Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-18082 | |
Entity Registrant Name | GREAT SOUTHERN BANCORP, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 43-1524856 | |
Entity Address, Address Line One | 1451 E. Battlefield, | |
Entity Address, City or Town | Springfield, | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 65804 | |
City Area Code | (417) | |
Local Phone Number | 887-4400 | |
Title of 12(b) Security | Common Stock par value $0.01 per share | |
Trading Symbol | GSBC | |
Trading Exchange | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Number of common stock shares outstanding | 12,214,889 | |
Entity Central Index Key | 0000854560 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash | $ 107,617 | $ 90,008 |
Interest-bearing deposits in other financial institutions | 81,389 | 627,259 |
Cash and cash equivalents | 189,006 | 717,267 |
Available-for-sale securities | 482,807 | 501,032 |
Held-to-maturity securities | 206,485 | 0 |
Mortgage loans held for sale | 4,097 | 8,735 |
Loans receivable, net of allowance for credit losses of $62,761 - September 2022; $60,754 - December 2021 | 4,497,109 | 4,007,500 |
Interest receivable | 13,787 | 10,705 |
Prepaid expenses and other assets | 64,383 | 45,176 |
Other real estate owned and repossessions, net | 269 | 2,087 |
Premises and equipment, net | 139,410 | 132,733 |
Goodwill and other intangible assets | 11,029 | 6,081 |
Federal Home Loan Bank stock and other interest-earning assets | 31,254 | 6,655 |
Current and deferred income taxes | 36,613 | 11,973 |
Total Assets | 5,676,249 | 5,449,944 |
Liabilities: | ||
Deposits | 4,739,118 | 4,552,101 |
Securities sold under reverse repurchase agreements with customers | 124,187 | 137,116 |
Short-term borrowings and other interest-bearing liabilities | 99,119 | 1,839 |
Subordinated debentures issued to capital trust | 25,774 | 25,774 |
Subordinated notes | 74,207 | 73,984 |
Accrued interest payable | 2,632 | 646 |
Advances from borrowers for taxes and insurance | 10,134 | 6,147 |
Accrued expenses and other liabilities | 76,829 | 25,956 |
Liability for unfunded commitments | 12,974 | 9,629 |
Total Liabilities | 5,164,974 | 4,833,192 |
Stockholders' Equity: | ||
Serial preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding September 2022 and December 2021 - - 0- shares | ||
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding September 2022 - 12,245,593 shares; December 2021 - 13,128,493 shares | 123 | 131 |
Additional paid-in capital | 41,515 | 38,314 |
Retained earnings | 527,963 | 545,548 |
Accumulated other comprehensive income (loss) | (58,326) | 32,759 |
Total Stockholders' Equity | 511,275 | 616,752 |
Total Liabilities and Stockholders' Equity | $ 5,676,249 | $ 5,449,944 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
Loans receivable, allowance for credit losses | $ 62,761 | $ 60,754 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 12,245,593 | 13,128,493 |
Common Stock, Shares, Outstanding | 12,245,593 | 13,128,493 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
INTEREST INCOME | ||||
Loans | $ 54,077 | $ 46,536 | $ 143,906 | $ 141,605 |
Investment securities and other | 5,580 | 3,104 | 15,122 | 9,120 |
TOTAL INTEREST INCOME | 59,657 | 49,640 | 159,028 | 150,725 |
INTEREST EXPENSE | ||||
Deposits | 4,984 | 2,925 | 9,516 | 10,604 |
Securities sold under reverse repurchase agreements | 45 | 10 | 62 | 29 |
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 377 | 614 | ||
Subordinated debentures issued to capital trust | 248 | 111 | 525 | 337 |
Subordinated notes | 1,105 | 1,671 | 3,317 | 6,060 |
TOTAL INTEREST EXPENSE | 6,759 | 4,717 | 14,034 | 17,030 |
NET INTEREST INCOME | 52,898 | 44,923 | 144,994 | 133,695 |
PROVISION (CREDIT) FOR CREDIT LOSSES ON LOANS | 2,000 | (3,000) | 2,000 | (3,700) |
PROVISION FOR UNFUNDED COMMITMENTS | 1,315 | 643 | 3,345 | (338) |
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES AND PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS | 49,583 | 47,280 | 139,649 | 137,733 |
NON-INTEREST INCOME | ||||
Commissions | 226 | 325 | 912 | 977 |
Overdraft and insufficient funds fees | 2,077 | 1,845 | 5,830 | 4,817 |
Point-Of-Sale and ATM fee income and service charges | 3,874 | 3,714 | 11,942 | 11,043 |
Net gains on loan sales | 601 | 2,341 | 2,234 | 7,643 |
Net realized gain on sale of available for sale securities | 31 | 38 | ||
Late charges and fees on loans | 206 | 481 | 879 | 1,141 |
Gain on derivative interest rate products | 88 | 45 | 385 | 340 |
Other income | 881 | 1,047 | 4,260 | 3,159 |
TOTAL NON-INTEREST INCOME | 7,984 | 9,798 | 26,480 | 29,120 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 18,976 | 17,834 | 56,488 | 52,887 |
Net occupancy and equipment expense | 7,198 | 7,244 | 20,884 | 21,013 |
Postage | 860 | 759 | 2,491 | 2,387 |
Insurance | 803 | 775 | 2,383 | 2,294 |
Advertising | 953 | 997 | 2,383 | 2,187 |
Office supplies and printing | 236 | 200 | 662 | 639 |
Telephone | 832 | 848 | 2,513 | 2,597 |
Legal, audit and other professional fees | 2,239 | 636 | 4,240 | 1,814 |
Expense on other real estate and repossessions | 84 | 103 | 313 | 473 |
Acquired intangible asset amortization | 216 | 158 | 552 | 705 |
Other operating expenses | 2,361 | 1,785 | 6,121 | 4,856 |
TOTAL NON-INTEREST EXPENSE | 34,758 | 31,339 | 99,030 | 91,852 |
INCOME BEFORE INCOME TAXES | 22,809 | 25,739 | 67,099 | 75,001 |
PROVISION FOR INCOME TAXES | 4,676 | 5,375 | 13,755 | 15,655 |
NET INCOME | $ 18,133 | $ 20,364 | $ 53,344 | $ 59,346 |
Earnings Per Common Share | ||||
Basic Earnings Per Common Share | $ 1.47 | $ 1.50 | $ 4.23 | $ 4.35 |
Diluted Earnings Per Common Share | 1.46 | 1.49 | 4.20 | 4.32 |
Dividends Declared Per Common Share | $ 0.40 | $ 0.36 | $ 1.16 | $ 1.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net Income | $ 18,133 | $ 20,364 | $ 53,344 | $ 59,346 |
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes (credit) | (23,305) | (3,420) | (60,825) | (11,222) |
Unrealized loss on securities transferred to held-to-maturity, net of taxes (credit) | (220) | 30 | ||
Less: reclassification adjustment for gains included in net income, net of taxes | (24) | (29) | ||
Amortization of realized gain on termination of cash flow hedge, net of taxes (credit) | (1,580) | (1,580) | (4,691) | (4,690) |
Change in value of active cash flow hedges, net of taxes (credit) | (19,898) | (25,570) | ||
Comprehensive Income (Loss) | $ (26,894) | $ 15,364 | $ (37,741) | $ 43,434 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Tax Effect of Unrealized Appreciation (Depreciation) on Available for Sale Securities Taxes (Credit) | $ (6,884) | $ (1,011) | $ (17,965) | $ (3,314) |
Tax Effect of Unrealized Gain (Loss) on Securities Transferred to Held-to-Maturity | (65) | 0 | 9 | 0 |
Tax Effect Reclassification Adjustment for Loss (Gain) Included in Net Income Taxes (Credit) | (7) | 0 | (9) | 0 |
Tax Effect on Amortization of Realized Gain on Termination of Cash Flow Hedge Taxes (Credit) | (467) | (468) | (1,385) | (1,386) |
Tax Effect of Change in Fair Value of Cash Flow Hedge Taxes (Credit) | $ (5,876) | $ 0 | $ (7,553) | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 138 | $ 35,004 | $ 541,448 | $ 53,151 | $ 629,741 | |
Net income | 59,346 | 59,346 | ||||
Stock issued under Stock Option Plan | 2,464 | $ 1,074 | 3,538 | |||
Common dividends declared | (14,124) | (14,124) | ||||
Other comprehensive loss | (15,912) | (15,912) | ||||
Purchase of the Company's common stock | (23,773) | (23,773) | ||||
Reclassification of treasury stock per Maryland law | (4) | (22,695) | 22,699 | |||
Balance at ending of period (CECL adoption) at Sep. 30, 2021 | (14,175) | (14,175) | ||||
Balance at ending of period at Sep. 30, 2021 | 134 | 37,468 | 549,800 | 37,239 | 624,641 | |
Balance at beginning of period at Jun. 30, 2021 | 137 | 36,880 | 550,301 | 42,239 | 629,557 | |
Net income | 20,364 | 20,364 | ||||
Stock issued under Stock Option Plan | 588 | 257 | 845 | |||
Common dividends declared | (4,812) | (4,812) | ||||
Other comprehensive loss | (5,000) | (5,000) | ||||
Purchase of the Company's common stock | (16,313) | (16,313) | ||||
Reclassification of treasury stock per Maryland law | (3) | (16,053) | 16,056 | |||
Balance at ending of period (CECL adoption) at Sep. 30, 2021 | (14,175) | (14,175) | ||||
Balance at ending of period at Sep. 30, 2021 | 134 | 37,468 | 549,800 | 37,239 | 624,641 | |
Balance at beginning of period at Dec. 31, 2021 | 131 | 38,314 | 545,548 | 32,759 | 616,752 | |
Net income | 53,344 | 53,344 | ||||
Stock issued under Stock Option Plan | 3,201 | 2,773 | 5,974 | |||
Common dividends declared | (14,455) | (14,455) | ||||
Change in fair value of cash flow hedges | (30,261) | (30,261) | ||||
Change in unrealized gain (loss) on transferred held-to-maturity securities | 30 | 30 | ||||
Change in unrealized loss on available-for-sale securities | (60,854) | (60,854) | ||||
Purchase of the Company's common stock | (59,255) | (59,255) | ||||
Reclassification of treasury stock per Maryland law | (8) | (56,474) | 56,482 | |||
Balance at ending of period at Sep. 30, 2022 | 123 | 41,515 | 527,963 | (58,326) | 511,275 | |
Balance at beginning of period at Jun. 30, 2022 | 123 | 40,565 | 522,255 | (13,299) | 549,644 | |
Net income | 18,133 | 18,133 | ||||
Stock issued under Stock Option Plan | 950 | 1,355 | 2,305 | |||
Common dividends declared | (4,906) | (4,906) | ||||
Change in fair value of cash flow hedges | (21,478) | (21,478) | ||||
Change in unrealized gain (loss) on transferred held-to-maturity securities | (220) | (220) | ||||
Change in unrealized loss on available-for-sale securities | (23,329) | (23,329) | ||||
Purchase of the Company's common stock | (8,874) | (8,874) | ||||
Reclassification of treasury stock per Maryland law | (7,519) | $ 7,519 | ||||
Balance at ending of period at Sep. 30, 2022 | $ 123 | $ 41,515 | $ 527,963 | $ (58,326) | $ 511,275 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||
Dividend declared per share | $ 0.40 | $ 0.36 | $ 1.16 | $ 1.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 53,344 | $ 59,346 | |||
Proceeds from sales of loans held for sale | 78,776 | 280,764 | |||
Originations of loans held for sale | (70,073) | (265,557) | |||
Items not requiring (providing) cash: | |||||
Depreciation | 6,369 | 7,288 | |||
Amortization | 861 | 1,330 | |||
Compensation expense for stock option grants | 1,054 | 895 | |||
Provision (credit) for credit losses on loans | $ 2,000 | $ (3,000) | 2,000 | $ (3,700) | (3,700) |
Provision (credit) for unfunded commitments | 1,315 | 643 | 3,345 | (338) | |
Net gain on loan sales | (601) | (2,341) | (2,234) | (7,643) | |
Net gain on sale of premises and equipment | (1,071) | (7) | |||
Net gain on sale/write-down of other real estate owned and repossessions | (125) | (86) | |||
Net gain on sale of available-for-sale investments | (38) | ||||
Accretion of deferred income, premiums, discounts and other | (6,208) | (7,515) | |||
Gain on derivative interest rate products | (385) | (341) | |||
Deferred income taxes | (536) | 1,998 | |||
Changes in: | |||||
Interest receivable | (3,082) | 1,503 | |||
Prepaid expenses and other assets | (16,534) | 8,263 | |||
Accrued expenses and other liabilities | 5,683 | 842 | |||
Income taxes refundable/payable | 2,800 | 705 | |||
Net cash provided by operating activities | 53,946 | 77,747 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Net change in loans | (192,105) | 350,917 | |||
Purchase of loans | (294,762) | (79,403) | |||
Purchase of premises and equipment | (15,876) | (3,976) | |||
Proceeds from sale of premises and equipment | 3,830 | 453 | |||
Proceeds from sale of other real estate owned and repossessions | 2,192 | 1,723 | |||
Proceeds from sale of available-for-sale securities | 10,095 | ||||
Proceeds from maturities and calls of available-for-sale securities | 750 | 6,330 | |||
Principal reductions on mortgage-backed securities | 63,539 | 41,615 | |||
Purchase of available-for-sale securities | (342,010) | (80,905) | |||
Redemption (purchase) of Federal Home Loan Bank stock and change in other interest-earning assets | (24,599) | 3,151 | |||
Net cash provided by (used in) investing activities | (788,946) | 239,905 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net increase (decrease) in certificates of deposit | 399,587 | (335,031) | |||
Net increase (decrease) in checking and savings deposits | (212,570) | 328,324 | |||
Net increase in short-term borrowings | 84,351 | 3,276 | |||
Advances from borrowers for taxes and insurance | 3,987 | 1,360 | |||
Redemption of subordinated notes | (75,000) | ||||
Dividends paid | (14,281) | (13,988) | |||
Purchase of the Company's common stock | (59,255) | (23,773) | |||
Stock options exercised | 4,920 | 2,643 | |||
Net cash provided by (used in) financing activities | 206,739 | (112,189) | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (528,261) | 205,463 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 717,267 | 563,729 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 189,006 | $ 769,192 | $ 189,006 | $ 769,192 | $ 769,192 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the “Company” or “Great Southern”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations, changes in stockholders’ equity and cash flows of the Company as of the dates and for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2021, has been derived from the audited consolidated statement of financial condition of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”). |
NATURE OF OPERATIONS AND OPERAT
NATURE OF OPERATIONS AND OPERATING SEGMENTS | 9 Months Ended |
Sep. 30, 2022 | |
NATURE OF OPERATIONS AND OPERATING SEGMENTS | |
NATURE OF OPERATIONS AND OPERATING SEGMENTS | NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS The Company operates as a one-bank holding company. The Company’s business primarily consists of the operations of Great Southern Bank (the “Bank”), which provides a full range of financial services to customers primarily located in Missouri, Iowa, Kansas, Minnesota, Nebraska and Arkansas. The Bank also originates commercial loans from lending offices in Atlanta; Charlotte, North Carolina; Chicago; Dallas; Denver; Omaha, Nebraska; Phoenix; and Tulsa, Oklahoma. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by those regulatory agencies. The Company’s banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans by attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. Selected information is not presented separately for the Company’s reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS 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 In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 4: EARNINGS PER SHARE Three Months Ended September 30, 2022 2021 (In Thousands, Except Per Share Data) Basic: Average common shares outstanding 12,304 13,534 Net income $ 18,133 $ 20,364 Per common share amount $ 1.47 $ 1.50 Diluted: Average common shares outstanding 12,304 13,534 Net effect of dilutive stock options – based on the treasury stock method using average market price 99 92 Diluted common shares 12,403 13,626 Net income $ 18,133 $ 20,364 Per common share amount $ 1.46 $ 1.49 Nine Months Ended September 30, 2022 2021 (In Thousands, Except Per Share Data) Basic: Average common shares outstanding 12,616 13,652 Net income $ 53,344 $ 59,346 Per common share amount $ 4.23 $ 4.35 Diluted: Average common shares outstanding 12,616 13,652 Net effect of dilutive stock options – based on the treasury stock method using average market price 94 92 Diluted common shares 12,710 13,744 Net income $ 53,344 $ 59,346 Per common share amount $ 4.20 $ 4.32 Options outstanding at September 30, 2022 and 2021, to purchase 364,199 and 448,256 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market prices of the common stock for the three months ended September 30, 2022 and 2021, respectively. Options outstanding at September 30, 2022 and 2021, to purchase 366,699 and 448,256 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the nine month periods because the exercise prices of such options were greater than the average market prices of the common stock for the nine months ended September 30, 2022 and 2021, respectively. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 5: INVESTMENT SECURITIES Held-to-maturity securities (“HTM”), which include any security for which the Company has both the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income over the security’s estimated life. Prepayments are anticipated for certain mortgage-backed securities. Premiums on callable securities are amortized to their earliest call date. Available-for-sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Realized gains and losses, based on specifically identified amortized cost of the individual security, are included in non-interest income. Unrealized gains and losses are recorded, net of related income tax effects, in stockholders’ equity. Premiums and discounts are amortized and accreted, respectively, to interest income over the estimated life of the security. Prepayments are anticipated for certain mortgage-backed and Small Business Administration (SBA) securities. Premiums on callable securities are amortized to their earliest call date. During the three months ended March 31, 2022, the Company transferred, at fair value, $226.5 million of securities from the available-for-sale portfolio to the held-to-maturity portfolio. The related net unrealized gross gains were $1.0 million; $775,000 $39,000 $30,000 The amortized cost and fair values of securities were as follows: September 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 331,657 $ — $ 43,402 $ 288,255 Agency collateralized mortgage obligations 81,907 — 11,131 70,776 States and political subdivisions 68,089 11 5,771 62,329 Small Business Administration securities 68,148 — 6,701 61,447 $ 549,801 $ 11 $ 67,005 $ 482,807 September 30, 2022 Amortized Gross Gross Amortized Fair Value Carrying Unrealized Unrealized Fair Cost Adjustment Value Gains Losses Value (In Thousands) HELD-TO-MATURITY SECURITIES: Agency mortgage-backed securities $ 74,140 $ 3,161 $ 77,301 $ — $ 10,353 $ 66,948 Agency collateralized mortgage obligations 126,054 (3,107) 122,947 — 14,658 108,289 States and political subdivisions 6,252 (15) 6,237 — 1,063 5,174 $ 206,446 $ 39 $ 206,485 $ — $ 26,074 $ 180,411 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 219,624 $ 10,561 $ 744 $ 229,441 Agency collateralized mortgage obligations 204,332 2,443 2,498 204,277 States and political subdivisions 38,440 1,618 43 40,015 Small Business Administration securities 26,802 497 — 27,299 $ 489,198 $ 15,119 $ 3,285 $ 501,032 No securities were classified as held-to-maturity at December 31, 2021. The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Carrying Value Value (In Thousands) One year or less $ — $ — $ — $ — After one through two years — — — — After two through three years — — — — After three through four years — — — — After four through five years 2,287 2,264 — — After five through fifteen years 11,955 11,455 2,577 2,108 After fifteen years 53,847 48,610 3,660 3,066 Securities not due on a single maturity date 481,712 420,478 200,248 175,237 $ 549,801 $ 482,807 $ 206,485 $ 180,411 Certain available-for-sale investments in debt securities are reported in the financial statements at an amount less than their amortized cost. Total fair value of these investments at September 30, 2022 and December 31, 2021, was approximately $481.6 million and $173.9 million, respectively, which was approximately 99.7% and 34.7% of the Company’s total available-for-sale investment portfolio. A high percentage of the unrealized losses were related to the Company’s mortgage-backed securities, collateralized mortgage obligations and Small Business Administration (SBA) securities, which are issued and guaranteed by U.S. government-sponsored entities and agencies. The Company’s state and political subdivisions securities are investments in insured fixed rate municipal bonds for which the issuers continue to make timely principal and interest payments under the contractual terms of the securities. Held-to-maturity investments in debt securities are reported in the financial statements at their amortized cost, which was $206.5 million at September 30, 2022. Total fair value of these investments at September 30, 2022 was approximately $180.4 million. There were no held-to-maturity investment securities at December 31, 2021. Held-to-maturity investment securities are evaluated for potential losses under ASU 2016-13. Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes any declines in fair value for these debt securities are temporary. September 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 281,226 $ (42,158) $ 7,027 $ (1,244) $ 288,253 $ (43,402) Agency collateralized mortgage obligations 38,814 (4,581) 31,962 (6,550) 70,776 (11,131) States and political subdivisions securities 59,847 (5,564) 1,236 (207) 61,083 (5,771) Small Business Administration securities 61,447 (6,701) — — 61,447 (6,701) $ 441,334 $ (59,004) $ 40,225 $ (8,001) $ 481,559 $ (67,005) September 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) HELD-TO-MATURITY SECURITIES: Agency mortgage-backed securities $ 59,095 (8,249) 7,852 (2,104) 66,947 (10,353) Agency collateralized mortgage obligations 62,540 (6,614) 45,750 (8,044) 108,290 (14,658) States and political subdivisions securities 1,761 (301) 3,413 (762) 5,174 (1,063) $ 123,396 $ (15,164) $ 57,015 $ (10,910) $ 180,411 $ (26,074) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 47,769 $ (388) $ 10,583 $ (356) $ 58,352 $ (744) Agency collateralized mortgage obligations 92,727 (1,588) 16,298 (910) 109,025 (2,498) States and political subdivisions securities 6,537 (43) — — 6,537 (43) $ 147,033 $ (2,019) $ 26,881 $ (1,266) $ 173,914 $ (3,285) Available-for-sale securities totaling $5.1 million were sold during the three months ended September 30, 2022, resulting in the recognition of a $ 31,000 38,000 Allowance for Credit Losses. Measurement of Credit Losses on Financial Instruments Regarding securities issued by state and political subdivisions, management considers the following when evaluating these securities: (i) current issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) updated financial information of the issuer, (v) internal forecasts and (vi) whether such securities provide insurance or other credit enhancement or are pre-refunded by the issuers. These securities are highly rated by major rating agencies and have a long history of no credit losses. Likewise, the Company historically has not experienced losses on these types of securities. Accordingly, no allowance for credit losses has been recorded for these securities. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2022 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | NOTE 6: LOANS AND ALLOWANCE FOR CREDIT LOSSES The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (PCD) that were previously classified as purchased credit impaired (PCI) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2021, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $1.9 million to allowance for credit losses. The allowance for credit losses is measured using an average historical loss model that incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics, including borrower type, collateral and repayment types and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily classified and/or TDR loans with a balance greater than or equal to $100,000, are evaluated on an individual basis. For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given economic forecasts of key macroeconomic variables including, but not limited to, unemployment rate, gross domestic product (“GDP”), commercial real estate price index, consumer sentiment and construction spending. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting to historical averages. The forecast-adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring (“TDR”) will be executed. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecasts such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. ASU 2016-13 requires an allowance for off balance sheet credit exposures: unfunded lines of credit, undisbursed portions of loans, written residential and commercial commitments, and letters of credit. To determine the amount needed for allowance purposes, a utilization rate is determined either by the model or internally for each pool. Our loss model calculates the reserve on unfunded commitments based upon the utilization rate multiplied by the average loss rate factors in each pool with unfunded and committed balances. The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans; however, the liability for unfunded lending commitments incorporates assumptions for the portion of unfunded commitments that are expected to be funded. Classes of loans at September 30, 2022 and December 31, 2021 were as follows: September 30, December 31, 2022 2021 (In Thousands) One- to four-family residential construction $ 31,982 $ 28,302 Subdivision construction 32,977 26,694 Land development 42,871 47,827 Commercial construction 583,074 617,505 Owner occupied one- to four-family residential 765,511 561,958 Non-owner occupied one- to four-family residential 117,713 119,635 Commercial real estate 1,576,529 1,476,230 Other residential 914,693 697,903 Commercial business 295,476 280,513 Industrial revenue bonds 13,036 14,203 Consumer auto 39,912 48,915 Consumer other 35,542 37,902 Home equity lines of credit 121,783 119,965 4,571,099 4,077,552 Allowance for credit losses (62,761) (60,754) Deferred loan fees and gains, net (11,229) (9,298) $ 4,497,109 $ 4,007,500 Weighted average interest rate 4.92 % 4.26 % The following tables present the classes of loans by aging. September 30, 2022 Total Loans Over 90 Total > 90 Days Past 30-59 Days 60-89 Days Days Total Past Loans Due and Past Due Past Due Past Due Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ — $ — $ — $ 31,982 $ 31,982 $ — Subdivision construction — — — — 32,977 32,977 — Land development — — 468 468 42,403 42,871 — Commercial construction — — — — 583,074 583,074 — Owner occupied one- to four-family residential 281 292 821 1,394 764,117 765,511 — Non-owner occupied one- to four-family residential — — — — 117,713 117,713 — Commercial real estate — — 1,618 1,618 1,574,911 1,576,529 — Other residential — — — — 914,693 914,693 — Commercial business 52 — — 52 295,424 295,476 — Industrial revenue bonds — — — — 13,036 13,036 — Consumer auto 96 17 13 126 39,786 39,912 — Consumer other 278 12 65 355 35,187 35,542 — Home equity lines of credit — — 308 308 121,475 121,783 — Total $ 707 $ 321 $ 3,293 $ 4,321 $ 4,566,778 $ 4,571,099 $ — December 31, 2021 Total Loans Over 90 Total > 90 Days Past 30-59 Days 60-89 Days Days Total Past Loans Due and Past Due Past Due Past Due Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ — $ — $ — $ 28,302 $ 28,302 $ — Subdivision construction — — — — 26,694 26,694 — Land development 29 15 468 512 47,315 47,827 — Commercial construction — — — — 617,505 617,505 — Owner occupied one- to four-family residential 843 2 2,216 3,061 558,897 561,958 — Non-owner occupied one- to four-family residential — — — — 119,635 119,635 — Commercial real estate — — 2,006 2,006 1,474,224 1,476,230 — Other residential — — — — 697,903 697,903 — Commercial business 1,404 — — 1,404 279,109 280,513 — Industrial revenue bonds — — — — 14,203 14,203 — Consumer auto 229 31 34 294 48,621 48,915 — Consumer other 126 28 63 217 37,685 37,902 — Home equity lines of credit — — 636 636 119,329 119,965 — Total $ 2,631 $ 76 $ 5,423 $ 8,130 $ 4,069,422 $ 4,077,552 $ — Loans are placed on nonaccrual status at 90 days past due and interest is considered a loss unless the loan is well secured and in the process of collection. Payments received on nonaccrual loans are applied to principal until the loans are returned to accrual status. Loans are returned to accrual status when all payments contractually due are brought current, payment performance is sustained for a period of time, generally six months, and future payments are reasonably assured. With the exception of consumer loans, charge-offs on loans are recorded when available information indicates a loan is not fully collectible and the loss is reasonably quantifiable. Consumer loans are charged-off at specified delinquency dates consistent with regulatory guidelines. Non-accruing loans are summarized as follows: September 30, December 31, 2022 2021 (In Thousands) One- to four-family residential construction $ — $ — Subdivision construction — — Land development 468 468 Commercial construction — — Owner occupied one- to four-family residential 821 2,216 Non-owner occupied one- to four-family residential — — Commercial real estate 1,618 2,006 Other residential — — Commercial business — — Industrial revenue bonds — — Consumer auto 13 34 Consumer other 65 63 Home equity lines of credit 308 636 Total non-accruing loans $ 3,293 $ 5,423 No interest income was recorded on these loans for the three and nine months ended September 30, 2022 and 2021, respectively. Nonaccrual loans for which there is no related allowance for credit losses as of September 30, 2022 had an amortized cost of $2.4 million. These loans are individually assessed and do not require an allowance due to being adequately collateralized under the collateral-dependent valuation method. A collateral-dependent loan is a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company’s assessment as of the reporting date. Collateral-dependent loans are identified by either a classified risk rating or TDR status and a loan balance equal to or greater than $100,000, including, but not limited to, any loan in process of foreclosure or repossession. The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2022 and 2021. During the three months ended September 30, 2022, the Company recorded provision expense of $2.0 million on its portfolio of outstanding loans, compared to a negative provision expense of $3.0 million during the three months ended September 30, 2021. During the nine months ended September 30, 2022, the Company recorded provision expense of $2.0 million on its portfolio of outstanding loans, compared to a negative provision expense of $3.7 million during the nine months ended September 30, 2021. One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for credit losses Balance, June 30, 2021 $ 9,209 $ 15,299 $ 30,507 $ 2,215 $ 3,932 $ 5,440 $ 66,602 Provision (credit) charged to expense — — (3,000) — — — (3,000) Losses charged off (37) — — — (3) (446) (486) Recoveries 45 — 6 6 52 404 513 Balance, September 30, 2021 $ 9,217 $ 15,299 $ 27,513 $ 2,221 $ 3,981 $ 5,398 $ 63,629 Allowance for credit losses Balance, June 30, 2022 $ 9,434 $ 10,612 $ 28,604 $ 2,797 $ 4,365 $ 5,246 $ 61,058 Provision (credit) charged to expense 1,076 881 (1,105) 265 1,302 (419) 2,000 Losses charged off — — — — (50) (571) (621) Recoveries 20 — 1 — 15 288 324 Balance, September 30, 2022 $ 10,530 $ 11,493 $ 27,500 $ 3,062 $ 5,632 $ 4,544 $ 62,761 One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for credit losses Balance, December 31, 2020 $ 4,536 $ 9,375 $ 33,707 $ 3,521 $ 2,390 $ 2,214 $ 55,743 CECL adoption 4,533 5,832 (2,531) (1,165) 1,499 3,427 11,595 Balance, January 1, 2021 9,069 15,207 31,176 2,356 3,889 5,641 67,338 Provision (credit) charged to expense — — (3,700) — — — (3,700) Losses charged off (179) — — (154) (60) (1,647) (2,040) Recoveries 327 92 37 19 152 1,404 2,031 Balance, September 30, 2021 $ 9,217 $ 15,299 $ 27,513 $ 2,221 $ 3,981 $ 5,398 $ 63,629 Allowance for credit losses Balance, January 1, 2022 $ 9,364 $ 10,502 $ 28,604 $ 2,797 $ 4,142 $ 5,345 $ 60,754 Provision (credit) charged to expense 1,076 881 (1,105) 265 1,302 (419) 2,000 Losses charged off (38) — — — (50) (1,403) (1,491) Recoveries 128 110 1 — 238 1,021 1,498 Balance, September 30, 2022 $ 10,530 $ 11,493 $ 27,500 $ 3,062 $ 5,632 $ 4,544 $ 62,761 The following tables present the activity in the allowance for unfunded commitments by portfolio segment for the three and nine months ended September 30, 2022 and 2021. The provision for losses on unfunded commitments for the three months ended September 30, 2022 was $1.3 million, compared to $643,000 for the three months ended September 30, 2021. The provision for losses on unfunded commitments for the nine months ended September 30, 2022 was $3.3 million, compared to a credit (negative expense) of $338,000 for the nine months ended September 30, 2021. In the 2022 periods, the Company experienced increases in its unfunded commitments, resulting in an increase in its required reserves for such potential losses. The level and mix of unfunded commitments resulted in a decrease in the required reserve for such potential losses in the 2021 nine month period presented. One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for unfunded commitments Balance, June 30, 2021 $ 760 $ 4,972 $ 417 $ 354 $ 821 $ 385 $ 7,709 Provision (credit) charged to expense 5 188 (79) — 534 (5) 643 Balance, September 30, 2021 $ 765 $ 5,160 $ 338 $ 354 $ 1,355 $ 380 $ 8,352 Allowance for unfunded commitments Balance, June 30, 2022 $ 1,138 $ 7,419 $ 501 $ 695 $ 1,406 $ 500 $ 11,659 Provision (credit) charged to expense (401) 967 17 553 146 33 1,315 Balance, September 30, 2022 $ 737 $ 8,386 $ 518 $ 1,248 $ 1,552 $ 533 $ 12,974 One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for unfunded commitments Balance, December 31, 2020 $ — $ — $ — $ — $ — $ — $ — CECL adoption 917 5,227 354 910 935 347 8,690 Balance, January 1, 2021 917 5,227 354 910 935 347 8,690 Provision (credit) charged to expense (152) (67) (16) (556) 420 33 (338) Balance, September 30, 2021 $ 765 $ 5,160 $ 338 $ 354 $ 1,355 $ 380 $ 8,352 Allowance for unfunded commitments Balance, January 1, 2022 $ 687 $ 5,703 $ 367 $ 908 $ 1,582 $ 382 $ 9,629 Provision (credit) charged to expense 50 2,683 151 340 (30) 151 3,345 Balance, September 30, 2022 $ 737 $ 8,386 $ 518 $ 1,248 $ 1,552 $ 533 $ 12,974 The portfolio segments used in the preceding tables correspond to the loan classes used in all other tables in Note 6 ● The one- to four-family residential and construction segment includes the one- to four-family residential construction, subdivision construction, owner occupied one- to four-family residential and non-owner occupied one- to four-family residential classes. ● The other residential segment corresponds to the other residential class. ● The commercial real estate segment includes the commercial real estate and industrial revenue bonds classes. ● The commercial construction segment includes the land development and commercial construction classes. ● The commercial business segment corresponds to the commercial business class. ● The consumer segment includes the consumer auto, consumer other and home equity lines of credit classes. The following table presents the amortized cost basis of collateral-dependent loans by class of loans: September 30, 2022 December 31, 2021 Principal Specific Principal Specific Balance Allowance Balance Allowance (In Thousands) One- to four-family residential construction $ — $ — $ — $ — Subdivision construction — — — — Land development 468 — 468 — Commercial construction — — — — Owner occupied one- to four- family residential 1,695 35 1,980 18 Non-owner occupied one- to four-family residential — — — — Commercial real estate 1,805 112 2,217 397 Other residential — — — — Commercial business — — — — Industrial revenue bonds — — — — Consumer auto — — — — Consumer other 159 80 160 80 Home equity lines of credit 138 — 377 — Total $ 4,265 $ 227 $ 5,202 $ 495 TDRs by class are presented below as of September 30, 2022 and December 31, 2021. September 30, 2022 Accruing TDR Loans Non-accruing TDR Loans Total TDR Loans Number Balance Number Balance Number Balance (In Thousands) Construction and land development — $ — — $ — — $ — One- to four-family residential 12 1,005 3 103 15 1,108 Other residential — — — — — — Commercial real estate — — 2 1,609 2 1,609 Commercial business — — — — — — Consumer 14 220 7 49 21 269 26 $ 1,225 12 $ 1,761 38 $ 2,986 December 31, 2021 Accruing TDR Loans Non-accruing TDR Loans Total TDR Loans Number Balance Number Balance Number Balance (In Thousands) Construction and land development 1 $ 15 — $ — 1 $ 15 One- to four-family residential 10 579 12 1,059 22 1,638 Other residential — — — — — — Commercial real estate 1 85 1 1,726 2 1,811 Commercial business — — — — — — Consumer 26 323 13 64 39 387 38 $ 1,002 26 $ 2,849 64 $ 3,851 The following tables present newly restructured loans, which were considered TDRs, during the three and nine months ended September 30, 2022 and 2021, respectively, by type of modification: Three Months Ended September 30, 2022 Total Interest Only Term Combination Modification (In Thousands) Commercial real estate $ — $ — $ — $ — Consumer — — — — $ — $ — $ — $ — Three Months Ended September 30, 2021 Total Interest Only Term Combination Modification (In Thousands) One- to four-family residential $ — $ — $ 134 $ 134 Consumer — — 10 10 $ — $ — $ 144 $ 144 Nine Months Ended September 30, 2022 Total Interest Only Term Combination Modification (In Thousands) Commercial real estate $ — $ — $ 247 $ 247 Consumer — 4 3 7 $ — $ 4 $ 250 $ 254 Nine Months Ended September 30, 2021 Total Interest Only Term Combination Modification (In Thousands) Commercial real estate $ 1,768 $ — $ — $ 1,768 One- to four-family residential — 157 134 291 Consumer — 100 10 110 $ 1,768 $ 257 $ 144 $ 2,169 At September 30, 2022, of the $3.0 million in TDRs, $1.8 million were classified as substandard using the Company’s internal grading system, which is described below. The Company had no TDRs that were modified in the previous 12 months and subsequently defaulted during the three months ended September 30, 2022. At December 31, 2021, of the $3.9 million in TDRs, $2.9 million were classified as substandard using the Company’s internal grading system. The Company had no TDRs that were modified in the previous 12 months and subsequently defaulted during the year ended December 31, 2021. During the three and nine months ended September 30, 2022, $66,000 and $578,000 of loans, respectively, met the criteria for placement back on accrual status. During the three and nine months ended September 30, 2021, $96,000 and $433,000 of loans, respectively, met the criteria for placement back on accrual status. The criteria is generally a minimum of six months of consistent and timely payment performance under original or modified terms. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment. The analysis of the borrower’s ability to repay considers specific information, including but not limited to current financial information, historical payment experience, industry information, collateral levels and collateral types. A risk rating is assigned at loan origination and then monitored throughout the contractual term for possible risk rating changes. Satisfactory loans range from Excellent to Moderate Risk, but generally are loans supported by strong recent financial statements. The character and capacity of the borrower are strong, including reasonable project performance, good industry experience, liquidity and/or net worth. The probability of financial deterioration seems unlikely. Repayment is expected from approved sources over a reasonable period of time. Watch loans are identified when the borrower has capacity to perform according to terms; however, elements of uncertainty exist. Margins of debt service coverage may be narrow, historical patterns of financial performance may be erratic, collateral margins may be diminished and the borrower may be a new and/or thinly capitalized company. Some management weakness may also exist, the borrower may have somewhat limited access to other financial institutions, and that access may diminish in difficult economic times. Special Mention loans have weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects or the Bank’s credit position at some future date. It is a transitional grade that is closely monitored for improvement or deterioration. The Substandard rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment. Doubtful loans have all the weaknesses inherent to those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans considered loss are uncollectable and no longer included as an asset. All loans are analyzed for risk rating updates regularly. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Watch, Special Mention, Substandard or Doubtful are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by the credit review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. The following table present a summary of loans by category and risk rating separated by origination and loan class as of September 30, 2022. Term Loans by Origination Year Revolving 2022 YTD 2021 2020 2019 2018 Prior Loans Total (In Thousands) One- to four-family residential construction Satisfactory (1-4) $ 18,381 $ 10,834 $ 2,551 $ — $ — $ 216 $ — $ 31,982 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 18,381 10,834 2,551 — — 216 — 31,982 Subdivision construction Satisfactory (1-4) 4,240 26,362 757 204 142 608 664 32,977 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 4,240 26,362 757 204 142 608 664 32,977 Construction and land development Satisfactory (1-4) 15,441 6,579 5,451 8,280 771 5,285 596 42,403 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — 468 468 Total 15,441 6,579 5,451 8,280 771 5,285 1,064 42,871 Other construction Satisfactory (1-4) 83,318 318,197 161,223 20,336 — — — 583,074 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 83,318 318,197 161,223 20,336 — — — 583,074 One- to four-family residential Satisfactory (1-4) 309,787 220,044 131,304 74,776 41,077 101,610 803 879,401 Watch (5) — — — 181 89 1,301 60 1,631 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 2,108 84 2,192 Total 309,787 220,044 131,304 74,957 41,166 105,019 947 883,224 Other residential Satisfactory (1-4) 77,919 137,890 236,600 171,455 134,426 127,677 25,366 911,333 Watch (5) — — — — — 3,360 — 3,360 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 77,919 137,890 236,600 171,455 134,426 131,037 25,366 914,693 Commercial real estate Satisfactory (1-4) 204,359 174,769 112,680 214,892 201,908 610,957 31,602 1,551,167 Watch (5) — — — — — 23,548 — 23,548 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 1,814 — 1,814 Total 204,359 174,769 112,680 214,892 201,908 636,319 31,602 1,576,529 Commercial business Satisfactory (1-4) 30,491 66,722 40,232 15,906 9,853 65,411 79,849 308,464 Watch (5) — — — — — 48 — 48 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 30,491 66,722 40,232 15,906 9,853 65,459 79,849 308,512 Consumer Satisfactory (1-4) 18,712 12,761 6,700 3,526 4,146 18,424 132,025 196,294 Watch (5) — 30 — 8 — 161 100 299 Special Mention (6) — — — — — — — — Classified (7-9) — 5 13 — 5 233 388 644 Total 18,712 12,796 6,713 3,534 4,151 18,818 132,513 197,237 Combined Satisfactory (1-4) 762,648 974,158 697,498 509,375 392,323 930,188 270,905 4,537,095 Watch (5) — 30 — 189 89 28,418 160 28,886 Special Mention (6) — — — — — — — — Classified (7-9) — 5 13 — 5 4,155 940 5,118 Total $ 762,648 $ 974,193 $ 697,511 $ 509,564 $ 392,417 $ 962,761 $ 272,005 $ 4,571,099 The following table presents a summary of loans by category and risk rating separated by origination and loan class as of December 31, 2021. The remaining accretable discount of $429,000 has not been included in this table. Term Loans by Origination Year Revolving 2021 2020 2019 2018 2017 Prior Loans Total (In Thousands) One- to four-family residential construction Satisfactory (1-4) $ 23,081 $ 4,453 $ 763 $ — $ — $ 5 $ — $ 28,302 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 23,081 4,453 763 — — 5 — 28,302 Subdivision construction Satisfactory (1-4) 24,129 949 224 160 252 965 — 26,679 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 15 — 15 Total 24,129 949 224 160 252 980 — 26,694 Construction and land development Satisfactory (1-4) 9,968 15,965 11,115 2,591 3,013 4,184 527 47,363 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — 468 468 Total 9,968 15,965 11,115 2,591 3,013 4,184 995 47,831 Other construction Satisfactory (1-4) 145,991 298,710 130,502 42,302 — — — 617,505 Watch (5) — — — |
FDIC-ASSISTED ACQUIRED LOANS
FDIC-ASSISTED ACQUIRED LOANS | 9 Months Ended |
Sep. 30, 2022 | |
FDIC-ASSISTED ACQUIRED LOANS | |
FDIC-ASSISTED ACQUIRED LOANS | NOTE 7: FDIC-ASSISTED ACQUIRED LOANS On March 20, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and acquire certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kansas. The related loss sharing agreement was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On September 4, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Vantus Bank, a full service thrift headquartered in Sioux City, Iowa. The related loss sharing agreement was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On October 7, 2011, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Sun Security Bank, a full service bank headquartered in Ellington, Missouri. The related loss sharing agreement was terminated early, effective April 26, 2016, by mutual agreement of Great Southern Bank and the FDIC. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On April 27, 2012, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Inter Savings Bank, FSB (“InterBank”), a full service bank headquartered in Maple Grove, Minnesota. The related loss sharing agreement was terminated early, effective June 9, 2017, by mutual agreement of Great Southern Bank and the FDIC. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On June 20, 2014, Great Southern Bank entered into a purchase and assumption agreement with the FDIC to purchase a substantial portion of the loans and investment securities, as well as certain other assets, and assume all of the deposits, as well as certain other liabilities, of Valley Bank, a full-service bank headquartered in Moline, Illinois, with significant operations in Iowa. This transaction did not include a loss sharing agreement. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. The following table presents the balances of acquired loans related to the various FDIC-assisted transactions at September 30, 2022 and December 31, 2021. Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) September 30, 2022 Gross loans receivable $ 2,783 $ 4,410 $ 7,525 $ 26,253 $ 17,637 Balance of accretable discount due to change in expected losses — — — — — Net carrying value of loans receivable $ 2,783 $ 4,410 $ 7,525 $ 26,253 $ 17,637 December 31, 2021 Gross loans receivable $ 3,613 $ 5,304 $ 9,405 $ 32,645 $ 23,632 Balance of accretable discount due to change in expected losses (65) (19) (63) (58) (224) Net carrying value of loans receivable $ 3,548 $ 5,285 $ 9,342 $ 32,587 $ 23,408 |
OTHER REAL ESTATE OWNED AND REP
OTHER REAL ESTATE OWNED AND REPOSSESSIONS | 9 Months Ended |
Sep. 30, 2022 | |
OTHER REAL ESTATE OWNED AND REPOSSESSIONS. | |
OTHER REAL ESTATE OWNED AND REPOSSESSIONS | NOTE 8: OTHER REAL ESTATE OWNED AND REPOSSESSIONS Major classifications of other real estate owned were as follows: September 30, December 31, 2022 2021 (In Thousands) Foreclosed assets held for sale and repossessions One- to four-family construction $ — $ — Subdivision construction — — Land development — 315 Commercial construction — — One- to four-family residential — 183 Other residential — — Commercial real estate — — Commercial business — — Consumer 86 90 Foreclosed assets held for sale and repossessions 86 588 Other real estate owned not acquired through foreclosure 183 1,499 Other real estate owned and repossessions $ 269 $ 2,087 At September 30, 2022, other real estate owned not acquired through foreclosure included two properties, both of which were branch locations that were closed and held for sale. At December 31, 2021, other real estate owned not acquired through foreclosure included four properties, all of which were branch locations that were closed and held for sale. At September 30, 2022, residential mortgage loans totaling $480,000 were in the process of foreclosure. At December 31, 2021, residential mortgage loans totaling $125,000 were in the process of foreclosure. Expenses applicable to other real estate owned and repossessions included the following: Three Months Ended September 30, 2022 2021 (In Thousands) Net gains on sales of other real estate owned and repossessions $ (5) $ (1) Valuation write-downs — — Operating expenses, net of rental income 89 104 $ 84 $ 103 Nine Months Ended September 30, 2022 2021 (In Thousands) Net gains on sales of other real estate owned and repossessions $ (148) $ (169) Valuation write-downs 23 83 Operating expenses, net of rental income 438 559 $ 313 $ 473 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2022 | |
PREMISES AND EQUIPMENT | |
Premises and Equipment | NOTE 9: PREMISES AND EQUIPMENT Major classifications of premises and equipment, stated at cost, were as follows: September 30, December 31, 2022 2021 (In Thousands) Land $ 39,615 $ 39,440 Buildings and improvements 104,023 101,207 Furniture, fixtures and equipment 65,175 57,982 Operating leases right of use asset 7,645 7,715 216,458 206,344 Less: accumulated depreciation 77,048 73,611 $ 139,410 $ 132,733 Leases. Leases (Topic 842) January 1, 2019 $7.9 For the three months ended September 30, 2022 and 2021, lease expense was $408,000 and $386,000, respectively. For each of the nine months ended September 30, 2022 and 2021, lease expense was $1.2 million. The Company’s short-term leases related to offsite ATMs have both fixed and variable lease payment components, based on the number of transactions at the various ATMs. The variable portion of these lease payments is not material and the total lease expense related to ATMs for the three months ended September 30, 2022 and 2021 was $80,000 and $79,000, respectively. The total lease expense related to ATMs for the nine months ended September 30, 2022 and 2021 was $228,000 and $230,000, respectively. The Company does not sublease any of its leased facilities; however, it does lease to other parties portions of facilities that it owns. In terms of being the lessor in these circumstances, all of these lease agreements are classified as operating leases. In the three months ended September 30, 2022 and 2021, income recognized from these lease agreements was $300,000 and $323,000, respectively, and was included in occupancy and equipment expense. In the nine months ended September 30, 2022 and 2021, income recognized from these lease agreements was $890,000 and $903,000, respectively, and was included in occupancy and equipment expense. September 30, 2022 December 31, 2021 (In Thousands) Statement of Financial Condition Operating leases right of use asset $ 7,645 $ 7,715 Operating leases liability $ 7,839 $ 7,886 For the Three Months Ended September 30, 2022 September 30, 2021 (In Thousands) Statement of Income Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset) $ 408 $ 386 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 400 $ 375 Right of use assets obtained in exchange for lease obligations: Operating leases 618 74 For the Nine Months Ended September 30, 2022 September 30, 2021 (In Thousands) Statement of Income Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset) $ 1,166 $ 1,153 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,141 $ 1,117 Right of use assets obtained in exchange for lease obligations: Operating leases 618 74 At September 30, 2022, future expected lease payments for leases with terms exceeding one year were as follows (In Thousands): 2022 $ 303 2023 1,199 2024 1,146 2025 1,126 2026 1,063 2027 987 Thereafter 3,206 Future lease payments expected 9,030 Less: interest portion of lease payments (1,191) Lease liability $ 7,839 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2022 | |
DEPOSITS | |
DEPOSITS | NOTE 10: DEPOSITS September 30, December 31, 2022 2021 (In Thousands) Time Deposits: 0.00% - 0.99% $ 433,398 $ 825,217 1.00% - 1.99% 351,890 73,563 2.00% - 2.99% 500,334 55,509 3.00% - 3.99% 74,516 6,780 4.00% and above 519 — Total time deposits (weighted average rate 1.54% and 0.60%) 1,360,657 961,069 Non-interest-bearing demand deposits 1,112,344 1,209,822 Interest-bearing demand and savings deposits (weighted average rate 0.39% and 0.12%) 2,266,117 2,381,210 Total Deposits $ 4,739,118 $ 4,552,101 At September 30, 2022 and December 31, 2021, total time deposits included $361.6 million and $67.4 million, respectively, of brokered deposits, and $78.3 million and $203.8 million, respectively, of national time deposits initiated through internet channels. |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK | 9 Months Ended |
Sep. 30, 2022 | |
ADVANCES FROM FEDERAL HOME LOAN BANK | |
ADVANCES FROM FEDERAL HOME LOAN BANK | NOTE 11: ADVANCES FROM FEDERAL HOME LOAN BANK At September 30, 2022 and December 31, 2021, there were no outstanding term advances from the Federal Home Loan Bank of Des Moines (FHLBank advances). There were overnight funds borrowed from the Federal Home Loan Bank of Des Moines as of September 30, 2022, which are included below in Note 12 |
SECURITIES SOLD UNDER REVERSE R
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2022 | |
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS | |
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS | NOTE 12: SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS September 30, December 31, 2022 2021 (In Thousands) Notes payable – Community Development Equity Funds $ 1,119 $ 1,449 Other interest-bearing liabilities — 390 Securities sold under reverse repurchase agreements 124,187 137,116 Overnight borrowings from the Federal Home Loan Bank 98,000 — $ 223,306 $ 138,955 The Bank enters into sales of securities under agreements to repurchase (reverse repurchase agreements). Reverse repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the statements of financial condition. The dollar amount of securities underlying the agreements remains in the asset accounts. Securities underlying the agreements are being held by the Bank during the agreement period. All agreements are written on a term of one month or less. At December 31, 2021, other interest-bearing liabilities consisted of cash collateral held by the Company to satisfy minimum collateral posting thresholds with its derivative dealer counterparties representing the termination value of derivatives, which at such time were in a net asset position. Under the collateral agreements between the parties, either party may choose to provide cash or securities to satisfy its collateral requirements. The following table represents the Company’s securities sold under reverse repurchase agreements, by collateral type and remaining contractual maturity. September 30, 2022 December 31, 2021 Overnight and Overnight and Continuous Continuous (In Thousands) Mortgage-backed securities – GNMA, FNMA, FHLMC $ 124,187 $ 137,116 |
SUBORDINATED NOTES
SUBORDINATED NOTES | 9 Months Ended |
Sep. 30, 2022 | |
SUBORDINATED NOTES. | |
SUBORDINATED NOTES | NOTE 13: SUBORDINATED NOTES On August 8, 2016, the Company completed the public offering and sale of $75.0 million of its subordinated notes. The notes were due August 15, 2026 and had a fixed interest rate of 5.25% until August 15, 2021, at which time the rate was to become floating at a rate equal to three-month LIBOR plus 4.087%. The notes were sold at par, resulting in net proceeds, after underwriting discounts and commissions, legal, accounting and other professional fees, of approximately $73.5 million. Total debt issuance costs of approximately $1.5 million were deferred and amortized over the five-year expected life of the notes. On August 15, 2021, in accordance with the terms of the notes, the Company redeemed all $75.0 million aggregate principal amount of the notes at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest. On June 10, 2020, the Company completed the public offering and sale of $75.0 million of its subordinated notes. The notes are due June 15, 2030, and have a fixed interest rate of 5.50% until June 15, 2025, at which time the rate becomes floating at a rate expected to be equal to three-month term Secured Overnight Financing Rate (SOFR) plus 5.325%. The Company may call the notes at par beginning on June 15, 2025, and on any scheduled interest payment date thereafter. The notes were sold at par, resulting in net proceeds, after underwriting discounts and commissions, legal, accounting and other professional fees, of approximately $73.5 million. Total debt issuance costs of approximately $1.5 million were deferred and are being amortized over the expected life of the notes, which is five years. Amortization of the debt issuance costs during the three months ended September 30, 2022 and 2021 of both subordinated note offerings, to the extent applicable, totaled $74,000 and $146,000, respectively. Amortization of the debt issuance costs during the nine months ended September 30, 2022 and 2021 of both subordinated notes offerings, to the extent applicable, totaled $223,000 and $512,000, respectively. Amortization of the debt issuance costs is included in interest expense on subordinated notes in the consolidated statements of income, resulting in an imputed interest rate of 5.96% on the 2020 issuance. At September 30, 2022 and December 31, 2021, subordinated notes are summarized as follows: September 30, 2022 December 31, 2021 (In Thousands) Subordinated notes $ 75,000 $ 75,000 Less: unamortized debt issuance costs 793 1,016 $ 74,207 $ 73,984 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 14: INCOME TAXES Reconciliations of the Company’s effective tax rates to the statutory corporate tax rates were as follows: Three Months Ended September 30, 2022 2021 Tax at statutory rate 21.0 % 21.0 % Nontaxable interest and dividends (0.6) (0.3) Tax credits (1.7) (1.5) State taxes 1.6 1.4 Other 0.2 0.3 20.5 % 20.9 % Nine Months Ended September 30, 2022 2021 Tax at statutory rate 21.0 % 21.0 % Nontaxable interest and dividends (0.5) (0.3) Tax credits (1.7) (1.6) State taxes 1.7 1.5 Other — 0.3 20.5 % 20.9 % The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS). As a result, federal tax years through December 31, 2017 are now closed. The Company was previously under State of Missouri income and franchise tax examinations for its 2014 and 2015 tax years. The examinations concluded with one unresolved issue related to the exclusion of certain income in the calculation of Missouri income tax. The Missouri Department of Revenue denied the Company’s administrative protest regarding the 2014 and 2015 tax years’ examinations. In June 2021, the Company filed a formal protest with the Missouri Administrative Hearing Commission (MAHC), which has special jurisdiction to hear tax matters and is similar to a trial court, to continue defending the Company’s rights and associated tax position. The Company has engaged legal and tax advisors and continues to believe it will ultimately prevail on the issue; however, if the Company does not prevail, the tax obligation to the State of Missouri could be up to a total of $4.0 million for these tax years and additional amounts could be levied for certain subsequent tax years. The MAHC has received documents from each party but no hearings have occurred to date. The State of Illinois Department of Revenue recently completed a tax examination of the Company’s Illinois Business Income Tax for the 2018 and 2019 tax years. There were no proposed material changes to the returns. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 15: DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS ASC Topic 820, Fair Value Measurements ● Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. ● Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means. ● Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs. Financial instruments are broken down by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period. Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2022 and December 31, 2021: Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2022 Available-for-sale securities Agency mortgage-backed securities $ 288,255 $ — $ 288,255 $ — Agency collateralized mortgage obligations 70,776 — 70,776 — States and political subdivisions securities 62,329 — 65,362 — Small Business Administration securities 61,447 — 66,642 — Interest rate derivative asset 11,627 — 11,627 — Interest rate derivative liability (11,321) — (11,321) — December 31, 2021 Available-for-sale securities Agency mortgage-backed securities $ 229,441 $ — $ 229,441 $ — Agency collateralized mortgage obligations 204,277 — 204,277 — States and political subdivisions securities 40,015 — 40,015 — Small Business Administration securities 27,299 — 27,299 — Interest rate derivative asset 2,816 — 2,816 — Interest rate derivative liability (2,895) — (2,895) — The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at September 30, 2022 and December 31, 2021 as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the nine-month period ended September 30, 2022. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available-for-Sale Securities. Interest Rate Derivatives. Nonrecurring Measurements The following table presents the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the hierarchy in which such measurements fall at September 30, 2022 and December 31, 2021: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2022 Collateral-dependent loans $ 256 $ — $ — $ 256 Foreclosed assets held for sale $ — $ — $ — $ — December 31, 2021 Collateral-dependent loans $ 1,712 $ — $ — $ 1,712 Foreclosed assets held for sale $ 315 $ — $ — $ 315 The following is a description of valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying statements of financial condition, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Loans Held for Sale. Collateral-Dependent Loans Foreclosed Assets Held for Sale. Fair Value of Financial Instruments The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial condition at amounts other than fair value. Cash and Cash Equivalents and Federal Home Loan Bank Stock. Held-to-Maturity Securities. Loans and Interest Receivable. Deposits and Accrued Interest Payable. Short-Term Borrowings. Subordinated Debentures Issued to Capital Trusts. Subordinated Notes. Commitments to Originate Loans, Letters of Credit and Lines of Credit. The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value on the statements of financial condition. The fair values of certain of these instruments were calculated by discounting expected cash flows, which method involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. September 30, 2022 December 31, 2021 Carrying Fair Hierarchy Carrying Fair Hierarchy Amount Value Level Amount Value Level (In Thousands) Financial assets Cash and cash equivalents $ 189,006 $ 189,006 1 $ 717,267 $ 717,267 1 Held-to-maturity securities 206,485 180,411 2 — — 2 Mortgage loans held for sale 4,097 4,097 2 8,735 8,735 2 Loans, net of allowance for credit losses 4,497,109 4,422,371 3 4,007,500 4,001,362 3 Interest receivable 13,787 13,787 3 10,705 10,705 3 Investment in FHLBank stock and other assets 31,254 31,254 3 6,655 6,655 3 Financial liabilities Deposits 4,739,118 4,721,574 3 4,552,101 4,552,202 3 Short-term borrowings 223,306 223,306 3 138,955 138,955 3 Subordinated debentures 25,774 25,774 3 25,774 25,774 3 Subordinated notes 74,207 72,188 2 73,984 81,000 2 Interest payable 2,632 2,632 3 646 646 3 Unrecognized financial instruments (net of contractual value) Commitments to originate loans — — 3 — — 3 Letters of credit 47 47 3 50 50 3 Lines of credit — — 3 — — 3 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2022 | |
DERIVATIVES AND HEDGING ACTIVITIES | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 16: DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. In the normal course of business, the Company may use derivative financial instruments (primarily interest rate swaps) from time to time to assist in its interest rate risk management. The Company has interest rate derivatives that result from a service provided to certain qualifying loan customers that are not used to manage interest rate risk in the Company’s assets or liabilities and are not designated in a qualifying hedging relationship. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. In addition, the Company has interest rate derivatives that are designated in a qualified hedging relationship. Nondesignated Hedges The Company has interest rate swaps that are not designated as qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers, which the Company began offering during 2011. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As part of the Valley Bank FDIC-assisted acquisition, the Company acquired seven loans with related interest rate swaps. Valley’s swap program differed from the Company’s in that Valley did not have back to back swaps with the customer and a counterparty. All seven acquired loans with interest rate swaps have now paid off. The aggregate notional amount of the remaining Valley swaps was $482,000 at December 31, 2021. At September 30, 2022, the Company had seven interest rate swaps and one interest rate cap totaling $104.6 million in notional notional Cash Flow Hedges Interest Rate Swaps In March 2020, the Company and its swap counterparty mutually agreed to terminate the $400 million interest rate swap prior to its contractual maturity. The Company was paid $45.9 million from its swap counterparty as a result of this termination. This $45.9 million, less the accrued interest portion and net of deferred income taxes, is reflected in the Company’s stockholders’ equity as Accumulated Other Comprehensive Income and a portion of it will be accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025. This has the effect of reducing Accumulated Other Comprehensive Income and increasing Net Interest Income and Retained Earnings over the period. At September 30, 2022, the Company expected to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income in future periods. If this expectation changes and the amount of eligible variable rate loans decreases significantly, the Company may be required to recognize this interest income more rapidly. In February 2022, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap is $300 million with an effective date of March 1, 2022 and a termination date of March 1, 2024. Under the terms of the swap, the Company will receive a fixed rate of interest of 1.6725% and will pay a floating rate of interest equal to one-month USD-LIBOR (or the equivalent replacement rate if USD-LIBOR rate is not available). The floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly. The floating rate of interest was 2.553% as of September 30, 2022. The Company will receive net interest settlements, which will be recorded as loan interest income, to the extent that the fixed rate of interest exceeds one-month USD-LIBOR. If USD-LIBOR exceeds the fixed rate of interest in future periods, the Company will be required to pay net settlements to the counterparty and will record those net payments as a reduction of interest income on loans. On October 1, 2022, the floating rate of interest reset to 3.14271%. In July 2022, the Company entered into two interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of each swap The Company recorded loan interest income of $2.0 million on the terminated interest rate swap during each of the three months ended September 30, 2022 and 2021. The Company recorded loan interest income of $6.1 million on this interest rate swap during each of the nine months ended September 30, 2022 and 2021. The Company recorded negative loan interest income of $428,000 and loan interest income of $610,000, related to the February 2022 interest rate swap during the three and nine months ended September 30, 2022, respectively.The effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. During each of the three and nine months ended September 30, 2022 and 2021, the Company recognized no non-interest income related to changes in the fair value of these derivatives. At September 30, 2022, the Company expected to have an amount of eligible variable rate loans to continue to accrete this interest income in future periods. If this expectation changes and the amount of eligible variable rate loans decreases significantly, the Company may be required to recognize this interest income more rapidly. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition: Location in Fair Value Consolidated Statements September 30, December 31, of Financial Condition 2022 2021 (In Thousands) Derivatives designated as hedging instruments Active interest rate swap Accrued expenses and other liabilities $ 33,123 $ — Total derivatives designated as hedging instruments $ 33,123 $ — Derivatives not designated as hedging instruments Asset Derivatives Interest rate products Prepaid expenses and other assets $ 11,627 $ 2,816 Total derivatives not designated as hedging instruments $ 11,627 $ 2,816 Liability Derivatives Interest rate products Accrued expenses and other liabilities $ 11,321 $ 2,895 Total derivatives not designated as hedging instruments $ 11,321 $ 2,895 The following table presents the effect of cash flow hedge accounting through accumulated other comprehensive income on the statements of comprehensive income: Amount of Gain (Loss) Recognized in AOCI Three Months Ended September 30, Cash Flow Hedges 2022 2021 (In Thousands) Terminated interest rate swap, net of income taxes $ (1,580) $ (1,580) Active interest rate swaps, net of income taxes (19,898) — $ (21,478) $ (1,580) Amount of Gain (Loss) Recognized in AOCI Nine Months Ended September 30, Cash Flow Hedges 2022 2021 (In Thousands) Terminated interest rate swap, net of income taxes $ (4,691) $ (4,690) Active interest rate swaps, net of income taxes (25,570) — $ (30,261) $ (4,690) The following table presents the effect of cash flow hedge accounting on the statements of income: Three Months Ended September 30, Cash Flow Hedges 2022 2021 Interest Interest Interest Interest Income Expense Income Expense (In Thousands) Total Interest Income $ 59,657 $ — $ 49,640 $ — Total Interest Expense — 6,759 — 4,717 $ 59,657 $ 6,759 $ 49,640 $ 4,717 Terminated interest rate swap $ 2,047 $ — $ 2,048 $ — Active interest rate swaps (428) — — — $ 1,619 $ — $ 2,048 $ — Nine Months Ended September 30, Cash Flow Hedges 2022 2021 Interest Interest Interest Interest Income Expense Income Expense (In Thousands) Total Interest Income $ 159,028 $ — $ 150,725 $ — Total Interest Expense — 14,034 — 17,030 $ 159,028 $ 14,034 $ 150,725 $ 17,030 Terminated interest rate swap $ 6,076 $ — $ 6,076 $ — Active interest rate swaps 610 — — — $ 6,686 $ — $ 6,076 $ — Agreements with Derivative Counterparties The Company has agreements with its derivative counterparties. If the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Bank fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. Similarly, the Company could be required to settle its obligations under certain of its agreements if certain regulatory events occur, such as the issuance of a formal directive, or if the Company’s credit rating is downgraded below a specified level. At September 30, 2022, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers and active interest rate swaps to hedge risk related to the Company’s variable rate loans) in an overall net liability position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $21.7 million. The Company has minimum collateral posting thresholds with its derivative dealer counterparties. At September 30, 2022, the Company had given cash collateral to one derivative counterparty of $20.8 million to cover its fair value position. At December 31, 2021, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers) in a net liability position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $437,000. Additionally, the Company’s activity with one of its derivative counterparties met the level at which the Company’s minimum collateral posting thresholds take effect (requiring collateral to be given by the Company) and the Company posted collateral of $1.2 million to the derivative counterparty to satisfy the loan level agreements. Also at December 31, 2021, the Company had received cash collateral from another derivative counterparty of $390,000 to cover its fair value position with us. If the Company had breached any of these provisions at September 30, 2022 or December 31, 2021, it could have been required to settle its obligations under the agreements at the termination value. Under the collateral agreements between the parties, either party may choose to provide cash or securities to satisfy its collateral requirements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE | |
Schedule of earnings per share | Three Months Ended September 30, 2022 2021 (In Thousands, Except Per Share Data) Basic: Average common shares outstanding 12,304 13,534 Net income $ 18,133 $ 20,364 Per common share amount $ 1.47 $ 1.50 Diluted: Average common shares outstanding 12,304 13,534 Net effect of dilutive stock options – based on the treasury stock method using average market price 99 92 Diluted common shares 12,403 13,626 Net income $ 18,133 $ 20,364 Per common share amount $ 1.46 $ 1.49 Nine Months Ended September 30, 2022 2021 (In Thousands, Except Per Share Data) Basic: Average common shares outstanding 12,616 13,652 Net income $ 53,344 $ 59,346 Per common share amount $ 4.23 $ 4.35 Diluted: Average common shares outstanding 12,616 13,652 Net effect of dilutive stock options – based on the treasury stock method using average market price 94 92 Diluted common shares 12,710 13,744 Net income $ 53,344 $ 59,346 Per common share amount $ 4.20 $ 4.32 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENT SECURITIES | |
Schedule of investment securities | September 30, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 331,657 $ — $ 43,402 $ 288,255 Agency collateralized mortgage obligations 81,907 — 11,131 70,776 States and political subdivisions 68,089 11 5,771 62,329 Small Business Administration securities 68,148 — 6,701 61,447 $ 549,801 $ 11 $ 67,005 $ 482,807 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 219,624 $ 10,561 $ 744 $ 229,441 Agency collateralized mortgage obligations 204,332 2,443 2,498 204,277 States and political subdivisions 38,440 1,618 43 40,015 Small Business Administration securities 26,802 497 — 27,299 $ 489,198 $ 15,119 $ 3,285 $ 501,032 |
Schedule of amortized cost and fair values of securities | September 30, 2022 Amortized Gross Gross Amortized Fair Value Carrying Unrealized Unrealized Fair Cost Adjustment Value Gains Losses Value (In Thousands) HELD-TO-MATURITY SECURITIES: Agency mortgage-backed securities $ 74,140 $ 3,161 $ 77,301 $ — $ 10,353 $ 66,948 Agency collateralized mortgage obligations 126,054 (3,107) 122,947 — 14,658 108,289 States and political subdivisions 6,252 (15) 6,237 — 1,063 5,174 $ 206,446 $ 39 $ 206,485 $ — $ 26,074 $ 180,411 |
Schedule of amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity | Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Carrying Value Value (In Thousands) One year or less $ — $ — $ — $ — After one through two years — — — — After two through three years — — — — After three through four years — — — — After four through five years 2,287 2,264 — — After five through fifteen years 11,955 11,455 2,577 2,108 After fifteen years 53,847 48,610 3,660 3,066 Securities not due on a single maturity date 481,712 420,478 200,248 175,237 $ 549,801 $ 482,807 $ 206,485 $ 180,411 |
Schedule of fair value and unrealized loss for available-for-sale securities and held-to-maturity securities | September 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 281,226 $ (42,158) $ 7,027 $ (1,244) $ 288,253 $ (43,402) Agency collateralized mortgage obligations 38,814 (4,581) 31,962 (6,550) 70,776 (11,131) States and political subdivisions securities 59,847 (5,564) 1,236 (207) 61,083 (5,771) Small Business Administration securities 61,447 (6,701) — — 61,447 (6,701) $ 441,334 $ (59,004) $ 40,225 $ (8,001) $ 481,559 $ (67,005) September 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) HELD-TO-MATURITY SECURITIES: Agency mortgage-backed securities $ 59,095 (8,249) 7,852 (2,104) 66,947 (10,353) Agency collateralized mortgage obligations 62,540 (6,614) 45,750 (8,044) 108,290 (14,658) States and political subdivisions securities 1,761 (301) 3,413 (762) 5,174 (1,063) $ 123,396 $ (15,164) $ 57,015 $ (10,910) $ 180,411 $ (26,074) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) AVAILABLE-FOR-SALE SECURITIES: Agency mortgage-backed securities $ 47,769 $ (388) $ 10,583 $ (356) $ 58,352 $ (744) Agency collateralized mortgage obligations 92,727 (1,588) 16,298 (910) 109,025 (2,498) States and political subdivisions securities 6,537 (43) — — 6,537 (43) $ 147,033 $ (2,019) $ 26,881 $ (1,266) $ 173,914 $ (3,285) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of classes of loans | September 30, December 31, 2022 2021 (In Thousands) One- to four-family residential construction $ 31,982 $ 28,302 Subdivision construction 32,977 26,694 Land development 42,871 47,827 Commercial construction 583,074 617,505 Owner occupied one- to four-family residential 765,511 561,958 Non-owner occupied one- to four-family residential 117,713 119,635 Commercial real estate 1,576,529 1,476,230 Other residential 914,693 697,903 Commercial business 295,476 280,513 Industrial revenue bonds 13,036 14,203 Consumer auto 39,912 48,915 Consumer other 35,542 37,902 Home equity lines of credit 121,783 119,965 4,571,099 4,077,552 Allowance for credit losses (62,761) (60,754) Deferred loan fees and gains, net (11,229) (9,298) $ 4,497,109 $ 4,007,500 Weighted average interest rate 4.92 % 4.26 % |
Schedule of loans classified by aging analysis | September 30, 2022 Total Loans Over 90 Total > 90 Days Past 30-59 Days 60-89 Days Days Total Past Loans Due and Past Due Past Due Past Due Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ — $ — $ — $ 31,982 $ 31,982 $ — Subdivision construction — — — — 32,977 32,977 — Land development — — 468 468 42,403 42,871 — Commercial construction — — — — 583,074 583,074 — Owner occupied one- to four-family residential 281 292 821 1,394 764,117 765,511 — Non-owner occupied one- to four-family residential — — — — 117,713 117,713 — Commercial real estate — — 1,618 1,618 1,574,911 1,576,529 — Other residential — — — — 914,693 914,693 — Commercial business 52 — — 52 295,424 295,476 — Industrial revenue bonds — — — — 13,036 13,036 — Consumer auto 96 17 13 126 39,786 39,912 — Consumer other 278 12 65 355 35,187 35,542 — Home equity lines of credit — — 308 308 121,475 121,783 — Total $ 707 $ 321 $ 3,293 $ 4,321 $ 4,566,778 $ 4,571,099 $ — December 31, 2021 Total Loans Over 90 Total > 90 Days Past 30-59 Days 60-89 Days Days Total Past Loans Due and Past Due Past Due Past Due Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ — $ — $ — $ 28,302 $ 28,302 $ — Subdivision construction — — — — 26,694 26,694 — Land development 29 15 468 512 47,315 47,827 — Commercial construction — — — — 617,505 617,505 — Owner occupied one- to four-family residential 843 2 2,216 3,061 558,897 561,958 — Non-owner occupied one- to four-family residential — — — — 119,635 119,635 — Commercial real estate — — 2,006 2,006 1,474,224 1,476,230 — Other residential — — — — 697,903 697,903 — Commercial business 1,404 — — 1,404 279,109 280,513 — Industrial revenue bonds — — — — 14,203 14,203 — Consumer auto 229 31 34 294 48,621 48,915 — Consumer other 126 28 63 217 37,685 37,902 — Home equity lines of credit — — 636 636 119,329 119,965 — Total $ 2,631 $ 76 $ 5,423 $ 8,130 $ 4,069,422 $ 4,077,552 $ — |
