DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 24, 2023 | |
DOCUMENT AND ENTITY INFORMATION | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
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 $0.01 per share | |
Trading Symbol | HBT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,846,236 | |
Entity Central Index Key | 0000775215 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 28,044 | $ 18,970 |
Interest-bearing deposits with banks | 81,764 | 95,189 |
Cash and cash equivalents | 109,808 | 114,159 |
Debt securities available-for-sale, at fair value (allowance for credit losses of $800 at 2023) | 822,788 | |
Debt securities available-for-sale, at fair value (allowance for credit losses of $800 at 2023) | 843,524 | |
Debt securities held-to-maturity (fair value of $469,921 at 2023 and $478,801 at 2022) | 533,231 | |
Debt securities held-to-maturity (fair value of $481,925 at 2023 and $478,801 at 2022) | 541,600 | |
Equity securities with readily determinable fair value | 3,152 | 3,029 |
Equity securities with no readily determinable fair value | 2,275 | 1,977 |
Restricted stock, at cost | 11,345 | 7,965 |
Loans held for sale | 8,829 | 615 |
Loans, before allowance for credit losses | 3,244,655 | |
Loans, before allowance for credit losses | 2,620,253 | |
Allowance for credit losses | (37,814) | |
Allowance for credit losses | (25,333) | |
Loans, net of allowance for credit losses | 3,206,841 | |
Loans, net of allowance for credit losses | 2,594,920 | |
Bank owned life insurance | 23,594 | 7,557 |
Bank premises and equipment, net | 65,029 | 50,469 |
Bank premises held for sale | 35 | 235 |
Foreclosed assets | 3,080 | 3,030 |
Goodwill | 59,876 | 29,322 |
Intangible assets, net | 22,122 | 1,070 |
Mortgage servicing rights, at fair value | 20,133 | 10,147 |
Investments in unconsolidated subsidiaries | 1,614 | 1,165 |
Accrued interest receivable | 19,900 | 19,506 |
Other assets | 62,158 | 56,444 |
Total assets | 4,975,810 | 4,286,734 |
Deposits: | ||
Noninterest-bearing | 1,125,823 | 994,954 |
Interest-bearing | 3,038,700 | 2,592,070 |
Total deposits | 4,164,523 | 3,587,024 |
Securities sold under agreements to repurchase | 38,729 | 43,081 |
Federal Home Loan Bank advances | 177,572 | 160,000 |
Subordinated notes | 39,435 | 39,395 |
Junior subordinated debentures issued to capital trusts | 52,760 | 37,780 |
Other liabilities | 51,939 | 45,822 |
Total liabilities | 4,524,958 | 3,913,102 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
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 32,730,698 at 2023 and 29,308,491 at 2022; shares outstanding of 31,865,868 at 2023 and 28,752,626 at 2022 | 327 | 293 |
Surplus | 294,875 | 222,783 |
Retained earnings | 241,777 | 232,004 |
Accumulated other comprehensive income (loss) | (70,662) | (71,759) |
Treasury stock at cost, 864,830 shares at 2023 and 555,865 at 2022 | (15,465) | (9,689) |
Total stockholders' equity | 450,852 | 373,632 |
Total liabilities and stockholders' equity | $ 4,975,810 | $ 4,286,734 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Stockholders' Equity | ||
Allowance for credit losses | $ 800 | |
Debt securities held-to-maturity | $ 469,921 | $ 478,801 |
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 | 32,730,698 | 29,308,491 |
Common stock, shares outstanding | 31,865,868 | 28,752,626 |
Treasury stock ,shares | 864,830 | 555,865 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Loans, including fees: | ||||
Taxable | $ 47,149 | $ 27,843 | $ 89,308 | $ 54,649 |
Federally tax exempt | 1,040 | 679 | 1,992 | 1,341 |
Securities: | ||||
Taxable | 6,518 | 5,663 | 13,134 | 10,312 |
Federally tax exempt | 1,162 | 1,138 | 2,359 | 2,178 |
Interest-bearing deposits in bank | 781 | 420 | 1,520 | 579 |
Other interest and dividend income | 118 | 14 | 234 | 33 |
Total interest and dividend income | 56,768 | 35,757 | 108,547 | 69,092 |
INTEREST EXPENSE | ||||
Deposits | 4,323 | 506 | 6,697 | 1,075 |
Securities sold under agreements to repurchase | 34 | 8 | 72 | 17 |
Borrowings | 2,189 | 1 | 3,486 | 2 |
Subordinated notes | 469 | 469 | 939 | 939 |
Junior subordinated debentures issued to capital trusts | 881 | 400 | 1,644 | 758 |
Total interest expense | 7,896 | 1,384 | 12,838 | 2,791 |
Net interest income | 48,872 | 34,373 | 95,709 | 66,301 |
PROVISION FOR CREDIT LOSSES | (230) | 145 | 5,980 | (439) |
Net interest income after provision for credit losses | 49,102 | 34,228 | 89,729 | 66,740 |
NONINTEREST INCOME | ||||
Mortgage servicing | 1,254 | 661 | 2,353 | 1,319 |
Mortgage servicing rights fair value adjustment | 141 | 366 | (483) | 2,095 |
Gains on sale of mortgage loans | 373 | 326 | 649 | 913 |
Realized gains (losses) on sales of securities | (1,007) | |||
Unrealized gains (losses) on equity securities | 7 | (153) | (15) | (340) |
Gains (losses) on foreclosed assets | (97) | (7) | (107) | 33 |
Gains (losses) on other assets | 109 | (43) | 109 | 150 |
Income on bank owned life insurance | 147 | 41 | 262 | 81 |
Other noninterest income | 877 | 532 | 1,620 | 1,170 |
Total noninterest income | 9,914 | 8,551 | 17,351 | 18,594 |
NONINTEREST EXPENSE | ||||
Salaries | 16,660 | 12,936 | 36,071 | 25,737 |
Employee benefits | 2,707 | 1,984 | 5,042 | 4,428 |
Occupancy of bank premises | 2,785 | 1,741 | 4,887 | 3,801 |
Furniture and equipment | 809 | 623 | 1,468 | 1,175 |
Data processing | 2,883 | 1,990 | 7,206 | 3,643 |
Marketing and customer relations | 1,359 | 1,205 | 2,195 | 2,056 |
Amortization of intangible assets | 720 | 245 | 1,230 | 490 |
FDIC insurance | 630 | 298 | 1,193 | 586 |
Loan collection and servicing | 348 | 278 | 626 | 435 |
Foreclosed assets | 97 | 31 | 158 | 163 |
Other noninterest expense | 4,975 | 2,511 | 9,830 | 5,485 |
Total noninterest expense | 33,973 | 23,842 | 69,906 | 47,999 |
INCOME BEFORE INCOME TAX EXPENSE | 25,043 | 18,937 | 37,174 | 37,335 |
INCOME TAX EXPENSE | 6,570 | 4,852 | 9,493 | 9,646 |
NET INCOME | $ 18,473 | $ 14,085 | $ 27,681 | $ 27,689 |
EARNINGS PER SHARE - BASIC | $ 0.58 | $ 0.49 | $ 0.88 | $ 0.96 |
EARNINGS PER SHARE - DILUTED | $ 0.58 | $ 0.49 | $ 0.88 | $ 0.95 |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING - Basic | 31,980,133 | 28,891,202 | 31,481,439 | 28,938,634 |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING - Diluted | 32,079,983 | 28,944,876 | 31,566,420 | 28,987,322 |
Card income | ||||
NONINTEREST INCOME | ||||
Revenue | $ 2,905 | $ 2,714 | $ 5,563 | $ 5,118 |
Wealth management fees | ||||
NONINTEREST INCOME | ||||
Revenue | 2,279 | 2,322 | 4,617 | 4,611 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME | ||||
Revenue | $ 1,919 | $ 1,792 | $ 3,790 | $ 3,444 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
NET INCOME | $ 18,473 | $ 14,085 | $ 27,681 | $ 27,689 |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Unrealized (losses) on debt securities available-for-sale | (12,638) | (24,151) | (1,195) | (77,573) |
Reclassification adjustment for losses on securities available-for-sale realized in income | 200 | 1,807 | ||
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity | 475 | 549 | 965 | 730 |
Unrealized gains on derivative instruments | 201 | 149 | 161 | 743 |
Reclassification adjustment for net settlements on derivative instruments | (109) | 67 | (203) | 163 |
Total other comprehensive (loss) income, before tax | (11,871) | (23,386) | 1,535 | (75,937) |
Income tax (benefit) expense | (3,384) | (6,666) | 438 | (21,646) |
Total other comprehensive (loss) income | (8,487) | (16,720) | 1,097 | (54,291) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 9,986 | $ (2,635) | $ 28,778 | $ (26,602) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance at Dec. 31, 2021 | $ 293 | $ 220,891 | $ 194,132 | $ 1,471 | $ (4,906) | $ 411,881 | ||
Balance (in shares) at Dec. 31, 2021 | 28,986,061 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 27,689 | 27,689 | ||||||
Other comprehensive income (loss) | (54,291) | (54,291) | ||||||
Stock-based compensation | 1,253 | 1,253 | ||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings | (57) | (57) | ||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 31,944 | |||||||
Repurchase of common stock | (3,351) | (3,351) | ||||||
Repurchase of common stock (in shares) | (186,808) | |||||||
Cash dividends and dividend equivalents | (9,315) | (9,315) | ||||||
Balance at Jun. 30, 2022 | $ 293 | 222,087 | 212,506 | (52,820) | (8,257) | 373,809 | ||
Balance (in shares) at Jun. 30, 2022 | 28,831,197 | |||||||
Balance at Mar. 31, 2022 | $ 293 | 221,735 | 203,076 | (36,100) | (5,849) | 383,155 | ||
Balance (in shares) at Mar. 31, 2022 | 28,967,943 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 14,085 | 14,085 | ||||||
Other comprehensive income (loss) | (16,720) | (16,720) | ||||||
Stock-based compensation | 352 | 352 | ||||||
Repurchase of common stock | (2,408) | (2,408) | ||||||
Repurchase of common stock (in shares) | (136,746) | |||||||
Cash dividends and dividend equivalents | (4,655) | (4,655) | ||||||
Balance at Jun. 30, 2022 | $ 293 | 222,087 | 212,506 | (52,820) | (8,257) | 373,809 | ||
Balance (in shares) at Jun. 30, 2022 | 28,831,197 | |||||||
Balance at Dec. 31, 2022 | $ 293 | 222,783 | 232,004 | (71,759) | (9,689) | 373,632 | ||
Balance (in shares) at Dec. 31, 2022 | 28,752,626 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 27,681 | 27,681 | ||||||
Other comprehensive income (loss) | 1,097 | 1,097 | ||||||
Stock-based compensation | 951 | 951 | ||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings | (181) | (181) | ||||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 43,607 | |||||||
Issuance of common stock in Town and Country acquisition | $ 34 | 71,322 | 71,356 | |||||
Issuance of common stock in Town and Country acquisition (in shares) | 3,378,600 | |||||||
Repurchase of common stock | (5,776) | (5,776) | ||||||
Repurchase of common stock (in shares) | (308,965) | |||||||
Cash dividends and dividend equivalents | (10,986) | (10,986) | ||||||
Balance at Jun. 30, 2023 | $ 327 | 294,875 | $ (6,922) | 241,777 | (70,662) | (15,465) | $ (6,922) | 450,852 |
Balance (in shares) at Jun. 30, 2023 | 31,865,868 | |||||||
Balance at Mar. 31, 2023 | $ 327 | 294,441 | 228,782 | (62,175) | (11,277) | 450,098 | ||
Balance (in shares) at Mar. 31, 2023 | 32,095,370 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 18,473 | 18,473 | ||||||
Other comprehensive income (loss) | (8,487) | (8,487) | ||||||
Stock-based compensation | 434 | 434 | ||||||
Repurchase of common stock | (4,188) | (4,188) | ||||||
Repurchase of common stock (in shares) | (229,502) | |||||||
Cash dividends and dividend equivalents | (5,478) | (5,478) | ||||||
Balance at Jun. 30, 2023 | $ 327 | $ 294,875 | $ (6,922) | $ 241,777 | $ (70,662) | $ (15,465) | $ (6,922) | $ 450,852 |
Balance (in shares) at Jun. 30, 2023 | 31,865,868 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Transactions, Parenthetical Disclosures [Abstract] | ||||
Cash dividends | $ 0.17 | $ 0.16 | $ 0.34 | $ 0.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 27,681 | $ 27,689 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 1,609 | 1,532 |
Provision for credit losses | 5,980 | (439) |
Net amortization of debt securities | 2,999 | 3,609 |
Deferred income tax expense | 802 | 141 |
Stock-based compensation | 951 | 1,253 |
Net accretion of discount and deferred loan fees on loans | (3,378) | (3,263) |
Net realized loss on sales of securities | 1,007 | |
Net unrealized loss on equity securities | 15 | 340 |
Net (gain) loss on disposals of bank premises and equipment | (32) | 14 |
Net gain on sales of bank premises held for sale | (75) | (187) |
Impairment losses on bank premises held for sale | 23 | |
Net gain on sales of foreclosed assets | (68) | (98) |
Write-down of foreclosed assets | 175 | 65 |
Amortization of intangibles | 1,230 | 490 |
Decrease (increase) in mortgage servicing rights | 483 | (2,095) |
Amortization of discount and issuance costs on subordinated notes and debentures | 71 | 73 |
Amortization of premium on Federal Home Loan Bank advances | 172 | |
Amortization of premium on interest-bearing time deposits with banks | 5 | |
Amortization of discount on time deposits | (239) | (126) |
Mortgage loans originated for sale | (35,682) | (38,091) |
Proceeds from sale of mortgage loans | 29,729 | 38,634 |
Net gain on sale of mortgage loans | (649) | (913) |
Increase in cash surrender value of bank owned life insurance | (255) | (81) |
Decrease in accrued interest receivable | 2,719 | 638 |
Decrease in other assets | 4,864 | 1,827 |
Decrease in other liabilities | (3,978) | (245) |
Net cash provided by operating activities | 36,131 | 30,795 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from maturities of interest-bearing time deposits with banks | 249 | 485 |
Proceeds from sales of securities available-for-sale | 145,844 | |
Proceeds from paydowns, maturities, and calls of debt securities | 50,540 | 74,703 |
Purchase of securities | (2,985) | (349,769) |
Purchase of loans | (36,964) | |
Net decrease in loans | 51,609 | 52,336 |
Purchase of restricted stock | (11,622) | (74) |
Proceeds from redemption of restricted stock | 11,064 | |
Purchases of bank premises and equipment | (1,495) | (496) |
Proceeds from sales of bank premises and equipment | 151 | |
Proceeds from sales of bank premises held for sale | 310 | 1,297 |
Proceeds from sales of foreclosed assets | 284 | 447 |
Net cash paid for acquisition of Town and Country | (14,454) | |
Net cash provided by (used in) investing activities | 192,531 | (221,071) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net decrease in deposits | (142,679) | (36,073) |
Net decrease in repurchase agreements | (4,352) | (10,165) |
Net decrease in Federal Home Loan Bank advances | (69,039) | |
Taxes paid related to the vesting of restricted stock units | (181) | (57) |
Repurchase of common stock | (5,776) | (3,351) |
Cash dividends and dividend equivalents paid | (10,986) | (9,315) |
Net cash used in financing activities | (233,013) | (58,961) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (4,351) | (249,237) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 114,159 | 409,268 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 109,808 | 160,031 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 11,815 | 2,860 |
Cash paid for income taxes | 8,997 | 7,845 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES | ||
Transfers of loans to foreclosed assets | 170 | $ 27 |
Transfers of bank premises and equipment to bank premises held for sale | $ 35 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
ACCOUNTING POLICIES | |
ACCOUNTING POLICIES | NOTE 1 – ACCOUNTING POLICIES Basis of Presentation HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “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 Illinois and Eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“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 SEC. 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 for the year ended December 31, 2022, filed with the SEC on March 8, 2023. The unaudited consolidated financial statements include all 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 may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. 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. Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with GAAP. 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 credit losses and fair value of assets acquired and liabilities assumed in business combinations. Segment Reporting The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. 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. Impact of Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after December 31, 2022 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $6.9 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The following table illustrates the impact of ASC 326 on the allowance for credit losses: January 1, 2023 Pre-ASC 326 Impact of As Reported Adoption ASC 326 Adoption under ASC 326 (dollars in thousands) Assets: Allowance for credit losses on loans Commercial and industrial $ 3,279 $ (822) $ 2,457 Commercial real estate - owner occupied 1,193 587 1,780 Commercial real estate - non-owner occupied 6,721 501 7,222 Construction and land development 4,223 1,969 6,192 Multi-family 1,472 85 1,557 One-to-four family residential 1,759 797 2,556 Agricultural and farmland 796 1,567 2,363 Municipal, consumer, and other 5,890 2,299 8,189 Allowance for credit losses on loans $ 25,333 $ 6,983 $ 32,316 Liabilities: Allowance for credit losses on unfunded commitments $ — $ 2,899 $ 2,899 The Company also adopted ASC 326 using the prospective transition approach for purchase credit deteriorated (“PCD”) financial assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $0.2 million to the allowance for credit losses. The remaining noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2023. On January 1, 2023, the Company also adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Recent Accounting Pronouncements In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities 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, |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2023 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 2 – ACQUISITIONS Town and Country Financial Corporation On February 1, 2023, HBT Financial acquired 100% of the issued and outstanding common stock of Town and Country Financial Corporation (“Town and Country”), the holding company for Town and Country Bank, pursuant to an Agreement and Plan of Merger dated August 23, 2022. Under the Agreement and Plan of Merger, Town and Country merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of Town and Country Bank with and into Heartland Bank, with Heartland Bank as the surviving entity. At the effective time of the merger, each share of Town and Country was converted into the right to receive, subject to the election and proration procedures as provided in the Merger Agreement, one of the following: (i) 1.9010 shares of HBT Financial’s common stock, or (ii) $35.66 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of 3,378,600 shares of HBT Financial’s common stock and $38.0 million in cash. In lieu of fractional shares, holders of Town and Country common stock received cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate transaction value was approximately $109.4 million. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of February 1, 2023. Goodwill of $30.6 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and Town and Country, and is nondeductible for tax purposes. The acquisition of Town and Country further enhanced HBT Financial’s footprint in Central Illinois, and expanded our footprint into metro-east St. Louis. During the three and six months ended June 30, 2023, HBT Financial incurred the following expenses related to the acquisition of Town and Country: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (dollars in thousands) PROVISION FOR CREDIT LOSSES $ — $ 5,924 NONINTEREST EXPENSE Salaries 66 3,584 Furniture and equipment 39 39 Data processing 176 2,031 Marketing and customer relations 10 24 Loan collection and servicing 125 125 Legal fees and other noninterest expense 211 1,964 Total noninterest expense 627 7,767 Total acquisition-related expenses $ 627 $ 13,691 There were no expenses related to the acquisition of Town and Country during the three and six months ended June 30, 2022. The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 23,542 Interest-bearing time deposits with banks 249 Debt securities 167,869 Equity securities 90 Restricted stock 2,822 Loans held for sale 1,612 Loans, before allowance for credit losses 635,376 Allowance for credit losses (1,247) Loans, net of allowance for credit losses 634,129 Bank owned life insurance 15,782 Bank premises and equipment 14,828 Foreclosed assets 271 Intangible assets 22,282 Mortgage servicing rights 10,469 Investments in unconsolidated subsidiaries 449 Accrued interest receivable 3,113 Other assets 8,061 Total assets acquired 905,568 Liabilities assumed: Deposits 720,417 FHLB advances 86,439 Junior subordinated debentures 14,949 Other liabilities 4,965 Total liabilities assumed 826,770 Net assets acquired $ 78,798 Consideration paid: Cash $ 37,996 Common stock 71,356 Total consideration paid $ 109,352 Goodwill $ 30,554 Of the loans acquired, there were $89.8 million which exhibited more-than-insignificant credit deterioration on the acquisition date. The following table provides a summary of these PCD loans at acquisition (dollars in thousands): Unpaid principal balance $ 89,822 Allowance for credit losses at acquisition (1,247) Non-credit discount (2,218) Purchase price $ 86,357 Additionally, subsequent to the Town and Country acquisition, HBT Financial recognized an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through an increase to the provision for credit losses. The following table provides the pro forma information for the results of operations for the three and six months ended June 30, 2023 and 2022, as if the acquisition of Town and Country had occurred on January 1, 2022. The pro forma results combine the historical results of Town and Country into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table. Pro Forma Pro Forma Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2023 2022 2023 2022 Total revenues (net interest income and noninterest income) $ 58,786 $ 53,431 $ 116,556 $ 107,943 Net income 18,185 16,833 28,200 36,190 Earnings per share - basic 0.57 0.55 0.89 1.17 Earnings per share - diluted 0.57 0.55 0.88 1.17 |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2023 | |
SECURITIES | |
SECURITIES | NOTE 3 – SECURITIES Debt Securities The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows: June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ 169,788 $ — $ (14,648) $ — $ 155,140 U.S. government agency 56,833 — (4,409) — 52,424 Municipal 273,263 18 (29,226) — 244,055 Mortgage-backed: Agency residential 208,470 — (18,920) — 189,550 Agency commercial 147,922 3 (17,039) — 130,886 Corporate 57,632 — (6,099) (800) 50,733 Total available-for-sale $ 913,908 $ 21 $ (90,341) $ (800) $ 822,788 June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-maturity: (dollars in thousands) U.S. government agency $ 88,436 $ — $ (9,615) $ 78,821 $ — Municipal 39,756 147 (422) 39,481 — Mortgage-backed: Agency residential 100,685 — (7,003) 93,682 — Agency commercial 304,354 — (46,417) 257,937 — Total held-to-maturity $ 533,231 $ 147 $ (63,457) $ 469,921 $ — December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ 169,860 $ — $ (15,345) $ 154,515 U.S. government agency 59,291 — (4,134) 55,157 Municipal 275,972 46 (32,189) 243,829 Mortgage-backed: Agency residential 213,676 5 (18,240) 195,441 Agency commercial 150,060 — (17,172) 132,888 Corporate 65,597 55 (3,958) 61,694 Total available-for-sale $ 934,456 $ 106 $ (91,038) $ 843,524 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: (dollars in thousands) U.S. government agency $ 88,424 $ — $ (9,728) $ 78,696 Municipal 42,167 195 (314) 42,048 Mortgage-backed: Agency residential 102,728 — (6,470) 96,258 Agency commercial 308,281 — (46,482) 261,799 Total held-to-maturity $ 541,600 $ 195 $ (62,994) $ 478,801 On March 31, 2022, 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: March 31, 2022 Amortized Cost Fair Value (dollars in thousands) U.S. government agency $ 78,841 $ 71,048 Mortgage-backed: Agency residential 8,175 7,651 Agency commercial 27,834 25,432 Total $ 114,850 $ 104,131 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. As of June 30, 2023 and December 31, 2022, the Bank had debt securities with a carrying value of $449.6 million and $332.6 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The amortized cost and fair value of debt securities by contractual maturity, as of June 30, 2023, 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 Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Due in 1 year or less $ 34,603 $ 33,740 $ 2,451 $ 2,454 Due after 1 year through 5 years 230,246 215,388 27,401 26,424 Due after 5 years through 10 years 236,936 204,230 92,657 84,186 Due after 10 years 55,731 48,994 5,683 5,238 Mortgage-backed: Agency residential 208,470 189,550 100,685 93,682 Agency commercial 147,922 130,886 304,354 257,937 Total $ 913,908 $ 822,788 $ 533,231 $ 469,921 The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of June 30, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position: Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total June 30, 2023 Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ — $ — $ (14,648) $ 155,140 $ (14,648) $ 155,140 U.S. government agency (270) 7,973 (4,139) 44,451 (4,409) 52,424 Municipal (723) 47,645 (28,503) 192,219 (29,226) 239,864 Mortgage-backed: Agency residential (1,305) 36,555 (17,615) 152,961 (18,920) 189,516 Agency commercial (345) 13,093 (16,694) 117,701 (17,039) 130,794 Corporate (1,994) 17,752 (3,928) 31,957 (5,922) 49,709 Total available-for-sale $ (4,637) $ 123,018 $ (85,527) $ 694,429 $ (90,164) $ 817,447 The following table presents 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 December 31, 2022: Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2022 Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ (8,401) $ 92,445 $ (6,944) $ 62,070 $ (15,345) $ 154,515 U.S. government agency (2,980) 47,370 (1,154) 7,787 (4,134) 55,157 Municipal (10,906) 149,261 (21,283) 87,794 (32,189) 237,055 Mortgage-backed: Agency residential (8,332) 127,288 (9,908) 65,692 (18,240) 192,980 Agency commercial (4,764) 62,672 (12,408) 70,216 (17,172) 132,888 Corporate (2,594) 52,190 (1,364) 5,600 (3,958) 57,790 Total available-for-sale (37,977) 531,226 (53,061) 299,159 (91,038) 830,385 Held-to-maturity: U.S. government agency (1,754) 15,751 (7,974) 62,945 (9,728) 78,696 Municipal (314) 23,433 — — (314) 23,433 Mortgage-backed: Agency residential (4,039) 78,452 (2,431) 17,806 (6,470) 96,258 Agency commercial (16,716) 103,298 (29,766) 158,501 (46,482) 261,799 Total held-to-maturity (22,823) 220,934 (40,171) 239,252 (62,994) 460,186 Total debt securities $ (60,800) $ 752,160 $ (93,232) $ 538,411 $ (154,032) $ 1,290,571 As of June 30, 2023, there were 587 debt securities in an unrealized loss position for a period of twelve months or more, and 350 debt securities in an unrealized loss position for a period of less than twelve months. U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks. Municipal securities include approximately 81% general obligation bonds as of June 30, 2023, which have a very low historical default rate due to issuers generally having taxing authority to service the debt. The remainder of the municipal securities are also of high credit quality with ratings of A+/A1 or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant. Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available financial data, and sector trends. An $0.8 million allowance for credit losses was recorded as of June 30, 2023, related to one bank subordinated debt security and reflected heightened potential credit risk following the recent failures of other banks. The related provision for credit losses were $0.2 million and $0.6 million during the three and six months ended June 30, 2023, respectively. For the other corporate securities, the changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. As of June 30, 2023, the Company did not intend to sell the debt securities that are in an unrealized or unrecognized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities. Accrued interest on debt securities totaled $6.1 million as of June 30, 2023 and is excluded from the estimate of credit losses. Sales of debt securities were as follows during the three and six months ended June 30: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Proceeds from sales $ — $ — $ 145,844 $ — Gross realized gains — — — — Gross realized losses — — (1,007) — Subsequent to June 30, 2023, the Company recognized $0.8 million of net losses on the sale of $39.4 million of debt securities. Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. 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 June 30, 2023 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,142 $ 2,578 Cumulative net unrealized gains (losses) 10 (303) Carrying value $ 3,152 $ 2,275 Readily No Readily Determinable Determinable December 31, 2022 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,142 $ 2,142 Cumulative net unrealized gains (losses) (113) (165) Carrying value $ 3,029 $ 1,977 As of June 30, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.1 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. As of December 31, 2022, 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 upward adjustments based on observable price changes to equity securities with no readily determinable fair value. There were no sales of equity securities during the three and six months ended June 30, 2023 and 2022. Unrealized gains (losses) on equity securities were as follows during the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Readily determinable fair value $ 7 $ (153) $ 123 $ (340) No readily determinable fair value — — (138) — Unrealized gains (losses) on equity securities $ 7 $ (153) $ (15) $ (340) |
