Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
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, $1.00 Par Value | |
Trading Symbol | QCRH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 16,732,384 | |
Entity Central Index Key | 0000906465 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 104,265 | $ 59,723 |
Federal funds sold | 20,300 | 56,910 |
Interest-bearing deposits at financial institutions | 60,350 | 67,360 |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 615,115 | 587,142 |
Securities available for sale, at fair value | 281,279 | 340,960 |
Total securities | 896,394 | 928,102 |
Loans receivable held for sale | 278,893 | 1,480 |
Loans/leases receivable held for investment | 6,327,414 | 6,137,391 |
Gross loans/leases receivable | 6,606,307 | 6,138,871 |
Less allowance for credit losses | (87,669) | (87,706) |
Net loans/leases receivable | 6,518,638 | 6,051,165 |
Bank-owned life insurance | 107,389 | 106,580 |
Premises and equipment, net | 118,943 | 117,948 |
Restricted investment securities | 43,748 | 42,501 |
Other real estate owned, net | 120 | 133 |
Goodwill | 139,027 | 137,607 |
Intangibles | 14,537 | 16,759 |
Derivatives | 291,295 | 177,631 |
Other assets | 225,051 | 186,418 |
Total assets | 8,540,057 | 7,948,837 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 1,027,791 | 1,262,981 |
Interest-bearing | 5,467,061 | 4,721,236 |
Total deposits | 6,494,852 | 5,984,217 |
Short-term borrowings | 470 | 129,630 |
Federal Home Loan Bank advances | 430,000 | 415,000 |
Subordinated notes | 232,958 | 232,662 |
Junior subordinated debentures | 48,698 | 48,602 |
Derivatives | 320,220 | 200,701 |
Other liabilities | 184,476 | 165,301 |
Total liabilities | 7,711,674 | 7,176,113 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 September 2023 and December 2022 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 September 2023 - 16,731,646 shares issued and outstanding December 2022 - 16,795,942 shares issued and outstanding | 16,732 | 16,796 |
Additional paid-in capital | 369,833 | 370,712 |
Retained earnings | 523,142 | 450,114 |
Accumulated other comprehensive loss: | ||
Securities available for sale | (55,061) | (44,677) |
Derivatives | (26,263) | (20,221) |
Total stockholders' equity | 828,383 | 772,724 |
Total liabilities and stockholders' equity | $ 8,540,057 | $ 7,948,837 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||
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) | 16,731,646 | 16,795,942 |
Common stock, outstanding (in shares) | 16,731,646 | 16,795,942 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income: | ||||
Taxable | $ 73,396 | $ 58,143 | $ 208,449 | $ 147,366 |
Nontaxable | 23,725 | 11,712 | 60,582 | 26,489 |
Securities: | ||||
Taxable | 3,788 | 3,304 | 10,847 | 8,792 |
Nontaxable | 5,510 | 4,955 | 15,715 | 13,750 |
Interest-bearing deposits at financial institutions | 1,206 | 380 | 3,151 | 584 |
Restricted investment securities | 659 | 673 | 1,677 | 1,439 |
Federal funds sold | 284 | 100 | 741 | 114 |
Total interest and dividend income | 108,568 | 79,267 | 301,162 | 198,534 |
Interest expense: | ||||
Deposits | 43,575 | 12,570 | 111,800 | 21,231 |
Short-term borrowings | 10 | 84 | 142 | 87 |
Federal Home Loan Bank advances | 5,724 | 2,584 | 11,898 | 3,447 |
Other borrowings | 53 | 53 | ||
Subordinated notes | 3,307 | 2,518 | 9,922 | 5,888 |
Junior subordinated debentures | 697 | 689 | 2,130 | 1,926 |
Total interest expense | 53,313 | 18,498 | 135,892 | 32,632 |
Net interest income | 55,255 | 60,769 | 165,270 | 165,902 |
Provision for credit losses | 3,806 | 11,340 | 8,284 | |
Net interest income after provision for credit losses | 51,449 | 60,769 | 153,930 | 157,618 |
Noninterest income: | ||||
Revenue | 135,161 | 100,362 | 386,117 | 258,044 |
Gains on sales of residential real estate loans, net | 476 | 641 | 1,288 | 1,943 |
Gains on sales of government guaranteed portions of loans, net | 50 | 30 | 69 | |
Capital markets revenue | 15,596 | 10,545 | 55,109 | 29,971 |
Securities losses, net | (451) | |||
Earnings on bank-owned life insurance | 1,807 | 605 | 3,352 | 1,301 |
Loan related fee income | 800 | 652 | 2,221 | 1,814 |
Fair value gain (loss) on derivatives | (336) | 904 | (680) | 2,242 |
Other | 299 | 384 | 656 | 572 |
Total noninterest income | 26,593 | 21,095 | 84,955 | 59,510 |
Noninterest expense: | ||||
Salaries and employee benefits | 32,098 | 29,175 | 95,560 | 82,774 |
Occupancy and equipment expense | 6,228 | 6,033 | 18,242 | 15,948 |
Professional and data processing fees | 4,456 | 4,477 | 12,048 | 12,513 |
Acquisition costs | 315 | 4,139 | ||
Post-acquisition compensation, transition and integration costs | 62 | 207 | 4,858 | |
FDIC insurance, other insurance and regulatory fees | 1,721 | 1,497 | 5,022 | 4,201 |
Loan/lease expense | 826 | 390 | 2,034 | 1,418 |
Net cost of (income from) and gains/losses on operations of other real estate | 3 | 19 | (64) | 77 |
Advertising and marketing | 1,429 | 1,437 | 4,401 | 3,396 |
Communication and data connectivity | 478 | 639 | 1,614 | 1,626 |
Supplies | 335 | 289 | 921 | 772 |
Bank service charges | 605 | 568 | 1,831 | 1,719 |
Correspondent banking expense | 232 | 218 | 663 | 630 |
Intangibles amortization | 691 | 787 | 2,222 | 2,067 |
Payment card processing | 733 | 477 | 1,820 | 1,365 |
Trust expense | 432 | 227 | 983 | 609 |
Other | 814 | 1,136 | 2,089 | 2,207 |
Total noninterest expense | 51,081 | 47,746 | 149,593 | 140,319 |
Net income before income taxes | 26,961 | 34,118 | 89,292 | 76,809 |
Federal and state income tax expense | 1,840 | 4,824 | 8,589 | 8,649 |
Net income | $ 25,121 | $ 29,294 | $ 80,703 | $ 68,160 |
Basic earnings per common share | $ 1.50 | $ 1.73 | $ 4.82 | $ 4.25 |
Diluted earnings per common share | $ 1.49 | $ 1.71 | $ 4.79 | $ 4.20 |
Weighted average common shares outstanding | 16,717,303 | 16,900,968 | 16,731,847 | 16,030,371 |
Weighted average common and common equivalent shares outstanding | 16,847,951 | 17,110,691 | 16,863,203 | 16,243,921 |
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Trust fees | ||||
Noninterest income: | ||||
Revenue | $ 2,863 | $ 2,537 | $ 8,613 | $ 7,997 |
Investment advisory and management fees | ||||
Noninterest income: | ||||
Revenue | 947 | 921 | 2,812 | 2,940 |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 2,107 | 2,214 | 6,169 | 5,992 |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 1,584 | 1,453 | 4,639 | 3,959 |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 450 | $ 189 | $ 1,197 | $ 710 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||||
Net Income (Loss) | $ 25,121 | $ 29,294 | $ 80,703 | $ 68,160 |
Other comprehensive loss: | ||||
Unrealized holding losses arising during the period before tax | (19,072) | (23,069) | (14,808) | (76,814) |
Less reclassification adjusted for impairment losses included in net income before tax | (989) | |||
Less reclassification adjustment for sales losses included in net income before tax | (451) | |||
Unrealized gains (losses) on securities available for sale | (19,072) | (23,069) | (13,368) | (76,814) |
Unrealized holding losses arising during the period before tax | (7,019) | (8,955) | (9,152) | (23,769) |
Less reclassification adjustment for caplet amortization before tax | (224) | (261) | (638) | (723) |
Unrealized losses on derivatives | (6,795) | (8,694) | (8,514) | (23,046) |
Other comprehensive loss, before tax | (25,867) | (31,763) | (21,882) | (99,860) |
Tax benefit | (6,452) | (6,980) | (5,456) | (23,451) |
Other comprehensive loss, net of tax | (19,415) | (24,783) | (16,426) | (76,409) |
Comprehensive income (loss) | $ 5,706 | $ 4,511 | $ 64,277 | $ (8,249) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital. | Retained Earnings. | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2021 | $ 15,613 | $ 273,768 | $ 386,077 | $ 1,552 | $ 677,010 |
Net Income (Loss) | 23,624 | 23,624 | |||
Other comprehensive income (loss), net of tax | (27,340) | (27,340) | |||
Common cash dividends declared | (939) | (939) | |||
Repurchase and cancellation of shares of common stock | (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 (Loss) | 68,160 | ||||
Other comprehensive income (loss), net of tax | (76,409) | ||||
Balance at Sep. 30, 2022 | 16,885 | 372,086 | 422,958 | (74,857) | 737,072 |
Balance at Mar. 31, 2022 | 15,580 | 272,370 | 405,762 | (25,788) | 667,924 |
Net Income (Loss) | 15,242 | 15,242 | |||
Other comprehensive income (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 | (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 |
Net Income (Loss) | 29,294 | 29,294 | |||
Other comprehensive income (loss), net of tax | (24,783) | (24,783) | |||
Common cash dividends declared | (1,012) | (1,012) | |||
Repurchase and cancellation of shares of common stock | (190) | (4,181) | (6,114) | (10,485) | |
Stock-based compensation expense | 382 | 382 | |||
Issuance of common stock under employee benefit plans | 11 | 527 | 538 | ||
Balance at Sep. 30, 2022 | 16,885 | 372,086 | 422,958 | (74,857) | 737,072 |
Balance at Dec. 31, 2022 | 16,796 | 370,712 | 450,114 | (64,898) | 772,724 |
Net Income (Loss) | 27,157 | 27,157 | |||
Other comprehensive income (loss), net of tax | 9,325 | 9,325 | |||
Common cash dividends declared | (1,010) | (1,010) | |||
Repurchase and cancellation of shares of common stock | (153) | (3,356) | (4,210) | (7,719) | |
Stock-based compensation expense | 953 | 953 | |||
Issuance of common stock under employee benefit plans | 71 | (7) | 64 | ||
Balance at Mar. 31, 2023 | 16,714 | 368,302 | 472,051 | (55,573) | 801,494 |
Balance at Dec. 31, 2022 | 16,796 | 370,712 | 450,114 | (64,898) | 772,724 |
Net Income (Loss) | 80,703 | ||||
Other comprehensive income (loss), net of tax | (16,426) | ||||
Balance at Sep. 30, 2023 | 16,732 | 369,833 | 523,142 | (81,324) | 828,383 |
Balance at Mar. 31, 2023 | 16,714 | 368,302 | 472,051 | (55,573) | 801,494 |
Net Income (Loss) | 28,425 | 28,425 | |||
Other comprehensive income (loss), net of tax | (6,336) | (6,336) | |||
Common cash dividends declared | (1,003) | (1,003) | |||
Repurchase and cancellation of shares of common stock | (23) | (495) | (449) | (967) | |
Stock-based compensation expense | 673 | 673 | |||
Issuance of common stock under employee benefit plans | 23 | 380 | 403 | ||
Balance at Jun. 30, 2023 | 16,714 | 368,860 | 499,024 | (61,909) | 822,689 |
Net Income (Loss) | 25,121 | 25,121 | |||
Other comprehensive income (loss), net of tax | (19,415) | (19,415) | |||
Common cash dividends declared | (1,003) | (1,003) | |||
Stock-based compensation expense | 527 | 527 | |||
Issuance of common stock under employee benefit plans | 18 | 446 | 464 | ||
Balance at Sep. 30, 2023 | $ 16,732 | $ 369,833 | $ 523,142 | $ (81,324) | $ 828,383 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) | |||||
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 22,500 | 152,500 | 190,000 | 602,500 | 77,500 |
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 (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 80,703 | $ 68,160 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 6,132 | 5,699 | |
Provision for credit losses | 11,340 | 8,284 | |
Stock-based compensation expense | 2,153 | 1,678 | |
Deferred compensation expense accrued | 4,188 | 3,027 | |
Gains on other real estate owned, net | (84) | (19) | |
Amortization of premiums on securities, net | 964 | 939 | |
Caplet amortization | 638 | 723 | |
Fair value (gain) loss on derivatives | $ (904) | 680 | (2,242) |
Securities losses, net | 451 | ||
Loans originated for sale | (55,271) | (82,009) | |
Proceeds on sales of loans | 57,171 | 88,010 | |
Gains on sales of residential real estate loans | (641) | (1,288) | (1,943) |
Gains on sales of government guaranteed portions of loans | (50) | (30) | (69) |
Losses on sales and disposals of premises and equipment | 386 | 520 | |
Amortization of intangibles | 787 | 2,222 | 2,067 |
Accretion of acquisition fair value adjustments, net | (1,501) | (2,893) | |
Increase in cash value of bank-owned life insurance | (2,221) | (1,301) | |
Gain on bank-owned life insurance death benefits | (1,131) | ||
Increase in other assets | (34,126) | (33,840) | |
Decrease in other liabilities | 13,973 | 21,843 | |
Net cash provided by operating activities | 85,349 | 76,634 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net (increase) decrease in federal funds sold | 36,610 | (15,840) | |
Net decrease in interest-bearing deposits at financial institutions | 7,010 | 49,593 | |
Proceeds from sales of other real estate owned | 295 | 223 | |
Activity in securities portfolio: | |||
Purchases | (102,669) | (173,331) | |
Calls, maturities and redemptions | 76,011 | 30,597 | |
Paydowns | 11,660 | 27,311 | |
Sales | 30,556 | 111,375 | |
Activity in restricted investment securities: | |||
Purchases | (4,908) | (19,885) | |
Redemptions | 3,661 | 2,159 | |
Net increase in loans/leases originated and held for investment | (479,757) | (524,877) | |
Purchase of premises and equipment | (8,023) | (27,119) | |
Proceeds from sales of premises and equipment | 510 | 413 | |
Purchase of bank-owned life insurance | (10,000) | ||
Proceeds from bank-owned life insurance death benefits | 2,543 | ||
Net cash acquired from acquisition | 144,973 | ||
Net cash used in investing activities | (426,501) | (404,408) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposit accounts | 510,635 | (58,310) | |
Net increase (decrease) in short-term borrowings | (129,160) | 81,380 | |
Activity in Federal Home Loan Bank advances: | |||
