Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Entity File Number | 0-22208 | |
Entity Registrant Name | QCR HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-1397595 | |
Entity Address, Address Line One | 3551 7th Street | |
Entity Address, City or Town | Moline | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 61265 | |
City Area Code | 309 | |
Local Phone Number | 736-3580 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | QCRH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 17,067,732 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000906465 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 92,379 | $ 37,490 |
Federal funds sold | 2,150 | 12,370 |
Interest-bearing deposits at financial institutions | 54,382 | 75,292 |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 508,505 | 472,385 |
Securities available for sale, at fair value | 371,413 | 337,830 |
Total securities | 879,918 | 810,215 |
Loans receivable held for sale | 1,186 | 3,828 |
Loans/leases receivable held for investment | 5,796,717 | 4,676,304 |
Gross loans/leases receivable | 5,797,903 | 4,680,132 |
Less allowance for credit losses | (92,425) | (78,721) |
Net loans/leases receivable | 5,705,478 | 4,601,411 |
Bank-owned life insurance | 95,220 | 62,424 |
Premises and equipment, net | 115,023 | 78,530 |
Restricted investment securities | 41,928 | 19,353 |
Other real estate owned, net | 205 | |
Goodwill | 137,607 | 74,066 |
Intangibles | 18,333 | 9,349 |
Derivatives | 97,455 | 222,220 |
Other assets | 152,863 | 93,412 |
Total assets | 7,392,941 | 6,096,132 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 1,514,005 | 1,268,788 |
Interest-bearing | 4,306,652 | 3,653,984 |
Total deposits | 5,820,657 | 4,922,772 |
Short-term borrowings | 1,070 | 3,800 |
Federal Home Loan Bank advances | 400,000 | 15,000 |
Subordinated notes | 133,562 | 113,850 |
Junior subordinated debentures | 48,534 | 38,155 |
Derivatives | 113,305 | 225,135 |
Other liabilities | 132,675 | 100,410 |
Total liabilities | 6,649,803 | 5,419,122 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 June 2022 and December 2021 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 June 2022 - 17,064,347 shares issued and outstanding December 2021 - 15,613,460 shares issued and outstanding | 17,064 | 15,613 |
Additional paid-in capital | 375,358 | 273,768 |
Retained earnings | 400,790 | 386,077 |
Accumulated other comprehensive income (loss): | ||
Securities available for sale | (34,787) | 5,925 |
Derivatives | (15,287) | (4,373) |
Total stockholders' equity | 743,138 | 677,010 |
Total liabilities and stockholders' equity | $ 7,392,941 | $ 6,096,132 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 17,064,347 | 15,613,460 |
Common stock, outstanding (in shares) | 17,064,347 | 15,613,460 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and dividend income: | ||||
Loans/leases, including fees | $ 59,804 | $ 42,448 | $ 104,000 | $ 83,781 |
Securities: | ||||
Taxable | 3,090 | 2,132 | 5,488 | 4,174 |
Nontaxable | 4,645 | 4,052 | 8,795 | 7,986 |
Interest-bearing deposits at financial institutions | 169 | 34 | 204 | 71 |
Restricted investment securities | 485 | 237 | 766 | 456 |
Federal funds sold | 12 | 14 | ||
Total interest and dividend income | 68,205 | 48,903 | 119,267 | 96,468 |
Interest expense: | ||||
Deposits | 5,524 | 3,235 | 8,661 | 6,662 |
Short-term borrowings | 3 | 2 | 3 | 3 |
Federal Home Loan Bank advances | 781 | 16 | 863 | 25 |
Subordinated notes | 1,816 | 1,570 | 3,370 | 3,164 |
Junior subordinated debentures | 681 | 564 | 1,237 | 1,123 |
Total interest expense | 8,805 | 5,387 | 14,134 | 10,977 |
Net interest income | 59,400 | 43,516 | 105,133 | 85,491 |
Provision for credit losses | 11,200 | 8,284 | 6,713 | |
Net interest income after provision for loan/lease losses | 48,200 | 43,516 | 96,849 | 78,778 |
Noninterest income: | ||||
Revenue | 90,987 | 68,199 | 157,682 | 139,253 |
Gains on sales of residential real estate loans, net | 809 | 1,184 | 1,302 | 2,521 |
Gains on sales of government guaranteed portions of loans, net | 19 | |||
Swap fee income/capitals markets revenue | 13,004 | 9,568 | 19,426 | 23,125 |
Securities losses, net | (88) | (88) | ||
Earnings on bank-owned life insurance | 350 | 451 | 696 | 922 |
Other | 1,173 | 1,449 | 2,688 | 3,135 |
Total noninterest income | 22,782 | 19,296 | 38,415 | 42,785 |
Noninterest expenses: | ||||
Salaries and employee benefits | 29,972 | 23,044 | 53,599 | 47,891 |
Occupancy and equipment expense | 5,978 | 3,965 | 9,915 | 8,073 |
Professional and data processing fees | 4,365 | 3,702 | 8,036 | 7,145 |
Acquisition costs | 1,973 | 3,824 | ||
Post-acquisition compensation, transition and integration costs | 4,796 | 4,796 | ||
Disposition costs | 8 | |||
FDIC insurance, other insurance and regulatory fees | 1,394 | 986 | 2,704 | 2,051 |
Loan/lease expense | 761 | 457 | 1,028 | 757 |
Net cost of (income from) and gains/losses on operations of other real estate | 59 | (113) | 58 | (74) |
Advertising and marketing | 1,198 | 853 | 1,959 | 1,480 |
Bank service charges | 610 | 572 | 1,151 | 1,095 |
Correspondent banking expense | 213 | 198 | 412 | 398 |
Intangibles amortization | 787 | 508 | 1,280 | 1,016 |
Other | 2,142 | 1,503 | 3,811 | 3,063 |
Total noninterest expenses | 54,248 | 35,675 | 92,573 | 72,903 |
Net income before income taxes | 16,734 | 27,137 | 42,691 | 48,660 |
Federal and state income tax expense | 1,492 | 4,788 | 3,825 | 8,329 |
Net income | $ 15,242 | $ 22,349 | $ 38,866 | $ 40,331 |
Basic earnings per common share | $ 0.88 | $ 1.41 | $ 2.36 | $ 2.55 |
Diluted earnings per common share | $ 0.87 | $ 1.39 | $ 2.33 | $ 2.52 |
Weighted average common shares outstanding | 17,345,324 | 15,813,932 | 16,485,218 | 15,808,788 |
Weighted average common and common equivalent shares outstanding | 17,549,107 | 16,045,239 | 16,700,682 | 16,035,394 |
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Trust department fees | ||||
Noninterest income: | ||||
Revenue | $ 2,497 | $ 2,848 | $ 5,460 | $ 5,649 |
Investment advisory and management fees | ||||
Noninterest income: | ||||
Revenue | 983 | 1,039 | 2,019 | 1,979 |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 2,223 | 1,492 | 3,778 | 2,900 |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 1,499 | 1,084 | 2,506 | 2,059 |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 244 | $ 269 | $ 521 | $ 583 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,242 | $ 22,349 | $ 38,866 | $ 40,331 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) arising during the period before tax | (24,575) | 4,663 | (53,745) | (1,096) |
Less reclassification adjustment for losses included in net income before tax | (88) | (88) | ||
Unrealized gains (losses) on securities available for sale | (24,575) | 4,751 | (53,745) | (1,008) |
Unrealized holding gains (losses) arising during the period before tax | (7,414) | 492 | (14,272) | 3,725 |
Less reclassification adjustment for caplet amortization before tax | (241) | (163) | (462) | (314) |
Unrealized gains (losses) on derivatives | (7,173) | 655 | (13,810) | 4,039 |
Other comprehensive income (loss), before tax | (31,748) | 5,406 | (67,555) | 3,031 |
Tax expense (benefit) | (7,462) | 1,227 | (15,929) | 603 |
Other comprehensive income (loss), net of tax | (24,286) | 4,179 | (51,626) | 2,428 |
Comprehensive income (loss) | $ (9,044) | $ 26,528 | $ (12,760) | $ 42,759 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2020 | $ (937) | $ (937) | |||
Balance at Dec. 31, 2020 | $ 15,806 | $ 275,807 | 300,804 | $ 1,376 | 593,793 |
Net income | 17,982 | 17,982 | |||
Other comprehensive (loss), net of tax | (1,751) | (1,751) | |||
Common cash dividends declared | (949) | (949) | |||
Stock-based compensation expense | 841 | 841 | |||
Issuance of common stock under employee benefit plans | 38 | (298) | (260) | ||
Balance at Mar. 31, 2021 | 15,844 | 276,350 | 316,900 | (375) | 608,719 |
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2020 | (937) | (937) | |||
Balance at Dec. 31, 2020 | 15,806 | 275,807 | 300,804 | 1,376 | 593,793 |
Net income | 40,331 | ||||
Other comprehensive (loss), net of tax | 2,428 | ||||
Balance at Jun. 30, 2021 | 15,764 | 275,485 | 335,424 | 3,803 | 630,476 |
Balance at Mar. 31, 2021 | 15,844 | 276,350 | 316,900 | (375) | 608,719 |
Net income | 22,349 | 22,349 | |||
Other comprehensive (loss), net of tax | 4,179 | 4,179 | |||
Common cash dividends declared | (951) | (951) | |||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (100) | (1,826) | (2,874) | (4,800) | |
Stock-based compensation expense | 520 | 520 | |||
Issuance of common stock under employee benefit plans | 20 | 440 | 460 | ||
Balance at Jun. 30, 2021 | 15,764 | 275,485 | 335,424 | 3,803 | 630,476 |
Balance at Dec. 31, 2021 | 15,613 | 273,768 | 386,077 | 1,552 | 677,010 |
Net income | 23,624 | 23,624 | |||
Other comprehensive (loss), net of tax | (27,340) | (27,340) | |||
Common cash dividends declared | (939) | (939) | |||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (77) | (1,338) | (3,000) | (4,415) | |
Stock-based compensation expense | 751 | 751 | |||
Issuance of common stock under employee benefit plans | 44 | (811) | (767) | ||
Balance at Mar. 31, 2022 | 15,580 | 272,370 | 405,762 | (25,788) | 667,924 |
Balance at Dec. 31, 2021 | 15,613 | 273,768 | 386,077 | 1,552 | 677,010 |
Net income | 38,866 | ||||
Other comprehensive (loss), net of tax | (51,626) | ||||
Balance at Jun. 30, 2022 | 17,064 | 375,358 | 400,790 | (50,074) | 743,138 |
Balance at Mar. 31, 2022 | 15,580 | 272,370 | 405,762 | (25,788) | 667,924 |
Net income | 15,242 | 15,242 | |||
Other comprehensive (loss), net of tax | (24,286) | (24,286) | |||
Common cash dividends declared | (1,059) | (1,059) | |||
Issuance of shares of common stock as a result of the acquisition | 2,071 | 115,143 | 117,214 | ||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (603) | (13,258) | (19,155) | (33,016) | |
Stock-based compensation expense | 545 | 545 | |||
Issuance of common stock under employee benefit plans | 16 | 558 | 574 | ||
Balance at Jun. 30, 2022 | $ 17,064 | $ 375,358 | $ 400,790 | $ (50,074) | $ 743,138 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Cash dividends declared per common share | $ 0.06 | $ 0.06 | ||
Retained Earnings [Member] | ||||
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Common Stock [Member] | ||||
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 602,500 | 77,500 | 100,000 | |
Issuance of shares of common stock as a result of the acquisition, net of issuance cost (in shares) | 2,071,291 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 38,866 | $ 40,331 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 3,619 | 2,701 | |
Provision for credit losses | $ 11,200 | 8,284 | 6,713 |
Stock-based compensation expense | 1,296 | 1,361 | |
Deferred compensation expense accrued | 1,939 | 2,302 | |
Gains on other real estate owned, net | (389) | ||
Amortization of premiums on securities, net | 575 | 1,092 | |
Caplet amortization | 462 | 314 | |
Mark to market gains on unhedged derivatives, net | (1,338) | (91) | |
Securities losses, net | 88 | ||
Loans originated for sale | (53,057) | (115,649) | |
Proceeds on sales of loans | 60,235 | 117,469 | |
Gains on sales of residential real estate loans | (809) | (1,302) | (2,521) |
Gains on sales of government guaranteed portions of loans | (19) | ||
(Gains) losses on sales and disposals of premises and equipment | 60 | (22) | |
Amortization of intangibles | 787 | 1,280 | 1,016 |
Accretion of acquisition fair value adjustments, net | (1,813) | (795) | |
Increase in cash value of bank-owned life insurance | (696) | (922) | |
Increase in other assets | (19,837) | (14,322) | |
Increase (decrease) in other liabilities | 15,076 | (5,941) | |
Net cash provided by operating activities | 53,630 | 32,735 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net decrease in federal funds sold | 10,220 | 7,740 | |
Net (increase) decrease in interest-bearing deposits at financial institutions | 38,044 | (844) | |
Proceeds from sales of other real estate owned | 1,407 | ||
Activity in securities portfolio: | |||
Purchases | (134,700) | (108,565) | |
Calls, maturities and redemptions | 18,111 | 70,539 | |
Paydowns | 24,166 | 40,395 | |
Sales | 111,375 | 23,874 | |
Activity in restricted investment securities: | |||
Purchases | (22,514) | (2,280) | |
Redemptions | 2,159 | 46 | |
Net increase in loans/leases originated and held for investment | (314,744) | (170,969) | |
Purchase of premises and equipment | (23,965) | (4,773) | |
Proceeds from sales of premises and equipment | 50 | 22 | |
Net cash acquired from acquisition | 144,973 | ||
Net cash used in investing activities | (146,825) | (143,408) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposit accounts | (178,688) | 89,798 | |
Net increase (decrease) in short-term borrowings | (2,730) | 1,640 | |
Activity in Federal Home Loan Bank advances: | |||
Net change in short-term and overnight advances | 385,000 | 25,000 | |
Prepayments | (16,000) | ||
Activity in other borrowings: | |||
Prepayments of subordinated notes | (5,000) | ||
Payment of cash dividends on common stock | (1,874) | (1,896) | |
Proceeds (payment) from issuance of common stock, net | (193) | 200 | |
Repurchase and cancellation of shares | (37,431) | (4,800) | |
Net cash provided by financing activities | 148,084 | 104,942 | |
Net increase (decrease) in cash and due from banks | 54,889 | (5,731) | |
Cash and due from banks, beginning | 37,490 | 61,329 | |
Cash and due from banks, ending | 92,379 | 92,379 | 55,598 |
Supplemental disclosure of cash flow information, cash payments (receipts) for: | |||
Interest | 13,779 | 12,257 | |
Income/franchise taxes | (190) | 21,310 | |
Supplemental schedule of noncash investing activities: | |||
Change in accumulated other comprehensive income, unrealized losses on securities available for sale and derivative instruments, net | (51,626) | 2,427 | |
Transfers of loans to other real estate owned | 150 | 2,812 | |
Due to broker for purchases of securities | 1,000 | ||
Decrease in the fair value of back-to-back interest rate swap assets and liabilities | (131,410) | (31,297) | |
Dividends payable | 1,059 | $ 951 | |
ASSETS | |||
Cash and due from banks | 171,844 | 171,844 | |
Interest-bearing deposits at financial institutions | 17,134 | 17,134 | |
Securities | 143,017 | 143,017 | |
Loans/leases receivable, net | 801,697 | 801,697 | |
Bank-owned life insurance | 32,100 | 32,100 | |
Premises and equipment | 16,257 | 16,257 | |
Restricted investment securities | 2,220 | 2,220 | |
Other real estate owned | 55 | 55 | |
Intangibles | 10,264 | 10,264 | |
Other assets | 23,685 | 23,685 | |
Total assets acquired | 1,218,273 | 1,218,273 | |
LIABILITIES | |||
Deposits | 1,076,573 | 1,076,573 | |
FHLB advances | 16,000 | 16,000 | |
Subordinated debentures | 19,621 | 19,621 | |
Junior subordinated debentures | 10,310 | 10,310 | |
Other liabilities | 15,225 | 15,225 | |
Total liabilities assumed | 1,137,729 | 1,137,729 | |
Net assets acquired | $ 80,544 | 80,544 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||
Cash paid | 26,871 | ||
Common stock | 117,214 | ||
Total consideration paid | 144,085 | ||
Goodwill | 63,541 | ||
Net cash paid | $ 144,973 |
Note 1 - SUMMARY OF SIGNIFICANT
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2022 are not necessarily indicative of the results expected for the year ending December 31, 2022, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report. Allowance: Allowance for credit losses GB: Guaranty Bank, formerly known as Springfield First AOCI: Accumulated other comprehensive income (loss) Community Bank ASC: Accounting Standards Codification GFED: Guaranty Federal Bancshares, Inc. ASU: Accounting Standards Update HTM: Held to maturity Bates Companies: Bates Financial Advisors, Inc., Bates LIBOR: London Inter-Bank Offered Rate Financial Services, Inc., Bates Securities, Inc. and LIHTC: Low-income housing tax credit Bates Financial Group, Inc. m2: m2 Equipment Finance, LLC BOLI: Bank-owned life insurance NIM: Net interest margin Caps: Interest rate cap derivatives NPA: Nonperforming asset CARES Act: Coronavirus Aid, Relief and Economy NPL: Nonperforming loan Security Act OBS: Off-balance sheet CECL: Current Expected Credit Losses OREO: Other real estate owned Community National: Community National Bancorporation OTTI: Other-than-temporary impairment COVID-19: Coronavirus Disease 2019 PCAOB: Public Company Accounting Oversight Board CRBT: Cedar Rapids Bank & Trust Company PCD: Purchased credit deteriorated loan CRE: Commercial real estate PCI: Purchased credit impaired CSB: Community State Bank PPP: Paycheck Protection Program C&I: Commercial and industrial Provision: Provision for credit losses EBA: Excess balance account QCBT: Quad City Bank & Trust Company EPS: Earnings per share ROAA: Return on average assets Exchange Act: Securities Exchange Act of 1934, as ROAE: Return on average equity amended SBA: U.S. Small Business Administration FASB: Financial Accounting Standards Board SEC: Securities and Exchange Commission FDIC: Federal Deposit Insurance Corporation SFCB: Springfield First Community Bank Federal Reserve: Board of Governors of the Federal SFG: Specialty Finance Group Reserve System TA: Tangible assets FHLB: Federal Home Loan Bank TCE: Tangible common equity FRB: Federal Reserve Bank of Chicago TDRs: Troubled debt restructurings TEY: Tax equivalent yield The Company: QCR Holdings, Inc. The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of four commercial banks: QCBT, CRBT, CSB and GB. All are state-chartered commercial banks and all are members of the Federal Reserve system. On April 1, 2022, the Company completed its previously announced acquisition of GFED. See Note 2 to the Consolidated Financial Statements for further discussion. The combined bank changed its name to Guaranty Bank. The Company also engages in direct financing lease contracts through m2, a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation. Pending accounting developments Reference Rate Reform Management has assessed the impacts of ASU 2020-04 and the related opportunities and risks involved in the LIBOR transition. In April 2022, the FASB issued ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures |
Note 2 - ACQUISITION
Note 2 - ACQUISITION | 6 Months Ended |
Jun. 30, 2022 | |
ACQUISITION | |
ACQUISITION | NOTE 2 – ACQUISITION On April 1, 2022, the Company completed its previously announced acquisition of GFED and on April 2, 2022 merged Guaranty Bank into SFCB, the Company’s Springfield-based charter. The combined bank changed its name to Guaranty Bank. Stockholders of GFED received for each share of GFED common stock owned, at the election of each stockholder, subject to proration and adjustment, (1) $30.50 in cash, (2) 0.58775 shares of the Company’s common stock, or (3) mixed consideration of $6.10 in cash and 0.4702 shares of the Company’s common stock. On March 31, 2022, the last trading date before the closing, the Company’s common stock closed at $56.59, resulting in stock consideration valued at $117.2 million and total cash consideration paid by the Company of $26.9 million. The Company funded the cash portion of the purchase price through operating cash. The acquisition of GFED supports the strategic goals of the Company. It allows for increased product and service capabilities of the combined bank and it will result in strong growth in Springfield, MO and its surrounding communities. The Company accounted for the business combination under the acquisition method of accounting in accordance with ASC 805. The Company recognized the full fair value of the assets acquired and liabilities assumed at the acquisition date, net of applicable income tax effects. The Company considers all purchase accounting adjustments as provisional and fair values are subject to refinement for up to one year after the closing date due to timing of third party reports and management’s reviews of reports. The excess of the consideration paid over the fair value of the net assets acquired is recorded as goodwill. This goodwill is not deductible for tax purpose. The fair values of the assets acquired and liabilities assumed including the consideration paid and resulting goodwill is as follows: As of April 1, 2022 (dollars in thousands) ASSETS Cash and due from banks $ 171,844 Interest-bearing deposits at financial institutions 17,134 Securities 143,017 Loans/leases receivable, net 801,697 Bank-owned life insurance 32,100 Premises and equipment 16,257 Restricted investment securities 2,220 Other real estate owned 55 Intangibles 10,264 Other assets 23,685 Total assets acquired $ 1,218,273 LIABILITIES Deposits $ 1,076,573 FHLB advances 16,000 Subordinated notes 19,621 Junior subordinated debentures 10,310 Other liabilities 15,225 Total liabilities assumed $ 1,137,729 Net assets acquired $ 80,544 CONSIDERATION PAID: Cash $ 26,871 Common stock 117,214 Total consideration paid $ 144,085 Goodwill $ 63,541 The Company acquired loans both with and without evidence of credit quality deterioration since origination. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s allowance for credit losses recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (“non-PCD”) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company recorded an accretable discount of $12.0 million on the non-PCD loans. The Company also recorded an ACL for non-PCD loans at the time of acquisition through provision expense of $11.0 million. The carrying amount of loans acquired and classified as PCD is as follows: Guaranty Bank April 1, 2022 (dollars in thousands) Principal balance of PCD loans at acquisition $ 38,711 Allowance for credit losses at acquisition (5,902) Non-credit discount at acquisition (1,366) Fair value of PCD loans at acquisition $ 31,443 Premises and equipment acquired with a fair value of $16.3 million includes sixteen branch locations. The fair value was determined with the assistance of a third party appraiser. The assets and related fair value adjustments will be recognized as an increase in depreciation expense over 39 years. The Company recorded a core deposit intangible totaling $10.3 million which is the portion of the acquisition purchase price that represents the value assigned to the existing deposit base. The core deposit intangible has a finite life and is amortized using an accelerated method over the estimated useful life of the deposits (estimated to be ten years). The following table presents the changes in the carrying amount of core deposit intangibles, gross carrying amount, accumulated amortization, and net book value: June 30, 2022 (dollars in thousands) Balance at acquisition $ 10,264 Amortization expense (294) Balance at the end of the period $ 9,970 Gross carrying amount $ 10,264 Accumulated amortization (294) Net book value $ 9,970 The following presents the remaining estimated amortization of the core deposit intangible: Year ending, December 31, Amount (dollars in thousands) 2022 $ 589 2023 1,162 2024 1,138 2025 1,109 2026 1,076 Thereafter 4,896 $ 9,970 The following table presents the assumed borrowings as of the acquisition date: Amount Rate Terms Maturity Date Collateral (dollars in thousands) FHLB advance 6,500 0.59% monthly interest payments; principal due at maturity 5/15/2023 commercial and residential real estate loans FHLB advance 6,500 0.82% monthly interest payments; principal due at maturity 5/15/2025 commercial and residential real estate loans FHLB advance 3,000 1.12% monthly interest payments; principal due at maturity 5/17/2027 commercial and residential real estate loans Subordinated notes 19,621 5.25% monthly interest payments; principal due at maturity 9/30/2030 unsecured Junior subordinated debentures 10,310 4.09% monthly interest payments; principal due at maturity 2/23/2036 unsecured Fair value of borrowings assumed $ 45,931 The Company prepaid the $16.0 million of FHLB advances in full shortly after closing. During the first six months of 2022, the Company incurred $3.8 million of expenses related to the acquisition, comprised primarily of legal, accounting, investment banking costs and personnel costs and $4.8 million of post-acquisition, compensation, transition and integration costs, comprised primarily of personnel costs, IT integration and data conversion costs related to the acquisition. GB results are included in the consolidated statements of income effective on the acquisition date. Unaudited pro forma combined operating results for the three and six months ended June 30, 2022 and 2021, giving effect to the GFED acquisition as if it had occurred as of January 1, 2021, are as follow: Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands, except per share data) Net interest income $ 59,400 $ 53,324 $ 115,136 $ 104,650 Noninterest income $ 22,782 $ 22,112 $ 40,652 $ 48,216 Net income $ 15,242 $ 25,609 $ 41,365 $ 46,549 Earnings per common share: Basic $ 0.88 $ 1.43 $ 2.23 $ 2.60 Diluted $ 0.87 $ 1.41 $ 2.20 $ 2.57 |
Note 3 - INVESTMENT SECURITIES