LOANS AND RELATED ALLOWANCE FOR
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2023 | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | NOTE 4 – LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES Major categories of loans are summarized as follows: June 30, 2023 December 31, 2022 (dollars in thousands) Commercial and industrial $ 385,768 $ 266,757 Commercial real estate - owner occupied 303,522 218,503 Commercial real estate - non-owner occupied 882,598 713,202 Construction and land development 335,262 360,824 Multi-family 375,536 287,865 One-to-four family residential 482,442 338,253 Agricultural and farmland 259,858 237,746 Municipal, consumer, and other 219,669 197,103 Loans, before allowance for credit losses 3,244,655 2,620,253 Allowance for credit losses (37,814) (25,333) Loans, net of allowance for credit losses $ 3,206,841 $ 2,594,920 As of June 30, 2023 and December 31, 2022, commercial and industrial loans include $22 thousand and $28 thousand Paycheck Protection Program (“PPP”) loans, respectively. Allowance for Credit Losses Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. At June 30, 2023, the economic forecast used by management anticipates a mild recession starting in 2024, with the unemployment rate increasing and GDP growth slowing and then shrinking over the next 4 quarters considered in the forecast period. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management may make qualitative adjustments to the loss estimates, as necessary, to reflect other factors that influence credit losses. The following tables detail activity in the allowance for credit losses for the three and six months ended June 30: Three Months Ended June 30, 2023 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 2,932 $ 2,535 $ 7,840 $ 7,574 $ 2,151 $ 4,165 $ 2,674 $ 8,905 $ 38,776 Provision for credit losses 791 (175) (466) (1,745) 452 (121) (68) 252 (1,080) Charge-offs — — — — — (4) — (175) (179) Recoveries 12 2 164 5 — 37 1 76 297 Ending balance $ 3,735 $ 2,362 $ 7,538 $ 5,834 $ 2,603 $ 4,077 $ 2,607 $ 9,058 $ 37,814 Three Months Ended June 30, 2022 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 2,491 $ 1,511 $ 7,014 $ 4,493 $ 1,354 $ 1,583 $ 842 $ 5,220 $ 24,508 Provision for loan losses 450 (287) (408) (434) 21 51 82 670 145 Charge-offs — — — — — (47) — (112) (159) Recoveries 40 — 5 — — 109 — 86 240 Ending balance $ 2,981 $ 1,224 $ 6,611 $ 4,059 $ 1,375 $ 1,696 $ 924 $ 5,864 $ 24,734 Six Months Ended June 30, 2023 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 Adoption of ASC 326 (822) 587 501 1,969 85 797 1,567 2,299 6,983 PCD allowance established in acquisition 69 127 239 240 68 492 5 7 1,247 Provision for credit losses 1,178 444 (161) (606) 978 960 237 991 4,021 Charge-offs — (3) — — — (26) — (292) (321) Recoveries 31 14 238 8 — 95 2 163 551 Ending balance $ 3,735 $ 2,362 $ 7,538 $ 5,834 $ 2,603 $ 4,077 $ 2,607 $ 9,058 $ 37,814 Six Months Ended June 30, 2022 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 2,440 $ 1,840 $ 8,145 $ 4,914 $ 1,263 $ 1,311 $ 845 $ 3,178 $ 23,936 Provision for loan losses (203) (716) (1,804) (855) 112 171 79 2,777 (439) Charge-offs (5) — — — — (49) — (239) (293) Recoveries 749 100 270 — — 263 — 148 1,530 Ending balance $ 2,981 $ 1,224 $ 6,611 $ 4,059 $ 1,375 $ 1,696 $ 924 $ 5,864 $ 24,734 Gross charge-offs, further sorted by origination year, were as follows during the three and six months ended June 30, 2023: Gross Charge-Offs for the Three Months Ended June 30, 2023 Revolving Loans Term Loans by Origination Year Revolving Converted 2023 2022 2021 2020 2019 Prior Loans to Term Total (dollars in thousands) Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - owner occupied — — — — — — — — — Commercial real estate - non-owner occupied — — — — — — — — — Construction and land development — — — — — — — — — Multi-family — — — — — — — — — One-to-four family residential — — — — — 4 — — 4 Agricultural and farmland — — — — — — — — — Municipal, consumer, and other 100 21 — — — — 54 — 175 Total $ 100 $ 21 $ — $ — $ — $ 4 $ 54 $ — $ 179 Gross Charge-Offs for the Six Months Ended June 30, 2023 Revolving Loans Term Loans by Origination Year Revolving Converted 2023 2022 2021 2020 2019 Prior Loans to Term Total (dollars in thousands) Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - owner occupied — 3 — — — — — — 3 Commercial real estate - non-owner occupied — — — — — — — — — Construction and land development — — — — — — — — — Multi-family — — — — — — — — — One-to-four family residential — — — — 1 25 — — 26 Agricultural and farmland — — — — — — — — — Municipal, consumer, and other 135 74 — 9 — — 74 — 292 Total $ 135 $ 77 $ — $ 9 $ 1 $ 25 $ 74 $ — $ 321 The following tables present loans and the related allowance for credit losses by category: Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and June 30, 2023 Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 385,594 $ 303,271 $ 868,421 $ 335,024 $ 374,578 $ 476,326 $ 259,858 $ 203,767 $ 3,206,839 Individually evaluated for impairment 174 251 14,177 238 958 6,116 — 15,902 37,816 Total $ 385,768 $ 303,522 $ 882,598 $ 335,262 $ 375,536 $ 482,442 $ 259,858 $ 219,669 $ 3,244,655 Allowance for credit losses: Collectively evaluated for impairment $ 3,730 $ 2,350 $ 6,280 $ 5,834 $ 2,603 $ 3,705 $ 2,607 $ 5,656 $ 32,765 Individually evaluated for impairment 5 12 1,258 — — 372 — 3,402 5,049 Total $ 3,735 $ 2,362 $ 7,538 $ 5,834 $ 2,603 $ 4,077 $ 2,607 $ 9,058 $ 37,814 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and December 31, 2022 Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 261,833 $ 203,558 $ 671,663 $ 359,892 $ 287,298 $ 325,621 $ 233,118 $ 184,579 $ 2,527,562 Individually evaluated for impairment 4,818 11,366 30,509 82 — 8,399 4,033 12,508 71,715 Acquired with deteriorated credit quality 106 3,579 11,030 850 567 4,233 595 16 20,976 Total $ 266,757 $ 218,503 $ 713,202 $ 360,824 $ 287,865 $ 338,253 $ 237,746 $ 197,103 $ 2,620,253 Allowance for loan losses: Collectively evaluated for impairment $ 3,121 $ 1,008 $ 4,332 $ 4,221 $ 1,470 $ 1,709 $ 796 $ 2,327 $ 18,984 Individually evaluated for impairment 158 168 2,388 — — 44 — 3,562 6,320 Acquired with deteriorated credit quality — 17 1 2 2 6 — 1 29 Total $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 The following table presents collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans: Amortized Cost Allowance Primary Collateral Type for Credit June 30, 2023 Real Estate Vehicles Other Total Losses (dollars in thousands) Commercial and industrial $ — $ — $ 174 $ 174 $ 5 Commercial real estate - owner occupied 251 — — 251 12 Commercial real estate - non-owner occupied 14,177 — — 14,177 1,258 Construction and land development 238 — — 238 — Multi-family 958 — — 958 — One-to-four family residential 6,116 — — 6,116 372 Agricultural and farmland — — — — — Municipal, consumer, and other 15,826 31 45 15,902 3,402 Total $ 37,566 $ 31 $ 219 $ 37,816 $ 5,049 Accrued interest on loans totaled $13.7 million as of June 30, 2023 and is excluded from the estimate of credit losses. Pre-ASC 326 Adoption Impaired Loan Disclosures The following table presents loans individually evaluated for impairment by category of loans: Unpaid Principal Recorded Related December 31, 2022 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 268 $ 254 $ 158 Commercial real estate - owner occupied 635 610 168 Commercial real estate - non-owner occupied 14,269 14,261 2,388 Construction and land development — — — Multi-family — — — One-to-four family residential 569 524 44 Agricultural and farmland — — — Municipal, consumer, and other 8,152 8,131 3,562 Total $ 23,893 $ 23,780 $ 6,320 With no related allowance: Commercial and industrial $ 4,564 $ 4,564 $ — Commercial real estate - owner occupied 10,912 10,756 — Commercial real estate - non-owner occupied 16,327 16,248 — Construction and land development 92 82 — Multi-family — — — One-to-four family residential 9,181 7,875 — Agricultural and farmland 4,440 4,033 — Municipal, consumer, and other 4,410 4,377 — Total $ 49,926 $ 47,935 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 4,832 $ 4,818 $ 158 Commercial real estate - owner occupied 11,547 11,366 168 Commercial real estate - non-owner occupied 30,596 30,509 2,388 Construction and land development 92 82 — Multi-family — — — One-to-four family residential 9,750 8,399 44 Agricultural and farmland 4,440 4,033 — Municipal, consumer, and other 12,562 12,508 3,562 Total $ 73,819 $ 71,715 $ 6,320 The following tables present the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans: Three Months Ended June 30, 2022 Average Interest Recorded Income Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 267 $ 4 Commercial real estate - owner occupied 745 11 Commercial real estate - non-owner occupied 14,603 185 Construction and land development — — Multi-family — — One-to-four family residential 548 4 Agricultural and farmland — — Municipal, consumer, and other 8,344 46 Total $ 24,507 $ 250 With no related allowance: Commercial and industrial $ 15,156 $ 156 Commercial real estate - owner occupied 11,887 141 Commercial real estate - non-owner occupied 17,947 340 Construction and land development 2,012 26 Multi-family — — One-to-four family residential 8,181 84 Agricultural and farmland 252 3 Municipal, consumer, and other 4,480 33 Total $ 59,915 $ 783 Total loans individually evaluated for impairment: Commercial and industrial $ 15,423 $ 160 Commercial real estate - owner occupied 12,632 152 Commercial real estate - non-owner occupied 32,550 525 Construction and land development 2,012 26 Multi-family — — One-to-four family residential 8,729 88 Agricultural and farmland 252 3 Municipal, consumer, and other 12,824 79 Total $ 84,422 $ 1,033 Six Months Ended June 30, 2022 Average Interest Recorded Income Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 280 $ 8 Commercial real estate - owner occupied 1,580 44 Commercial real estate - non-owner occupied 14,728 371 Construction and land development — — Multi-family — — One-to-four family residential 597 9 Agricultural and farmland — — Municipal, consumer, and other 8,426 85 Total $ 25,611 $ 517 With no related allowance: Commercial and industrial $ 17,316 $ 356 Commercial real estate - owner occupied 11,460 247 Commercial real estate - non-owner occupied 16,728 538 Construction and land development 2,014 48 Multi-family — — One-to-four family residential 8,453 141 Agricultural and farmland 244 3 Municipal, consumer, and other 4,511 54 Total $ 60,726 $ 1,387 Total loans individually evaluated for impairment: Commercial and industrial $ 17,596 $ 364 Commercial real estate - owner occupied 13,040 291 Commercial real estate - non-owner occupied 31,456 909 Construction and land development 2,014 48 Multi-family — — One-to-four family residential 9,050 150 Agricultural and farmland 244 3 Municipal, consumer, and other 12,937 139 Total $ 86,337 $ 1,904 Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (dollars in thousands) Beginning balance $ 484 $ 413 Reclassification from non-accretable difference 100 217 Accretion income (47) (93) Ending balance $ 537 $ 537 Past Due and Nonaccrual Status Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status. The following tables present loans by category based on current payment and accrual status: Accruing Interest 30 - 89 Days 90+ Days Total June 30, 2023 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 385,504 $ 90 $ — $ 174 $ 385,768 Commercial real estate - owner occupied 303,145 126 — 251 303,522 Commercial real estate - non-owner occupied 882,208 — — 390 882,598 Construction and land development 335,024 — — 238 335,262 Multi-family 374,488 90 — 958 375,536 One-to-four family residential 475,473 1,522 — 5,447 482,442 Agricultural and farmland 259,730 128 — — 259,858 Municipal, consumer, and other 219,335 257 1 76 219,669 Total $ 3,234,907 $ 2,213 $ 1 $ 7,534 $ 3,244,655 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2022 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 266,521 $ 17 $ — $ 219 $ 266,757 Commercial real estate - owner occupied 218,242 187 — 74 218,503 Commercial real estate - non-owner occupied 713,031 — — 171 713,202 Construction and land development 360,763 61 — — 360,824 Multi-family 287,854 11 — — 287,865 One-to-four family residential 335,576 894 145 1,638 338,253 Agricultural and farmland 237,727 19 — — 237,746 Municipal, consumer, and other 196,892 157 1 53 197,103 Total $ 2,616,606 $ 1,346 $ 146 $ 2,155 $ 2,620,253 The following table presents nonaccrual loans with and without a related allowance for credit losses: Nonaccrual Nonaccrual With With No Allowance for Allowance for Total June 30, 2023 Credit Losses Credit Losses Nonaccrual (dollars in thousands) Commercial and industrial $ 128 $ 46 $ 174 Commercial real estate - owner occupied 74 177 251 Commercial real estate - non-owner occupied 219 171 390 Construction and land development — 238 238 Multi-family — 958 958 One-to-four family residential 129 5,318 5,447 Agricultural and farmland — — — Municipal, consumer, and other — 76 76 Total $ 550 $ 6,984 $ 7,534 Credit Quality Indicators The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $750,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows: Pass Pass-Watch Substandard Doubtful The following tables present loans by category based on their assigned risk ratings determined by management: June 30, 2023 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 378,223 $ 3,900 $ 3,645 $ — $ 385,768 Commercial real estate - owner occupied 281,115 11,660 10,747 — 303,522 Commercial real estate - non-owner occupied 825,108 33,361 24,129 — 882,598 Construction and land development 329,877 5,055 330 — 335,262 Multi-family 349,513 24,749 1,274 — 375,536 One-to-four family residential 461,525 7,654 13,263 — 482,442 Agricultural and farmland 251,388 5,142 3,328 — 259,858 Municipal, consumer, and other 201,708 1,921 16,040 — 219,669 Total $ 3,078,457 $ 93,442 $ 72,756 $ — $ 3,244,655 December 31, 2022 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 255,309 $ 6,630 $ 4,818 $ — $ 266,757 Commercial real estate - owner occupied 198,546 10,105 9,852 — 218,503 Commercial real estate - non-owner occupied 652,691 27,282 33,229 — 713,202 Construction and land development 358,215 2,527 82 — 360,824 Multi-family 283,682 4,183 — — 287,865 One-to-four family residential 323,632 5,907 8,714 — 338,253 Agricultural and farmland 223,114 10,004 4,628 — 237,746 Municipal, consumer, and other 184,299 296 12,508 — 197,103 Total $ 2,479,488 $ 66,934 $ 73,831 $ — $ 2,620,253 Risk ratings of loans, further sorted by origination year, are as follows as of June 30, 2023: Revolving Loans Term Loans by Origination Year Revolving Converted (dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans to Term Total Commercial and industrial Pass $ 69,081 $ 63,617 $ 27,992 $ 31,141 $ 6,418 $ 10,665 $ 166,040 $ 3,269 $ 378,223 Pass-Watch 117 934 — 535 825 211 581 697 3,900 Substandard 5 101 — 46 — 49 617 2,827 3,645 Total $ 69,203 $ 64,652 $ 27,992 $ 31,722 $ 7,243 $ 10,925 $ 167,238 $ 6,793 $ 385,768 Commercial real estate - owner occupied Pass $ 19,573 $ 63,767 $ 61,278 $ 59,353 $ 34,394 $ 35,565 $ 7,185 $ — $ 281,115 Pass-Watch 672 2,365 2,773 358 2,747 1,795 950 — 11,660 Substandard — 1,688 3,430 262 673 3,200 1,494 — 10,747 Total $ 20,245 $ 67,820 $ 67,481 $ 59,973 $ 37,814 $ 40,560 $ 9,629 $ — $ 303,522 Commercial real estate - non-owner occupied Pass $ 53,549 $ 260,402 $ 264,052 $ 98,430 $ 86,880 $ 48,439 $ 9,567 $ 3,789 $ 825,108 Pass-Watch 758 — 7,475 — 7,379 3,870 13,734 145 33,361 Substandard 11,774 127 — 73 2,515 9,469 — 171 24,129 Total $ 66,081 $ 260,529 $ 271,527 $ 98,503 $ 96,774 $ 61,778 $ 23,301 $ 4,105 $ 882,598 Construction and land development Pass $ 82,321 $ 154,790 $ 68,926 $ 5,676 $ 3,284 $ 1,791 $ 7,868 $ 5,221 $ 329,877 Pass-Watch 156 2,867 — — — 12 1,183 837 5,055 Substandard — — — — — 317 — 13 330 Total $ 82,477 $ 157,657 $ 68,926 $ 5,676 $ 3,284 $ 2,120 $ 9,051 $ 6,071 $ 335,262 Multi-family Pass $ 35,047 $ 79,926 $ 105,151 $ 58,069 $ 34,925 $ 29,929 $ 5,954 $ 512 $ 349,513 Pass-Watch 2,674 7,273 — 8,833 59 5,558 343 9 24,749 Substandard — — 315 — 489 470 — — 1,274 Total $ 37,721 $ 87,199 $ 105,466 $ 66,902 $ 35,473 $ 35,957 $ 6,297 $ 521 $ 375,536 One-to-four family residential Pass $ 69,055 $ 90,014 $ 88,637 $ 69,356 $ 23,957 $ 57,917 $ 57,698 $ 4,891 $ 461,525 Pass-Watch 1,011 670 1,164 572 713 2,909 295 320 7,654 Substandard 415 2,490 857 1,045 823 4,461 25 3,147 13,263 Total $ 70,481 $ 93,174 $ 90,658 $ 70,973 $ 25,493 $ 65,287 $ 58,018 $ 8,358 $ 482,442 Agricultural and farmland Pass $ 24,392 $ 40,120 $ 39,227 $ 40,052 $ 9,319 $ 9,194 $ 86,766 $ 2,318 $ 251,388 Pass-Watch 825 1,691 96 1,021 145 960 404 — 5,142 Substandard — — 16 3,312 — — — — 3,328 Total $ 25,217 $ 41,811 $ 39,339 $ 44,385 $ 9,464 $ 10,154 $ 87,170 $ 2,318 $ 259,858 Municipal, Consumer, and other Pass $ 31,397 $ 70,574 $ 28,952 $ 15,154 $ 1,793 $ 45,049 $ 8,787 $ 2 $ 201,708 Pass-Watch — 20 26 20 — 1,855 — — 1,921 Substandard 32 94 7 — 46 15,861 — — 16,040 Total $ 31,429 $ 70,688 $ 28,985 $ 15,174 $ 1,839 $ 62,765 $ 8,787 $ 2 $ 219,669 Total by Risk Rating Pass $ 384,415 $ 823,210 $ 684,215 $ 377,231 $ 200,970 $ 238,549 $ 349,865 $ 20,002 $ 3,078,457 Pass-Watch 6,213 15,820 11,534 11,339 11,868 17,170 17,490 2,008 93,442 Substandard 12,226 4,500 4,625 4,738 4,546 33,827 2,136 6,158 72,756 Total $ 402,854 $ 843,530 $ 700,374 $ 393,308 $ 217,384 $ 289,546 $ 369,491 $ 28,168 $ 3,244,655 Modifications and Troubled Debt Restructurings There were no loan modifications to borrowers in financial distress during the three and six months ended June 30, 2023. There were no new troubled debt restructurings during the three and six months ended June 30, 2022. As of December 31, 2022, the Company had $3.0 million of troubled debt restructurings. Pledged Loans As of June 30, 2023 and December 31, 2022, the Company pledged loans totaling $1.04 billion and $892.1 million, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity. |
LOAN SERVICING
LOAN SERVICING | 6 Months Ended |
Jun. 30, 2023 | |
LOAN SERVICING | |
LOAN SERVICING | NOTE 5 – LOAN SERVICING Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.72 billion and $955.8 million as of June 30, 2023 and December 31, 2022, respectively. Activity in mortgage servicing rights is as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Beginning balance $ 19,992 $ 9,723 $ 10,147 $ 7,994 Acquired — — 10,469 — Capitalized servicing rights 170 136 299 307 Fair value adjustment: Attributable to payments and principal reductions (559) (379) (990) (686) Attributable to changes in valuation inputs and assumptions 530 609 208 2,474 Total fair value adjustment (29) 230 (782) 1,788 Ending balance $ 20,133 $ 10,089 $ 20,133 $ 10,089 |
FORECLOSED ASSETS
FORECLOSED ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
FORECLOSED ASSETS | |
FORECLOSED ASSETS | NOTE 6 – FORECLOSED ASSETS Foreclosed assets activity is as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Beginning balance $ 3,356 $ 3,043 $ 3,030 $ 3,278 Acquired — — 271 — Transfers from loans 65 8 170 27 Proceeds from sales (244) (153) (284) (447) Net gain (loss) on sales 48 (7) 68 98 Direct write-downs (145) — (175) (65) Ending balance $ 3,080 $ 2,891 $ 3,080 $ 2,891 Gains (losses) on foreclosed assets includes the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Direct write-downs $ (145) $ — $ (175) $ (65) Net gain (loss) on sales 48 (7) 68 98 Gains (losses) on foreclosed assets $ (97) $ (7) $ (107) $ 33 The carrying value of foreclosed one-to-four family residential real estate properties held was $0.2 million and $20 thousand as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, there were 16 one-to-four family residential real estate loans in the process of foreclosure totaling $1.4 million. As of December 31, 2022, there were 4 one-to-four family residential real estate loans in the process of foreclosure totaling $0.2 million. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2023 | |
DEPOSITS | |
DEPOSITS | NOTE 7 – DEPOSITS The Company’s deposits are summarized below: June 30, 2023 December 31, 2022 (dollars in thousands) Noninterest-bearing deposits $ 1,125,823 $ 994,954 Interest-bearing deposits: Interest-bearing demand 1,181,187 1,139,150 Money market 730,652 555,425 Savings 657,506 634,527 Time 469,355 262,968 Total interest-bearing deposits 3,038,700 2,592,070 Total deposits $ 4,164,523 $ 3,587,024 Money market account deposits included $50.0 million and time deposits included $1.0 million of brokered deposits as of June 30, 2023. There were no brokered deposits as of December 31, 2022. Interest-bearing demand deposits included $41.6 million of reciprocal transaction deposits as of June 30, 2023. Money market deposits included $11.7 million and $1.7 million of reciprocal transaction deposits as of June 30, 2023 and December 31, 2022, respectively. Time deposits included $38.8 million and $1.6 million of reciprocal time deposits as of June 30, 2023, and December 31, 2022, respectively. The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $78.7 million and $27.2 million as of June 30, 2023 and December 31, 2022, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $236.8 million and $92.6 million as of June 30, 2023 and December 31, 2022, respectively. The components of interest expense on deposits are as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Interest-bearing demand $ 683 $ 144 $ 1,141 $ 286 Money market 1,516 110 2,451 231 Savings 189 52 367 102 Time 1,935 200 2,738 456 Total interest expense on deposits $ 4,323 $ 506 $ 6,697 $ 1,075 |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | 6 Months Ended |
Jun. 30, 2023 | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | NOTE 8 – JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS Eight subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company. Three of these (Town and Country Statutory Trust II, Town and Country Statutory Trust III, and West Plains Investors Statutory Trust I) were acquired by the Company as part of its acquisition of Town and Country. The Company owns all of the outstanding stock of the 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. In accordance with GAAP, the trusts are not consolidated in the Company’s financial statements. The face values and carrying values of the junior subordinated debentures are summarized as follows: Carrying Value Face Value June 30, 2023 December 31, 2022 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 5,155 FFBI Capital Trust I 7,217 7,217 7,217 National Bancorp Statutory Trust I 5,773 4,821 4,788 Town and Country Statutory Trust II 4,124 4,415 — Town and Country Statutory Trust III 7,732 7,572 — West Plains Investors Statutory Trust I 3,093 2,960 — Total $ 53,714 $ 52,760 $ 37,780 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 immediately preceding the Distribution Payment Date specific to each junior subordinated debenture, plus a fixed percentage. Beginning in July 2023, the three-month LIBOR index was replaced by the three-month term SOFR index plus a spread adjustment. The interest rates and maturities of the junior subordinated debentures are summarized as follows: Interest Rate at Variable June 30, December 31, Maturity Interest Rate 2023 2022 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 8.01 % 6.83 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 7.08 6.30 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 6.90 6.12 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 8.06 6.88 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 8.45 7.67 December 15, 2037 Town and Country Statutory Trust II LIBOR plus 2.79 8.30 N/A March 17, 2034 Town and Country Statutory Trust III LIBOR plus 1.68 7.23 N/A March 22, 2037 West Plains Investors Statutory Trust I LIBOR plus 1.45 7.00 N/A June 15, 2037 The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events of 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 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 junior subordinated 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 June 30, 2023 and 2022, 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 | 6 Months Ended |