Term advances | 135,000 | ||
Net change in short-term and overnight advances | (120,000) | 320,000 | |
Prepayments | (16,000) | ||
Activity in other borrowings: | |||
Proceeds from other borrowings | 10,000 | ||
Calls, maturities and scheduled principal payments | (10,000) | ||
Proceeds from subordinated notes | 100,000 | ||
Payment of cash dividends on common stock | (3,026) | (2,933) | |
Proceeds from issuance of common stock, net | 931 | 345 | |
Repurchase and cancellation of shares | (8,686) | (47,916) | |
Net cash provided by financing activities | 385,694 | 376,566 | |
Net increase in cash and due from banks | 44,542 | 48,792 | |
Cash and due from banks, beginning | 59,723 | 37,490 | |
Cash and due from banks, ending | 86,282 | 104,265 | 86,282 |
Supplemental disclosure of cash flow information, cash payments (receipts) for: | |||
Interest | (258,779) | 32,046 | |
Income/franchise taxes | 2,214 | 107 | |
Supplemental schedule of noncash investing activities: | |||
Change in accumulated other comprehensive income (loss), unrealized gains (losses) on securities available for sale and derivative instruments, net | (16,426) | (76,409) | |
Increase in fair value of fair value hedges | 3,997 | ||
Transfers of loans to other real estate owned | 218 | 326 | |
Increase (decrease) in the fair value of back-to-back interest rate swap assets and liabilities | 110,641 | (48,195) | |
Dividends payable | 1,003 | 1,012 | |
Transfer of loans to loans held for sale | 277,995 | ||
Measurement period adjustment to goodwill | $ 1,420 | ||
Fair value of assets acquired: | |||
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 receivable, net | 801,697 | 801,697 | |
Bank-owned life insurance | 32,100 | 32,100 | |
Premises and equipment, net | 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 | |
Fair value of liabilities assumed: | |||
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 | |
Consideration paid: | |||
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 | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 are not necessarily indicative of the results expected for the year ending December 31, 2023, 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. ACL: Allowance for credit losses GFED: Guaranty Federal Bancshares, Inc. Allowance: Allowance for credit losses HTM: Held to maturity AOCI: Accumulated other comprehensive income (loss) LIBOR: London Inter-Bank Offered Rate ASC: Accounting Standards Codification LIHTC: Low-income housing tax credit ASU: Accounting Standards Update m2: m2 Equipment Finance, LLC BOLI: Bank-owned life insurance NIM: Net interest margin Caps: Interest rate cap derivatives NPA: Nonperforming asset CECL: Current Expected Credit Losses NPL: Nonperforming loan Community National: Community National Bancorporation OBS: Off-balance sheet Company: QCR Holdings, Inc. OREO: Other real estate owned COVID-19: Coronavirus Disease 2019 OTTI: Other-than-temporary impairment CRBT: Cedar Rapids Bank & Trust Company PCAOB: Public Company Accounting Oversight Board CRE: Commercial real estate PCD: Purchase credit deteriorated loan CSB: Community State Bank PCI: Purchased credit impaired C&I: Commercial and industrial PPP: Paycheck Protection Program EBA: Excess balance account Provision: Provision for credit losses EPS: Earnings per share QCBT: Quad City Bank & Trust Company Exchange Act: Securities Exchange Act of 1934, as ROAA: Return on average assets amended ROAE: Return on average equity 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 SOFR: Secured Overnight Financing Rate FHLB: Federal Home Loan Bank TA: Tangible Assets FRB: Federal Reserve Bank of Chicago TBV: Tangible book value Guaranty: Guaranty Bank, formerly known as Springfield First TCE: Tangible common equity Community Bank TDRs: Troubled debt restructurings TEY: Tax equivalent yield 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 four banks are state-chartered commercial banks and all are members of the Federal Reserve system. The Company also engages in direct financing lease contracts through m2, a wholly owned subsidiary of QCBT. The company also engages in wealth management services through its banking subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The acquisition of GFED, the holding company of GB, headquartered in Springfield, Missouri, occurred on April 1, 2022 and on April 2, 2022, GB was merged into SFCB, the Company’s Springfield-based charter. The combined bank changed its name to Guaranty Bank. The financial results for the periods since the acquisition and merger are included in this report. See Note 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information about the acquisition and merger. Recent 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 In March 2023, the FASB issued ASU 2023-02, “ Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a Consensus of the Emerging Issues Task Force) Reclassifications |
Note 2 - INVESTMENT SECURITIES
Note 2 - INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
INVESTMENT SECURITIES | NOTE 2– INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of September 30, 2023 and December 31, 2022 are summarized as follows: Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) September 30, 2023: Securities HTM: Municipal securities $ 614,245 $ (180) $ 2,448 $ (92,718) $ 523,795 Other securities 1,050 — — (26) 1,024 $ 615,295 $ (180) $ 2,448 $ (92,744) $ 524,819 Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 19,130 $ — $ 13 $ (3,141) $ 16,002 Residential mortgage-backed and related securities 66,433 — — (8,487) 57,946 Municipal securities 207,318 — — (57,546) 149,772 Asset-backed securities 16,226 — 144 (44) 16,326 Other securities 46,531 (989) 2 (4,311) 41,233 $ 355,638 $ (989) $ 159 $ (73,529) $ 281,279 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) December 31, 2022: Securities HTM: Municipal securities $ 586,272 $ (180) $ 5,292 $ (56,798) $ 534,586 Other securities 1,050 — — — 1,050 $ 587,322 $ (180) $ 5,292 $ (56,798) $ 535,636 Securities AFS: U.S. govt. sponsored agency securities $ 19,745 $ — $ 19 $ (2,783) $ 16,981 Residential mortgage-backed and related securities 73,438 — — (7,223) 66,215 Municipal securities 239,812 — 66 (46,700) 193,178 Asset-backed securities 18,885 — 48 (205) 18,728 Other securities 48,631 — 27 (2,800) 45,858 $ 400,511 $ — $ 160 $ (59,711) $ 340,960 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 September 30, 2023 and December 31, 2022, are summarized in the tables below. Securities available-for-sale, for which an allowance for credit losses has been provided, are not included in these disclosures. 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) September 30, 2023: Securities HTM: Municipal securities $ 235,313 $ (20,751) $ 237,690 $ (71,967) $ 473,003 $ (92,718) Other securities 523 (26) — — 523 (26) $ 235,836 $ (20,777) $ 237,690 $ (71,967) $ 473,526 $ (92,744) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 1,649 $ (1) $ 13,377 $ (3,140) $ 15,026 $ (3,141) Residential mortgage-backed and related securities 77 (1) 57,869 (8,486) 57,946 (8,487) Municipal securities 1,067 (38) 148,159 (57,508) 149,226 (57,546) Asset-backed securities — — 10,521 (44) 10,521 (44) Other securities 3,823 (427) 34,190 (3,884) 38,013 (4,311) $ 6,616 $ (467) $ 264,116 $ (73,062) $ 270,732 $ (73,529) 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, 2022: Securities HTM: Municipal securities $ 347,651 $ (56,798) $ — $ — $ 347,651 $ (56,798) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 5,138 $ (326) $ 10,591 $ (2,457) $ 15,729 $ (2,783) Residential mortgage-backed and related securities 48,469 (3,327) 17,690 (3,896) 66,159 (7,223) Municipal securities 178,172 (42,661) 9,809 (4,039) 187,981 (46,700) Asset-backed securities 13,684 (205) — — 13,684 (205) Other securities 35,206 (2,404) 4,122 (396) 39,328 (2,800) $ 280,669 $ (48,923) $ 42,212 $ (10,788) $ 322,881 $ (59,711) At September 30, 2023, the investment portfolio included 644 securities. Of this number, 621 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 17.1% of the total amortized cost of the portfolio. Of these 621 securities, there were 480 For the quarter ended March 31, 2023, the Company’s impairment evaluation determined that one publicly traded debt security experienced a decline in fair value due to credit quality, rather than market factors. As a result, the Company recognized a credit loss expense of $989 thousand in the first quarter and established an ACL on the related AFS security. For the quarters ended June 30, 2023 and September 30, 2023, there has been no change to the ACL on the related AFS security. The following table presents the activity in the allowance for credit losses for held to maturity and available for sale securities by major security type for the three and nine months ended September 30, 2023 and 2022. Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Securities HTM Securities AFS Securities HTM Securities HTM Securities AFS Securities HTM Municipal Corporate Municipal Municipal Corporate Municipal securities securities securities securities securities securities (dollars in thousands) Allowance for credit losses: Beginning balance $ 180 $ 989 $ 198 $ 180 $ — $ 198 Provision for credit loss expense — — — — 989 — Balance, ending $ 180 $ 989 $ 198 $ 180 $ 989 $ 198 There were no sales of securities for the three months ended September 30, 2023 and 2022. All sales of securities for the nine months ended September 30, 2023 and 2022 were securities identified as AFS. Nine Months Ended September 30, 2023 September 30, 2022 Proceeds from sales of securities $ 30,568 $ 111,375 Gross gains from sales of securities 56 — Gross losses from sales of securities (507) — The amortized cost and fair value of securities as of September 30, 2023 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 $ 1,907 $ 1,882 Due after one year through five years 27,159 27,700 Due after five years 586,229 495,237 $ 615,295 $ 524,819 Securities AFS: Due in one year or less $ 3,160 $ 3,146 Due after one year through five years 14,338 12,239 Due after five years 255,481 191,622 272,979 207,007 Residential mortgage-backed and related securities 66,433 57,946 Asset-backed securities 16,226 16,326 $ 355,638 $ 281,279 Portions of the U.S. government sponsored agency securities and municipal securities as of September 30, 2023, 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 $ 230,493 $ 194,222 Securities AFS: Municipal securities 205,747 148,235 Other securities 45,577 40,277 $ 251,324 $ 188,512 As of September 30, 2023, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 81 issuers with fair values totaling $80.4 million and revenue bonds, issued by 166 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $593.2 million. The Company also held investments in general obligation bonds in 18 states, including seven states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 30 states, including 14 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2022, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 118 issuers with fair values totaling $110.6 million and revenue bonds, issued by 181 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $617.2 million. The Company also held investments in general obligation bonds in 22 states, including seven Both general obligation and revenue bonds are diversified across many issuers. As of September 30, 2023 and as of December 31, 2022, the Company held revenue bonds of two issuers, both located in Ohio, of which the aggregate book or market value exceeded 5% of the Company’s stockholders’ equity. The issuers’ financial conditions are strong and the sources of repayment are 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 the Company’s 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 September 30, 2023, 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 September 30, 2023, 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 3 - LOANS_LEASES RECEIVABL
Note 3 - LOANS/LEASES RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