Note 3 - INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Investment Securities | NOTE 3– INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of June 30, 2022 and December 31, 2021 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) June 30, 2022: Securities HTM: Municipal securities $ 507,653 $ 5,359 $ (16,108) $ 496,904 Other securities 1,050 — — 1,050 $ 508,703 $ 5,359 $ (16,108) $ 497,954 Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 22,424 $ 22 $ (1,998) $ 20,448 Residential mortgage-backed and related securities 86,000 42 (4,795) 81,247 Municipal securities 241,074 122 (38,211) 202,985 Asset-backed securities 20,056 112 (212) 19,956 Other securities 47,768 93 (1,084) 46,777 $ 417,322 $ 391 $ (46,300) $ 371,413 * HTM securities shown on the balance sheet of $508.5 million represents amortized cost of $508.7 million, net of allowance for credit losses of $198 thousand as of June 30, 2022. Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2021: Securities HTM: Municipal securities $ 471,533 $ 49,715 $ — $ 521,248 Other securities 1,050 — (1) 1,049 $ 472,583 $ 49,715 $ (1) $ 522,297 Securities AFS: U.S. govt. sponsored agency securities $ 23,370 $ 254 $ (296) $ 23,328 Residential mortgage-backed and related securities 92,431 2,672 (780) 94,323 Municipal securities 163,253 5,228 (215) 168,266 Asset-backed securities 26,372 752 — 27,124 Other securities 24,568 251 (30) 24,789 $ 329,994 $ 9,157 $ (1,321) $ 337,830 * HTM securities shown on the balance sheet of $472.4 million represents amortized cost of $472.6 million, net of allowance for credit losses of $198 thousand as of December 31, 2021. The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2022 and December 31, 2021, are summarized as follows: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2022: Securities HTM: Municipal securities $ 68,468 $ (7,786) $ 95,070 $ (8,322) $ 163,538 $ (16,108) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,574 $ (1,359) $ 2,482 $ (639) $ 19,056 $ (1,998) Residential mortgage-backed and related securities 59,731 (2,073) 18,215 (2,722) 77,946 (4,795) Municipal securities 185,244 (37,071) 3,828 (1,140) 189,072 (38,211) Asset-backed securities 10,722 (212) — — 10,722 (212) Other securities 32,950 (1,084) — — 32,950 (1,084) $ 305,221 $ (41,799) $ 24,525 $ (4,501) $ 329,746 $ (46,300) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2021: Securities HTM: Other securities $ 1,049 $ (1) $ — $ — $ 1,049 $ (1) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 9,802 $ (156) $ 3,035 $ (140) $ 12,837 $ (296) Residential mortgage-backed and related securities 5,363 (67) 19,406 (713) 24,769 (780) Municipal securities 13,287 (211) 1,001 (4) 14,288 (215) Other securities 4,528 (30) — — 4,528 (30) $ 32,980 $ (464) $ 23,442 $ (857) $ 56,422 $ (1,321) At June 30, 2022, the investment portfolio included 699 securities. Of this number, 463 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 6.74% of the total amortized cost of the portfolio. Of these 463 securities, there were 91 The following table presents the activity in the allowance for credit losses for held to maturity securities by major security type for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Municipal Other Municipal Other Municipal Other Municipal Other securities securities Total securities securities Total securities securities Total securities securities Total Allowance for credit losses: Beginning balance $ 198 $ — $ 198 $ 173 $ 1 $ 174 $ 198 $ — $ 198 $ — $ — $ — Impact of adopting ASU 2016-13 — — — — — — — — — 182 1 183 Provision for credit loss expense — — — — — — — — — (9) — (9) Balance, ending $ 198 $ — $ 198 $ 173 $ 1 $ 174 $ 198 $ — $ 198 $ 173 $ 1 $ 174 All sales of securities for the three and six months ended June 30, 2022 and June 30, 2021 were securities identified as AFS. Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Proceeds from sales of securities $ 111,375 $ 4,334 $ 111,375 $ 23,874 Gross gains from sales of securities — — — — Gross losses from sales of securities — (88) — (88) Upon the GFED acquisition, the Company sold a large portion of the acquired securities portfolio to improve the efficiency of the combined balance sheets. The amortized cost and fair value of securities as of June 30, 2022 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the residential mortgages underlying the securities may be prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,968 $ 2,974 Due after one year through five years 16,632 16,589 Due after five years 489,103 478,391 $ 508,703 $ 497,954 Securities AFS: Due in one year or less $ 6,773 $ 6,772 Due after one year through five years 4,129 4,162 Due after five years 300,364 259,276 311,266 270,210 Residential mortgage-backed and related securities 86,000 81,247 Asset-backed securities 20,056 19,956 $ 417,322 $ 371,413 Portions of the U.S. government sponsored agency securities and municipal securities contain call options, which, at the discretion of the issuer, terminate the security at par and at predetermined dates prior to the stated maturity, summarized as follows: Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 309,349 $ 305,321 Securities AFS: Municipal securities 236,628 198,515 Other securities 46,347 45,405 $ 282,975 $ 243,920 As of June 30, 2022, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 119 issuers with fair values totaling $116.4 million and revenue bonds issued by 185 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $583.5 million. The Company also held investments in general obligation bonds in 22 states, including eight states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 29 states, including 12 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2021, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 113 issuers with fair values totaling $114.5 million and revenue bonds issued by 165 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $575.0 million. The Company also held investments in general obligation bonds in 20 states, including seven Both general obligation and revenue bonds are diversified across many issuers. As of June 30, 2022 and as of December 31, 2021, the Company held revenue bonds of one issuer, located in Ohio, of which the aggregate book or market value exceeded 5% of the Company’s stockholders’ equity. The issuer’s financial condition is strong and the source of repayment is diversified. The Company monitors the investments and concentration closely. Of the general obligation and revenue bonds in the Company's portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities. The Company's municipal securities are owned by the four charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of June 2022, all were within policy limitations approved by the Company’s board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital. As of June 30, 2022, the Company's standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards. |
Note 4- LOANS LEASES RECEIVABLE
Note 4- LOANS LEASES RECEIVABLE | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
LOANS/LEASES RECEIVABLE | NOTE 4 – LOANS/LEASES RECEIVABLE The composition of the loan/lease portfolio as of June 30, 2022 and December 31, 2021 is presented as follows: June 30, 2022 December 31, 2021 (dollars in thousands) C&I: C&I - revolving $ 322,258 $ 248,483 C&I - other * 1,403,689 1,346,602 1,725,947 1,595,085 CRE - owner occupied 628,565 421,701 CRE - non-owner occupied 889,530 646,500 Construction and land development 1,080,372 918,571 Multi-family 860,742 600,412 Direct financing leases** 40,050 45,191 1-4 family real estate*** 473,141 377,361 Consumer 99,556 75,311 5,797,903 4,680,132 Allowance for credit losses (92,425) (78,721) $ 5,705,478 $ 4,601,411 ** Direct financing leases: Net minimum lease payments to be received $ 43,888 $ 49,362 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (4,003) (4,336) 40,050 45,191 Plus deferred lease origination costs, net of fees 387 568 40,437 45,759 Less allowance for credit losses (1,589) (1,546) $ 38,848 $ 44,213 * Includes equipment financing agreements outstanding at m2, totaling $253.4 million and $225.1 million as of June 30, 2022 and December 31, 2021, respectively and PPP loans totaling $79 thousand and $28.2 million as of June 30, 2022 and December 31, 2021, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. *** Includes residential real estate loans held for sale totaling $1.2 million and $3.8 million as of June 30, 2022 and December 31, 2021, respectively. Included in the amortized cost of the loan portfolio is $13.0 million of remaining discounts on acquired loans. Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $19.4 million and $15.0 million at June 30, 2022 and December 31, 2021, respectively, and was included in other assets on the consolidated balance sheets. The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2022 and December 31, 2021 is presented as follows: As of June 30, 2022 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I: C&I - revolving $ 322,258 $ — $ — $ — $ — $ 322,258 C&I - other 1,397,799 3,136 1,038 1 1,715 1,403,689 CRE - owner occupied 626,209 — — — 2,356 628,565 CRE - non-owner occupied 882,587 — — — 6,943 889,530 Construction and land development 1,071,748 — 63 — 8,561 1,080,372 Multi-family 860,742 — — — — 860,742 Direct financing leases 38,940 213 43 — 854 40,050 1-4 family real estate 469,737 96 165 267 2,876 473,141 Consumer 99,194 50 43 — 269 99,556 $ 5,769,214 $ 3,495 $ 1,352 $ 268 $ 23,574 $ 5,797,903 As a percentage of total loan/lease portfolio 99.51 % 0.06 % 0.02 % 0.00 % 0.41 % 100.00 % As of December 31, 2021 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I C&I - revolving $ 248,483 $ — $ — $ — $ — $ 248,483 C&I - other 1,337,034 859 7,308 1 1,400 1,346,602 CRE - owner occupied 421,701 — — — — 421,701 CRE - non-owner occupied 646,500 — — — — 646,500 Construction and land development 918,498 — — — 73 918,571 Multi-family 600,412 — — — — 600,412 Direct financing leases 44,174 10 160 — 847 45,191 1-4 family real estate 374,912 1,325 716 — 408 377,361 Consumer 75,272 8 — — 31 75,311 $ 4,666,986 $ 2,202 $ 8,184 $ 1 $ 2,759 $ 4,680,132 As a percentage of total loan/lease portfolio 99.57 % 0.05 % 0.17 % 0.00 % 0.06 % 100.00 % NPLs by classes of loans/leases as of June 30, 2022 and December 31, 2021 are presented as follows: As of June 30, 2022 Accruing Past Nonaccrual Nonaccrual Due 90 Days or Loans/Leases Loans/Leases Percentage of Classes of Loans/Leases More with an ACL without an ACL Total NPLs Total NPLs (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — - % C&I - other 1 1,547 168 1,716 7.20 CRE - owner occupied — 1,859 497 2,356 9.88 CRE - non-owner occupied — 70 6,873 6,943 29.12 Construction and land development — 6,879 1,682 8,561 35.91 Multi-family — — — — - Direct financing leases — 854 — 854 3.58 1-4 family real estate 267 1,575 1,301 3,143 13.18 Consumer — 269 — 269 1.13 $ 268 $ 13,053 $ 10,521 $ 23,842 100.00 % As of December 31, 2021 Accruing Past Nonaccrual Nonaccrual Due 90 Days or Loans/Leases Loans/Leases Percentage of Classes of Loans/Leases More with an ACL without an ACL Total NPLs Total NPLs (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — - % C&I - other 1 1,130 270 1,401 50.77 CRE - owner occupied — — — — - CRE - non-owner occupied — — — — - Construction and land development — 73 — 73 2.64 Multi-family — — — — - Direct financing leases — 115 732 847 30.69 1-4 family real estate — 408 — 408 14.78 Consumer — 31 — 31 1.12 $ 1 $ 1,757 $ 1,002 $ 2,760 100.00 % The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2022 and 2021. Changes in the ACL loans/leases by portfolio segment for the three and six months ended June 30, 2022 and 2021, respectively, are presented as follows: Three Months Ended June 30, 2022 CRE CRE Construction 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Family Revolving Other* Occupied Occupied Development Family Real Estate Consumer Total (dollars in thousands) Balance, beginning $ 3,619 $ 25,437 $ 7,897 $ 7,857 $ 14,671 $ 10,336 $ 4,154 $ 815 $ 74,786 Initial ACL recorded for PCD loans 600 7 2,481 1,076 1,100 481 137 20 5,902 Provision** 960 2,864 686 3,309 617 1,966 1,222 517 12,141 Charge-offs — (426) — (193) — — — (1) (620) Recoveries — 211 1 — — — — 4 216 Balance, ending $ 5,179 $ 28,093 $ 11,065 $ 12,049 $ 16,388 $ 12,783 $ 5,513 $ 1,355 $ 92,425 Six Months Ended June 30, 2022 CRE CRE Construction 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Family Revolving Other*** Occupied Occupied Development Family Real Estate Consumer Total (dollars in thousands) Balance, beginning $ 3,907 $ 25,982 $ 8,501 $ 8,549 $ 16,972 $ 9,339 $ 4,541 $ 930 $ 78,721 Initial ACL recorded for PCD loans 600 7 2,481 1,076 1,100 481 137 20 5,902 Provision** 672 2,533 77 2,489 (1,684) 2,963 835 407 8,292 Charge-offs — (875) — (193) — — — (8) (1,076) Recoveries — 446 6 128 — — — 6 586 Balance, ending $ 5,179 $ 28,093 $ 11,065 $ 12,049 $ 16,388 $ 12,783 $ 5,513 $ 1,355 $ 92,425 * Included within the C&I – Other column are ACL on leases with a beginning balance of $1.5 million, provision of $185 thousand, charge-offs of $109 thousand and recoveries of $48 thousand. ACL on leases was $1.6 million as of June 30, 2022. ** Provision for the three and six months ended June 30, 2022, included $11.0 million related to the acquired Guaranty Bank non-PCD loans. *** Included within the C&I - Other column are ACL on leases with a beginning balance of $1.5 million, provision of $158 thousand, charge-offs of $223 thousand and recoveries of $108 thousand. ACL on leases was $1.6 million as of June 30, 2022. Three Months Ended June 30, 2021 CRE CRE Construction Direct Residential 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Financing Real Family C&I Revolving Other* CRE Occupied Occupied Development Family Leases Estate Real Estate Consumer Total (dollars in thousands) Balance, beginning $ — $ 3,547 $ 33,167 $ — $ 9,147 $ 11,155 $ 12,327 $ 6,278 $ — $ — $ 5,165 $ 1,045 $ 81,831 Provision — (370) (2) — (1,121) (376) 1,313 849 — — (105) (329) (141) Charge-offs — — (998) — — (1,876) — (150) — — (646) (4) (3,674) Recoveries — — 158 — (6) 8 — — — — 511 207 878 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 Six Months Ended June 30, 2021 CRE CRE Construction Direct Residential 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Financing Real Family C&I Revolving Other** CRE Occupied Occupied Development Family Leases Estate Real Estate Consumer Total (dollars in thousands) Balance, beginning $ 35,421 $ — $ — $ 42,161 $ — $ — $ — $ — $ 1,764 $ 3,732 $ — $ 1,298 $ 84,376 Adoption of ASU 2016-13 (35,421) 2,982 29,130 (42,161) 8,696 11,428 11,999 5,836 (1,764) (3,732) 5,042 (137) (8,102) Provision — 195 4,547 — (670) (662) 1,641 1,291 — — 56 (546) 5,852 Charge-offs — — (1,666) — — (1,876) — (150) — — (690) (5) (4,387) Recoveries — — 314 — (6) 21 — — — — 517 309 1,155 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 * Included within the C&I – Other column are ACL on leases with adoption impact of $2.2 million, negative provision of $144 thousand, charge-offs of $130 thousand and recoveries of $58 thousand. ACL on leases was $2.0 million as of June 30, 2021. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $1.8 million, adoption impact of $685 thousand, negative provision of $279 thousand, charge-offs of $328 thousand and recoveries of $134 thousand. ACL on leases was $2.0 million as of June 30, 2021. The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows: As of June 30, 2022 Amortized Cost of Loans Receivable Allowance for Credit Losses Individually Collectively Individually Collectively Evaluated for Evaluated for Evaluated for Evaluated for Credit Losses Credit Losses Total Credit Losses Credit Losses Total (dollars in thousands) C&I : C&I - revolving $ 3,458 $ 318,800 $ 322,258 $ 933 $ 4,246 $ 5,179 C&I - other* 12,569 1,431,170 1,443,739 2,410 25,683 28,093 16,027 1,749,970 1,765,997 3,343 29,929 33,272 CRE - owner occupied 24,440 604,125 628,565 3,046 8,019 11,065 CRE - non-owner occupied 28,618 860,912 889,530 826 11,223 12,049 Construction and land development 18,986 1,061,386 1,080,372 1,669 14,719 16,388 Multi-family 1,300 859,442 860,742 393 12,390 12,783 1-4 family real estate 4,978 468,163 473,141 418 5,095 5,513 Consumer 609 98,947 99,556 59 1,296 1,355 $ 94,958 $ 5,702,945 $ 5,797,903 $ 9,754 $ 82,671 $ 92,425 * Included within the C&I – Other category are leases individually evaluated of $854 thousand with a related allowance for credit losses of $351 thousand and leases collectively evaluated of $39.3 million with a related allowance for credit losses of $1.2 million. As of December 31, 2021 Amortized Cost of Loans Receivable Allowance for Credit Losses Individually Collectively Individually Collectively Evaluated for Evaluated for Evaluated for Evaluated for Credit Losses Credit Losses Total Credit Losses Credit Losses Total (dollars in thousands) C&I : C&I - revolving $ 2,638 $ 245,845 $ 248,483 $ 168 $ 3,739 $ 3,907 C&I - other* 13,456 1,378,337 1,391,793 743 25,239 25,982 16,094 1,624,182 1,640,276 911 28,978 29,889 CRE - owner occupied 3,841 417,860 421,701 1,264 7,237 8,501 CRE - non-owner occupied 25,006 621,494 646,500 — 8,549 8,549 Construction and land development 10,436 908,135 918,571 11 16,961 16,972 Multi-family — 600,412 600,412 — 9,339 9,339 1-4 family real estate 2,950 374,411 377,361 329 4,212 4,541 Consumer 350 74,961 75,311 39 891 930 $ 58,677 $ 4,621,455 $ 4,680,132 $ 2,554 $ 76,167 $ 78,721 * Included within the C&I – Other category are leases individually evaluated of $847 thousand with a related allowance for credit losses of $35 thousand and leases collectively evaluated of $44.4 million with a related allowance for credit losses of $1.5 million. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of June 30, 2022 and December 31, 2021: As of June 30, 2022 Non Commercial Owner-occupied Owner-Occupied Owner Occupied Assets CRE Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 3,353 $ — $ — $ — $ — $ 105 $ — $ 3,458 C&I - other* 2,063 214 — — 122 7,637 2,533 12,569 5,416 214 — — 122 7,742 2,533 16,027 CRE - owner occupied — 24,374 — 66 — — — 24,440 CRE - non-owner occupied — — 28,618 — — — — 28,618 Construction and land development — — 18,986 — — — — 18,986 Multi-family — — 1,300 — — — — 1,300 1-4 family real estate — — 2,017 2,961 — — — 4,978 Consumer — — — 602 — — 7 609 $ 5,416 $ 24,802 $ 50,921 $ 3,629 $ 122 $ 7,742 $ 2,540 $ 94,958 * Included within the C&I – Other category are leases individually evaluated of $854 thousand with primary collateral of equipment. As of December 31, 2021 Non Commercial Owner-Occupied Owner Occupied Assets Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 2,518 $ — $ — $ — $ 120 $ — $ 2,638 C&I - other* 683 — 2,471 134 9,877 291 13,456 3,201 — 2,471 134 9,997 291 16,094 CRE - owner occupied — — 3,841 — — — 3,841 CRE - non-owner occupied — 25,006 — — — — 25,006 Construction and land development — 10,362 74 — — — 10,436 Multi-family — — — — — — — 1-4 family real estate — 817 2,133 — — — 2,950 Consumer — — 340 — 1 9 350 $ 3,201 $ 36,185 $ 8,859 $ 134 $ 9,998 $ 300 $ 58,677 * Included within the C&I – Other category are leases individually evaluated of $847 thousand with primary collateral of equipment. For certain C&I loans, all CRE loans, certain construction and land development loans, all multifamily loans and certain 1-4 family residential loans, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan. For certain C&I loans (including equipment financing agreements and direct financing leases), certain construction and land development, certain 1-4 family real estate loans, and all consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system. The following tables show the credit quality indicator of loans by class of receivable and year of origination as of June 30, 2022: As of June 30, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 316,980 $ 316,980 Special Mention (Rating 6) — — — — — — 1,820 1,820 Substandard (Rating 7) — — — — — — 3,458 3,458 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 322,258 $ 322,258 C&I - other Pass (Ratings 1 through 5) $ 250,926 $ 298,050 $ 275,254 $ 116,262 $ 78,628 $ 120,831 $ — $ 1,139,951 Special Mention (Rating 6) 365 20 19 20 — 323 — 747 Substandard (Rating 7) 2,396 205 763 5,729 348 165 — 9,606 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 253,687 $ 298,275 $ 276,036 $ 122,011 $ 78,976 $ 121,319 $ — $ 1,150,304 CRE - owner occupied Pass (Ratings 1 through 5) $ 91,565 $ 184,453 $ 168,819 $ 48,013 $ 31,918 $ 58,119 $ 16,268 $ 599,155 Special Mention (Rating 6) 1,730 — 2,915 — 145 1,786 — 6,576 Substandard (Rating 7) 1,981 1,073 16,802 1,260 1,218 500 — 22,834 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 95,276 $ 185,526 $ 188,536 $ 49,273 $ 33,281 $ 60,405 $ 16,268 $ 628,565 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 178,954 $ 216,956 $ 203,144 $ 92,322 $ 60,792 $ 58,123 $ 6,379 $ 816,670 Special Mention (Rating 6) 1,825 4,244 13,809 1,757 15,733 7,205 — 44,573 Substandard (Rating 7) — 720 11,895 15,391 — — 281 28,287 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 180,779 $ 221,920 $ 228,848 $ 109,470 $ 76,525 $ 65,328 $ 6,660 $ 889,530 Construction and land development Pass (Ratings 1 through 5) $ 184,842 $ 358,523 $ 254,180 $ 77,982 $ 34,553 $ — $ 19,253 $ 929,333 Special Mention (Rating 6) 328 163 — — — — — 491 Substandard (Rating 7) 4,794 11,814 — — — 25 — 16,633 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 189,964 $ 370,500 $ 254,180 $ 77,982 $ 34,553 $ 25 $ 19,253 $ 946,457 Multi-family Pass (Ratings 1 through 5) $ 139,369 $ 266,098 $ 233,484 $ 102,945 $ 104,833 $ 10,066 $ 2,598 $ 859,393 Special Mention (Rating 6) — 49 — — — — — 49 Substandard (Rating 7) — — 1,300 — — — — 1,300 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 139,369 $ 266,147 $ 234,784 $ 102,945 $ 104,833 $ 10,066 $ 2,598 $ 860,742 1-4 family real estate Pass (Ratings 1 through 5) $ 23,427 $ 41,055 $ 18,981 $ 13,400 $ 5,895 $ 6,567 $ 2,297 $ 111,622 Special Mention (Rating 6) — 302 — — — — — 302 Substandard (Rating 7) — — 177 — 430 198 — 805 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 23,427 $ 41,357 $ 19,158 $ 13,400 $ 6,325 $ 6,765 $ 2,297 $ 112,729 Consumer Pass (Ratings 1 through 5) $ 168 $ 859 $ 465 $ 92 $ 206 $ 716 $ 1,650 $ 4,156 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — 125 — 125 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 168 $ 859 $ 465 $ 92 $ 206 $ 841 $ 1,650 $ 4,281 Total $ 882,670 $ 1,384,584 $ 1,202,007 $ 475,173 $ 334,699 $ 264,749 $ 370,984 $ 4,914,866 As of June 30, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 117,018 $ 85,405 $ 33,432 $ 12,475 $ 3,539 $ 390 $ — $ 252,259 Nonperforming 47 1,007 62 10 — — — 1,126 Total C&I - other $ 117,065 $ 86,412 $ 33,494 $ 12,485 $ 3,539 $ 390 $ — $ 253,385 Construction and land development Performing $ 61,963 $ 57,234 $ 6,234 $ 4,747 $ 218 $ 471 $ 757 $ 131,624 Nonperforming 524 — 1,767 — — — — 2,291 Total Construction and land development $ 62,487 $ 57,234 $ 8,001 $ 4,747 $ 218 $ 471 $ 757 $ 133,915 Direct financing leases Performing $ 15,481 $ 6,173 $ 7,528 $ 5,914 $ 3,234 $ 866 $ — $ 39,196 Nonperforming — 779 75 — — — — 854 Total Direct financing leases $ 15,481 $ 6,952 $ 7,603 $ 5,914 $ 3,234 $ 866 $ — $ 40,050 1-4 family real estate Performing $ 46,135 $ 119,804 $ 100,058 $ 20,613 $ 13,705 $ 57,076 $ 950 $ 358,341 Nonperforming — 85 1,728 7 — 251 — 2,071 Total 1-4 family real estate $ 46,135 $ 119,889 $ 101,786 $ 20,620 $ 13,705 $ 57,327 $ 950 $ 360,412 Consumer Performing $ 6,124 $ 5,263 $ 4,333 $ 1,992 $ 1,588 $ 1,742 $ 73,964 $ 95,006 Nonperforming 149 12 13 14 33 48 — 269 Total Consumer $ 6,273 $ 5,275 $ 4,346 $ 2,006 $ 1,621 $ 1,790 $ 73,964 $ 95,275 Total $ 247,441 $ 275,762 $ 155,230 $ 45,772 $ 22,317 $ 60,844 $ 75,671 $ 883,037 * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due. The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2021: As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 245,212 $ 245,212 Special Mention (Rating 6) — — — — — — 633 633 Substandard (Rating 7) — — — — — — 2,638 2,638 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 248,483 $ 248,483 C&I - other Pass (Ratings 1 through 5) $ 391,532 $ 362,256 $ 133,678 $ 82,177 $ 83,419 $ 53,310 $ — $ 1,106,372 Special Mention (Rating 6) 3,580 373 349 — 336 2 — 4,640 Substandard (Rating 7) 506 2,366 7,138 396 55 46 — 10,507 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 395,618 $ 364,995 $ 141,165 $ 82,573 $ 83,810 $ 53,358 $ — $ 1,121,519 CRE - owner occupied Pass (Ratings 1 through 5) $ 118,014 $ 143,045 $ 47,660 $ 30,523 $ 17,038 $ 46,185 $ 11,477 $ 413,942 Special Mention (Rating 6) 637 — — 233 1,846 1,202 — 3,918 Substandard (Rating 7) — — 2,080 1,239 522 — — 3,841 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 118,651 $ 143,045 $ 49,740 $ 31,995 $ 19,406 $ 47,387 $ 11,477 $ 421,701 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 176,813 $ 145,712 $ 88,697 $ 63,849 $ 55,752 $ 28,808 $ 8,592 $ 568,223 Special Mention (Rating 6) 7,295 20,881 1,802 12,230 5,494 5,580 — 53,282 Substandard (Rating 7) 1,105 6,297 15,563 1,087 943 — — 24,995 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 185,213 $ 172,890 $ 106,062 $ 77,166 $ 62,189 $ 34,388 $ 8,592 $ 646,500 Construction and land development Pass (Ratings 1 through 5) $ 394,045 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 892,425 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 10,362 — — — — — — 10,362 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 404,407 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 902,787 Multi-family Pass (Ratings 1 through 5) $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — — — — Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 1-4 family real estate Pass (Ratings 1 through 5) $ 47,097 $ 24,029 $ 16,188 $ 7,569 $ 5,845 $ 5,213 $ 3,079 $ 109,020 Special Mention (Rating 6) 37 — — — — — — 37 Substandard (Rating 7) — 178 — 437 201 — — 816 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 47,134 $ 24,207 $ 16,188 $ 8,006 $ 6,046 $ 5,213 $ 3,079 $ 109,873 Consumer Pass (Ratings 1 through 5) $ 1,558 $ 487 $ 108 $ 216 $ — $ 824 $ 2,031 $ 5,224 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — 137 — — — 137 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 1,558 $ 487 $ 108 $ 353 $ — $ 824 $ 2,031 $ 5,361 Total $ 1,418,701 $ 1,151,208 $ 514,237 $ 354,369 $ 180,072 $ 148,546 $ 289,503 $ 4,056,636 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 117,163 $ 54,261 $ 33,390 $ 14,274 $ 4,200 $ 455 $ — $ 223,743 Nonperforming 95 177 644 368 42 14 — 1,340 Total C&I - other $ 117,258 $ 54,438 $ 34,034 $ 14,642 $ 4,242 $ 469 $ — $ 225,083 Direct financing leases Performing $ 6,690 $ 12,130 $ 11,638 $ 9,235 $ 3,695 $ 956 $ — $ 44,344 Nonperforming — 732 — 52 18 45 — 847 Total Direct financing leases $ 6,690 $ 12,862 $ |
Note 5 - DERIVATIVES AND HEDGIN