Schedule of non-accruing loans | September 30, December 31, 2022 2021 (In Thousands) One- to four-family residential construction $ — $ — Subdivision construction — — Land development 468 468 Commercial construction — — Owner occupied one- to four-family residential 821 2,216 Non-owner occupied one- to four-family residential — — Commercial real estate 1,618 2,006 Other residential — — Commercial business — — Industrial revenue bonds — — Consumer auto 13 34 Consumer other 65 63 Home equity lines of credit 308 636 Total non-accruing loans $ 3,293 $ 5,423 |
Schedule of activity in the allowance for credit losses and unfunded commitments by portfolio segment | One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for credit losses Balance, June 30, 2021 $ 9,209 $ 15,299 $ 30,507 $ 2,215 $ 3,932 $ 5,440 $ 66,602 Provision (credit) charged to expense — — (3,000) — — — (3,000) Losses charged off (37) — — — (3) (446) (486) Recoveries 45 — 6 6 52 404 513 Balance, September 30, 2021 $ 9,217 $ 15,299 $ 27,513 $ 2,221 $ 3,981 $ 5,398 $ 63,629 Allowance for credit losses Balance, June 30, 2022 $ 9,434 $ 10,612 $ 28,604 $ 2,797 $ 4,365 $ 5,246 $ 61,058 Provision (credit) charged to expense 1,076 881 (1,105) 265 1,302 (419) 2,000 Losses charged off — — — — (50) (571) (621) Recoveries 20 — 1 — 15 288 324 Balance, September 30, 2022 $ 10,530 $ 11,493 $ 27,500 $ 3,062 $ 5,632 $ 4,544 $ 62,761 One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for credit losses Balance, December 31, 2020 $ 4,536 $ 9,375 $ 33,707 $ 3,521 $ 2,390 $ 2,214 $ 55,743 CECL adoption 4,533 5,832 (2,531) (1,165) 1,499 3,427 11,595 Balance, January 1, 2021 9,069 15,207 31,176 2,356 3,889 5,641 67,338 Provision (credit) charged to expense — — (3,700) — — — (3,700) Losses charged off (179) — — (154) (60) (1,647) (2,040) Recoveries 327 92 37 19 152 1,404 2,031 Balance, September 30, 2021 $ 9,217 $ 15,299 $ 27,513 $ 2,221 $ 3,981 $ 5,398 $ 63,629 Allowance for credit losses Balance, January 1, 2022 $ 9,364 $ 10,502 $ 28,604 $ 2,797 $ 4,142 $ 5,345 $ 60,754 Provision (credit) charged to expense 1,076 881 (1,105) 265 1,302 (419) 2,000 Losses charged off (38) — — — (50) (1,403) (1,491) Recoveries 128 110 1 — 238 1,021 1,498 Balance, September 30, 2022 $ 10,530 $ 11,493 $ 27,500 $ 3,062 $ 5,632 $ 4,544 $ 62,761 One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for unfunded commitments Balance, June 30, 2021 $ 760 $ 4,972 $ 417 $ 354 $ 821 $ 385 $ 7,709 Provision (credit) charged to expense 5 188 (79) — 534 (5) 643 Balance, September 30, 2021 $ 765 $ 5,160 $ 338 $ 354 $ 1,355 $ 380 $ 8,352 Allowance for unfunded commitments Balance, June 30, 2022 $ 1,138 $ 7,419 $ 501 $ 695 $ 1,406 $ 500 $ 11,659 Provision (credit) charged to expense (401) 967 17 553 146 33 1,315 Balance, September 30, 2022 $ 737 $ 8,386 $ 518 $ 1,248 $ 1,552 $ 533 $ 12,974 One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for unfunded commitments Balance, December 31, 2020 $ — $ — $ — $ — $ — $ — $ — CECL adoption 917 5,227 354 910 935 347 8,690 Balance, January 1, 2021 917 5,227 354 910 935 347 8,690 Provision (credit) charged to expense (152) (67) (16) (556) 420 33 (338) Balance, September 30, 2021 $ 765 $ 5,160 $ 338 $ 354 $ 1,355 $ 380 $ 8,352 Allowance for unfunded commitments Balance, January 1, 2022 $ 687 $ 5,703 $ 367 $ 908 $ 1,582 $ 382 $ 9,629 Provision (credit) charged to expense 50 2,683 151 340 (30) 151 3,345 Balance, September 30, 2022 $ 737 $ 8,386 $ 518 $ 1,248 $ 1,552 $ 533 $ 12,974 |
Schedule of amortized cost basis of collateral-dependent loans by class of loans | September 30, 2022 December 31, 2021 Principal Specific Principal Specific Balance Allowance Balance Allowance (In Thousands) One- to four-family residential construction $ — $ — $ — $ — Subdivision construction — — — — Land development 468 — 468 — Commercial construction — — — — Owner occupied one- to four- family residential 1,695 35 1,980 18 Non-owner occupied one- to four-family residential — — — — Commercial real estate 1,805 112 2,217 397 Other residential — — — — Commercial business — — — — Industrial revenue bonds — — — — Consumer auto — — — — Consumer other 159 80 160 80 Home equity lines of credit 138 — 377 — Total $ 4,265 $ 227 $ 5,202 $ 495 |
Schedule of TDRs by class | September 30, 2022 Accruing TDR Loans Non-accruing TDR Loans Total TDR Loans Number Balance Number Balance Number Balance (In Thousands) Construction and land development — $ — — $ — — $ — One- to four-family residential 12 1,005 3 103 15 1,108 Other residential — — — — — — Commercial real estate — — 2 1,609 2 1,609 Commercial business — — — — — — Consumer 14 220 7 49 21 269 26 $ 1,225 12 $ 1,761 38 $ 2,986 December 31, 2021 Accruing TDR Loans Non-accruing TDR Loans Total TDR Loans Number Balance Number Balance Number Balance (In Thousands) Construction and land development 1 $ 15 — $ — 1 $ 15 One- to four-family residential 10 579 12 1,059 22 1,638 Other residential — — — — — — Commercial real estate 1 85 1 1,726 2 1,811 Commercial business — — — — — — Consumer 26 323 13 64 39 387 38 $ 1,002 26 $ 2,849 64 $ 3,851 |
Schedule of newly restructured loans, which were considered TDRs by type of modification | Three Months Ended September 30, 2022 Total Interest Only Term Combination Modification (In Thousands) Commercial real estate $ — $ — $ — $ — Consumer — — — — $ — $ — $ — $ — Three Months Ended September 30, 2021 Total Interest Only Term Combination Modification (In Thousands) One- to four-family residential $ — $ — $ 134 $ 134 Consumer — — 10 10 $ — $ — $ 144 $ 144 Nine Months Ended September 30, 2022 Total Interest Only Term Combination Modification (In Thousands) Commercial real estate $ — $ — $ 247 $ 247 Consumer — 4 3 7 $ — $ 4 $ 250 $ 254 Nine Months Ended September 30, 2021 Total Interest Only Term Combination Modification (In Thousands) Commercial real estate $ 1,768 $ — $ — $ 1,768 One- to four-family residential — 157 134 291 Consumer — 100 10 110 $ 1,768 $ 257 $ 144 $ 2,169 |
Summary of loans by category and risk rating separated by origination and loan class | Term Loans by Origination Year Revolving 2022 YTD 2021 2020 2019 2018 Prior Loans Total (In Thousands) One- to four-family residential construction Satisfactory (1-4) $ 18,381 $ 10,834 $ 2,551 $ — $ — $ 216 $ — $ 31,982 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 18,381 10,834 2,551 — — 216 — 31,982 Subdivision construction Satisfactory (1-4) 4,240 26,362 757 204 142 608 664 32,977 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 4,240 26,362 757 204 142 608 664 32,977 Construction and land development Satisfactory (1-4) 15,441 6,579 5,451 8,280 771 5,285 596 42,403 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — 468 468 Total 15,441 6,579 5,451 8,280 771 5,285 1,064 42,871 Other construction Satisfactory (1-4) 83,318 318,197 161,223 20,336 — — — 583,074 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 83,318 318,197 161,223 20,336 — — — 583,074 One- to four-family residential Satisfactory (1-4) 309,787 220,044 131,304 74,776 41,077 101,610 803 879,401 Watch (5) — — — 181 89 1,301 60 1,631 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 2,108 84 2,192 Total 309,787 220,044 131,304 74,957 41,166 105,019 947 883,224 Other residential Satisfactory (1-4) 77,919 137,890 236,600 171,455 134,426 127,677 25,366 911,333 Watch (5) — — — — — 3,360 — 3,360 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 77,919 137,890 236,600 171,455 134,426 131,037 25,366 914,693 Commercial real estate Satisfactory (1-4) 204,359 174,769 112,680 214,892 201,908 610,957 31,602 1,551,167 Watch (5) — — — — — 23,548 — 23,548 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 1,814 — 1,814 Total 204,359 174,769 112,680 214,892 201,908 636,319 31,602 1,576,529 Commercial business Satisfactory (1-4) 30,491 66,722 40,232 15,906 9,853 65,411 79,849 308,464 Watch (5) — — — — — 48 — 48 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 30,491 66,722 40,232 15,906 9,853 65,459 79,849 308,512 Consumer Satisfactory (1-4) 18,712 12,761 6,700 3,526 4,146 18,424 132,025 196,294 Watch (5) — 30 — 8 — 161 100 299 Special Mention (6) — — — — — — — — Classified (7-9) — 5 13 — 5 233 388 644 Total 18,712 12,796 6,713 3,534 4,151 18,818 132,513 197,237 Combined Satisfactory (1-4) 762,648 974,158 697,498 509,375 392,323 930,188 270,905 4,537,095 Watch (5) — 30 — 189 89 28,418 160 28,886 Special Mention (6) — — — — — — — — Classified (7-9) — 5 13 — 5 4,155 940 5,118 Total $ 762,648 $ 974,193 $ 697,511 $ 509,564 $ 392,417 $ 962,761 $ 272,005 $ 4,571,099 The following table presents a summary of loans by category and risk rating separated by origination and loan class as of December 31, 2021. The remaining accretable discount of $429,000 has not been included in this table. Term Loans by Origination Year Revolving 2021 2020 2019 2018 2017 Prior Loans Total (In Thousands) One- to four-family residential construction Satisfactory (1-4) $ 23,081 $ 4,453 $ 763 $ — $ — $ 5 $ — $ 28,302 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 23,081 4,453 763 — — 5 — 28,302 Subdivision construction Satisfactory (1-4) 24,129 949 224 160 252 965 — 26,679 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 15 — 15 Total 24,129 949 224 160 252 980 — 26,694 Construction and land development Satisfactory (1-4) 9,968 15,965 11,115 2,591 3,013 4,184 527 47,363 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — 468 468 Total 9,968 15,965 11,115 2,591 3,013 4,184 995 47,831 Other construction Satisfactory (1-4) 145,991 298,710 130,502 42,302 — — — 617,505 Watch (5) — — — — — — — — Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 145,991 298,710 130,502 42,302 — — — 617,505 One- to four-family residential Satisfactory (1-4) 237,498 169,765 93,648 49,618 14,707 113,059 1,662 679,957 Watch (5) — — — 132 — 267 69 468 Special Mention (6) — — — — — — — — Classified (7-9) — — 144 — 50 1,223 83 1,500 Total 237,498 169,765 93,792 49,750 14,757 114,549 1,814 681,925 Other residential Satisfactory (1-4) 117,029 96,551 115,418 179,441 104,053 70,438 11,605 694,535 Watch (5) — — — — — 3,417 — 3,417 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 117,029 96,551 115,418 179,441 104,053 73,855 11,605 697,952 Commercial real estate Satisfactory (1-4) 141,868 113,226 220,580 231,321 196,166 521,545 22,785 1,447,491 Watch (5) — 410 582 — — 25,742 — 26,734 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — 2,006 — 2,006 Total 141,868 113,636 221,162 231,321 196,166 549,293 22,785 1,476,231 Commercial business Satisfactory (1-4) 67,049 28,743 23,947 16,513 24,126 58,116 76,187 294,681 Watch (5) — — — — — 58 — 58 Special Mention (6) — — — — — — — — Classified (7-9) — — — — — — — — Total 67,049 28,743 23,947 16,513 24,126 58,174 76,187 294,739 Consumer Satisfactory (1-4) 20,140 11,138 7,154 9,065 4,175 24,280 130,111 206,063 Watch (5) — — — 20 4 10 29 63 Special Mention (6) — — — — — — — — Classified (7-9) — 2 — 16 32 280 347 677 Total 20,140 11,140 7,154 9,101 4,211 24,570 130,487 206,803 Combined Satisfactory (1-4) 786,753 739,500 603,351 531,011 346,492 792,592 242,877 4,042,576 Watch (5) — 410 582 152 4 29,494 98 30,740 Special Mention (6) — — — — — — — — Classified (7-9) — 2 144 16 82 3,524 898 4,666 Total 786,753 $ 739,912 $ 604,077 $ 531,179 $ 346,578 $ 825,610 $ 243,873 $ 4,077,982 |
FDIC-ASSISTED ACQUIRED LOANS (T
FDIC-ASSISTED ACQUIRED LOANS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
FDIC-ASSISTED ACQUIRED LOANS | |
Balances of acquired loans related to the various FDIC-assisted transactions | Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) September 30, 2022 Gross loans receivable $ 2,783 $ 4,410 $ 7,525 $ 26,253 $ 17,637 Balance of accretable discount due to change in expected losses — — — — — Net carrying value of loans receivable $ 2,783 $ 4,410 $ 7,525 $ 26,253 $ 17,637 December 31, 2021 Gross loans receivable $ 3,613 $ 5,304 $ 9,405 $ 32,645 $ 23,632 Balance of accretable discount due to change in expected losses (65) (19) (63) (58) (224) Net carrying value of loans receivable $ 3,548 $ 5,285 $ 9,342 $ 32,587 $ 23,408 |
OTHER REAL ESTATE OWNED AND R_2
OTHER REAL ESTATE OWNED AND REPOSSESSIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
OTHER REAL ESTATE OWNED AND REPOSSESSIONS. | |
Schedule of major classifications of other real estate owned | September 30, December 31, 2022 2021 (In Thousands) Foreclosed assets held for sale and repossessions One- to four-family construction $ — $ — Subdivision construction — — Land development — 315 Commercial construction — — One- to four-family residential — 183 Other residential — — Commercial real estate — — Commercial business — — Consumer 86 90 Foreclosed assets held for sale and repossessions 86 588 Other real estate owned not acquired through foreclosure 183 1,499 Other real estate owned and repossessions $ 269 $ 2,087 |
Schedule of expenses applicable to other real estate owned and repossessions | Three Months Ended September 30, 2022 2021 (In Thousands) Net gains on sales of other real estate owned and repossessions $ (5) $ (1) Valuation write-downs — — Operating expenses, net of rental income 89 104 $ 84 $ 103 Nine Months Ended September 30, 2022 2021 (In Thousands) Net gains on sales of other real estate owned and repossessions $ (148) $ (169) Valuation write-downs 23 83 Operating expenses, net of rental income 438 559 $ 313 $ 473 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
PREMISES AND EQUIPMENT | |
Schedule of major classifications of premises and equipment, stated at cost | September 30, December 31, 2022 2021 (In Thousands) Land $ 39,615 $ 39,440 Buildings and improvements 104,023 101,207 Furniture, fixtures and equipment 65,175 57,982 Operating leases right of use asset 7,645 7,715 216,458 206,344 Less: accumulated depreciation 77,048 73,611 $ 139,410 $ 132,733 |
Schedule of information about operating lease | September 30, 2022 December 31, 2021 (In Thousands) Statement of Financial Condition Operating leases right of use asset $ 7,645 $ 7,715 Operating leases liability $ 7,839 $ 7,886 For the Three Months Ended September 30, 2022 September 30, 2021 (In Thousands) Statement of Income Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset) $ 408 $ 386 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 400 $ 375 Right of use assets obtained in exchange for lease obligations: Operating leases 618 74 For the Nine Months Ended September 30, 2022 September 30, 2021 (In Thousands) Statement of Income Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset) $ 1,166 $ 1,153 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,141 $ 1,117 Right of use assets obtained in exchange for lease obligations: Operating leases 618 74 |
Schedule of future expected lease payments for leases with terms exceeding one year | 2022 $ 303 2023 1,199 2024 1,146 2025 1,126 2026 1,063 2027 987 Thereafter 3,206 Future lease payments expected 9,030 Less: interest portion of lease payments (1,191) Lease liability $ 7,839 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
DEPOSITS | |
Schedule of deposits | September 30, December 31, 2022 2021 (In Thousands) Time Deposits: 0.00% - 0.99% $ 433,398 $ 825,217 1.00% - 1.99% 351,890 73,563 2.00% - 2.99% 500,334 55,509 3.00% - 3.99% 74,516 6,780 4.00% and above 519 — Total time deposits (weighted average rate 1.54% and 0.60%) 1,360,657 961,069 Non-interest-bearing demand deposits 1,112,344 1,209,822 Interest-bearing demand and savings deposits (weighted average rate 0.39% and 0.12%) 2,266,117 2,381,210 Total Deposits $ 4,739,118 $ 4,552,101 |
SECURITIES SOLD UNDER REVERSE_2
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS | |
Schedule of short-term debt | September 30, December 31, 2022 2021 (In Thousands) Notes payable – Community Development Equity Funds $ 1,119 $ 1,449 Other interest-bearing liabilities — 390 Securities sold under reverse repurchase agreements 124,187 137,116 Overnight borrowings from the Federal Home Loan Bank 98,000 — $ 223,306 $ 138,955 |
Schedule of securities sold under reverse repurchase agreements, by collateral type and remaining contractual maturity | September 30, 2022 December 31, 2021 Overnight and Overnight and Continuous Continuous (In Thousands) Mortgage-backed securities – GNMA, FNMA, FHLMC $ 124,187 $ 137,116 |
SUBORDINATED NOTES (Tables)
SUBORDINATED NOTES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SUBORDINATED NOTES. | |
Schedule of subordinated notes | September 30, 2022 December 31, 2021 (In Thousands) Subordinated notes $ 75,000 $ 75,000 Less: unamortized debt issuance costs 793 1,016 $ 74,207 $ 73,984 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
INCOME TAXES | |
Schedule of reconciliations of the effective tax rates to the statutory corporate tax rates | Three Months Ended September 30, 2022 2021 Tax at statutory rate 21.0 % 21.0 % Nontaxable interest and dividends (0.6) (0.3) Tax credits (1.7) (1.5) State taxes 1.6 1.4 Other 0.2 0.3 20.5 % 20.9 % Nine Months Ended September 30, 2022 2021 Tax at statutory rate 21.0 % 21.0 % Nontaxable interest and dividends (0.5) (0.3) Tax credits (1.7) (1.6) State taxes 1.7 1.5 Other — 0.3 20.5 % 20.9 % |
DISCLOSURES ABOUT FAIR VALUE _2
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements | Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2022 Available-for-sale securities Agency mortgage-backed securities $ 288,255 $ — $ 288,255 $ — Agency collateralized mortgage obligations 70,776 — 70,776 — States and political subdivisions securities 62,329 — 65,362 — Small Business Administration securities 61,447 — 66,642 — Interest rate derivative asset 11,627 — 11,627 — Interest rate derivative liability (11,321) — (11,321) — December 31, 2021 Available-for-sale securities Agency mortgage-backed securities $ 229,441 $ — $ 229,441 $ — Agency collateralized mortgage obligations 204,277 — 204,277 — States and political subdivisions securities 40,015 — 40,015 — Small Business Administration securities 27,299 — 27,299 — Interest rate derivative asset 2,816 — 2,816 — Interest rate derivative liability (2,895) — (2,895) — |
Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) September 30, 2022 Collateral-dependent loans $ 256 $ — $ — $ 256 Foreclosed assets held for sale $ — $ — $ — $ — December 31, 2021 Collateral-dependent loans $ 1,712 $ — $ — $ 1,712 Foreclosed assets held for sale $ 315 $ — $ — $ 315 |
Schedule of estimated fair values of the Company's financial instruments not recorded at fair value on the statements of financial condition | September 30, 2022 December 31, 2021 Carrying Fair Hierarchy Carrying Fair Hierarchy Amount Value Level Amount Value Level (In Thousands) Financial assets Cash and cash equivalents $ 189,006 $ 189,006 1 $ 717,267 $ 717,267 1 Held-to-maturity securities 206,485 180,411 2 — — 2 Mortgage loans held for sale 4,097 4,097 2 8,735 8,735 2 Loans, net of allowance for credit losses 4,497,109 4,422,371 3 4,007,500 4,001,362 3 Interest receivable 13,787 13,787 3 10,705 10,705 3 Investment in FHLBank stock and other assets 31,254 31,254 3 6,655 6,655 3 Financial liabilities Deposits 4,739,118 4,721,574 3 4,552,101 4,552,202 3 Short-term borrowings 223,306 223,306 3 138,955 138,955 3 Subordinated debentures 25,774 25,774 3 25,774 25,774 3 Subordinated notes 74,207 72,188 2 73,984 81,000 2 Interest payable 2,632 2,632 3 646 646 3 Unrecognized financial instruments (net of contractual value) Commitments to originate loans — — 3 — — 3 Letters of credit 47 47 3 50 50 3 Lines of credit — — 3 — — 3 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
DERIVATIVES AND HEDGING ACTIVITIES | |