LOANS/LEASES RECEIVABLE | NOTE 3 – LOANS/LEASES RECEIVABLE The composition of the loan/lease portfolio as of September 30, 2023 and December 31, 2022 is presented as follows: September 30, 2023 December 31, 2022 (dollars in thousands) C&I: C&I - revolving $ 299,588 $ 296,869 C&I - other * / ** 1,487,568 1,451,693 1,787,156 1,748,562 CRE - owner occupied 610,618 629,367 CRE - non-owner occupied 955,552 963,239 Construction and land development** 1,394,054 1,192,061 Multi-family** 1,156,980 963,803 Direct financing leases*** 34,401 31,889 1-4 family real estate**** 539,931 499,529 Consumer 127,615 110,421 6,606,307 6,138,871 Allowance for credit losses (87,669) (87,706) $ 6,518,638 $ 6,051,165 *** Direct financing leases: Net minimum lease payments to be received $ 38,729 $ 34,754 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (4,493) (3,030) 34,401 31,889 Plus deferred lease origination costs, net of fees 100 226 34,501 32,115 Less allowance for credit losses (1,081) (970) $ 33,420 $ 31,145 * Includes equipment financing agreements outstanding at m2, totaling $306.6 million and $278.0 million as of September 30, 2023 and December 31, 2022, respectively. ** As of September 30, 2023, there were C&I – other, construction and land development and multi-family loans held for sale in preparation for securitization totaling $278.0 million. The balances in these loan classes as of September 30, 2023 were $359 thousand, $12.7 million and $265.0 million, respectively. There were no loans held for sale in preparation for securitization at December 31, 2022. *** 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 held for sale totaling $898 thousand and $1.5 million as of September 30, 2023 and December 31, 2022, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $31.3 million and $24.3 million at September 30, 2023 and December 31, 2022, respectively, and was included in other assets on the consolidated balance sheets. Changes in discounts on acquired loans for the three and nine months ended September 30, 2023 and 2022, respectively, are presented as follows: For the Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Performing Performing Performing Performing Loans Loans Loans Loans (dollars in thousands) Balance at the beginning of the period $ (5,104) $ (12,989) $ (6,088) $ (1,533) Discount added at acquisition — — — (13,381) Accretion recognized 540 1,148 1,524 3,073 Balance at the end of the period $ (4,564) $ (11,841) $ (4,564) $ (11,841) The aging of the loan/lease portfolio by classes of loans/leases as of September 30, 2023 and December 31, 2022 is presented as follows: As of September 30, 2023 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 $ 299,588 $ — $ — $ — $ — $ 299,588 C&I - other 1,464,582 6,609 6,155 — 10,222 1,487,568 CRE - owner occupied 606,998 133 — — 3,487 610,618 CRE - non-owner occupied 950,286 88 — — 5,178 955,552 Construction and land development 1,389,601 — — — 4,453 1,394,054 Multi-family 1,148,808 — — — 8,172 1,156,980 Direct financing leases 33,694 315 151 — 241 34,401 1-4 family real estate 537,271 — 405 — 2,255 539,931 Consumer 126,983 20 52 — 560 127,615 $ 6,557,811 $ 7,165 $ 6,763 $ — $ 34,568 $ 6,606,307 As a percentage of total loan/lease portfolio 99.27 % 0.11 % 0.10 % — % 0.52 % 100.00 % As of December 31, 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 $ 296,869 $ — $ — $ — $ — $ 296,869 C&I - other 1,442,629 4,800 1,124 5 3,135 1,451,693 CRE - owner occupied 625,611 1,166 — — 2,590 629,367 CRE - non-owner occupied 962,444 421 — — 374 963,239 Construction and land development 1,191,929 — — — 132 1,192,061 Multi-family 963,803 — — — — 963,803 Direct financing leases 31,557 141 56 — 135 31,889 1-4 family real estate 495,936 1,030 517 — 2,046 499,529 Consumer 110,041 27 — — 353 110,421 $ 6,120,819 $ 7,585 $ 1,697 $ 5 $ 8,765 $ 6,138,871 As a percentage of total loan/lease portfolio 99.71 % 0.12 % 0.03 % 0.00 % 0.14 % 100.00 % NPLs by classes of loans/leases as of September 30, 2023 and December 31, 2022 are presented as follows: As of September 30, 2023 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 — 7,521 2,701 10,222 29.57 CRE - owner occupied — 1,225 2,262 3,487 10.09 CRE - non-owner occupied — 2,040 3,138 5,178 14.98 Construction and land development — 1,930 2,523 4,453 12.88 Multi-family — — 8,172 8,172 23.64 Direct financing leases — 152 89 241 0.70 1-4 family real estate — 1,861 394 2,255 6.52 Consumer — 560 — 560 1.62 $ — $ 15,289 $ 19,279 $ 34,568 100.00 % As of December 31, 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 5 2,775 360 3,140 35.80 CRE - owner occupied — 1,738 852 2,590 29.53 CRE - non-owner occupied — 68 306 374 4.26 Construction and land development — 132 — 132 1.51 Multi-family — — — — - Direct financing leases — 80 55 135 1.54 1-4 family real estate — 1,641 405 2,046 23.33 Consumer — 353 — 353 4.03 $ 5 $ 6,787 $ 1,978 $ 8,770 100.00 % The Company did not recognize any interest income on nonaccrual loans during the three and nine months ended September 30, 2023 and 2022. Changes in the ACL loans/leases by portfolio segment for the three and nine months ended September 30, 2023 and 2022, respectively, are presented as follows: Three Months Ended September 30, 2023 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 $ 4,101 $ 27,162 $ 8,731 $ 11,968 $ 15,888 $ 11,229 $ 5,213 $ 1,505 $ 85,797 Change in ACL for writedown of LHFS to fair value — — — — — 175 — — 175 Provision 368 1,111 192 (313) 992 875 (45) 80 3,260 Charge-offs — (1,734) (14) — (38) — — (30) (1,816) Recoveries — 215 3 26 — — — 9 253 Balance, ending $ 4,469 $ 26,754 $ 8,912 $ 11,681 $ 16,842 $ 12,279 $ 5,168 $ 1,564 $ 87,669 Nine Months Ended September 30, 2023 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 $ 4,457 $ 27,753 $ 9,965 $ 11,749 $ 14,262 $ 13,186 $ 4,963 $ 1,371 $ 87,706 Change in ACL for writedown of LHFS to fair value — (5) — — (147) (3,659) — — (3,811) Provision 12 3,986 (834) (99) 2,777 2,752 200 237 9,031 Charge-offs — (5,709) (222) — (50) — — (57) (6,038) Recoveries — 729 3 31 — — 5 13 781 Balance, ending $ 4,469 $ 26,754 $ 8,912 $ 11,681 $ 16,842 $ 12,279 $ 5,168 $ 1,564 $ 87,669 * Included within the C&I – Other column are ACL on leases with a beginning balance of $1.0 million, provision of $165 thousand, charge-offs of $133 thousand and recoveries of $43 thousand. ACL on leases was $1.1 million as of September 30, 2023. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $970 thousand, provision of $224 thousand, charge-offs of $186 thousand and recoveries of $73 thousand. ACL on leases was $1.1 million as of September 30, 2023. Three Months Ended September 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 $ 5,179 $ 28,093 $ 11,065 $ 12,049 $ 16,388 $ 12,783 $ 5,513 $ 1,355 $ 92,425 Provision 1 1,652 (606) (161) (693) 437 (276) (23) 331 Charge-offs — (1,915) — — (562) — (5) (7) (2,489) Recoveries — 176 — — — 43 — 3 222 Balance, ending $ 5,180 $ 28,006 $ 10,459 $ 11,888 $ 15,133 $ 13,263 $ 5,232 $ 1,328 $ 90,489 Nine Months Ended September 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** 673 4,185 (529) 2,328 (2,377) 3,400 559 384 8,623 Charge-offs — (2,790) — (193) (562) — (5) (15) (3,565) Recoveries — 622 6 128 — 43 — 9 808 Balance, ending $ 5,180 $ 28,006 $ 10,459 $ 11,888 $ 15,133 $ 13,263 $ 5,232 $ 1,328 $ 90,489 * Included within the C&I – Other column are ACL on leases with adoption impact of $1.6 million, provision of $91 thousand, charge-offs of $708 thousand and recoveries of $65 thousand. ACL on leases was $1.0 million as of September 30, 2022. ** Provision for the nine months ended September 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 $249 thousand, charge-offs of $931 thousand and recoveries of $173 thousand. ACL on leases was $1.0 million as of September 30, 2022. The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows: As of September 30, 2023 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 $ 3,358 $ 296,230 $ 299,588 $ 944 $ 3,525 $ 4,469 C&I - other* 19,468 1,502,501 1,521,969 2,380 24,374 26,754 22,826 1,798,731 1,821,557 3,324 27,899 31,223 CRE - owner occupied 23,952 586,666 610,618 2,844 6,068 8,912 CRE - non-owner occupied 20,456 935,096 955,552 836 10,845 11,681 Construction and land development 4,453 1,389,601 1,394,054 307 16,535 16,842 Multi-family 9,539 1,147,441 1,156,980 427 11,852 12,279 1-4 family real estate 2,906 537,025 539,931 253 4,915 5,168 Consumer 717 126,898 127,615 72 1,492 1,564 $ 84,849 $ 6,521,458 $ 6,606,307 $ 8,063 $ 79,606 $ 87,669 * Included within the C&I – Other category are leases individually evaluated of $241 thousand with a related allowance for credit losses of $55 thousand and leases collectively evaluated of $34.2 million with a related allowance for credit losses of $1.0 million. As of December 31, 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 $ 3,386 $ 293,483 $ 296,869 $ 961 $ 3,496 $ 4,457 C&I - other* 9,358 1,474,224 1,483,582 1,445 26,308 27,753 12,744 1,767,707 1,780,451 2,406 29,804 32,210 CRE - owner occupied 24,880 604,487 629,367 2,853 7,112 9,965 CRE - non-owner occupied 21,588 941,651 963,239 869 10,880 11,749 Construction and land development 10,394 1,181,667 1,192,061 13 14,249 14,262 Multi-family 1,302 962,501 963,803 395 12,791 13,186 1-4 family real estate 3,177 496,352 499,529 317 4,646 4,963 Consumer 741 109,680 110,421 75 1,296 1,371 $ 74,826 $ 6,064,045 $ 6,138,871 $ 6,928 $ 80,778 $ 87,706 * Included within the C&I – Other category are leases individually evaluated of $135 thousand with a related allowance for credit losses of $24 thousand and leases collectively evaluated of $31.8 million with a related allowance for credit losses of $946 thousand. 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 September 30, 2023 and December 31, 2022: As of September 30, 2023 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 $ 3,253 $ — $ — $ — $ — $ 105 $ — $ 3,358 C&I - other* 631 — — — 5,533 12,916 388 19,468 3,884 — — — 5,533 13,021 388 22,826 CRE - owner occupied — 23,888 — 64 — — — 23,952 CRE - non-owner occupied — — 20,456 — — — — 20,456 Construction and land development — 150 4,303 — — — — 4,453 Multi-family — — 9,539 — — — — 9,539 1-4 family real estate — — 27 2,879 — — — 2,906 Consumer — — 119 526 — — 72 717 $ 3,884 $ 24,038 $ 34,444 $ 3,469 $ 5,533 $ 13,021 $ 460 $ 84,849 * Included within the C&I – Other category are leases individually evaluated of $241 thousand with primary collateral of equipment. As of December 31, 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 $ 3,281 $ — $ — $ — $ — $ 105 $ — $ 3,386 C&I - other* 1,589 210 — — 108 7,289 162 9,358 4,870 210 — — 108 7,394 162 12,744 CRE - owner occupied — 24,814 — 66 — — — 24,880 CRE - non-owner occupied — — 21,588 — — — — 21,588 Construction and land development — — 10,394 — — — — 10,394 Multi-family — — 1,302 — — — — 1,302 1-4 family real estate — — 33 3,144 — — — 3,177 Consumer — — 120 608 — — 13 741 $ 4,870 $ 25,024 $ 33,437 $ 3,818 $ 108 $ 7,394 $ 175 $ 74,826 * Included within the C&I – Other category are leases individually evaluated of $135 thousand with primary collateral of equipment. For certain C&I loans, all CRE loans, certain construction and land development loans, all multifamily loans, certain 1-4 family residential loans and certain consumer 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 certain 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 September 30, 2023: As of September 30, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2023 2022 2021 2020 2019 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 272,848 $ 272,848 Special Mention (Rating 6) — — — — — — 23,632 23,632 Substandard (Rating 7) — — — — — — 3,108 3,108 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 299,588 $ 299,588 C&I - other Pass (Ratings 1 through 5) $ 372,511 $ 318,783 $ 156,021 $ 85,298 $ 69,736 $ 139,089 $ — $ 1,141,438 Special Mention (Rating 6) 12,149 8,936 4,225 3,757 801 321 — 30,189 Substandard (Rating 7) 101 123 250 — 3,152 5,675 — 9,301 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 384,761 $ 327,842 $ 160,496 $ 89,055 $ 73,689 $ 145,085 $ — $ 1,180,928 CRE - owner occupied Pass (Ratings 1 through 5) $ 71,080 $ 130,033 $ 148,170 $ 112,315 $ 30,875 $ 62,220 $ 11,670 $ 566,363 Special Mention (Rating 6) 5,046 720 8,873 5,820 470 386 871 22,186 Substandard (Rating 7) 1,945 711 1,044 16,045 1,186 1,138 — 22,069 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 78,071 $ 131,464 $ 158,087 $ 134,180 $ 32,531 $ 63,744 $ 12,541 $ 610,618 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 107,668 $ 290,689 $ 199,435 $ 131,797 $ 74,778 $ 84,855 $ 6,412 $ 895,634 Special Mention (Rating 6) 12,623 59 250 17,277 2,385 6,868 — 39,462 Substandard (Rating 7) 3,919 1,331 — 157 14,996 — 53 20,456 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 124,210 $ 292,079 $ 199,685 $ 149,231 $ 92,159 $ 91,723 $ 6,465 $ 955,552 Construction and land development Pass (Ratings 1 through 5) $ 353,940 $ 491,807 $ 286,614 $ 187,894 $ 8,686 $ 8,083 $ 26,905 $ 1,363,929 Special Mention (Rating 6) — — 10,109 — — — — 10,109 Substandard (Rating 7) 413 2,773 1,267 — — — — 4,453 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 354,353 $ 494,580 $ 297,990 $ 187,894 $ 8,686 $ 8,083 $ 26,905 $ 1,378,491 Multi-family Pass (Ratings 1 through 5) $ 246,633 $ 224,208 $ 239,039 $ 230,271 $ 110,450 $ 95,149 $ 96 $ 1,145,846 Special Mention (Rating 6) 1,595 — — — — — — 1,595 Substandard (Rating 7) — — 8,208 1,331 — — — 9,539 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 248,228 $ 224,208 $ 247,247 $ 231,602 $ 110,450 $ 95,149 $ 96 $ 1,156,980 1-4 family real estate Pass (Ratings 1 through 5) $ 55,287 $ 48,557 $ 53,234 $ 26,292 $ 11,171 $ 6,963 $ 3,606 $ 205,110 Special Mention (Rating 6) 29 — — — — — — 29 Substandard (Rating 7) 25 — — — 2 — — 27 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 55,341 $ 48,557 $ 53,234 $ 26,292 $ 11,173 $ 6,963 $ 3,606 $ 205,166 Consumer Pass (Ratings 1 through 5) $ 89 $ 416 $ 373 $ 447 $ 24 $ 727 $ 8,279 $ 10,355 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 43 280 — — — 93 — 416 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 132 $ 696 $ 373 $ 447 $ 24 $ 820 $ 8,279 $ 10,771 Total $ 1,245,096 $ 1,519,426 $ 1,117,112 $ 818,701 $ 328,712 $ 411,567 $ 357,480 $ 5,798,094 As of September 30, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2023 2022 2021 2020 2019 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 113,677 $ 116,539 $ 47,024 $ 15,549 $ 3,665 $ 326 $ — $ 296,780 Nonperforming 616 6,437 2,442 293 67 5 — 9,860 Total C&I - other $ 114,293 $ 122,976 $ 49,466 $ 15,842 $ 3,732 $ 331 $ — $ 306,640 Construction and land development Performing $ 13,912 $ 1,306 $ 274 $ 10 $ 2 $ 59 $ — $ 15,563 Nonperforming — — — — — — — — Total Construction and land development $ 13,912 $ 1,306 $ 274 $ 10 $ 2 $ 59 $ — $ 15,563 Direct financing leases Performing $ 12,138 $ 12,548 $ 