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Derivatives and Hedging Activities | NOTE 5 – DERIVATIVES AND HEDGING ACTIVITIES Derivatives are summarized as follows as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Assets: Interest rate caps - hedged $ 6,108 $ 927 Interest rate caps 1,576 238 Interest rate swaps - hedged 126 — Interest rate swaps 89,645 221,055 $ 97,455 $ 222,220 Liabilities: Interest rate swaps - hedged $ (23,660) $ (4,080) Interest rate swaps (89,645) (221,055) $ (113,305) $ (225,135) The Company uses interest rate swap and cap instruments to manage interest rate risk related to the variability of interest payments due to changes in interest rates. The Company has entered into interest rate caps to hedge against the risk of rising interest rates on liabilities. The liabilities consist of $300.0 million of deposits and the benchmark rates hedged vary at 1-month LIBOR, 3-month LIBOR and the Prime Rate. The interest rate caps are designated as cash flow hedges in accordance with ASC 815. An initial premium of $3.5 million was paid upfront for the caps executed. The details of the interest rate caps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2022 December 31, 2021 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ 122 $ 5 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 50,000 1.57 % 219 11 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 25,000 1.80 % 109 5 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 % 529 60 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % 1,081 125 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % 540 62 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 861 161 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 1,765 332 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 882 166 $ 300,000 $ 6,108 $ 927 For derivative instruments that are designated as unhedged, the change in fair value of the derivative instrument is recognized into current earnings. The details of the unhedged interest rate caps are as follows: Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2022 December 31, 2021 (dollars in thousands) 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.90 % $ 119 $ 3 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 % 555 62 3/1/2020 3/1/2025 Derivatives - Assets 25,000 1.90 % 902 173 $ 75,000 $ 1,576 $ 238 The Company has entered into interest rate swaps to hedge against the risk of declining interest rates on floating rate loans. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2022 December 31, 2021 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 1.79 % $ (4,038) $ (17) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 1.79 % (5,768) (25) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 1.79 % (4,627) (34) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 25,000 1.40 % 1.79 % (2,884) (13) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 1.79 % (630) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 1.79 % (2,100) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 1.79 % (1,470) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 1.79 % (2,100) N/A $ 300,000 $ (23,617) $ (89) The Company has entered into interest rate swaps to hedge against the risk of rising rates on its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2022 December 31, 2021 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities $ 10,000 3.86 % 5.85 % $ (12) $ (1,035) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.86 % 5.85 % (9) (828) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.79 % 4.54 % (3) (996) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 3.10 % 5.17 % (4) (309) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 2.58 % 4.75 % (7) (360) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 2.58 % 4.75 % (8) (463) Guaranty Statutory Trust II* 12/15/2005 2/23/2036 Derivatives - Liabilities 10,310 2.95 % 4.09 % 126 N/A $ 49,310 $ 83 $ (3,991) *Acquired on 4/1/2022 with GFED acquisition. Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of AOCI. The Company has also entered into interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an equal and offsetting interest rate swap with a third-party financial institution. Additionally, the Company receives an upfront, non-refundable fee from the counterparty, dependent upon the pricing that is recognized upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations. Interest rate swaps that are not designated as hedging instruments are summarized as follows: June 30, 2022 December 31, 2021 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 2,213,781 $ 89,645 $ 2,024,599 $ 221,055 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 2,213,781 $ 89,645 $ 2,024,599 $ 221,055 The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three and six months ended June 30, 2022 and June 30, 2021 are as follows: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 68,205 $ 8,805 $ 48,903 $ 5,387 The effects of cash flow hedging: Gain (loss) on cash flow hedges: Interest rate caps on deposits - 241 - 163 Interest rate swaps on variable rate loans 671 - - - Interest rate swaps on junior subordinated debentures - 196 - 276 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 119,267 $ 14,134 $ 96,468 $ 10,977 The effects of cash flow hedging: Gain (loss) on cash flow hedges: Interest rate caps on deposits - 462 314 Interest rate swaps on variable rate loans 1,142 - - - Interest rate swaps on junior subordinated debentures - 463 - 545 The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Cash $ 1,720 $ 21,100 U.S treasuries and govt. sponsored agency securities 3,497 3,555 Municipal securities 109,018 139,166 Residential mortgage-backed and related securities 55,895 65,104 $ 170,130 $ 228,925 The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. Additionally, the Company manages financial institution counterparty credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, and uses ISDA master agreements, central clearing mechanisms and counterparty limits. The agreements contain bilateral collateral agreements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its borrower/customer counterparties through its normal loan underwriting and credit monitoring policies and procedures. The Company underwrites the combination of the base loan amount and potential swap exposure and focuses on high quality borrowers with strong collateral values. The majority of the Company’s swapped loan portfolio consists of loans on projects, with loan-to-values including the potential swap exposure that is below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
Note 6 - INCOME TAXES
Note 6 - INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 6 – IN COME TAXES A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income is as follows for the three and six months ended June 30, 2022 and June 30, 2021: For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 3,514 21.0 % $ 5,699 21.0 % $ 8,965 21.0 % $ 10,219 21.0 % Tax exempt income, net (2,476) (14.8) (1,802) (6.6) (4,698) (11.0) (3,521) (7.2) Bank-owned life insurance (73) (0.4) (95) (0.4) (146) (0.3) (194) (0.4) State income taxes, net of federal benefit, current year 982 5.9 1,247 4.6 2,273 5.3 2,271 4.7 Provision adjustment from accounting method change — — — — (1,181) (2.8) — — Tax credits (289) (1.7) (57) (0.2) (531) (1.2) (114) (0.2) Income from tax credit equity investments 158 0.9 — — (143) (0.3) — — Acquisition costs 242 1.4 — — 372 0.9 — — Excess tax benefit on stock options exercised and restricted stock awards vested (40) (0.2) (40) (0.1) (474) (1.1) (204) (0.4) Other (526) (3.2) (164) (0.7) (612) (1.5) (128) (0.3) Federal and state income tax expense $ 1,492 8.9 % $ 4,788 17.6 % $ 3,825 9.0 % $ 8,329 17.2 % |
Note 7 - EARNINGS PER SHARE
Note 7 - EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 7 - EARNINGS PER SHARE The following information was used in the computation of EPS on a basic and diluted basis: Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (dollars in thousands, except share data) Net income $ 15,242 $ 22,349 $ 38,866 $ 40,331 Basic EPS $ 0.88 $ 1.41 $ 2.36 $ 2.55 Diluted EPS $ 0.87 $ 1.39 $ 2.33 $ 2.52 Weighted average common shares outstanding 17,345,324 15,813,932 16,485,218 15,808,788 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 203,783 231,307 215,464 226,606 Weighted average common and common equivalent shares outstanding 17,549,107 16,045,239 16,700,682 16,035,394 |
Note 8- FAIR VALUE
Note 8- FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value | |
Fair Value | NOTE 8 – FAIR VALUE Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: ● Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets; ● Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and ● Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and liabilities measured at fair value on a recurring basis comprise the following at June 30, 2022 and December 31, 2021: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2022: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 20,448 $ — $ 20,448 $ — Residential mortgage-backed and related securities 81,247 — 81,247 — Municipal securities 202,985 — 202,985 — Asset-backed securities 19,956 — 19,956 — Other securities 46,777 — 46,777 — Derivatives 97,455 — 97,455 — Total assets measured at fair value $ 468,868 $ — $ 468,868 $ — Derivatives $ 113,305 $ — $ 113,305 $ — Total liabilities measured at fair value $ 113,305 $ — $ 113,305 $ — December 31, 2021: Securities AFS: U.S. govt. sponsored agency securities $ 23,328 $ — $ 23,328 $ — Residential mortgage-backed and related securities 94,323 — 94,323 — Municipal securities 168,266 — 168,266 — Asset-backed securities 27,124 — 27,124 — Other securities 24,789 — 24,789 — Derivatives 222,220 — 222,220 — Total assets measured at fair value $ 560,050 $ — $ 560,050 $ — Derivatives $ 225,135 $ — $ 225,135 $ — Total liabilities measured at fair value $ 225,135 $ — $ 225,135 $ — The securities AFS portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs). Interest rate caps are used for the purpose of hedging interest rate risk on deposits. The interest rate caps are further described in Note 5 to the Consolidated Financial Statements. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs). Interest rate swaps are used for the purpose of hedging interest rate risk on loans and subordinated debt. The interest rate swaps are further described in Note 5 to the Consolidated Financial Statements. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Interest rate swaps are also executed for select commercial customers. The interest rate swaps are further described in Note 5 to the Consolidated Financial Statements. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when a loan/lease is collaterally dependent). Assets measured at fair value on a non-recurring basis comprise the following at June 30, 2022 and December 31, 2021: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) June 30, 2022: Loans/leases evaluated individually $ 49,334 $ — $ — $ 49,334 OREO 221 — — 221 $ 49,555 $ — $ — $ 49,555 December 31, 2021: Loans/leases evaluated individually $ 6,618 $ — $ — $ 6,618 Loans/leases evaluated individually are valued at the lower of cost or fair value, and are classified as Level 3 in the fair value hierarchy. Fair value is measured based on the value of the collateral securing these loans/leases. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level Fair Value Measurements Fair Value Fair Value June 30, December 31, 2022 2021 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 49,334 $ 6,618 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % For the loans/leases evaluated individually, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs. There have been no changes in valuation techniques used for any assets or liabilities measured at fair value during the three months ended June 30, 2022 and 2021. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company's consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis: Fair Value As of June 30, 2022 As of December 31, 2021 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 92,379 $ 92,379 $ 37,490 $ 37,490 Federal funds sold Level 2 2,150 2,150 12,370 12,370 Interest-bearing deposits at financial institutions Level 2 54,382 54,382 75,292 75,292 Investment securities: HTM Level 2 508,505 497,954 472,385 522,297 AFS Level 2 371,413 371,413 337,830 337,830 Loans/leases receivable, net Level 3 45,680 49,334 6,128 6,618 Loans/leases receivable, net Level 2 5,659,798 5,662,328 4,595,283 4,478,899 Derivatives Level 2 97,455 97,455 222,220 222,220 Deposits: Nonmaturity deposits Level 2 5,259,509 5,259,509 4,501,424 4,501,424 Time deposits Level 2 561,148 546,315 421,348 419,453 Short-term borrowings Level 2 1,070 1,070 3,800 3,800 FHLB advances Level 2 400,000 400,000 15,000 15,000 Subordinated notes Level 2 133,562 136,175 113,850 116,203 Junior subordinated debentures Level 2 48,534 41,970 38,155 31,072 Derivatives Level 2 113,305 113,305 225,135 225,135 |
Note 9 - BUSINESS SEGMENT INFOR
Note 9 - BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Business Segment Information | NOTE 9 – BUSINESS SEGMENT INFORMATION Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company's internal organization, focusing on the financial information that the Company's operating decision-makers routinely use to make decisions about operating matters. The Company’s Commercial Banking business is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and GB. Each of these operating segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services. The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. Selected financial information on the Company's business segments is presented as follows as of and for the three and six months ended June 30, 2022 and 2021: Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB* All other Eliminations Total (dollars in thousands) Three Months Ended June 30, 2022 Total revenue $ 23,722 $ 31,715 $ 12,091 $ 23,669 $ 26,795 $ (27,005) $ 90,987 Net interest income 18,540 15,093 9,851 18,065 (2,494) 345 59,400 Provision for credit losses 617 (165) 100 10,648 — — 11,200 Net income (loss) from continuing operations 8,425 13,256 3,374 1,027 15,612 (26,452) 15,242 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,463 2,340 14,530 — — 18,333 Total assets 2,122,852 1,985,198 1,221,406 2,037,364 949,955 (923,834) 7,392,941 Three Months Ended June 30, 2021 Total revenue $ 21,676 $ 26,498 $ 10,809 $ 9,181 $ 137 $ (102) $ 68,199 Net interest income 16,152 14,005 8,672 6,479 (2,119) 327 43,516 Provision for loan/lease losses 136 (692) 756 (200) — — — Net income (loss) from continuing operations 8,679 11,145 3,109 3,685 22,320 (26,589) 22,349 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 Six Months Ended June 30, 2022 Total revenue $ 46,202 $ 56,926 $ 23,407 $ 31,513 $ 55,707 $ (56,073) $ 157,682 Net interest income 35,854 29,416 19,182 24,593 (4,603) 691 105,133 Provision for loan/lease losses (642) (936) (285) 10,147 — — 8,284 Net income (loss) from continuing operations 18,395 24,385 7,500 4,131 39,439 (54,984) 38,866 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,463 2,340 14,530 — — 18,333 Total assets 2,122,852 1,985,198 1,221,406 2,037,364 949,955 (923,834) 7,392,941 Six Months Ended June 30, 2021 Total revenue $ 42,960 $ 56,855 $ 21,232 $ 17,927 $ 503 $ (224) $ 139,253 Net interest income 31,938 27,611 17,040 12,548 (4,221) 575 85,491 Provision for loan/lease losses 2,248 1,492 2,122 851 — — 6,713 Net income (loss) from continuing operations 15,843 22,541 5,171 5,954 40,268 (49,446) 40,331 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 * On April 1, 2022, the Company acquired GFED and merged its subsidiary bank, Guaranty Bank, into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name. |
Note 10 - REGULATORY CAPITAL RE
Note 10 - REGULATORY CAPITAL REQUIREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
REGULATORY CAPITAL REQUIREMENTS | NOTE 10 – REGULATORY CAPITAL REQUIREMENTS The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and the subsidiary banks' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain OBS items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of June 30, 2022 and December 31, 2021, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject. Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of June 30, 2022 and December 31, 2021 are presented in the following tables (dollars in thousands). As of June 30, 2022 and December 31, 2021, each of the subsidiary banks met such capital requirements to be “well capitalized”. For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of June 30, 2022: Company: Total risk-based capital $ 907,484 13.40 % $ 543,913 > 8.00 % $ 713,885 > 10.50 % $ 679,891 > 10.00 % Tier 1 risk-based capital 689,200 10.18 407,934 > 6.00 577,907 > 8.50 543,913 > 8.00 Tier 1 leverage 689,200 9.61 286,877 > 4.00 286,877 > 4.00 358,596 > 5.00 Common equity Tier 1 640,666 9.46 305,951 > 4.50 475,923 > 7.00 441,929 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 257,008 13.73 % $ 149,733 > 8.00 % $ 196,525 > 10.50 % $ 187,166 > 10.00 % Tier 1 risk-based capital 233,523 12.48 112,300 > 6.00 159,091 > 8.50 149,733 > 8.00 Tier 1 leverage 233,523 10.74 87,009 > 4.00 87,009 > 4.00 108,761 > 5.00 Common equity Tier 1 233,523 12.48 84,225 > 4.50 131,016 > 7.00 121,658 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 276,943 14.39 % $ 153,929 > 8.00 % $ 202,032 > 10.50 % $ 192,412 > 10.00 % Tier 1 risk-based capital 252,865 13.14 115,447 > 6.00 163,550 > 8.50 153,929 > 8.00 Tier 1 leverage 252,865 12.99 77,854 > 4.00 77,854 > 4.00 97,318 > 5.00 Common equity Tier 1 252,865 13.14 86,585 > 4.50 134,688 > 7.00 125,067 > 6.50 Community State Bank: Total risk-based capital $ 132,136 11.84 % $ 89,251 > 8.00 % $ 117,142 > 10.50 % $ 111,563 > 10.00 % Tier 1 risk-based capital 118,157 10.59 66,938 > 6.00 94,829 > 8.50 89,251 > 8.00 Tier 1 leverage 118,157 9.92 47,630 > 4.00 47,630 > 4.00 59,537 > 5.00 Common equity Tier 1 118,157 10.59 50,204 > 4.50 78,094 > 7.00 72,516 > 6.50 Guaranty Bank: Total risk-based capital $ 220,292 12.08 % $ 148,137 > 8.00 % $ 194,429 > 10.50 % $ 185,171 > 10.00 % Tier 1 risk-based capital 197,467 10.83 111,103 > 6.00 157,395 > 8.50 148,137 > 8.00 Tier 1 leverage 197,467 10.62 74,370 > 4.00 74,370 > 4.00 92,963 > 5.00 Common equity Tier 1 197,467 10.83 83,327 > 4.50 129,620 > 7.00 120,361 > 6.50 For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of December 31, 2021: Company: Total risk-based capital $ 814,629 14.77 % $ 441,100 > 8.00 % $ 578,944 > 10.50 % $ 551,375 > 10.00 % Tier 1 risk-based capital 631,649 11.46 330,825 > 6.00 468,669 > 8.50 441,100 > 8.00 Tier 1 leverage 631,649 10.46 241,579 > 4.00 241,579 > 4.00 301,974 > 5.00 Common equity Tier 1 593,494 10.76 248,119 > 4.50 385,962 > 7.00 358,394 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 247,658 13.29 % $ 149,126 > 8.00 % $ 195,727 > 10.50 % $ 186,407 > 10.00 % Tier 1 risk-based capital 224,253 12.03 111,844 > 6.00 158,446 > 8.50 149,126 > 8.00 Tier 1 leverage 224,253 10.45 85,873 > 4.00 85,873 > 4.00 107,341 > 5.00 Common equity Tier 1 224,253 12.03 83,883 > 4.50 130,485 > 7.00 121,164 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 277,673 14.85 % $ 149,595 > 8.00 % $ 196,343 > 10.50 % $ 186,993 > 10.00 % Tier 1 risk-based capital 254,279 13.60 112,196 > 6.00 158,944 > 8.50 149,595 > 8.00 Tier 1 leverage 254,279 12.59 80,777 > 4.00 80,777 > 4.00 100,971 > 5.00 Common equity Tier 1 254,279 13.60 84,147 > 4.50 130,895 > 7.00 121,546 > 6.50 Community State Bank: Total risk-based capital $ 123,365 11.95 % $ 82,601 > 8.00 % $ 108,413 > 10.50 % $ 103,251 > 10.00 % Tier 1 risk-based capital 110,410 10.69 61,951 > 6.00 87,763 > 8.50 82,601 > 8.00 Tier 1 leverage 110,410 9.67 45,676 > 4.00 45,676 > 4.00 57,095 > 5.00 Common equity Tier 1 110,410 10.69 46,463 > 4.50 72,276 > 7.00 67,113 > 6.50 Springfield First Community Bank: Total risk-based capital $ 101,067 13.39 % $ 60,369 > 8.00 % $ 79,235 > 10.50 % $ 75,462 > 10.00 % Tier 1 risk-based capital 91,625 12.14 45,277 > 6.00 64,142 > 8.50 60,369 > 8.00 Tier 1 leverage 91,625 11.08 33,088 > 4.00 33,088 > 4.00 41,360 > 5.00 Common equity Tier 1 91,625 12.14 33,958 > 4.50 52,823 > 7.00 49,050 > 6.50 |
Note 1 - SUMMARY OF SIGNIFICA_2
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies | |
Basis of presentation | Basis of presentation The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2022 are not necessarily indicative of the results expected for the year ending December 31, 2022, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report. Allowance: Allowance for credit losses GB: Guaranty Bank, formerly known as Springfield First AOCI: Accumulated other comprehensive income (loss) Community Bank ASC: Accounting Standards Codification GFED: Guaranty Federal Bancshares, Inc. ASU: Accounting Standards Update HTM: Held to maturity Bates Companies: Bates Financial Advisors, Inc., Bates LIBOR: London Inter-Bank Offered Rate Financial Services, Inc., Bates Securities, Inc. and LIHTC: Low-income housing tax credit Bates Financial Group, Inc. m2: m2 Equipment Finance, LLC BOLI: Bank-owned life insurance NIM: Net interest margin Caps: Interest rate cap derivatives NPA: Nonperforming asset CARES Act: Coronavirus Aid, Relief and Economy NPL: Nonperforming loan Security Act OBS: Off-balance sheet CECL: Current Expected Credit Losses OREO: Other real estate owned Community National: Community National Bancorporation OTTI: Other-than-temporary impairment COVID-19: Coronavirus Disease 2019 PCAOB: Public Company Accounting Oversight Board CRBT: Cedar Rapids Bank & Trust Company PCD: Purchased credit deteriorated loan CRE: Commercial real estate PCI: Purchased credit impaired CSB: Community State Bank PPP: Paycheck Protection Program C&I: Commercial and industrial Provision: Provision for credit losses EBA: Excess balance account QCBT: Quad City Bank & Trust Company EPS: Earnings per share ROAA: Return on average assets Exchange Act: Securities Exchange Act of 1934, as ROAE: Return on average equity amended SBA: U.S. Small Business Administration FASB: Financial Accounting Standards Board SEC: Securities and Exchange Commission FDIC: Federal Deposit Insurance Corporation SFCB: Springfield First Community Bank Federal Reserve: Board of Governors of the Federal SFG: Specialty Finance Group Reserve System TA: Tangible assets FHLB: Federal Home Loan Bank TCE: Tangible common equity FRB: Federal Reserve Bank of Chicago TDRs: Troubled debt restructurings TEY: Tax equivalent yield The Company: QCR Holdings, Inc. |
Principles of consolidation | The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries which include the accounts of four commercial banks: QCBT, CRBT, CSB and GB. All are state-chartered commercial banks and all are members of the Federal Reserve system. On April 1, 2022, the Company completed its previously announced acquisition of GFED. See Note 2 to the Consolidated Financial Statements for further discussion. The combined bank changed its name to Guaranty Bank. The Company also engages in direct financing lease contracts through m2, a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation. |
Pending accounting developments | Pending accounting developments Reference Rate Reform Management has assessed the impacts of ASU 2020-04 and the related opportunities and risks involved in the LIBOR transition. In April 2022, the FASB issued ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures |
Note 02 - ACQUISITION (Tables)
Note 02 - ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ACQUISITION | |
Fair values of the assets acquired and liabilities assumed | As of April 1, 2022 (dollars in thousands) ASSETS Cash and due from banks $ 171,844 Interest-bearing deposits at financial institutions 17,134 Securities 143,017 Loans/leases receivable, net 801,697 Bank-owned life insurance 32,100 Premises and equipment 16,257 Restricted investment securities 2,220 Other real estate owned 55 Intangibles 10,264 Other assets 23,685 Total assets acquired $ 1,218,273 LIABILITIES Deposits $ 1,076,573 FHLB advances 16,000 Subordinated notes 19,621 Junior subordinated debentures 10,310 Other liabilities 15,225 Total liabilities assumed $ 1,137,729 Net assets acquired $ 80,544 CONSIDERATION PAID: Cash $ 26,871 Common stock 117,214 Total consideration paid $ 144,085 Goodwill $ 63,541 |
Schedule of carrying amount of loans acquired and classified | Guaranty Bank April 1, 2022 (dollars in thousands) Principal balance of PCD loans at acquisition $ 38,711 Allowance for credit losses at acquisition (5,902) Non-credit discount at acquisition (1,366) Fair value of PCD loans at acquisition $ 31,443 |
Schedule of changes in the carrying amount of core deposit | June 30, 2022 (dollars in thousands) Balance at acquisition $ 10,264 Amortization expense (294) Balance at the end of the period $ 9,970 Gross carrying amount $ 10,264 Accumulated amortization (294) Net book value $ 9,970 |
Estimated amortization of intangible assets | Year ending, December 31, Amount (dollars in thousands) 2022 $ 589 2023 1,162 2024 1,138 2025 1,109 2026 1,076 Thereafter 4,896 $ 9,970 |
Schedule of FHLB advances and other borrowings | Amount Rate Terms Maturity Date Collateral (dollars in thousands) FHLB advance 6,500 0.59% monthly interest payments; principal due at maturity 5/15/2023 commercial and residential real estate loans FHLB advance 6,500 0.82% monthly interest payments; principal due at maturity 5/15/2025 commercial and residential real estate loans FHLB advance 3,000 1.12% monthly interest payments; principal due at maturity 5/17/2027 commercial and residential real estate loans Subordinated notes 19,621 5.25% monthly interest payments; principal due at maturity 9/30/2030 unsecured Junior subordinated debentures 10,310 4.09% monthly interest payments; principal due at maturity 2/23/2036 unsecured Fair value of borrowings assumed $ 45,931 |
Schedule of unaudited pro forma combined operating results | Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands, except per share data) Net interest income $ 59,400 $ 53,324 $ 115,136 $ 104,650 Noninterest income $ 22,782 $ 22,112 $ 40,652 $ 48,216 Net income $ 15,242 $ 25,609 $ 41,365 $ 46,549 Earnings per common share: Basic $ 0.88 $ 1.43 $ 2.23 $ 2.60 Diluted $ 0.87 $ 1.41 $ 2.20 $ 2.57 |
Note 3 - INVESTMENT SECURITIES
Note 3 - INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized Fair Cost* Gains (Losses) Value (dollars in thousands) June 30, 2022: Securities HTM: Municipal securities $ 507,653 $ 5,359 $ (16,108) $ 496,904 Other securities 1,050 — — 1,050 $ 508,703 $ 5,359 $ (16,108) $ 497,954 Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 22,424 $ 22 $ (1,998) $ 20,448 Residential mortgage-backed and related securities 86,000 42 (4,795) 81,247 Municipal securities 241,074 122 (38,211) 202,985 Asset-backed securities 20,056 112 (212) 19,956 Other securities 47,768 93 (1,084) 46,777 $ 417,322 $ 391 $ (46,300) $ 371,413 * HTM securities shown on the balance sheet of $508.5 million represents amortized cost of $508.7 million, net of allowance for credit losses of $198 thousand as of June 30, 2022. Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2021: Securities HTM: Municipal securities $ 471,533 $ 49,715 $ — $ 521,248 Other securities 1,050 — (1) 1,049 $ 472,583 $ 49,715 $ (1) $ 522,297 Securities AFS: U.S. govt. sponsored agency securities $ 23,370 $ 254 $ (296) $ 23,328 Residential mortgage-backed and related securities 92,431 2,672 (780) 94,323 Municipal securities 163,253 5,228 (215) 168,266 Asset-backed securities 26,372 752 — 27,124 Other securities 24,568 251 (30) 24,789 $ 329,994 $ 9,157 $ (1,321) $ 337,830 * HTM securities shown on the balance sheet of $472.4 million represents amortized cost of $472.6 million, net of allowance for credit losses of $198 thousand as of December 31, 2021. |
Securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2022: Securities HTM: Municipal securities $ 68,468 $ (7,786) $ 95,070 $ (8,322) $ 163,538 $ (16,108) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,574 $ (1,359) $ 2,482 $ (639) $ 19,056 $ (1,998) Residential mortgage-backed and related securities 59,731 (2,073) 18,215 (2,722) 77,946 (4,795) Municipal securities 185,244 (37,071) 3,828 (1,140) 189,072 (38,211) Asset-backed securities 10,722 (212) — — 10,722 (212) Other securities 32,950 (1,084) — — 32,950 (1,084) $ 305,221 $ (41,799) $ 24,525 $ (4,501) $ 329,746 $ (46,300) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2021: Securities HTM: Other securities $ 1,049 $ (1) $ — $ — $ 1,049 $ (1) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 9,802 $ (156) $ 3,035 $ (140) $ 12,837 $ (296) Residential mortgage-backed and related securities 5,363 (67) 19,406 (713) 24,769 (780) Municipal securities 13,287 (211) 1,001 (4) 14,288 (215) Other securities 4,528 (30) — — 4,528 (30) $ 32,980 $ (464) $ 23,442 $ (857) $ 56,422 $ (1,321) |
Activity in allowance for credit losses | Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Municipal Other Municipal Other Municipal Other Municipal Other securities securities Total securities securities Total securities securities Total securities securities Total Allowance for credit losses: Beginning balance $ 198 $ — $ 198 $ 173 $ 1 $ 174 $ 198 $ — $ 198 $ — $ — $ — Impact of adopting ASU 2016-13 — — — — — — — — — 182 1 183 Provision for credit loss expense — — — — — — — — — (9) — (9) Balance, ending $ 198 $ — $ 198 $ 173 $ 1 $ 174 $ 198 $ — $ 198 $ 173 $ 1 $ 174 |
Realized gain (loss) on investments | Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Proceeds from sales of securities $ 111,375 $ 4,334 $ 111,375 $ 23,874 Gross gains from sales of securities — — — — Gross losses from sales of securities — (88) — (88) |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 2,968 $ 2,974 Due after one year through five years 16,632 16,589 Due after five years 489,103 478,391 $ 508,703 $ 497,954 Securities AFS: Due in one year or less $ 6,773 $ 6,772 Due after one year through five years 4,129 4,162 Due after five years 300,364 259,276 311,266 270,210 Residential mortgage-backed and related securities 86,000 81,247 Asset-backed securities 20,056 19,956 $ 417,322 $ 371,413 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 309,349 $ 305,321 Securities AFS: Municipal securities 236,628 198,515 Other securities 46,347 45,405 $ 282,975 $ 243,920 |
Note 4 - LOANS LEASES RECEIVABL