Schedule of fair value of derivative Instruments and location in statements of financials | Location in Fair Value Consolidated Statements September 30, December 31, of Financial Condition 2022 2021 (In Thousands) Derivatives designated as hedging instruments Active interest rate swap Accrued expenses and other liabilities $ 33,123 $ — Total derivatives designated as hedging instruments $ 33,123 $ — Derivatives not designated as hedging instruments Asset Derivatives Interest rate products Prepaid expenses and other assets $ 11,627 $ 2,816 Total derivatives not designated as hedging instruments $ 11,627 $ 2,816 Liability Derivatives Interest rate products Accrued expenses and other liabilities $ 11,321 $ 2,895 Total derivatives not designated as hedging instruments $ 11,321 $ 2,895 |
Schedule of effect of cash flow hedge accounting through accumulated other comprehensive income on statements of comprehensive income | Amount of Gain (Loss) Recognized in AOCI Three Months Ended September 30, Cash Flow Hedges 2022 2021 (In Thousands) Terminated interest rate swap, net of income taxes $ (1,580) $ (1,580) Active interest rate swaps, net of income taxes (19,898) — $ (21,478) $ (1,580) Amount of Gain (Loss) Recognized in AOCI Nine Months Ended September 30, Cash Flow Hedges 2022 2021 (In Thousands) Terminated interest rate swap, net of income taxes $ (4,691) $ (4,690) Active interest rate swaps, net of income taxes (25,570) — $ (30,261) $ (4,690) |
Schedule of effect of cash flow hedge accounting on statements of operations | Three Months Ended September 30, Cash Flow Hedges 2022 2021 Interest Interest Interest Interest Income Expense Income Expense (In Thousands) Total Interest Income $ 59,657 $ — $ 49,640 $ — Total Interest Expense — 6,759 — 4,717 $ 59,657 $ 6,759 $ 49,640 $ 4,717 Terminated interest rate swap $ 2,047 $ — $ 2,048 $ — Active interest rate swaps (428) — — — $ 1,619 $ — $ 2,048 $ — Nine Months Ended September 30, Cash Flow Hedges 2022 2021 Interest Interest Interest Interest Income Expense Income Expense (In Thousands) Total Interest Income $ 159,028 $ — $ 150,725 $ — Total Interest Expense — 14,034 — 17,030 $ 159,028 $ 14,034 $ 150,725 $ 17,030 Terminated interest rate swap $ 6,076 $ — $ 6,076 $ — Active interest rate swaps 610 — — — $ 6,686 $ — $ 6,076 $ — |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
EARNINGS PER SHARE | ||||
Average common shares outstanding | 12,304 | 13,534 | 12,616 | 13,652 |
Net income | $ 18,133 | $ 20,364 | $ 53,344 | $ 59,346 |
Per common share amount | $ 1.47 | $ 1.50 | $ 4.23 | $ 4.35 |
Average common shares outstanding | 12,304 | 13,534 | 12,616 | 13,652 |
Net effect of dilutive stock options - based on the treasury stock method using average market price | 99 | 92 | 94 | 92 |
Diluted common shares | 12,403 | 13,626 | 12,710 | 13,744 |
Net income and net income available to common stockholders | $ 18,133 | $ 20,364 | $ 53,344 | $ 59,346 |
Per common share amount | $ 1.46 | $ 1.49 | $ 4.20 | $ 4.32 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
EARNINGS PER SHARE | ||||
Options to purchase shares of common stock outstanding not included in computation of diluted earnings per share because exercise price greater than average market price | 364,199 | 448,256 | 366,699 | 448,256 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 549,801 | $ 489,198 |
Gross Unrealized Gains | 11 | 15,119 |
Gross Unrealized Losses | 67,005 | 3,285 |
Fair Value | 482,807 | 501,032 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 331,657 | 219,624 |
Gross Unrealized Gains | 10,561 | |
Gross Unrealized Losses | 43,402 | 744 |
Fair Value | 288,255 | 229,441 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 81,907 | 204,332 |
Gross Unrealized Gains | 2,443 | |
Gross Unrealized Losses | 11,131 | 2,498 |
Fair Value | 70,776 | 204,277 |
States and political subdivisions | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 68,089 | 38,440 |
Gross Unrealized Gains | 11 | 1,618 |
Gross Unrealized Losses | 5,771 | 43 |
Fair Value | 62,329 | 40,015 |
Small Business Administration securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 68,148 | 26,802 |
Gross Unrealized Gains | 497 | |
Gross Unrealized Losses | 6,701 | |
Fair Value | $ 61,447 | $ 27,299 |
INVESTMENT SECURITIES - Held to
INVESTMENT SECURITIES - Held to maturity securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized cost | $ 206,446 | |
Fair Value Adjustment | 39 | |
Amortized Carrying Value | 206,485 | $ 0 |
Gross Unrealized Losses | 26,074 | |
Fair Value | 180,411 | |
Agency mortgage-backed securities | ||
Amortized cost | 74,140 | |
Fair Value Adjustment | 3,161 | |
Amortized Carrying Value | 77,301 | |
Gross Unrealized Losses | 10,353 | |
Fair Value | 66,948 | |
Agency collateralized mortgage obligations | ||
Amortized cost | 126,054 | |
Fair Value Adjustment | (3,107) | |
Amortized Carrying Value | 122,947 | |
Gross Unrealized Losses | 14,658 | |
Fair Value | 108,289 | |
States and political subdivisions | ||
Amortized cost | 6,252 | |
Fair Value Adjustment | (15) | |
Amortized Carrying Value | 6,237 | |
Gross Unrealized Losses | 1,063 | |
Fair Value | $ 5,174 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale - Amortized cost | ||
After four through five years | $ 2,287 | |
After five through fifteen years | 11,955 | |
After fifteen years | 53,847 | |
Securities not due on a single maturity date | 481,712 | |
Available-for-sale Securities, Amortized Cost, Total | 549,801 | $ 489,198 |
Available-for-Sale - Fair Value | ||
After four through five years | 2,264 | |
After five through fifteen years | 11,455 | |
After fifteen years | 48,610 | |
Securities not due on a single maturity date | 420,478 | |
Available-for-sale Securities, Fair Value, Total | 482,807 | 501,032 |
Held-to-Maturity - Amortized Carrying Value | ||
After five through fifteen years | 2,577 | |
After fifteen years | 3,660 | |
Securities not due on a single maturity date | 200,248 | |
Held-to-Maturity, Amortized Carrying Value, Total | 206,485 | $ 0 |
Held-to-Maturity - Fair Value | ||
After five through fifteen years | 2,108 | |
After fifteen years | 3,066 | |
Securities not due on a single maturity date | 175,237 | |
Held-to-maturity, Fair Value, Total | $ 180,411 |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
AVAILABLE-FOR-SALE SECURITIES: | ||
Available-for-sale securities, Less than Twelve Months, Fair Value | $ 441,334 | $ 147,033 |
Available-for-sale Securities, Less than 12 Months, Unrealized Loss | (59,004) | (2,019) |
Available-for-sale securities, Twelve Months or Longer, Fair Value | 40,225 | 26,881 |
Available-for-sale Securities,12 Months or Longer, Unrealized Loss | (8,001) | (1,266) |
Available-for-sale securities, Fair Value | 481,559 | 173,914 |
Available-for-sale securities, Unrealized Loss | (67,005) | (3,285) |
Allowance for credit losses on securities | 0 | |
HELD-TO-MATURITY SECURITIES: | ||
Held-to-maturity securities, Less than 12 Month, Fair Value | 123,396 | |
Held-to-maturity securities, Less than 12 Months, Unrealized Losses | (15,164) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 57,015 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | (10,910) | |
Held-to-maturity securities, Fair Value | 180,411 | |
Held-to-maturity securities, Unrealized Losses | (26,074) | |
Agency mortgage-backed securities. | ||
AVAILABLE-FOR-SALE SECURITIES: | ||
Available-for-sale securities, Less than Twelve Months, Fair Value | 281,226 | 47,769 |
Available-for-sale Securities, Less than 12 Months, Unrealized Loss | (42,158) | (388) |
Available-for-sale securities, Twelve Months or Longer, Fair Value | 7,027 | 10,583 |
Available-for-sale Securities,12 Months or Longer, Unrealized Loss | (1,244) | (356) |
Available-for-sale securities, Fair Value | 288,253 | 58,352 |
Available-for-sale securities, Unrealized Loss | (43,402) | (744) |
HELD-TO-MATURITY SECURITIES: | ||
Held-to-maturity securities, Less than 12 Month, Fair Value | 59,095 | |
Held-to-maturity securities, Less than 12 Months, Unrealized Losses | (8,249) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 7,852 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | (2,104) | |
Held-to-maturity securities, Fair Value | 66,947 | |
Held-to-maturity securities, Unrealized Losses | (10,353) | |
Agency collateralized mortgage obligations | ||
AVAILABLE-FOR-SALE SECURITIES: | ||
Available-for-sale securities, Less than Twelve Months, Fair Value | 38,814 | 92,727 |
Available-for-sale Securities, Less than 12 Months, Unrealized Loss | (4,581) | (1,588) |
Available-for-sale securities, Twelve Months or Longer, Fair Value | 31,962 | 16,298 |
Available-for-sale Securities,12 Months or Longer, Unrealized Loss | (6,550) | (910) |
Available-for-sale securities, Fair Value | 70,776 | 109,025 |
Available-for-sale securities, Unrealized Loss | (11,131) | (2,498) |
HELD-TO-MATURITY SECURITIES: | ||
Held-to-maturity securities, Less than 12 Month, Fair Value | 62,540 | |
Held-to-maturity securities, Less than 12 Months, Unrealized Losses | (6,614) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 45,750 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | (8,044) | |
Held-to-maturity securities, Fair Value | 108,290 | |
Held-to-maturity securities, Unrealized Losses | (14,658) | |
States and political subdivisions securities | ||
AVAILABLE-FOR-SALE SECURITIES: | ||
Available-for-sale securities, Less than Twelve Months, Fair Value | 59,847 | 6,537 |
Available-for-sale Securities, Less than 12 Months, Unrealized Loss | (5,564) | (43) |
Available-for-sale securities, Twelve Months or Longer, Fair Value | 1,236 | |
Available-for-sale Securities,12 Months or Longer, Unrealized Loss | (207) | |
Available-for-sale securities, Fair Value | 61,083 | 6,537 |
Available-for-sale securities, Unrealized Loss | (5,771) | $ (43) |
HELD-TO-MATURITY SECURITIES: | ||
Held-to-maturity securities, Less than 12 Month, Fair Value | 1,761 | |
Held-to-maturity securities, Less than 12 Months, Unrealized Losses | (301) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 3,413 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | (762) | |
Held-to-maturity securities, Fair Value | 5,174 | |
Held-to-maturity securities, Unrealized Losses | (1,063) | |
Small Business Administration securities | ||
AVAILABLE-FOR-SALE SECURITIES: | ||
Available-for-sale securities, Less than Twelve Months, Fair Value | 61,447 | |
Available-for-sale Securities, Less than 12 Months, Unrealized Loss | (6,701) | |
Available-for-sale securities, Fair Value | 61,447 | |
Available-for-sale securities, Unrealized Loss | $ (6,701) |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
INVESTMENT SECURITIES | ||||||
Securities transferred from available for sale portfolio to held to maturity portfolio | $ 226,500 | $ 0 | ||||
Net unrealized gains on transfers | 1,000 | |||||
Net of income tax | $ 775 | |||||
Net unrealized gains on transfers | 39 | |||||
Net of income tax | 30 | |||||
Fair value of debt securities reported less than their historical cost | $ 481,600 | $ 481,600 | $ 173,900 | |||
Debt securities reported less than their historical cost percent of investment portfolio | 99.70% | 99.70% | 34.70% | |||
Held-to-maturity securities | $ 206,485 | $ 206,485 | $ 0 | |||
Total fair value of held-to-maturity | 180,411 | 180,411 | ||||
Available for sale securities sold | 5,100 | $ 0 | 10,200 | $ 0 | ||
Available-for-sale securities, recognized gain | $ 31 | $ 38 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jan. 01, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | $ 4,571,099 | $ 4,077,552 | ||||
Allowance for credit losses | (62,761) | $ (61,058) | (60,754) | $ (63,629) | $ (66,602) | $ (67,338) |
Deferred loan fees and gains, net | (11,229) | (9,298) | ||||
Loans receivable, net | $ 4,497,109 | $ 4,007,500 | ||||
Weighted average interest rate | 4.92% | 4.26% | ||||
One- to four-family residential construction | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | $ 31,982 | $ 28,302 | ||||
Subdivision construction | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 32,977 | 26,694 | ||||
Land development | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 42,871 | 47,827 | ||||
Commercial construction | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 583,074 | 617,505 | ||||
Owner occupied one- to four-family residential | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 765,511 | 561,958 | ||||
Non-owner occupied one- to four-family residential | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 117,713 | 119,635 | ||||
Commercial real estate | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 1,576,529 | 1,476,230 | ||||
Other residential | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 914,693 | 697,903 | ||||
Commercial business | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 295,476 | 280,513 | ||||
Industrial revenue bonds | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 13,036 | 14,203 | ||||
Consumer auto | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 39,912 | 48,915 | ||||
Consumer other | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | 35,542 | 37,902 | ||||
Home equity lines of credit | ||||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||||||
Loans receivable | $ 121,783 | $ 119,965 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loans Classified by Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | $ 4,571,099 | $ 4,077,552 |
One- to four-family residential construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 31,982 | 28,302 |
Subdivision construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 32,977 | 26,694 |
Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 42,871 | 47,827 |
Commercial construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 583,074 | 617,505 |
Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 765,511 | 561,958 |
Non-owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 117,713 | 119,635 |
Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,576,529 | 1,476,230 |
Other residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 914,693 | 697,903 |
Commercial business | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 295,476 | 280,513 |
Industrial revenue bonds | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 13,036 | 14,203 |
Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 39,912 | 48,915 |
Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 35,542 | 37,902 |
Home equity lines of credit | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 121,783 | 119,965 |
30-59 Days Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 707 | 2,631 |
30-59 Days Past Due | Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 29 | |
30-59 Days Past Due | Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 281 | 843 |
30-59 Days Past Due | Commercial business | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 52 | 1,404 |
30-59 Days Past Due | Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 96 | 229 |
30-59 Days Past Due | Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 278 | 126 |
60-89 Days Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 321 | 76 |
60-89 Days Past Due | Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 15 | |
60-89 Days Past Due | Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 292 | 2 |
60-89 Days Past Due | Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 17 | 31 |
60-89 Days Past Due | Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 12 | 28 |
Over 90 Days Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 3,293 | 5,423 |
Over 90 Days Past Due | Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 468 | 468 |
Over 90 Days Past Due | Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 821 | 2,216 |
Over 90 Days Past Due | Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,618 | 2,006 |
Over 90 Days Past Due | Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 13 | 34 |
Over 90 Days Past Due | Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 65 | 63 |
Over 90 Days Past Due | Home equity lines of credit | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 308 | 636 |
Total Past Due | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 4,321 | 8,130 |
Total Past Due | Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 468 | 512 |
Total Past Due | Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,394 | 3,061 |
Total Past Due | Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,618 | 2,006 |
Total Past Due | Commercial business | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 52 | 1,404 |
Total Past Due | Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 126 | 294 |
Total Past Due | Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 355 | 217 |
Total Past Due | Home equity lines of credit | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 308 | 636 |
Current | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 4,566,778 | 4,069,422 |
Current | One- to four-family residential construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 31,982 | 28,302 |
Current | Subdivision construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 32,977 | 26,694 |
Current | Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 42,403 | 47,315 |
Current | Commercial construction | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 583,074 | 617,505 |
Current | Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 764,117 | 558,897 |
Current | Non-owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 117,713 | 119,635 |
Current | Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 1,574,911 | 1,474,224 |
Current | Other residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 914,693 | 697,903 |
Current | Commercial business | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 295,424 | 279,109 |
Current | Industrial revenue bonds | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 13,036 | 14,203 |
Current | Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 39,786 | 48,621 |
Current | Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | 35,187 | 37,685 |
Current | Home equity lines of credit | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Loans receivable | $ 121,475 | $ 119,329 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Financing Receivable, Nonaccrual (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | $ 3,293 | $ 5,423 |
Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | 468 | 468 |
Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | 821 | 2,216 |
Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | 1,618 | 2,006 |
Consumer auto | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | 13 | 34 |
Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | 65 | 63 |
Home equity lines of credit | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Total non-accruing loans | $ 308 | $ 636 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Financing Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | $ 61,058 | $ 66,602 | $ 60,754 | $ 67,338 | |
Provision (credit) charged to expense | 2,000 | (3,000) | 2,000 | (3,700) | $ (3,700) |
Losses charged off | (621) | (486) | (1,491) | (2,040) | |
Recoveries | 324 | 513 | 1,498 | 2,031 | |
Balance at end of period | 62,761 | 63,629 | 62,761 | 63,629 | 63,629 |
Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 11,659 | 7,709 | 9,629 | 8,690 | |
Provision (credit) charged to expense | 1,315 | 643 | 3,345 | (338) | |
Balance at end of period | 12,974 | 8,352 | 12,974 | 8,352 | 8,352 |
CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 11,595 | ||||
CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 8,690 | ||||
Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 55,743 | ||||
One- to four-family residential | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 9,434 | 9,209 | 9,364 | 9,069 | |
Provision (credit) charged to expense | 1,076 | 1,076 | |||
Losses charged off | (37) | (38) | (179) | ||