3,706 $ 3,248 $ 2,075 $ 445 $ — $ 34,160 Nonperforming — 16 22 187 16 — — 241 Total Direct financing leases $ 12,138 $ 12,564 $ 3,728 $ 3,435 $ 2,091 $ 445 $ — $ 34,401 1-4 family real estate Performing $ 56,490 $ 58,926 $ 80,455 $ 69,330 $ 15,705 $ 51,527 $ 80 $ 332,513 Nonperforming — 219 642 418 327 646 — 2,252 Total 1-4 family real estate $ 56,490 $ 59,145 $ 81,097 $ 69,748 $ 16,032 $ 52,173 $ 80 $ 334,765 Consumer Performing $ 15,252 $ 10,104 $ 2,562 $ 2,973 $ 710 $ 1,310 $ 83,653 $ 116,564 Nonperforming — 5 21 13 — 187 54 280 Total Consumer $ 15,252 $ 10,109 $ 2,583 $ 2,986 $ 710 $ 1,497 $ 83,707 $ 116,844 Total $ 212,085 $ 206,100 $ 137,148 $ 92,021 $ 22,567 $ 54,505 $ 83,787 $ 808,213 * 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 table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Gross Charge-off by Origination Year Gross Charge-off by Origination Year Classes of Loans/Leases 2023 2022 2021 2020 2019 Prior Total 2023 2022 2021 2020 2019 Prior Total (dollars in thousands) (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — C&I - other 41 1,130 192 204 5 29 1,601 41 2,990 1,063 1,053 238 138 5,523 CRE - owner occupied — — — — — 14 14 — — 208 — — 14 222 CRE - non-owner occupied — — — — — — — — — — — — — — Construction and land development — 38 — — — — 38 — 50 — — — — 50 Multi-family — — — — — — — — — — — — — — Direct financing leases — 34 55 41 3 — 133 — 71 55 41 18 1 186 1-4 family real estate — — — — — — — — — — — — — — Consumer — 22 7 1 — — 30 — 41 10 1 5 — 57 $ 41 $ 1,224 $ 254 $ 246 $ 8 $ 43 $ 1,816 $ 41 $ 3,152 $ 1,336 $ 1,095 $ 261 $ 153 $ 6,038 The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2022: As of December 31, 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) $ — $ — $ — $ — $ — $ — $ 275,888 $ 275,888 Special Mention (Rating 6) — — — — — — 17,595 17,595 Substandard (Rating 7) — — — — — — 3,386 3,386 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 296,869 $ 296,869 C&I - other Pass (Ratings 1 through 5) $ 496,445 $ 279,412 $ 127,803 $ 87,054 $ 59,675 $ 105,184 $ — $ 1,155,573 Special Mention (Rating 6) 9,542 679 901 723 — 308 — 12,153 Substandard (Rating 7) 187 125 661 4,535 310 106 — 5,924 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 506,174 $ 280,216 $ 129,365 $ 92,312 $ 59,985 $ 105,598 $ — $ 1,173,650 CRE - owner occupied Pass (Ratings 1 through 5) $ 146,211 $ 182,440 $ 142,596 $ 33,571 $ 27,088 $ 45,993 $ 13,460 $ 591,359 Special Mention (Rating 6) 6,190 — 6,379 484 — 1,346 269 14,668 Substandard (Rating 7) 3,750 171 16,336 1,396 1,197 490 — 23,340 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 156,151 $ 182,611 $ 165,311 $ 35,451 $ 28,285 $ 47,829 $ 13,729 $ 629,367 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 310,163 $ 221,953 $ 173,478 $ 89,337 $ 56,898 $ 40,923 $ 7,510 $ 900,262 Special Mention (Rating 6) 2,824 882 18,920 — 12,917 6,198 — 41,741 Substandard (Rating 7) 5,651 — 157 15,217 — — 211 21,236 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 318,638 $ 222,835 $ 192,555 $ 104,554 $ 69,815 $ 47,121 $ 7,721 $ 963,239 Construction and land development Pass (Ratings 1 through 5) $ 479,016 $ 330,434 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,141,782 Special Mention (Rating 6) 1,465 9,200 — — — — — 10,665 Substandard (Rating 7) 132 10,262 — — — — — 10,394 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 480,613 $ 349,896 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,162,841 Multi-family Pass (Ratings 1 through 5) $ 237,839 $ 254,056 $ 224,920 $ 134,378 $ 99,6 |
Note 4 - DERIVATIVES AND HEDGIN
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 4 – DERIVATIVES AND HEDGING ACTIVITIES Derivatives are summarized as follows as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (dollars in thousands) Assets: Hedged Derivatives Cash Flow Hedges Interest rate caps $ 5,196 $ 8,327 Interest rate swaps 3,334 477 Fair Value Hedges Interest rate swaps 3,977 — Unhedged Derivatives Interest rate caps 1,533 2,213 Interest rate swaps 277,255 166,614 $ 291,295 $ 177,631 Liabilities: Hedged Derivatives Cash Flow Hedges Interest rate swaps (42,095) (33,824) Interest rate collars (870) (263) Unhedged Derivatives Interest rate swaps (277,255) (166,614) $ (320,220) $ (200,701) The Company uses interest rate swap, cap and collar 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 SOFR, 3-month SOFR 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 September 30, 2023 December 31, 2022 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ - $ (50) Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 % 157 714 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % 474 1,566 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % 237 783 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 1,010 1,264 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 2,212 2,700 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 1,106 1,350 $ 225,000 $ 5,196 $ 8,327 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 September 30, 2023 December 31, 2022 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Assets $ 10,000 8.51 % 5.85 % $ 710 $ 464 QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Assets 8,000 8.51 % 5.85 % 568 372 QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Assets 10,000 7.12 % 4.54 % 691 459 Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Assets 3,000 7.83 % 5.17 % 212 140 Community National Statutory Trust III 9/15/2018 9/15/2028 Derivatives - Assets 3,500 7.42 % 4.75 % 247 163 Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Assets 4,500 7.42 % 4.75 % 318 209 Guaranty Statutory Trust II* 5/23/2019 2/23/2026 Derivatives - Assets 10,310 7.09 % 4.09 % 588 477 $ 49,310 $ 3,334 $ 2,284 * Acquired on 4/1/2022 with GFED acquisition. The Company has entered into interest rate swaps to hedge against the risk of declining interest rates on floating rate loans. 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 September 30, 2023 December 31, 2022 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 5.31 % $ (6,776) $ (5,646) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 5.31 % (9,680) (8,066) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 5.31 % (7,755) (6,464) Loans 10/1/2022 7/1/2031 Derivatives - Liabilities 25,000 1.30 % 5.31 % (4,877) (4,018) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 5.31 % (1,301) (1,144) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.31 % (4,335) (3,812) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 5.31 % (3,035) (2,669) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.31 % (4,336) (3,812) $ 300,000 $ (42,095) $ (35,631) The Company uses interest rate collars in an effort to manage future interest rate exposure on variable rate loans. The collar hedging strategy stabilizes interest rate fluctuations by setting both a floor and a cap. The collar is designated as a cash flow hedge in accordance with ASC 815. The details of the interest rate collars are as follows: Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Cap Strike Rate Floor Strike Rate September 30, 2023 December 31, 2022 Loans 10/1/2022 10/1/2026 Derivatives - Liabilities $ 50,000 4.40 % 2.44 % $ (870) $ (263) The Company has entered into interest rate swaps to hedge against the risk of rising rates on loans. The interest rate swaps are designated as fair value 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 September 30, 2023 December 31, 2022 (dollars in thousands) Loans 7/12/2023 2/1/2026 Derivatives - Assets $ 25,000 5.31 % 4.38 % $ 204 $ N/A Loans 7/12/2023 8/1/2026 Derivatives - Assets 30,000 5.31 % 4.21 % 304 N/A Loans 7/12/2023 2/1/2027 Derivatives - Assets 32,500 5.31 % 4.08 % 409 N/A Loans 7/12/2023 8/1/2027 Derivatives - Assets 32,500 5.31 % 3.98 % 488 N/A Loans 7/12/2023 2/1/2028 Derivatives - Assets 30,000 5.31 % 3.90 % 532 N/A Loans 7/12/2023 2/1/2026 Derivatives - Assets 15,000 5.31 % 4.38 % 123 N/A Loans 7/12/2023 8/1/2026 Derivatives - Assets 15,000 5.31 % 4.21 % 152 N/A Loans 7/12/2023 2/1/2027 Derivatives - Assets 15,000 5.31 % 4.08 % 189 N/A Loans 7/12/2023 8/1/2027 Derivatives - Assets 15,000 5.31 % 3.98 % 225 N/A Loans 7/12/2023 2/1/2028 Derivatives - Assets 15,000 5.31 % 3.90 % 267 N/A Loans 7/12/2023 8/1/2025 Derivatives - Assets 15,000 5.31 % 4.60 % 90 N/A Loans 7/12/2023 2/1/2026 Derivatives - Assets 20,000 5.31 % 4.38 % 163 N/A Loans 7/12/2023 8/1/2026 Derivatives - Assets 20,000 5.31 % 4.21 % 203 N/A Loans 7/12/2023 2/1/2027 Derivatives - Assets 20,000 5.31 % 4.08 % 252 N/A Loans 7/12/2023 8/1/2027 Derivatives - Assets 25,000 5.31 % 3.98 % 376 N/A $ 325,000 $ 3,977 $ N/A 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. Changes in fair values of derivative financial instruments accounted for as fair value hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of interest income/expense. 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 September 30, 2023 December 31, 2022 (dollars in thousands) 1/1/2020 1/3/2023 Derivatives - Assets $ 25,000 1.90 % $ - $ 3 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 % 310 822 3/1/2020 3/3/2025 Derivatives - Assets 25,000 1.90 % 1,223 1,388 $ 75,000 $ 1,533 $ 2,213 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: September 30, 2023 December 31, 2022 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 2,967,392 $ 277,255 $ 2,528,949 $ 166,614 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 2,967,392 $ 277,255 $ 2,528,949 $ 166,614 The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three and nine months ended September 30, 2023 and 2022 are as follows: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 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 $ 108,568 $ 53,313 $ 79,267 $ 18,498 The effects of cash flow hedging: Gain on interest rate caps on deposits - (2,066) - (263) Gain on interest rate swaps on junior subordinated debentures - (328) - 73 Loss on interest rate swaps and collars on loans (2,495) - (426) - The effects of fair value hedging: Gain on interest rate swaps on loans 828 - - - Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 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 $ 301,162 $ 135,892 $ 198,534 $ 32,632 The effects of cash flow hedging: Gain on interest rate caps on deposits - (5,522) - 199 Gain on interest rate swaps on junior subordinated debentures - (830) - 536 Loss on interest rate swaps and collars on loans (6,757) - 715 - The effects of fair value hedging: Gain on interest rate swaps on loans 828 - - - 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: September 30, 2023 December 31, 2022 (dollars in thousands) Cash $ 1,275 $ 1,272 Municipal securities 3,945 8,227 Residential mortgage-backed and related securities 5,778 29,257 $ 10,998 $ 38,756 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 ratings 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, below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
Note 5 - INCOME TAXES
Note 5 - INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 5 – 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 nine months ended September 30, 2023 and 2022: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 5,661 21.0 % $ 7,165 21.0 % $ 18,751 21.0 % $ 16,130 21.0 % Tax exempt income, net (3,705) (13.7) (3,003) (8.8) (10,103) (11.3) (7,701) (10.0) Bank-owned life insurance (376) (1.4) (127) (0.4) (700) (0.8) (273) (0.4) State income taxes, net of federal benefit, current year 955 3.5 1,616 4.7 3,383 3.8 3,889 5.1 Provision adjustment from accounting method change — — — — — — (1,181) (1.5) Tax credits (202) (0.7) (359) (1.1) (411) (0.5) (890) (1.2) Income from tax credit equity investments (449) (1.7) (337) (1.0) (1,340) (1.5) (939) (1.2) Acquisition costs — — 78 0.2 — — 450 0.6 Excess tax benefit on stock options exercised and restricted stock awards vested (7) (0.0) (46) (0.1) (451) (0.5) (520) (0.7) Other (37) (0.2) (163) (0.4) (540) (0.6) (316) (0.4) Federal and state income tax expense $ 1,840 6.8 % $ 4,824 14.1 % $ 8,589 9.6 % $ 8,649 11.3 % |
Note 6 - EARNINGS PER SHARE
Note 6 - EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 6 - EARNINGS PER SHARE The following information was used in the computation of EPS on a basic and diluted basis: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (dollars in thousands, except share data) Net income $ 25,121 $ 29,294 $ 80,703 $ 68,160 Basic EPS $ 1.50 $ 1.73 $ 4.82 $ 4.25 Diluted EPS $ 1.49 $ 1.71 $ 4.79 $ 4.20 Weighted average common shares outstanding 16,717,303 16,900,968 16,731,847 16,030,371 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 130,648 209,723 131,356 213,550 Weighted average common and common equivalent shares outstanding 16,847,951 17,110,691 16,863,203 16,243,921 |
Note 7 - FAIR VALUE
Note 7 - FAIR VALUE | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE | |
FAIR VALUE | NOTE 7 – 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 September 30, 2023 and December 31, 2022: 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) September 30, 2023: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,002 $ — $ 16,002 $ — Residential mortgage-backed and related securities 57,946 — 57,946 — Municipal securities 149,772 — 149,772 — Asset-backed securities 16,326 — 16,326 — Other securities 41,233 — 41,233 — Derivatives 291,295 — 291,295 — Total assets measured at fair value $ 572,574 $ — $ 572,574 $ — Derivatives $ 320,220 $ — $ 320,220 $ — Total liabilities measured at fair value $ 320,220 $ — $ 320,220 $ — December 31, 2022: Securities AFS: U.S. govt. sponsored agency securities $ 16,981 $ — $ 16,981 $ — Residential mortgage-backed and related securities 66,215 — 66,215 — Municipal securities 193,178 — 193,178 — Asset-backed securities 18,728 — 18,728 — Other securities 45,858 — 45,858 — Derivatives 177,631 — 177,631 — Total assets measured at fair value $ 518,591 $ — $ 518,591 $ — Derivatives $ 200,701 $ — $ 200,701 $ — Total liabilities measured at fair value $ 200,701 $ — $ 200,701 $ — 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, swaps and collars are used for the purpose of hedging interest rate risk on various financial assets and liabilities, further described in Note 4 to the Consolidated Financial Statements. Interest rate swaps are also executed for select commercial customers. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (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 comprised the following at September 30, 2023 and December 31, 2022: 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) September 30, 2023: Loans/leases evaluated individually $ 35,197 $ — $ — $ 35,197 Loans receivable held for sale in preparation for securitization 277,995 — — 277,995 OREO 120 — — 120 $ 313,312 $ — $ — $ 313,312 December 31, 2022: Loans/leases evaluated individually $ 30,765 $ — $ — $ 30,765 OREO 144 — — 144 $ 30,909 $ — $ — $ 30,909 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 comprised of 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. Loans receivable held for sale in preparation for securitization are valued at the lower of cost or fair value in the aggregate by type and are classified as Level 3 in the fair value hierarchy. Fair value is estimated considering the loans have a floating interest rate with a spread that is commensurate with current market pricing, in addition to factoring in a discount for credit risk. OREO in the table above consists of property acquired through foreclosures and settlements of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property are generally 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 property. 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 September 30, December 31, 2023 2022 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 35,197 $ 30,765 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % Loans receivable held for sale in preparation for securitization 277,995 — Market prices for similar loans Market price adjustments n/a OREO 130 144 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % 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. For the loans receivable held for sale in preparation for securitization, the Company records carrying value at fair value factoring in a discount for credit risk. There have been no changes in valuation techniques used for any assets or liabilities measured at fair value during the three and nine months ended September 30, 2023 and 2022. 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 September 30, 2023 As of December 31, 2022 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 104,265 $ 104,265 $ 59,723 $ 59,723 Federal funds sold Level 2 20,300 20,300 56,910 56,910 Interest-bearing deposits at financial institutions Level 2 60,350 60,350 67,360 67,360 Investment securities: HTM Level 2 615,115 524,819 587,142 535,636 AFS Level 2 281,279 281,279 340,960 340,960 Loans/leases receivable, net Level 3 310,585 313,192 28,486 30,765 Loans/leases receivable, net Level 2 6,208,053 5,907,226 6,022,679 5,896,443 Derivatives Level 2 291,295 291,295 177,631 177,631 Deposits: Nonmaturity deposits Level 2 5,522,283 5,522,283 5,199,633 5,199,633 Time deposits Level 2 972,569 966,026 784,584 766,294 Short-term borrowings Level 2 470 470 129,630 129,630 FHLB advances Level 2 430,000 429,450 415,000 415,000 Subordinated notes Level 2 232,958 249,002 232,662 250,613 Junior subordinated debentures Level 2 48,698 40,204 48,602 41,545 Derivatives Level 2 320,220 320,220 200,701 200,701 |
Note 8 - BUSINESS SEGMENT INFOR
Note 8 - BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | NOTE 8 – 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 nine months ended September 30, 2023 and 2022: Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB All other Eliminations Total (dollars in thousands) Three Months Ended September 30, 2023 Total revenue $ 38,165 $ 43,592 $ 19,225 $ 34,498 $ 31,878 $ (32,197) $ 135,161 Net interest income 17,198 16,852 11,136 13,743 (3,958) 284 55,255 Provision for credit losses 2,686 503 275 342 — — 3,806 Net income (loss) from continuing operations 5,856 13,175 4,740 6,801 25,641 (31,092) 25,121 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 950 1,579 12,008 — — 14,537 Total assets 2,433,084 2,442,263 1,417,249 2,242,638 1,146,137 (1,141,314) 8,540,057 Three Months Ended September 30, 2022 Total revenue $ 26,583 $ 34,157 $ 14,127 $ 25,523 $ 36,283 $ (36,311) $ 100,362 Net interest income 18,117 17,160 10,183 18,196 (3,242) 355 60,769 Provision for loan/lease losses 554 (35) (269) (250) — — — Net income (loss) from continuing operations 7,758 14,475 4,106 9,196 29,542 (35,783) 29,294 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,344 2,184 14,018 — — 17,546 Total assets 2,218,166 2,108,614 1,270,426 2,107,407 1,045,774 (1,020,338) 7,730,049 Nine Months Ended September 30, 2023 Total revenue $ 106,664 $ 138,018 $ 53,126 $ 90,443 $ 101,472 $ (103,606) $ 386,117 Net interest income 50,590 50,254 32,683 42,716 (11,911) 938 165,270 Provision for loan/lease losses 7,879 2,499 965 (3) — — 11,340 Net income (loss) from continuing operations 17,710 48,928 14,113 17,344 82,266 (99,658) 80,703 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 950 1,579 12,008 — — 14,537 Total assets 2,433,084 2,442,263 1,417,249 2,242,638 1,146,137 (1,141,314) 8,540,057 Nine Months Ended September 30, 2022 Total revenue $ 72,785 $ 91,083 $ 37,534 $ 57,036 $ 91,989 $ (92,383) $ 258,044 Net interest income 53,971 46,576 29,365 42,789 (7,845) 1,046 165,902 Provision for loan/lease losses (88) (971) (554) 9,897 — — 8,284 Net income (loss) from continuing operations 26,153 38,860 11,606 13,327 68,982 (90,768) 68,160 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,344 2,184 14,018 — — 17,546 Total assets 2,218,166 2,108,614 1,270,426 2,107,407 1,045,774 (1,020,338) 7,730,049 |
Note 9 - REGULATORY CAPITAL REQ
Note 9 - REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
REGULATORY CAPITAL REQUIREMENTS | NOTE 9 – 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 September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022 are presented in the following tables (dollars in thousands). As of September 30, 2023 and December 31, 2022, 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 September 30, 2023: Company: Total risk-based capital $ 1,135,262 14.54 % $ 624,805 > 8.00 % $ 820,057 > 10.50 % $ 781,007 > 10.00 % Tier 1 risk-based capital 807,582 10.34 468,604 > 6.00 663,856 > 8.50 624,805 > 8.00 Tier 1 leverage 807,582 9.92 325,480 > 4.00 325,480 > 4.00 406,850 > 5.00 Common equity Tier 1 758,884 9.72 351,453 > 4.50 546,705 > 7.00 507,654 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 295,319 12.90 % $ 183,095 > 8.00 % $ 240,313 > 10.50 % $ 228,869 > 10.00 % Tier 1 risk-based capital 266,688 11.65 137,321 > 6.00 194,539 > 8.50 183,095 > 8.00 Tier 1 leverage 266,688 11.10 96,111 > 4.00 96,111 > 4.00 120,139 > 5.00 Common equity Tier 1 266,688 11.65 102,991 > 4.50 160,208 > 7.00 148,765 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 358,150 17.05 % $ 168,021 > 8.00 % $ 220,527 > 10.50 % $ 210,026 > 10.00 % Tier 1 risk-based capital 331,423 15.78 126,016 > 6.00 178,522 > 8.50 168,021 > 8.00 Tier 1 leverage 331,423 14.60 90,799 > 4.00 90,799 > 4.00 113,498 > 5.00 Common equity Tier 1 331,423 15.78 94,512 > 4.50 147,018 > 7.00 136,517 > 6.50 Community State Bank: Total risk-based capital $ 177,296 13.57 % $ 104,554 > 8.00 % $ 137,227 > 10.50 % $ 130,693 > 10.00 % Tier 1 risk-based capital 152,596 11.68 78,416 > 6.00 111,089 > 8.50 104,554 > 8.00 Tier 1 leverage 152,596 11.24 54,303 > 4.00 54,303 > 4.00 67,879 > 5.00 Common equity Tier 1 152,596 11.68 58,812 > 4.50 91,485 > 7.00 84,950 > 6.50 Guaranty Bank: Total risk-based capital $ 258,732 12.53 % $ 165,160 > 8.00 % $ 216,772 > 10.50 % $ 206,450 > 10.00 % Tier 1 risk-based capital 236,071 11.43 123,870 > 6.00 175,482 > 8.50 165,160 > 8.00 Tier 1 leverage 236,071 11.22 84,130 > 4.00 84,130 > 4.00 105,162 > 5.00 Common equity Tier 1 236,071 11.43 92,902 > 4.50 144,515 > 7.00 134,192 > 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, 2022: Company: Total risk-based capital $ 1,055,177 14.28 % $ 591,132 > 8.00 % $ 775,861 > 10.50 % $ 738,915 > 10.00 % Tier 1 risk-based capital 734,977 9.95 443,349 > 6.00 628,078 > 8.50 591,132 > 8.00 Tier 1 leverage 734,977 9.61 305,959 > 4.00 305,959 > 4.00 382,449 > 5.00 Common equity Tier 1 686,375 9.29 332,512 > 4.50 517,241 > 7.00 480,295 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 275,337 13.07 % $ 168,588 > 8.00 % $ 221,272 > 10.50 % $ 210,735 > 10.00 % Tier 1 risk-based capital 248,978 11.81 126,441 > 6.00 179,125 > 8.50 168,588 > 8.00 Tier 1 leverage 248,978 11.01 90,419 > 4.00 90,419 > 4.00 133,023 > 5.00 Common equity Tier 1 248,978 11.81 94,831 > 4.50 147,514 > 7.00 136,978 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 308,153 14.84 % $ 166,168 > 8.00 % $ 218,096 > 10.50 % $ 207,711 > 10.00 % Tier 1 risk-based capital 282,258 13.59 124,626 > 6.00 176,554 > 8.50 166,168 > 8.00 Tier 1 leverage 282,258 13.17 85,707 > 4.00 85,707 > 4.00 107,134 > 5.00 Common equity Tier 1 282,258 13.59 93,470 > 4.50 145,397 > 7.00 135,012 > 6.50 Community State Bank: Total risk-based capital $ 142,974 12.04 % $ 94,981 > 8.00 % $ 124,662 > 10.50 % $ 118,726 > 10.00 % Tier 1 risk-based capital 128,130 10.79 71,236 > 6.00 100,917 > 8.50 94,981 > 8.00 Tier 1 leverage 128,130 10.09 50,799 > 4.00 50,799 > 4.00 63,499 > 5.00 Common equity Tier 1 128,130 10.79 53,427 > 4.50 83,108 > 7.00 77,172 > 6.50 Guaranty Bank: Total risk-based capital $ 243,106 12.24 % $ 158,903 > 8.00 % $ 208,560 > 10.50 % $ 198,629 > 10.00 % Tier 1 risk-based capital 218,647 11.01 119,177 > 6.00 168,834 > 8.50 158,903 > 8.00 Tier 1 leverage 218,647 10.90 80,229 > 4.00 80,229 > 4.00 100,286 > 5.00 Common equity Tier 1 218,647 11.01 89,383 > 4.50 139,040 > 7.00 129,109 > 6.50 |
Note 10 - COMMITMENTS
Note 10 - COMMITMENTS | 9 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS | |
COMMITMENTS | NOTE 10 - COMMITMENTS The Company entered into a construction contract in 2023 for the construction of a new CRBT facility in Cedar Rapids, Iowa. The Company will pay the contractor a contract price of approximately $17.0 million, subject to additions and deductions as provided in the contract documents. As of September 30, 2023, the Company has paid $1.2 million of the contract price, resulting in a remaining future commitment of $15.8 million. Construction is anticipated to be completed in 2024. |
Note 1 - SUMMARY OF SIGNIFICA_2
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 are not necessarily indicative of the results expected for the year ending December 31, 2023, 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. ACL: Allowance for credit losses GFED: Guaranty Federal Bancshares, Inc. Allowance: Allowance for credit losses HTM: Held to maturity AOCI: Accumulated other comprehensive income (loss) LIBOR: London Inter-Bank Offered Rate ASC: Accounting Standards Codification LIHTC: Low-income housing tax credit ASU: Accounting Standards Update m2: m2 Equipment Finance, LLC BOLI: Bank-owned life insurance NIM: Net interest margin Caps: Interest rate cap derivatives NPA: Nonperforming asset CECL: Current Expected Credit Losses NPL: Nonperforming loan Community National: Community National Bancorporation OBS: Off-balance sheet Company: QCR Holdings, Inc. OREO: Other real estate owned COVID-19: Coronavirus Disease 2019 OTTI: Other-than-temporary impairment CRBT: Cedar Rapids Bank & Trust Company PCAOB: Public Company Accounting Oversight Board CRE: Commercial real estate PCD: Purchase credit deteriorated loan CSB: Community State Bank PCI: Purchased credit impaired C&I: Commercial and industrial PPP: Paycheck Protection Program EBA: Excess balance account Provision: Provision for credit losses EPS: Earnings per share QCBT: Quad City Bank & Trust Company Exchange Act: Securities Exchange Act of 1934, as ROAA: Return on average assets amended ROAE: Return on average equity 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 SOFR: Secured Overnight Financing Rate FHLB: Federal Home Loan Bank TA: Tangible Assets FRB: Federal Reserve Bank of Chicago TBV: Tangible book value Guaranty: Guaranty Bank, formerly known as Springfield First TCE: Tangible common equity Community Bank TDRs: Troubled debt restructurings TEY: Tax equivalent yield |
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 four banks are state-chartered commercial banks and all are members of the Federal Reserve system. The Company also engages in direct financing lease contracts through m2, a wholly owned subsidiary of QCBT. The company also engages in wealth management services through its banking subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The acquisition of GFED, the holding company of GB, headquartered in Springfield, Missouri, occurred on April 1, 2022 and on April 2, 2022, GB was merged into SFCB, the Company’s Springfield-based charter. The combined bank changed its name to Guaranty Bank. The financial results for the periods since the acquisition and merger are included in this report. See Note 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information about the acquisition and merger. |