Note 4 - LOANS LEASES RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Composition of the loan/lease portfolio | June 30, 2022 December 31, 2021 (dollars in thousands) C&I: C&I - revolving $ 322,258 $ 248,483 C&I - other * 1,403,689 1,346,602 1,725,947 1,595,085 CRE - owner occupied 628,565 421,701 CRE - non-owner occupied 889,530 646,500 Construction and land development 1,080,372 918,571 Multi-family 860,742 600,412 Direct financing leases** 40,050 45,191 1-4 family real estate*** 473,141 377,361 Consumer 99,556 75,311 5,797,903 4,680,132 Allowance for credit losses (92,425) (78,721) $ 5,705,478 $ 4,601,411 ** Direct financing leases: Net minimum lease payments to be received $ 43,888 $ 49,362 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (4,003) (4,336) 40,050 45,191 Plus deferred lease origination costs, net of fees 387 568 40,437 45,759 Less allowance for credit losses (1,589) (1,546) $ 38,848 $ 44,213 * Includes equipment financing agreements outstanding at m2, totaling $253.4 million and $225.1 million as of June 30, 2022 and December 31, 2021, respectively and PPP loans totaling $79 thousand and $28.2 million as of June 30, 2022 and December 31, 2021, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. *** Includes residential real estate loans held for sale totaling $1.2 million and $3.8 million as of June 30, 2022 and December 31, 2021, respectively. |
Aging of the loan/lease portfolio by classes of loans/leases | As of June 30, 2022 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I: C&I - revolving $ 322,258 $ — $ — $ — $ — $ 322,258 C&I - other 1,397,799 3,136 1,038 1 1,715 1,403,689 CRE - owner occupied 626,209 — — — 2,356 628,565 CRE - non-owner occupied 882,587 — — — 6,943 889,530 Construction and land development 1,071,748 — 63 — 8,561 1,080,372 Multi-family 860,742 — — — — 860,742 Direct financing leases 38,940 213 43 — 854 40,050 1-4 family real estate 469,737 96 165 267 2,876 473,141 Consumer 99,194 50 43 — 269 99,556 $ 5,769,214 $ 3,495 $ 1,352 $ 268 $ 23,574 $ 5,797,903 As a percentage of total loan/lease portfolio 99.51 % 0.06 % 0.02 % 0.00 % 0.41 % 100.00 % As of December 31, 2021 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I C&I - revolving $ 248,483 $ — $ — $ — $ — $ 248,483 C&I - other 1,337,034 859 7,308 1 1,400 1,346,602 CRE - owner occupied 421,701 — — — — 421,701 CRE - non-owner occupied 646,500 — — — — 646,500 Construction and land development 918,498 — — — 73 918,571 Multi-family 600,412 — — — — 600,412 Direct financing leases 44,174 10 160 — 847 45,191 1-4 family real estate 374,912 1,325 716 — 408 377,361 Consumer 75,272 8 — — 31 75,311 $ 4,666,986 $ 2,202 $ 8,184 $ 1 $ 2,759 $ 4,680,132 As a percentage of total loan/lease portfolio 99.57 % 0.05 % 0.17 % 0.00 % 0.06 % 100.00 % |
NPLs by classes of loans/leases | As of June 30, 2022 Accruing Past Nonaccrual Nonaccrual Due 90 Days or Loans/Leases Loans/Leases Percentage of Classes of Loans/Leases More with an ACL without an ACL Total NPLs Total NPLs (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — - % C&I - other 1 1,547 168 1,716 7.20 CRE - owner occupied — 1,859 497 2,356 9.88 CRE - non-owner occupied — 70 6,873 6,943 29.12 Construction and land development — 6,879 1,682 8,561 35.91 Multi-family — — — — - Direct financing leases — 854 — 854 3.58 1-4 family real estate 267 1,575 1,301 3,143 13.18 Consumer — 269 — 269 1.13 $ 268 $ 13,053 $ 10,521 $ 23,842 100.00 % As of December 31, 2021 Accruing Past Nonaccrual Nonaccrual Due 90 Days or Loans/Leases Loans/Leases Percentage of Classes of Loans/Leases More with an ACL without an ACL Total NPLs Total NPLs (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — - % C&I - other 1 1,130 270 1,401 50.77 CRE - owner occupied — — — — - CRE - non-owner occupied — — — — - Construction and land development — 73 — 73 2.64 Multi-family — — — — - Direct financing leases — 115 732 847 30.69 1-4 family real estate — 408 — 408 14.78 Consumer — 31 — 31 1.12 $ 1 $ 1,757 $ 1,002 $ 2,760 100.00 % |
Allowance for credit losses on financing receivables | Changes in the ACL loans/leases by portfolio segment for the three and six months ended June 30, 2022 and 2021, respectively, are presented as follows: Three Months Ended June 30, 2022 CRE CRE Construction 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Family Revolving Other* Occupied Occupied Development Family Real Estate Consumer Total (dollars in thousands) Balance, beginning $ 3,619 $ 25,437 $ 7,897 $ 7,857 $ 14,671 $ 10,336 $ 4,154 $ 815 $ 74,786 Initial ACL recorded for PCD loans 600 7 2,481 1,076 1,100 481 137 20 5,902 Provision** 960 2,864 686 3,309 617 1,966 1,222 517 12,141 Charge-offs — (426) — (193) — — — (1) (620) Recoveries — 211 1 — — — — 4 216 Balance, ending $ 5,179 $ 28,093 $ 11,065 $ 12,049 $ 16,388 $ 12,783 $ 5,513 $ 1,355 $ 92,425 Six Months Ended June 30, 2022 CRE CRE Construction 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Family Revolving Other*** Occupied Occupied Development Family Real Estate Consumer Total (dollars in thousands) Balance, beginning $ 3,907 $ 25,982 $ 8,501 $ 8,549 $ 16,972 $ 9,339 $ 4,541 $ 930 $ 78,721 Initial ACL recorded for PCD loans 600 7 2,481 1,076 1,100 481 137 20 5,902 Provision** 672 2,533 77 2,489 (1,684) 2,963 835 407 8,292 Charge-offs — (875) — (193) — — — (8) (1,076) Recoveries — 446 6 128 — — — 6 586 Balance, ending $ 5,179 $ 28,093 $ 11,065 $ 12,049 $ 16,388 $ 12,783 $ 5,513 $ 1,355 $ 92,425 * Included within the C&I – Other column are ACL on leases with a beginning balance of $1.5 million, provision of $185 thousand, charge-offs of $109 thousand and recoveries of $48 thousand. ACL on leases was $1.6 million as of June 30, 2022. ** Provision for the three and six months ended June 30, 2022, included $11.0 million related to the acquired Guaranty Bank non-PCD loans. *** Included within the C&I - Other column are ACL on leases with a beginning balance of $1.5 million, provision of $158 thousand, charge-offs of $223 thousand and recoveries of $108 thousand. ACL on leases was $1.6 million as of June 30, 2022. Three Months Ended June 30, 2021 CRE CRE Construction Direct Residential 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Financing Real Family C&I Revolving Other* CRE Occupied Occupied Development Family Leases Estate Real Estate Consumer Total (dollars in thousands) Balance, beginning $ — $ 3,547 $ 33,167 $ — $ 9,147 $ 11,155 $ 12,327 $ 6,278 $ — $ — $ 5,165 $ 1,045 $ 81,831 Provision — (370) (2) — (1,121) (376) 1,313 849 — — (105) (329) (141) Charge-offs — — (998) — — (1,876) — (150) — — (646) (4) (3,674) Recoveries — — 158 — (6) 8 — — — — 511 207 878 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 Six Months Ended June 30, 2021 CRE CRE Construction Direct Residential 1-4 C&I - C&I - Owner Non-Owner and Land Multi- Financing Real Family C&I Revolving Other** CRE Occupied Occupied Development Family Leases Estate Real Estate Consumer Total (dollars in thousands) Balance, beginning $ 35,421 $ — $ — $ 42,161 $ — $ — $ — $ — $ 1,764 $ 3,732 $ — $ 1,298 $ 84,376 Adoption of ASU 2016-13 (35,421) 2,982 29,130 (42,161) 8,696 11,428 11,999 5,836 (1,764) (3,732) 5,042 (137) (8,102) Provision — 195 4,547 — (670) (662) 1,641 1,291 — — 56 (546) 5,852 Charge-offs — — (1,666) — — (1,876) — (150) — — (690) (5) (4,387) Recoveries — — 314 — (6) 21 — — — — 517 309 1,155 Balance, ending $ — $ 3,177 $ 32,325 $ — $ 8,020 $ 8,911 $ 13,640 $ 6,977 $ — $ — $ 4,925 $ 919 $ 78,894 * Included within the C&I – Other column are ACL on leases with adoption impact of $2.2 million, negative provision of $144 thousand, charge-offs of $130 thousand and recoveries of $58 thousand. ACL on leases was $2.0 million as of June 30, 2021. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $1.8 million, adoption impact of $685 thousand, negative provision of $279 thousand, charge-offs of $328 thousand and recoveries of $134 thousand. ACL on leases was $2.0 million as of June 30, 2021. The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows: As of June 30, 2022 Amortized Cost of Loans Receivable Allowance for Credit Losses Individually Collectively Individually Collectively Evaluated for Evaluated for Evaluated for Evaluated for Credit Losses Credit Losses Total Credit Losses Credit Losses Total (dollars in thousands) C&I : C&I - revolving $ 3,458 $ 318,800 $ 322,258 $ 933 $ 4,246 $ 5,179 C&I - other* 12,569 1,431,170 1,443,739 2,410 25,683 28,093 16,027 1,749,970 1,765,997 3,343 29,929 33,272 CRE - owner occupied 24,440 604,125 628,565 3,046 8,019 11,065 CRE - non-owner occupied 28,618 860,912 889,530 826 11,223 12,049 Construction and land development 18,986 1,061,386 1,080,372 1,669 14,719 16,388 Multi-family 1,300 859,442 860,742 393 12,390 12,783 1-4 family real estate 4,978 468,163 473,141 418 5,095 5,513 Consumer 609 98,947 99,556 59 1,296 1,355 $ 94,958 $ 5,702,945 $ 5,797,903 $ 9,754 $ 82,671 $ 92,425 * Included within the C&I – Other category are leases individually evaluated of $854 thousand with a related allowance for credit losses of $351 thousand and leases collectively evaluated of $39.3 million with a related allowance for credit losses of $1.2 million. As of December 31, 2021 Amortized Cost of Loans Receivable Allowance for Credit Losses Individually Collectively Individually Collectively Evaluated for Evaluated for Evaluated for Evaluated for Credit Losses Credit Losses Total Credit Losses Credit Losses Total (dollars in thousands) C&I : C&I - revolving $ 2,638 $ 245,845 $ 248,483 $ 168 $ 3,739 $ 3,907 C&I - other* 13,456 1,378,337 1,391,793 743 25,239 25,982 16,094 1,624,182 1,640,276 911 28,978 29,889 CRE - owner occupied 3,841 417,860 421,701 1,264 7,237 8,501 CRE - non-owner occupied 25,006 621,494 646,500 — 8,549 8,549 Construction and land development 10,436 908,135 918,571 11 16,961 16,972 Multi-family — 600,412 600,412 — 9,339 9,339 1-4 family real estate 2,950 374,411 377,361 329 4,212 4,541 Consumer 350 74,961 75,311 39 891 930 $ 58,677 $ 4,621,455 $ 4,680,132 $ 2,554 $ 76,167 $ 78,721 * Included within the C&I – Other category are leases individually evaluated of $847 thousand with a related allowance for credit losses of $35 thousand and leases collectively evaluated of $44.4 million with a related allowance for credit losses of $1.5 million. |
Schedule of loans receivable by collateral type | As of June 30, 2022 Non Commercial Owner-occupied Owner-Occupied Owner Occupied Assets CRE Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 3,353 $ — $ — $ — $ — $ 105 $ — $ 3,458 C&I - other* 2,063 214 — — 122 7,637 2,533 12,569 5,416 214 — — 122 7,742 2,533 16,027 CRE - owner occupied — 24,374 — 66 — — — 24,440 CRE - non-owner occupied — — 28,618 — — — — 28,618 Construction and land development — — 18,986 — — — — 18,986 Multi-family — — 1,300 — — — — 1,300 1-4 family real estate — — 2,017 2,961 — — — 4,978 Consumer — — — 602 — — 7 609 $ 5,416 $ 24,802 $ 50,921 $ 3,629 $ 122 $ 7,742 $ 2,540 $ 94,958 * Included within the C&I – Other category are leases individually evaluated of $854 thousand with primary collateral of equipment. As of December 31, 2021 Non Commercial Owner-Occupied Owner Occupied Assets Real Estate Real Estate Securities Equipment Other Total (dollars in thousands) C & I: C&I - revolving $ 2,518 $ — $ — $ — $ 120 $ — $ 2,638 C&I - other* 683 — 2,471 134 9,877 291 13,456 3,201 — 2,471 134 9,997 291 16,094 CRE - owner occupied — — 3,841 — — — 3,841 CRE - non-owner occupied — 25,006 — — — — 25,006 Construction and land development — 10,362 74 — — — 10,436 Multi-family — — — — — — — 1-4 family real estate — 817 2,133 — — — 2,950 Consumer — — 340 — 1 9 350 $ 3,201 $ 36,185 $ 8,859 $ 134 $ 9,998 $ 300 $ 58,677 * Included within the C&I – Other category are leases individually evaluated of $847 thousand with primary collateral of equipment. |
Schedule of financing receivable credit quality indicators based on internally assigned Risk rating | As of June 30, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 316,980 $ 316,980 Special Mention (Rating 6) — — — — — — 1,820 1,820 Substandard (Rating 7) — — — — — — 3,458 3,458 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 322,258 $ 322,258 C&I - other Pass (Ratings 1 through 5) $ 250,926 $ 298,050 $ 275,254 $ 116,262 $ 78,628 $ 120,831 $ — $ 1,139,951 Special Mention (Rating 6) 365 20 19 20 — 323 — 747 Substandard (Rating 7) 2,396 205 763 5,729 348 165 — 9,606 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 253,687 $ 298,275 $ 276,036 $ 122,011 $ 78,976 $ 121,319 $ — $ 1,150,304 CRE - owner occupied Pass (Ratings 1 through 5) $ 91,565 $ 184,453 $ 168,819 $ 48,013 $ 31,918 $ 58,119 $ 16,268 $ 599,155 Special Mention (Rating 6) 1,730 — 2,915 — 145 1,786 — 6,576 Substandard (Rating 7) 1,981 1,073 16,802 1,260 1,218 500 — 22,834 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 95,276 $ 185,526 $ 188,536 $ 49,273 $ 33,281 $ 60,405 $ 16,268 $ 628,565 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 178,954 $ 216,956 $ 203,144 $ 92,322 $ 60,792 $ 58,123 $ 6,379 $ 816,670 Special Mention (Rating 6) 1,825 4,244 13,809 1,757 15,733 7,205 — 44,573 Substandard (Rating 7) — 720 11,895 15,391 — — 281 28,287 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 180,779 $ 221,920 $ 228,848 $ 109,470 $ 76,525 $ 65,328 $ 6,660 $ 889,530 Construction and land development Pass (Ratings 1 through 5) $ 184,842 $ 358,523 $ 254,180 $ 77,982 $ 34,553 $ — $ 19,253 $ 929,333 Special Mention (Rating 6) 328 163 — — — — — 491 Substandard (Rating 7) 4,794 11,814 — — — 25 — 16,633 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 189,964 $ 370,500 $ 254,180 $ 77,982 $ 34,553 $ 25 $ 19,253 $ 946,457 Multi-family Pass (Ratings 1 through 5) $ 139,369 $ 266,098 $ 233,484 $ 102,945 $ 104,833 $ 10,066 $ 2,598 $ 859,393 Special Mention (Rating 6) — 49 — — — — — 49 Substandard (Rating 7) — — 1,300 — — — — 1,300 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 139,369 $ 266,147 $ 234,784 $ 102,945 $ 104,833 $ 10,066 $ 2,598 $ 860,742 1-4 family real estate Pass (Ratings 1 through 5) $ 23,427 $ 41,055 $ 18,981 $ 13,400 $ 5,895 $ 6,567 $ 2,297 $ 111,622 Special Mention (Rating 6) — 302 — — — — — 302 Substandard (Rating 7) — — 177 — 430 198 — 805 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 23,427 $ 41,357 $ 19,158 $ 13,400 $ 6,325 $ 6,765 $ 2,297 $ 112,729 Consumer Pass (Ratings 1 through 5) $ 168 $ 859 $ 465 $ 92 $ 206 $ 716 $ 1,650 $ 4,156 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — 125 — 125 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 168 $ 859 $ 465 $ 92 $ 206 $ 841 $ 1,650 $ 4,281 Total $ 882,670 $ 1,384,584 $ 1,202,007 $ 475,173 $ 334,699 $ 264,749 $ 370,984 $ 4,914,866 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 245,212 $ 245,212 Special Mention (Rating 6) — — — — — — 633 633 Substandard (Rating 7) — — — — — — 2,638 2,638 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 248,483 $ 248,483 C&I - other Pass (Ratings 1 through 5) $ 391,532 $ 362,256 $ 133,678 $ 82,177 $ 83,419 $ 53,310 $ — $ 1,106,372 Special Mention (Rating 6) 3,580 373 349 — 336 2 — 4,640 Substandard (Rating 7) 506 2,366 7,138 396 55 46 — 10,507 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 395,618 $ 364,995 $ 141,165 $ 82,573 $ 83,810 $ 53,358 $ — $ 1,121,519 CRE - owner occupied Pass (Ratings 1 through 5) $ 118,014 $ 143,045 $ 47,660 $ 30,523 $ 17,038 $ 46,185 $ 11,477 $ 413,942 Special Mention (Rating 6) 637 — — 233 1,846 1,202 — 3,918 Substandard (Rating 7) — — 2,080 1,239 522 — — 3,841 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 118,651 $ 143,045 $ 49,740 $ 31,995 $ 19,406 $ 47,387 $ 11,477 $ 421,701 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 176,813 $ 145,712 $ 88,697 $ 63,849 $ 55,752 $ 28,808 $ 8,592 $ 568,223 Special Mention (Rating 6) 7,295 20,881 1,802 12,230 5,494 5,580 — 53,282 Substandard (Rating 7) 1,105 6,297 15,563 1,087 943 — — 24,995 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 185,213 $ 172,890 $ 106,062 $ 77,166 $ 62,189 $ 34,388 $ 8,592 $ 646,500 Construction and land development Pass (Ratings 1 through 5) $ 394,045 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 892,425 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 10,362 — — — — — — 10,362 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 404,407 $ 248,360 $ 126,941 $ 106,790 $ 3,012 $ — $ 13,277 $ 902,787 Multi-family Pass (Ratings 1 through 5) $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — — — — — — Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 266,120 $ 197,224 $ 74,033 $ 47,486 $ 5,609 $ 7,376 $ 2,564 $ 600,412 1-4 family real estate Pass (Ratings 1 through 5) $ 47,097 $ 24,029 $ 16,188 $ 7,569 $ 5,845 $ 5,213 $ 3,079 $ 109,020 Special Mention (Rating 6) 37 — — — — — — 37 Substandard (Rating 7) — 178 — 437 201 — — 816 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 47,134 $ 24,207 $ 16,188 $ 8,006 $ 6,046 $ 5,213 $ 3,079 $ 109,873 Consumer Pass (Ratings 1 through 5) $ 1,558 $ 487 $ 108 $ 216 $ — $ 824 $ 2,031 $ 5,224 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) — — — 137 — — — 137 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 1,558 $ 487 $ 108 $ 353 $ — $ 824 $ 2,031 $ 5,361 Total $ 1,418,701 $ 1,151,208 $ 514,237 $ 354,369 $ 180,072 $ 148,546 $ 289,503 $ 4,056,636 |
Schedule of financing receivable credit quality indicators based on delinquency status | As of June 30, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2022 2021 2020 2019 2018 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 117,018 $ 85,405 $ 33,432 $ 12,475 $ 3,539 $ 390 $ — $ 252,259 Nonperforming 47 1,007 62 10 — — — 1,126 Total C&I - other $ 117,065 $ 86,412 $ 33,494 $ 12,485 $ 3,539 $ 390 $ — $ 253,385 Construction and land development Performing $ 61,963 $ 57,234 $ 6,234 $ 4,747 $ 218 $ 471 $ 757 $ 131,624 Nonperforming 524 — 1,767 — — — — 2,291 Total Construction and land development $ 62,487 $ 57,234 $ 8,001 $ 4,747 $ 218 $ 471 $ 757 $ 133,915 Direct financing leases Performing $ 15,481 $ 6,173 $ 7,528 $ 5,914 $ 3,234 $ 866 $ — $ 39,196 Nonperforming — 779 75 — — — — 854 Total Direct financing leases $ 15,481 $ 6,952 $ 7,603 $ 5,914 $ 3,234 $ 866 $ — $ 40,050 1-4 family real estate Performing $ 46,135 $ 119,804 $ 100,058 $ 20,613 $ 13,705 $ 57,076 $ 950 $ 358,341 Nonperforming — 85 1,728 7 — 251 — 2,071 Total 1-4 family real estate $ 46,135 $ 119,889 $ 101,786 $ 20,620 $ 13,705 $ 57,327 $ 950 $ 360,412 Consumer Performing $ 6,124 $ 5,263 $ 4,333 $ 1,992 $ 1,588 $ 1,742 $ 73,964 $ 95,006 Nonperforming 149 12 13 14 33 48 — 269 Total Consumer $ 6,273 $ 5,275 $ 4,346 $ 2,006 $ 1,621 $ 1,790 $ 73,964 $ 95,275 Total $ 247,441 $ 275,762 $ 155,230 $ 45,772 $ 22,317 $ 60,844 $ 75,671 $ 883,037 * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due. As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2021 2020 2019 2018 2017 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 117,163 $ 54,261 $ 33,390 $ 14,274 $ 4,200 $ 455 $ — $ 223,743 Nonperforming 95 177 644 368 42 14 — 1,340 Total C&I - other $ 117,258 $ 54,438 $ 34,034 $ 14,642 $ 4,242 $ 469 $ — $ 225,083 Direct financing leases Performing $ 6,690 $ 12,130 $ 11,638 $ 9,235 $ 3,695 $ 956 $ — $ 44,344 Nonperforming — 732 — 52 18 45 — 847 Total Direct financing leases $ 6,690 $ 12,862 $ 11,638 $ 9,287 $ 3,713 $ 1,001 $ — $ 45,191 Construction and land development Performing $ 12,857 $ 2,080 $ — $ 494 $ — $ — $ 280 $ 15,711 Nonperforming — — — — 73 — — 73 Total Construction and land development $ 12,857 $ 2,080 $ — $ 494 $ 73 $ — $ 280 $ 15,784 1-4 family real estate Performing $ 104,005 $ 78,713 $ 19,001 $ 10,784 $ 10,533 $ 43,976 $ 68 $ 267,080 Nonperforming — — — 106 — 302 — 408 Total 1-4 family real estate $ 104,005 $ 78,713 $ 19,001 $ 10,890 $ 10,533 $ 44,278 $ 68 $ 267,488 Consumer Performing $ 4,891 $ 4,020 $ 2,114 $ 1,660 $ 593 $ 1,230 $ 55,411 $ 69,919 Nonperforming — — 15 — 15 1 — 31 Total Consumer $ 4,891 $ 4,020 $ 2,129 $ 1,660 $ 608 $ 1,231 $ 55,411 $ 69,950 Total $ 245,701 $ 152,113 $ 66,802 $ 36,973 $ 19,169 $ 46,979 $ 55,759 $ 623,496 |
Number and recorded investment of TDRs, by type of concession | For the three months ended June 30, 2022 For the six months ended June 30, 2022 Pre- Post- Pre- Post- Number of Modification Modification Number of Modification Modification Loans/ Recorded Recorded Specific Loans/ Recorded Recorded Specific Classes of Loans/Leases Leases Investment Investment Allowance Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay Direct Financing Leases 1 $ 51 $ 51 $ — 1 $ 51 $ 51 $ — For the three months ended June 30, 2021 For the six months ended June 30, 2021 Pre- Post- Pre- Post- Number of Modification Modification Number of Modification Modification Loans/ Recorded Recorded Specific Loans/ Recorded Recorded Specific Classes of Loans/Leases Leases Investment Investment Allowance Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Extension of Maturity Consumer 1 $ 2,532 $ 2,532 $ 182 1 $ 2,532 $ 2,532 $ 182 CONCESSION - Interest Rate Adjusted Below Market 1-4 family real estate 1 $ 54 $ 54 $ 6 1 $ 54 $ 54 $ 6 Consumer 1 13 13 1 1 13 13 1 2 $ 67 $ 67 $ 7 2 $ 67 $ 67 $ 7 TOTAL 3 $ 2,599 $ 2,599 $ 189 3 $ 2,599 $ 2,599 $ 189 |
Unfunded Loan Commitment | |
Notes Tables | |
Financing receivable credit quality indicators | Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 (dollars in thousands) Balance, beginning $ 7,819 $ 9,846 $ 6,886 $ — Impact of adopting ASU 2016-13 — — — 9,117 Provisions (credited) to expense (941) 141 (8) 870 Balance, ending $ 6,878 $ 9,987 $ 6,878 $ 9,987 * Provision for the three and six months ended June 30, 2022, included $1.4 million related to the acquired Guaranty Bank OBS exposures |
Note 5 - DERIVATIVES AND HEDG_2
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Summary of derivatives | June 30, 2022 December 31, 2021 (dollars in thousands) Assets: Interest rate caps - hedged $ 6,108 $ 927 Interest rate caps 1,576 238 Interest rate swaps - hedged 126 — Interest rate swaps 89,645 221,055 $ 97,455 $ 222,220 Liabilities: Interest rate swaps - hedged $ (23,660) $ (4,080) Interest rate swaps (89,645) (221,055) $ (113,305) $ (225,135) |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | June 30, 2022 December 31, 2021 (dollars in thousands) Cash $ 1,720 $ 21,100 U.S treasuries and govt. sponsored agency securities 3,497 3,555 Municipal securities 109,018 139,166 Residential mortgage-backed and related securities 55,895 65,104 $ 170,130 $ 228,925 |
Summary of impact of AOCI | Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 68,205 $ 8,805 $ 48,903 $ 5,387 The effects of cash flow hedging: Gain (loss) on cash flow hedges: Interest rate caps on deposits - 241 - 163 Interest rate swaps on variable rate loans 671 - - - Interest rate swaps on junior subordinated debentures - 196 - 276 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 119,267 $ 14,134 $ 96,468 $ 10,977 The effects of cash flow hedging: Gain (loss) on cash flow hedges: Interest rate caps on deposits - 462 314 Interest rate swaps on variable rate loans 1,142 - - - Interest rate swaps on junior subordinated debentures - 463 - 545 |
Interest rate cap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2022 December 31, 2021 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ 122 $ 5 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 50,000 1.57 % 219 11 Deposits 1/1/2020 1/1/2023 Derivatives - Assets 25,000 1.80 % 109 5 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 % 529 60 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % 1,081 125 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % 540 62 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 861 161 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 1,765 332 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 882 166 $ 300,000 $ 6,108 $ 927 |
Changes in the fair value of the underlying derivative contracts | Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2022 December 31, 2021 (dollars in thousands) 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.90 % $ 119 $ 3 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 % 555 62 3/1/2020 3/1/2025 Derivatives - Assets 25,000 1.90 % 902 173 $ 75,000 $ 1,576 $ 238 |
Interest rate swap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2022 December 31, 2021 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 1.79 % $ (4,038) $ (17) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 1.79 % (5,768) (25) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 1.79 % (4,627) (34) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 25,000 1.40 % 1.79 % (2,884) (13) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 1.79 % (630) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 1.79 % (2,100) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 1.79 % (1,470) N/A Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 1.79 % (2,100) N/A $ 300,000 $ (23,617) $ (89) Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2022 December 31, 2021 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities $ 10,000 3.86 % 5.85 % $ (12) $ (1,035) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.86 % 5.85 % (9) (828) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.79 % 4.54 % (3) (996) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 3.10 % 5.17 % (4) (309) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 2.58 % 4.75 % (7) (360) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 2.58 % 4.75 % (8) (463) Guaranty Statutory Trust II* 12/15/2005 2/23/2036 Derivatives - Liabilities 10,310 2.95 % 4.09 % 126 N/A $ 49,310 $ 83 $ (3,991) |
Changes in the fair value of the underlying derivative contracts | June 30, 2022 December 31, 2021 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 2,213,781 $ 89,645 $ 2,024,599 $ 221,055 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 2,213,781 $ 89,645 $ 2,024,599 $ 221,055 |
Note 6 - INCOME TAXES (Tables)
Note 6 - INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Reconciliation of the expected federal income tax expense | For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 3,514 21.0 % $ 5,699 21.0 % $ 8,965 21.0 % $ 10,219 21.0 % Tax exempt income, net (2,476) (14.8) (1,802) (6.6) (4,698) (11.0) (3,521) (7.2) Bank-owned life insurance (73) (0.4) (95) (0.4) (146) (0.3) (194) (0.4) State income taxes, net of federal benefit, current year 982 5.9 1,247 4.6 2,273 5.3 2,271 4.7 Provision adjustment from accounting method change — — — — (1,181) (2.8) — — Tax credits (289) (1.7) (57) (0.2) (531) (1.2) (114) (0.2) Income from tax credit equity investments 158 0.9 — — (143) (0.3) — — Acquisition costs 242 1.4 — — 372 0.9 — — Excess tax benefit on stock options exercised and restricted stock awards vested (40) (0.2) (40) (0.1) (474) (1.1) (204) (0.4) Other (526) (3.2) (164) (0.7) (612) (1.5) (128) (0.3) Federal and state income tax expense $ 1,492 8.9 % $ 4,788 17.6 % $ 3,825 9.0 % $ 8,329 17.2 % |
Note 7 - EARNINGS PER SHARE (Ta
Note 7 - EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings per Share | |
Schedule of computation of earnings per share on a basic and diluted basis | Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (dollars in thousands, except share data) Net income $ 15,242 $ 22,349 $ 38,866 $ 40,331 Basic EPS $ 0.88 $ 1.41 $ 2.36 $ 2.55 Diluted EPS $ 0.87 $ 1.39 $ 2.33 $ 2.52 Weighted average common shares outstanding 17,345,324 15,813,932 16,485,218 15,808,788 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 203,783 231,307 215,464 226,606 Weighted average common and common equivalent shares outstanding 17,549,107 16,045,239 16,700,682 16,035,394 |
Note 8 - FAIR VALUE (Tables)