Recoveries | 20 | 45 | 128 | 327 | |
Balance at end of period | 10,530 | 9,217 | 10,530 | 9,217 | 9,217 |
One- to four-family residential | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 1,138 | 760 | 687 | 917 | |
Provision (credit) charged to expense | (401) | 5 | 50 | (152) | |
Balance at end of period | 737 | 765 | 737 | 765 | 765 |
One- to four-family residential | CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 4,533 | ||||
One- to four-family residential | CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 917 | ||||
One- to four-family residential | Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 4,536 | ||||
Other Residential | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 10,612 | 15,299 | 10,502 | 15,207 | |
Provision (credit) charged to expense | 881 | 881 | |||
Recoveries | 110 | 92 | |||
Balance at end of period | 11,493 | 15,299 | 11,493 | 15,299 | 15,299 |
Other Residential | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 7,419 | 4,972 | 5,703 | 5,227 | |
Provision (credit) charged to expense | 967 | 188 | 2,683 | (67) | |
Balance at end of period | 8,386 | 5,160 | 8,386 | 5,160 | 5,160 |
Other Residential | CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 5,832 | ||||
Other Residential | CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 5,227 | ||||
Other Residential | Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 9,375 | ||||
Commercial real estate | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 28,604 | 30,507 | 28,604 | 31,176 | |
Provision (credit) charged to expense | (1,105) | (3,000) | (1,105) | (3,700) | |
Recoveries | 1 | 6 | 1 | 37 | |
Balance at end of period | 27,500 | 27,513 | 27,500 | 27,513 | 27,513 |
Commercial real estate | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 501 | 417 | 367 | 354 | |
Provision (credit) charged to expense | 17 | (79) | 151 | (16) | |
Balance at end of period | 518 | 338 | 518 | 338 | 338 |
Commercial real estate | CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | (2,531) | ||||
Commercial real estate | CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 354 | ||||
Commercial real estate | Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 33,707 | ||||
Commercial Construction | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 2,797 | 2,215 | 2,797 | 2,356 | |
Provision (credit) charged to expense | 265 | 265 | |||
Losses charged off | (154) | ||||
Recoveries | 6 | 19 | |||
Balance at end of period | 3,062 | 2,221 | 3,062 | 2,221 | 2,221 |
Commercial Construction | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 695 | 354 | 908 | 910 | |
Provision (credit) charged to expense | 553 | 340 | (556) | ||
Balance at end of period | 1,248 | 354 | 1,248 | 354 | 354 |
Commercial Construction | CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | (1,165) | ||||
Commercial Construction | CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 910 | ||||
Commercial Construction | Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 3,521 | ||||
Commercial Business | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 4,365 | 3,932 | 4,142 | 3,889 | |
Provision (credit) charged to expense | 1,302 | 1,302 | |||
Losses charged off | (50) | (3) | (50) | (60) | |
Recoveries | 15 | 52 | 238 | 152 | |
Balance at end of period | 5,632 | 3,981 | 5,632 | 3,981 | 3,981 |
Commercial Business | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 1,406 | 821 | 1,582 | 935 | |
Provision (credit) charged to expense | 146 | 534 | (30) | 420 | |
Balance at end of period | 1,552 | 1,355 | 1,552 | 1,355 | 1,355 |
Commercial Business | CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 1,499 | ||||
Commercial Business | CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 935 | ||||
Commercial Business | Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 2,390 | ||||
Consumer. | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 5,246 | 5,440 | 5,345 | 5,641 | |
Provision (credit) charged to expense | (419) | (419) | |||
Losses charged off | (571) | (446) | (1,403) | (1,647) | |
Recoveries | 288 | 404 | 1,021 | 1,404 | |
Balance at end of period | 4,544 | 5,398 | 4,544 | 5,398 | 5,398 |
Consumer. | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 500 | 385 | 382 | 347 | |
Provision (credit) charged to expense | 33 | (5) | 151 | 33 | |
Balance at end of period | $ 533 | $ 380 | $ 533 | $ 380 | 380 |
Consumer. | CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 3,427 | ||||
Consumer. | CECL adoption | Allowance for unfunded commitment | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | 347 | ||||
Consumer. | Before CECL adoption | |||||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||||
Balance at beginning of period | $ 2,214 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Principal Balance | $ 4,265 | $ 5,202 |
Specific Allowance | 227 | 495 |
Land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Principal Balance | 468 | 468 |
Owner occupied one- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Principal Balance | 1,695 | 1,980 |
Specific Allowance | 35 | 18 |
Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Principal Balance | 1,805 | 2,217 |
Specific Allowance | 112 | 397 |
Consumer other | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Principal Balance | 159 | 160 |
Specific Allowance | 80 | 80 |
Home equity lines of credit | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Principal Balance | $ 138 | $ 377 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Troubled debt restructurings (TDRs) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 38 | 64 |
TDR loans, Balance | $ | $ 2,986 | $ 3,851 |
Construction and land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 1 | |
TDR loans, Balance | $ | $ 15 | |
One- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 15 | 22 |
TDR loans, Balance | $ | $ 1,108 | $ 1,638 |
Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 2 | 2 |
TDR loans, Balance | $ | $ 1,609 | $ 1,811 |
Consumer. | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 21 | 39 |
TDR loans, Balance | $ | $ 269 | $ 387 |
Accruing | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 26 | 38 |
TDR loans, Balance | $ | $ 1,225 | $ 1,002 |
Accruing | Construction and land development | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 1 | |
TDR loans, Balance | $ | $ 15 | |
Accruing | One- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 12 | 10 |
TDR loans, Balance | $ | $ 1,005 | $ 579 |
Accruing | Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 1 | |
TDR loans, Balance | $ | $ 85 | |
Accruing | Consumer. | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 14 | 26 |
TDR loans, Balance | $ | $ 220 | $ 323 |
Non-accruing | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 12 | 26 |
TDR loans, Balance | $ | $ 1,761 | $ 2,849 |
Non-accruing | One- to four-family residential | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 3 | 12 |
TDR loans, Balance | $ | $ 103 | $ 1,059 |
Non-accruing | Commercial real estate | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 2 | 1 |
TDR loans, Balance | $ | $ 1,609 | $ 1,726 |
Non-accruing | Consumer. | ||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
TDR Loans, Number | contract | 7 | 13 |
TDR loans, Balance | $ | $ 49 | $ 64 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Financing Receivable, Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||
Interest Only | $ 1,768 | ||
Term | $ 4 | 257 | |
Combination | $ 144 | 250 | 144 |
Total Modification | 144 | 254 | 2,169 |
One- to four-family residential | |||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||
Term | 157 | ||
Combination | 134 | 134 | |
Total Modification | 134 | 291 | |
Commercial real estate | |||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||
Interest Only | 1,768 | ||
Combination | 247 | ||
Total Modification | 247 | 1,768 | |
Consumer. | |||
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |||
Term | 4 | 100 | |
Combination | 10 | 3 | 10 |
Total Modification | $ 10 | $ 7 | $ 110 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loans by Risk Category and Past Due Status (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Year | $ 762,648 | $ 786,753 |
One Year Before | 974,193 | 739,912 |
Two Years Before | 697,511 | 604,077 |
Three Years Before | 509,564 | 531,179 |
Four Years Before | 392,417 | 346,578 |
Prior | 962,761 | 825,610 |
Revolving Loans | 272,005 | 243,873 |
Total | 4,571,099 | 4,077,982 |
Satisfactory | ||
Current Year | 762,648 | 786,753 |
One Year Before | 974,158 | 739,500 |
Two Years Before | 697,498 | 603,351 |
Three Years Before | 509,375 | 531,011 |
Four Years Before | 392,323 | 346,492 |
Prior | 930,188 | 792,592 |
Revolving Loans | 270,905 | 242,877 |
Total | 4,537,095 | 4,042,576 |
Watch | ||
Current Year | 0 | 0 |
One Year Before | 30 | 410 |
Two Years Before | 0 | 582 |
Three Years Before | 189 | 152 |
Four Years Before | 89 | 4 |
Prior | 28,418 | 29,494 |
Revolving Loans | 160 | 98 |
Total | 28,886 | 30,740 |
Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Classified | ||
Current Year | 0 | 0 |
One Year Before | 5 | 2 |
Two Years Before | 13 | 144 |
Three Years Before | 0 | 16 |
Four Years Before | 5 | 82 |
Prior | 4,155 | 3,524 |
Revolving Loans | 940 | 898 |
Total | 5,118 | 4,666 |
Commercial real estate. | ||
Current Year | 204,359 | 141,868 |
One Year Before | 174,769 | 113,636 |
Two Years Before | 112,680 | 221,162 |
Three Years Before | 214,892 | 231,321 |
Four Years Before | 201,908 | 196,166 |
Prior | 636,319 | 549,293 |
Revolving Loans | 31,602 | 22,785 |
Total | 1,576,529 | 1,476,231 |
Commercial real estate. | Satisfactory | ||
Current Year | 204,359 | 141,868 |
One Year Before | 174,769 | 113,226 |
Two Years Before | 112,680 | 220,580 |
Three Years Before | 214,892 | 231,321 |
Four Years Before | 201,908 | 196,166 |
Prior | 610,957 | 521,545 |
Revolving Loans | 31,602 | 22,785 |
Total | 1,551,167 | 1,447,491 |
Commercial real estate. | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 410 |
Two Years Before | 0 | 582 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 23,548 | 25,742 |
Revolving Loans | 0 | 0 |
Total | 23,548 | 26,734 |
Commercial real estate. | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate. | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 1,814 | 2,006 |
Revolving Loans | 0 | 0 |
Total | 1,814 | 2,006 |
Consumer | ||
Current Year | 18,712 | 20,140 |
One Year Before | 12,796 | 11,140 |
Two Years Before | 6,713 | 7,154 |
Three Years Before | 3,534 | 9,101 |
Four Years Before | 4,151 | 4,211 |
Prior | 18,818 | 24,570 |
Revolving Loans | 132,513 | 130,487 |
Total | 197,237 | 206,803 |
Consumer | Satisfactory | ||
Current Year | 18,712 | 20,140 |
One Year Before | 12,761 | 11,138 |
Two Years Before | 6,700 | 7,154 |
Three Years Before | 3,526 | 9,065 |
Four Years Before | 4,146 | 4,175 |
Prior | 18,424 | 24,280 |
Revolving Loans | 132,025 | 130,111 |
Total | 196,294 | 206,063 |
Consumer | Watch | ||
Current Year | 0 | 0 |
One Year Before | 30 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 8 | 20 |
Four Years Before | 0 | 4 |
Prior | 161 | 10 |
Revolving Loans | 100 | 29 |
Total | 299 | 63 |
Consumer | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Consumer | Classified | ||
Current Year | 0 | 0 |
One Year Before | 5 | 2 |
Two Years Before | 13 | 0 |
Three Years Before | 0 | 16 |
Four Years Before | 5 | 32 |
Prior | 233 | 280 |
Revolving Loans | 388 | 347 |
Total | 644 | 677 |
One- to four-family residential construction | ||
Current Year | 18,381 | 23,081 |
One Year Before | 10,834 | 4,453 |
Two Years Before | 2,551 | 763 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 216 | 5 |
Revolving Loans | 0 | 0 |
Total | 31,982 | 28,302 |
One- to four-family residential construction | Satisfactory | ||
Current Year | 18,381 | 23,081 |
One Year Before | 10,834 | 4,453 |
Two Years Before | 2,551 | 763 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 216 | 5 |
Revolving Loans | 0 | 0 |
Total | 31,982 | 28,302 |
One- to four-family residential construction | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
One- to four-family residential construction | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
One- to four-family residential construction | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Subdivision construction | ||
Current Year | 4,240 | 24,129 |
One Year Before | 26,362 | 949 |
Two Years Before | 757 | 224 |
Three Years Before | 204 | 160 |
Four Years Before | 142 | 252 |
Prior | 608 | 980 |
Revolving Loans | 664 | 0 |
Total | 32,977 | 26,694 |
Subdivision construction | Satisfactory | ||
Current Year | 4,240 | 24,129 |
One Year Before | 26,362 | 949 |
Two Years Before | 757 | 224 |
Three Years Before | 204 | 160 |
Four Years Before | 142 | 252 |
Prior | 608 | 965 |
Revolving Loans | 664 | 0 |
Total | 32,977 | 26,679 |
Subdivision construction | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Subdivision construction | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Subdivision construction | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 15 |
Revolving Loans | 0 | 0 |
Total | 0 | 15 |
Construction and land development | ||
Current Year | 15,441 | 9,968 |
One Year Before | 6,579 | 15,965 |
Two Years Before | 5,451 | 11,115 |
Three Years Before | 8,280 | 2,591 |
Four Years Before | 771 | 3,013 |
Prior | 5,285 | 4,184 |
Revolving Loans | 1,064 | 995 |
Total | 42,871 | 47,831 |
Construction and land development | Satisfactory | ||
Current Year | 15,441 | 9,968 |
One Year Before | 6,579 | 15,965 |
Two Years Before | 5,451 | 11,115 |
Three Years Before | 8,280 | 2,591 |
Four Years Before | 771 | 3,013 |
Prior | 5,285 | 4,184 |
Revolving Loans | 596 | 527 |
Total | 42,403 | 47,363 |
Construction and land development | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Construction and land development | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Construction and land development | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 468 | 468 |
Total | 468 | 468 |
Other Construction | ||
Current Year | 83,318 | 145,991 |
One Year Before | 318,197 | 298,710 |
Two Years Before | 161,223 | 130,502 |
Three Years Before | 20,336 | 42,302 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 583,074 | 617,505 |
Other Construction | Satisfactory | ||
Current Year | 83,318 | 145,991 |
One Year Before | 318,197 | 298,710 |
Two Years Before | 161,223 | 130,502 |
Three Years Before | 20,336 | 42,302 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 583,074 | 617,505 |
Other Construction | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Other Construction | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Other Construction | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
One- to four-family residential. | ||
Current Year | 309,787 | 237,498 |
One Year Before | 220,044 | 169,765 |
Two Years Before | 131,304 | 93,792 |
Three Years Before | 74,957 | 49,750 |
Four Years Before | 41,166 | 14,757 |
Prior | 105,019 | 114,549 |
Revolving Loans | 947 | 1,814 |
Total | 883,224 | 681,925 |
One- to four-family residential. | Satisfactory | ||
Current Year | 309,787 | 237,498 |
One Year Before | 220,044 | 169,765 |
Two Years Before | 131,304 | 93,648 |
Three Years Before | 74,776 | 49,618 |
Four Years Before | 41,077 | 14,707 |
Prior | 101,610 | 113,059 |
Revolving Loans | 803 | 1,662 |
Total | 879,401 | 679,957 |
One- to four-family residential. | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 181 | 132 |
Four Years Before | 89 | 0 |
Prior | 1,301 | 267 |
Revolving Loans | 60 | 69 |
Total | 1,631 | 468 |
One- to four-family residential. | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
One- to four-family residential. | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 144 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 50 |
Prior | 2,108 | 1,223 |
Revolving Loans | 84 | 83 |
Total | 2,192 | 1,500 |
Other residential | ||
Current Year | 77,919 | 117,029 |
One Year Before | 137,890 | 96,551 |
Two Years Before | 236,600 | 115,418 |
Three Years Before | 171,455 | 179,441 |
Four Years Before | 134,426 | 104,053 |
Prior | 131,037 | 73,855 |
Revolving Loans | 25,366 | 11,605 |
Total | 914,693 | 697,952 |
Other residential | Satisfactory | ||
Current Year | 77,919 | 117,029 |
One Year Before | 137,890 | 96,551 |
Two Years Before | 236,600 | 115,418 |
Three Years Before | 171,455 | 179,441 |
Four Years Before | 134,426 | 104,053 |
Prior | 127,677 | 70,438 |
Revolving Loans | 25,366 | 11,605 |
Total | 911,333 | 694,535 |
Other residential | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 3,360 | 3,417 |
Revolving Loans | 0 | 0 |
Total | 3,360 | 3,417 |
Other residential | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Other residential | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial business | ||
Current Year | 30,491 | 67,049 |
One Year Before | 66,722 | 28,743 |
Two Years Before | 40,232 | 23,947 |
Three Years Before | 15,906 | 16,513 |
Four Years Before | 9,853 | 24,126 |
Prior | 65,459 | 58,174 |
Revolving Loans | 79,849 | 76,187 |
Total | 308,512 | 294,739 |
Commercial business | Satisfactory | ||
Current Year | 30,491 | 67,049 |
One Year Before | 66,722 | 28,743 |
Two Years Before | 40,232 | 23,947 |
Three Years Before | 15,906 | 16,513 |
Four Years Before | 9,853 | 24,126 |
Prior | 65,411 | 58,116 |
Revolving Loans | 79,849 | 76,187 |
Total | 308,464 | 294,681 |
Commercial business | Watch | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 48 | 58 |
Revolving Loans | 0 | 0 |
Total | 48 | 58 |
Commercial business | Special Mention | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial business | Classified | ||
Current Year | 0 | 0 |
One Year Before | 0 | 0 |
Two Years Before | 0 | 0 |
Three Years Before | 0 | 0 |
Four Years Before | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Loans receivable, allowance for credit losses | $ 67,300,000 | $ 62,761,000 | $ 62,761,000 | $ 60,754,000 | ||
Troubled debt restructurings internal grading system substandard | 1,800,000 | 2,900,000 | ||||
TDR loans, Balance | 2,986,000 | 2,986,000 | 3,851,000 | |||
Non-accrual loans for no related allowance amortized cost | 2,400,000 | |||||
TDR loans evaluated on individual | 100,000 | |||||
After-tax effect decreased retained earnings | 14,200,000 | |||||
Troubled debt restructurings returned to accrual status | 66,000 | $ 96,000 | 578,000 | $ 433,000 | ||
Provision for Loan Losses | 2,000,000 | (3,000,000) | 2,000,000 | (3,700,000) | ||
Provision for Loan Losses | 2,000,000 | 3,000,000 | 2,000,000 | (3,700,000) | ||
Provision (credit) for unfunded commitments | 1,315,000 | 643,000 | 3,345,000 | (338,000) | ||
FDIC-acquired loans and remaining Accretable yield | $ 429,000 | |||||
Minimum loan balance with addition to TDR status for classification of loans into Collateral-dependent loans | 100,000 | |||||
Interest income | 0 | 0 | 0 | 0 | ||
Allowance for unfunded commitment | ||||||
Provision for Loan Losses | $ 1,300,000 | $ (643,000) | $ 3,300,000 | $ (338,000) | ||
Allowance for credit losses | 8,700,000 | |||||
PCI [Member] | ||||||
Allowance for credit losses | 1,900,000 | |||||
Adopted ASC 326 [Member] | ||||||
Allowance for credit losses | $ 11,600,000 |
FDIC-ASSISTED ACQUIRED LOANS (D
FDIC-ASSISTED ACQUIRED LOANS (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Sep. 30, 2022 | Jun. 09, 2017 | Apr. 26, 2016 | Jun. 20, 2014 | |
FDIC-ASSISTED ACQUIRED LOANS | |||||
Goodwill recorded on acquisition date | $ 6,081,000 | $ 11,029,000 | |||
Team Bank | |||||
FDIC-ASSISTED ACQUIRED LOANS | |||||
Gross loans receivable | 3,613,000 | 2,783,000 | |||
Balance of accretable discount due to change in expected losses | (65,000) | ||||
Net carrying value of loans receivable | 3,548,000 | 2,783,000 | |||
Goodwill recorded on acquisition date | $ 0 | ||||
Vantus Bank | |||||
FDIC-ASSISTED ACQUIRED LOANS | |||||