Recent accounting developments | Recent 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 In March 2023, the FASB issued ASU 2023-02, “ Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a Consensus of the Emerging Issues Task Force) |
Reclassifications | Reclassifications |
Note 2 - INVESTMENT SECURITIES
Note 2 - INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Amortized cost and fair value of investment securities | Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) September 30, 2023: Securities HTM: Municipal securities $ 614,245 $ (180) $ 2,448 $ (92,718) $ 523,795 Other securities 1,050 — — (26) 1,024 $ 615,295 $ (180) $ 2,448 $ (92,744) $ 524,819 Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 19,130 $ — $ 13 $ (3,141) $ 16,002 Residential mortgage-backed and related securities 66,433 — — (8,487) 57,946 Municipal securities 207,318 — — (57,546) 149,772 Asset-backed securities 16,226 — 144 (44) 16,326 Other securities 46,531 (989) 2 (4,311) 41,233 $ 355,638 $ (989) $ 159 $ (73,529) $ 281,279 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) December 31, 2022: Securities HTM: Municipal securities $ 586,272 $ (180) $ 5,292 $ (56,798) $ 534,586 Other securities 1,050 — — — 1,050 $ 587,322 $ (180) $ 5,292 $ (56,798) $ 535,636 Securities AFS: U.S. govt. sponsored agency securities $ 19,745 $ — $ 19 $ (2,783) $ 16,981 Residential mortgage-backed and related securities 73,438 — — (7,223) 66,215 Municipal securities 239,812 — 66 (46,700) 193,178 Asset-backed securities 18,885 — 48 (205) 18,728 Other securities 48,631 — 27 (2,800) 45,858 $ 400,511 $ — $ 160 $ (59,711) $ 340,960 |
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) September 30, 2023: Securities HTM: Municipal securities $ 235,313 $ (20,751) $ 237,690 $ (71,967) $ 473,003 $ (92,718) Other securities 523 (26) — — 523 (26) $ 235,836 $ (20,777) $ 237,690 $ (71,967) $ 473,526 $ (92,744) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 1,649 $ (1) $ 13,377 $ (3,140) $ 15,026 $ (3,141) Residential mortgage-backed and related securities 77 (1) 57,869 (8,486) 57,946 (8,487) Municipal securities 1,067 (38) 148,159 (57,508) 149,226 (57,546) Asset-backed securities — — 10,521 (44) 10,521 (44) Other securities 3,823 (427) 34,190 (3,884) 38,013 (4,311) $ 6,616 $ (467) $ 264,116 $ (73,062) $ 270,732 $ (73,529) 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, 2022: Securities HTM: Municipal securities $ 347,651 $ (56,798) $ — $ — $ 347,651 $ (56,798) Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 5,138 $ (326) $ 10,591 $ (2,457) $ 15,729 $ (2,783) Residential mortgage-backed and related securities 48,469 (3,327) 17,690 (3,896) 66,159 (7,223) Municipal securities 178,172 (42,661) 9,809 (4,039) 187,981 (46,700) Asset-backed securities 13,684 (205) — — 13,684 (205) Other securities 35,206 (2,404) 4,122 (396) 39,328 (2,800) $ 280,669 $ (48,923) $ 42,212 $ (10,788) $ 322,881 $ (59,711) |
Activity in allowance for credit losses | Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Securities HTM Securities AFS Securities HTM Securities HTM Securities AFS Securities HTM Municipal Corporate Municipal Municipal Corporate Municipal securities securities securities securities securities securities (dollars in thousands) Allowance for credit losses: Beginning balance $ 180 $ 989 $ 198 $ 180 $ — $ 198 Provision for credit loss expense — — — — 989 — Balance, ending $ 180 $ 989 $ 198 $ 180 $ 989 $ 198 |
Realized gain (loss) on investments | Nine Months Ended September 30, 2023 September 30, 2022 Proceeds from sales of securities $ 30,568 $ 111,375 Gross gains from sales of securities 56 — Gross losses from sales of securities (507) — |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 1,907 $ 1,882 Due after one year through five years 27,159 27,700 Due after five years 586,229 495,237 $ 615,295 $ 524,819 Securities AFS: Due in one year or less $ 3,160 $ 3,146 Due after one year through five years 14,338 12,239 Due after five years 255,481 191,622 272,979 207,007 Residential mortgage-backed and related securities 66,433 57,946 Asset-backed securities 16,226 16,326 $ 355,638 $ 281,279 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 230,493 $ 194,222 Securities AFS: Municipal securities 205,747 148,235 Other securities 45,577 40,277 $ 251,324 $ 188,512 |
Note 3 - LOANS_LEASES RECEIVA_2
Note 3 - LOANS/LEASES RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Composition of the loan/lease portfolio | September 30, 2023 December 31, 2022 (dollars in thousands) C&I: C&I - revolving $ 299,588 $ 296,869 C&I - other * / ** 1,487,568 1,451,693 1,787,156 1,748,562 CRE - owner occupied 610,618 629,367 CRE - non-owner occupied 955,552 963,239 Construction and land development** 1,394,054 1,192,061 Multi-family** 1,156,980 963,803 Direct financing leases*** 34,401 31,889 1-4 family real estate**** 539,931 499,529 Consumer 127,615 110,421 6,606,307 6,138,871 Allowance for credit losses (87,669) (87,706) $ 6,518,638 $ 6,051,165 *** Direct financing leases: Net minimum lease payments to be received $ 38,729 $ 34,754 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (4,493) (3,030) 34,401 31,889 Plus deferred lease origination costs, net of fees 100 226 34,501 32,115 Less allowance for credit losses (1,081) (970) $ 33,420 $ 31,145 * Includes equipment financing agreements outstanding at m2, totaling $306.6 million and $278.0 million as of September 30, 2023 and December 31, 2022, respectively. ** As of September 30, 2023, there were C&I – other, construction and land development and multi-family loans held for sale in preparation for securitization totaling $278.0 million. The balances in these loan classes as of September 30, 2023 were $359 thousand, $12.7 million and $265.0 million, respectively. There were no loans held for sale in preparation for securitization at December 31, 2022. *** 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 held for sale totaling $898 thousand and $1.5 million as of September 30, 2023 and December 31, 2022, respectively. |
Schedule of changes in remaining discounts on acquired loans | For the Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Performing Performing Performing Performing Loans Loans Loans Loans (dollars in thousands) Balance at the beginning of the period $ (5,104) $ (12,989) $ (6,088) $ (1,533) Discount added at acquisition — — — (13,381) Accretion recognized 540 1,148 1,524 3,073 Balance at the end of the period $ (4,564) $ (11,841) $ (4,564) $ (11,841) |
Aging of the loan/lease portfolio by classes of loans/leases | As of September 30, 2023 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 $ 299,588 $ — $ — $ — $ — $ 299,588 C&I - other 1,464,582 6,609 6,155 — 10,222 1,487,568 CRE - owner occupied 606,998 133 — — 3,487 610,618 CRE - non-owner occupied 950,286 88 — — 5,178 955,552 Construction and land development 1,389,601 — — — 4,453 1,394,054 Multi-family 1,148,808 — — — 8,172 1,156,980 Direct financing leases 33,694 315 151 — 241 34,401 1-4 family real estate 537,271 — 405 — 2,255 539,931 Consumer 126,983 20 52 — 560 127,615 $ 6,557,811 $ 7,165 $ 6,763 $ — $ 34,568 $ 6,606,307 As a percentage of total loan/lease portfolio 99.27 % 0.11 % 0.10 % — % 0.52 % 100.00 % As of December 31, 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 $ 296,869 $ — $ — $ — $ — $ 296,869 C&I - other 1,442,629 4,800 1,124 5 3,135 1,451,693 CRE - owner occupied 625,611 1,166 — — 2,590 629,367 CRE - non-owner occupied 962,444 421 — — 374 963,239 Construction and land development 1,191,929 — — — 132 1,192,061 Multi-family 963,803 — — — — 963,803 Direct financing leases 31,557 141 56 — 135 31,889 1-4 family real estate 495,936 1,030 517 — 2,046 499,529 Consumer 110,041 27 — — 353 110,421 $ 6,120,819 $ 7,585 $ 1,697 $ 5 $ 8,765 $ 6,138,871 As a percentage of total loan/lease portfolio 99.71 % 0.12 % 0.03 % 0.00 % 0.14 % 100.00 % |
NPLs by classes of loans/leases | As of September 30, 2023 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 — 7,521 2,701 10,222 29.57 CRE - owner occupied — 1,225 2,262 3,487 10.09 CRE - non-owner occupied — 2,040 3,138 5,178 14.98 Construction and land development — 1,930 2,523 4,453 12.88 Multi-family — — 8,172 8,172 23.64 Direct financing leases — 152 89 241 0.70 1-4 family real estate — 1,861 394 2,255 6.52 Consumer — 560 — 560 1.62 $ — $ 15,289 $ 19,279 $ 34,568 100.00 % As of December 31, 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 5 2,775 360 3,140 35.80 CRE - owner occupied — 1,738 852 2,590 29.53 CRE - non-owner occupied — 68 306 374 4.26 Construction and land development — 132 — 132 1.51 Multi-family — — — — - Direct financing leases — 80 55 135 1.54 1-4 family real estate — 1,641 405 2,046 23.33 Consumer — 353 — 353 4.03 $ 5 $ 6,787 $ 1,978 $ 8,770 100.00 % |
Allowance for credit losses on financing receivables | Changes in the ACL loans/leases by portfolio segment for the three and nine months ended September 30, 2023 and 2022, respectively, are presented as follows: Three Months Ended September 30, 2023 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 $ 4,101 $ 27,162 $ 8,731 $ 11,968 $ 15,888 $ 11,229 $ 5,213 $ 1,505 $ 85,797 Change in ACL for writedown of LHFS to fair value — — — — — 175 — — 175 Provision 368 1,111 192 (313) 992 875 (45) 80 3,260 Charge-offs — (1,734) (14) — (38) — — (30) (1,816) Recoveries — 215 3 26 — — — 9 253 Balance, ending $ 4,469 $ 26,754 $ 8,912 $ 11,681 $ 16,842 $ 12,279 $ 5,168 $ 1,564 $ 87,669 Nine Months Ended September 30, 2023 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 $ 4,457 $ 27,753 $ 9,965 $ 11,749 $ 14,262 $ 13,186 $ 4,963 $ 1,371 $ 87,706 Change in ACL for writedown of LHFS to fair value — (5) — — (147) (3,659) — — (3,811) Provision 12 3,986 (834) (99) 2,777 2,752 200 237 9,031 Charge-offs — (5,709) (222) — (50) — — (57) (6,038) Recoveries — 729 3 31 — — 5 13 781 Balance, ending $ 4,469 $ 26,754 $ 8,912 $ 11,681 $ 16,842 $ 12,279 $ 5,168 $ 1,564 $ 87,669 * Included within the C&I – Other column are ACL on leases with a beginning balance of $1.0 million, provision of $165 thousand, charge-offs of $133 thousand and recoveries of $43 thousand. ACL on leases was $1.1 million as of September 30, 2023. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $970 thousand, provision of $224 thousand, charge-offs of $186 thousand and recoveries of $73 thousand. ACL on leases was $1.1 million as of September 30, 2023. Three Months Ended September 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 $ 5,179 $ 28,093 $ 11,065 $ 12,049 $ 16,388 $ 12,783 $ 5,513 $ 1,355 $ 92,425 Provision 1 1,652 (606) (161) (693) 437 (276) (23) 331 Charge-offs — (1,915) — — (562) — (5) (7) (2,489) Recoveries — 176 — — — 43 — 3 222 Balance, ending $ 5,180 $ 28,006 $ 10,459 $ 11,888 $ 15,133 $ 13,263 $ 5,232 $ 1,328 $ 90,489 Nine Months Ended September 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** 673 4,185 (529) 2,328 (2,377) 3,400 559 384 8,623 Charge-offs — (2,790) — (193) (562) — (5) (15) (3,565) Recoveries — 622 6 128 — 43 — 9 808 Balance, ending $ 5,180 $ 28,006 $ 10,459 $ 11,888 $ 15,133 $ 13,263 $ 5,232 $ 1,328 $ 90,489 * Included within the C&I – Other column are ACL on leases with adoption impact of $1.6 million, provision of $91 thousand, charge-offs of $708 thousand and recoveries of $65 thousand. ACL on leases was $1.0 million as of September 30, 2022. ** Provision for the nine months ended September 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 $249 thousand, charge-offs of $931 thousand and recoveries of $173 thousand. ACL on leases was $1.0 million as of September 30, 2022. The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows: As of September 30, 2023 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 $ 3,358 $ 296,230 $ 299,588 $ 944 $ 3,525 $ 4,469 C&I - other* 19,468 1,502,501 1,521,969 2,380 24,374 26,754 22,826 1,798,731 1,821,557 3,324 27,899 31,223 CRE - owner occupied 23,952 586,666 610,618 2,844 6,068 8,912 CRE - non-owner occupied 20,456 935,096 955,552 836 10,845 11,681 Construction and land development 4,453 1,389,601 1,394,054 307 16,535 16,842 Multi-family 9,539 1,147,441 1,156,980 427 11,852 12,279 1-4 family real estate 2,906 537,025 539,931 253 4,915 5,168 Consumer 717 126,898 127,615 72 1,492 1,564 $ 84,849 $ 6,521,458 $ 6,606,307 $ 8,063 $ 79,606 $ 87,669 * Included within the C&I – Other category are leases individually evaluated of $241 thousand with a related allowance for credit losses of $55 thousand and leases collectively evaluated of $34.2 million with a related allowance for credit losses of $1.0 million. As of December 31, 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 $ 3,386 $ 293,483 $ 296,869 $ 961 $ 3,496 $ 4,457 C&I - other* 9,358 1,474,224 1,483,582 1,445 26,308 27,753 12,744 1,767,707 1,780,451 2,406 29,804 32,210 CRE - owner occupied 24,880 604,487 629,367 2,853 7,112 9,965 CRE - non-owner occupied 21,588 941,651 963,239 869 10,880 11,749 Construction and land development 10,394 1,181,667 1,192,061 13 14,249 14,262 Multi-family 1,302 962,501 963,803 395 12,791 13,186 1-4 family real estate 3,177 496,352 499,529 317 4,646 4,963 Consumer 741 109,680 110,421 75 1,296 1,371 $ 74,826 $ 6,064,045 $ 6,138,871 $ 6,928 $ 80,778 $ 87,706 * Included within the C&I – Other category are leases individually evaluated of $135 thousand with a related allowance for credit losses of $24 thousand and leases collectively evaluated of $31.8 million with a related allowance for credit losses of $946 thousand. |