Note 8 - FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of assets measured at fair value | Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2022: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 20,448 $ — $ 20,448 $ — Residential mortgage-backed and related securities 81,247 — 81,247 — Municipal securities 202,985 — 202,985 — Asset-backed securities 19,956 — 19,956 — Other securities 46,777 — 46,777 — Derivatives 97,455 — 97,455 — Total assets measured at fair value $ 468,868 $ — $ 468,868 $ — Derivatives $ 113,305 $ — $ 113,305 $ — Total liabilities measured at fair value $ 113,305 $ — $ 113,305 $ — December 31, 2021: Securities AFS: U.S. govt. sponsored agency securities $ 23,328 $ — $ 23,328 $ — Residential mortgage-backed and related securities 94,323 — 94,323 — Municipal securities 168,266 — 168,266 — Asset-backed securities 27,124 — 27,124 — Other securities 24,789 — 24,789 — Derivatives 222,220 — 222,220 — Total assets measured at fair value $ 560,050 $ — $ 560,050 $ — Derivatives $ 225,135 $ — $ 225,135 $ — Total liabilities measured at fair value $ 225,135 $ — $ 225,135 $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) June 30, 2022: Loans/leases evaluated individually $ 49,334 $ — $ — $ 49,334 OREO 221 — — 221 $ 49,555 $ — $ — $ 49,555 December 31, 2021: Loans/leases evaluated individually $ 6,618 $ — $ — $ 6,618 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value June 30, December 31, 2022 2021 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 49,334 $ 6,618 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % |
Schedule of assets and liabilities measured at fair value | Fair Value As of June 30, 2022 As of December 31, 2021 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 92,379 $ 92,379 $ 37,490 $ 37,490 Federal funds sold Level 2 2,150 2,150 12,370 12,370 Interest-bearing deposits at financial institutions Level 2 54,382 54,382 75,292 75,292 Investment securities: HTM Level 2 508,505 497,954 472,385 522,297 AFS Level 2 371,413 371,413 337,830 337,830 Loans/leases receivable, net Level 3 45,680 49,334 6,128 6,618 Loans/leases receivable, net Level 2 5,659,798 5,662,328 4,595,283 4,478,899 Derivatives Level 2 97,455 97,455 222,220 222,220 Deposits: Nonmaturity deposits Level 2 5,259,509 5,259,509 4,501,424 4,501,424 Time deposits Level 2 561,148 546,315 421,348 419,453 Short-term borrowings Level 2 1,070 1,070 3,800 3,800 FHLB advances Level 2 400,000 400,000 15,000 15,000 Subordinated notes Level 2 133,562 136,175 113,850 116,203 Junior subordinated debentures Level 2 48,534 41,970 38,155 31,072 Derivatives Level 2 113,305 113,305 225,135 225,135 |
Note 9 - BUSINESS SEGMENT INF_2
Note 9 - BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of business segment information | Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB* All other Eliminations Total (dollars in thousands) Three Months Ended June 30, 2022 Total revenue $ 23,722 $ 31,715 $ 12,091 $ 23,669 $ 26,795 $ (27,005) $ 90,987 Net interest income 18,540 15,093 9,851 18,065 (2,494) 345 59,400 Provision for credit losses 617 (165) 100 10,648 — — 11,200 Net income (loss) from continuing operations 8,425 13,256 3,374 1,027 15,612 (26,452) 15,242 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,463 2,340 14,530 — — 18,333 Total assets 2,122,852 1,985,198 1,221,406 2,037,364 949,955 (923,834) 7,392,941 Three Months Ended June 30, 2021 Total revenue $ 21,676 $ 26,498 $ 10,809 $ 9,181 $ 137 $ (102) $ 68,199 Net interest income 16,152 14,005 8,672 6,479 (2,119) 327 43,516 Provision for loan/lease losses 136 (692) 756 (200) — — — Net income (loss) from continuing operations 8,679 11,145 3,109 3,685 22,320 (26,589) 22,349 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 Six Months Ended June 30, 2022 Total revenue $ 46,202 $ 56,926 $ 23,407 $ 31,513 $ 55,707 $ (56,073) $ 157,682 Net interest income 35,854 29,416 19,182 24,593 (4,603) 691 105,133 Provision for loan/lease losses (642) (936) (285) 10,147 — — 8,284 Net income (loss) from continuing operations 18,395 24,385 7,500 4,131 39,439 (54,984) 38,866 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,463 2,340 14,530 — — 18,333 Total assets 2,122,852 1,985,198 1,221,406 2,037,364 949,955 (923,834) 7,392,941 Six Months Ended June 30, 2021 Total revenue $ 42,960 $ 56,855 $ 21,232 $ 17,927 $ 503 $ (224) $ 139,253 Net interest income 31,938 27,611 17,040 12,548 (4,221) 575 85,491 Provision for loan/lease losses 2,248 1,492 2,122 851 — — 6,713 Net income (loss) from continuing operations 15,843 22,541 5,171 5,954 40,268 (49,446) 40,331 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 1,946 2,979 5,440 — — 10,365 Total assets 2,059,634 1,913,761 1,079,930 850,067 81,076 (179,303) 5,805,165 * On April 1, 2022, the Company acquired GFED and merged its subsidiary bank, Guaranty Bank, into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name. |
Note 10 - REGULATORY CAPITAL _2
Note 10 - REGULATORY CAPITAL REQUIREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of the company and the subsidiary banks actual capital amounts and ratios | For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of June 30, 2022: Company: Total risk-based capital $ 907,484 13.40 % $ 543,913 > 8.00 % $ 713,885 > 10.50 % $ 679,891 > 10.00 % Tier 1 risk-based capital 689,200 10.18 407,934 > 6.00 577,907 > 8.50 543,913 > 8.00 Tier 1 leverage 689,200 9.61 286,877 > 4.00 286,877 > 4.00 358,596 > 5.00 Common equity Tier 1 640,666 9.46 305,951 > 4.50 475,923 > 7.00 441,929 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 257,008 13.73 % $ 149,733 > 8.00 % $ 196,525 > 10.50 % $ 187,166 > 10.00 % Tier 1 risk-based capital 233,523 12.48 112,300 > 6.00 159,091 > 8.50 149,733 > 8.00 Tier 1 leverage 233,523 10.74 87,009 > 4.00 87,009 > 4.00 108,761 > 5.00 Common equity Tier 1 233,523 12.48 84,225 > 4.50 131,016 > 7.00 121,658 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 276,943 14.39 % $ 153,929 > 8.00 % $ 202,032 > 10.50 % $ 192,412 > 10.00 % Tier 1 risk-based capital 252,865 13.14 115,447 > 6.00 163,550 > 8.50 153,929 > 8.00 Tier 1 leverage 252,865 12.99 77,854 > 4.00 77,854 > 4.00 97,318 > 5.00 Common equity Tier 1 252,865 13.14 86,585 > 4.50 134,688 > 7.00 125,067 > 6.50 Community State Bank: Total risk-based capital $ 132,136 11.84 % $ 89,251 > 8.00 % $ 117,142 > 10.50 % $ 111,563 > 10.00 % Tier 1 risk-based capital 118,157 10.59 66,938 > 6.00 94,829 > 8.50 89,251 > 8.00 Tier 1 leverage 118,157 9.92 47,630 > 4.00 47,630 > 4.00 59,537 > 5.00 Common equity Tier 1 118,157 10.59 50,204 > 4.50 78,094 > 7.00 72,516 > 6.50 Guaranty Bank: Total risk-based capital $ 220,292 12.08 % $ 148,137 > 8.00 % $ 194,429 > 10.50 % $ 185,171 > 10.00 % Tier 1 risk-based capital 197,467 10.83 111,103 > 6.00 157,395 > 8.50 148,137 > 8.00 Tier 1 leverage 197,467 10.62 74,370 > 4.00 74,370 > 4.00 92,963 > 5.00 Common equity Tier 1 197,467 10.83 83,327 > 4.50 129,620 > 7.00 120,361 > 6.50 For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of December 31, 2021: Company: Total risk-based capital $ 814,629 14.77 % $ 441,100 > 8.00 % $ 578,944 > 10.50 % $ 551,375 > 10.00 % Tier 1 risk-based capital 631,649 11.46 330,825 > 6.00 468,669 > 8.50 441,100 > 8.00 Tier 1 leverage 631,649 10.46 241,579 > 4.00 241,579 > 4.00 301,974 > 5.00 Common equity Tier 1 593,494 10.76 248,119 > 4.50 385,962 > 7.00 358,394 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 247,658 13.29 % $ 149,126 > 8.00 % $ 195,727 > 10.50 % $ 186,407 > 10.00 % Tier 1 risk-based capital 224,253 12.03 111,844 > 6.00 158,446 > 8.50 149,126 > 8.00 Tier 1 leverage 224,253 10.45 85,873 > 4.00 85,873 > 4.00 107,341 > 5.00 Common equity Tier 1 224,253 12.03 83,883 > 4.50 130,485 > 7.00 121,164 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 277,673 14.85 % $ 149,595 > 8.00 % $ 196,343 > 10.50 % $ 186,993 > 10.00 % Tier 1 risk-based capital 254,279 13.60 112,196 > 6.00 158,944 > 8.50 149,595 > 8.00 Tier 1 leverage 254,279 12.59 80,777 > 4.00 80,777 > 4.00 100,971 > 5.00 Common equity Tier 1 254,279 13.60 84,147 > 4.50 130,895 > 7.00 121,546 > 6.50 Community State Bank: Total risk-based capital $ 123,365 11.95 % $ 82,601 > 8.00 % $ 108,413 > 10.50 % $ 103,251 > 10.00 % Tier 1 risk-based capital 110,410 10.69 61,951 > 6.00 87,763 > 8.50 82,601 > 8.00 Tier 1 leverage 110,410 9.67 45,676 > 4.00 45,676 > 4.00 57,095 > 5.00 Common equity Tier 1 110,410 10.69 46,463 > 4.50 72,276 > 7.00 67,113 > 6.50 Springfield First Community Bank: Total risk-based capital $ 101,067 13.39 % $ 60,369 > 8.00 % $ 79,235 > 10.50 % $ 75,462 > 10.00 % Tier 1 risk-based capital 91,625 12.14 45,277 > 6.00 64,142 > 8.50 60,369 > 8.00 Tier 1 leverage 91,625 11.08 33,088 > 4.00 33,088 > 4.00 41,360 > 5.00 Common equity Tier 1 91,625 12.14 33,958 > 4.50 52,823 > 7.00 49,050 > 6.50 |
Note 1 - SUMMARY OF SIGNIFICA_3
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2022 subsidiary |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of subsidiaries commercial banks | 4 |
Note 02 - ACQUISITION (Details)
Note 02 - ACQUISITION (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2022 USD ($) item $ / shares shares | Mar. 31, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 144,085 | |||
Prepaid of FHLB advances | 16,000 | |||
Acquisition costs | $ 1,973 | 3,824 | ||
Post-acquisition, compensation, transition and integration costs | 4,800 | |||
Premises and equipment | 16,257 | 16,257 | ||
Core deposit intangible | $ 10,264 | $ 10,264 | ||
Guaranty Federal Bancshares, Inc | ||||
Business Acquisition [Line Items] | ||||
Business combination consideration in cash (per share) | $ / shares | $ 30.50 | |||
Business acquisition, equity interest issued or issuable, number of shares | shares | 0.58775 | |||
Business combination mixed consideration in cash (per share) | $ / shares | $ 6.10 | |||
Business combination shares issuable mixed consideration | shares | 0.4702 | |||
Business acquisition, share price | $ / shares | $ 56.59 | |||
Business Combination, Consideration Transferred | $ 144,085 | $ 26,900 | ||
Business combination, stock consideration | $ 117,200 | |||
Premises and equipment | $ 16,257 | |||
Number of branch locations acquired | item | 16 | |||
Useful life | 39 years | |||
Core deposit intangible | $ 10,264 | |||
Estimated useful life of deposits | 10 years | |||
Accretable discount of non-PCD loans | $ 12,000 | |||
Provision for non-PCD loans acquired. | $ 11,000 |
Note 02 - ACQUISITION - Fair va
Note 02 - ACQUISITION - Fair value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Apr. 01, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | |
ASSETS | |||
Cash and due from banks | $ 171,844 | ||
Interest-bearing deposits at financial institutions | 17,134 | ||
Securities | 143,017 | ||
Loans/leases receivable, net | 801,697 | ||
Bank-owned life insurance | 32,100 | ||
Premises and equipment | 16,257 | ||
Restricted investment securities | 2,220 | ||
Other real estate owned | 55 | ||
Intangibles | 10,264 | ||
Other assets | 23,685 | ||
Total assets acquired | 1,218,273 | ||
LIABILITIES | |||
Deposits | 1,076,573 | ||
FHLB advances | 16,000 | ||
Junior subordinated debentures | 10,310 | ||
Other liabilities | 15,225 | ||
Total liabilities assumed | 1,137,729 | ||
Net assets acquired | 80,544 | ||
Consideration paid: | |||
Common stock | 117,214 | ||
Total consideration paid | 144,085 | ||
Goodwill | $ 63,541 | ||
Guaranty Federal Bancshares, Inc | |||
ASSETS | |||
Cash and due from banks | $ 171,844 | ||
Interest-bearing deposits at financial institutions | 17,134 | ||
Securities | 143,017 | ||
Loans/leases receivable, net | 801,697 | ||
Bank-owned life insurance | 32,100 | ||
Premises and equipment | 16,257 | ||
Restricted investment securities | 2,220 | ||
Other real estate owned | 55 | ||
Intangibles | 10,264 | ||
Other assets | 23,685 | ||
Total assets acquired | 1,218,273 | ||
LIABILITIES | |||
Deposits | 1,076,573 | ||
FHLB advances | 16,000 | ||
Subordinated notes | 19,621 | ||
Junior subordinated debentures | 10,310 | ||
Other liabilities | 15,225 | ||
Total liabilities assumed | 1,137,729 | ||
Net assets acquired | 80,544 | ||
Consideration paid: | |||
Cash paid | 26,871 | ||
Common stock | 117,214 | ||
Total consideration paid | 144,085 | $ 26,900 | |
Goodwill | $ 63,541 |
Note 02 - ACQUISITION - Purchas
Note 02 - ACQUISITION - Purchased Loans (Details) - Guaranty Bank $ in Thousands | Apr. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Principal balance of PCD loans at acquisition | $ 38,711 |
Allowance for credit losses at acquisition | (5,902) |
Non-credit discount at acquisition | (1,366) |
Fair value of PCD loans at acquisition | $ 31,443 |
Note 02 - ACQUISITION - Core De
Note 02 - ACQUISITION - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in intangible assets | ||||
Balance at the beginning of period | $ 9,349 | |||
Amortization of intangibles | $ 787 | $ 508 | 1,280 | $ 1,016 |
Balance at the end of the period | 18,333 | 10,365 | 18,333 | 10,365 |
Net book value | 18,333 | 10,365 | 18,333 | 10,365 |
Estimated amortization of intangible assets | ||||
Net book value | 18,333 | $ 10,365 | 18,333 | $ 10,365 |
Core deposit intangible | ||||
Changes in intangible assets | ||||
Balance at the beginning of period | 10,264 | |||
Amortization of intangibles | (294) | |||
Balance at the end of the period | 9,970 | 9,970 | ||
Gross carrying amount | 10,264 | 10,264 | ||
Accumulated amortization | (294) | (294) | ||
Net book value | 9,970 | 9,970 | ||
Estimated amortization of intangible assets | ||||
2022 | 589 | 589 | ||
2023 | 1,162 | 1,162 | ||
2024 | 1,138 | 1,138 | ||
2025 | 1,109 | 1,109 | ||
2026 | 1,076 | 1,076 | ||
Thereafter | 4,896 | 4,896 | ||
Net book value | $ 9,970 | $ 9,970 |
Note 02 - ACQUISITION - FHLB Ad
Note 02 - ACQUISITION - FHLB Advances and Other Borrowings (Details) - USD ($) | Jun. 30, 2022 | Apr. 01, 2022 |
Business Acquisition [Line Items] | ||
FHLB advances | $ 16,000,000 | |
Subordinated debentures | $ 19,621,000 | |
Total Fair value of FHLB and other borrowings assumed | $ 45,931 | |
FHLB advance maturing on 15 May 2023 | Collateral Pledged. | ||
Business Acquisition [Line Items] | ||
FHLB advances | $ 6,500 | |
Rate (as a percent) | 0.59% | |
FHLB advance maturing on 15 May 2025 | Collateral Pledged. | ||
Business Acquisition [Line Items] | ||
FHLB advances | $ 6,500 | |
Rate (as a percent) | 0.82% | |
FHLB advance maturing on 17 May 2027 | Collateral Pledged. | ||
Business Acquisition [Line Items] | ||
FHLB advances | $ 3,000 | |
Rate (as a percent) | 1.12% | |
Subordinated debenture maturing on 30 September 2030 | Unsecured | ||
Business Acquisition [Line Items] | ||
Subordinated notes | $ 19,621 | |
Rate (as a percent) | 5.25% | |
Junior subordinated debentures maturing on 23 February 2036 | Unsecured | ||
Business Acquisition [Line Items] | ||
Subordinated debentures | $ 10,310 | |
Rate (as a percent) | 4.09% |
Note 02 - ACQUISITION - Unaudit
Note 02 - ACQUISITION - Unaudited Pro Forma Combined Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Unaudited pro forma combined operating results | ||||
Net interest income | $ 59,400 | $ 53,324 | $ 115,136 | $ 104,650 |
Noninterest income | 22,782 | 22,112 | 40,652 | 48,216 |
Net income | $ 15,242 | $ 25,609 | $ 41,365 | $ 46,549 |
Earnings per common share - Basic | $ 0.88 | $ 1.43 | $ 2.23 | $ 2.60 |
Earnings per common share - Diluted | $ 0.87 | $ 1.41 | $ 2.20 | $ 2.57 |
Note 3 - INVESTMENT SECURITIE_2
Note 3 - INVESTMENT SECURITIES (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) item issuer state | Dec. 31, 2021 USD ($) state item | |
Number of securities | 699 | |
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | 463 | |
Aggregate losses of securities (as a percent) | 6.74% | |
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 91 | |
Number Of Charters Owning Municipal Securities | 4 | |
Revenue Bonds | ||
Number of issuers | issuer | 1 | |
Percentage threshold | 5% | |
Municipal securities | General Obligation Bonds | ||
Number of issuers | 119 | 113 |
Other investments | $ | $ 114.5 | |
Number of states holding investments | state | 22 | 20 |
Municipal securities | General Obligation Bonds | Minimum | ||
Other investments | $ | $ 5 | $ 5 |
Municipal securities | General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | ||
Number of states holding investments | state | 8 | 7 |
Municipal securities | Revenue Bonds | ||
Number of issuers | 185 | 165 |
Other investments | $ | $ 583.5 | $ 575 |
Number of states holding investments | 29 | 28 |
Municipal securities | Revenue Bonds | Minimum | ||
Other investments | $ | $ 5 | $ 5 |
Municipal securities | Revenue Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | ||
Number of states holding investments | 12 | 13 |
Note 3 - INVESTMENT SECURITIE_3
Note 3 - INVESTMENT SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Securities held to maturity: | |||||
Securities held to maturity, at amortized cost | $ 508,703 | $ 472,583 | |||
Securities held to maturity, gross unrealized gains | 5,359 | 49,715 | |||
Securities held to maturity, gross unrealized (losses) | (16,108) | (1) | |||
Securities held to maturity, fair value | 497,954 | 522,297 | |||
Held To Maturity Securities Amortized Cost Before Other Than Temporary Impairment Net Of Allowance For Credit Losses | 508,505 | 472,385 | |||
Allowance for credit losses HTM securities | 198 | $ 198 | 198 | $ 174 | $ 174 |
Securities available for sale: | |||||
Debt Securities, Available-for-sale, Amortized Cost | 417,322 | 329,994 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 391 | 9,157 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (46,300) | (1,321) | |||
Debt Securities, Available-for-sale | 371,413 | 337,830 | |||
Municipal securities. | |||||
Securities held to maturity: | |||||
Securities held to maturity, at amortized cost | 507,653 | 471,533 | |||
Securities held to maturity, gross unrealized gains | 5,359 | 49,715 | |||
Securities held to maturity, gross unrealized (losses) | (16,108) | ||||
Securities held to maturity, fair value | 496,904 | 521,248 | |||
Allowance for credit losses HTM securities | 198 | $ 198 | 198 | 173 | 173 |
Securities available for sale: | |||||
Debt Securities, Available-for-sale, Amortized Cost | 241,074 | 163,253 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 122 | 5,228 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (38,211) | (215) | |||
Debt Securities, Available-for-sale | 202,985 | 168,266 | |||
U.S. treasuries and govt. sponsored agency securities | |||||
Securities available for sale: | |||||
Debt Securities, Available-for-sale, Amortized Cost | 22,424 | 23,370 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 22 | 254 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,998) | (296) | |||
Debt Securities, Available-for-sale | 20,448 | 23,328 | |||
Residential mortgage-backed and related securities | |||||
Securities available for sale: | |||||
Debt Securities, Available-for-sale, Amortized Cost | 86,000 | 92,431 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 42 | 2,672 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (4,795) | (780) | |||
Debt Securities, Available-for-sale | 81,247 | 94,323 | |||
Asset-backed securities | |||||
Securities available for sale: | |||||
Debt Securities, Available-for-sale, Amortized Cost | 20,056 | 26,372 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 112 | 752 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (212) | ||||
Debt Securities, Available-for-sale | 19,956 | 27,124 | |||
Other Securities | |||||
Securities held to maturity: | |||||
Securities held to maturity, at amortized cost | 1,050 | 1,050 | |||
Securities held to maturity, gross unrealized (losses) | (1) | ||||
Securities held to maturity, fair value | 1,050 | 1,049 | |||
Allowance for credit losses HTM securities | $ 1 | $ 1 | |||
Securities available for sale: | |||||
Debt Securities, Available-for-sale, Amortized Cost | 47,768 | 24,568 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 93 | 251 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,084) | (30) | |||
Debt Securities, Available-for-sale | $ 46,777 | $ 24,789 |
Note 3 - INVESTMENT SECURITIE_4
Note 3 - INVESTMENT SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | $ 305,221 | $ 32,980 |
Securities available for sale, less than 12 months, gross unrealized losses | (41,799) | (464) |
Securities available for sale, 12 months or more, fair value | 24,525 | 23,442 |
Securities available for sale, 12 months or more, gross unrealized losses | (4,501) | (857) |
Securities available for sale, fair value | 329,746 | 56,422 |
Securities available for sale, gross unrealized losses | (46,300) | (1,321) |
Municipal securities. | ||
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | 68,468 | 1,049 |
Securities held to maturity, less than 12 months, gross unrealized losses | (7,786) | (1) |
Securities held to maturity, 12 months or more, fair value | 95,070 | |
Securities held to maturity, 12 months or more, gross unrealized losses | (8,322) | |
Securities held to maturity, fair value | 163,538 | 1,049 |
Securities held to maturity, gross unrealized losses | (16,108) | (1) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 185,244 | 13,287 |
Securities available for sale, less than 12 months, gross unrealized losses | (37,071) | (211) |
Securities available for sale, 12 months or more, fair value | 3,828 | 1,001 |
Securities available for sale, 12 months or more, gross unrealized losses | (1,140) | (4) |
Securities available for sale, fair value | 189,072 | 14,288 |
Securities available for sale, gross unrealized losses | (38,211) | (215) |
U.S. treasuries and govt. sponsored agency securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 16,574 | 9,802 |
Securities available for sale, less than 12 months, gross unrealized losses | (1,359) | (156) |
Securities available for sale, 12 months or more, fair value | 2,482 | 3,035 |
Securities available for sale, 12 months or more, gross unrealized losses | (639) | (140) |
Securities available for sale, fair value | 19,056 | 12,837 |
Securities available for sale, gross unrealized losses | (1,998) | (296) |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 59,731 | 5,363 |
Securities available for sale, less than 12 months, gross unrealized losses | (2,073) | (67) |
Securities available for sale, 12 months or more, fair value | 18,215 | 19,406 |
Securities available for sale, 12 months or more, gross unrealized losses | (2,722) | (713) |
Securities available for sale, fair value | 77,946 | 24,769 |
Securities available for sale, gross unrealized losses | (4,795) | (780) |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 10,722 | |
Securities available for sale, less than 12 months, gross unrealized losses | (212) | |
Securities available for sale, fair value | 10,722 | |
Securities available for sale, gross unrealized losses | (212) | |
Other Securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 32,950 | 4,528 |
Securities available for sale, less than 12 months, gross unrealized losses | (1,084) | (30) |
Securities available for sale, fair value | 32,950 | 4,528 |
Securities available for sale, gross unrealized losses | $ (1,084) | $ (30) |
Note 3 - INVESTMENT SECURITIE_5
Note 3 - INVESTMENT SECURITIES - Activity in Allowance for Credit Losses (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021 USD ($) | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Provision for credit loss expense | $ (9) |
Balance, ending | 174 |
Accounting Standards Update 2016-13 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | 183 |
Municipal securities. | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Provision for credit loss expense | (9) |
Balance, ending | 173 |
Municipal securities. | Accounting Standards Update 2016-13 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | 182 |
Other Securities | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | 1 |
Other Securities | Accounting Standards Update 2016-13 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Balance, ending | $ 1 |
Note 3 - INVESTMENT SECURITIE_6
Note 3 - INVESTMENT SECURITIES - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment Securities | ||||
Proceeds from sales of securities | $ 111,375 | $ 4,334 | $ 111,375 | $ 23,874 |
Gross losses from sales of securities | $ (88) | $ (88) |
Note 3 - INVESTMENT SECURITIE_7
Note 3 - INVESTMENT SECURITIES - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities held to maturity: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 2,968 | |
Securities held to maturity, due in one year or less, fair value | 2,974 | |
Securities held to maturity, due after one year through five years, amortized cost | 16,632 | |
Securities held to maturity, due after one year through five years, fair value | 16,589 | |
Securities held to maturity, due after five years, amortized cost | 489,103 | |
Securities held to maturity, due after five years, fair value | 478,391 | |
Securities held to maturity, amortized cost | 508,703 | |
Securities held to maturity, fair value | 497,954 | $ 522,297 |
Securities available for sale: | ||
Securities available for sale, due in one year or less, amortized cost | 6,773 | |
Securities available for sale, Due in one year or less, fair value | 6,772 | |
Securities available for sale, due after one year through five years, amortized cost | 4,129 | |
Securities available for sale, Due after one year through five years, fair value | 4,162 | |
Securities available for sale, due after five years, amortized cost | 300,364 | |
Securities available for sale, due after five years, fair value | 259,276 | |
Securities available for sale, single maturity, amortized cost | 311,266 | |
Securities available for sale, single maturity, fair value | 270,210 | |
Securities available for sale, amortized cost | 417,322 | 329,994 |
Securities available for sale, fair value | 371,413 | 337,830 |
Securities available for sale, callable, amortized cost | 417,322 | |
Securities available for sale, callable, fair value | 371,413 | |
Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 282,975 | |
Securities available for sale, fair value | 243,920 | |
Municipal securities. | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 496,904 | 521,248 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 241,074 | 163,253 |
Securities available for sale, fair value | 202,985 | 168,266 |
Municipal securities. | Callable Securities [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 309,349 | |
Securities held to maturity, callable, fair value | 305,321 | |
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 236,628 | |
Securities available for sale, callable, fair value | 198,515 | |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 20,056 | 26,372 |
Securities available for sale, fair value | 19,956 | 27,124 |
Securities available for sale, callable, amortized cost | 20,056 | |
Securities available for sale, callable, fair value | 19,956 | |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 86,000 | 92,431 |
Securities available for sale, fair value | 81,247 | 94,323 |
Securities available for sale, callable, amortized cost | 86,000 | |
Securities available for sale, callable, fair value | 81,247 | |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 1,050 | 1,049 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 47,768 | 24,568 |
Securities available for sale, fair value | 46,777 | $ 24,789 |
Other Securities | Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 46,347 | |
Securities available for sale, callable, fair value | $ 45,405 |
Note 4 - LOANS LEASES RECEIVA_2
Note 4 - LOANS LEASES RECEIVABLE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) item loan | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Loans and leases | $ 5,797,903 | $ 5,797,903 | $ 4,680,132 | |||||
Discounts on acquired loans | 13,000 | 13,000 | ||||||
Accrued interest on loans | 19,400 | 19,400 | 15,000 | |||||
Loans receivable held for sale | 1,186 | 1,186 | 3,828 | |||||
Interest income recognized on loans | 48,200 | $ 43,516 | 96,849 | $ 78,778 | ||||
Accruing TDRs | 164 | 164 | 494 | |||||