Jun. 30, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 9 – 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: June 30, 2023 December 31, 2022 Notional Fair Notional Fair Amount Value Amount Value (dollars in thousands) Fair value recorded in other assets $ 17,000 $ 587 $ 17,000 $ 629 As of June 30, 2023, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of June 30, 2023 and December 31, 2022, counterparties had cash pledged and held on deposit by the Company of $0.6 million and $0.6 million, respectively. 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 (loss) to income other comprehensive income (loss) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Designated as cash flow hedges: (dollars in thousands) Junior subordinated debentures interest expense $ 109 $ (67) $ 203 $ (163) 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 interest rate 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: June 30, 2023 December 31, 2022 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 $ — $ — $ — $ — Interest rate swaps with a financial institution counterparty 105,954 8,053 106,995 6,981 Total fair value recorded in other assets $ 105,954 $ 8,053 $ 106,995 $ 6,981 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 105,954 $ (8,053) $ 106,995 $ (6,981) Interest rate swaps with a financial institution counterparty — — — — Total fair value recorded in other liabilities $ 105,954 $ (8,053) $ 106,995 $ (6,981) As of June 30, 2023, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2023 and 2035. 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 1,703 $ 4,681 $ 4,440 $ 10,094 Gross losses (1,703) (4,681) (4,440) (10,094) Net gains (losses) $ — $ — $ — $ — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 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 June 30, 2023 Balance, March 31, 2023 $ (52,668) $ (9,596) $ 89 $ (62,175) Other comprehensive income (loss) before reclassifications (12,638) — 201 (12,437) Reclassifications 200 475 (109) 566 Other comprehensive income (loss), before tax (12,438) 475 92 (11,871) Income tax expense (benefit) (3,546) 135 27 (3,384) Other comprehensive income (loss), after tax (8,892) 340 65 (8,487) Balance, June 30, 2023 $ (61,560) $ (9,256) $ 154 $ (70,662) Three Months Ended June 30, 2022 Balance, March 31, 2022 $ (24,794) $ (11,048) $ (258) $ (36,100) Other comprehensive income (loss) before reclassifications (24,151) — 149 (24,002) Reclassifications — 549 67 616 Other comprehensive income (loss), before tax (24,151) 549 216 (23,386) Income tax expense (benefit) (6,884) 157 61 (6,666) Other comprehensive income (loss), after tax (17,267) 392 155 (16,720) Balance, June 30, 2022 $ (42,061) $ (10,656) $ (103) $ (52,820) Unrealized Gains (Losses) on Debt Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Six Months Ended June 30, 2023 Balance, December 31, 2022 $ (61,998) $ (9,946) $ 185 $ (71,759) Other comprehensive income (loss) before reclassifications (1,195) — 161 (1,034) Reclassifications 1,807 965 (203) 2,569 Other comprehensive income (loss), before tax 612 965 (42) 1,535 Income tax expense (benefit) 174 275 (11) 438 Other comprehensive income (loss), after tax 438 690 (31) 1,097 Balance, June 30, 2023 $ (61,560) $ (9,256) $ 154 $ (70,662) Six Months Ended June 30, 2022 Balance, December 31, 2021 $ 5,736 $ (3,514) $ (751) $ 1,471 Transfer from available-for-sale to held-to-maturity 7,664 (7,664) — — Other comprehensive income (loss) before reclassifications (77,573) — 743 (76,830) Reclassifications — 730 163 893 Other comprehensive income (loss), before tax (77,573) 730 906 (75,937) Income tax expense (benefit) (22,112) 208 258 (21,646) Other comprehensive income (loss), after tax (55,461) 522 648 (54,291) Balance, June 30, 2022 $ (42,061) $ (10,656) $ (103) $ (52,820) Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income. Reclassifications 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. Reclassifications 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 9 for additional information. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 11 – 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 from the Company’s outstanding restricted stock units and performance restricted stock units. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Numerator: Net income $ 18,473 $ 14,085 $ 27,681 $ 27,689 Earnings allocated to participating securities (11) (17) (16) (34) Numerator for earnings per share - basic and diluted $ 18,462 $ 14,068 $ 27,665 $ 27,655 Denominator: Weighted average common shares outstanding 31,980,133 28,891,202 31,481,439 28,938,634 Dilutive effect of outstanding restricted stock units 99,850 53,674 84,981 48,688 Weighted average common shares outstanding, including all dilutive potential shares 32,079,983 28,944,876 31,566,420 28,987,322 Earnings per share - Basic $ 0.58 $ 0.49 $ 0.88 $ 0.96 Earnings per share - Diluted $ 0.58 $ 0.49 $ 0.88 $ 0.95 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | NOTE 12 – 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Restricted stock units $ 317 $ 234 $ 594 $ 842 Performance restricted stock units 117 118 357 411 Total awards classified as equity 434 352 951 1,253 Stock appreciation rights (47) 7 (46) (16) Total stock-based compensation expense $ 387 $ 359 $ 905 $ 1,237 In February 2022, all outstanding restricted stock unit and performance restricted stock unit agreements were modified to address treatment upon retirement. In the event of retirement, and if the retirement eligibility requirements are met, then 100% of unvested restricted stock units and performance restricted stock units will continue to vest in accordance with the originally established vesting schedule. The retirement modification resulted in the acceleration of $0.6 million of expense, although total compensation costs related to the modified agreements remained the same. Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of the Company’s 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. During the six months ended June 30, 2023 and 2022, the total grant date fair value of the restricted stock units granted was $1.0 million and $0.9 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock that vested during the six months ended June 30, 2023 and 2022 was $1.1 million and $0.7 million, respectively. The following is a summary of restricted stock unit activity: Three Months Ended June 30, 2023 2022 Weighted Weighted Average Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 129,422 $ 19.58 120,631 $ 17.98 Granted — — — — Vested — — — — Forfeited — — — — Ending balance 129,422 $ 19.58 120,631 $ 17.98 Six Months Ended June 30, 2023 2022 Weighted Weighted Average Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 139,986 $ 18.01 109,244 $ 17.27 Granted 41,847 22.72 46,312 19.11 Vested (51,693) 17.91 (34,925) 17.26 Forfeited (718) 16.58 — — Ending balance 129,422 $ 19.58 120,631 $ 17.98 As of June 30, 2023, unrecognized compensation cost related to the non-vested restricted stock units was $1.6 million. This cost is expected to be recognized over the weighted average remaining service period of 1.8 years. Performance Restricted Stock Units A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings. During the six months ended June 30, 2023 and 2022, the total fair value of the performance restricted stock units granted was $0.4 million and $0.5 million, respectively, based on the grant date closing prices 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 June 30, 2023 2022 Weighted Weighted Performance Average Performance Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 79,097 $ 18.25 62,067 $ 17.02 Granted — — — — Vested — — — — Forfeited — — — — Ending balance 79,097 $ 18.25 62,067 $ 17.02 Six months ended June 30, 2023 2022 Weighted Weighted Performance Average Performance Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 62,067 $ 17.02 38,344 $ 15.72 Granted 17,030 22.72 23,723 19.14 Vested — — — — Forfeited — — — — Ending balance 79,097 $ 18.25 62,067 $ 17.02 As of June 30, 2023, unrecognized compensation cost related to non-vested performance restricted stock units was $0.5 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.7 years. 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 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 non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award. The non-vested stock appreciation rights vest in four The following is a summary of stock appreciation rights activity: Three Months Ended June 30, 2023 2022 Stock Appreciation Rights Outstanding Weighted Average Grant Date Assigned Value Stock Appreciation Rights Outstanding Weighted Average Grant Date Assigned Value Beginning balance 73,440 $ 16.32 91,800 $ 16.32 Granted — — — — Exercised — — — — Expired — — — — Forfeited — — — — Ending balance 73,440 $ 16.32 91,800 $ 16.32 Six Months Ended June 30, 2023 2022 Stock Appreciation Rights Weighted Average Grant Date Assigned Value Stock Appreciation Rights Weighted Average Grant Date Assigned Value Beginning balance 73,440 $ 16.32 97,920 $ 16.32 Granted — — — — Exercised — — (6,120) 16.32 Expired — — — — Forfeited — — — — Ending balance 73,440 $ 16.32 91,800 $ 16.32 A further summary of stock appreciation rights as of June 30, 2023, is as follows: Weighted Average Stock Appreciation Rights Remaining Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 73,440 67,320 6.2 years As of June 30, 2023, unrecognized compensation cost related to non-vested stock appreciation rights was $6 thousand. As of June 30, 2023 and December 31, 2022, the liability recorded for outstanding stock appreciation rights was $0.4 million and $0.5 million, 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. June 30, 2023 December 31, 2022 Risk-free interest rate 4.06 % 3.95 % Expected volatility 37.35 % 36.54 % Expected life (in years) 6.2 6.7 Expected dividend yield 3.69 % 3.27 % As of June 30, 2023, the liability recorded for previously exercised stock appreciation rights was $0.2 million, which will be paid in one remaining annual installment in 2024. As of December 31, 2022, the liability recorded for previously exercised stock appreciation rights was $0.5 million. |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2023 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 13 – REGULATORY MATTERS 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. Additionally, 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. 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 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 debt 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 June 30, 2023 and December 31, 2022, the capital conservation buffer was 2.5% of risk-weighted assets. As of June 30, 2023, 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 the Company (on a consolidated basis) and the Bank are as follows: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions June 30, 2023 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 575,030 15.03 % $ 306,067 8.00 % N/A N/A Heartland Bank and Trust Company 566,196 14.82 305,541 8.00 $ 381,926 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 501,898 13.12 % $ 229,551 6.00 % N/A N/A Heartland Bank and Trust Company 532,499 13.94 229,156 6.00 $ 305,541 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 450,752 11.78 % $ 172,163 4.50 % N/A N/A Heartland Bank and Trust Company 532,499 13.94 171,867 4.50 $ 248,252 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 501,898 10.07 % $ 199,442 4.00 % N/A N/A Heartland Bank and Trust Company 532,499 10.69 199,201 4.00 $ 249,001 5.00 % Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions December 31, 2022 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 516,556 16.27 % $ 254,052 8.00 % N/A N/A Heartland Bank and Trust Company 489,316 15.43 253,643 8.00 $ 317,054 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 451,828 14.23 % $ 190,539 6.00 % N/A N/A Heartland Bank and Trust Company 463,983 14.63 190,233 6.00 $ 253,643 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 415,213 13.07 % $ 142,904 4.50 % N/A N/A Heartland Bank and Trust Company 463,983 14.63 142,674 4.50 $ 206,085 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 451,828 10.48 % $ 172,427 4.00 % N/A N/A Heartland Bank and Trust Company 463,983 10.78 172,240 4.00 $ 215,300 5.00 % |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 14 – 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 for the year ended December 31, 2022, filed with the SEC on March 8, 2023. There were no transfers between levels during the three and six months ended June 30, 2023 and 2022. 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: June 30, 2023 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Debt securities available-for-sale: U.S. Treasury $ 155,140 $ — $ — $ 155,140 U.S. government agency — 52,424 — 52,424 Municipal — 244,055 — 244,055 Mortgage-backed: Agency residential — 189,550 — 189,550 Agency commercial — 130,886 — 130,886 Corporate — 50,733 — 50,733 Equity securities with readily determinable fair values 3,152 — — 3,152 Mortgage servicing rights — — 20,133 20,133 Derivative financial assets — 8,640 — 8,640 Derivative financial liabilities — 8,053 — 8,053 December 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Debt securities available-for-sale: U.S. Treasury $ 154,515 $ — $ — $ 154,515 U.S. government agency — 55,157 — 55,157 Municipal — 243,829 — 243,829 Mortgage-backed: Agency residential — 195,441 — 195,441 Agency commercial — 132,888 — 132,888 Corporate — 61,694 — 61,694 Equity securities with readily determinable fair values 3,029 — — 3,029 Mortgage servicing rights — — 10,147 10,147 Derivative financial assets — 7,610 — 7,610 Derivative financial liabilities — 6,981 — 6,981 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, 2022 to June 30, 2023. 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 (loss). 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 hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income (loss). For derivative financial instruments not designated as 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): June 30, 2023 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Mortgage servicing rights $ 20,133 Discounted cash flows Constant pre-payment rates (CPR) 6.8% to 39.4% (8.0%) Discount rate 9.0% to 23.4% (9.6%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Mortgage servicing rights $ 10,147 Discounted cash flows Constant pre-payment rates (CPR) 5.3% to 59.7% (8.2%) Discount rate 9.0% to 11.7% (9.3%) 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: June 30, 2023 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Loans held for sale $ — $ 8,829 $ — $ 8,829 Collateral-dependent loans — — 32,767 32,767 Bank premises held for sale — — 35 35 Foreclosed assets — — 3,080 3,080 December 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Loans held for sale $ — $ 615 $ — $ 615 Collateral-dependent loans — — 17,460 17,460 Bank premises held for sale — — 235 235 Foreclosed assets — — 3,030 3,030 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 Loans In accordance with the provisions of the loan impairment guidance, impairment was measured for loans with respect to 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 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 Loans, Bank Premises Held for Sale, and Foreclosed Assets The estimated fair value of collateral-dependent 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 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): June 30, 2023 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 32,767 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 35 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 3,080 Appraisal Appraisal adjustments 7% (7%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 17,460 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 235 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 3,030 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. 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 marketplace. 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 June 30, 2023 December 31, 2022 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 109,808 $ 109,808 $ 114,159 $ 114,159 Debt securities held-to-maturity Level 2 533,231 469,921 541,600 478,801 Restricted stock Level 3 11,345 11,345 7,965 7,965 Loans, net Level 3 3,206,841 3,143,481 2,594,920 2,566,930 Investments in unconsolidated subsidiaries Level 3 1,614 1,614 1,165 1,165 Accrued interest receivable Level 2 19,900 19,900 19,506 19,506 Financial liabilities: Time deposits Level 3 469,355 457,327 262,968 253,619 Securities sold under agreements to repurchase Level 2 38,729 38,729 43,081 43,081 Subordinated notes Level 3 39,435 32,481 39,395 37,205 Junior subordinated debentures Level 3 52,760 41,993 37,780 37,030 Accrued interest payable Level 2 2,386 2,386 1,363 1,363 The Company estimated the fair value of lending related commitments as described in Note 15 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 | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – 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 June 30, 2023 December 31, 2022 (dollars in thousands) Commitments to extend credit $ 860,390 $ 756,885 Standby letters of credit 19,053 17,785 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. Allowance for Credit Losses on Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $4.1 million as of June 30, 2023. Legal Contingencies In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements. PLB Investments LLC, John Kuehner, and A.S. Palmer Investments LLC v. Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No. 1:20-cv-1023 (“Class Action”); and Melanie E. Damian, As Receiver of Today’s Growth Consultant, Inc. (dba The Income Store) v. Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No. 1:20-cv-7819 (“Receiver’s Action”) The Bank was a defendant in the purported Class Action lawsuit that was filed on February 12, 2020, in the U.S. District Court for the Northern District of Illinois. The plaintiffs in the Class Action alleged that the Bank negligently enabled and facilitated a fraudulent, Ponzi-like scheme perpetrated by Today’s Growth Consultant, Inc. (dba The Income Store) (“TGC”). Additionally, the Receiver for TGC filed the Receiver’s Action on December 30, 2020, in the U.S. District Court for the Northern District of Illinois, with similar allegations. On February 20, 2023, the Bank reached an agreement in principle to settle both the Class Action and Receiver’s Action in which the Bank would make one-time cash payments totaling $13.0 million, without admitting fault, to release the Bank from further liability and claims in both the Class Action and Receiver’s Action. Pursuant to the agreement in principle, the parties would settle and dismiss the Class Action and Receiver’s Action and seek the entry of bar orders from the U.S. District Court for the Northern District of Illinois (the “Court”) prohibiting any continued or future claims against the Bank and its related parties relating to the Class Action and the Receiver’s Action, whether asserted to date or not. If definitive settlement agreements, including the bar orders described in the preceding sentence, are approved by the Court and are not subject to appeal, the Bank will make one-time cash payments totaling $13.0 million. Definitive settlement agreements reflecting the terms of the agreement in principle have been executed and notice to TGC’s investor claimants have been delivered. Motions for final, non-appealable approvals of the settlement agreements and for entry of a bar order were granted and are pending entry of final written order by the Court (“Final Written Order”). The Class Action has been voluntarily dismissed. The proposed settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action. The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the settlements are in the best interests of the Company and its shareholders. Accordingly, the Bank had a $13.0 million accrual related to these matters as of June 30, 2023 and December 31, 2022. The Bank’s insurer has agreed to reimburse $7.4 million of the settlement payment which was recorded as an insurance recovery receivable as of June 30, 2023 and December 31, 2022. The estimated net settlement amount of $5.6 million was included in other noninterest expense in the consolidated statements of income during the fourth quarter of 2022. The settlement payments will be made within two weeks of the date of the Final Written Order of the Court. DeBaere, et al v. Heartland Bank and Trust Company The Bank is a defendant in a purported class action lawsuit filed in June 2020, in the Circuit Court of Cook County, Illinois. The plaintiff, a customer of the Bank, alleges that the Bank breached its contract with the plaintiff by (1) charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction, and (2) charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance. Miller, et al v. State Bank of Lincoln and Heartland Bank and Trust Company The Bank is a defendant in a purported class action lawsuit filed in May 2020, in the Circuit Court of Logan County, Illinois. The plaintiff, a customer of State Bank of Lincoln, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction. On May 15, 2023, the Bank reached an agreement in principle to settle both the DeBaere, et al Miller, et al The proposed settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the DeBaere, et al Miller, et al Accordingly, the Bank had in the aggregate a $3.4 million and $2.6 million accrual related to these matters as of June 30, 2023 and December 31, 2022, respectively. An initial $2.6 million accrual was recognized in other noninterest expense during the fourth quarter of 2022, reflecting management’s best estimate at that time, and an additional $0.8 million accrual was recognized in other noninterest expense during the second quarter of 2023 following the agreement in principle to settle both the DeBaere, et al Miller, et al |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “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 Illinois and Eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“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 SEC. 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 for the year ended December 31, 2022, filed with the SEC on March 8, 2023. The unaudited consolidated financial statements include all 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 may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. 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. |
Use of Estimates | Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with GAAP. 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 credit losses and fair value of assets acquired and liabilities assumed in business combinations. |
Segment Reporting | Segment Reporting The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. |
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. |
Impact of Recently Adopted Accounting Standards | Impact of Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after December 31, 2022 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $6.9 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The following table illustrates the impact of ASC 326 on the allowance for credit losses: January 1, 2023 Pre-ASC 326 Impact of As Reported Adoption ASC 326 Adoption under ASC 326 (dollars in thousands) Assets: Allowance for credit losses on loans Commercial and industrial $ 3,279 $ (822) $ 2,457 Commercial real estate - owner occupied 1,193 587 1,780 Commercial real estate - non-owner occupied 6,721 501 7,222 Construction and land development 4,223 1,969 6,192 Multi-family 1,472 85 1,557 One-to-four family residential 1,759 797 2,556 Agricultural and farmland 796 1,567 2,363 Municipal, consumer, and other 5,890 2,299 8,189 Allowance for credit losses on loans $ 25,333 $ 6,983 $ 32,316 Liabilities: Allowance for credit losses on unfunded commitments $ — $ 2,899 $ 2,899 The Company also adopted ASC 326 using the prospective transition approach for purchase credit deteriorated (“PCD”) financial assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $0.2 million to the allowance for credit losses. The remaining noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2023. On January 1, 2023, the Company also adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities 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, |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
ACCOUNTING POLICIES | |
Impact of ASC 326 on the allowance for credit losses | January 1, 2023 Pre-ASC 326 Impact of As Reported Adoption ASC 326 Adoption under ASC 326 (dollars in thousands) Assets: Allowance for credit losses on loans Commercial and industrial $ 3,279 $ (822) $ 2,457 Commercial real estate - owner occupied 1,193 587 1,780 Commercial real estate - non-owner occupied 6,721 501 7,222 Construction and land development 4,223 1,969 6,192 Multi-family 1,472 85 1,557 One-to-four family residential 1,759 797 2,556 Agricultural and farmland 796 1,567 2,363 Municipal, consumer, and other 5,890 2,299 8,189 Allowance for credit losses on loans $ 25,333 $ 6,983 $ 32,316 Liabilities: Allowance for credit losses on unfunded commitments $ — $ 2,899 $ 2,899 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
ACQUISITIONS | |
Schedule of expenses incurred related to the acquisition | Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (dollars in thousands) PROVISION FOR CREDIT LOSSES $ — $ 5,924 NONINTEREST EXPENSE Salaries 66 3,584 Furniture and equipment 39 39 Data processing 176 2,031 Marketing and customer relations 10 24 Loan collection and servicing 125 125 Legal fees and other noninterest expense 211 1,964 Total noninterest expense 627 7,767 Total acquisition-related expenses $ 627 $ 13,691 |
Schedule of recognized identified assets acquired and liabilities assumed | Fair Value Assets acquired: Cash and cash equivalents $ 23,542 Interest-bearing time deposits with banks 249 Debt securities 167,869 Equity securities 90 Restricted stock 2,822 Loans held for sale 1,612 Loans, before allowance for credit losses 635,376 Allowance for credit losses (1,247) Loans, net of allowance for credit losses 634,129 Bank owned life insurance 15,782 Bank premises and equipment 14,828 Foreclosed assets 271 Intangible assets 22,282 Mortgage servicing rights 10,469 Investments in unconsolidated subsidiaries 449 Accrued interest receivable 3,113 Other assets 8,061 Total assets acquired 905,568 Liabilities assumed: Deposits 720,417 FHLB advances 86,439 Junior subordinated debentures 14,949 Other liabilities 4,965 Total liabilities assumed 826,770 Net assets acquired $ 78,798 Consideration paid: Cash $ 37,996 Common stock 71,356 Total consideration paid $ 109,352 Goodwill $ 30,554 |
Schedule of the components of the purchase price of financing receivables purchased with credit deterioration | Unpaid principal balance $ 89,822 Allowance for credit losses at acquisition (1,247) Non-credit discount (2,218) Purchase price $ 86,357 |
Business acquisition, pro forma information | Pro Forma Pro Forma Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2023 2022 2023 2022 Total revenues (net interest income and noninterest income) $ 58,786 $ 53,431 $ 116,556 $ 107,943 Net income 18,185 16,833 28,200 36,190 Earnings per share - basic 0.57 0.55 0.89 1.17 Earnings per share - diluted 0.57 0.55 0.88 1.17 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SECURITIES | |
Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses | June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ 169,788 $ — $ (14,648) $ — $ 155,140 U.S. government agency 56,833 — (4,409) — 52,424 Municipal 273,263 18 (29,226) — 244,055 Mortgage-backed: Agency residential 208,470 — (18,920) — 189,550 Agency commercial 147,922 3 (17,039) — 130,886 Corporate 57,632 — (6,099) (800) 50,733 Total available-for-sale $ 913,908 $ 21 $ (90,341) $ (800) $ 822,788 June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-maturity: (dollars in thousands) U.S. government agency $ 88,436 $ — $ (9,615) $ 78,821 $ — Municipal 39,756 147 (422) 39,481 — Mortgage-backed: Agency residential 100,685 — (7,003) 93,682 — Agency commercial 304,354 — (46,417) 257,937 — Total held-to-maturity $ 533,231 $ 147 $ (63,457) $ 469,921 $ — December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ 169,860 $ — $ (15,345) $ 154,515 U.S. government agency 59,291 — (4,134) 55,157 Municipal 275,972 46 (32,189) 243,829 Mortgage-backed: Agency residential 213,676 5 (18,240) 195,441 Agency commercial 150,060 — (17,172) 132,888 Corporate 65,597 55 (3,958) 61,694 Total available-for-sale $ 934,456 $ 106 $ (91,038) $ 843,524 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: (dollars in thousands) U.S. government agency $ 88,424 $ — $ (9,728) $ 78,696 Municipal 42,167 195 (314) 42,048 Mortgage-backed: Agency residential 102,728 — (6,470) 96,258 Agency commercial 308,281 — (46,482) 261,799 Total held-to-maturity $ 541,600 $ 195 $ (62,994) $ 478,801 |
Schedule of certain debt securities from the available-for-sale category to the held-to-maturity category | March 31, 2022 Amortized Cost Fair Value (dollars in thousands) U.S. government agency $ 78,841 $ 71,048 Mortgage-backed: Agency residential 8,175 7,651 Agency commercial 27,834 25,432 Total $ 114,850 $ 104,131 |
Schedule of amortized cost and fair value of securities by contractual maturity | Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Due in 1 year or less $ 34,603 $ 33,740 $ 2,451 $ 2,454 Due after 1 year through 5 years 230,246 215,388 27,401 26,424 Due after 5 years through 10 years 236,936 204,230 92,657 84,186 Due after 10 years 55,731 48,994 5,683 5,238 Mortgage-backed: Agency residential 208,470 189,550 100,685 93,682 Agency commercial 147,922 130,886 304,354 257,937 Total $ 913,908 $ 822,788 $ 533,231 $ 469,921 |
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 June 30, 2023 Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ — $ — $ (14,648) $ 155,140 $ (14,648) $ 155,140 U.S. government agency (270) 7,973 (4,139) 44,451 (4,409) 52,424 Municipal (723) 47,645 (28,503) 192,219 (29,226) 239,864 Mortgage-backed: Agency residential (1,305) 36,555 (17,615) 152,961 (18,920) 189,516 Agency commercial (345) 13,093 (16,694) 117,701 (17,039) 130,794 Corporate (1,994) 17,752 (3,928) 31,957 (5,922) 49,709 Total available-for-sale $ (4,637) $ 123,018 $ (85,527) $ 694,429 $ (90,164) $ 817,447 The following table presents 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 December 31, 2022: Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2022 Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: (dollars in thousands) U.S. Treasury $ (8,401) $ 92,445 $ (6,944) $ 62,070 $ (15,345) $ 154,515 U.S. government agency (2,980) 47,370 (1,154) 7,787 (4,134) 55,157 Municipal (10,906) 149,261 (21,283) 87,794 (32,189) 237,055 Mortgage-backed: Agency residential (8,332) 127,288 (9,908) 65,692 (18,240) 192,980 Agency commercial (4,764) 62,672 (12,408) 70,216 (17,172) 132,888 Corporate (2,594) 52,190 (1,364) 5,600 (3,958) 57,790 Total available-for-sale (37,977) 531,226 (53,061) 299,159 (91,038) 830,385 Held-to-maturity: U.S. government agency (1,754) 15,751 (7,974) 62,945 (9,728) 78,696 Municipal (314) 23,433 — — (314) 23,433 Mortgage-backed: Agency residential (4,039) 78,452 (2,431) 17,806 (6,470) 96,258 Agency commercial (16,716) 103,298 (29,766) 158,501 (46,482) 261,799 Total held-to-maturity (22,823) 220,934 (40,171) 239,252 (62,994) 460,186 Total debt securities $ (60,800) $ 752,160 $ (93,232) $ 538,411 $ (154,032) $ 1,290,571 |
