ 0.23 |
Earnings per share - Diluted | $ 0.55 | $ 0.23 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - SERP - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
DEFERRED COMPENSATION | ||
Period over which SERP benefit payments to be paid | 30 years | |
Deferred compensation expense | $ 970 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Details) $ / shares in Units, $ in Thousands | Feb. 19, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)iteminstallment$ / shares | Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2020USD ($) | Oct. 09, 2019shares |
STOCK-BASED COMPENSATION PLANS | |||||
Total stock-based compensation expense (benefit) | $ 259 | $ (268) | |||
Number of shares participant is entitled to receive | item | 1 | ||||
Restricted Stock Units | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Total stock-based compensation expense (benefit) | $ 114 | $ 67 | |||
Granted (in dollars per unit) | $ / shares | $ 15.53 | $ 19.03 | |||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 1,602 | ||||
Restricted Stock Units | Key employees | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Shares granted | shares | 43,047 | ||||
Vesting period | 3 years | ||||
Restricted Stock Units | Non employee directors | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Shares granted | shares | 3,300 | ||||
Fair value of units granted | $ 720 | ||||
Granted (in dollars per unit) | $ / shares | $ 15.53 | ||||
Performance restricted stock units | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Total stock-based compensation expense (benefit) | $ 15 | ||||
Granted (in dollars per unit) | $ / shares | $ 15.53 | ||||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 390 | ||||
Performance restricted stock units | Key employees | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Shares granted | shares | 28,697 | ||||
Vesting period | 3 years | ||||
Fair value of units granted | $ 405 | ||||
Granted (in dollars per unit) | $ / shares | $ 15.53 | ||||
Performance restricted stock units | Minimum | Key employees | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Percentage of the number of units granted that may be earned | 0.00% | ||||
Performance restricted stock units | Maximum | Key employees | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Percentage of the number of units granted that may be earned | 150.00% | ||||
Total awards classified as equity | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Total stock-based compensation expense (benefit) | 129 | $ 67 | |||
Stock Appreciation Rights | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Total stock-based compensation expense (benefit) | 130 | $ (335) | |||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 67 | ||||
Number of installments | installment | 4 | ||||
Stock appreciation rights plan liability recorded for the outstanding units | $ 402 | $ 272 | |||
Stock appreciation rights plan liability recorded for the previously exercised units | $ 797 | $ 1,087 | |||
Number of equal annual installments in which the liability recorded for previously exercised units will be paid | installment | 3 | ||||
Omnibus Incentive Plan | |||||
STOCK-BASED COMPENSATION PLANS | |||||
Authorized number of shares | shares | 1,820,000 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Summary (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Stock Units | ||
Stock-based compensation plans | ||
Outstanding (in units) | 71,000 | |
Granted (in units) | 46,347 | 73,150 |
Vested (in units) | (20,225) | |
Outstanding (in units) | 97,122 | 73,150 |
Weighted Average Grant Date Assigned Value | ||
Outstanding (in dollars per unit) | $ 18.98 | |
Granted (in dollars per unit) | 15.53 | $ 19.03 |
Vested (in dollars per unit) | 18.86 | |
Outstanding (in dollars per unit) | $ 17.36 | $ 19.03 |
Restricted Stock Units | $ 15.53 | ||
Stock-based compensation plans | ||
Outstanding (in units) | 46,347 | |
Weighted Average Grant Date Assigned Value | ||
Outstanding (in dollars per unit) | $ 15.53 | |
Weighted average remaining contractual term | 2 years 9 months 18 days | |
Restricted Stock Units | $19.03 | ||
Stock-based compensation plans | ||
Outstanding (in units) | 50,775 | |
Weighted Average Grant Date Assigned Value | ||
Outstanding (in dollars per unit) | $ 19.03 | |
Weighted average remaining contractual term | 2 years 9 months 18 days | |
Performance restricted stock units | ||
Stock-based compensation plans | ||
Granted (in units) | 43,046 | |
Outstanding (in units) | 43,046 | |
Weighted Average Grant Date Assigned Value | ||
Granted (in dollars per unit) | $ 15.53 | |
Outstanding (in dollars per unit) | $ 15.53 | |
Performance restricted stock units | $ 15.53 | ||
Stock-based compensation plans | ||
Outstanding (in units) | 43,046 | |
Weighted Average Grant Date Assigned Value | ||
Outstanding (in dollars per unit) | $ 15.53 | |
Weighted average remaining contractual term | 2 years 10 months 24 days | |
Stock Appreciation Rights | ||
Stock-based compensation plans | ||
Outstanding (in units) | 105,570 | 110,160 |
Granted (in units) | ||
Expired (in units) | (1,530) | |
Outstanding (in units) | 104,040 | 110,160 |
Exercisable (in shares) | 85,680 | |
Weighted Average Grant Date Assigned Value | ||
Outstanding (in dollars per unit) | $ 16.32 | $ 16.32 |
Expired (in dollars per unit) | (16.32) | |
Outstanding (in dollars per unit) | $ 16.32 | $ 16.32 |
Weighted average remaining contractual term | 7 years 10 months 24 days |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock Appreciation Rights | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.55% | 0.80% |