Accruing Past Due 90 Days or More | $ 268 | 268 | ||||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | item | 0 | 0 | ||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 2,599 | $ 2,599 | ||||||
Less allowance for estimated losses on loans/leases | $ 92,425 | 78,894 | 92,425 | 78,894 | $ 74,786 | 78,721 | $ 81,831 | $ 84,376 |
Provision for Loan and Lease Losses | (141) | 8,292 | 5,852 | |||||
Allowance for Loan and Lease Losses, Write-offs | 620 | 3,674 | 1,076 | 4,387 | ||||
Recoveries on loans/leases previously charged off | 216 | $ 878 | 586 | $ 1,155 | ||||
Number of Loans / Leases | loan | 3 | 3 | ||||||
C&I - other | ||||||||
Loans and leases | 1,346,602 | |||||||
Less allowance for estimated losses on loans/leases | 28,093 | 28,093 | 25,982 | |||||
Provision for Loan and Lease Losses | 2,533 | |||||||
Allowance for Loan and Lease Losses, Write-offs | 875 | |||||||
Recoveries on loans/leases previously charged off | 446 | |||||||
Guaranty Bank | ||||||||
Provision for Loan and Lease Losses | 11,000 | 11,000 | ||||||
Residential real estate | ||||||||
Residential real estate loan held for sale | 1,200 | 1,200 | 3,800 | |||||
Less allowance for estimated losses on loans/leases | 3,732 | |||||||
Commercial Portfolio Segment [Member] | ||||||||
Loans and leases | 1,725,947 | 1,725,947 | 1,595,085 | |||||
Less allowance for estimated losses on loans/leases | 33,272 | 33,272 | 29,889 | 35,421 | ||||
Commercial Portfolio Segment [Member] | C&I - other | ||||||||
Loans and leases | 1,403,689 | 1,403,689 | 1,346,602 | |||||
Accruing Past Due 90 Days or More | 1 | 1 | ||||||
Less allowance for estimated losses on loans/leases | 28,093 | $ 32,325 | 28,093 | $ 32,325 | 25,437 | 25,982 | 33,167 | |
Provision for Loan and Lease Losses | (2) | 4,547 | ||||||
Allowance for Loan and Lease Losses, Write-offs | 426 | 998 | 1,666 | |||||
Recoveries on loans/leases previously charged off | 211 | 158 | 314 | |||||
Commercial Portfolio Segment [Member] | m2 Lease Funds, LLC | ||||||||
Loans and leases | 253,400 | 253,400 | 225,100 | |||||
Commercial Real Estate Portfolio Segment [Member] | ||||||||
Less allowance for estimated losses on loans/leases | 42,161 | |||||||
Direct financing leases | ||||||||
Loans and leases | 40,050 | 40,050 | 45,191 | |||||
Less allowance for estimated losses on loans/leases | 1,589 | 1,589 | 1,546 | 1,764 | ||||
Direct financing leases | PPP loans | ||||||||
Loans and leases | 79 | 79 | 28,200 | |||||
Direct financing leases | C&I - other | ||||||||
Less allowance for estimated losses on loans/leases | 1,500 | 1,500 | 1,800 | |||||
Provision for Loan and Lease Losses | 185 | 144 | 158 | 279 | ||||
Allowance for Loan and Lease Losses, Write-offs | 109 | (130) | 223 | 328 | ||||
Recoveries on loans/leases previously charged off | 48 | 58 | 108 | 134 | ||||
Threshold for Related Party Loans Evaluated | 1,600 | 2,000 | 1,600 | 2,000 | ||||
Consumer | ||||||||
Loans and leases | 99,556 | 99,556 | 75,311 | |||||
Less allowance for estimated losses on loans/leases | 1,355 | 919 | 1,355 | 919 | $ 815 | $ 930 | $ 1,045 | $ 1,298 |
Provision for Loan and Lease Losses | (329) | 407 | (546) | |||||
Allowance for Loan and Lease Losses, Write-offs | 1 | 4 | 8 | 5 | ||||
Recoveries on loans/leases previously charged off | $ 4 | $ 207 | $ 6 | $ 309 |
Note 4 - LOANS LEASES RECEIVA_3
Note 4 - LOANS LEASES RECEIVABLE - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and leases receivable | $ 5,797,903 | $ 4,680,132 | ||||
Gross loans/leases receivable | 5,797,903 | 4,680,132 | ||||
Less allowance | (92,425) | $ (74,786) | (78,721) | $ (78,894) | $ (81,831) | $ (84,376) |
Net loans/leases receivable | 5,705,478 | 4,601,411 | ||||
C&I - revolving | ||||||
Loans and leases receivable | 248,483 | |||||
Less allowance | (5,179) | (3,907) | ||||
C&I - other | ||||||
Loans and leases receivable | 1,346,602 | |||||
Less allowance | (28,093) | (25,982) | ||||
CRE - non owner occupied | ||||||
Loans and leases receivable | 646,500 | |||||
Less allowance | (12,049) | (8,549) | ||||
Owner Occupied Commercial Real Estate Loans [Member] | ||||||
Loans and leases receivable | 421,701 | |||||
Less allowance | (11,065) | (8,501) | ||||
Commercial Portfolio Segment [Member] | ||||||
Loans and leases receivable | 1,725,947 | 1,595,085 | ||||
Gross loans/leases receivable | 1,765,997 | 1,640,276 | ||||
Less allowance | (33,272) | (29,889) | (35,421) | |||
Commercial Portfolio Segment [Member] | C&I - revolving | ||||||
Loans and leases receivable | 322,258 | 248,483 | ||||
Gross loans/leases receivable | 322,258 | 248,483 | ||||
Less allowance | (5,179) | (3,619) | (3,907) | (3,177) | (3,547) | |
Commercial Portfolio Segment [Member] | C&I - other | ||||||
Loans and leases receivable | 1,403,689 | 1,346,602 | ||||
Gross loans/leases receivable | 1,443,739 | 1,391,793 | ||||
Less allowance | (28,093) | (25,437) | (25,982) | (32,325) | (33,167) | |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Less allowance | (42,161) | |||||
Commercial Real Estate Portfolio Segment [Member] | CRE - owner occupied | ||||||
Loans and leases receivable | 628,565 | 421,701 | ||||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||||||
Loans and leases receivable | 889,530 | 646,500 | ||||
Gross loans/leases receivable | 889,530 | 646,500 | ||||
Less allowance | (12,049) | (7,857) | (8,549) | (8,911) | (11,155) | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Loans and leases receivable | 1,080,372 | 918,571 | ||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||||
Loans and leases receivable | 628,565 | |||||
Gross loans/leases receivable | 628,565 | 421,701 | ||||
Less allowance | (11,065) | (7,897) | (8,501) | (8,020) | (9,147) | |
Construction and Land Development [Member] | ||||||
Gross loans/leases receivable | 1,080,372 | 918,571 | ||||
Less allowance | (16,388) | (16,972) | (13,640) | (12,327) | ||
Construction and Land Development [Member] | Construction Loans [Member] | ||||||
Loans and leases receivable | 1,080,372 | 918,571 | ||||
Less allowance | (16,388) | (14,671) | ||||
Multi-family | ||||||
Loans and leases receivable | 860,742 | 600,412 | ||||
Gross loans/leases receivable | 860,742 | 600,412 | ||||
Less allowance | (12,783) | (10,336) | (9,339) | (6,977) | (6,278) | |
Direct financing leases | ||||||
Net minimum lease payments to be received | 43,888 | 49,362 | ||||
Estimated unguaranteed residual values of leased assets | 165 | 165 | ||||
Unearned lease/residual income | (4,003) | (4,336) | ||||
Loans and leases receivable | 40,050 | 45,191 | ||||
Plus deferred loan/lease origination costs, net of fees. | 387 | 568 | ||||
Gross loans/leases receivable | 40,437 | 45,759 | ||||
Less allowance | (1,589) | (1,546) | (1,764) | |||
Net loans/leases receivable | 38,848 | 44,213 | ||||
Direct financing leases | C&I - other | ||||||
Less allowance | (1,500) | (1,500) | (1,800) | |||
1-4 family real estate | ||||||
Loans and leases receivable | 473,141 | 377,361 | ||||
Gross loans/leases receivable | 473,141 | 377,361 | ||||
Less allowance | (5,513) | (4,154) | (4,541) | (4,925) | (5,165) | |
Residential real estate | ||||||
Less allowance | (3,732) | |||||
Consumer | ||||||
Loans and leases receivable | 99,556 | 75,311 | ||||
Gross loans/leases receivable | 99,556 | 75,311 | ||||
Less allowance | $ (1,355) | $ (815) | $ (930) | $ (919) | $ (1,045) | $ (1,298) |
Note 4 - LOANS LEASES RECEIVA_4
Note 4 - LOANS LEASES RECEIVABLE - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accruing Past Due 90 Days or More | $ 268 | |
Loans and leases | $ 5,797,903 | $ 4,680,132 |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0% | |
Loans and leases as a percentage of total loan/lease portfolio | 100% | 100% |
C&I - revolving | ||
Loans and leases | $ 248,483 | |
C&I - other | ||
Loans and leases | 1,346,602 | |
Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 421,701 | |
CRE - non owner occupied | ||
Loans and leases | 646,500 | |
Current | ||
Loan | $ 5,769,214 | $ 4,666,986 |
Current as a percentage of total loan/lease portfolio | 99.51% | 99.57% |
Current | C&I - revolving | ||
Loan | $ 248,483 | |
Current | C&I - other | ||
Loan | 1,337,034 | |
Current | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loan | 421,701 | |
Current | CRE - non owner occupied | ||
Loan | 646,500 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | $ 3,495 | $ 2,202 |
Past due as a percentage of total loan/lease portfolio | 0.06% | 0.05% |
Financing Receivables, 30 to 59 Days Past Due [Member] | C&I - other | ||
Loan | $ 859 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | $ 1,352 | $ 8,184 |
Past due as a percentage of total loan/lease portfolio | 0.02% | 0.17% |
Financing Receivables, 60 to 89 Days Past Due [Member] | C&I - other | ||
Loan | $ 7,308 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Accruing Past Due 90 Days or More | $ 1 | |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0% | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | $ 1 | |
Past Due | ||
Nonaccrual Loans/Leases | $ 23,574 | $ 2,759 |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.41% | 0.06% |
Past Due | C&I - other | ||
Nonaccrual Loans/Leases | $ 1,400 | |
Commercial Portfolio Segment [Member] | ||
Loans and leases | $ 1,725,947 | 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loans and leases | 322,258 | 248,483 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | 1 | |
Loans and leases | 1,403,689 | 1,346,602 |
Commercial Portfolio Segment [Member] | Current | C&I - revolving | ||
Loan | 322,258 | |
Commercial Portfolio Segment [Member] | Current | C&I - other | ||
Loan | 1,397,799 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | C&I - other | ||
Loan | 3,136 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | C&I - other | ||
Loan | 1,038 | |
Commercial Portfolio Segment [Member] | Past Due | C&I - other | ||
Nonaccrual Loans/Leases | 1,715 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 628,565 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loans and leases | 889,530 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 1,080,372 | 918,571 |
Commercial Real Estate Portfolio Segment [Member] | Current | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loan | 626,209 | |
Commercial Real Estate Portfolio Segment [Member] | Current | CRE - non owner occupied | ||
Loan | 882,587 | |
Commercial Real Estate Portfolio Segment [Member] | Past Due | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 2,356 | |
Commercial Real Estate Portfolio Segment [Member] | Past Due | CRE - non owner occupied | ||
Nonaccrual Loans/Leases | 6,943 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loans and leases | 1,080,372 | 918,571 |
Construction and Land Development [Member] | Current | Construction Loans [Member] | ||
Loan | 1,071,748 | 918,498 |
Construction and Land Development [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loans [Member] | ||
Loan | 63 | |
Construction and Land Development [Member] | Past Due | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 8,561 | 73 |
Multi-family | ||
Loans and leases | 860,742 | 600,412 |
Multi-family | Current | ||
Loan | 860,742 | 600,412 |
Direct financing leases | ||
Loans and leases | 40,050 | 45,191 |
Direct financing leases | Current | ||
Loan | 38,940 | 44,174 |
Direct financing leases | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | 213 | 10 |
Direct financing leases | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | 43 | 160 |
Direct financing leases | Past Due | ||
Nonaccrual Loans/Leases | 854 | 847 |
1-4 family real estate | ||
Accruing Past Due 90 Days or More | 267 | |
Loans and leases | 473,141 | 377,361 |
1-4 family real estate | Current | ||
Loan | 469,737 | 374,912 |
1-4 family real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | 96 | 1,325 |
1-4 family real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | 165 | 716 |
1-4 family real estate | Past Due | ||
Nonaccrual Loans/Leases | 2,876 | 408 |
Consumer | ||
Loans and leases | 99,556 | 75,311 |
Consumer | Current | ||
Loan | 99,194 | 75,272 |
Consumer | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loan | 50 | 8 |
Consumer | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loan | 43 | |
Consumer | Past Due | ||
Nonaccrual Loans/Leases | $ 269 | $ 31 |
Note 4 - LOANS LEASES RECEIVA_5
Note 4 - LOANS LEASES RECEIVABLE - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accruing Past Due 90 Days or More | $ 268 | |
Accruing TDRs | 164 | $ 494 |
Loans and Leases Receivable, Net of Deferred Income | $ 5,797,903 | $ 4,680,132 |
Percentage of Total NPLs | 100% | 100% |
C&I - other | ||
Loans and Leases Receivable, Net of Deferred Income | $ 1,346,602 | |
C&I - revolving | ||
Loans and Leases Receivable, Net of Deferred Income | 248,483 | |
Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 421,701 | |
CRE - non owner occupied | ||
Loans and Leases Receivable, Net of Deferred Income | 646,500 | |
Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | $ 268 | 1 |
Nonaccrual Loans/Leases | 13,053 | 1,757 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 10,521 | |
Accruing TDRs | 1,002 | |
Loans and Leases Receivable, Net of Deferred Income | $ 23,842 | $ 2,760 |
Percentage of Total NPLs | 100% | 100% |
Nonperforming Financial Instruments [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | $ 1 | $ 1 |
Nonaccrual Loans/Leases | 1,547 | 1,130 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 168 | |
Accruing TDRs | 270 | |
Loans and Leases Receivable, Net of Deferred Income | $ 1,716 | $ 1,401 |
Percentage of Total NPLs | 7.20% | 50.77% |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 1,725,947 | $ 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Accruing Past Due 90 Days or More | 1 | |
Loans and Leases Receivable, Net of Deferred Income | 1,403,689 | 1,346,602 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loans and Leases Receivable, Net of Deferred Income | 322,258 | 248,483 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | C&I - other | ||
Loans and Leases Receivable, Net of Deferred Income | 1,126 | 1,340 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 628,565 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loans and Leases Receivable, Net of Deferred Income | 889,530 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,080,372 | 918,571 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 1,859 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 497 | |
Loans and Leases Receivable, Net of Deferred Income | $ 2,356 | |
Percentage of Total NPLs | 9.88% | |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | CRE - non owner occupied | ||
Nonaccrual Loans/Leases | $ 70 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 6,873 | |
Loans and Leases Receivable, Net of Deferred Income | $ 6,943 | |
Percentage of Total NPLs | 29.12% | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 1,080,372 | 918,571 |
Construction and Land Development [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 2,291 | |
Construction and Land Development [Member] | Nonperforming Financial Instruments [Member] | Construction Loans [Member] | ||
Nonaccrual Loans/Leases | 6,879 | 73 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 1,682 | |
Loans and Leases Receivable, Net of Deferred Income | $ 8,561 | $ 73 |
Percentage of Total NPLs | 35.91% | 2.64% |
Multi-family | ||
Loans and Leases Receivable, Net of Deferred Income | $ 860,742 | $ 600,412 |
Direct financing leases | ||
Loans and Leases Receivable, Net of Deferred Income | 40,050 | 45,191 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 854 | 115 |
Accruing TDRs | 732 | |
Loans and Leases Receivable, Net of Deferred Income | $ 854 | $ 847 |
Percentage of Total NPLs | 3.58% | 30.69% |
1-4 family real estate | ||
Accruing Past Due 90 Days or More | $ 267 | |
Loans and Leases Receivable, Net of Deferred Income | 473,141 | $ 377,361 |
1-4 family real estate | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 267 | |
Nonaccrual Loans/Leases | 1,575 | |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 1,301 | |
Loans and Leases Receivable, Net of Deferred Income | $ 3,143 | 408 |
Percentage of Total NPLs | 13.18% | |
Residential real estate | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 408 | |
Loans and Leases Receivable, Net of Deferred Income | $ 408 | |
Percentage of Total NPLs | 14.78% | |
Consumer | ||
Loans and Leases Receivable, Net of Deferred Income | $ 99,556 | $ 75,311 |
Consumer | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 269 | |
Loans and Leases Receivable, Net of Deferred Income | $ 269 | 31 |
Percentage of Total NPLs | 1.13% | |
Installment and other consumer loans | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 31 | |
Loans and Leases Receivable, Net of Deferred Income | $ 31 | |
Percentage of Total NPLs | 1.12% |
Note 4 - LOANS LEASES RECEIVA_6
Note 4 - LOANS LEASES RECEIVABLE - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance | $ 74,786 | $ 81,831 | $ 78,721 | $ 84,376 |
Provision for credit losses | (141) | 8,292 | 5,852 | |
Provision. | 12,141 | |||
Charged off | (620) | (3,674) | (1,076) | (4,387) |
Recoveries | 216 | 878 | 586 | 1,155 |
Balance | 92,425 | 78,894 | 92,425 | 78,894 |
Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 5,902 | 5,902 | ||
Accounting Standards Update 2016-13 | ||||
Balance | (8,102) | (8,102) | ||
C&I - revolving | ||||
Balance | 3,907 | |||
Provision for credit losses | 672 | |||
Balance | 5,179 | 5,179 | ||
C&I - revolving | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 600 | |||
C&I - other | ||||
Balance | 25,982 | |||
Provision for credit losses | 2,533 | |||
Charged off | (875) | |||
Recoveries | 446 | |||
Balance | 28,093 | 28,093 | ||
C&I - other | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 7 | |||
Owner Occupied Commercial Real Estate Loans [Member] | ||||
Balance | 8,501 | |||
Provision for credit losses | 77 | |||
Recoveries | 6 | |||
Balance | 11,065 | 11,065 | ||
Owner Occupied Commercial Real Estate Loans [Member] | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 2,481 | |||
CRE - non owner occupied | ||||
Balance | 8,549 | |||
Provision for credit losses | 2,489 | |||
Charged off | (193) | |||
Recoveries | 128 | |||
Balance | 12,049 | 12,049 | ||
CRE - non owner occupied | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 1,076 | |||
Commercial Portfolio Segment [Member] | ||||
Balance | 29,889 | 35,421 | ||
Balance | 33,272 | 33,272 | ||
Commercial Portfolio Segment [Member] | Accounting Standards Update 2016-13 | ||||
Balance | (35,421) | (35,421) | ||
Commercial Portfolio Segment [Member] | C&I - revolving | ||||
Balance | 3,619 | 3,547 | 3,907 | |
Provision for credit losses | (370) | 195 | ||
Provision. | 960 | |||
Balance | 5,179 | 3,177 | 5,179 | 3,177 |
Commercial Portfolio Segment [Member] | C&I - revolving | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 600 | |||
Commercial Portfolio Segment [Member] | C&I - revolving | Accounting Standards Update 2016-13 | ||||
Balance | 2,982 | 2,982 | ||
Commercial Portfolio Segment [Member] | C&I - other | ||||
Balance | 25,437 | 33,167 | 25,982 | |
Provision for credit losses | (2) | 4,547 | ||
Provision. | 2,864 | |||
Charged off | (426) | (998) | (1,666) | |
Recoveries | 211 | 158 | 314 | |
Balance | 28,093 | 32,325 | 28,093 | 32,325 |
Commercial Portfolio Segment [Member] | C&I - other | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 7 | |||
Commercial Portfolio Segment [Member] | C&I - other | Accounting Standards Update 2016-13 | ||||
Balance | 29,130 | 29,130 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Balance | 42,161 | |||
Commercial Real Estate Portfolio Segment [Member] | Accounting Standards Update 2016-13 | ||||
Balance | (42,161) | (42,161) | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||
Balance | 7,897 | 9,147 | 8,501 | |
Provision for credit losses | (1,121) | (670) | ||
Provision. | 686 | |||
Recoveries | 1 | |||
Recoveries. | (6) | (6) | ||
Balance | 11,065 | 8,020 | 11,065 | 8,020 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 2,481 | |||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Accounting Standards Update 2016-13 | ||||
Balance | 8,696 | 8,696 | ||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||||
Balance | 7,857 | 11,155 | 8,549 | |
Provision for credit losses | (376) | (662) | ||
Provision. | 3,309 | |||
Charged off | (193) | (1,876) | (1,876) | |
Recoveries | 8 | 21 | ||
Balance | 12,049 | 8,911 | 12,049 | 8,911 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 1,076 | |||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Accounting Standards Update 2016-13 | ||||
Balance | 11,428 | 11,428 | ||
Construction and Land Development [Member] | ||||
Balance | 12,327 | 16,972 | ||
Provision for credit losses | 1,313 | (1,684) | 1,641 | |
Balance | 16,388 | 13,640 | 16,388 | 13,640 |
Construction and Land Development [Member] | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 1,100 | |||
Construction and Land Development [Member] | Accounting Standards Update 2016-13 | ||||
Balance | 11,999 | 11,999 | ||
Construction and Land Development [Member] | Construction Loans [Member] | ||||
Balance | 14,671 | |||
Provision. | 617 | |||
Balance | 16,388 | 16,388 | ||
Construction and Land Development [Member] | Construction Loans [Member] | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 1,100 | |||
Multi-family | ||||
Balance | 10,336 | 6,278 | 9,339 | |
Provision for credit losses | 849 | 2,963 | 1,291 | |
Provision. | 1,966 | |||
Charged off | (150) | (150) | ||
Balance | 12,783 | 6,977 | 12,783 | 6,977 |
Multi-family | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 481 | 481 | ||
Multi-family | Accounting Standards Update 2016-13 | ||||
Balance | 5,836 | 5,836 | ||
Direct financing leases | ||||
Balance | 1,546 | 1,764 | ||
Balance | 1,589 | 1,589 | ||
Direct financing leases | Accounting Standards Update 2016-13 | ||||
Balance | (1,764) | (1,764) | ||
Direct financing leases | C&I - other | ||||
Balance | 1,500 | 1,500 | 1,800 | |
Provision for credit losses | 185 | 144 | 158 | 279 |
Charged off | (109) | 130 | (223) | (328) |
Recoveries | 48 | 58 | 108 | 134 |
Direct financing leases | C&I - other | Accounting Standards Update 2016-13 | ||||
Balance | 2,200 | 685 | ||
Residential real estate | ||||
Balance | 3,732 | |||
Residential real estate | Accounting Standards Update 2016-13 | ||||
Balance | (3,732) | (3,732) | ||
1-4 family real estate | ||||
Balance | 4,154 | 5,165 | 4,541 | |
Provision for credit losses | (105) | 835 | 56 | |
Provision. | 1,222 | |||
Charged off | (646) | (690) | ||
Recoveries | 511 | 517 | ||
Balance | 5,513 | 4,925 | 5,513 | 4,925 |
1-4 family real estate | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | 137 | 137 | ||
1-4 family real estate | Accounting Standards Update 2016-13 | ||||
Balance | 5,042 | 5,042 | ||
Consumer | ||||
Balance | 815 | 1,045 | 930 | 1,298 |
Provision for credit losses | (329) | 407 | (546) | |
Provision. | 517 | |||
Charged off | (1) | (4) | (8) | (5) |
Recoveries | 4 | 207 | 6 | 309 |
Balance | 1,355 | 919 | 1,355 | 919 |
Consumer | Purchased Credit Deteriorated Loan [Member] | ||||
Initial ACL recorded for PCD loans | $ 20 | $ 20 | ||
Consumer | Accounting Standards Update 2016-13 | ||||
Balance | $ (137) | $ (137) |
Note 4 - LOANS LEASES RECEIVA_7
Note 4 - LOANS LEASES RECEIVABLE - Composition Of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for Credit Losses, Individually Evaluated for Credit Losses | $ 9,754 | $ 2,554 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 82,671 | 76,167 | ||||
Allowance for Credit Losses, Total | 92,425 | $ 74,786 | 78,721 | $ 78,894 | $ 81,831 | $ 84,376 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 94,958 | 58,677 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 5,702,945 | 4,621,455 | ||||
Loans and leases receivable | 5,797,903 | 4,680,132 | ||||
Loans and Leases Receivable, Gross | 5,797,903 | 4,680,132 | ||||
C&I - revolving | ||||||
Allowance for Credit Losses, Total | 5,179 | 3,907 | ||||
Loans and leases receivable | 248,483 | |||||
C&I - other | ||||||
Allowance for Credit Losses, Total | 28,093 | 25,982 | ||||
Loans and leases receivable | 1,346,602 | |||||
Owner Occupied Commercial Real Estate Loans [Member] | ||||||
Allowance for Credit Losses, Total | 11,065 | 8,501 | ||||
Loans and leases receivable | 421,701 | |||||
CRE - non owner occupied | ||||||
Allowance for Credit Losses, Total | 12,049 | 8,549 | ||||
Loans and leases receivable | 646,500 | |||||
Commercial Portfolio Segment [Member] | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 3,343 | 911 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 29,929 | 28,978 | ||||
Allowance for Credit Losses, Total | 33,272 | 29,889 | 35,421 | |||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 16,027 | 16,094 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,749,970 | 1,624,182 | ||||
Loans and leases receivable | 1,725,947 | 1,595,085 | ||||
Loans and Leases Receivable, Gross | 1,765,997 | 1,640,276 | ||||
Commercial Portfolio Segment [Member] | C&I - revolving | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 933 | 168 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 4,246 | 3,739 | ||||
Allowance for Credit Losses, Total | 5,179 | 3,619 | 3,907 | 3,177 | 3,547 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 3,458 | 2,638 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 318,800 | 245,845 | ||||
Loans and leases receivable | 322,258 | 248,483 | ||||
Loans and Leases Receivable, Gross | 322,258 | 248,483 | ||||
Commercial Portfolio Segment [Member] | C&I - other | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 2,410 | 743 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 25,683 | 25,239 | ||||
Allowance for Credit Losses, Total | 28,093 | 25,437 | 25,982 | 32,325 | 33,167 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 12,569 | 13,456 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,431,170 | 1,378,337 | ||||
Loans and leases receivable | 1,403,689 | 1,346,602 | ||||
Loans and Leases Receivable, Gross | 1,443,739 | 1,391,793 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Allowance for Credit Losses, Total | 42,161 | |||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 3,046 | 1,264 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 8,019 | 7,237 | ||||
Allowance for Credit Losses, Total | 11,065 | 7,897 | 8,501 | 8,020 | 9,147 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 24,440 | 3,841 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 604,125 | 417,860 | ||||
Loans and leases receivable | 628,565 | |||||
Loans and Leases Receivable, Gross | 628,565 | 421,701 | ||||
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 826 | |||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 11,223 | 8,549 | ||||
Allowance for Credit Losses, Total | 12,049 | 7,857 | 8,549 | 8,911 | 11,155 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 28,618 | 25,006 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 860,912 | 621,494 | ||||
Loans and leases receivable | 889,530 | 646,500 | ||||
Loans and Leases Receivable, Gross | 889,530 | 646,500 | ||||
Construction and Land Development [Member] | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 1,669 | 11 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 14,719 | 16,961 | ||||
Allowance for Credit Losses, Total | 16,388 | 16,972 | 13,640 | 12,327 | ||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 18,986 | 10,436 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,061,386 | 908,135 | ||||
Loans and Leases Receivable, Gross | 1,080,372 | 918,571 | ||||