Schedule of sales of debt securities | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Proceeds from sales $ — $ — $ 145,844 $ — Gross realized gains — — — — Gross realized losses — — (1,007) — |
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 June 30, 2023 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,142 $ 2,578 Cumulative net unrealized gains (losses) 10 (303) Carrying value $ 3,152 $ 2,275 Readily No Readily Determinable Determinable December 31, 2022 Fair Value Fair Value (dollars in thousands) Initial cost $ 3,142 $ 2,142 Cumulative net unrealized gains (losses) (113) (165) Carrying value $ 3,029 $ 1,977 |
Schedule of unrealized gains (losses) on equity securities | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Readily determinable fair value $ 7 $ (153) $ 123 $ (340) No readily determinable fair value — — (138) — Unrealized gains (losses) on equity securities $ 7 $ (153) $ (15) $ (340) |
LOANS AND RELATED ALLOWANCE F_2
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | |
Summary of Loans | June 30, 2023 December 31, 2022 (dollars in thousands) Commercial and industrial $ 385,768 $ 266,757 Commercial real estate - owner occupied 303,522 218,503 Commercial real estate - non-owner occupied 882,598 713,202 Construction and land development 335,262 360,824 Multi-family 375,536 287,865 One-to-four family residential 482,442 338,253 Agricultural and farmland 259,858 237,746 Municipal, consumer, and other 219,669 197,103 Loans, before allowance for credit losses 3,244,655 2,620,253 Allowance for credit losses (37,814) (25,333) Loans, net of allowance for credit losses $ 3,206,841 $ 2,594,920 |
Schedule of activity in allowance for loan losses | Three Months Ended June 30, 2023 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 2,932 $ 2,535 $ 7,840 $ 7,574 $ 2,151 $ 4,165 $ 2,674 $ 8,905 $ 38,776 Provision for credit losses 791 (175) (466) (1,745) 452 (121) (68) 252 (1,080) Charge-offs — — — — — (4) — (175) (179) Recoveries 12 2 164 5 — 37 1 76 297 Ending balance $ 3,735 $ 2,362 $ 7,538 $ 5,834 $ 2,603 $ 4,077 $ 2,607 $ 9,058 $ 37,814 Three Months Ended June 30, 2022 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 2,491 $ 1,511 $ 7,014 $ 4,493 $ 1,354 $ 1,583 $ 842 $ 5,220 $ 24,508 Provision for loan losses 450 (287) (408) (434) 21 51 82 670 145 Charge-offs — — — — — (47) — (112) (159) Recoveries 40 — 5 — — 109 — 86 240 Ending balance $ 2,981 $ 1,224 $ 6,611 $ 4,059 $ 1,375 $ 1,696 $ 924 $ 5,864 $ 24,734 Six Months Ended June 30, 2023 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 Adoption of ASC 326 (822) 587 501 1,969 85 797 1,567 2,299 6,983 PCD allowance established in acquisition 69 127 239 240 68 492 5 7 1,247 Provision for credit losses 1,178 444 (161) (606) 978 960 237 991 4,021 Charge-offs — (3) — — — (26) — (292) (321) Recoveries 31 14 238 8 — 95 2 163 551 Ending balance $ 3,735 $ 2,362 $ 7,538 $ 5,834 $ 2,603 $ 4,077 $ 2,607 $ 9,058 $ 37,814 Six Months Ended June 30, 2022 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total (dollars in thousands) Beginning balance $ 2,440 $ 1,840 $ 8,145 $ 4,914 $ 1,263 $ 1,311 $ 845 $ 3,178 $ 23,936 Provision for loan losses (203) (716) (1,804) (855) 112 171 79 2,777 (439) Charge-offs (5) — — — — (49) — (239) (293) Recoveries 749 100 270 — — 263 — 148 1,530 Ending balance $ 2,981 $ 1,224 $ 6,611 $ 4,059 $ 1,375 $ 1,696 $ 924 $ 5,864 $ 24,734 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and June 30, 2023 Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 385,594 $ 303,271 $ 868,421 $ 335,024 $ 374,578 $ 476,326 $ 259,858 $ 203,767 $ 3,206,839 Individually evaluated for impairment 174 251 14,177 238 958 6,116 — 15,902 37,816 Total $ 385,768 $ 303,522 $ 882,598 $ 335,262 $ 375,536 $ 482,442 $ 259,858 $ 219,669 $ 3,244,655 Allowance for credit losses: Collectively evaluated for impairment $ 3,730 $ 2,350 $ 6,280 $ 5,834 $ 2,603 $ 3,705 $ 2,607 $ 5,656 $ 32,765 Individually evaluated for impairment 5 12 1,258 — — 372 — 3,402 5,049 Total $ 3,735 $ 2,362 $ 7,538 $ 5,834 $ 2,603 $ 4,077 $ 2,607 $ 9,058 $ 37,814 Commercial Commercial Municipal, Commercial Real Estate Real Estate Construction One-to-four Agricultural Consumer, and Owner Non-owner and Land Family and and December 31, 2022 Industrial Occupied Occupied Development Multi-Family Residential Farmland Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 261,833 $ 203,558 $ 671,663 $ 359,892 $ 287,298 $ 325,621 $ 233,118 $ 184,579 $ 2,527,562 Individually evaluated for impairment 4,818 11,366 30,509 82 — 8,399 4,033 12,508 71,715 Acquired with deteriorated credit quality 106 3,579 11,030 850 567 4,233 595 16 20,976 Total $ 266,757 $ 218,503 $ 713,202 $ 360,824 $ 287,865 $ 338,253 $ 237,746 $ 197,103 $ 2,620,253 Allowance for loan losses: Collectively evaluated for impairment $ 3,121 $ 1,008 $ 4,332 $ 4,221 $ 1,470 $ 1,709 $ 796 $ 2,327 $ 18,984 Individually evaluated for impairment 158 168 2,388 — — 44 — 3,562 6,320 Acquired with deteriorated credit quality — 17 1 2 2 6 — 1 29 Total $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 |
Schedule of gross charge-offs, further sorted by origination year | Gross Charge-Offs for the Three Months Ended June 30, 2023 Revolving Loans Term Loans by Origination Year Revolving Converted 2023 2022 2021 2020 2019 Prior Loans to Term Total (dollars in thousands) Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - owner occupied — — — — — — — — — Commercial real estate - non-owner occupied — — — — — — — — — Construction and land development — — — — — — — — — Multi-family — — — — — — — — — One-to-four family residential — — — — — 4 — — 4 Agricultural and farmland — — — — — — — — — Municipal, consumer, and other 100 21 — — — — 54 — 175 Total $ 100 $ 21 $ — $ — $ — $ 4 $ 54 $ — $ 179 Gross Charge-Offs for the Six Months Ended June 30, 2023 Revolving Loans Term Loans by Origination Year Revolving Converted 2023 2022 2021 2020 2019 Prior Loans to Term Total (dollars in thousands) Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - owner occupied — 3 — — — — — — 3 Commercial real estate - non-owner occupied — — — — — — — — — Construction and land development — — — — — — — — — Multi-family — — — — — — — — — One-to-four family residential — — — — 1 25 — — 26 Agricultural and farmland — — — — — — — — — Municipal, consumer, and other 135 74 — 9 — — 74 — 292 Total $ 135 $ 77 $ — $ 9 $ 1 $ 25 $ 74 $ — $ 321 |
Schedule of amortized cost of collateral dependent loans | Amortized Cost Allowance Primary Collateral Type for Credit June 30, 2023 Real Estate Vehicles Other Total Losses (dollars in thousands) Commercial and industrial $ — $ — $ 174 $ 174 $ 5 Commercial real estate - owner occupied 251 — — 251 12 Commercial real estate - non-owner occupied 14,177 — — 14,177 1,258 Construction and land development 238 — — 238 — Multi-family 958 — — 958 — One-to-four family residential 6,116 — — 6,116 372 Agricultural and farmland — — — — — Municipal, consumer, and other 15,826 31 45 15,902 3,402 Total $ 37,566 $ 31 $ 219 $ 37,816 $ 5,049 |
Schedule of loans individually evaluated for impairment by category PREADOPTION | Unpaid Principal Recorded Related December 31, 2022 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 268 $ 254 $ 158 Commercial real estate - owner occupied 635 610 168 Commercial real estate - non-owner occupied 14,269 14,261 2,388 Construction and land development — — — Multi-family — — — One-to-four family residential 569 524 44 Agricultural and farmland — — — Municipal, consumer, and other 8,152 8,131 3,562 Total $ 23,893 $ 23,780 $ 6,320 With no related allowance: Commercial and industrial $ 4,564 $ 4,564 $ — Commercial real estate - owner occupied 10,912 10,756 — Commercial real estate - non-owner occupied 16,327 16,248 — Construction and land development 92 82 — Multi-family — — — One-to-four family residential 9,181 7,875 — Agricultural and farmland 4,440 4,033 — Municipal, consumer, and other 4,410 4,377 — Total $ 49,926 $ 47,935 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 4,832 $ 4,818 $ 158 Commercial real estate - owner occupied 11,547 11,366 168 Commercial real estate - non-owner occupied 30,596 30,509 2,388 Construction and land development 92 82 — Multi-family — — — One-to-four family residential 9,750 8,399 44 Agricultural and farmland 4,440 4,033 — Municipal, consumer, and other 12,562 12,508 3,562 Total $ 73,819 $ 71,715 $ 6,320 Three Months Ended June 30, 2022 Average Interest Recorded Income Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 267 $ 4 Commercial real estate - owner occupied 745 11 Commercial real estate - non-owner occupied 14,603 185 Construction and land development — — Multi-family — — One-to-four family residential 548 4 Agricultural and farmland — — Municipal, consumer, and other 8,344 46 Total $ 24,507 $ 250 With no related allowance: Commercial and industrial $ 15,156 $ 156 Commercial real estate - owner occupied 11,887 141 Commercial real estate - non-owner occupied 17,947 340 Construction and land development 2,012 26 Multi-family — — One-to-four family residential 8,181 84 Agricultural and farmland 252 3 Municipal, consumer, and other 4,480 33 Total $ 59,915 $ 783 Total loans individually evaluated for impairment: Commercial and industrial $ 15,423 $ 160 Commercial real estate - owner occupied 12,632 152 Commercial real estate - non-owner occupied 32,550 525 Construction and land development 2,012 26 Multi-family — — One-to-four family residential 8,729 88 Agricultural and farmland 252 3 Municipal, consumer, and other 12,824 79 Total $ 84,422 $ 1,033 Six Months Ended June 30, 2022 Average Interest Recorded Income Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 280 $ 8 Commercial real estate - owner occupied 1,580 44 Commercial real estate - non-owner occupied 14,728 371 Construction and land development — — Multi-family — — One-to-four family residential 597 9 Agricultural and farmland — — Municipal, consumer, and other 8,426 85 Total $ 25,611 $ 517 With no related allowance: Commercial and industrial $ 17,316 $ 356 Commercial real estate - owner occupied 11,460 247 Commercial real estate - non-owner occupied 16,728 538 Construction and land development 2,014 48 Multi-family — — One-to-four family residential 8,453 141 Agricultural and farmland 244 3 Municipal, consumer, and other 4,511 54 Total $ 60,726 $ 1,387 Total loans individually evaluated for impairment: Commercial and industrial $ 17,596 $ 364 Commercial real estate - owner occupied 13,040 291 Commercial real estate - non-owner occupied 31,456 909 Construction and land development 2,014 48 Multi-family — — One-to-four family residential 9,050 150 Agricultural and farmland 244 3 Municipal, consumer, and other 12,937 139 Total $ 86,337 $ 1,904 |
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality | Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (dollars in thousands) Beginning balance $ 484 $ 413 Reclassification from non-accretable difference 100 217 Accretion income (47) (93) Ending balance $ 537 $ 537 |
Schedule of recorded investment on past due basis | Accruing Interest 30 - 89 Days 90+ Days Total June 30, 2023 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 385,504 $ 90 $ — $ 174 $ 385,768 Commercial real estate - owner occupied 303,145 126 — 251 303,522 Commercial real estate - non-owner occupied 882,208 — — 390 882,598 Construction and land development 335,024 — — 238 335,262 Multi-family 374,488 90 — 958 375,536 One-to-four family residential 475,473 1,522 — 5,447 482,442 Agricultural and farmland 259,730 128 — — 259,858 Municipal, consumer, and other 219,335 257 1 76 219,669 Total $ 3,234,907 $ 2,213 $ 1 $ 7,534 $ 3,244,655 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2022 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 266,521 $ 17 $ — $ 219 $ 266,757 Commercial real estate - owner occupied 218,242 187 — 74 218,503 Commercial real estate - non-owner occupied 713,031 — — 171 713,202 Construction and land development 360,763 61 — — 360,824 Multi-family 287,854 11 — — 287,865 One-to-four family residential 335,576 894 145 1,638 338,253 Agricultural and farmland 237,727 19 — — 237,746 Municipal, consumer, and other 196,892 157 1 53 197,103 Total $ 2,616,606 $ 1,346 $ 146 $ 2,155 $ 2,620,253 |
Schedule of non-accrual loans | Nonaccrual Nonaccrual With With No Allowance for Allowance for Total June 30, 2023 Credit Losses Credit Losses Nonaccrual (dollars in thousands) Commercial and industrial $ 128 $ 46 $ 174 Commercial real estate - owner occupied 74 177 251 Commercial real estate - non-owner occupied 219 171 390 Construction and land development — 238 238 Multi-family — 958 958 One-to-four family residential 129 5,318 5,447 Agricultural and farmland — — — Municipal, consumer, and other — 76 76 Total $ 550 $ 6,984 $ 7,534 |
Schedule of loans by category risk ratings | June 30, 2023 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 378,223 $ 3,900 $ 3,645 $ — $ 385,768 Commercial real estate - owner occupied 281,115 11,660 10,747 — 303,522 Commercial real estate - non-owner occupied 825,108 33,361 24,129 — 882,598 Construction and land development 329,877 5,055 330 — 335,262 Multi-family 349,513 24,749 1,274 — 375,536 One-to-four family residential 461,525 7,654 13,263 — 482,442 Agricultural and farmland 251,388 5,142 3,328 — 259,858 Municipal, consumer, and other 201,708 1,921 16,040 — 219,669 Total $ 3,078,457 $ 93,442 $ 72,756 $ — $ 3,244,655 December 31, 2022 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 255,309 $ 6,630 $ 4,818 $ — $ 266,757 Commercial real estate - owner occupied 198,546 10,105 9,852 — 218,503 Commercial real estate - non-owner occupied 652,691 27,282 33,229 — 713,202 Construction and land development 358,215 2,527 82 — 360,824 Multi-family 283,682 4,183 — — 287,865 One-to-four family residential 323,632 5,907 8,714 — 338,253 Agricultural and farmland 223,114 10,004 4,628 — 237,746 Municipal, consumer, and other 184,299 296 12,508 — 197,103 Total $ 2,479,488 $ 66,934 $ 73,831 $ — $ 2,620,253 |
Schedule of risk ratings of loans, further sorted by origination year | Revolving Loans Term Loans by Origination Year Revolving Converted (dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans to Term Total Commercial and industrial Pass $ 69,081 $ 63,617 $ 27,992 $ 31,141 $ 6,418 $ 10,665 $ 166,040 $ 3,269 $ 378,223 Pass-Watch 117 934 — 535 825 211 581 697 3,900 Substandard 5 101 — 46 — 49 617 2,827 3,645 Total $ 69,203 $ 64,652 $ 27,992 $ 31,722 $ 7,243 $ 10,925 $ 167,238 $ 6,793 $ 385,768 Commercial real estate - owner occupied Pass $ 19,573 $ 63,767 $ 61,278 $ 59,353 $ 34,394 $ 35,565 $ 7,185 $ — $ 281,115 Pass-Watch 672 2,365 2,773 358 2,747 1,795 950 — 11,660 Substandard — 1,688 3,430 262 673 3,200 1,494 — 10,747 Total $ 20,245 $ 67,820 $ 67,481 $ 59,973 $ 37,814 $ 40,560 $ 9,629 $ — $ 303,522 Commercial real estate - non-owner occupied Pass $ 53,549 $ 260,402 $ 264,052 $ 98,430 $ 86,880 $ 48,439 $ 9,567 $ 3,789 $ 825,108 Pass-Watch 758 — 7,475 — 7,379 3,870 13,734 145 33,361 Substandard 11,774 127 — 73 2,515 9,469 — 171 24,129 Total $ 66,081 $ 260,529 $ 271,527 $ 98,503 $ 96,774 $ 61,778 $ 23,301 $ 4,105 $ 882,598 Construction and land development Pass $ 82,321 $ 154,790 $ 68,926 $ 5,676 $ 3,284 $ 1,791 $ 7,868 $ 5,221 $ 329,877 Pass-Watch 156 2,867 — — — 12 1,183 837 5,055 Substandard — — — — — 317 — 13 330 Total $ 82,477 $ 157,657 $ 68,926 $ 5,676 $ 3,284 $ 2,120 $ 9,051 $ 6,071 $ 335,262 Multi-family Pass $ 35,047 $ 79,926 $ 105,151 $ 58,069 $ 34,925 $ 29,929 $ 5,954 $ 512 $ 349,513 Pass-Watch 2,674 7,273 — 8,833 59 5,558 343 9 24,749 Substandard — — 315 — 489 470 — — 1,274 Total $ 37,721 $ 87,199 $ 105,466 $ 66,902 $ 35,473 $ 35,957 $ 6,297 $ 521 $ 375,536 One-to-four family residential Pass $ 69,055 $ 90,014 $ 88,637 $ 69,356 $ 23,957 $ 57,917 $ 57,698 $ 4,891 $ 461,525 Pass-Watch 1,011 670 1,164 572 713 2,909 295 320 7,654 Substandard 415 2,490 857 1,045 823 4,461 25 3,147 13,263 Total $ 70,481 $ 93,174 $ 90,658 $ 70,973 $ 25,493 $ 65,287 $ 58,018 $ 8,358 $ 482,442 Agricultural and farmland Pass $ 24,392 $ 40,120 $ 39,227 $ 40,052 $ 9,319 $ 9,194 $ 86,766 $ 2,318 $ 251,388 Pass-Watch 825 1,691 96 1,021 145 960 404 — 5,142 Substandard — — 16 3,312 — — — — 3,328 Total $ 25,217 $ 41,811 $ 39,339 $ 44,385 $ 9,464 $ 10,154 $ 87,170 $ 2,318 $ 259,858 Municipal, Consumer, and other Pass $ 31,397 $ 70,574 $ 28,952 $ 15,154 $ 1,793 $ 45,049 $ 8,787 $ 2 $ 201,708 Pass-Watch — 20 26 20 — 1,855 — — 1,921 Substandard 32 94 7 — 46 15,861 — — 16,040 Total $ 31,429 $ 70,688 $ 28,985 $ 15,174 $ 1,839 $ 62,765 $ 8,787 $ 2 $ 219,669 Total by Risk Rating Pass $ 384,415 $ 823,210 $ 684,215 $ 377,231 $ 200,970 $ 238,549 $ 349,865 $ 20,002 $ 3,078,457 Pass-Watch 6,213 15,820 11,534 11,339 11,868 17,170 17,490 2,008 93,442 Substandard 12,226 4,500 4,625 4,738 4,546 33,827 2,136 6,158 72,756 Total $ 402,854 $ 843,530 $ 700,374 $ 393,308 $ 217,384 $ 289,546 $ 369,491 $ 28,168 $ 3,244,655 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LOAN SERVICING | |
Schedule of activity in mortgage servicing rights | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Beginning balance $ 19,992 $ 9,723 $ 10,147 $ 7,994 Acquired — — 10,469 — Capitalized servicing rights 170 136 299 307 Fair value adjustment: Attributable to payments and principal reductions (559) (379) (990) (686) Attributable to changes in valuation inputs and assumptions 530 609 208 2,474 Total fair value adjustment (29) 230 (782) 1,788 Ending balance $ 20,133 $ 10,089 $ 20,133 $ 10,089 |
FORECLOSED ASSETS (Tables)
FORECLOSED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
FORECLOSED ASSETS | |
Schedule of foreclosed assets activity | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Beginning balance $ 3,356 $ 3,043 $ 3,030 $ 3,278 Acquired — — 271 — Transfers from loans 65 8 170 27 Proceeds from sales (244) (153) (284) (447) Net gain (loss) on sales 48 (7) 68 98 Direct write-downs (145) — (175) (65) Ending balance $ 3,080 $ 2,891 $ 3,080 $ 2,891 |
Schedule of gains (losses) on foreclosed assets | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Direct write-downs $ (145) $ — $ (175) $ (65) Net gain (loss) on sales 48 (7) 68 98 Gains (losses) on foreclosed assets $ (97) $ (7) $ (107) $ 33 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
DEPOSITS | |
Schedule of Company's interest-bearing deposits | June 30, 2023 December 31, 2022 (dollars in thousands) Noninterest-bearing deposits $ 1,125,823 $ 994,954 Interest-bearing deposits: Interest-bearing demand 1,181,187 1,139,150 Money market 730,652 555,425 Savings 657,506 634,527 Time 469,355 262,968 Total interest-bearing deposits 3,038,700 2,592,070 Total deposits $ 4,164,523 $ 3,587,024 |
Schedule of interest expense on deposits | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Interest-bearing demand $ 683 $ 144 $ 1,141 $ 286 Money market 1,516 110 2,451 231 Savings 189 52 367 102 Time 1,935 200 2,738 456 Total interest expense on deposits $ 4,323 $ 506 $ 6,697 $ 1,075 |
JUNIOR SUBORDINATED DEBENTURE_2
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Tables) - Junior Subordinated Debentures Issued | 6 Months Ended |
Jun. 30, 2023 | |
SUBORDINATED NOTES | |
Schedule of carrying value of subordinated debentures | Carrying Value Face Value June 30, 2023 December 31, 2022 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 5,155 FFBI Capital Trust I 7,217 7,217 7,217 National Bancorp Statutory Trust I 5,773 4,821 4,788 Town and Country Statutory Trust II 4,124 4,415 — Town and Country Statutory Trust III 7,732 7,572 — West Plains Investors Statutory Trust I 3,093 2,960 — Total $ 53,714 $ 52,760 $ 37,780 |
Schedule of interest rates and maturities of the junior subordinated debentures | Interest Rate at Variable June 30, December 31, Maturity Interest Rate 2023 2022 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 8.01 % 6.83 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 7.08 6.30 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 6.90 6.12 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 8.06 6.88 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 8.45 7.67 December 15, 2037 Town and Country Statutory Trust II LIBOR plus 2.79 8.30 N/A March 17, 2034 Town and Country Statutory Trust III LIBOR plus 1.68 7.23 N/A March 22, 2037 West Plains Investors Statutory Trust I LIBOR plus 1.45 7.00 N/A June 15, 2037 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Summary of fair values of Company's derivative instrument assets and liabilities related to interest rate swap contracts | June 30, 2023 December 31, 2022 Notional Fair Notional Fair Amount Value Amount Value (dollars in thousands) Fair value recorded in other assets $ 17,000 $ 587 $ 17,000 $ 629 |
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 (loss) to income other comprehensive income (loss) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Designated as cash flow hedges: (dollars in thousands) Junior subordinated debentures interest expense $ 109 $ (67) $ 203 $ (163) |
Summary of interest rate swap agreements not designated as hedging instruments | June 30, 2023 December 31, 2022 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 $ — $ — $ — $ — Interest rate swaps with a financial institution counterparty 105,954 8,053 106,995 6,981 Total fair value recorded in other assets $ 105,954 $ 8,053 $ 106,995 $ 6,981 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 105,954 $ (8,053) $ 106,995 $ (6,981) Interest rate swaps with a financial institution counterparty — — — — Total fair value recorded in other liabilities $ 105,954 $ (8,053) $ 106,995 $ (6,981) |
Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 1,703 $ 4,681 $ 4,440 $ 10,094 Gross losses (1,703) (4,681) (4,440) (10,094) Net gains (losses) $ — $ — $ — $ — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
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 June 30, 2023 Balance, March 31, 2023 $ (52,668) $ (9,596) $ 89 $ (62,175) Other comprehensive income (loss) before reclassifications (12,638) — 201 (12,437) Reclassifications 200 475 (109) 566 Other comprehensive income (loss), before tax (12,438) 475 92 (11,871) Income tax expense (benefit) (3,546) 135 27 (3,384) Other comprehensive income (loss), after tax (8,892) 340 65 (8,487) Balance, June 30, 2023 $ (61,560) $ (9,256) $ 154 $ (70,662) Three Months Ended June 30, 2022 Balance, March 31, 2022 $ (24,794) $ (11,048) $ (258) $ (36,100) Other comprehensive income (loss) before reclassifications (24,151) — 149 (24,002) Reclassifications — 549 67 616 Other comprehensive income (loss), before tax (24,151) 549 216 (23,386) Income tax expense (benefit) (6,884) 157 61 (6,666) Other comprehensive income (loss), after tax (17,267) 392 155 (16,720) Balance, June 30, 2022 $ (42,061) $ (10,656) $ (103) $ (52,820) Unrealized Gains (Losses) on Debt Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Six Months Ended June 30, 2023 Balance, December 31, 2022 $ (61,998) $ (9,946) $ 185 $ (71,759) Other comprehensive income (loss) before reclassifications (1,195) — 161 (1,034) Reclassifications 1,807 965 (203) 2,569 Other comprehensive income (loss), before tax 612 965 (42) 1,535 Income tax expense (benefit) 174 275 (11) 438 Other comprehensive income (loss), after tax 438 690 (31) 1,097 Balance, June 30, 2023 $ (61,560) $ (9,256) $ 154 $ (70,662) Six Months Ended June 30, 2022 Balance, December 31, 2021 $ 5,736 $ (3,514) $ (751) $ 1,471 Transfer from available-for-sale to held-to-maturity 7,664 (7,664) — — Other comprehensive income (loss) before reclassifications (77,573) — 743 (76,830) Reclassifications — 730 163 893 Other comprehensive income (loss), before tax (77,573) 730 906 (75,937) Income tax expense (benefit) (22,112) 208 258 (21,646) Other comprehensive income (loss), after tax (55,461) 522 648 (54,291) Balance, June 30, 2022 $ (42,061) $ (10,656) $ (103) $ (52,820) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS PER SHARE | |
Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Numerator: Net income $ 18,473 $ 14,085 $ 27,681 $ 27,689 Earnings allocated to participating securities (11) (17) (16) (34) Numerator for earnings per share - basic and diluted $ 18,462 $ 14,068 $ 27,665 $ 27,655 Denominator: Weighted average common shares outstanding 31,980,133 28,891,202 31,481,439 28,938,634 Dilutive effect of outstanding restricted stock units 99,850 53,674 84,981 48,688 Weighted average common shares outstanding, including all dilutive potential shares 32,079,983 28,944,876 31,566,420 28,987,322 Earnings per share - Basic $ 0.58 $ 0.49 $ 0.88 $ 0.96 Earnings per share - Diluted $ 0.58 $ 0.49 $ 0.88 $ 0.95 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
Summary of stock-based compensation expense | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Restricted stock units $ 317 $ 234 $ 594 $ 842 Performance restricted stock units 117 118 357 411 Total awards classified as equity 434 352 951 1,253 Stock appreciation rights (47) 7 (46) (16) Total stock-based compensation expense $ 387 $ 359 $ 905 $ 1,237 |
Schedule of the summary of outstanding restricted stock units | Three Months Ended June 30, 2023 2022 Weighted Weighted Average Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 129,422 $ 19.58 120,631 $ 17.98 Granted — — — — Vested — — — — Forfeited — — — — Ending balance 129,422 $ 19.58 120,631 $ 17.98 Six Months Ended June 30, 2023 2022 Weighted Weighted Average Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 139,986 $ 18.01 109,244 $ 17.27 Granted 41,847 22.72 46,312 19.11 Vested (51,693) 17.91 (34,925) 17.26 Forfeited (718) 16.58 — — Ending balance 129,422 $ 19.58 120,631 $ 17.98 |
Schedule of the status of stock appreciation rights and changes | Three Months Ended June 30, 2023 2022 Stock Appreciation Rights Outstanding Weighted Average Grant Date Assigned Value Stock Appreciation Rights Outstanding Weighted Average Grant Date Assigned Value Beginning balance 73,440 $ 16.32 91,800 $ 16.32 Granted — — — — Exercised — — — — Expired — — — — Forfeited — — — — Ending balance 73,440 $ 16.32 91,800 $ 16.32 Six Months Ended June 30, 2023 2022 Stock Appreciation Rights Weighted Average Grant Date Assigned Value Stock Appreciation Rights Weighted Average Grant Date Assigned Value Beginning balance 73,440 $ 16.32 97,920 $ 16.32 Granted — — — — Exercised — — (6,120) 16.32 Expired — — — — Forfeited — — — — Ending balance 73,440 $ 16.32 91,800 $ 16.32 A further summary of stock appreciation rights as of June 30, 2023, is as follows: Weighted Average Stock Appreciation Rights Remaining Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 73,440 67,320 6.2 years |
Schedule of assumptions used in valuing stock appreciation rights | June 30, 2023 December 31, 2022 Risk-free interest rate 4.06 % 3.95 % Expected volatility 37.35 % 36.54 % Expected life (in years) 6.2 6.7 Expected dividend yield 3.69 % 3.27 % |
Performance Shares | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of the summary of outstanding restricted stock units | Three Months Ended June 30, 2023 2022 Weighted Weighted Performance Average Performance Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 79,097 $ 18.25 62,067 $ 17.02 Granted — — — — Vested — — — — Forfeited — — — — Ending balance 79,097 $ 18.25 62,067 $ 17.02 Six months ended June 30, 2023 2022 Weighted Weighted Performance Average Performance Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Beginning balance 62,067 $ 17.02 38,344 $ 15.72 Granted 17,030 22.72 23,723 19.14 Vested — — — — Forfeited — — — — Ending balance 79,097 $ 18.25 62,067 $ 17.02 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