Schedule of loans receivable by collateral type | As of September 30, 2023 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 $ 3,253 $ — $ — $ — $ — $ 105 $ — $ 3,358 C&I - other* 631 — — — 5,533 12,916 388 19,468 3,884 — — — 5,533 13,021 388 22,826 CRE - owner occupied — 23,888 — 64 — — — 23,952 CRE - non-owner occupied — — 20,456 — — — — 20,456 Construction and land development — 150 4,303 — — — — 4,453 Multi-family — — 9,539 — — — — 9,539 1-4 family real estate — — 27 2,879 — — — 2,906 Consumer — — 119 526 — — 72 717 $ 3,884 $ 24,038 $ 34,444 $ 3,469 $ 5,533 $ 13,021 $ 460 $ 84,849 * Included within the C&I – Other category are leases individually evaluated of $241 thousand with primary collateral of equipment. As of December 31, 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 $ 3,281 $ — $ — $ — $ — $ 105 $ — $ 3,386 C&I - other* 1,589 210 — — 108 7,289 162 9,358 4,870 210 — — 108 7,394 162 12,744 CRE - owner occupied — 24,814 — 66 — — — 24,880 CRE - non-owner occupied — — 21,588 — — — — 21,588 Construction and land development — — 10,394 — — — — 10,394 Multi-family — — 1,302 — — — — 1,302 1-4 family real estate — — 33 3,144 — — — 3,177 Consumer — — 120 608 — — 13 741 $ 4,870 $ 25,024 $ 33,437 $ 3,818 $ 108 $ 7,394 $ 175 $ 74,826 * Included within the C&I – Other category are leases individually evaluated of $135 thousand with primary collateral of equipment. |
Schedule of financing receivable credit quality indicators based on internally assigned Risk rating | As of September 30, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2023 2022 2021 2020 2019 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass (Ratings 1 through 5) $ — $ — $ — $ — $ — $ — $ 272,848 $ 272,848 Special Mention (Rating 6) — — — — — — 23,632 23,632 Substandard (Rating 7) — — — — — — 3,108 3,108 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 299,588 $ 299,588 C&I - other Pass (Ratings 1 through 5) $ 372,511 $ 318,783 $ 156,021 $ 85,298 $ 69,736 $ 139,089 $ — $ 1,141,438 Special Mention (Rating 6) 12,149 8,936 4,225 3,757 801 321 — 30,189 Substandard (Rating 7) 101 123 250 — 3,152 5,675 — 9,301 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 384,761 $ 327,842 $ 160,496 $ 89,055 $ 73,689 $ 145,085 $ — $ 1,180,928 CRE - owner occupied Pass (Ratings 1 through 5) $ 71,080 $ 130,033 $ 148,170 $ 112,315 $ 30,875 $ 62,220 $ 11,670 $ 566,363 Special Mention (Rating 6) 5,046 720 8,873 5,820 470 386 871 22,186 Substandard (Rating 7) 1,945 711 1,044 16,045 1,186 1,138 — 22,069 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 78,071 $ 131,464 $ 158,087 $ 134,180 $ 32,531 $ 63,744 $ 12,541 $ 610,618 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 107,668 $ 290,689 $ 199,435 $ 131,797 $ 74,778 $ 84,855 $ 6,412 $ 895,634 Special Mention (Rating 6) 12,623 59 250 17,277 2,385 6,868 — 39,462 Substandard (Rating 7) 3,919 1,331 — 157 14,996 — 53 20,456 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 124,210 $ 292,079 $ 199,685 $ 149,231 $ 92,159 $ 91,723 $ 6,465 $ 955,552 Construction and land development Pass (Ratings 1 through 5) $ 353,940 $ 491,807 $ 286,614 $ 187,894 $ 8,686 $ 8,083 $ 26,905 $ 1,363,929 Special Mention (Rating 6) — — 10,109 — — — — 10,109 Substandard (Rating 7) 413 2,773 1,267 — — — — 4,453 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 354,353 $ 494,580 $ 297,990 $ 187,894 $ 8,686 $ 8,083 $ 26,905 $ 1,378,491 Multi-family Pass (Ratings 1 through 5) $ 246,633 $ 224,208 $ 239,039 $ 230,271 $ 110,450 $ 95,149 $ 96 $ 1,145,846 Special Mention (Rating 6) 1,595 — — — — — — 1,595 Substandard (Rating 7) — — 8,208 1,331 — — — 9,539 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 248,228 $ 224,208 $ 247,247 $ 231,602 $ 110,450 $ 95,149 $ 96 $ 1,156,980 1-4 family real estate Pass (Ratings 1 through 5) $ 55,287 $ 48,557 $ 53,234 $ 26,292 $ 11,171 $ 6,963 $ 3,606 $ 205,110 Special Mention (Rating 6) 29 — — — — — — 29 Substandard (Rating 7) 25 — — — 2 — — 27 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 55,341 $ 48,557 $ 53,234 $ 26,292 $ 11,173 $ 6,963 $ 3,606 $ 205,166 Consumer Pass (Ratings 1 through 5) $ 89 $ 416 $ 373 $ 447 $ 24 $ 727 $ 8,279 $ 10,355 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 43 280 — — — 93 — 416 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 132 $ 696 $ 373 $ 447 $ 24 $ 820 $ 8,279 $ 10,771 Total $ 1,245,096 $ 1,519,426 $ 1,117,112 $ 818,701 $ 328,712 $ 411,567 $ 357,480 $ 5,798,094 As of December 31, 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) $ — $ — $ — $ — $ — $ — $ 275,888 $ 275,888 Special Mention (Rating 6) — — — — — — 17,595 17,595 Substandard (Rating 7) — — — — — — 3,386 3,386 Doubtful (Rating 8) — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 296,869 $ 296,869 C&I - other Pass (Ratings 1 through 5) $ 496,445 $ 279,412 $ 127,803 $ 87,054 $ 59,675 $ 105,184 $ — $ 1,155,573 Special Mention (Rating 6) 9,542 679 901 723 — 308 — 12,153 Substandard (Rating 7) 187 125 661 4,535 310 106 — 5,924 Doubtful (Rating 8) — — — — — — — — Total C&I - other $ 506,174 $ 280,216 $ 129,365 $ 92,312 $ 59,985 $ 105,598 $ — $ 1,173,650 CRE - owner occupied Pass (Ratings 1 through 5) $ 146,211 $ 182,440 $ 142,596 $ 33,571 $ 27,088 $ 45,993 $ 13,460 $ 591,359 Special Mention (Rating 6) 6,190 — 6,379 484 — 1,346 269 14,668 Substandard (Rating 7) 3,750 171 16,336 1,396 1,197 490 — 23,340 Doubtful (Rating 8) — — — — — — — — Total CRE - owner occupied $ 156,151 $ 182,611 $ 165,311 $ 35,451 $ 28,285 $ 47,829 $ 13,729 $ 629,367 CRE - non-owner occupied Pass (Ratings 1 through 5) $ 310,163 $ 221,953 $ 173,478 $ 89,337 $ 56,898 $ 40,923 $ 7,510 $ 900,262 Special Mention (Rating 6) 2,824 882 18,920 — 12,917 6,198 — 41,741 Substandard (Rating 7) 5,651 — 157 15,217 — — 211 21,236 Doubtful (Rating 8) — — — — — — — — Total CRE - non-owner occupied $ 318,638 $ 222,835 $ 192,555 $ 104,554 $ 69,815 $ 47,121 $ 7,721 $ 963,239 Construction and land development Pass (Ratings 1 through 5) $ 479,016 $ 330,434 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,141,782 Special Mention (Rating 6) 1,465 9,200 — — — — — 10,665 Substandard (Rating 7) 132 10,262 — — — — — 10,394 Doubtful (Rating 8) — — — — — — — — Total Construction and land development $ 480,613 $ 349,896 $ 240,778 $ 31,607 $ 30,300 $ — $ 29,647 $ 1,162,841 Multi-family Pass (Ratings 1 through 5) $ 237,839 $ 254,056 $ 224,920 $ 134,378 $ 99,695 $ 7,875 $ 2,227 $ 960,990 Special Mention (Rating 6) — 44 — 1,467 — — — 1,511 Substandard (Rating 7) — — 1,302 — — — — 1,302 Doubtful (Rating 8) — — — — — — — — Total Multi-family $ 237,839 $ 254,100 $ 226,222 $ 135,845 $ 99,695 $ 7,875 $ 2,227 $ 963,803 1-4 family real estate Pass (Ratings 1 through 5) $ 61,953 $ 57,731 $ 33,737 $ 12,687 $ 5,813 $ 6,002 $ 5,855 $ 183,778 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 28 — — 5 — — — 33 Doubtful (Rating 8) — — — — — — — — Total 1-4 family real estate $ 61,981 $ 57,731 $ 33,737 $ 12,692 $ 5,813 $ 6,002 $ 5,855 $ 183,811 Consumer Pass (Ratings 1 through 5) $ 511 $ 801 $ 493 $ 122 $ 254 $ 621 $ 10,226 $ 13,028 Special Mention (Rating 6) — — — — — — — — Substandard (Rating 7) 282 — 12 — 112 — — 406 Doubtful (Rating 8) — — — — — — — — Total Consumer $ 793 $ 801 $ 505 $ 122 $ 366 $ 621 $ 10,226 $ 13,434 Total $ 1,762,189 $ 1,348,190 $ 988,473 $ 412,583 $ 294,259 $ 215,046 $ 366,274 $ 5,387,014 |
Schedule of financing receivable credit quality indicators based on delinquency status | As of September 30, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2023 2022 2021 2020 2019 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 113,677 $ 116,539 $ 47,024 $ 15,549 $ 3,665 $ 326 $ — $ 296,780 Nonperforming 616 6,437 2,442 293 67 5 — 9,860 Total C&I - other $ 114,293 $ 122,976 $ 49,466 $ 15,842 $ 3,732 $ 331 $ — $ 306,640 Construction and land development Performing $ 13,912 $ 1,306 $ 274 $ 10 $ 2 $ 59 $ — $ 15,563 Nonperforming — — — — — — — — Total Construction and land development $ 13,912 $ 1,306 $ 274 $ 10 $ 2 $ 59 $ — $ 15,563 Direct financing leases Performing $ 12,138 $ 12,548 $ 3,706 $ 3,248 $ 2,075 $ 445 $ — $ 34,160 Nonperforming — 16 22 187 16 — — 241 Total Direct financing leases $ 12,138 $ 12,564 $ 3,728 $ 3,435 $ 2,091 $ 445 $ — $ 34,401 1-4 family real estate Performing $ 56,490 $ 58,926 $ 80,455 $ 69,330 $ 15,705 $ 51,527 $ 80 $ 332,513 Nonperforming — 219 642 418 327 646 — 2,252 Total 1-4 family real estate $ 56,490 $ 59,145 $ 81,097 $ 69,748 $ 16,032 $ 52,173 $ 80 $ 334,765 Consumer Performing $ 15,252 $ 10,104 $ 2,562 $ 2,973 $ 710 $ 1,310 $ 83,653 $ 116,564 Nonperforming — 5 21 13 — 187 54 280 Total Consumer $ 15,252 $ 10,109 $ 2,583 $ 2,986 $ 710 $ 1,497 $ 83,707 $ 116,844 Total $ 212,085 $ 206,100 $ 137,148 $ 92,021 $ 22,567 $ 54,505 $ 83,787 $ 808,213 * 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, 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 $ 170,180 $ 69,694 $ 25,540 $ 8,066 $ 1,804 $ 79 $ — $ 275,363 Nonperforming 1,110 1,320 155 95 — — — 2,680 Total C&I - other $ 171,290 $ 71,014 $ 25,695 $ 8,161 $ 1,804 $ 79 $ — $ 278,043 Direct financing leases Performing $ 14,578 $ 5,172 $ 5,700 $ 4,398 $ 1,536 $ 370 $ — $ 31,754 Nonperforming — 32 88 7 8 — — 135 Total Direct financing leases $ 14,578 $ 5,204 $ 5,788 $ 4,405 $ 1,544 $ 370 $ — $ 31,889 Construction and land development Performing $ 28,785 $ 360 $ 10 $ 3 $ 62 $ — $ — $ 29,220 Nonperforming — — — — — — — — Total Construction and land development $ 28,785 $ 360 $ 10 $ 3 $ 62 $ — $ — $ 29,220 1-4 family real estate Performing $ 69,094 $ 92,762 $ 75,153 $ 17,089 $ 11,381 $ 48,136 $ 90 $ 313,705 Nonperforming 267 524 487 279 8 448 — 2,013 Total 1-4 family real estate $ 69,361 $ 93,286 $ 75,640 $ 17,368 $ 11,389 $ 48,584 $ 90 $ 315,718 Consumer Performing $ 14,685 $ 3,844 $ 3,717 $ 1,123 $ 1,140 $ 1,325 $ 70,974 $ 96,808 Nonperforming 7 — — — 3 59 110 179 Total Consumer $ 14,692 $ 3,844 $ 3,717 $ 1,123 $ 1,143 $ 1,384 $ 71,084 $ 96,987 Total $ 298,706 $ 173,708 $ 110,850 $ 31,060 $ 15,942 $ 50,417 $ 71,174 $ 751,857 * 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. |
Schedule of Gross Charge Offs of loans and Leases by Class of Receivable and Year of Origination | Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Gross Charge-off by Origination Year Gross Charge-off by Origination Year Classes of Loans/Leases 2023 2022 2021 2020 2019 Prior Total 2023 2022 2021 2020 2019 Prior Total (dollars in thousands) (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — C&I - other 41 1,130 192 204 5 29 1,601 41 2,990 1,063 1,053 238 138 5,523 CRE - owner occupied — — — — — 14 14 — — 208 — — 14 222 CRE - non-owner occupied — — — — — — — — — — — — — — Construction and land development — 38 — — — — 38 — 50 — — — — 50 Multi-family — — — — — — — — — — — — — — Direct financing leases — 34 55 41 3 — 133 — 71 55 41 18 1 186 1-4 family real estate — — — — — — — — — — — — — — Consumer — 22 7 1 — — 30 — 41 10 1 5 — 57 $ 41 $ 1,224 $ 254 $ 246 $ 8 $ 43 $ 1,816 $ 41 $ 3,152 $ 1,336 $ 1,095 $ 261 $ 153 $ 6,038 |
Schedule of loans and leases modified to borrowers experiencing financial difficulty by class of receivable and type of concession granted | The following table shows the amortized cost basis of the loans and leases modified to borrowers experiencing financial difficulty by class of receivable and type of concession granted for the three and nine months ended September 30, 2023. For the three months ended For the nine months ended September 30, 2023 September 30, 2023 Amortized Cost Amortized Cost Payment % of Class of Payment % of Class of Classes of Loans/Leases Delay Receivable Delay Receivable (dollars in thousands) Direct Financing Leases $ 90 — % $ 325 1 % |
Unfunded Loan Commitment | |
Notes Tables | |
Financing receivable credit quality indicators | Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 (dollars in thousands) Balance, beginning $ 6,326 $ 6,878 $ 5,552 $ 6,886 Provisions (credited) to expense 546 (331) 1,320 (339) Balance, ending $ 6,872 $ 6,547 $ 6,872 $ 6,547 |
Note 4 - DERIVATIVES AND HEDG_2
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Summary of derivatives | September 30, 2023 December 31, 2022 (dollars in thousands) Assets: Hedged Derivatives Cash Flow Hedges Interest rate caps $ 5,196 $ 8,327 Interest rate swaps 3,334 477 Fair Value Hedges Interest rate swaps 3,977 — Unhedged Derivatives Interest rate caps 1,533 2,213 Interest rate swaps 277,255 166,614 $ 291,295 $ 177,631 Liabilities: Hedged Derivatives Cash Flow Hedges Interest rate swaps (42,095) (33,824) Interest rate collars (870) (263) Unhedged Derivatives Interest rate swaps (277,255) (166,614) $ (320,220) $ (200,701) |
Summary of impact of AOCI | Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 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 $ 108,568 $ 53,313 $ 79,267 $ 18,498 The effects of cash flow hedging: Gain on interest rate caps on deposits - (2,066) - (263) Gain on interest rate swaps on junior subordinated debentures - (328) - 73 Loss on interest rate swaps and collars on loans (2,495) - (426) - The effects of fair value hedging: Gain on interest rate swaps on loans 828 - - - Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 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 $ 301,162 $ 135,892 $ 198,534 $ 32,632 The effects of cash flow hedging: Gain on interest rate caps on deposits - (5,522) - 199 Gain on interest rate swaps on junior subordinated debentures - (830) - 536 Loss on interest rate swaps and collars on loans (6,757) - 715 - The effects of fair value hedging: Gain on interest rate swaps on loans 828 - - - |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | September 30, 2023 December 31, 2022 (dollars in thousands) Cash $ 1,275 $ 1,272 Municipal securities 3,945 8,227 Residential mortgage-backed and related securities 5,778 29,257 $ 10,998 $ 38,756 |