Expected volatility | 34.96% | 34.72% |
Expected life (in years) | 8 years 4 months 24 days | 8 years 8 months 12 days |
Expected dividend yield | 3.50% | 3.96% |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
REGULATORY MATTERS | ||
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 2.5 | 2.5 |
Heartland Bank and Trust Company | ||
REGULATORY MATTERS | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 397,098 | $ 382,511 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 199,847 | 195,787 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 249,809 | 244,733 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 368,339 | 351,904 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 149,885 | 146,840 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 199,847 | 195,787 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 368,339 | 351,904 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 112,414 | 110,130 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 162,376 | 159,077 |
Tier 1 Capital (to Average Assets), Actual Amount | 368,339 | 351,904 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 148,616 | 143,296 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 185,770 | $ 179,120 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 15.90 | 15.63 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8 | 8 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10 | 10 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 14.74 | 14.38 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 6 | 6 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8 | 8 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 14.74% | 14.38% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 9.91 | 9.82 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5 | 5 |
Consolidated HBT Financial, Inc. | ||
REGULATORY MATTERS | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 434,408 | $ 426,283 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 200,018 | 195,970 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 366,392 | 356,410 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 150,014 | 146,977 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 329,892 | 319,927 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 112,510 | 110,233 |
Tier 1 Capital (to Average Assets), Actual Amount | 366,392 | 356,410 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 148,768 | $ 143,454 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 17.37 | 17.40 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 8 | 8 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 14.65 | 14.55 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 6 | 6 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 13.19% | 13.06% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 9.85 | 9.94 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 4 | 4 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Transfer of assets from level 1 to level 2 | $ 0 | $ 0 | |
Transfer of assets from level 2 to level 1 | 0 | 0 | |
Transfer of assets in to level 3 | 0 | 0 | |
Transfer of assets out of level 3 | 0 | 0 | |
Transfer of liabilities from level 1 to level 2 | 0 | 0 | |
Transfer of liabilities from level 2 to level 1 | 0 | 0 | |
Transfer of liabilities in to level 3 | 0 | 0 | |
Transfer of liabilities out of level 3 | 0 | $ 0 | |
Debt securities available-for-sale, at fair value | 856,835 | $ 922,869 | |
Equity securities | 3,332 | 3,292 | |
Fair value | 7,629 | 5,934 | |
U.S. government agency | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 127,938 | 121,993 | |
Municipal | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 282,333 | 274,261 | |
Mortgage-backed: Agency residential | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 169,104 | 203,252 | |
Mortgage-backed: Agency commercial | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 207,997 | 250,766 | |
Corporate | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 69,463 | 72,597 | |
Recurring | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Equity securities | 3,332 | 3,292 | |
Fair value | 7,629 | 5,934 | |
Derivative financial assets fair value | 8,560 | 15,360 | |
Derivative financial liabilities fair value | 9,700 | 16,818 | |
Recurring | U.S. government agency | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 127,938 | 121,993 | |
Recurring | Municipal | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 282,333 | 274,261 | |
Recurring | Mortgage-backed: Agency residential | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 169,104 | 203,252 | |
Recurring | Mortgage-backed: Agency commercial | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 207,997 | 250,766 | |
Recurring | Corporate | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 69,463 | 72,597 | |
Recurring | Level 1 | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Equity securities | 3,332 | 3,292 | |
Recurring | Level 2 | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Derivative financial assets fair value | 8,560 | 15,360 | |
Derivative financial liabilities fair value | 9,700 | 16,818 | |
Recurring | Level 2 | U.S. government agency | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 127,938 | 121,993 | |
Recurring | Level 2 | Municipal | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 282,333 | 274,261 | |
Recurring | Level 2 | Mortgage-backed: Agency residential | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 169,104 | 203,252 | |