REGULATORY MATTERS | |
Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios | Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions June 30, 2023 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 575,030 15.03 % $ 306,067 8.00 % N/A N/A Heartland Bank and Trust Company 566,196 14.82 305,541 8.00 $ 381,926 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 501,898 13.12 % $ 229,551 6.00 % N/A N/A Heartland Bank and Trust Company 532,499 13.94 229,156 6.00 $ 305,541 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 450,752 11.78 % $ 172,163 4.50 % N/A N/A Heartland Bank and Trust Company 532,499 13.94 171,867 4.50 $ 248,252 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 501,898 10.07 % $ 199,442 4.00 % N/A N/A Heartland Bank and Trust Company 532,499 10.69 199,201 4.00 $ 249,001 5.00 % Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions December 31, 2022 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 516,556 16.27 % $ 254,052 8.00 % N/A N/A Heartland Bank and Trust Company 489,316 15.43 253,643 8.00 $ 317,054 10.00 % Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 451,828 14.23 % $ 190,539 6.00 % N/A N/A Heartland Bank and Trust Company 463,983 14.63 190,233 6.00 $ 253,643 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 415,213 13.07 % $ 142,904 4.50 % N/A N/A Heartland Bank and Trust Company 463,983 14.63 142,674 4.50 $ 206,085 6.50 % Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 451,828 10.48 % $ 172,427 4.00 % N/A N/A Heartland Bank and Trust Company 463,983 10.78 172,240 4.00 $ 215,300 5.00 % |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Summary of assets measured at fair value on a recurring basis | June 30, 2023 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Debt securities available-for-sale: U.S. Treasury $ 155,140 $ — $ — $ 155,140 U.S. government agency — 52,424 — 52,424 Municipal — 244,055 — 244,055 Mortgage-backed: Agency residential — 189,550 — 189,550 Agency commercial — 130,886 — 130,886 Corporate — 50,733 — 50,733 Equity securities with readily determinable fair values 3,152 — — 3,152 Mortgage servicing rights — — 20,133 20,133 Derivative financial assets — 8,640 — 8,640 Derivative financial liabilities — 8,053 — 8,053 December 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Debt securities available-for-sale: U.S. Treasury $ 154,515 $ — $ — $ 154,515 U.S. government agency — 55,157 — 55,157 Municipal — 243,829 — 243,829 Mortgage-backed: Agency residential — 195,441 — 195,441 Agency commercial — 132,888 — 132,888 Corporate — 61,694 — 61,694 Equity securities with readily determinable fair values 3,029 — — 3,029 Mortgage servicing rights — — 10,147 10,147 Derivative financial assets — 7,610 — 7,610 Derivative financial liabilities — 6,981 — 6,981 |
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): June 30, 2023 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Mortgage servicing rights $ 20,133 Discounted cash flows Constant pre-payment rates (CPR) 6.8% to 39.4% (8.0%) Discount rate 9.0% to 23.4% (9.6%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Mortgage servicing rights $ 10,147 Discounted cash flows Constant pre-payment rates (CPR) 5.3% to 59.7% (8.2%) Discount rate 9.0% to 11.7% (9.3%) |
Summary of assets measured at fair value on a nonrecurring basis | June 30, 2023 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Loans held for sale $ — $ 8,829 $ — $ 8,829 Collateral-dependent loans — — 32,767 32,767 Bank premises held for sale — — 35 35 Foreclosed assets — — 3,080 3,080 December 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (dollars in thousands) Loans held for sale $ — $ 615 $ — $ 615 Collateral-dependent loans — — 17,460 17,460 Bank premises held for sale — — 235 235 Foreclosed assets — — 3,030 3,030 |
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): June 30, 2023 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 32,767 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 35 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 3,080 Appraisal Appraisal adjustments 7% (7%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 17,460 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 235 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 3,030 Appraisal Appraisal adjustments 7% (7%) |
Summary information on the carrying amounts and estimated fair values of the Company's financial instruments | Fair Value June 30, 2023 December 31, 2022 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 109,808 $ 109,808 $ 114,159 $ 114,159 Debt securities held-to-maturity Level 2 533,231 469,921 541,600 478,801 Restricted stock Level 3 11,345 11,345 7,965 7,965 Loans, net Level 3 3,206,841 3,143,481 2,594,920 2,566,930 Investments in unconsolidated subsidiaries Level 3 1,614 1,614 1,165 1,165 Accrued interest receivable Level 2 19,900 19,900 19,506 19,506 Financial liabilities: Time deposits Level 3 469,355 457,327 262,968 253,619 Securities sold under agreements to repurchase Level 2 38,729 38,729 43,081 43,081 Subordinated notes Level 3 39,435 32,481 39,395 37,205 Junior subordinated debentures Level 3 52,760 41,993 37,780 37,030 Accrued interest payable Level 2 2,386 2,386 1,363 1,363 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of commitments and conditional obligations | Contractual Amount June 30, 2023 December 31, 2022 (dollars in thousands) Commitments to extend credit $ 860,390 $ 756,885 Standby letters of credit 19,053 17,785 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) item segment | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
ACCOUNTING POLICIES | |||||
Number of Subsidiary | item | 8 | ||||
Internal review threshold | $ 750,000 | ||||
Loans | $ 2,594,920,000 | ||||
Allowance for credit loss | $ 25,333,000 | $ 24,734,000 | $ 24,508,000 | $ 23,936,000 | |
Number of segments | segment | 1 |
ACCOUNTING POLICIES - Impact of
ACCOUNTING POLICIES - Impact of ASC 326 on the allowance for credit losses (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Jan. 01, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Retained earnings | $ 241,777 | $ 232,004 | |||||
Allowance for credit loss | 25,333 | $ 24,734 | $ 24,508 | $ 23,936 | |||
Allowance for credit loss | 37,814 | $ 38,776 | |||||
PCD allowance established in acquisition | 1,247 | ||||||
Commercial and industrial | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 3,279 | 2,981 | 2,491 | 2,440 | |||
Allowance for credit loss | 3,735 | 2,932 | |||||
PCD allowance established in acquisition | 69 | ||||||
Commercial real estate - owner occupied | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,193 | 1,224 | 1,511 | 1,840 | |||
Allowance for credit loss | 2,362 | 2,535 | |||||
PCD allowance established in acquisition | 127 | ||||||
Commercial real estate - non-owner occupied | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 6,721 | 6,611 | 7,014 | 8,145 | |||
Allowance for credit loss | 7,538 | 7,840 | |||||
PCD allowance established in acquisition | 239 | ||||||
Construction and land development | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 4,223 | 4,059 | 4,493 | 4,914 | |||
Allowance for credit loss | 5,834 | 7,574 | |||||
PCD allowance established in acquisition | 240 | ||||||
Multi-family | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,472 | 1,375 | 1,354 | 1,263 | |||
Allowance for credit loss | 2,603 | 2,151 | |||||
PCD allowance established in acquisition | 68 | ||||||
One-to-four family residential | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,759 | 1,696 | 1,583 | 1,311 | |||
Allowance for credit loss | 4,077 | 4,165 | |||||
PCD allowance established in acquisition | 492 | ||||||
Agricultural and farmland | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 796 | 924 | 842 | 845 | |||
Allowance for credit loss | 2,607 | 2,674 | |||||
PCD allowance established in acquisition | 5 | ||||||
Municipal, consumer, and other | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | $ 5,890 | $ 5,864 | $ 5,220 | $ 3,178 | |||
Allowance for credit loss | 9,058 | $ 8,905 | |||||
PCD allowance established in acquisition | 7 | ||||||
Unfunded Loan Commitment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 4,100 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Retained earnings | $ (6,900) | ||||||
Allowance for credit loss | 6,983 | ||||||
Allowance for credit loss | 6,983 | ||||||
PCD allowance established in acquisition | 200 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial and industrial | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | (822) | ||||||
Allowance for credit loss | (822) | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial real estate - owner occupied | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 587 | ||||||
Allowance for credit loss | 587 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial real estate - non-owner occupied | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 501 | ||||||
Allowance for credit loss | 501 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Construction and land development | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,969 | ||||||
Allowance for credit loss | 1,969 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Multi-family | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 85 | ||||||
Allowance for credit loss | 85 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | One-to-four family residential | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 797 | ||||||
Allowance for credit loss | 797 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Agricultural and farmland | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,567 | ||||||
Allowance for credit loss | 1,567 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Municipal, consumer, and other | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 2,299 | ||||||
Allowance for credit loss | $ 2,299 | ||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unfunded Loan Commitment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 2,899 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 32,316 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial and industrial | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 2,457 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial real estate - owner occupied | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,780 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial real estate - non-owner occupied | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 7,222 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Construction and land development | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 6,192 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Multi-family | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 1,557 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | One-to-four family residential | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 2,556 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Agricultural and farmland | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 2,363 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Municipal, consumer, and other | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | 8,189 | ||||||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Unfunded Loan Commitment | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Allowance for credit loss | $ 2,899 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Feb. 01, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 59,876 | $ 29,322 | |
Town and Country | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100% | ||
Stock consideration per share | 1.9010 | ||
Cash consideration per share | $ 35.66 | ||
Share Price | $ 21.12 | ||
Goodwill | $ 30,554 | ||
Cash consideration | 37,996 | ||
Market value of shares issued as part of consideration | $ 71,356 | ||
Stock consideration (number of shares) | 3,378,600 | ||
Total consideration | $ 109,352 | ||
Maximum period for refinement of fair values from closing date | 1 year |
ACQUISITIONS - Acquisition-rela
ACQUISITIONS - Acquisition-related expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Provision for credit losses | $ 145 | $ (439) | ||
Furniture and equipment | $ 809 | 623 | $ 1,468 | 1,175 |
Total noninterest expense | 33,973 | 23,842 | 69,906 | 47,999 |
Town and Country | ||||
Business Acquisition [Line Items] | ||||
Provision for credit losses | 5,924 | |||
Salaries | 66 | 3,584 | ||
Furniture and equipment | 39 | 39 | ||
Data processing | 176 | 2,031 | ||
Marketing and customer relations | 10 | 24 | ||
Loan collection and servicing | 125 | 125 | ||
Legal fees and other noninterest expense | 211 | 1,964 | ||
Total noninterest expense | 627 | 7,767 | ||
Acquisition-related expenses, total | $ 627 | $ 0 | $ 13,691 | $ 0 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Consideration paid: | |||
Goodwill | $ 59,876 | $ 29,322 | |
Town and Country | |||
Assets acquired: | |||
Cash and cash equivalents | $ 23,542 | ||
Interest-bearing time deposits with banks | 249 | ||
Debt securities | 167,869 | ||
Equity securities | 90 | ||
Restricted stock | 2,822 | ||
Loans held for sale | 1,612 | ||
Loans, before allowance for credit losses | 635,376 | ||
Allowance for credit losses | (1,247) | ||
Loans, net of allowance for credit losses | 634,129 | ||
Bank owned life insurance | 15,782 | ||
Bank premises and equipment | 14,828 | ||
Foreclosed assets | 271 | ||
Intangible assets | 22,282 | ||
Mortgage servicing rights | 10,469 | ||
Investments in unconsolidated subsidiaries | 449 | ||
Accrued interest receivable | 3,113 | ||
Other assets | 8,061 | ||
Total assets acquired | 905,568 | ||
Liabilities assumed: | |||
Deposits | 720,417 | ||
FHLB advances | 86,439 | ||
Junior subordinated debentures | 14,949 | ||
Other liabilities | 4,965 | ||
Total liabilities assumed | 826,770 | ||
Net assets acquired | 78,798 | ||
Consideration paid: | |||
Cash | 37,996 | ||
Common stock | 71,356 | ||
Business Combination, Consideration Transferred, Total | 109,352 | ||
Goodwill | $ 30,554 |
ACQUISITIONS - PCD loans and su
ACQUISITIONS - PCD loans and subsequent changes (Details) - Town and Country - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 01, 2023 | Jun. 30, 2023 | |
Financing Receivable, Purchased with Credit Deterioration, Amount at Purchase Price [Abstract] | ||
Unpaid principal balance | $ 89,822 | |
Allowance for credit loss at acquisition | (1,247) | |
Noncredit discount | (2,218) | |
Purchase price | $ 86,357 | |
Subsequent adjustment to allowance for credit losses on loans | $ 5,200 | |
Subsequent adjustment to allowance for credit losses on unfunded commitments | $ 700 |
ACQUISITIONS - Schedule of pro
ACQUISITIONS - Schedule of pro forma (Details) - Town and Country Financial Corporation [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Total revenues (net interest income and noninterest income) | $ 58,786 | $ 53,431 | $ 116,556 | $ 107,943 |
Net income | $ 18,185 | $ 16,833 | $ 28,200 | $ 36,190 |
Earnings per share - basic | $ 0.57 | $ 0.55 | $ 0.89 | $ 1.17 |
Earnings per share - diluted | $ 0.57 | $ 0.55 | $ 0.88 | $ 1.17 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
SECURITIES | |||
Adjustment to carrying value of equity securities with no readily determinable fair value | $ 200 | ||
Allowance for credit losses | $ 800 | 800 | |
Debt securities, available-for-sale, accrued interest | 6,100 | 6,100 | |
Impairments of downward adjustments | $ 100 | ||
Municipal securities | |||
SECURITIES | |||
Percentage of securities with general obligation issue | 81% | ||
Corporate | |||
SECURITIES | |||
Allowance for credit losses | 800 | $ 800 | |
Provision for credit losses | 200 | 600 | |
Assets Pledged | |||
SECURITIES | |||
Carrying value of securities pledged to secure public and trust deposits | $ 449,600 | $ 449,600 | $ 332,600 |
SECURITIES - Amortized cost and
SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available-for-sale | ||
Amortized cost | $ 913,908 | |
Amortized Cost (Pre-Adoption) | $ 934,456 | |
Gross Unrealized Gains | 21 | 106 |
Gross Unrealized Losses | (90,341) | (91,038) |
Allowance for credit losses | (800) | |
Fair Value | 822,788 | |
Fair Value | 843,524 | |
Held-to-maturity | ||
Amortized Cost | 533,231 | |
Debt securities held-to-maturity | 541,600 | |
Gross Unrealized Gains | 147 | 195 |
Gross Unrealized Losses | (63,457) | (62,994) |
Fair Value | 469,921 | 478,801 |
U.S. Treasury | ||
Available-for-sale | ||
Amortized cost | 169,788 | |
Amortized Cost (Pre-Adoption) | 169,860 | |
Gross Unrealized Losses | (14,648) | (15,345) |
Fair Value | 155,140 | |
Fair Value | 154,515 | |
U.S. government agency | ||
Available-for-sale | ||
Amortized cost | 56,833 | |
Amortized Cost (Pre-Adoption) | 59,291 | |
Gross Unrealized Losses | (4,409) | (4,134) |
Fair Value | 52,424 | |
Fair Value | 55,157 | |
Held-to-maturity | ||
Amortized Cost | 88,436 | |
Debt securities held-to-maturity | 88,424 | |
Gross Unrealized Losses | (9,615) | (9,728) |
Fair Value | 78,821 | 78,696 |
Municipal securities | ||
Available-for-sale | ||
Amortized cost | 273,263 | |
Amortized Cost (Pre-Adoption) | 275,972 | |
Gross Unrealized Gains | 18 | 46 |
Gross Unrealized Losses | (29,226) | (32,189) |
Fair Value | 244,055 | |
Fair Value | 243,829 | |
Held-to-maturity | ||
Amortized Cost | 39,756 | |
Debt securities held-to-maturity | 42,167 | |
Gross Unrealized Gains | 147 | 195 |
Gross Unrealized Losses | (422) | (314) |
Fair Value | 39,481 | 42,048 |
Mortgage-backed: Agency residential | ||
Available-for-sale | ||
Amortized cost | 208,470 | |
Amortized Cost (Pre-Adoption) | 213,676 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (18,920) | (18,240) |
Fair Value | 189,550 | |
Fair Value | 195,441 | |
Held-to-maturity | ||
Amortized Cost | 100,685 | |
Debt securities held-to-maturity | 102,728 | |
Gross Unrealized Losses | (7,003) | (6,470) |
Fair Value | 93,682 | 96,258 |
Mortgage-backed: Agency commercial | ||
Available-for-sale | ||
Amortized cost | 147,922 | |
Amortized Cost (Pre-Adoption) | 150,060 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (17,039) | (17,172) |
Fair Value | 130,886 | |
Fair Value | 132,888 | |
Held-to-maturity | ||
Amortized Cost | 304,354 | |
Debt securities held-to-maturity | 308,281 | |
Gross Unrealized Losses | (46,417) | (46,482) |
Fair Value | 257,937 | 261,799 |
Corporate | ||
Available-for-sale | ||
Amortized cost | 57,632 | |
Amortized Cost (Pre-Adoption) | 65,597 | |
Gross Unrealized Gains | 55 | |
Gross Unrealized Losses | (6,099) | (3,958) |
Allowance for credit losses | (800) | |
Fair Value | $ 50,733 | |
Fair Value | $ 61,694 |
SECURITIES - Amortized cost a_2
SECURITIES - Amortized cost and Fair values of held-to-maturity securities transferred from available-for-sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Held-to-maturity | |||
Debt securities held-to-maturity | $ 541,600 | ||
Fair Value | $ 469,921 | 478,801 | |
U.S. government agency | |||
Held-to-maturity | |||
Debt securities held-to-maturity | 88,424 | ||
Fair Value | 78,821 | 78,696 | |
Mortgage-backed: Agency residential | |||
Held-to-maturity | |||
Debt securities held-to-maturity | 102,728 | ||
Fair Value | 93,682 | 96,258 | |
Mortgage-backed: Agency commercial | |||
Held-to-maturity | |||
Debt securities held-to-maturity | 308,281 | ||
Fair Value | $ 257,937 | $ 261,799 | |
Debt Securities Transferred | |||
Held-to-maturity | |||
Debt securities held-to-maturity | $ 114,850 | ||
Fair Value | 104,131 | ||
Debt Securities Transferred | U.S. government agency | |||
Held-to-maturity | |||
Debt securities held-to-maturity | 78,841 | ||
Fair Value | 71,048 | ||
Debt Securities Transferred | Mortgage-backed: Agency residential | |||
Held-to-maturity | |||
Debt securities held-to-maturity | 8,175 | ||
Fair Value | 7,651 | ||
Debt Securities Transferred | Mortgage-backed: Agency commercial | |||
Held-to-maturity | |||
Debt securities held-to-maturity | 27,834 | ||
Fair Value | $ 25,432 |
SECURITIES - Amortized cost a_3
SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized cost | $ 913,908 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost (Pre-Adoption) | $ 934,456 | |
Fair Value | ||
Fair Value | 822,788 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost | 533,231 | |
Debt securities held-to-maturity | 541,600 | |
Fair Value | ||
Fair Value | 469,921 | 478,801 |
Mortgage-backed: Agency residential | ||
Amortized Cost | ||
Amortized cost | 208,470 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost (Pre-Adoption) | 213,676 | |
Fair Value | ||
Fair Value | 189,550 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost | 100,685 | |
Debt securities held-to-maturity | 102,728 | |
Fair Value | ||
Fair Value | 93,682 | 96,258 |
Mortgage-backed: Agency commercial | ||
Amortized Cost | ||
Amortized cost | 147,922 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost (Pre-Adoption) | 150,060 | |
Fair Value | ||
Fair Value | 130,886 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost | 304,354 | |
Debt securities held-to-maturity | 308,281 | |
Fair Value | ||
Fair Value | 257,937 | $ 261,799 |
Available-for-sale | ||
Amortized Cost | ||
Due in 1 year or less | 34,603 | |
Due after 1 year through 5 years | 230,246 | |
Due after 5 years through 10 years | 236,936 | |
Due after 10 years | 55,731 | |
Amortized cost | 913,908 | |
Fair Value | ||
Due in 1 year or less | 33,740 | |
Due after 1 year through 5 years | 215,388 | |
Due after 5 years through 10 years | 204,230 | |
Due after 10 years | 48,994 | |
Fair Value | 822,788 | |
Available-for-sale | Mortgage-backed: Agency residential | ||
Amortized Cost | ||
Amortized cost | 208,470 | |
Fair Value | ||
Fair Value | 189,550 | |
Available-for-sale | Mortgage-backed: Agency commercial | ||
Amortized Cost | ||
Amortized cost | 147,922 | |
Fair Value | ||
Fair Value | 130,886 | |
Held-to-maturity | ||
Amortized Cost | ||
Due in 1 year or less | 2,451 | |
Due after 1 year through 5 years | 27,401 | |
Due after 5 years through 10 years | 92,657 | |
Due after 10 years | 5,683 | |
Amortized Cost (Pre-Adoption) | ||
Amortized Cost | 533,231 | |
Fair Value | ||
Due in 1 year or less | 2,454 | |
Due after 1 year through 5 years | 26,424 | |
Due after 5 years through 10 years | 84,186 | |
Due after 10 years | 5,238 | |
Fair Value | 469,921 | |
Held-to-maturity | Mortgage-backed: Agency residential | ||
Amortized Cost (Pre-Adoption) | ||
Amortized Cost | 100,685 | |
Fair Value | ||
Fair Value | 93,682 | |
Held-to-maturity | Mortgage-backed: Agency commercial | ||
Amortized Cost (Pre-Adoption) | ||
Amortized Cost | 304,354 | |
Fair Value | ||
Fair Value | $ 257,937 |
SECURITIES - Investments in a C
SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Aug. 02, 2023 USD ($) | Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | $ (4,637) | $ (37,977) | |
12 Months or More | (85,527) | (53,061) | |
Total Unrealized Loss of Available-for-sale securities | (90,164) | (91,038) | |
Held-to-maturity: Unrealized Loss | |||
Less than 12 Months | (22,823) | ||
12 Months or More | (40,171) | ||
Total Unrealized Loss of Held-to-maturity securities | (62,994) | ||
Available-for-sale: Fair Value | |||
Less than 12 Months | 123,018 | 531,226 | |
12 Months or More | 694,429 | 299,159 | |
Total Fair Value Available-for-sale securities | $ 817,447 | 830,385 | |
Held-to-maturity: Fair value | |||
Less than 12 Months | 220,934 | ||
12 Months or More | 239,252 | ||
Total Fair Value Held-to-maturity securities | 460,186 | ||
Total: Unrealized Losses | |||
Less Than 12 Months | (60,800) | ||
12 Months or More | (93,232) | ||
Total Unrealized Losses | (154,032) | ||
Total: Fair Value | |||
Less than 12 Months | 752,160 | ||
12 Months or More | 538,411 | ||
Total Fair Value | 1,290,571 | ||
Number of securities in an unrealized loss position for a period of twelve months or more | item | 587 | ||
Number of securities in an unrealized loss position for a period of less than twelve months | item | 350 | ||
Proceeds from sales of securities available-for-sale | $ 39,400 | $ 145,844 | |
U.S. Treasury | |||
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | (8,401) | ||
12 Months or More | (14,648) | (6,944) | |
Total Unrealized Loss of Available-for-sale securities | (14,648) | (15,345) | |
Available-for-sale: Fair Value | |||
Less than 12 Months | 92,445 | ||
12 Months or More | 155,140 | 62,070 | |
Total Fair Value Available-for-sale securities | 155,140 | 154,515 | |
U.S. government agency | |||
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | (270) | (2,980) | |
12 Months or More | (4,139) | (1,154) | |
Total Unrealized Loss of Available-for-sale securities | (4,409) | (4,134) | |
Held-to-maturity: Unrealized Loss | |||
Less than 12 Months | (1,754) | ||
12 Months or More | (7,974) | ||
Total Unrealized Loss of Held-to-maturity securities | (9,728) | ||
Available-for-sale: Fair Value | |||
Less than 12 Months | 7,973 | 47,370 | |
12 Months or More | 44,451 | 7,787 | |
Total Fair Value Available-for-sale securities | 52,424 | 55,157 | |
Held-to-maturity: Fair value | |||
Less than 12 Months | 15,751 | ||
12 Months or More | 62,945 | ||
Total Fair Value Held-to-maturity securities | 78,696 | ||
Municipal securities | |||
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | (723) | (10,906) | |
12 Months or More | (28,503) | (21,283) | |
Total Unrealized Loss of Available-for-sale securities | (29,226) | (32,189) | |
Held-to-maturity: Unrealized Loss | |||
Less than 12 Months | (314) | ||
Total Unrealized Loss of Held-to-maturity securities | (314) | ||
Available-for-sale: Fair Value | |||
Less than 12 Months | 47,645 | 149,261 | |
12 Months or More | 192,219 | 87,794 | |
Total Fair Value Available-for-sale securities | 239,864 | 237,055 | |
Held-to-maturity: Fair value | |||
Less than 12 Months | 23,433 | ||
Total Fair Value Held-to-maturity securities | 23,433 | ||
Mortgage-backed: Agency residential | |||
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | (1,305) | (8,332) | |
12 Months or More | (17,615) | (9,908) | |
Total Unrealized Loss of Available-for-sale securities | (18,920) | (18,240) | |
Held-to-maturity: Unrealized Loss | |||
Less than 12 Months | (4,039) | ||
12 Months or More | (2,431) | ||
Total Unrealized Loss of Held-to-maturity securities | (6,470) | ||
Available-for-sale: Fair Value | |||
Less than 12 Months | 36,555 | 127,288 | |
12 Months or More | 152,961 | 65,692 | |
Total Fair Value Available-for-sale securities | 189,516 | 192,980 | |
Held-to-maturity: Fair value | |||
Less than 12 Months | 78,452 | ||
12 Months or More | 17,806 | ||
Total Fair Value Held-to-maturity securities | 96,258 | ||
Mortgage-backed: Agency commercial | |||
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | (345) | (4,764) | |
12 Months or More | (16,694) | (12,408) | |
Total Unrealized Loss of Available-for-sale securities | (17,039) | (17,172) | |
Held-to-maturity: Unrealized Loss | |||
Less than 12 Months | (16,716) | ||
12 Months or More | (29,766) | ||
Total Unrealized Loss of Held-to-maturity securities | (46,482) | ||
Available-for-sale: Fair Value | |||
Less than 12 Months | 13,093 | 62,672 | |
12 Months or More | 117,701 | 70,216 | |
Total Fair Value Available-for-sale securities | 130,794 | 132,888 | |
Held-to-maturity: Fair value | |||
Less than 12 Months | 103,298 | ||
12 Months or More | 158,501 | ||
Total Fair Value Held-to-maturity securities | 261,799 | ||
Corporate | |||
Available-for-sale: Unrealized Loss | |||
Less than 12 Months | (1,994) | (2,594) | |
12 Months or More | (3,928) | (1,364) | |
Total Unrealized Loss of Available-for-sale securities | (5,922) | (3,958) | |
Available-for-sale: Fair Value | |||
Less than 12 Months | 17,752 | 52,190 | |
12 Months or More | 31,957 | 5,600 | |
Total Fair Value Available-for-sale securities | $ 49,709 | $ 57,790 |
SECURITIES - Sale of debt secur
SECURITIES - Sale of debt securities (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Aug. 02, 2023 | Jun. 30, 2023 | |
SECURITIES | ||
Proceeds from sales | $ 39,400 | $ 145,844 |