Multi-family | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 393 | |||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 12,390 | 9,339 | ||||
Allowance for Credit Losses, Total | 12,783 | 10,336 | 9,339 | 6,977 | 6,278 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 1,300 | |||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 859,442 | 600,412 | ||||
Loans and leases receivable | 860,742 | 600,412 | ||||
Loans and Leases Receivable, Gross | 860,742 | 600,412 | ||||
1-4 family real estate | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 418 | 329 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 5,095 | 4,212 | ||||
Allowance for Credit Losses, Total | 5,513 | 4,154 | 4,541 | 4,925 | 5,165 | |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 4,978 | 2,950 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 468,163 | 374,411 | ||||
Loans and leases receivable | 473,141 | 377,361 | ||||
Loans and Leases Receivable, Gross | 473,141 | 377,361 | ||||
Consumer | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 59 | 39 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,296 | 891 | ||||
Allowance for Credit Losses, Total | 1,355 | 815 | 930 | $ 919 | $ 1,045 | 1,298 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 609 | 350 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 98,947 | 74,961 | ||||
Loans and leases receivable | 99,556 | 75,311 | ||||
Loans and Leases Receivable, Gross | 99,556 | 75,311 | ||||
Direct financing leases | ||||||
Allowance for Credit Losses, Total | 1,589 | 1,546 | 1,764 | |||
Loans and leases receivable | 40,050 | 45,191 | ||||
Loans and Leases Receivable, Gross | 40,437 | 45,759 | ||||
Direct financing leases | C&I - other | ||||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 351 | 35 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,200 | 1,500 | ||||
Allowance for Credit Losses, Total | $ 1,500 | 1,500 | 1,800 | |||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 854 | 847 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | $ 39,300 | $ 44,400 | ||||
Residential real estate | ||||||
Allowance for Credit Losses, Total | $ 3,732 |
Note 4 - LOANS LEASES RECEIVA_8
Note 4 - LOANS LEASES RECEIVABLE - Amortized Cost Basis of Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | $ 92,425 | $ 78,721 |
Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 94,958 | 58,677 |
Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 5,416 | 3,201 |
Owner Occupied Commercial Real Estate Loans [Member] | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 24,802 | |
Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 50,921 | 36,185 |
Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 3,629 | 8,859 |
Securities | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 122 | 134 |
Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 7,742 | 9,998 |
Other | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,540 | 300 |
Commercial Portfolio Segment [Member] | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 16,027 | 16,094 |
Commercial Portfolio Segment [Member] | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 5,416 | 3,201 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 214 | |
Commercial Portfolio Segment [Member] | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,471 | |
Commercial Portfolio Segment [Member] | Securities | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 122 | 134 |
Commercial Portfolio Segment [Member] | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 7,742 | 9,997 |
Commercial Portfolio Segment [Member] | Other | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,533 | 291 |
Commercial Portfolio Segment [Member] | C&I - revolving | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 3,458 | 2,638 |
Commercial Portfolio Segment [Member] | C&I - revolving | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 3,353 | 2,518 |
Commercial Portfolio Segment [Member] | C&I - revolving | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 105 | 120 |
Commercial Portfolio Segment [Member] | C&I - other | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 12,569 | 13,456 |
Commercial Portfolio Segment [Member] | C&I - other | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,063 | 683 |
Commercial Portfolio Segment [Member] | C&I - other | Owner Occupied Commercial Real Estate Loans [Member] | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 214 | |
Commercial Portfolio Segment [Member] | C&I - other | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,471 | |
Commercial Portfolio Segment [Member] | C&I - other | Securities | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 122 | 134 |
Commercial Portfolio Segment [Member] | C&I - other | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 7,637 | 9,877 |
Commercial Portfolio Segment [Member] | C&I - other | Other | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,533 | 291 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 24,440 | 3,841 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 24,374 | |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 66 | 3,841 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 28,618 | 25,006 |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 28,618 | 25,006 |
Construction and Land Development [Member] | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 18,986 | 10,436 |
Construction and Land Development [Member] | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 18,986 | 10,362 |
Construction and Land Development [Member] | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 74 | |
Direct financing leases | C&I - other | Commercial Assets | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 854 | 847 |
Multi-family | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 1,300 | |
Multi-family | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 1,300 | |
1-4 family real estate | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 4,978 | 2,950 |
1-4 family real estate | Non Owner-Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,017 | 817 |
1-4 family real estate | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 2,961 | 2,133 |
Consumer | Collateral Dependent Loans | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 609 | 350 |
Consumer | Owner Occupied Real Estate | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 602 | 340 |
Consumer | Equipment | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | 1 | |
Consumer | Other | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | $ 7 | $ 9 |
Note 4 - LOANS LEASES RECEIVA_9
Note 4 - LOANS LEASES RECEIVABLE - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and leases | $ 5,797,903 | $ 4,680,132 |
C&I - revolving | ||
Loans and leases | 248,483 | |
C&I - other | ||
Loans and leases | 1,346,602 | |
Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 421,701 | |
CRE - non owner occupied | ||
Loans and leases | 646,500 | |
Internally Assigned Risk Rating [Member] | ||
2022 | 882,670 | 1,418,701 |
2021 | 1,384,584 | 1,151,208 |
2020 | 1,202,007 | 514,237 |
2019 | 475,173 | 354,369 |
2018 | 334,699 | 180,072 |
Prior | 264,749 | 148,546 |
Revolving Loans Amortized Cost Basis | 370,984 | 289,503 |
Loans and leases | 4,914,866 | 4,056,636 |
Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
2022 | 168 | |
2021 | 859 | |
2020 | 465 | |
2019 | 92 | |
2018 | 206 | |
Prior | 841 | |
Revolving Loans Amortized Cost Basis | 1,650 | |
Loans and leases | 4,281 | |
Pass [Member] | Construction Loans [Member] | ||
2022 | 168 | |
2021 | 859 | |
2020 | 465 | |
2019 | 92 | |
2018 | 206 | |
Prior | 716 | |
Revolving Loans Amortized Cost Basis | 1,650 | |
Loans and leases | 4,156 | |
Substandard [Member] | Construction Loans [Member] | ||
Prior | 125 | |
Loans and leases | 125 | |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,725,947 | 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - revolving | ||
Loans and leases | 322,258 | 248,483 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loans and leases | 1,403,689 | 1,346,602 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 322,258 | 248,483 |
Loans and leases | 322,258 | 248,483 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | C&I - other | ||
2022 | 253,687 | 395,618 |
2021 | 298,275 | 364,995 |
2020 | 276,036 | 141,165 |
2019 | 122,011 | 82,573 |
2018 | 78,976 | 83,810 |
Prior | 121,319 | 53,358 |
Loans and leases | 1,150,304 | 1,121,519 |
Commercial Portfolio Segment [Member] | Pass [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 316,980 | 245,212 |
Loans and leases | 316,980 | 245,212 |
Commercial Portfolio Segment [Member] | Pass [Member] | C&I - other | ||
2022 | 250,926 | 391,532 |
2021 | 298,050 | 362,256 |
2020 | 275,254 | 133,678 |
2019 | 116,262 | 82,177 |
2018 | 78,628 | 83,419 |
Prior | 120,831 | 53,310 |
Loans and leases | 1,139,951 | 1,106,372 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 1,820 | 633 |
Loans and leases | 1,820 | 633 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | C&I - other | ||
2022 | 365 | 3,580 |
2021 | 20 | 373 |
2020 | 19 | 349 |
2019 | 20 | |
2018 | 336 | |
Prior | 323 | 2 |
Loans and leases | 747 | 4,640 |
Commercial Portfolio Segment [Member] | Substandard [Member] | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 3,458 | 2,638 |
Loans and leases | 3,458 | 2,638 |
Commercial Portfolio Segment [Member] | Substandard [Member] | C&I - other | ||
2022 | 2,396 | 506 |
2021 | 205 | 2,366 |
2020 | 763 | 7,138 |
2019 | 5,729 | 396 |
2018 | 348 | 55 |
Prior | 165 | 46 |
Loans and leases | 9,606 | 10,507 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 628,565 | |
Commercial Real Estate Portfolio Segment [Member] | CRE - non owner occupied | ||
Loans and leases | 889,530 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 1,080,372 | 918,571 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 95,276 | 118,651 |
2021 | 185,526 | 143,045 |
2020 | 188,536 | 49,740 |
2019 | 49,273 | 31,995 |
2018 | 33,281 | 19,406 |
Prior | 60,405 | 47,387 |
Revolving Loans Amortized Cost Basis | 16,268 | 11,477 |
Loans and leases | 628,565 | 421,701 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | CRE - non owner occupied | ||
2022 | 180,779 | 185,213 |
2021 | 221,920 | 172,890 |
2020 | 228,848 | 106,062 |
2019 | 109,470 | 77,166 |
2018 | 76,525 | 62,189 |
Prior | 65,328 | 34,388 |
Revolving Loans Amortized Cost Basis | 6,660 | 8,592 |
Loans and leases | 889,530 | 646,500 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 91,565 | 118,014 |
2021 | 184,453 | 143,045 |
2020 | 168,819 | 47,660 |
2019 | 48,013 | 30,523 |
2018 | 31,918 | 17,038 |
Prior | 58,119 | 46,185 |
Revolving Loans Amortized Cost Basis | 16,268 | 11,477 |
Loans and leases | 599,155 | 413,942 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | CRE - non owner occupied | ||
2022 | 178,954 | 176,813 |
2021 | 216,956 | 145,712 |
2020 | 203,144 | 88,697 |
2019 | 92,322 | 63,849 |
2018 | 60,792 | 55,752 |
Prior | 58,123 | 28,808 |
Revolving Loans Amortized Cost Basis | 6,379 | 8,592 |
Loans and leases | 816,670 | 568,223 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 1,730 | 637 |
2020 | 2,915 | |
2019 | 233 | |
2018 | 145 | 1,846 |
Prior | 1,786 | 1,202 |
Loans and leases | 6,576 | 3,918 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | CRE - non owner occupied | ||
2022 | 1,825 | 7,295 |
2021 | 4,244 | 20,881 |
2020 | 13,809 | 1,802 |
2019 | 1,757 | 12,230 |
2018 | 15,733 | 5,494 |
Prior | 7,205 | 5,580 |
Loans and leases | 44,573 | 53,282 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
2022 | 1,981 | |
2021 | 1,073 | |
2020 | 16,802 | 2,080 |
2019 | 1,260 | 1,239 |
2018 | 1,218 | 522 |
Prior | 500 | |
Loans and leases | 22,834 | 3,841 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | CRE - non owner occupied | ||
2022 | 1,105 | |
2021 | 720 | 6,297 |
2020 | 11,895 | 15,563 |
2019 | 15,391 | 1,087 |
2018 | 943 | |
Revolving Loans Amortized Cost Basis | 281 | |
Loans and leases | 28,287 | 24,995 |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loans and leases | 1,080,372 | 918,571 |
Construction and Land Development [Member] | Internally Assigned Risk Rating [Member] | ||
2022 | 404,407 | |
2021 | 248,360 | |
2020 | 126,941 | |
2019 | 106,790 | |
2018 | 3,012 | |
Revolving Loans Amortized Cost Basis | 13,277 | |
Loans and leases | 902,787 | |
Construction and Land Development [Member] | Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
2022 | 189,964 | |
2021 | 370,500 | |
2020 | 254,180 | |
2019 | 77,982 | |
2018 | 34,553 | |
Prior | 25 | |
Revolving Loans Amortized Cost Basis | 19,253 | |
Loans and leases | 946,457 | |
Construction and Land Development [Member] | Pass [Member] | ||
2022 | 394,045 | |
2021 | 248,360 | |
2020 | 126,941 | |
2019 | 106,790 | |
2018 | 3,012 | |
Revolving Loans Amortized Cost Basis | 13,277 | |
Loans and leases | 892,425 | |
Construction and Land Development [Member] | Pass [Member] | Construction Loans [Member] | ||
2022 | 184,842 | |
2021 | 358,523 | |
2020 | 254,180 | |
2019 | 77,982 | |
2018 | 34,553 | |
Revolving Loans Amortized Cost Basis | 19,253 | |
Loans and leases | 929,333 | |
Construction and Land Development [Member] | Special Mention [Member] | Construction Loans [Member] | ||
2022 | 328 | |
2021 | 163 | |
Loans and leases | 491 | |
Construction and Land Development [Member] | Substandard [Member] | ||
2022 | 10,362 | |
Loans and leases | 10,362 | |
Construction and Land Development [Member] | Substandard [Member] | Construction Loans [Member] | ||
2022 | 4,794 | |
2021 | 11,814 | |
Prior | 25 | |
Loans and leases | 16,633 | |
Multi-family | ||
Loans and leases | 860,742 | 600,412 |
Multi-family | Internally Assigned Risk Rating [Member] | ||
2022 | 139,369 | 266,120 |
2021 | 266,147 | 197,224 |
2020 | 234,784 | 74,033 |
2019 | 102,945 | 47,486 |
2018 | 104,833 | 5,609 |
Prior | 10,066 | 7,376 |
Revolving Loans Amortized Cost Basis | 2,598 | 2,564 |
Loans and leases | 860,742 | 600,412 |
Multi-family | Pass [Member] | ||
2022 | 139,369 | 266,120 |
2021 | 266,098 | 197,224 |
2020 | 233,484 | 74,033 |
2019 | 102,945 | 47,486 |
2018 | 104,833 | 5,609 |
Prior | 10,066 | 7,376 |
Revolving Loans Amortized Cost Basis | 2,598 | 2,564 |
Loans and leases | 859,393 | 600,412 |
Multi-family | Special Mention [Member] | ||
2021 | 49 | |
Loans and leases | 49 | |
Multi-family | Substandard [Member] | ||
2020 | 1,300 | |
Loans and leases | 1,300 | |
1-4 family real estate | ||
Loans and leases | 473,141 | 377,361 |
1-4 family real estate | Internally Assigned Risk Rating [Member] | ||
2022 | 23,427 | 47,134 |
2021 | 41,357 | 24,207 |
2020 | 19,158 | 16,188 |
2019 | 13,400 | 8,006 |
2018 | 6,325 | 6,046 |
Prior | 6,765 | 5,213 |
Revolving Loans Amortized Cost Basis | 2,297 | 3,079 |
Loans and leases | 112,729 | 109,873 |
1-4 family real estate | Pass [Member] | ||
2022 | 23,427 | 47,097 |
2021 | 41,055 | 24,029 |
2020 | 18,981 | 16,188 |
2019 | 13,400 | 7,569 |
2018 | 5,895 | 5,845 |
Prior | 6,567 | 5,213 |
Revolving Loans Amortized Cost Basis | 2,297 | 3,079 |
Loans and leases | 111,622 | 109,020 |
1-4 family real estate | Special Mention [Member] | ||
2022 | 37 | |
2021 | 302 | |
Loans and leases | 302 | 37 |
1-4 family real estate | Substandard [Member] | ||
2021 | 178 | |
2020 | 177 | |
2019 | 437 | |
2018 | 430 | 201 |
Prior | 198 | |
Loans and leases | 805 | 816 |
Consumer | ||
Loans and leases | $ 99,556 | 75,311 |
Consumer | Internally Assigned Risk Rating [Member] | ||
2022 | 1,558 | |
2021 | 487 | |
2020 | 108 | |
2019 | 353 | |
Prior | 824 | |
Revolving Loans Amortized Cost Basis | 2,031 | |
Loans and leases | 5,361 | |
Consumer | Pass [Member] | ||
2022 | 1,558 | |
2021 | 487 | |
2020 | 108 | |
2019 | 216 | |
Prior | 824 | |
Revolving Loans Amortized Cost Basis | 2,031 | |
Loans and leases | 5,224 | |
Consumer | Substandard [Member] | ||
2019 | 137 | |
Loans and leases | $ 137 |
Note 4 - LOANS LEASES RECEIV_10
Note 4 - LOANS LEASES RECEIVABLE - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans and leases | $ 5,797,903 | $ 4,680,132 |
Delinquency Status [Member] | ||
2022 | 247,441 | 245,701 |
2021 | 275,762 | 152,113 |
2020 | 155,230 | 66,802 |
2019 | 45,772 | 36,973 |
2018 | 22,317 | 19,169 |
Prior | 60,844 | 46,979 |
Revolving Loans Amortized Cost Basis | 75,671 | 55,759 |
Loans and leases | 883,037 | 623,496 |
Nonperforming Financial Instruments [Member] | ||
Loans and leases | 23,842 | 2,760 |
C&I - other | ||
Loans and leases | 1,346,602 | |
C&I - other | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 1,716 | 1,401 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,725,947 | 1,595,085 |
Commercial Portfolio Segment [Member] | C&I - other | ||
Loans and leases | 1,403,689 | 1,346,602 |
Commercial Portfolio Segment [Member] | C&I - other | Delinquency Status [Member] | ||
2022 | 117,065 | 117,258 |
2021 | 86,412 | 54,438 |
2020 | 33,494 | 34,034 |
2019 | 12,485 | 14,642 |
2018 | 3,539 | 4,242 |
Prior | 390 | 469 |
Loans and leases | 253,385 | 225,083 |
Commercial Portfolio Segment [Member] | C&I - other | Performing Loans | ||
2022 | 117,018 | 117,163 |
2021 | 85,405 | 54,261 |
2020 | 33,432 | 33,390 |
2019 | 12,475 | 14,274 |
2018 | 3,539 | 4,200 |
Prior | 390 | 455 |
Loans and leases | 252,259 | 223,743 |
Commercial Portfolio Segment [Member] | C&I - other | Nonperforming Financial Instruments [Member] | ||
2022 | 47 | 95 |
2021 | 1,007 | 177 |
2020 | 62 | 644 |
2019 | 10 | 368 |
2018 | 42 | |
Prior | 14 | |
Loans and leases | 1,126 | 1,340 |
Direct financing leases | ||
Loans and leases | 40,050 | 45,191 |
Direct financing leases | Delinquency Status [Member] | ||
2022 | 15,481 | 6,690 |
2021 | 6,952 | 12,862 |
2020 | 7,603 | 11,638 |
2019 | 5,914 | 9,287 |
2018 | 3,234 | 3,713 |
Prior | 866 | 1,001 |
Loans and leases | 40,050 | 45,191 |
Direct financing leases | Performing Loans | ||
2022 | 15,481 | 6,690 |
2021 | 6,173 | 12,130 |
2020 | 7,528 | 11,638 |
2019 | 5,914 | 9,235 |
2018 | 3,234 | 3,695 |
Prior | 866 | 956 |
Loans and leases | 39,196 | 44,344 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
2021 | 779 | 732 |
2020 | 75 | |
2019 | 52 | |
2018 | 18 | |
Prior | 45 | |
Loans and leases | 854 | 847 |
Construction and Land Development [Member] | Nonperforming Financial Instruments [Member] | ||
2022 | 524 | |
2020 | 1,767 | |
Loans and leases | 2,291 | |
Construction and Land Development [Member] | Construction Loans [Member] | ||
Loans and leases | 1,080,372 | 918,571 |
Construction and Land Development [Member] | Construction Loans [Member] | Delinquency Status [Member] | ||
2022 | 62,487 | 12,857 |
2021 | 57,234 | 2,080 |
2020 | 8,001 | |
2019 | 4,747 | 494 |
2018 | 218 | 73 |
Prior | 471 | |
Revolving Loans Amortized Cost Basis | 757 | 280 |
Loans and leases | 133,915 | 15,784 |
Construction and Land Development [Member] | Construction Loans [Member] | Performing Loans | ||
2022 | 61,963 | 12,857 |
2021 | 57,234 | 2,080 |
2020 | 6,234 | |
2019 | 4,747 | 494 |
2018 | 218 | |
Prior | 471 | |
Revolving Loans Amortized Cost Basis | 757 | 280 |
Loans and leases | 131,624 | 15,711 |
Construction and Land Development [Member] | Construction Loans [Member] | Nonperforming Financial Instruments [Member] | ||
2018 | 73 | |
Loans and leases | 8,561 | 73 |
1-4 family real estate | ||
Loans and leases | 473,141 | 377,361 |
1-4 family real estate | Delinquency Status [Member] | ||
2022 | 104,005 | |
2021 | 78,713 | |
2020 | 19,001 | |
2019 | 10,890 | |
2018 | 10,533 | |
Prior | 44,278 | |
Revolving Loans Amortized Cost Basis | 68 | |
Loans and leases | 267,488 | |
1-4 family real estate | Performing Loans | ||
2022 | 104,005 | |
2021 | 78,713 | |
2020 | 19,001 | |
2019 | 10,784 | |
2018 | 10,533 | |
Prior | 43,976 | |
Revolving Loans Amortized Cost Basis | 68 | |
Loans and leases | 267,080 | |
1-4 family real estate | Nonperforming Financial Instruments [Member] | ||
2019 | 106 | |
Prior | 302 | |
Loans and leases | 3,143 | 408 |
1-4 family real estate | One To Four Family [Member] | Delinquency Status [Member] | ||
2022 | 46,135 | |
2021 | 119,889 | |
2020 | 101,786 | |
2019 | 20,620 | |
2018 | 13,705 | |
Prior | 57,327 | |
Revolving Loans Amortized Cost Basis | 950 | |
Loans and leases | 360,412 | |
1-4 family real estate | One To Four Family [Member] | Performing Loans | ||
2022 | 46,135 | |
2021 | 119,804 | |
2020 | 100,058 | |
2019 | 20,613 | |
2018 | 13,705 | |
Prior | 57,076 | |
Revolving Loans Amortized Cost Basis | 950 | |
Loans and leases | 358,341 | |
1-4 family real estate | One To Four Family [Member] | Nonperforming Financial Instruments [Member] | ||
2021 | 85 | |
2020 | 1,728 | |
2019 | 7 | |
Prior | 251 | |
Loans and leases | 2,071 | |
Residential real estate | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 408 | |
Consumer | ||
Loans and leases | 99,556 | 75,311 |
Consumer | Delinquency Status [Member] | ||
2022 | 6,273 | 4,891 |
2021 | 5,275 | 4,020 |
2020 | 4,346 | 2,129 |
2019 | 2,006 | 1,660 |
2018 | 1,621 | 608 |
Prior | 1,790 | 1,231 |
Revolving Loans Amortized Cost Basis | 73,964 | 55,411 |
Loans and leases | 95,275 | 69,950 |
Consumer | Performing Loans | ||
2022 | 6,124 | 4,891 |
2021 | 5,263 | 4,020 |
2020 | 4,333 | 2,114 |
2019 | 1,992 | 1,660 |
2018 | 1,588 | 593 |
Prior | 1,742 | 1,230 |
Revolving Loans Amortized Cost Basis | 73,964 | 55,411 |
Loans and leases | 95,006 | 69,919 |
Consumer | Nonperforming Financial Instruments [Member] | ||
2022 | 149 | |
2021 | 12 | |
2020 | 13 | 15 |
2019 | 14 | |
2018 | 33 | 15 |
Prior | 48 | 1 |
Loans and leases | $ 269 | 31 |
Installment and other consumer loans | Nonperforming Financial Instruments [Member] | ||
Loans and leases | $ 31 |
Note 4 - LOANS LEASES RECEIV_11
Note 4 - LOANS LEASES RECEIVABLE - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) item loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan item | Jun. 30, 2021 USD ($) loan | |
Number of loans restructured | item | 0 | 0 | ||
Number of Loans / Leases | loan | 3 | 3 | ||
Pre-Modification Recorded Investment | $ 2,599 | $ 2,599 | ||
Post-Modification Recorded Investment | 2,599 | 2,599 | ||
Specific Allowance | $ 189 | $ 189 | ||
Interest Rate Adjusted Below Market | ||||
Number of Loans / Leases | loan | 2 | 2 | ||
Pre-Modification Recorded Investment | $ 67 | $ 67 | ||
Post-Modification Recorded Investment | 67 | 67 | ||
Specific Allowance | $ 7 | $ 7 | ||
Direct financing leases | Payment Deferral [Member] | ||||
Number of Loans / Leases | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 51 | $ 51 | ||
Post-Modification Recorded Investment | $ 51 | $ 51 | ||
1-4 family real estate | Interest Rate Adjusted Below Market | ||||
Number of Loans / Leases | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 54 | $ 54 | ||
Post-Modification Recorded Investment | 54 | 54 | ||
Specific Allowance | $ 6 | $ 6 | ||
Consumer | Extended Maturity [Member] | ||||
Number of Loans / Leases | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 2,532 | $ 2,532 | ||
Post-Modification Recorded Investment | 2,532 | 2,532 | ||
Specific Allowance | $ 182 | $ 182 | ||
Consumer | Interest Rate Adjusted Below Market | ||||
Number of Loans / Leases | loan | 1 | 1 | ||
Pre-Modification Recorded Investment | $ 13 | $ 13 | ||
Post-Modification Recorded Investment | 13 | 13 | ||
Specific Allowance | $ 1 | $ 1 |
Note 4 - LOANS LEASES RECEIV_12
Note 4 - LOANS LEASES RECEIVABLE - Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance | $ 74,786 | $ 81,831 | $ 78,721 | $ 84,376 |
Provisions (credited) to expense | 11,200 | 8,284 | 6,713 | |
Balance | 92,425 | 78,894 | 92,425 | 78,894 |
Guaranty Bank | ||||
Provisions (credited) to expense | 1,400 | 1,400 | ||
Accounting Standards Update 2016-13 | ||||
Balance | (8,102) | (8,102) | ||
Unfunded Loan Commitment | ||||
Balance | 7,819 | 9,846 | 6,886 | |
Provisions (credited) to expense | (941) | 141 | (8) | 870 |
Balance | $ 6,878 | $ 9,987 | $ 6,878 | 9,987 |
Unfunded Loan Commitment | Accounting Standards Update 2016-13 | ||||
Balance | $ 9,117 |
Note 5 - DERIVATIVES AND HEDG_3
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Deposits | $ 5,820,657 | $ 4,922,772 |
Cash Flow Hedging | ||
Deposits | 300,000 | |
Interest rate cap | Cash Flow Hedging | ||
Initial premium paid upfront for the two caps | $ 3,500 |
Note 5 - DERIVATIVES AND HEDG_4
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Assets | $ 97,455 | $ 222,220 |
Derivative Liabilities | (113,305) | (225,135) |
Interest rate cap | ||
Derivative Assets | 1,576 | 238 |
Interest rate cap | Cash Flow Hedging | ||
Derivative Assets | 6,108 | 927 |
Interest rate swap | ||
Derivative Assets | 89,645 | 221,055 |
Derivative Liabilities | (89,645) | (221,055) |
Interest rate swap | Cash Flow Hedging | ||
Derivative Assets | 126 | |
Derivative Liabilities | $ (23,660) | $ (4,080) |
Note 5 - DERIVATIVES AND HEDG_5
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Interest Rate Cap Derivatives (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative Assets | $ 97,455 | $ 222,220 |
Interest rate swap | ||
Derivative Assets | 89,645 | 221,055 |
Interest rate cap | ||
Derivative Assets | 1,576 | 238 |
Cash Flow Hedging | Interest rate swap | ||
Derivative Assets | 126 | |
Cash Flow Hedging | Interest rate cap | ||
Derivative Assets | 6,108 | 927 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | $ 122 | 5 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 219 | 11 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Three Maturing 2023 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 109 | 5 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Three Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 529 | 60 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 1,081 | 125 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Three Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 540 | 62 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Three Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 861 | 161 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 1,765 | 332 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 882 | 166 |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Derivative Assets. | Cash Flow Hedging | Interest rate cap | ||
Notional Amount | $ 300,000 | |
Fair Value - Asset | 6,108 | 927 |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | ||
Notional Amount | 300,000 | |
Fair Value - Liability | (23,617) | (89) |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Interest rate swap | ||
Notional Amount | 49,310 | |
Fair Value - Liability | (3,991) | |
Fair value, net | 83 | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | QCR Holdings Statutory Trust II | ||
Notional Amount | 10,000 | |
Fair Value - Liability | $ (12) | (1,035) |
Receive Rate | 3.86% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | QCR Holdings Statutory Trust III | ||
Notional Amount | $ 8,000 | |
Fair Value - Liability | $ (9) | (828) |
Receive Rate | 3.86% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | QCR Holdings Statutory Trust V | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (3) | (996) |
Receive Rate | 1.79% | |
Pay Rate | 4.54% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Community National Statutory Trust II | ||
Notional Amount | $ 3,000 | |
Fair Value - Liability | $ (4) | (309) |
Receive Rate | 3.10% | |
Pay Rate | 5.17% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Community National Statutory Trust III | ||
Notional Amount | $ 3,500 | |
Fair Value - Liability | $ (7) | (360) |
Receive Rate | 2.58% | |
Pay Rate | 4.75% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Guaranty Bankshares Statutory Trust I | ||