Recurring | Level 2 | Mortgage-backed: Agency commercial | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 207,997 | 250,766 | |
Recurring | Level 2 | Corporate | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Debt securities available-for-sale, at fair value | 69,463 | 72,597 | |
Recurring | Level 3 | |||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||
Fair value | $ 7,629 | $ 5,934 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | $ 7,629 | $ 5,934 |
Recurring | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | 7,629 | 5,934 |
Recurring | Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | $ 7,629 | $ 5,934 |
Valuation Technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Recurring | Level 3 | Constant pre-payment rates (CPR) | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | $ 7,629 | $ 5,934 |
Recurring | Level 3 | Constant pre-payment rates (CPR) | Minimum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 7 | 7 |
Recurring | Level 3 | Constant pre-payment rates (CPR) | Maximum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 85 | 85 |
Recurring | Level 3 | Constant pre-payment rates (CPR) | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 12.3 | 17.3 |
Recurring | Level 3 | Discount rate | Minimum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 8.8 | 9 |
Recurring | Level 3 | Discount rate | Maximum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 11 | 11 |
Recurring | Level 3 | Discount rate | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 9 | 9 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | $ 12,882 | $ 14,713 |
Collateral-dependent impaired loans | 30,579 | 33,320 |
Bank premises held for sale | 121 | 121 |
Foreclosed assets | 4,748 | 4,168 |
Level 2 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | 12,882 | 14,713 |
Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Collateral-dependent impaired loans | 30,579 | 33,320 |
Bank premises held for sale | 121 | 121 |
Foreclosed assets | $ 4,748 | $ 4,168 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Nonrecurring - Level 3 $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Collateral-dependent impaired loans | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Alternative Investment, Measurement Input [Extensible List] | hbt:AppraisalAdjustmentsMember | hbt:AppraisalAdjustmentsMember |
Collateral-dependent impaired loans | Appraisal of collateral | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 30,579 | $ 33,320 |
Bank premises held for sale | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Alternative Investment, Measurement Input [Extensible List] | hbt:AppraisalAdjustmentsMember | hbt:AppraisalAdjustmentsMember |
Bank premises held for sale | Appraisal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 121 | $ 121 |
Measurement input | 7 | 7 |
Bank premises held for sale | Appraisal | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 7 | 7 |
Foreclosed assets | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Alternative Investment, Measurement Input [Extensible List] | hbt:AppraisalAdjustmentsMember | hbt:AppraisalAdjustmentsMember |
Foreclosed assets | Appraisal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 4,748 | $ 4,168 |
Measurement input | 7 | 7 |
Foreclosed assets | Appraisal | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 7 | 7 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Debt securities held-to-maturity | $ 195,608 | $ 72,441 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 429,736 | 312,451 |
Level 1 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 429,736 | 312,451 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Debt securities held-to-maturity | 192,994 | 68,395 |
Accrued interest receivable | 12,718 | 14,255 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 41,976 | 45,736 |
Accrued interest payable | 551 | 1,151 |
Level 2 | Estimated Fair Value | ||
Financial assets: | ||
Debt securities held-to-maturity | 195,608 | 72,441 |
Accrued interest receivable | 12,718 | 14,255 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 41,976 | 45,736 |
Accrued interest payable | 551 | 1,151 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Restricted stock | 2,498 | 2,498 |
Loans, net | 2,241,946 | 2,215,168 |
Investments in unconsolidated subsidiaries | 1,165 | 1,165 |
Financial liabilities: | ||
Time deposits | 285,461 | 299,474 |
Level 3 | Estimated Fair Value | ||
Financial assets: | ||
Restricted stock | 2,498 | 2,498 |
Loans, net | 2,264,145 | 2,235,767 |
Investments in unconsolidated subsidiaries | 1,165 | 1,165 |
Financial liabilities: | ||
Time deposits | 286,430 | 300,989 |
Subordinated Notes | Level 3 | Carrying Amount | ||
Financial liabilities: | ||
Subordinated debt | 39,257 | 39,238 |
Subordinated Notes | Level 3 | Estimated Fair Value | ||
Financial liabilities: | ||
Subordinated debt | 38,162 | 38,403 |
Junior Subordinated Debentures Issued | Level 3 | Carrying Amount | ||
Financial liabilities: | ||
Subordinated debt | 37,665 | 37,648 |
Junior Subordinated Debentures Issued | Level 3 | Estimated Fair Value | ||
Financial liabilities: | ||
Subordinated debt | $ 23,528 | $ 23,766 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Standby letters of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial instruments off-balance sheet credit risks | $ 10,235 | $ 10,031 |
Commitments to extend credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial instruments off-balance sheet credit risks | $ 523,646 | $ 530,191 |