Gross unrealized losses | $ (800) | $ (1,007) |
SECURITIES - Equity securities
SECURITIES - Equity securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Equity Securities - Readily determinable fair value | |||||
Equity Securities, Readily determinable fair value, cost | $ 3,142 | $ 3,142 | $ 3,142 | ||
Equity Securities, Readily determinable fair value, Cumulative Net Unrealized Gains (Losses) | 10 | 10 | (113) | ||
Equity securities, Readily determinable fair value, Carrying Value | 3,152 | 3,152 | 3,029 | ||
Equity Securities - No readily determinable fair value | |||||
Equity Securities, No readily determinable fair value, cost | 2,578 | 2,578 | 2,142 | ||
Equity Securities, No readily determinable fair value, Cumulative Net Unrealized Gains (Losses) | (303) | (303) | (165) | ||
Equity securities: No readily determinable fair value, Carrying Value | 2,275 | 2,275 | 1,977 | ||
Upward adjustment on equity securities with no readily determinable fair value | 0 | 0 | $ 0 | ||
Proceeds from sale of equity securities | $ 0 | $ 0 | $ 0 | $ 0 |
SECURITIES - Sale and Gain (los
SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Gains (losses) on securities | ||||
Realized gains (losses) on sales of securities | $ (1,007) | |||
Net unrealized gains (losses) on equity securities: | ||||
Readily determinable fair value | $ 7 | $ (153) | 123 | $ (340) |
No readily determinable fair value | (138) | |||
Gains (losses) on securities | $ 7 | $ (153) | $ (15) | $ (340) |
LOANS AND RELATED ALLOWANCE F_3
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Categories of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | $ 2,620,253 | |||||
Loans, before allowance for credit losses | $ 3,244,655 | |||||
Allowance for credit losses | (25,333) | $ (24,734) | $ (24,508) | $ (23,936) | ||
Allowance for credit losses | (37,814) | $ (38,776) | ||||
Loans, net of allowance for credit losses | 2,594,920 | |||||
Loans, net of allowance for credit losses | 3,206,841 | |||||
Pledged assets | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, net of allowance for credit losses | 892,100 | |||||
Loans, net of allowance for credit losses | 1,040,000 | |||||
Commercial and industrial | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 266,757 | |||||
Loans, before allowance for credit losses | 385,768 | |||||
Allowance for credit losses | (3,279) | (2,981) | (2,491) | (2,440) | ||
Allowance for credit losses | (3,735) | (2,932) | ||||
Commercial and industrial | Paycheck Protection Program (PPP) Loans | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 28 | |||||
Loans, before allowance for credit losses | 22 | |||||
Commercial real estate - owner occupied | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 218,503 | |||||
Loans, before allowance for credit losses | 303,522 | |||||
Allowance for credit losses | (1,193) | (1,224) | (1,511) | (1,840) | ||
Allowance for credit losses | (2,362) | (2,535) | ||||
Commercial real estate - non-owner occupied | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 713,202 | |||||
Loans, before allowance for credit losses | 882,598 | |||||
Allowance for credit losses | (6,721) | (6,611) | (7,014) | (8,145) | ||
Allowance for credit losses | (7,538) | (7,840) | ||||
Construction and land development | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 360,824 | |||||
Loans, before allowance for credit losses | 335,262 | |||||
Allowance for credit losses | (4,223) | (4,059) | (4,493) | (4,914) | ||
Allowance for credit losses | (5,834) | (7,574) | ||||
Multi-family | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 287,865 | |||||
Loans, before allowance for credit losses | 375,536 | |||||
Allowance for credit losses | (1,472) | (1,375) | (1,354) | (1,263) | ||
Allowance for credit losses | (2,603) | (2,151) | ||||
One-to-four family residential | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 338,253 | |||||
Loans, before allowance for credit losses | 482,442 | |||||
Allowance for credit losses | (1,759) | (1,696) | (1,583) | (1,311) | ||
Allowance for credit losses | (4,077) | (4,165) | ||||
Agricultural and farmland | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 237,746 | |||||
Loans, before allowance for credit losses | 259,858 | |||||
Allowance for credit losses | (796) | (924) | (842) | (845) | ||
Allowance for credit losses | (2,607) | (2,674) | ||||
Municipal, consumer, and other | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Loans, before allowance for credit losses | 197,103 | |||||
Loans, before allowance for credit losses | 219,669 | |||||
Allowance for credit losses | $ (5,890) | $ (5,864) | $ (5,220) | $ (3,178) | ||
Allowance for credit losses | $ (9,058) | $ (8,905) |
LOANS AND RELATED ALLOWANCE F_4
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 25,333 | $ 24,508 | $ 25,333 | $ 23,936 | |
Provision for credit losses | 145 | (439) | |||
Charge-offs | (159) | (293) | |||
Recoveries | 240 | 1,530 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 24,734 | 24,734 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 38,776 | ||||
PCD allowance established in acquisition | 1,247 | ||||
Provision for credit losses | (1,080) | 4,021 | |||
Charge-offs | (179) | (321) | |||
Recoveries | 297 | 551 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 37,814 | 37,814 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 6,983 | ||||
PCD allowance established in acquisition | 200 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 6,983 | 6,983 | |||
Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 3,279 | 2,491 | 3,279 | 2,440 | |
Provision for credit losses | 450 | (203) | |||
Charge-offs | (5) | ||||
Recoveries | 40 | 749 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,981 | 2,981 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,932 | ||||
PCD allowance established in acquisition | 69 | ||||
Provision for credit losses | 791 | 1,178 | |||
Recoveries | 12 | 31 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 3,735 | 3,735 | |||
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | (822) | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | (822) | (822) | |||
Commercial real estate - owner occupied | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,193 | 1,511 | 1,193 | 1,840 | |
Provision for credit losses | (287) | (716) | |||
Recoveries | 100 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,224 | 1,224 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,535 | ||||
PCD allowance established in acquisition | 127 | ||||
Provision for credit losses | (175) | 444 | |||
Charge-offs | (3) | ||||
Recoveries | 2 | 14 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,362 | 2,362 | |||
Commercial real estate - owner occupied | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 587 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 587 | 587 | |||
Commercial real estate - non-owner occupied | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 6,721 | 7,014 | 6,721 | 8,145 | |
Provision for credit losses | (408) | (1,804) | |||
Recoveries | 5 | 270 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 6,611 | 6,611 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 7,840 | ||||
PCD allowance established in acquisition | 239 | ||||
Provision for credit losses | (466) | (161) | |||
Recoveries | 164 | 238 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7,538 | 7,538 | |||
Commercial real estate - non-owner occupied | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 501 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 501 | 501 | |||
Construction and land development | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4,223 | 4,493 | 4,223 | 4,914 | |
Provision for credit losses | (434) | (855) | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 4,059 | 4,059 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 7,574 | ||||
PCD allowance established in acquisition | 240 | ||||
Provision for credit losses | (1,745) | (606) | |||
Recoveries | 5 | 8 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 5,834 | 5,834 | |||
Construction and land development | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,969 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,969 | 1,969 | |||
Multi-family | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,472 | 1,354 | 1,472 | 1,263 | |
Provision for credit losses | 21 | 112 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,375 | 1,375 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,151 | ||||
PCD allowance established in acquisition | 68 | ||||
Provision for credit losses | 452 | 978 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,603 | 2,603 | |||
Multi-family | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 85 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 85 | 85 | |||
One-to-four family residential | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 1,759 | 1,583 | 1,759 | 1,311 | |
Provision for credit losses | 51 | 171 | |||
Charge-offs | (47) | (49) | |||
Recoveries | 109 | 263 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,696 | 1,696 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4,165 | ||||
PCD allowance established in acquisition | 492 | ||||
Provision for credit losses | (121) | 960 | |||
Charge-offs | (4) | (26) | |||
Recoveries | 37 | 95 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 4,077 | 4,077 | |||
One-to-four family residential | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 797 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 797 | 797 | |||
Agricultural and farmland | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 796 | 842 | 796 | 845 | |
Provision for credit losses | 82 | 79 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 924 | 924 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 2,674 | ||||
PCD allowance established in acquisition | 5 | ||||
Provision for credit losses | (68) | 237 | |||
Recoveries | 1 | 2 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 2,607 | 2,607 | |||
Agricultural and farmland | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,567 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1,567 | 1,567 | |||
Municipal, consumer, and other | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 5,890 | 5,220 | 5,890 | 3,178 | |
Provision for credit losses | 670 | 2,777 | |||
Charge-offs | (112) | (239) | |||
Recoveries | 86 | 148 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 5,864 | $ 5,864 | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 8,905 | ||||
PCD allowance established in acquisition | 7 | ||||
Provision for credit losses | 252 | 991 | |||
Charge-offs | (175) | (292) | |||
Recoveries | 76 | 163 | |||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 9,058 | 9,058 | |||
Municipal, consumer, and other | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 2,299 | ||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 2,299 | $ 2,299 |
LOANS AND RELATED ALLOWANCE F_5
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Gross Chargeoffs by Origination Year (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross write-offs, 2023 | $ 100 | $ 135 |
Gross write-offs, 2022 | 21 | 77 |
Gross write-offs, 2020 | 9 | |
Gross write-offs, 2019 | 1 | |
Gross write-offs, Prior | 4 | 25 |
Gross write-offs, Revolving loans | 54 | 74 |
Gross charge-offs | 179 | 321 |
Commercial real estate - owner occupied | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross write-offs, 2022 | 3 | |
Gross charge-offs | 3 | |
One-to-four family residential | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross write-offs, 2019 | 1 | |
Gross write-offs, Prior | 4 | 25 |
Gross charge-offs | 4 | 26 |
Municipal, consumer, and other | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross write-offs, 2023 | 100 | 135 |
Gross write-offs, 2022 | 21 | 74 |
Gross write-offs, 2020 | 9 | |
Gross write-offs, Revolving loans | 54 | 74 |
Gross charge-offs | $ 175 | $ 292 |
LOANS AND RELATED ALLOWANCE F_6
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | $ 3,206,839 | |||||
Individually evaluated for impairment, Loans | 37,816 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 3,244,655 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 32,765 | |||||
Individually evaluated for impairment, Allowance for loan losses | 5,049 | |||||
Allowance for credit loss | 37,814 | $ 38,776 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 2,620,253 | |||||
Allowance for credit loss | 25,333 | $ 24,734 | $ 24,508 | $ 23,936 | ||
Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 2,527,562 | |||||
Allowance for credit loss | 18,984 | |||||
Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 71,715 | |||||
Allowance for credit loss | 6,320 | |||||
Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 20,976 | |||||
Allowance for credit loss | 29 | |||||
Commercial and industrial | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 385,594 | |||||
Individually evaluated for impairment, Loans | 174 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 385,768 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 3,730 | |||||
Individually evaluated for impairment, Allowance for loan losses | 5 | |||||
Allowance for credit loss | 3,735 | 2,932 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 266,757 | |||||
Allowance for credit loss | 3,279 | 2,981 | 2,491 | 2,440 | ||
Commercial and industrial | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 261,833 | |||||
Allowance for credit loss | 3,121 | |||||
Commercial and industrial | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 4,818 | |||||
Allowance for credit loss | 158 | |||||
Commercial and industrial | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 106 | |||||
Commercial real estate - owner occupied | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 303,271 | |||||
Individually evaluated for impairment, Loans | 251 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 303,522 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 2,350 | |||||
Individually evaluated for impairment, Allowance for loan losses | 12 | |||||
Allowance for credit loss | 2,362 | 2,535 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 218,503 | |||||
Allowance for credit loss | 1,193 | 1,224 | 1,511 | 1,840 | ||
Commercial real estate - owner occupied | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 203,558 | |||||
Allowance for credit loss | 1,008 | |||||
Commercial real estate - owner occupied | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 11,366 | |||||
Allowance for credit loss | 168 | |||||
Commercial real estate - owner occupied | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 3,579 | |||||
Allowance for credit loss | 17 | |||||
Commercial real estate - non-owner occupied | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 868,421 | |||||
Individually evaluated for impairment, Loans | 14,177 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 882,598 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 6,280 | |||||
Individually evaluated for impairment, Allowance for loan losses | 1,258 | |||||
Allowance for credit loss | 7,538 | 7,840 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 713,202 | |||||
Allowance for credit loss | 6,721 | 6,611 | 7,014 | 8,145 | ||
Commercial real estate - non-owner occupied | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 671,663 | |||||
Allowance for credit loss | 4,332 | |||||
Commercial real estate - non-owner occupied | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 30,509 | |||||
Allowance for credit loss | 2,388 | |||||
Commercial real estate - non-owner occupied | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 11,030 | |||||
Allowance for credit loss | 1 | |||||
Construction and land development | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 335,024 | |||||
Individually evaluated for impairment, Loans | 238 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 335,262 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 5,834 | |||||
Allowance for credit loss | 5,834 | 7,574 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 360,824 | |||||
Allowance for credit loss | 4,223 | 4,059 | 4,493 | 4,914 | ||
Construction and land development | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 359,892 | |||||
Allowance for credit loss | 4,221 | |||||
Construction and land development | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 82 | |||||
Construction and land development | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 850 | |||||
Allowance for credit loss | 2 | |||||
Multi-family | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 374,578 | |||||
Individually evaluated for impairment, Loans | 958 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 375,536 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 2,603 | |||||
Allowance for credit loss | 2,603 | 2,151 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 287,865 | |||||
Allowance for credit loss | 1,472 | 1,375 | 1,354 | 1,263 | ||
Multi-family | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 287,298 | |||||
Allowance for credit loss | 1,470 | |||||
Multi-family | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 567 | |||||
Allowance for credit loss | 2 | |||||
One-to-four family residential | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 476,326 | |||||
Individually evaluated for impairment, Loans | 6,116 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 482,442 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 3,705 | |||||
Individually evaluated for impairment, Allowance for loan losses | 372 | |||||
Allowance for credit loss | 4,077 | 4,165 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 338,253 | |||||
Allowance for credit loss | 1,759 | 1,696 | 1,583 | 1,311 | ||
One-to-four family residential | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 325,621 | |||||
Allowance for credit loss | 1,709 | |||||
One-to-four family residential | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 8,399 | |||||
Allowance for credit loss | 44 | |||||
One-to-four family residential | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 4,233 | |||||
Allowance for credit loss | 6 | |||||
Agricultural and farmland | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 259,858 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 259,858 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 2,607 | |||||
Allowance for credit loss | 2,607 | 2,674 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 237,746 | |||||
Allowance for credit loss | 796 | 924 | 842 | 845 | ||
Agricultural and farmland | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 233,118 | |||||
Allowance for credit loss | 796 | |||||
Agricultural and farmland | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 4,033 | |||||
Agricultural and farmland | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 595 | |||||
Municipal, consumer, and other | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Collectively evaluated for impairment, Loans | 203,767 | |||||
Individually evaluated for impairment, Loans | 15,902 | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 219,669 | |||||
Collectively evaluated for impairment, Allowance for loan losses | 5,656 | |||||
Individually evaluated for impairment, Allowance for loan losses | 3,402 | |||||
Allowance for credit loss | $ 9,058 | $ 8,905 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 197,103 | |||||
Allowance for credit loss | 5,890 | $ 5,864 | $ 5,220 | $ 3,178 | ||
Municipal, consumer, and other | Loans Collectively Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 184,579 | |||||
Allowance for credit loss | 2,327 | |||||
Municipal, consumer, and other | Loans Individually Evaluated For Impairment [Member] | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 12,508 | |||||
Allowance for credit loss | 3,562 | |||||
Municipal, consumer, and other | Loans acquired with deteriorated credit quality | ||||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 16 | |||||
Allowance for credit loss | $ 1 |
LOANS AND RELATED ALLOWANCE F_7
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Amortized cost of collateralized loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | $ 2,620,253 | |||||
Amortized cost | $ 3,244,655 | |||||
Allowance for credit loss | 25,333 | $ 24,734 | $ 24,508 | $ 23,936 | ||
Allowance for credit loss | 37,814 | $ 38,776 | ||||
Accrued interest excluded from estimate of credit losses | 13,700 | |||||
Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 37,566 | |||||
Vehicles | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 31 | |||||
Other primary collateral | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 219 | |||||
Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 37,816 | |||||
Allowance for credit loss | 5,049 | |||||
Commercial and industrial | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 266,757 | |||||
Amortized cost | 385,768 | |||||
Allowance for credit loss | 3,279 | 2,981 | 2,491 | 2,440 | ||
Allowance for credit loss | 3,735 | 2,932 | ||||
Commercial and industrial | Other primary collateral | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 174 | |||||
Commercial and industrial | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 174 | |||||
Allowance for credit loss | 5 | |||||
Commercial real estate - owner occupied | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 218,503 | |||||
Amortized cost | 303,522 | |||||
Allowance for credit loss | 1,193 | 1,224 | 1,511 | 1,840 | ||
Allowance for credit loss | 2,362 | 2,535 | ||||
Commercial real estate - owner occupied | Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 251 | |||||
Commercial real estate - owner occupied | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 251 | |||||
Allowance for credit loss | 12 | |||||
Commercial real estate - non-owner occupied | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 713,202 | |||||
Amortized cost | 882,598 | |||||
Allowance for credit loss | 6,721 | 6,611 | 7,014 | 8,145 | ||
Allowance for credit loss | 7,538 | 7,840 | ||||
Commercial real estate - non-owner occupied | Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 14,177 | |||||
Commercial real estate - non-owner occupied | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 14,177 | |||||
Allowance for credit loss | 1,258 | |||||
Construction and land development | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 360,824 | |||||
Amortized cost | 335,262 | |||||
Allowance for credit loss | 4,223 | 4,059 | 4,493 | 4,914 | ||
Allowance for credit loss | 5,834 | 7,574 | ||||
Construction and land development | Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 238 | |||||
Construction and land development | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 238 | |||||
Multi-family | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 287,865 | |||||
Amortized cost | 375,536 | |||||
Allowance for credit loss | 1,472 | 1,375 | 1,354 | 1,263 | ||
Allowance for credit loss | 2,603 | 2,151 | ||||
Multi-family | Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 958 | |||||
Multi-family | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 958 | |||||
One-to-four family residential | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 338,253 | |||||
Amortized cost | 482,442 | |||||
Allowance for credit loss | 1,759 | 1,696 | 1,583 | 1,311 | ||
Allowance for credit loss | 4,077 | 4,165 | ||||
One-to-four family residential | Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 6,116 | |||||
One-to-four family residential | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 6,116 | |||||
Allowance for credit loss | 372 | |||||
Agricultural and farmland | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 237,746 | |||||
Amortized cost | 259,858 | |||||
Allowance for credit loss | 796 | 924 | 842 | 845 | ||
Allowance for credit loss | 2,607 | 2,674 | ||||
Municipal, consumer, and other | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 197,103 | |||||
Amortized cost | 219,669 | |||||
Allowance for credit loss | $ 5,890 | $ 5,864 | $ 5,220 | $ 3,178 | ||
Allowance for credit loss | 9,058 | $ 8,905 | ||||
Municipal, consumer, and other | Real Estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 15,826 | |||||
Municipal, consumer, and other | Vehicles | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 31 | |||||
Municipal, consumer, and other | Other primary collateral | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 45 | |||||
Municipal, consumer, and other | Collateral-dependent loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Amortized cost | 15,902 | |||||
Allowance for credit loss | $ 3,402 |
LOANS AND RELATED ALLOWANCE F_8
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Individually evaluated for impairment by category of loans PREADOPTION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | |
Unpaid Principal Balance | |||
With an allowance recorded | $ 23,893 | ||
With no related allowance | 49,926 | ||
Total loans individually evaluated for impairment | 73,819 | ||
Recorded Investment | |||
With an allowance recorded | 23,780 | ||
With no related allowance | 47,935 | ||
Total loans individually evaluated for impairment | 71,715 | ||
Related Allowance | 6,320 | ||
Average Recorded Investment | |||
With an allowance recorded | $ 24,507 | $ 25,611 | |
With no related allowance | 59,915 | 60,726 | |
Total loans individually evaluated for impairment | 84,422 | 86,337 | |
Interest Income Recognized | |||
With an allowance recorded | 250 | 517 | |
With no related allowance | 783 | 1,387 | |
Total loans individually evaluated for impairment | 1,033 | 1,904 | |
Commercial and industrial | |||
Unpaid Principal Balance | |||
With an allowance recorded | 268 | ||
With no related allowance | 4,564 | ||
Total loans individually evaluated for impairment | 4,832 | ||
Recorded Investment | |||
With an allowance recorded | 254 | ||
With no related allowance | 4,564 | ||
Total loans individually evaluated for impairment | 4,818 | ||
Related Allowance | 158 | ||
Average Recorded Investment | |||
With an allowance recorded | 267 | 280 | |
With no related allowance | 15,156 | 17,316 | |
Total loans individually evaluated for impairment | 15,423 | 17,596 | |
Interest Income Recognized | |||
With an allowance recorded | 4 | 8 | |
With no related allowance | 156 | 356 | |
Total loans individually evaluated for impairment | 160 | 364 | |
Commercial real estate - owner occupied | |||
Unpaid Principal Balance | |||
With an allowance recorded | 635 | ||
With no related allowance | 10,912 | ||
Total loans individually evaluated for impairment | 11,547 | ||
Recorded Investment | |||
With an allowance recorded | 610 | ||
With no related allowance | 10,756 | ||
Total loans individually evaluated for impairment | 11,366 | ||
Related Allowance | 168 | ||
Average Recorded Investment | |||
With an allowance recorded | 745 | 1,580 | |
With no related allowance | 11,887 | 11,460 | |
Total loans individually evaluated for impairment | 12,632 | 13,040 | |
Interest Income Recognized | |||
With an allowance recorded | 11 | 44 | |
With no related allowance | 141 | 247 | |
Total loans individually evaluated for impairment | 152 | 291 | |
Commercial real estate - non-owner occupied | |||
Unpaid Principal Balance | |||
With an allowance recorded | 14,269 | ||
With no related allowance | 16,327 | ||
Total loans individually evaluated for impairment | 30,596 | ||
Recorded Investment | |||
With an allowance recorded | 14,261 | ||
With no related allowance | 16,248 | ||
Total loans individually evaluated for impairment | 30,509 | ||
Related Allowance | 2,388 | ||
Average Recorded Investment | |||
With an allowance recorded | 14,603 | 14,728 | |
With no related allowance | 17,947 | 16,728 | |
Total loans individually evaluated for impairment | 32,550 | 31,456 | |
Interest Income Recognized | |||
With an allowance recorded | 185 | 371 | |
With no related allowance | 340 | 538 | |
Total loans individually evaluated for impairment | 525 | 909 | |
Construction and land development | |||
Unpaid Principal Balance | |||