Gross loans receivable | 5,304,000 | 4,410,000 | |||
Balance of accretable discount due to change in expected losses | (19,000) | ||||
Net carrying value of loans receivable | 5,285,000 | 4,410,000 | |||
Goodwill recorded on acquisition date | 0 | ||||
Sun Security Bank | |||||
FDIC-ASSISTED ACQUIRED LOANS | |||||
Gross loans receivable | 9,405,000 | 7,525,000 | |||
Balance of accretable discount due to change in expected losses | (63,000) | ||||
Net carrying value of loans receivable | 9,342,000 | 7,525,000 | |||
Goodwill recorded on acquisition date | $ 0 | ||||
Inter Bank | |||||
FDIC-ASSISTED ACQUIRED LOANS | |||||
Gross loans receivable | 32,645,000 | 26,253,000 | |||
Balance of accretable discount due to change in expected losses | (58,000) | ||||
Net carrying value of loans receivable | 32,587,000 | 26,253,000 | |||
Goodwill recorded on acquisition date | $ 0 | ||||
Valley Bank | |||||
FDIC-ASSISTED ACQUIRED LOANS | |||||
Gross loans receivable | 23,632,000 | 17,637,000 | |||
Balance of accretable discount due to change in expected losses | (224,000) | ||||
Net carrying value of loans receivable | $ 23,408,000 | $ 17,637,000 | |||
Goodwill recorded on acquisition date | $ 0 |
OTHER REAL ESTATE OWNED AND R_3
OTHER REAL ESTATE OWNED AND REPOSSESSIONS - Schedule of Major Classifications of Foreclosed Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Foreclosed assets held for sale and repossessions | $ 86 | $ 588 |
Other real estate owned not acquired through foreclosure | 183 | 1,499 |
Other real estate owned and repossessions, net | 269 | 2,087 |
One- to four-family residential. | ||
Foreclosed assets held for sale and repossessions | 183 | |
Land development | ||
Foreclosed assets held for sale and repossessions | 315 | |
Consumer | ||
Foreclosed assets held for sale and repossessions | $ 86 | $ 90 |
OTHER REAL ESTATE OWNED AND R_4
OTHER REAL ESTATE OWNED AND REPOSSESSIONS (Details) | Sep. 30, 2022 USD ($) property | Dec. 31, 2021 USD ($) property |
Number of real estate properties | property | 2 | 4 |
Residential Mortgage | ||
Mortgage loans in process of foreclosure, amount | $ | $ 480,000 | $ 125,000 |
OTHER REAL ESTATE OWNED AND R_5
OTHER REAL ESTATE OWNED AND REPOSSESSIONS - Schedule of Expenses Applicable to Foreclosed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
OTHER REAL ESTATE OWNED AND REPOSSESSIONS. | ||||
Net gains on sales of other real estate owned and repossessions | $ (5) | $ (1) | $ (148) | $ (169) |
Valuation write-downs | 23 | 83 | ||
Operating expenses, net of rental income | 89 | 104 | 438 | 559 |
Expenses on real estate and repossessions | $ 84 | $ 103 | $ 313 | $ 473 |
PREMISES AND EQUIPMENT - Proper
PREMISES AND EQUIPMENT - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
PREMISES AND EQUIPMENT | ||
Land | $ 39,615 | $ 39,440 |
Buildings and improvements | 104,023 | 101,207 |
Furniture, fixtures and equipment | 65,175 | 57,982 |
Operating leases right of use asset | 7,645 | 7,715 |
Premises and equipment, gross | 216,458 | 206,344 |
Less: accumulated depreciation | 77,048 | 73,611 |
Total premises and equipment | $ 139,410 | $ 132,733 |
PREMISES AND EQUIPMENT- Additio
PREMISES AND EQUIPMENT- Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2018 | |
Operating leases right of use asset | $ 7,645,000 | $ 7,645,000 | $ 7,715,000 | |||
Operating leases liability | $ 7,839,000 | $ 7,839,000 | $ 7,886,000 | |||
Weighted-average lease term | 8 years 4 months 24 days | 8 years 4 months 24 days | ||||
Operating lease, weighted average discount rate, percent | 3.42% | 3.42% | ||||
Operating lease, expense | $ 408,000 | $ 386,000 | $ 1,166,000 | $ 1,153,000 | ||
Lease expense related to ATMs | 80,000 | 79,000 | 228,000 | 230,000 | ||
Income recognized from lessor agreements | $ 300,000 | $ 323,000 | $ 890,000 | $ 903,000 | ||
ASU 2016-02 | Adjustment | ||||||
Operating leases right of use asset | $ 9,500,000 | |||||
Operating leases liability | $ 9,500,000 | |||||
Minimum | ||||||
Lessee expected lease terms | P0Y6M | |||||
Maximum | ||||||
Lessee expected lease terms | P16Y2M12D |
PREMISES AND EQUIPMENT- Right o
PREMISES AND EQUIPMENT- Right of Use Assets and Lease Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Statement of Financial Condition | |||||
Operating leases right of use asset | $ 7,645,000 | $ 7,645,000 | $ 7,715,000 | ||
Operating leases liability | 7,839,000 | 7,839,000 | $ 7,886,000 | ||
Statement of Income | |||||
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset) | 408,000 | $ 386,000 | 1,166,000 | $ 1,153,000 | |
Supplemental Cash Flow Information | |||||
Operating cash flows from operating leases | 400,000 | 375,000 | 1,141,000 | 1,117,000 | |
Operating leases | $ 618,000 | $ 74,000 | $ 618,000 | $ 74,000 |
PREMISES AND EQUIPMENT- Future
PREMISES AND EQUIPMENT- Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Future expected lease payments | |
2022 | $ 303 |
2023 | 1,199 |
2024 | 1,146 |
2025 | 1,126 |
2026 | 1,063 |
2027 | 987 |
Thereafter | 3,206 |
Future lease payments expected | 9,030 |
Less: interest portion of lease payments | (1,191) |
Lease liability | $ 7,839 |
DEPOSITS - Schedule of Deposit
DEPOSITS - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Time deposits | $ 1,360,657 | $ 961,069 |
Non-interest-bearing demand deposits | 1,112,344 | 1,209,822 |
Interest-bearing checking and savings accounts | 2,266,117 | 2,381,210 |
Total Deposits | $ 4,739,118 | $ 4,552,101 |
Weighted average interest rate on certificates of deposit | 1.54% | 0.60% |
Weighted average rate on interest-bearing demand and savings deposits | 0.39% | 0.12% |
Interest-bearing domestic deposits, brokered | $ 361,600 | $ 67,400 |
Interest-bearing domestic deposit, national time deposits | 78,300 | 203,800 |
0.00% - 0.99% | ||
Time deposits | $ 433,398 | 825,217 |
0.00% - 0.99% | Minimum | ||
Weighted average interest rate on certificates of deposit | 0% | |
0.00% - 0.99% | Maximum | ||
Weighted average interest rate on certificates of deposit | 0.99% | |
1.00% - 1.99% | ||
Time deposits | $ 351,890 | 73,563 |
1.00% - 1.99% | Minimum | ||
Weighted average interest rate on certificates of deposit | 1% | |
1.00% - 1.99% | Maximum | ||
Weighted average interest rate on certificates of deposit | 1.99% | |
2.00% - 2.99% | ||
Time deposits | $ 500,334 | 55,509 |
2.00% - 2.99% | Minimum | ||
Weighted average interest rate on certificates of deposit | 2% | |
2.00% - 2.99% | Maximum | ||
Weighted average interest rate on certificates of deposit | 2.99% | |
3.00% and above | ||
Time deposits | $ 74,516 | $ 6,780 |
3.00% - 3.99% | Minimum | ||
Weighted average interest rate on certificates of deposit | 3% | |
3.00% - 3.99% | Maximum | ||
Weighted average interest rate on certificates of deposit | 3.99% | |
4% and above | ||
Time deposits | $ 519 | |
4% and above | Minimum | ||
Weighted average interest rate on certificates of deposit | 4% |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Advances from Federal Home Loan Banks | $ 0 | $ 0 |
Federal Home Loan Bank of Des Moines | ||
Long-term line of credit | $ 0 |
SECURITIES SOLD UNDER REVERSE_3
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS - Schedule of Short-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS | ||
Notes payable - Community Development Equity Funds | $ 1,119 | $ 1,449 |
Other interest-bearing liabilities | 390 | |
Securities sold under reverse repurchase agreements | 124,187 | 137,116 |
Overnight borrowings from the Federal Home Loan Bank | 98,000 | |
Short-term debt, total | $ 223,306 | $ 138,955 |
SECURITIES SOLD UNDER REVERSE_4
SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS - Schedule of Repurchase Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities sold under reverse repurchase agreements with customers | $ 124,187 | $ 137,116 |
Overnight and Continuous | Agency mortgage-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities sold under reverse repurchase agreements with customers | $ 124,187 | $ 137,116 |
SUBORDINATED NOTES (Details)
SUBORDINATED NOTES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Aug. 15, 2021 | Sep. 10, 2020 | Jun. 10, 2020 | Aug. 08, 2016 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
SUBORDINATED NOTES | ||||||||
Subordinated note interest rate | 5.50% | |||||||
Senior Subordinated Notes | ||||||||
SUBORDINATED NOTES | ||||||||
Public offering and sale of subordinated notes | $ 75,000,000 | |||||||
Subordinated note interest rate | 5.25% | |||||||
Proceeds from issuance of senior long-term debt | $ 73,500,000 | $ 73,500,000 | ||||||
Deferred debt issuance costs | $ 1,500,000 | $ 1,500,000 | ||||||
Expected life of the notes | 5 years | 5 years | ||||||
Principal amount redeemed | $ 75,000,000 | |||||||
Redemption price as percentage of aggregate principal balance | 100% | |||||||
Amortization of the debt issuance costs | $ 74,000 | $ 146,000 | $ 223,000 | $ 512,000 | ||||
Subordinated borrowing, interest rate | 5.96% | |||||||
Senior Subordinated Notes | SOFR | ||||||||
SUBORDINATED NOTES | ||||||||
Spread on variable rate | 5.325% | |||||||
Senior Subordinated Notes | 90-day LIBOR | ||||||||
SUBORDINATED NOTES | ||||||||
Spread on variable rate | 4.087% |
SUBORDINATED NOTES - Schedule o
SUBORDINATED NOTES - Schedule of Subordinated Borrowing (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
SUBORDINATED NOTES. | ||
Subordinated notes | $ 75,000 | $ 75,000 |
Less: unamortized debt issuance costs | 793 | 1,016 |
Subordinated Debt | $ 74,207 | $ 73,984 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
INCOME TAXES | ||||
Tax at statutory rate | 21% | 21% | 21% | 21% |
Nontaxable interest and dividends | (0.60%) | (0.30%) | (0.50%) | (0.30%) |
Tax credits | (1.70%) | (1.50%) | (1.70%) | (1.60%) |
State taxes | 1.60% | 1.40% | 1.70% | 1.50% |
Other | 0.20% | 0.30% | 0.30% | |
Effective Income Tax Rate Reconciliation, Percent, Total | 20.50% | 20.90% | 20.50% | 20.90% |
Tax obligation under tax examinations | $ 4 |
DISCLOSURES ABOUT FAIR VALUE _3
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value, Assets Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Agency mortgage-backed securities | ||
Available-for-Sale Securities | $ 288,255 | $ 229,441 |
Agency collateralized mortgage obligations | ||
Available-for-Sale Securities | 70,776 | 204,277 |
States and political subdivisions | ||
Available-for-Sale Securities | 62,329 | 40,015 |
Small Business Administration securities | ||
Available-for-Sale Securities | 61,447 | 27,299 |
Interest rate derivative asset | ||
Available-for-Sale Securities | 11,627 | 2,816 |
Interest rate derivative liability | ||
Available-for-Sale Securities - Liabilities | (11,321) | (2,895) |
Level 2 | Agency mortgage-backed securities | ||
Available-for-Sale Securities | 288,255 | 229,441 |
Level 2 | Agency collateralized mortgage obligations | ||
Available-for-Sale Securities | 70,776 | 204,277 |
Level 2 | States and political subdivisions | ||
Available-for-Sale Securities | 65,362 | 40,015 |
Level 2 | Small Business Administration securities | ||
Available-for-Sale Securities | 66,642 | 27,299 |
Level 2 | Interest rate derivative asset | ||
Available-for-Sale Securities | 11,627 | 2,816 |
Level 2 | Interest rate derivative liability | ||
Available-for-Sale Securities - Liabilities | (11,321) | (2,895) |
Level 3 | ||
Available-for-Sale Securities | $ 0 | $ 0 |
DISCLOSURES ABOUT FAIR VALUE _4
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Collateral-dependent loans | ||
Collateral-dependent loans and foreclosed assets held for sale | $ 256 | $ 1,712 |
Foreclosed assets held for sale | ||
Collateral-dependent loans and foreclosed assets held for sale | 315 | |
Level 3 | Collateral-dependent loans | ||
Collateral-dependent loans and foreclosed assets held for sale | $ 256 | 1,712 |
Level 3 | Foreclosed assets held for sale | ||
Collateral-dependent loans and foreclosed assets held for sale | $ 315 |
DISCLOSURES ABOUT FAIR VALUE _5
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule Of Financial Instruments Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | Level 1 | Cash and Cash Equivalents | ||
Financial assets | $ 189,006 | $ 717,267 |
Carrying Amount | Level 2 | Subordinated notes | ||
Financial liabilities | 74,207 | 73,984 |
Carrying Amount | Level 2 | Held-to-maturity securities | ||
Financial assets | 206,485 | |
Carrying Amount | Level 2 | Mortgage loans held for sale | ||
Financial assets | 4,097 | 8,735 |
Carrying Amount | Level 3 | Subordinated debentures | ||
Financial liabilities | 25,774 | 25,774 |
Carrying Amount | Level 3 | Deposits | ||
Financial liabilities | 4,739,118 | 4,552,101 |
Carrying Amount | Level 3 | Short-term borrowings | ||
Financial liabilities | 223,306 | 138,955 |
Carrying Amount | Level 3 | Unrecognized financial instruments (net of contractual value) | Letter of credit | ||
Letters of credit | 47 | 50 |
Carrying Amount | Level 3 | Interest payable | ||
Financial liabilities | 2,632 | 646 |
Carrying Amount | Level 3 | Loans, net of allowance for credit losses | ||
Financial assets | 4,497,109 | 4,007,500 |
Carrying Amount | Level 3 | Interest receivable. | ||
Financial assets | 13,787 | 10,705 |
Carrying Amount | Level 3 | Investment in FHLB stock and other assets | ||
Financial assets | 31,254 | 6,655 |
Fair Value | Level 1 | Cash and Cash Equivalents | ||
Financial assets | 189,006 | 717,267 |
Fair Value | Level 2 | Subordinated notes | ||
Financial liabilities | 72,188 | 81,000 |
Fair Value | Level 2 | Held-to-maturity securities | ||
Financial assets | 180,411 | |
Fair Value | Level 2 | Mortgage loans held for sale | ||
Financial assets | 4,097 | 8,735 |
Fair Value | Level 3 | Subordinated debentures | ||
Financial liabilities | 25,774 | 25,774 |
Fair Value | Level 3 | Deposits | ||
Financial liabilities | 4,721,574 | 4,552,202 |
Fair Value | Level 3 | Short-term borrowings | ||
Financial liabilities | 223,306 | 138,955 |
Fair Value | Level 3 | Unrecognized financial instruments (net of contractual value) | Letter of credit | ||
Letters of credit | 47 | 50 |
Fair Value | Level 3 | Interest payable | ||
Financial liabilities | 2,632 | 646 |
Fair Value | Level 3 | Loans, net of allowance for credit losses | ||
Financial assets | 4,422,371 | 4,001,362 |
Fair Value | Level 3 | Interest receivable. | ||
Financial assets | 13,787 | 10,705 |
Fair Value | Level 3 | Investment in FHLB stock and other assets | ||
Financial assets | $ 31,254 | $ 6,655 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Non-designated Hedges (Details) - Interest Rate Swaps - Nondesignated Hedges | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
DERIVATIVES AND HEDGING ACTIVITIES | |||||
Number of participation loans purchased | item | 1 | 1 | |||
Participating mortgage loans, mortgage obligations amount | $ 8,900,000 | $ 8,900,000 | |||
Gain (Loss) on fair value hedges recognized in earnings | $ 88,000 | $ 45,000 | $ 385,000 | $ 340,000 | |
Commercial customers | |||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||
Number of interest rate derivatives held | 7 | 7 | 11 | ||
Notional amount of derivatives | $ 104,600,000 | $ 104,600,000 | |||
Third Party Customers | |||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||
Number of interest rate derivatives held | 7 | 7 | 11 | ||
Notional amount of derivatives | $ 104,600,000 | $ 104,600,000 | $ 93,900,000 | ||
Valley Bank | |||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||
Notional amount of derivatives | $ 482,000 | ||||
Number Of Loans Acquired | item | 7 | 7 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Cash Flow Hedges (Details) - Cash flow hedges - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 01, 2022 | Jul. 31, 2022 | Feb. 28, 2022 | Oct. 31, 2018 | |
Interest Rate Swaps | |||||||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||||||
Notional amount of derivatives | $ 300,000,000 | $ 400,000,000 | |||||||
Derivative, fixed interest rate | 1.6725% | 3.018% | |||||||
Initial floating rate of interest | 3.14271% | 2.553% | |||||||
Non-interest income related to changes in the fair value of derivative | $ 45,900,000 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Loan interest income | 428,000 | 610,000 | |||||||
Terminated interest rate swap | $ 2,000,000 | $ 2,000,000 | $ 6,100,000 | $ 6,100,000 | |||||
Terminated notional amount of derivatives | $ 400,000,000 | ||||||||
Interest rate swap one | |||||||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||||||
Notional amount of derivatives | $ 200,000,000 | ||||||||
Derivative, fixed interest rate | 2.628% | ||||||||
Interest rate swap two | |||||||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||||||
Notional amount of derivatives | $ 200,000,000 | ||||||||
Derivative, fixed interest rate | 5.725% |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Fair value and location (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
DERIVATIVES AND HEDGING ACTIVITIES | ||
Total derivatives designated as hedging instruments | $ 33,123 | |
Derivative Asset | ||
Total derivatives not designated as hedging instruments, Assets | 11,627 | $ 2,816 |
Derivative Liability | ||
Total derivatives not designated as hedging instruments, Liabilities | 11,321 | 2,895 |
Active interest rate swaps | Accrued expenses and other liabilities. | ||
DERIVATIVES AND HEDGING ACTIVITIES | ||
Total derivatives designated as hedging instruments | 33,123 | |
Interest rate products | Prepaid expenses and other current assets | ||
Derivative Asset | ||
Total derivatives not designated as hedging instruments, Assets | 11,627 | 2,816 |
Interest rate products | Accrued expenses and other liabilities. | ||
Derivative Liability | ||
Total derivatives not designated as hedging instruments, Liabilities | $ 11,321 | $ 2,895 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Cash Flow Hedge on Comprehensive Income (Details) - Amount of Gain (Loss) Recognized In AOCI - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest rate swap, net of income taxes | $ (21,478) | $ (1,580) | $ (30,261) | $ (4,690) |
Terminated interest rate swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest rate swap, net of income taxes | (1,580) | $ (1,580) | (4,691) | $ (4,690) |
Active interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest rate swap, net of income taxes | $ (19,898) | $ (25,570) |
DERIVATIVES AND HEDGING ACTIV_7
DERIVATIVES AND HEDGING ACTIVITIES - Cash Flow Hedge on Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
DERIVATIVES AND HEDGING ACTIVITIES | ||||
Total Interest Income | $ 59,657 | $ 49,640 | $ 159,028 | $ 150,725 |
TOTAL INTEREST EXPENSE | 6,759 | 4,717 | 14,034 | 17,030 |
Interest Income | ||||
DERIVATIVES AND HEDGING ACTIVITIES | ||||
Interest rate swap, net of income taxes | 1,619 | 2,048 | 6,686 | 6,076 |
Total Interest Income | 59,657 | 49,640 | 159,028 | 150,725 |
Interest Income | Terminated interest rate swap | ||||
DERIVATIVES AND HEDGING ACTIVITIES | ||||
Interest rate swap, net of income taxes | 2,047 | 2,048 | 6,076 | 6,076 |
Interest Income | Active interest rate swaps | ||||
DERIVATIVES AND HEDGING ACTIVITIES | ||||
Interest rate swap, net of income taxes | (428) | 610 | ||
Interest Expense | ||||
DERIVATIVES AND HEDGING ACTIVITIES | ||||
Total Interest Income | 6,759 | 4,717 | ||
TOTAL INTEREST EXPENSE | $ 6,759 | $ 4,717 | $ 14,034 | $ 17,030 |
DERIVATIVES AND HEDGING ACTIV_8
DERIVATIVES AND HEDGING ACTIVITIES - Agreements with Derivative Counterparties (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Loan Level Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative counterparties collateral | $ 20,800,000 | $ 1,200,000 |
Net Liability Position | Balance Sheet Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Termination value of derivatives with derivative dealer counterparties | $ (21,700,000) | (437,000) |
Cash collateral received from derivative counterparty | $ 390,000 |