Notional Amount | $ 4,500 | |
Fair Value - Liability | $ (8) | (463) |
Receive Rate | 2.58% | |
Pay Rate | 4.75% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Guaranty Statutory Trust II | ||
Notional Amount | $ 10,310 | |
Fair Value - Asset | $ 126 | |
Receive Rate | 2.95% | |
Pay Rate | 4.09% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, one | ||
Notional Amount | $ 35,000 | |
Fair Value - Liability | $ (4,038) | (17) |
Receive Rate | 1.40% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, two | ||
Notional Amount | $ 50,000 | |
Fair Value - Liability | $ (5,768) | (25) |
Receive Rate | 1.40% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, three | ||
Notional Amount | $ 40,000 | |
Fair Value - Liability | $ (4,627) | (34) |
Receive Rate | 1.40% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loans, four | ||
Notional Amount | $ 25,000 | |
Fair Value - Liability | $ (2,884) | (13) |
Receive Rate | 1.40% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan five | ||
Notional Amount | $ 15,000 | |
Fair Value - Liability | $ (630) | |
Receive Rate | 1.91% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan six | ||
Notional Amount | $ 50,000 | |
Fair Value - Liability | $ (2,100) | |
Receive Rate | 1.91% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan seven | ||
Notional Amount | $ 35,000 | |
Fair Value - Liability | $ (1,470) | |
Receive Rate | 1.91% | |
Pay Rate | 1.79% | |
Designated as Hedging Instrument | Derivative Liabilities | Cash Flow Hedging | Loan eight | ||
Notional Amount | $ 50,000 | |
Fair Value - Liability | $ (2,100) | |
Receive Rate | 1.91% | |
Pay Rate | 1.79% | |
Non Designated | Interest rate swap | ||
Derivative Assets | $ 89,645 | 221,055 |
Non Designated | Derivative Assets. | ||
Notional Amount | 75,000 | |
Derivative Assets | 1,576 | 238 |
Non Designated | Derivative Assets. | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Derivative Assets | $ 119 | 3 |
Non Designated | Derivative Assets. | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Non Designated | Derivative Assets. | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 555 | 62 |
Non Designated | Derivative Assets. | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Non Designated | Derivative Assets. | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 902 | $ 173 |
Non Designated | Derivative Assets. | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% |
Note 5 - DERIVATIVES AND HEDG_6
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Significantly Impact of operations (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Assets | $ 97,455 | $ 222,220 |
Derivative Liabilities. | 113,305 | 225,135 |
Interest rate swap | ||
Derivative Assets | 89,645 | 221,055 |
Derivative Liabilities. | 89,645 | 221,055 |
Non Designated | Interest rate swap | ||
Derivative Asset, Notional Amount | 2,213,781 | 2,024,599 |
Derivative Assets | 89,645 | 221,055 |
Derivative Liability, Notional Amount | 2,213,781 | 2,024,599 |
Derivative Liabilities. | $ 89,645 | $ 221,055 |
Note 5 - DERIVATIVES AND HEDG_7
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Cash flow hedging and fair value (Details) - Non Designated - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest And Dividend Income | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Income and expense line items presented in the consolidated statements of income | $ 68,205 | $ 48,903 | $ 119,267 | $ 96,468 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Income and expense line items presented in the consolidated statements of income | 8,805 | 5,387 | 14,134 | 10,977 |
Interest Rate Caps On Deposits | Interest Expense | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | 241 | 163 | 462 | 314 |
Interest Rate Swaps on Variable Rate Loans | Interest And Dividend Income | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | 671 | 1,142 | ||
Interest Rate Swap on Junior Subordinated Debentures | Interest Expense | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Gain Loss From Components Excluded From Assessment Of Cash Flow Hedge Effectiveness Net | $ 196 | $ 276 | $ 463 | $ 545 |
Note 5 - DERIVATIVES AND HEDG_8
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Swapped loan portfolio loan-to-value percentage, including the potential swap exposure | 65% | |
Interest rate swap | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 170,130 | $ 228,925 |
Interest rate swap | Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 1,720 | 21,100 |
Interest rate swap | U.S. govt. sponsored agency securities. | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 3,497 | 3,555 |
Interest rate swap | Municipal securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 109,018 | 139,166 |
Interest rate swap | Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 55,895 | $ 65,104 |
Note 6 - INCOME TAXES - Reconci
Note 6 - INCOME TAXES - Reconciliation of the Expected Federal Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INCOME TAXES | ||||
Computed "expected" tax expense | $ 3,514 | $ 5,699 | $ 8,965 | $ 10,219 |
Tax exempt income, net | (2,476) | (1,802) | (4,698) | (3,521) |
Bank-owned life insurance | (73) | (95) | (146) | (194) |
State income taxes, net of federal benefit, current year | 982 | 1,247 | 2,273 | 2,271 |
Provision adjustment from accounting method change | 1,181 | |||
Tax Credits | (289) | (57) | (531) | (114) |
Income from tax credit equity investments | (158) | 143 | ||
Acquisition costs | 242 | 372 | ||
Excess tax benefit on stock options exercised and restricted stock awards vested | (40) | (40) | (474) | (204) |
Other | (526) | (164) | (612) | (128) |
Federal and state income tax expense | $ 1,492 | $ 4,788 | $ 3,825 | $ 8,329 |
Computed "expected" tax expense (in percentage) | 21% | 21% | 21% | 21% |
Tax exempt income, net (in percentage) | (14.80%) | (6.60%) | (11.00%) | (7.20%) |
Bank-owned life insurance (in percentage) | (0.40%) | (0.40%) | (0.30%) | (0.40%) |
State income taxes, net of federal benefit, current year (in percentage) | 5.90% | 4.60% | 5.30% | 4.70% |
Provision adjustment from accounting method change (in percentage) | (2.80%) | |||
Tax credits (in percentage) | (1.70%) | (0.20%) | (1.20%) | (0.20%) |
Income from tax credit equity investments (in percentage) | (0.90%) | 0.30% | ||
Acquisition costs (in percentage) | 1.40% | 0.90% | ||
Excess tax benefit on stock options exercised and restricted stock awards vested (in percentage) | (0.20%) | (0.10%) | (1.10%) | (0.40%) |
Other (in percentage) | (3.20%) | (0.70%) | (1.50%) | (0.30%) |
Federal and state income tax expense (in percentage) | 8.90% | 17.60% | 9% | 17.20% |
Note 7 - Earnings per Share - B
Note 7 - Earnings per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings per Share | ||||||
Net income | $ 15,242 | $ 23,624 | $ 22,349 | $ 17,982 | $ 38,866 | $ 40,331 |
Basic EPS | $ 0.88 | $ 1.41 | $ 2.36 | $ 2.55 | ||
Diluted EPS | $ 0.87 | $ 1.39 | $ 2.33 | $ 2.52 | ||
Weighted average common shares outstanding | 17,345,324 | 15,813,932 | 16,485,218 | 15,808,788 | ||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 203,783 | 231,307 | 215,464 | 226,606 | ||
Weighted average common and common equivalent shares outstanding (in shares) | 17,549,107 | 16,045,239 | 16,700,682 | 16,035,394 |
Note 8 - FAIR VALUE (Details)
Note 8 - FAIR VALUE (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities available for sale, at fair value | $ 371,413 | $ 337,830 |
Derivatives | 97,455 | 222,220 |
Assets Fair Value | 49,555 | |
Derivatives | 113,305 | 225,135 |
Interest rate swap | ||
Derivatives | 89,645 | 221,055 |
Derivatives | 89,645 | 221,055 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 49,555 | |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 97,455 | 222,220 |
Assets Fair Value | 468,868 | 560,050 |
Liabilities Fair Value | 113,305 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 113,305 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 97,455 | 222,220 |
Assets Fair Value | 468,868 | 560,050 |
Liabilities Fair Value | 113,305 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | 113,305 | 225,135 |
U.S. treasuries and govt. sponsored agency securities | ||
Securities available for sale, at fair value | 20,448 | 23,328 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 20,448 | 23,328 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 20,448 | 23,328 |
Residential mortgage-backed and related securities | ||
Securities available for sale, at fair value | 81,247 | 94,323 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 81,247 | 94,323 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 81,247 | 94,323 |
Asset-backed securities | ||
Securities available for sale, at fair value | 19,956 | 27,124 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 19,956 | 27,124 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 19,956 | 27,124 |
Municipal securities. | ||
Securities available for sale, at fair value | 202,985 | 168,266 |
Municipal securities. | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 202,985 | 168,266 |
Municipal securities. | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 202,985 | 168,266 |
Other Securities | ||
Securities available for sale, at fair value | 46,777 | 24,789 |
Other Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 46,777 | 24,789 |
Other Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 46,777 | 24,789 |
Impaired Loans Leases [Member] | ||
Assets Fair Value | 49,334 | 6,618 |
Impaired Loans Leases [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 49,334 | $ 6,618 |
Other Real Estate Owned [Member] | ||
Assets Fair Value | 221 | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | $ 221 |
Note 8 - FAIR VALUE - Quantitat
Note 8 - FAIR VALUE - Quantitative Information About Level Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) |
Fair value | $ 49,555 | |
Impaired Loans Leases [Member] | ||
Fair value | $ 49,334 | $ 6,618 |
Valuation technique | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input | us-gaap:MeasurementInputAppraisedValueMember | |
Impaired Loans Leases [Member] | Minimum | ||
Impaired loans/leases, measurement input | item | (10) | |
Impaired Loans Leases [Member] | Maximum | ||
Impaired loans/leases, measurement input | item | (30) | |
Other Real Estate Owned [Member] | ||
Fair value | $ 221 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value | 49,555 | |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans Leases [Member] | ||
Fair value | 49,334 | $ 6,618 |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Fair value | $ 221 |
Note 8 - FAIR VALUE - Carrying
Note 8 - FAIR VALUE - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Interest-bearing deposits at financial institutions | $ 54,382 | $ 75,292 |
Securities held to maturity, fair value | 497,954 | 522,297 |
Securities available for sale, at fair value | 371,413 | 337,830 |
Derivatives | 97,455 | 222,220 |
Derivatives | 113,305 | 225,135 |
Interest rate cap | ||
Derivatives | 1,576 | 238 |
Interest rate swap | ||
Derivatives | 89,645 | 221,055 |
Derivatives | 89,645 | 221,055 |
Fair Value, Inputs, Level 1 [Member] | Carrying Value | ||
Cash and due from banks | 92,379 | 37,490 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value | ||
Cash and due from banks | 92,379 | 37,490 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||
Federal funds sold | 2,150 | 12,370 |
Securities held to maturity, fair value | 508,505 | 472,385 |
Securities available for sale, at fair value | 371,413 | 337,830 |
Loans/leases receivable, net | 5,659,798 | 4,595,283 |
Short-term borrowings | 1,070 | 3,800 |
FHLB advances | 400,000 | 15,000 |
Subordinated notes | 133,562 | 113,850 |
Junior subordinated debentures | 48,534 | 38,155 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Non-maturity Deposits [Member] | ||
Deposits | 5,259,509 | 4,501,424 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Time Deposits [Member] | ||
Deposits | 561,148 | 421,348 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest rate cap | ||
Derivatives | 97,455 | 222,220 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest rate swap | ||
Derivatives | 113,305 | 225,135 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | Interest-bearing Deposits [Member] | ||
Interest-bearing deposits at financial institutions | 54,382 | 75,292 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | ||
Federal funds sold | 2,150 | 12,370 |
Securities held to maturity, fair value | 497,954 | 522,297 |
Securities available for sale, at fair value | 371,413 | 337,830 |
Loans/leases receivable, net | 5,662,328 | 4,478,899 |
Short-term borrowings | 1,070 | 3,800 |
FHLB advances | 400,000 | 15,000 |
Subordinated notes | 136,175 | 116,203 |
Junior subordinated debentures | 41,970 | 31,072 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Non-maturity Deposits [Member] | ||
Deposits | 5,259,509 | 4,501,424 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Time Deposits [Member] | ||
Deposits | 546,315 | 419,453 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest rate cap | ||
Derivatives | 97,455 | 222,220 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest rate swap | ||
Derivatives | 113,305 | 225,135 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value | Interest-bearing Deposits [Member] | ||
Interest-bearing deposits at financial institutions | 54,382 | 75,292 |
Fair Value, Inputs, Level 3 [Member] | Carrying Value | ||
Loans/leases receivable, net | 45,680 | 6,128 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value | ||
Loans/leases receivable, net | 49,334 | 6,618 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 97,455 | 222,220 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 113,305 | 225,135 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 97,455 | 222,220 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | $ 113,305 | $ 225,135 |
Note 9 - BUSINESS SEGMENT INF_3
Note 9 - BUSINESS SEGMENT INFORMATION - (Details) | Jun. 30, 2022 subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
Note 9 - BUSINESS SEGMENT INF_4
Note 9 - BUSINESS SEGMENT INFORMATION - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Total revenue | $ 90,987 | $ 68,199 | $ 157,682 | $ 139,253 | |||
Net interest income | 59,400 | 43,516 | 105,133 | 85,491 | |||
Provision for credit losses | 11,200 | 8,284 | 6,713 | ||||
Net income (loss) from continuing operations | 15,242 | $ 23,624 | 22,349 | $ 17,982 | 38,866 | 40,331 | |
Goodwill | 137,607 | 74,066 | 137,607 | 74,066 | $ 74,066 | ||
Intangibles | 18,333 | 10,365 | 18,333 | 10,365 | 9,349 | ||
Total assets | 7,392,941 | 5,805,165 | 7,392,941 | 5,805,165 | $ 6,096,132 | ||
Intersegment Eliminations [Member] | |||||||
Total revenue | (27,005) | (102) | (56,073) | (224) | |||
Net interest income | 345 | 327 | 691 | 575 | |||
Net income (loss) from continuing operations | (26,452) | (26,589) | (54,984) | (49,446) | |||
Total assets | (923,834) | (179,303) | (923,834) | (179,303) | |||
Commercial Banking | QCBT | Operating Segments [Member] | |||||||
Total revenue | 23,722 | 21,676 | 46,202 | 42,960 | |||
Net interest income | 18,540 | 16,152 | 35,854 | 31,938 | |||
Provision for credit losses | 617 | 136 | (642) | 2,248 | |||
Net income (loss) from continuing operations | 8,425 | 8,679 | 18,395 | 15,843 | |||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | |||
Total assets | 2,122,852 | 2,059,634 | 2,122,852 | 2,059,634 | |||
Commercial Banking | CRBT | Operating Segments [Member] | |||||||
Total revenue | 31,715 | 26,498 | 56,926 | 56,855 | |||
Net interest income | 15,093 | 14,005 | 29,416 | 27,611 | |||
Provision for credit losses | (165) | (692) | (936) | 1,492 | |||
Net income (loss) from continuing operations | 13,256 | 11,145 | 24,385 | 22,541 | |||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | |||
Intangibles | 1,463 | 1,946 | 1,463 | 1,946 | |||
Total assets | 1,985,198 | 1,913,761 | 1,985,198 | 1,913,761 | |||
Commercial Banking | CSB | Operating Segments [Member] | |||||||
Total revenue | 12,091 | 10,809 | 23,407 | 21,232 | |||
Net interest income | 9,851 | 8,672 | 19,182 | 17,040 | |||
Provision for credit losses | 100 | 756 | (285) | 2,122 | |||
Net income (loss) from continuing operations | 3,374 | 3,109 | 7,500 | 5,171 | |||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | |||
Intangibles | 2,340 | 2,979 | 2,340 | 2,979 | |||
Total assets | 1,221,406 | 1,079,930 | 1,221,406 | 1,079,930 | |||
Commercial Banking | Guaranty Bank | Operating Segments [Member] | |||||||
Total revenue | 23,669 | 9,181 | 31,513 | 17,927 | |||
Net interest income | 18,065 | 6,479 | 24,593 | 12,548 | |||
Provision for credit losses | 10,648 | (200) | 10,147 | 851 | |||
Net income (loss) from continuing operations | 1,027 | 3,685 | 4,131 | 5,954 | |||
Goodwill | 109,516 | 45,975 | 109,516 | 45,975 | |||
Intangibles | 14,530 | 5,440 | 14,530 | 5,440 | |||
Total assets | 2,037,364 | 850,067 | 2,037,364 | 850,067 | |||
Other Segments | Operating Segments [Member] | |||||||
Total revenue | 26,795 | 137 | 55,707 | 503 | |||
Net interest income | (2,494) | (2,119) | (4,603) | (4,221) | |||
Net income (loss) from continuing operations | 15,612 | 22,320 | 39,439 | 40,268 | |||
Total assets | $ 949,955 | $ 81,076 | $ 949,955 | $ 81,076 |
Note 10 - REGULATORY CAPITAL _3
Note 10 - REGULATORY CAPITAL REQUIREMENTS - Capital Requirements (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total risk-based capital, actual, amount | $ 907,484 | $ 814,629 |
Total risk-based capital, actual, ratio | 0.1340 | 0.1477 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 543,913 | $ 441,100 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8% | 8% |
Total risk-based capital for capital adequacy purposes, amount | $ 713,885 | $ 578,944 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 679,891 | $ 551,375 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 689,200 | $ 631,649 |
Tier 1 risk-based capital, actual, ratio | 0.1018 | 0.1146 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 407,934 | $ 330,825 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6% | 6% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 577,907 | $ 468,669 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 543,913 | $ 441,100 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 689,200 | $ 631,649 |
Tier 1 leverage, actual, ratio | 0.0961 | 0.1046 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 286,877 | $ 241,579 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4% | 4% |
Tier 1 leverage for capital adequacy purposes, amount | $ 286,877 | $ 241,579 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 358,596 | $ 301,974 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 640,666 | $ 593,494 |
Common equity Tier 1, actual ratio | 0.0946 | 0.1076 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 305,951 | $ 248,119 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 475,923 | $ 385,962 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 441,929 | $ 358,394 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
QCBT | ||
Total risk-based capital, actual, amount | $ 257,008 | $ 247,658 |
Total risk-based capital, actual, ratio | 0.1373 | 0.1329 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 149,733 | $ 149,126 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8% | 8% |
Total risk-based capital for capital adequacy purposes, amount | $ 196,525 | $ 195,727 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 187,166 | $ 186,407 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 233,523 | $ 224,253 |
Tier 1 risk-based capital, actual, ratio | 0.1248 | 0.1203 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 112,300 | $ 111,844 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6% | 6% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 159,091 | $ 158,446 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 149,733 | $ 149,126 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 233,523 | $ 224,253 |
Tier 1 leverage, actual, ratio | 0.1074 | 0.1045 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 87,009 | $ 85,873 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4% | 4% |
Tier 1 leverage for capital adequacy purposes, amount | $ 87,009 | $ 85,873 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 108,761 | $ 107,341 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 233,523 | $ 224,253 |
Common equity Tier 1, actual ratio | 0.1248 | 0.1203 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 84,225 | $ 83,883 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 131,016 | $ 130,485 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 121,658 | $ 121,164 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CRBT | ||
Total risk-based capital, actual, amount | $ 276,943 | $ 277,673 |
Total risk-based capital, actual, ratio | 0.1439 | 0.1485 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 153,929 | $ 149,595 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8% | 8% |
Total risk-based capital for capital adequacy purposes, amount | $ 202,032 | $ 196,343 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 192,412 | $ 186,993 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 252,865 | $ 254,279 |
Tier 1 risk-based capital, actual, ratio | 0.1314 | 0.1360 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 115,447 | $ 112,196 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6% | 6% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 163,550 | $ 158,944 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 153,929 | $ 149,595 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 252,865 | $ 254,279 |
Tier 1 leverage, actual, ratio | 0.1299 | 0.1259 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 77,854 | $ 80,777 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4% | 4% |
Tier 1 leverage for capital adequacy purposes, amount | $ 77,854 | $ 80,777 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 97,318 | $ 100,971 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 252,865 | $ 254,279 |
Common equity Tier 1, actual ratio | 0.1314 | 0.1360 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 86,585 | $ 84,147 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 134,688 | $ 130,895 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 125,067 | $ 121,546 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CSB | ||
Total risk-based capital, actual, amount | $ 132,136 | $ 123,365 |
Total risk-based capital, actual, ratio | 0.1184 | 0.1195 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 89,251 | $ 82,601 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8% | 8% |
Total risk-based capital for capital adequacy purposes, amount | $ 117,142 | $ 108,413 |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 111,563 | $ 103,251 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual, amount | $ 118,157 | $ 110,410 |
Tier 1 risk-based capital, actual, ratio | 0.1059 | 0.1069 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 66,938 | $ 61,951 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6% | 6% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 94,829 | $ 87,763 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 89,251 | $ 82,601 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 118,157 | $ 110,410 |
Tier 1 leverage, actual, ratio | 0.0992 | 0.0967 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 47,630 | $ 45,676 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4% | 4% |
Tier 1 leverage for capital adequacy purposes, amount | $ 47,630 | $ 45,676 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 59,537 | $ 57,095 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 118,157 | $ 110,410 |
Common equity Tier 1, actual ratio | 0.1059 | 0.1069 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 50,204 | $ 46,463 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 78,094 | $ 72,276 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 72,516 | $ 67,113 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
SFCB | ||
Total risk-based capital, actual, amount | $ 101,067 | |
Total risk-based capital, actual, ratio | 0.1339 | |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 60,369 | |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8% | |
Total risk-based capital for capital adequacy purposes, amount | $ 79,235 | |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 75,462 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | |
Tier 1 risk-based capital, actual, amount | $ 91,625 | |
Tier 1 risk-based capital, actual, ratio | 0.1214 | |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 45,277 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6% | |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 64,142 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 60,369 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | |
Tier 1 leverage, actual, amount | $ 91,625 | |
Tier 1 leverage, actual, ratio | 0.1108 | |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 33,088 | |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4% | |
Tier 1 leverage for capital adequacy purposes, amount | $ 33,088 | |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 41,360 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | |
Common equity Tier 1, actual, amount | $ 91,625 | |
Common equity Tier 1, actual ratio | 0.1214 | |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 33,958 | |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | |
Common equity Tier 1 for capital adequacy purposes, amount | $ 52,823 | |
Common equity Tier 1 for capital adequacy purposes, ratio | 7% | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 49,050 | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | |
Guaranty Bank | ||
Total risk-based capital, actual, amount | $ 220,292 | |
Total risk-based capital, actual, ratio | 0.1208 | |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 148,137 | |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8% | |
Total risk-based capital for capital adequacy purposes, amount | $ 194,429 | |
Total risk-based capital for capital adequacy purposes, ratio | 0.1050 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 185,171 | |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | |
Tier 1 risk-based capital, actual, amount | $ 197,467 | |
Tier 1 risk-based capital, actual, ratio | 0.1083 | |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 111,103 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6% | |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 157,395 | |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0850 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 148,137 | |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | |
Tier 1 leverage, actual, amount | $ 197,467 | |
Tier 1 leverage, actual, ratio | 0.1062 | |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 74,370 | |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4% | |
Tier 1 leverage for capital adequacy purposes, amount | $ 74,370 | |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 92,963 | |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | |
Common equity Tier 1, actual, amount | $ 197,467 | |
Common equity Tier 1, actual ratio | 0.1083 | |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 83,327 | |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | |
Common equity Tier 1 for capital adequacy purposes, amount | $ 129,620 | |
Common equity Tier 1 for capital adequacy purposes, ratio | 7% | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 120,361 | |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% |