With no related allowance | 92 | ||
Total loans individually evaluated for impairment | 92 | ||
Recorded Investment | |||
With no related allowance | 82 | ||
Total loans individually evaluated for impairment | 82 | ||
Average Recorded Investment | |||
With no related allowance | 2,012 | 2,014 | |
Total loans individually evaluated for impairment | 2,012 | 2,014 | |
Interest Income Recognized | |||
With no related allowance | 26 | 48 | |
Total loans individually evaluated for impairment | 26 | 48 | |
One-to-four family residential | |||
Unpaid Principal Balance | |||
With an allowance recorded | 569 | ||
With no related allowance | 9,181 | ||
Total loans individually evaluated for impairment | 9,750 | ||
Recorded Investment | |||
With an allowance recorded | 524 | ||
With no related allowance | 7,875 | ||
Total loans individually evaluated for impairment | 8,399 | ||
Related Allowance | 44 | ||
Average Recorded Investment | |||
With an allowance recorded | 548 | 597 | |
With no related allowance | 8,181 | 8,453 | |
Total loans individually evaluated for impairment | 8,729 | 9,050 | |
Interest Income Recognized | |||
With an allowance recorded | 4 | 9 | |
With no related allowance | 84 | 141 | |
Total loans individually evaluated for impairment | 88 | 150 | |
Agricultural and farmland | |||
Unpaid Principal Balance | |||
With no related allowance | 4,440 | ||
Total loans individually evaluated for impairment | 4,440 | ||
Recorded Investment | |||
With no related allowance | 4,033 | ||
Total loans individually evaluated for impairment | 4,033 | ||
Average Recorded Investment | |||
With no related allowance | 252 | 244 | |
Total loans individually evaluated for impairment | 252 | 244 | |
Interest Income Recognized | |||
With no related allowance | 3 | 3 | |
Total loans individually evaluated for impairment | 3 | 3 | |
Municipal, consumer, and other | |||
Unpaid Principal Balance | |||
With an allowance recorded | 8,152 | ||
With no related allowance | 4,410 | ||
Total loans individually evaluated for impairment | 12,562 | ||
Recorded Investment | |||
With an allowance recorded | 8,131 | ||
With no related allowance | 4,377 | ||
Total loans individually evaluated for impairment | 12,508 | ||
Related Allowance | $ 3,562 | ||
Average Recorded Investment | |||
With an allowance recorded | 8,344 | 8,426 | |
With no related allowance | 4,480 | 4,511 | |
Total loans individually evaluated for impairment | 12,824 | 12,937 | |
Interest Income Recognized | |||
With an allowance recorded | 46 | 85 | |
With no related allowance | 33 | 54 | |
Total loans individually evaluated for impairment | $ 79 | $ 139 |
LOANS AND RELATED ALLOWANCE F_9
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Accretable Yield For Loans PREADOPTION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Changes in accretable yield for loans acquired with deteriorated credit quality | ||
Beginning balance | $ 484 | $ 413 |
Reclassification from non-accretable difference | 100 | 217 |
Accretion income | (47) | (93) |
Ending balance | $ 537 | $ 537 |
LOANS AND RELATED ALLOWANCE _10
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Past Due Status (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | $ 7,534,000 | |
Nonaccrual | 7,534,000 | $ 2,155,000 |
Loans, before allowance for credit losses | 3,244,655,000 | |
Loans, before allowance for credit losses | 2,620,253,000 | |
Internal Review Threshold | 750,000 | |
Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 2,213,000 | |
Loans, before allowance for credit losses | 1,346,000 | |
Current | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,000 | |
Loans, before allowance for credit losses | 146,000 | |
Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,234,907,000 | |
Loans, before allowance for credit losses | 2,616,606,000 | |
Commercial and industrial | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 174,000 | |
Nonaccrual | 219,000 | |
Loans, before allowance for credit losses | 385,768,000 | |
Loans, before allowance for credit losses | 266,757,000 | |
Commercial and industrial | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 90,000 | |
Loans, before allowance for credit losses | 17,000 | |
Commercial and industrial | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 385,504,000 | |
Loans, before allowance for credit losses | 266,521,000 | |
Commercial real estate - owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 251,000 | |
Nonaccrual | 74,000 | |
Loans, before allowance for credit losses | 303,522,000 | |
Loans, before allowance for credit losses | 218,503,000 | |
Commercial real estate - owner occupied | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 126,000 | |
Loans, before allowance for credit losses | 187,000 | |
Commercial real estate - owner occupied | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 303,145,000 | |
Loans, before allowance for credit losses | 218,242,000 | |
Commercial real estate - non-owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 390,000 | |
Nonaccrual | 171,000 | |
Loans, before allowance for credit losses | 882,598,000 | |
Loans, before allowance for credit losses | 713,202,000 | |
Commercial real estate - non-owner occupied | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 882,208,000 | |
Loans, before allowance for credit losses | 713,031,000 | |
Construction and land development | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 238,000 | |
Loans, before allowance for credit losses | 335,262,000 | |
Loans, before allowance for credit losses | 360,824,000 | |
Construction and land development | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 61,000 | |
Construction and land development | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 335,024,000 | |
Loans, before allowance for credit losses | 360,763,000 | |
Multi-family | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 958,000 | |
Loans, before allowance for credit losses | 375,536,000 | |
Loans, before allowance for credit losses | 287,865,000 | |
Multi-family | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 90,000 | |
Loans, before allowance for credit losses | 11,000 | |
Multi-family | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 374,488,000 | |
Loans, before allowance for credit losses | 287,854,000 | |
One-to-four family residential | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 5,447,000 | |
Nonaccrual | 1,638,000 | |
Loans, before allowance for credit losses | 482,442,000 | |
Loans, before allowance for credit losses | 338,253,000 | |
One-to-four family residential | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,522,000 | |
Loans, before allowance for credit losses | 894,000 | |
One-to-four family residential | Current | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 145,000 | |
One-to-four family residential | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 475,473,000 | |
Loans, before allowance for credit losses | 335,576,000 | |
Agricultural and farmland | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 259,858,000 | |
Loans, before allowance for credit losses | 237,746,000 | |
Agricultural and farmland | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 128,000 | |
Loans, before allowance for credit losses | 19,000 | |
Agricultural and farmland | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 259,730,000 | |
Loans, before allowance for credit losses | 237,727,000 | |
Municipal, consumer, and other | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Nonaccrual | 76,000 | |
Nonaccrual | 53,000 | |
Loans, before allowance for credit losses | 219,669,000 | |
Loans, before allowance for credit losses | 197,103,000 | |
Municipal, consumer, and other | Current | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 257,000 | |
Loans, before allowance for credit losses | 157,000 | |
Municipal, consumer, and other | Current | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,000 | |
Loans, before allowance for credit losses | 1,000 | |
Municipal, consumer, and other | Current | Financial Asset, Not Past Due [Member] | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 219,335,000 | |
Loans, before allowance for credit losses | $ 196,892,000 |
LOANS AND RELATED ALLOWANCE _11
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Non-accrual loans (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Financing receivable, nonaccrual | |
Nonaccrual With Allowance for Credit Losses | $ 550 |
Nonaccrual With No Allowance for Credit Losses | 6,984 |
Total Nonaccrual | 7,534 |
Commercial and industrial | |
Financing receivable, nonaccrual | |
Nonaccrual With Allowance for Credit Losses | 128 |
Nonaccrual With No Allowance for Credit Losses | 46 |
Total Nonaccrual | 174 |
Commercial real estate - owner occupied | |
Financing receivable, nonaccrual | |
Nonaccrual With Allowance for Credit Losses | 74 |
Nonaccrual With No Allowance for Credit Losses | 177 |
Total Nonaccrual | 251 |
Commercial real estate - non-owner occupied | |
Financing receivable, nonaccrual | |
Nonaccrual With Allowance for Credit Losses | 219 |
Nonaccrual With No Allowance for Credit Losses | 171 |
Total Nonaccrual | 390 |
Construction and land development | |
Financing receivable, nonaccrual | |
Nonaccrual With No Allowance for Credit Losses | 238 |
Total Nonaccrual | 238 |
Multi-family | |
Financing receivable, nonaccrual | |
Nonaccrual With No Allowance for Credit Losses | 958 |
Total Nonaccrual | 958 |
One-to-four family residential | |
Financing receivable, nonaccrual | |
Nonaccrual With Allowance for Credit Losses | 129 |
Nonaccrual With No Allowance for Credit Losses | 5,318 |
Total Nonaccrual | 5,447 |
Municipal, consumer, and other | |
Financing receivable, nonaccrual | |
Nonaccrual With No Allowance for Credit Losses | 76 |
Total Nonaccrual | $ 76 |
LOANS AND RELATED ALLOWANCE _12
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 3,244,655 | |
Loans, before allowance for credit losses | $ 2,620,253 | |
Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,078,457 | |
Loans, before allowance for credit losses | 2,479,488 | |
Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 93,442 | |
Loans, before allowance for credit losses | 66,934 | |
Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 72,756 | |
Loans, before allowance for credit losses | 73,831 | |
Commercial and industrial | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 385,768 | |
Loans, before allowance for credit losses | 266,757 | |
Commercial and industrial | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 378,223 | |
Loans, before allowance for credit losses | 255,309 | |
Commercial and industrial | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,900 | |
Loans, before allowance for credit losses | 6,630 | |
Commercial and industrial | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,645 | |
Loans, before allowance for credit losses | 4,818 | |
Commercial real estate - owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 303,522 | |
Loans, before allowance for credit losses | 218,503 | |
Commercial real estate - owner occupied | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 281,115 | |
Loans, before allowance for credit losses | 198,546 | |
Commercial real estate - owner occupied | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 11,660 | |
Loans, before allowance for credit losses | 10,105 | |
Commercial real estate - owner occupied | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 10,747 | |
Loans, before allowance for credit losses | 9,852 | |
Commercial real estate - non-owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 882,598 | |
Loans, before allowance for credit losses | 713,202 | |
Commercial real estate - non-owner occupied | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 825,108 | |
Loans, before allowance for credit losses | 652,691 | |
Commercial real estate - non-owner occupied | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 33,361 | |
Loans, before allowance for credit losses | 27,282 | |
Commercial real estate - non-owner occupied | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 24,129 | |
Loans, before allowance for credit losses | 33,229 | |
Construction and land development | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 335,262 | |
Loans, before allowance for credit losses | 360,824 | |
Construction and land development | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 329,877 | |
Loans, before allowance for credit losses | 358,215 | |
Construction and land development | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 5,055 | |
Loans, before allowance for credit losses | 2,527 | |
Construction and land development | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 330 | |
Loans, before allowance for credit losses | 82 | |
Multi-family | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 375,536 | |
Loans, before allowance for credit losses | 287,865 | |
Multi-family | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 349,513 | |
Loans, before allowance for credit losses | 283,682 | |
Multi-family | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 24,749 | |
Loans, before allowance for credit losses | 4,183 | |
Multi-family | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,274 | |
One-to-four family residential | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 482,442 | |
Loans, before allowance for credit losses | 338,253 | |
One-to-four family residential | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 461,525 | |
Loans, before allowance for credit losses | 323,632 | |
One-to-four family residential | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 7,654 | |
Loans, before allowance for credit losses | 5,907 | |
One-to-four family residential | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 13,263 | |
Loans, before allowance for credit losses | 8,714 | |
Agricultural and farmland | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 259,858 | |
Loans, before allowance for credit losses | 237,746 | |
Agricultural and farmland | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 251,388 | |
Loans, before allowance for credit losses | 223,114 | |
Agricultural and farmland | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 5,142 | |
Loans, before allowance for credit losses | 10,004 | |
Agricultural and farmland | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,328 | |
Loans, before allowance for credit losses | 4,628 | |
Municipal, consumer, and other | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 219,669 | |
Loans, before allowance for credit losses | 197,103 | |
Municipal, consumer, and other | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 201,708 | |
Loans, before allowance for credit losses | 184,299 | |
Municipal, consumer, and other | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,921 | |
Loans, before allowance for credit losses | 296 | |
Municipal, consumer, and other | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 16,040 | |
Loans, before allowance for credit losses | $ 12,508 |
LOANS AND RELATED ALLOWANCE _13
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Loans risk-rated by origination year (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | $ 402,854 |
2022 | 843,530 |
2021 | 700,374 |
2020 | 393,308 |
2019 | 217,384 |
Prior | 289,546 |
Revolving Loans | 369,491 |
Revolving Loans Converted to Term | 28,168 |
Financing Receivable, before Allowance for Credit Loss, Total | 3,244,655 |
Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 384,415 |
2022 | 823,210 |
2021 | 684,215 |
2020 | 377,231 |
2019 | 200,970 |
Prior | 238,549 |
Revolving Loans | 349,865 |
Revolving Loans Converted to Term | 20,002 |
Financing Receivable, before Allowance for Credit Loss, Total | 3,078,457 |
Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 6,213 |
2022 | 15,820 |
2021 | 11,534 |
2020 | 11,339 |
2019 | 11,868 |
Prior | 17,170 |
Revolving Loans | 17,490 |
Revolving Loans Converted to Term | 2,008 |
Financing Receivable, before Allowance for Credit Loss, Total | 93,442 |
Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 12,226 |
2022 | 4,500 |
2021 | 4,625 |
2020 | 4,738 |
2019 | 4,546 |
Prior | 33,827 |
Revolving Loans | 2,136 |
Revolving Loans Converted to Term | 6,158 |
Financing Receivable, before Allowance for Credit Loss, Total | 72,756 |
Commercial and industrial | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 69,203 |
2022 | 64,652 |
2021 | 27,992 |
2020 | 31,722 |
2019 | 7,243 |
Prior | 10,925 |
Revolving Loans | 167,238 |
Revolving Loans Converted to Term | 6,793 |
Financing Receivable, before Allowance for Credit Loss, Total | 385,768 |
Commercial and industrial | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 69,081 |
2022 | 63,617 |
2021 | 27,992 |
2020 | 31,141 |
2019 | 6,418 |
Prior | 10,665 |
Revolving Loans | 166,040 |
Revolving Loans Converted to Term | 3,269 |
Financing Receivable, before Allowance for Credit Loss, Total | 378,223 |
Commercial and industrial | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 117 |
2022 | 934 |
2020 | 535 |
2019 | 825 |
Prior | 211 |
Revolving Loans | 581 |
Revolving Loans Converted to Term | 697 |
Financing Receivable, before Allowance for Credit Loss, Total | 3,900 |
Commercial and industrial | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 5 |
2022 | 101 |
2020 | 46 |
Prior | 49 |
Revolving Loans | 617 |
Revolving Loans Converted to Term | 2,827 |
Financing Receivable, before Allowance for Credit Loss, Total | 3,645 |
Commercial real estate - owner occupied | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 20,245 |
2022 | 67,820 |
2021 | 67,481 |
2020 | 59,973 |
2019 | 37,814 |
Prior | 40,560 |
Revolving Loans | 9,629 |
Financing Receivable, before Allowance for Credit Loss, Total | 303,522 |
Commercial real estate - owner occupied | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 19,573 |
2022 | 63,767 |
2021 | 61,278 |
2020 | 59,353 |
2019 | 34,394 |
Prior | 35,565 |
Revolving Loans | 7,185 |
Financing Receivable, before Allowance for Credit Loss, Total | 281,115 |
Commercial real estate - owner occupied | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 672 |
2022 | 2,365 |
2021 | 2,773 |
2020 | 358 |
2019 | 2,747 |
Prior | 1,795 |
Revolving Loans | 950 |
Financing Receivable, before Allowance for Credit Loss, Total | 11,660 |
Commercial real estate - owner occupied | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 1,688 |
2021 | 3,430 |
2020 | 262 |
2019 | 673 |
Prior | 3,200 |
Revolving Loans | 1,494 |
Financing Receivable, before Allowance for Credit Loss, Total | 10,747 |
Commercial real estate - non-owner occupied | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 66,081 |
2022 | 260,529 |
2021 | 271,527 |
2020 | 98,503 |
2019 | 96,774 |
Prior | 61,778 |
Revolving Loans | 23,301 |
Revolving Loans Converted to Term | 4,105 |
Financing Receivable, before Allowance for Credit Loss, Total | 882,598 |
Commercial real estate - non-owner occupied | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 53,549 |
2022 | 260,402 |
2021 | 264,052 |
2020 | 98,430 |
2019 | 86,880 |
Prior | 48,439 |
Revolving Loans | 9,567 |
Revolving Loans Converted to Term | 3,789 |
Financing Receivable, before Allowance for Credit Loss, Total | 825,108 |
Commercial real estate - non-owner occupied | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 758 |
2021 | 7,475 |
2019 | 7,379 |
Prior | 3,870 |
Revolving Loans | 13,734 |
Revolving Loans Converted to Term | 145 |
Financing Receivable, before Allowance for Credit Loss, Total | 33,361 |
Commercial real estate - non-owner occupied | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 11,774 |
2022 | 127 |
2020 | 73 |
2019 | 2,515 |
Prior | 9,469 |
Revolving Loans Converted to Term | 171 |
Financing Receivable, before Allowance for Credit Loss, Total | 24,129 |
Construction and land development | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 82,477 |
2022 | 157,657 |
2021 | 68,926 |
2020 | 5,676 |
2019 | 3,284 |
Prior | 2,120 |
Revolving Loans | 9,051 |
Revolving Loans Converted to Term | 6,071 |
Financing Receivable, before Allowance for Credit Loss, Total | 335,262 |
Construction and land development | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 82,321 |
2022 | 154,790 |
2021 | 68,926 |
2020 | 5,676 |
2019 | 3,284 |
Prior | 1,791 |
Revolving Loans | 7,868 |
Revolving Loans Converted to Term | 5,221 |
Financing Receivable, before Allowance for Credit Loss, Total | 329,877 |
Construction and land development | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 156 |
2022 | 2,867 |
Prior | 12 |
Revolving Loans | 1,183 |
Revolving Loans Converted to Term | 837 |
Financing Receivable, before Allowance for Credit Loss, Total | 5,055 |
Construction and land development | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
Prior | 317 |
Revolving Loans Converted to Term | 13 |
Financing Receivable, before Allowance for Credit Loss, Total | 330 |
Multi-family | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 37,721 |
2022 | 87,199 |
2021 | 105,466 |
2020 | 66,902 |
2019 | 35,473 |
Prior | 35,957 |
Revolving Loans | 6,297 |
Revolving Loans Converted to Term | 521 |
Financing Receivable, before Allowance for Credit Loss, Total | 375,536 |
Multi-family | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 35,047 |
2022 | 79,926 |
2021 | 105,151 |
2020 | 58,069 |
2019 | 34,925 |
Prior | 29,929 |
Revolving Loans | 5,954 |
Revolving Loans Converted to Term | 512 |
Financing Receivable, before Allowance for Credit Loss, Total | 349,513 |
Multi-family | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 2,674 |
2022 | 7,273 |
2020 | 8,833 |
2019 | 59 |
Prior | 5,558 |
Revolving Loans | 343 |
Revolving Loans Converted to Term | 9 |
Financing Receivable, before Allowance for Credit Loss, Total | 24,749 |
Multi-family | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2021 | 315 |
2019 | 489 |
Prior | 470 |
Financing Receivable, before Allowance for Credit Loss, Total | 1,274 |
One-to-four family residential | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 70,481 |
2022 | 93,174 |
2021 | 90,658 |
2020 | 70,973 |
2019 | 25,493 |
Prior | 65,287 |
Revolving Loans | 58,018 |
Revolving Loans Converted to Term | 8,358 |
Financing Receivable, before Allowance for Credit Loss, Total | 482,442 |
One-to-four family residential | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 69,055 |
2022 | 90,014 |
2021 | 88,637 |
2020 | 69,356 |
2019 | 23,957 |
Prior | 57,917 |
Revolving Loans | 57,698 |
Revolving Loans Converted to Term | 4,891 |
Financing Receivable, before Allowance for Credit Loss, Total | 461,525 |
One-to-four family residential | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 1,011 |
2022 | 670 |
2021 | 1,164 |
2020 | 572 |
2019 | 713 |
Prior | 2,909 |
Revolving Loans | 295 |
Revolving Loans Converted to Term | 320 |
Financing Receivable, before Allowance for Credit Loss, Total | 7,654 |
One-to-four family residential | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 415 |
2022 | 2,490 |
2021 | 857 |
2020 | 1,045 |
2019 | 823 |
Prior | 4,461 |
Revolving Loans | 25 |
Revolving Loans Converted to Term | 3,147 |
Financing Receivable, before Allowance for Credit Loss, Total | 13,263 |
Agricultural and farmland | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 25,217 |
2022 | 41,811 |
2021 | 39,339 |
2020 | 44,385 |
2019 | 9,464 |
Prior | 10,154 |
Revolving Loans | 87,170 |
Revolving Loans Converted to Term | 2,318 |
Financing Receivable, before Allowance for Credit Loss, Total | 259,858 |
Agricultural and farmland | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 24,392 |
2022 | 40,120 |
2021 | 39,227 |
2020 | 40,052 |
2019 | 9,319 |
Prior | 9,194 |
Revolving Loans | 86,766 |
Revolving Loans Converted to Term | 2,318 |
Financing Receivable, before Allowance for Credit Loss, Total | 251,388 |
Agricultural and farmland | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 825 |
2022 | 1,691 |
2021 | 96 |
2020 | 1,021 |
2019 | 145 |
Prior | 960 |
Revolving Loans | 404 |
Financing Receivable, before Allowance for Credit Loss, Total | 5,142 |
Agricultural and farmland | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2021 | 16 |
2020 | 3,312 |
Financing Receivable, before Allowance for Credit Loss, Total | 3,328 |
Municipal, consumer, and other | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 31,429 |
2022 | 70,688 |
2021 | 28,985 |
2020 | 15,174 |
2019 | 1,839 |
Prior | 62,765 |
Revolving Loans | 8,787 |
Revolving Loans Converted to Term | 2 |
Financing Receivable, before Allowance for Credit Loss, Total | 219,669 |
Municipal, consumer, and other | Pass | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 31,397 |
2022 | 70,574 |
2021 | 28,952 |
2020 | 15,154 |
2019 | 1,793 |
Prior | 45,049 |
Revolving Loans | 8,787 |
Revolving Loans Converted to Term | 2 |
Financing Receivable, before Allowance for Credit Loss, Total | 201,708 |
Municipal, consumer, and other | Pass-Watch | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2022 | 20 |
2021 | 26 |
2020 | 20 |
Prior | 1,855 |
Financing Receivable, before Allowance for Credit Loss, Total | 1,921 |
Municipal, consumer, and other | Substandard | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | |
2023 | 32 |
2022 | 94 |
2021 | 7 |
2019 | 46 |
Prior | 15,861 |
Financing Receivable, before Allowance for Credit Loss, Total | $ 16,040 |
LOANS AND RELATED ALLOWANCE _14
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings, Pledged loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 loan | Jun. 30, 2022 loan | Jun. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Number of Loans | loan | 0 | |||
Number of Loans | loan | 0 | 0 | ||
Troubled debt restructurings | $ 3,000 | |||
Loans | $ 3,206,841 | |||
Loans | 2,594,920 | |||
Pledged assets | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||||
Loans | $ 1,040,000 | |||
Loans | $ 892,100 |
LOAN SERVICING - Mortgage Servi
LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | $ 10,147 | ||||
Ending balance | $ 20,133 | 20,133 | $ 10,147 | ||
Mortgage Loans | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Beginning balance | 19,992 | $ 9,723 | 10,147 | $ 7,994 | 7,994 |
Acquired | 10,469 | ||||
Capitalized servicing rights | 170 | 136 | 299 | 307 | |
Attributable to payments and principal reductions | (559) | (379) | (990) | (686) | |
Attributable to changes in valuation inputs and assumptions | 530 | 609 | 208 | 2,474 | |
Total fair value adjustment | (29) | 230 | (782) | 1,788 | |
Ending balance | $ 20,133 | $ 10,089 | 20,133 | $ 10,089 | 10,147 |
Mortgage loans serviced for others | $ 1,720,000 | $ 955,800 |
FORECLOSED ASSETS - Activity (D
FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
FORECLOSED ASSETS | ||||
Beginning balance | $ 3,356 | $ 3,043 | $ 3,030 | $ 3,278 |
Acquired | 271 | |||
Transfers from loans | 65 | 8 | 170 | 27 |
Proceeds from sales | (244) | (153) | (284) | (447) |
Net gain (loss) on sales | 48 | (7) | 68 | 98 |
Direct write-downs | (145) | (175) | (65) | |
Ending balance | $ 3,080 | $ 2,891 | $ 3,080 | $ 2,891 |
FORECLOSED ASSETS - Gains (loss
FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
FORECLOSED ASSETS | ||||
Direct write-downs | $ (145) | $ (175) | $ (65) | |
Net gain (loss) on sales | 48 | $ (7) | 68 | 98 |
Gains (losses) on foreclosed assets | $ (97) | $ (7) | $ (107) | $ 33 |
FORECLOSED ASSETS - Additional
FORECLOSED ASSETS - Additional Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
FORECLOSED ASSETS | ||||||
Carrying value of foreclosed asset | $ 3,080 | $ 3,030 | $ 3,356 | $ 2,891 | $ 3,043 | $ 3,278 |
One-to-four family residential real estate property | ||||||
FORECLOSED ASSETS | ||||||
Carrying value of foreclosed asset | $ 200 | $ 20 | ||||
Number of loans in the process of foreclosure | loan | 16 | 4 | ||||
Loan amount in the process of foreclosure | $ 1,400 | $ 200 |
DEPOSITS - Interest bearing Dep
DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Noninterest-bearing deposits | $ 1,125,823 | $ 994,954 |
Interest-bearing demand | 1,181,187 | 1,139,150 |
Money market | 730,652 | 555,425 |
Savings | 657,506 | 634,527 |
Time | 469,355 | 262,968 |
Total interest-bearing deposits | 3,038,700 | 2,592,070 |
Total deposits | $ 4,164,523 | $ 3,587,024 |
DEPOSITS - Interest bearing D_2
DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Brokered deposits | $ 0 | |
Reciprocal transaction deposits, Interest bearing demand deposits | $ 41.6 | |
Reciprocal transaction deposits, Money market deposits | 11.7 | 1.7 |
Reciprocal transaction deposits, Time deposits | 38.8 | 1.6 |
Time deposits in denominations of $250,000 or more | 78.7 | 27.2 |
Time deposits in denominations of $100,000 or more | 236.8 | $ 92.6 |
Money Market Funds [Member] | ||
DEPOSITS | ||
Brokered deposits | 50 | |
Bank Time Deposits [Member] | ||
DEPOSITS | ||
Brokered deposits | $ 1 |
DEPOSITS - Interest expense on
DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
DEPOSITS | ||||
Interest-bearing demand | $ 683 | $ 144 | $ 1,141 | $ 286 |
Money market | 1,516 | 110 | 2,451 | 231 |
Savings | 189 | 52 | 367 | 102 |
Time | 1,935 | 200 | 2,738 | 456 |
Total interest expense on deposits | $ 4,323 | $ 506 | $ 6,697 | $ 1,075 |
JUNIOR SUBORDINATED DEBENTURE_3
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Carrying Values (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
SUBORDINATED NOTES | ||
Number of subsidiary business trusts | item | 8 | |
Junior subordinated debentures | $ 52,760 | $ 37,780 |
Town and Country | ||
SUBORDINATED NOTES | ||
Number of subsidiary business trusts acquired | item | 3 | |
Junior Subordinated Debentures Issued | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | $ 53,714 | |
Junior subordinated debentures | 52,760 | 37,780 |
Junior Subordinated Debentures Issued | Heartland Bancorp, Inc. Capital Trust B | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 10,310 | |
Junior subordinated debentures | 10,310 | 10,310 |
Junior Subordinated Debentures Issued | Heartland Bancorp, Inc. Capital Trust C | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 10,310 | |
Junior subordinated debentures | 10,310 | 10,310 |
Junior Subordinated Debentures Issued | Heartland Bancorp, Inc. Capital Trust D | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 5,155 | |
Junior subordinated debentures | 5,155 | 5,155 |
Junior Subordinated Debentures Issued | FFBI Capital Trust I | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 7,217 | |
Junior subordinated debentures | 7,217 | 7,217 |
Junior Subordinated Debentures Issued | National Bancorp Statutory Trust I | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 5,773 | |
Junior subordinated debentures | 4,821 | $ 4,788 |
Junior Subordinated Debentures Issued | Town And Country Statutory Trust II [Member] | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 4,124 | |
Junior subordinated debentures | 4,415 | |
Junior Subordinated Debentures Issued | Town And Country Statutory Trust III [Member] | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 7,732 | |
Junior subordinated debentures | 7,572 | |
Junior Subordinated Debentures Issued | West Plains Investors Statutory Trust I | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 3,093 | |
Junior subordinated debentures | $ 2,960 |
JUNIOR SUBORDINATED DEBENTURE_4
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Interest rate and maturities (Details) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Heartland Bancorp, Inc. Capital Trust B | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 2.75% | |
Interest Rate | 8.01% | 6.83% |
Heartland Bancorp, Inc. Capital Trust C | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.53% | |
Interest Rate | 7.08% | 6.30% |
Heartland Bancorp, Inc. Capital Trust D | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.35% | |
Interest Rate | 6.90% | 6.12% |
FFBI Capital Trust I | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 2.80% | |
Interest Rate | 8.06% | 6.88% |
National Bancorp Statutory Trust I | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 2.90% | |
Interest Rate | 8.45% | 7.67% |
Town And Country Statutory Trust II [Member] | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 2.79% | |
Interest Rate | 8.30% | |
Town And Country Statutory Trust III [Member] | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.68% | |
Interest Rate | 7.23% | |
WPI Statutory Trust I [Member] | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.45% | |
Interest Rate | 7% |
JUNIOR SUBORDINATED DEBENTURE_5
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Narrative (Details) - period | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | ||
Maximum deferred interest period quarters | 20 | |
Period shorten the maturity date from the event | 90 days | |
Trust preferred securities qualified as Tier 1 capital | 100% | 100% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Cash pledged | $ 0.6 | $ 0.6 |
Debt Securities, Pledged Status [Extensible Enumeration] | Asset Pledged as Collateral [Member] | Asset Pledged as Collateral [Member] |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated - Interest rate swap - Cash flow hedge - Other assets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Fair value recorded in other assets | $ 587 | $ 629 |
Derivative asset notional amount | $ 17,000 | $ 17,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flow hedge | Subordinated debentures interest expense | ||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss) | $ 109 | $ (67) | $ 203 | $ (163) |
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 | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Gross gains | $ 1,703 | $ 4,681 | $ 4,440 | $ 10,094 | |
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | |
Gross losses | $ (1,703) | $ (4,681) | $ (4,440) | $ (10,094) | |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | |
Other assets | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Derivative asset notional amount | $ 105,954 | $ 105,954 | $ 106,995 | ||
Derivative financial assets fair value | 8,053 | 8,053 | 6,981 | ||
Other assets | Financial Institutions Borrower | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Derivative asset notional amount | 105,954 | 105,954 | 106,995 | ||
Derivative financial assets fair value | 8,053 | 8,053 | 6,981 | ||
Other liabilities | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Derivative liability notional amount | 105,954 | 105,954 | 106,995 | ||
Derivative financial liabilities fair value | (8,053) | (8,053) | (6,981) | ||
Other liabilities | Commercial Borrower | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Derivative liability notional amount | 105,954 | 105,954 | 106,995 | ||
Derivative financial liabilities fair value | $ (8,053) | $ (8,053) | $ (6,981) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance | $ 450,098 | $ 383,155 | $ 373,632 | $ 411,881 |
Other comprehensive income (loss), before tax | (11,871) | (23,386) | 1,535 | (75,937) |
Income tax (benefit) expense | (3,384) | (6,666) | 438 | (21,646) |
Other comprehensive income (loss), after tax | (8,487) | (16,720) | 1,097 | (54,291) |
Balance | 450,852 | 373,809 | 450,852 | 373,809 |
Accumulated Other Comprehensive Income (Loss) | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance | (62,175) | (36,100) | (71,759) | 1,471 |
Other comprehensive income (loss) before reclassifications | (12,437) | (24,002) | (1,034) | (76,830) |
Reclassifications | 566 | 616 | 2,569 | 893 |
Other comprehensive income (loss), before tax | (11,871) | (23,386) | 1,535 | (75,937) |
Income tax (benefit) expense | (3,384) | (6,666) | 438 | (21,646) |
Other comprehensive income (loss), after tax | (8,487) | (16,720) | 1,097 | (54,291) |
Balance | (70,662) | (52,820) | (70,662) | (52,820) |
Unrealized gains (losses) on available-for-sale securities | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance | (52,668) | (24,794) | (61,998) | 5,736 |
Transfer from available-for-sale to held-to-maturity | 7,664 | |||
Other comprehensive income (loss) before reclassifications | (12,638) | (24,151) | (1,195) | (77,573) |
Reclassifications | 200 | 1,807 | ||
Other comprehensive income (loss), before tax | (12,438) | (24,151) | 612 | (77,573) |
Income tax (benefit) expense | (3,546) | (6,884) | 174 | (22,112) |
Other comprehensive income (loss), after tax | (8,892) | (17,267) | 438 | (55,461) |
Balance | (61,560) | (42,061) | (61,560) | (42,061) |
Unrealized gains (losses) on held-to-maturity securities | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance | (9,596) | (11,048) | (9,946) | (3,514) |
Transfer from available-for-sale to held-to-maturity | (7,664) | |||
Reclassifications | 475 | 549 | 965 | 730 |
Other comprehensive income (loss), before tax | 475 | 549 | 965 | 730 |
Income tax (benefit) expense | 135 | 157 | 275 | 208 |
Other comprehensive income (loss), after tax | 340 | 392 | 690 | 522 |
Balance | (9,256) | (10,656) | (9,256) | (10,656) |
Derivatives | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance | 89 | (258) | 185 | (751) |
Other comprehensive income (loss) before reclassifications | 201 | 149 | 161 | 743 |
Reclassifications | (109) | 67 | (203) | 163 |
Other comprehensive income (loss), before tax | 92 | 216 | (42) | 906 |
Income tax (benefit) expense | 27 | 61 | (11) | 258 |
Other comprehensive income (loss), after tax | 65 | 155 | (31) | 648 |
Balance | 154 | $ (103) | 154 | $ (103) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance | $ (6,922) | $ (6,922) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income | $ 18,473 | $ 14,085 | $ 27,681 | $ 27,689 |
Earnings allocated to participating securities | (11) | (17) | (16) | (34) |
Numerator for earnings per share - basic | $ 18,462 | $ 14,068 | $ 27,665 | $ 27,655 |
Denominator: | ||||
Weighted average common shares outstanding | 31,980,133 | 28,891,202 | 31,481,439 | 28,938,634 |
Dilutive effect of outstanding restricted stock units | 99,850 | 53,674 | 84,981 | 48,688 |
Weighted average common shares outstanding, including all dilutive potential shares | 32,079,983 | 28,944,876 | 31,566,420 | 28,987,322 |
Earnings per share - Basic | $ 0.58 | $ 0.49 | $ 0.88 | $ 0.96 |
Earnings per share - Diluted | $ 0.58 | $ 0.49 | $ 0.88 | $ 0.95 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2022 | Jun. 30, 2023 USD ($) item | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) item installment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 09, 2019 shares | |
STOCK-BASED COMPENSATION PLANS | |||||||
Total stock-based compensation expense | $ 387 | $ 359 | $ 905 | $ 1,237 | |||
Vesting percentage of unvested restricted stock units and performance restricted stock units, if retirement eligibility requirements are met | 100% | ||||||
Accelerated stock-based compensation expense | 600 | ||||||
Restricted Stock Units | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Total stock-based compensation expense | $ 317 | 234 | $ 594 | 842 | |||
Number of shares participant is entitled to receive | item | 1 | 1 | |||||
Fair value of units granted | $ 1,000 | 900 | |||||
Intrinsic value of restricted stock units | 1,100 | 700 | |||||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 1,600 | $ 1,600 | |||||
Weighted average remaining service period | 1 year 9 months 18 days | ||||||
Performance Shares | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Total stock-based compensation expense | 117 | 118 | $ 357 | 411 | |||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 500 | $ 500 | |||||
Weighted average remaining service period | 1 year 8 months 12 days | ||||||
Performance Shares | Key employees | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Fair value of units granted | $ 400 | 500 | |||||
Performance Shares | Minimum | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Percentage of the number of units granted that may be earned | 0% | 0% | |||||
Performance Shares | Maximum | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Percentage of the number of units granted that may be earned | 150% | 150% | |||||
Total awards classified as equity | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Total stock-based compensation expense | $ 434 | 352 | $ 951 | 1,253 | |||
Stock Appreciation Rights | |||||||
STOCK-BASED COMPENSATION PLANS | |||||||
Total stock-based compensation expense | (47) | $ 7 | $ (46) | $ (16) | |||
Vesting period | 4 years | ||||||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | 6 | $ 6 | |||||
Stock appreciation rights plan liability recorded for the outstanding units | 400 | 400 | $ 500 | ||||
Stock appreciation rights plan liability recorded for the previously exercised units | $ 200 | $ 200 | $ 500 | ||||
Number of installments in which the liability recorded for previously exercised units will be paid | installment | 1 | ||||||
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restricted Stock Units | ||||
Stock-based compensation plans | ||||
Outstanding (in units) | 129,422 | 120,631 | 139,986 | 109,244 |
Granted (in units) | 41,847 | 46,312 | ||
Exercised (in units) | (51,693) | (34,925) | ||
Forfeited (in units) | (718) | |||
Outstanding (in units) | 129,422 | 120,631 | 129,422 | 120,631 |
Weighted Average Grant Date Assigned Value | ||||
Outstanding (in dollars per unit) | $ 19.58 | $ 17.98 | $ 18.01 | $ 17.27 |
Granted (in dollars per unit) | 22.72 | 19.11 | ||
Exercised (in dollars per unit) | 17.91 | 17.26 | ||
Forfeited (in dollars per unit) | 16.58 | |||
Outstanding (in dollars per unit) | $ 19.58 | $ 17.98 | $ 19.58 | $ 17.98 |
Performance Shares | ||||
Stock-based compensation plans | ||||
Outstanding (in units) | 79,097 | 62,067 | 62,067 | 38,344 |
Granted (in units) | 17,030 | 23,723 | ||
Outstanding (in units) | 79,097 | 62,067 | 79,097 | 62,067 |
Weighted Average Grant Date Assigned Value | ||||
Outstanding (in dollars per unit) | $ 18.25 | $ 17.02 | $ 17.02 | $ 15.72 |
Granted (in dollars per unit) | 22.72 | 19.14 | ||
Outstanding (in dollars per unit) | $ 18.25 | $ 17.02 | $ 18.25 | $ 17.02 |
Stock Appreciation Rights | ||||
Stock-based compensation plans | ||||
Outstanding (in units) | 73,440 | 91,800 | 73,440 | 97,920 |
Granted (in units) | ||||
Exercised (in units) | (6,120) | |||
Outstanding (in units) | 73,440 | 91,800 | 73,440 | 91,800 |
Exercisable (in shares) | 67,320 | 67,320 | ||
Weighted Average Grant Date Assigned Value | ||||
Outstanding (in dollars per unit) | $ 16.32 | $ 16.32 | $ 16.32 | $ 16.32 |
Granted (in dollars per unit) | ||||
Exercised (in dollars per unit) | 16.32 | |||
Outstanding (in dollars per unit) | $ 16.32 | $ 16.32 | $ 16.32 | $ 16.32 |
Weighted average remaining contractual term | 6 years 2 months 12 days |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock Appreciation Rights | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 4.06% | 3.95% |
Expected volatility | 37.35% | 36.54% |
Expected life (in years) | 6 years 2 months 12 days | 6 years 8 months 12 days |
Expected dividend yield | 3.69% | 3.27% |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
REGULATORY MATTERS | ||
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent). | 0.025 | 0.025 |
Heartland Bank | ||
REGULATORY MATTERS | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 566,196 | $ 489,316 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 305,541 | 253,643 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 381,926 | 317,054 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 532,499 | 463,983 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 229,156 | 190,233 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 305,541 | 253,643 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 532,499 | 463,983 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 171,867 | 142,674 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 248,252 | 206,085 |
Tier 1 Capital (to Average Assets), Actual Amount | 532,499 | 463,983 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | 199,201 | 172,240 |
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 249,001 | $ 215,300 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1482 | 0.1543 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent). | 0.0800 | 0.0800 |
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1394 | 0.1463 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0600 | 0.0600 |
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1394% | 0.1463% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.045% | 0.045% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065% | 0.065% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 0.1069 | 0.1078 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.0500 | 0.0500 |
Consolidated HBT | ||
REGULATORY MATTERS | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 575,030 | $ 516,556 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 306,067 | 254,052 |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 501,898 | 451,828 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 229,551 | 190,539 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 450,752 | 415,213 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount | 172,163 | 142,904 |
Tier 1 Capital (to Average Assets), Actual Amount | 501,898 | 451,828 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount | $ 199,442 | $ 172,427 |
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1503 | 0.1627 |
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent). | 0.0800 | 0.0800 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1312 | 0.1423 |
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0600 | 0.0600 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent) | 0.1178% | 0.1307% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.045% | 0.045% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 0.1007 | 0.1048 |
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent) | 0.0400 | 0.0400 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | $ 843,524 | ||||
Debt securities available-for-sale | $ 822,788 | $ 822,788 | |||
Equity securities | 3,152 | 3,152 | 3,029 | ||
Mortgage servicing rights, at fair value | 20,133 | 20,133 | 10,147 | ||
Transfer of assets from level 1 to level 2 | 0 | $ 0 | 0 | $ 0 | |
Transfer of assets from level 2 to level 1 | 0 | 0 | 0 | 0 | |
Transfer of assets in to level 3 | 0 | 0 | 0 | 0 | |
Transfer of assets out of level 3 | 0 | 0 | 0 | 0 | |
Transfer of liabilities from level 1 to level 2 | 0 | 0 | 0 | 0 | |
Transfer of liabilities from level 2 to level 1 | 0 | 0 | 0 | 0 | |
Transfer of liabilities in to level 3 | 0 | 0 | 0 | 0 | |
Transfer of liabilities out of level 3 | 0 | $ 0 | 0 | $ 0 | |
U.S. Treasury | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 154,515 | ||||
Debt securities available-for-sale | 155,140 | 155,140 | |||
U.S. government agency | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 55,157 | ||||
Debt securities available-for-sale | 52,424 | 52,424 | |||
Municipal securities | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 243,829 | ||||
Debt securities available-for-sale | 244,055 | 244,055 | |||
Mortgage-backed: Agency residential | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 195,441 | ||||
Debt securities available-for-sale | 189,550 | 189,550 | |||
Mortgage-backed: Agency commercial | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 132,888 | ||||
Debt securities available-for-sale | 130,886 | 130,886 | |||
Corporate | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 61,694 | ||||
Debt securities available-for-sale | 50,733 | 50,733 | |||
Recurring | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Equity securities | 3,152 | 3,152 | 3,029 | ||
Mortgage servicing rights, at fair value | 20,133 | 20,133 | 10,147 | ||
Derivative financial assets fair value | 8,640 | 8,640 | 7,610 | ||
Derivative financial liabilities fair value | 8,053 | 8,053 | 6,981 | ||
Recurring | U.S. Treasury | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 154,515 | ||||
Debt securities available-for-sale | 155,140 | 155,140 | |||
Recurring | U.S. government agency | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 55,157 | ||||
Debt securities available-for-sale | 52,424 | 52,424 | |||
Recurring | Municipal securities | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 243,829 | ||||
Debt securities available-for-sale | 244,055 | 244,055 | |||
Recurring | Mortgage-backed: Agency residential | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 195,441 | ||||
Debt securities available-for-sale | 189,550 | 189,550 | |||
Recurring | Mortgage-backed: Agency commercial | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 132,888 | ||||
Debt securities available-for-sale | 130,886 | 130,886 | |||
Recurring | Corporate | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 61,694 | ||||
Debt securities available-for-sale | 50,733 | 50,733 | |||
Recurring | Level 1 | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Equity securities | 3,152 | 3,152 | 3,029 | ||
Recurring | Level 1 | U.S. Treasury | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 154,515 | ||||
Debt securities available-for-sale | 155,140 | 155,140 | |||
Recurring | Level 2 | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Derivative financial assets fair value | 8,640 | 8,640 | 7,610 | ||
Derivative financial liabilities fair value | 8,053 | 8,053 | 6,981 | ||
Recurring | Level 2 | U.S. government agency | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 55,157 | ||||
Debt securities available-for-sale | 52,424 | 52,424 | |||
Recurring | Level 2 | Municipal securities | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 243,829 | ||||
Debt securities available-for-sale | 244,055 | 244,055 | |||
Recurring | Level 2 | Mortgage-backed: Agency residential | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 195,441 | ||||
Debt securities available-for-sale | 189,550 | 189,550 | |||
Recurring | Level 2 | Mortgage-backed: Agency commercial | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 132,888 | ||||
Debt securities available-for-sale | 130,886 | 130,886 | |||
Recurring | Level 2 | Corporate | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Debt securities available-for-sale | 61,694 | ||||
Debt securities available-for-sale | 50,733 | 50,733 | |||
Recurring | Level 3 | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
Mortgage servicing rights, at fair value | $ 20,133 | $ 20,133 | $ 10,147 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | $ 20,133 | $ 10,147 |
Recurring | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | 20,133 | 10,147 |
Recurring | Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | $ 20,133 | $ 10,147 |
Valuation Technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Recurring | Level 3 | Constant pre-payment rates (CPR) | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair value | $ 20,133 | $ 10,147 |
Recurring | Level 3 | Constant pre-payment rates (CPR) | Minimum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.068 | 0.053 |
Recurring | Level 3 | Constant pre-payment rates (CPR) | Maximum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.394 | 0.597 |
Recurring | Level 3 | Constant pre-payment rates (CPR) | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | (0.080) | (0.082) |
Recurring | Level 3 | Discount rate | Minimum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.090 | 0.090 |
Recurring | Level 3 | Discount rate | Maximum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.234 | 0.117 |
Recurring | Level 3 | Discount rate | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | (0.096) | (0.093) |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | $ 8,829 | $ 615 |
Collateral-dependent loans | 32,767 | 17,460 |
Bank premises held for sale | 35 | 235 |
Foreclosed assets | 3,080 | 3,030 |
Level 2 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | 8,829 | 615 |
Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Collateral-dependent loans | 32,767 | 17,460 |
Bank premises held for sale | 35 | 235 |
Foreclosed assets | $ 3,080 | $ 3,030 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Nonrecurring - Level 3 $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Collateral-dependent impaired loans | Appraisal of collateral | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 32,767 | $ 17,460 |
Alternative Investment, Measurement Input [Extensible List] | hbt:AppraisalAdjustmentsMember | hbt:AppraisalAdjustmentsMember |
Bank premises held for sale | Appraisal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 35 | $ 235 |
Measurement input | 0.07 | 0.07 |
Alternative Investment, Measurement Input [Extensible List] | hbt:AppraisalAdjustmentsMember | hbt:AppraisalAdjustmentsMember |
Bank premises held for sale | Appraisal | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | (0.07) | (0.07) |
Foreclosed assets | Appraisal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 3,080 | $ 3,030 |
Measurement input | 0.07 | 0.07 |
Alternative Investment, Measurement Input [Extensible List] | hbt:AppraisalAdjustmentsMember | hbt:AppraisalAdjustmentsMember |
Foreclosed assets | Appraisal | Weighted average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | (0.07) | (0.07) |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Debt securities held-to-maturity | $ 469,921 | $ 478,801 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 109,808 | 114,159 |
Level 1 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 109,808 | 114,159 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Debt securities held-to-maturity | 533,231 | 541,600 |
Accrued interest receivable | 19,900 | 19,506 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 38,729 | 43,081 |
Accrued interest payable | 2,386 | 1,363 |
Level 2 | Estimated Fair Value | ||
Financial assets: | ||
Debt securities held-to-maturity | 469,921 | 478,801 |
Accrued interest receivable | 19,900 | 19,506 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 38,729 | 43,081 |
Accrued interest payable | 2,386 | 1,363 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Restricted stock | 11,345 | 7,965 |
Loans, net | 3,206,841 | 2,594,920 |
Investments in unconsolidated subsidiaries | 1,614 | 1,165 |
Financial liabilities: | ||
Time deposits | 469,355 | 262,968 |
Level 3 | Estimated Fair Value | ||
Financial assets: | ||
Restricted stock | 11,345 | 7,965 |
Loans, net | 3,143,481 | 2,566,930 |
Investments in unconsolidated subsidiaries | 1,614 | 1,165 |
Financial liabilities: | ||
Time deposits | 457,327 | 253,619 |
Subordinated Notes | Level 3 | Carrying Amount | ||
Financial liabilities: | ||
Subordinated debt | 39,435 | 39,395 |
Subordinated Notes | Level 3 | Estimated Fair Value | ||
Financial liabilities: | ||
Subordinated debt | 32,481 | 37,205 |
Junior Subordinated Debentures Issued | Level 3 | Carrying Amount | ||
Financial liabilities: | ||
Subordinated debt | 52,760 | 37,780 |
Junior Subordinated Debentures Issued | Level 3 | Estimated Fair Value | ||
Financial liabilities: | ||
Subordinated debt | $ 41,993 | $ 37,030 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Standby letters of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial instruments off-balance sheet credit risks | $ 19,053 | $ 17,785 |
Commitments to extend credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial instruments off-balance sheet credit risks | $ 860,390 | $ 756,885 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Legal Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
May 15, 2023 | Feb. 20, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | |
Litigation | |||||
Allowance for credit loss | $ 37,814 | $ 38,776 | |||
Accrual included in other noninterest expense | $ 800 | ||||
Unfunded Loan Commitment | |||||
Litigation | |||||
Allowance for credit loss | 4,100 | ||||
TGC Cases | |||||
Litigation | |||||
Settlement amount | $ 13,000 | ||||
Insurance recovery receivable | 7,400 | 7,400 | |||
Net settlement amount included in other noninterest expense | 5,600 | ||||
Accrual recorded | 13,000 | 13,000 | |||
DeBaere and Miller cases | |||||
Litigation | |||||
Settlement amount | $ 3,400 | ||||
Accrual recorded | 2,600 | $ 3,400 | |||
Accrual included in other noninterest expense | $ 2,600 |