Interest rate caps | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate September 30, 2023 December 31, 2022 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Derivatives - Assets $ 25,000 1.75 % $ - $ (50) Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.75 % 157 714 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % 474 1,566 Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % 237 783 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 1,010 1,264 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 2,212 2,700 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 1,106 1,350 $ 225,000 $ 5,196 $ 8,327 |
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 September 30, 2023 December 31, 2022 (dollars in thousands) 1/1/2020 1/3/2023 Derivatives - Assets $ 25,000 1.90 % $ - $ 3 2/1/2020 2/1/2024 Derivatives - Assets 25,000 1.90 % 310 822 3/1/2020 3/3/2025 Derivatives - Assets 25,000 1.90 % 1,223 1,388 $ 75,000 $ 1,533 $ 2,213 |
Interest rate swaps | |
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 September 30, 2023 December 31, 2022 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Assets $ 10,000 8.51 % 5.85 % $ 710 $ 464 QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Assets 8,000 8.51 % 5.85 % 568 372 QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Assets 10,000 7.12 % 4.54 % 691 459 Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Assets 3,000 7.83 % 5.17 % 212 140 Community National Statutory Trust III 9/15/2018 9/15/2028 Derivatives - Assets 3,500 7.42 % 4.75 % 247 163 Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Assets 4,500 7.42 % 4.75 % 318 209 Guaranty Statutory Trust II* 5/23/2019 2/23/2026 Derivatives - Assets 10,310 7.09 % 4.09 % 588 477 $ 49,310 $ 3,334 $ 2,284 * Acquired on 4/1/2022 with GFED acquisition. Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate September 30, 2023 December 31, 2022 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 5.31 % $ (6,776) $ (5,646) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 5.31 % (9,680) (8,066) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 5.31 % (7,755) (6,464) Loans 10/1/2022 7/1/2031 Derivatives - Liabilities 25,000 1.30 % 5.31 % (4,877) (4,018) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 5.31 % (1,301) (1,144) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.31 % (4,335) (3,812) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 5.31 % (3,035) (2,669) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.31 % (4,336) (3,812) $ 300,000 $ (42,095) $ (35,631) Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate September 30, 2023 December 31, 2022 (dollars in thousands) Loans 7/12/2023 2/1/2026 Derivatives - Assets $ 25,000 5.31 % 4.38 % $ 204 $ N/A Loans 7/12/2023 8/1/2026 Derivatives - Assets 30,000 5.31 % 4.21 % 304 N/A Loans 7/12/2023 2/1/2027 Derivatives - Assets 32,500 5.31 % 4.08 % 409 N/A Loans 7/12/2023 8/1/2027 Derivatives - Assets 32,500 5.31 % 3.98 % 488 N/A Loans 7/12/2023 2/1/2028 Derivatives - Assets 30,000 5.31 % 3.90 % 532 N/A Loans 7/12/2023 2/1/2026 Derivatives - Assets 15,000 5.31 % 4.38 % 123 N/A Loans 7/12/2023 8/1/2026 Derivatives - Assets 15,000 5.31 % 4.21 % 152 N/A Loans 7/12/2023 2/1/2027 Derivatives - Assets 15,000 5.31 % 4.08 % 189 N/A Loans 7/12/2023 8/1/2027 Derivatives - Assets 15,000 5.31 % 3.98 % 225 N/A Loans 7/12/2023 2/1/2028 Derivatives - Assets 15,000 5.31 % 3.90 % 267 N/A Loans 7/12/2023 8/1/2025 Derivatives - Assets 15,000 5.31 % 4.60 % 90 N/A Loans 7/12/2023 2/1/2026 Derivatives - Assets 20,000 5.31 % 4.38 % 163 N/A Loans 7/12/2023 8/1/2026 Derivatives - Assets 20,000 5.31 % 4.21 % 203 N/A Loans 7/12/2023 2/1/2027 Derivatives - Assets 20,000 5.31 % 4.08 % 252 N/A Loans 7/12/2023 8/1/2027 Derivatives - Assets 25,000 5.31 % 3.98 % 376 N/A $ 325,000 $ 3,977 $ N/A |
Changes in the fair value of the underlying derivative contracts | September 30, 2023 December 31, 2022 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 2,967,392 $ 277,255 $ 2,528,949 $ 166,614 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 2,967,392 $ 277,255 $ 2,528,949 $ 166,614 |
Interest rate collars | |
Notes Tables | |
Schedule of interest rate caps | Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Cap Strike Rate Floor Strike Rate September 30, 2023 December 31, 2022 Loans 10/1/2022 10/1/2026 Derivatives - Liabilities $ 50,000 4.40 % 2.44 % $ (870) $ (263) |
Note 5 - INCOME TAXES (Tables)
Note 5 - INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Reconciliation of the expected federal income tax expense | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 5,661 21.0 % $ 7,165 21.0 % $ 18,751 21.0 % $ 16,130 21.0 % Tax exempt income, net (3,705) (13.7) (3,003) (8.8) (10,103) (11.3) (7,701) (10.0) Bank-owned life insurance (376) (1.4) (127) (0.4) (700) (0.8) (273) (0.4) State income taxes, net of federal benefit, current year 955 3.5 1,616 4.7 3,383 3.8 3,889 5.1 Provision adjustment from accounting method change — — — — — — (1,181) (1.5) Tax credits (202) (0.7) (359) (1.1) (411) (0.5) (890) (1.2) Income from tax credit equity investments (449) (1.7) (337) (1.0) (1,340) (1.5) (939) (1.2) Acquisition costs — — 78 0.2 — — 450 0.6 Excess tax benefit on stock options exercised and restricted stock awards vested (7) (0.0) (46) (0.1) (451) (0.5) (520) (0.7) Other (37) (0.2) (163) (0.4) (540) (0.6) (316) (0.4) Federal and state income tax expense $ 1,840 6.8 % $ 4,824 14.1 % $ 8,589 9.6 % $ 8,649 11.3 % |
Note 6 - EARNINGS PER SHARE (Ta
Note 6 - EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
Schedule of computation of earnings per share on a basic and diluted basis | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 (dollars in thousands, except share data) Net income $ 25,121 $ 29,294 $ 80,703 $ 68,160 Basic EPS $ 1.50 $ 1.73 $ 4.82 $ 4.25 Diluted EPS $ 1.49 $ 1.71 $ 4.79 $ 4.20 Weighted average common shares outstanding 16,717,303 16,900,968 16,731,847 16,030,371 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 130,648 209,723 131,356 213,550 Weighted average common and common equivalent shares outstanding 16,847,951 17,110,691 16,863,203 16,243,921 |
Note 7 - FAIR VALUE (Tables)
Note 7 - FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, 2023: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,002 $ — $ 16,002 $ — Residential mortgage-backed and related securities 57,946 — 57,946 — Municipal securities 149,772 — 149,772 — Asset-backed securities 16,326 — 16,326 — Other securities 41,233 — 41,233 — Derivatives 291,295 — 291,295 — Total assets measured at fair value $ 572,574 $ — $ 572,574 $ — Derivatives $ 320,220 $ — $ 320,220 $ — Total liabilities measured at fair value $ 320,220 $ — $ 320,220 $ — December 31, 2022: Securities AFS: U.S. govt. sponsored agency securities $ 16,981 $ — $ 16,981 $ — Residential mortgage-backed and related securities 66,215 — 66,215 — Municipal securities 193,178 — 193,178 — Asset-backed securities 18,728 — 18,728 — Other securities 45,858 — 45,858 — Derivatives 177,631 — 177,631 — Total assets measured at fair value $ 518,591 $ — $ 518,591 $ — Derivatives $ 200,701 $ — $ 200,701 $ — Total liabilities measured at fair value $ 200,701 $ — $ 200,701 $ — 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) September 30, 2023: Loans/leases evaluated individually $ 35,197 $ — $ — $ 35,197 Loans receivable held for sale in preparation for securitization 277,995 — — 277,995 OREO 120 — — 120 $ 313,312 $ — $ — $ 313,312 December 31, 2022: Loans/leases evaluated individually $ 30,765 $ — $ — $ 30,765 OREO 144 — — 144 $ 30,909 $ — $ — $ 30,909 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value September 30, December 31, 2023 2022 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 35,197 $ 30,765 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % Loans receivable held for sale in preparation for securitization 277,995 — Market prices for similar loans Market price adjustments n/a OREO 130 144 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % |
Schedule of assets and liabilities measured at fair value | Fair Value As of September 30, 2023 As of December 31, 2022 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 104,265 $ 104,265 $ 59,723 $ 59,723 Federal funds sold Level 2 20,300 20,300 56,910 56,910 Interest-bearing deposits at financial institutions Level 2 60,350 60,350 67,360 67,360 Investment securities: HTM Level 2 615,115 524,819 587,142 535,636 AFS Level 2 281,279 281,279 340,960 340,960 Loans/leases receivable, net Level 3 310,585 313,192 28,486 30,765 Loans/leases receivable, net Level 2 6,208,053 5,907,226 6,022,679 5,896,443 Derivatives Level 2 291,295 291,295 177,631 177,631 Deposits: Nonmaturity deposits Level 2 5,522,283 5,522,283 5,199,633 5,199,633 Time deposits Level 2 972,569 966,026 784,584 766,294 Short-term borrowings Level 2 470 470 129,630 129,630 FHLB advances Level 2 430,000 429,450 415,000 415,000 Subordinated notes Level 2 232,958 249,002 232,662 250,613 Junior subordinated debentures Level 2 48,698 40,204 48,602 41,545 Derivatives Level 2 320,220 320,220 200,701 200,701 |
Note 8 - BUSINESS SEGMENT INF_2
Note 8 - BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 Total revenue $ 38,165 $ 43,592 $ 19,225 $ 34,498 $ 31,878 $ (32,197) $ 135,161 Net interest income 17,198 16,852 11,136 13,743 (3,958) 284 55,255 Provision for credit losses 2,686 503 275 342 — — 3,806 Net income (loss) from continuing operations 5,856 13,175 4,740 6,801 25,641 (31,092) 25,121 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 950 1,579 12,008 — — 14,537 Total assets 2,433,084 2,442,263 1,417,249 2,242,638 1,146,137 (1,141,314) 8,540,057 Three Months Ended September 30, 2022 Total revenue $ 26,583 $ 34,157 $ 14,127 $ 25,523 $ 36,283 $ (36,311) $ 100,362 Net interest income 18,117 17,160 10,183 18,196 (3,242) 355 60,769 Provision for loan/lease losses 554 (35) (269) (250) — — — Net income (loss) from continuing operations 7,758 14,475 4,106 9,196 29,542 (35,783) 29,294 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,344 2,184 14,018 — — 17,546 Total assets 2,218,166 2,108,614 1,270,426 2,107,407 1,045,774 (1,020,338) 7,730,049 Nine Months Ended September 30, 2023 Total revenue $ 106,664 $ 138,018 $ 53,126 $ 90,443 $ 101,472 $ (103,606) $ 386,117 Net interest income 50,590 50,254 32,683 42,716 (11,911) 938 165,270 Provision for loan/lease losses 7,879 2,499 965 (3) — — 11,340 Net income (loss) from continuing operations 17,710 48,928 14,113 17,344 82,266 (99,658) 80,703 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 950 1,579 12,008 — — 14,537 Total assets 2,433,084 2,442,263 1,417,249 2,242,638 1,146,137 (1,141,314) 8,540,057 Nine Months Ended September 30, 2022 Total revenue $ 72,785 $ 91,083 $ 37,534 $ 57,036 $ 91,989 $ (92,383) $ 258,044 Net interest income 53,971 46,576 29,365 42,789 (7,845) 1,046 165,902 Provision for loan/lease losses (88) (971) (554) 9,897 — — 8,284 Net income (loss) from continuing operations 26,153 38,860 11,606 13,327 68,982 (90,768) 68,160 Goodwill 3,223 14,980 9,888 109,516 — — 137,607 Intangibles — 1,344 2,184 14,018 — — 17,546 Total assets 2,218,166 2,108,614 1,270,426 2,107,407 1,045,774 (1,020,338) 7,730,049 |
Note 9 - REGULATORY CAPITAL R_2
Note 9 - REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023: Company: Total risk-based capital $ 1,135,262 14.54 % $ 624,805 > 8.00 % $ 820,057 > 10.50 % $ 781,007 > 10.00 % Tier 1 risk-based capital 807,582 10.34 468,604 > 6.00 663,856 > 8.50 624,805 > 8.00 Tier 1 leverage 807,582 9.92 325,480 > 4.00 325,480 > 4.00 406,850 > 5.00 Common equity Tier 1 758,884 9.72 351,453 > 4.50 546,705 > 7.00 507,654 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 295,319 12.90 % $ 183,095 > 8.00 % $ 240,313 > 10.50 % $ 228,869 > 10.00 % Tier 1 risk-based capital 266,688 11.65 137,321 > 6.00 194,539 > 8.50 183,095 > 8.00 Tier 1 leverage 266,688 11.10 96,111 > 4.00 96,111 > 4.00 120,139 > 5.00 Common equity Tier 1 266,688 11.65 102,991 > 4.50 160,208 > 7.00 148,765 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 358,150 17.05 % $ 168,021 > 8.00 % $ 220,527 > 10.50 % $ 210,026 > 10.00 % Tier 1 risk-based capital 331,423 15.78 126,016 > 6.00 178,522 > 8.50 168,021 > 8.00 Tier 1 leverage 331,423 14.60 90,799 > 4.00 90,799 > 4.00 113,498 > 5.00 Common equity Tier 1 331,423 15.78 94,512 > 4.50 147,018 > 7.00 136,517 > 6.50 Community State Bank: Total risk-based capital $ 177,296 13.57 % $ 104,554 > 8.00 % $ 137,227 > 10.50 % $ 130,693 > 10.00 % Tier 1 risk-based capital 152,596 11.68 78,416 > 6.00 111,089 > 8.50 104,554 > 8.00 Tier 1 leverage 152,596 11.24 54,303 > 4.00 54,303 > 4.00 67,879 > 5.00 Common equity Tier 1 152,596 11.68 58,812 > 4.50 91,485 > 7.00 84,950 > 6.50 Guaranty Bank: Total risk-based capital $ 258,732 12.53 % $ 165,160 > 8.00 % $ 216,772 > 10.50 % $ 206,450 > 10.00 % Tier 1 risk-based capital 236,071 11.43 123,870 > 6.00 175,482 > 8.50 165,160 > 8.00 Tier 1 leverage 236,071 11.22 84,130 > 4.00 84,130 > 4.00 105,162 > 5.00 Common equity Tier 1 236,071 11.43 92,902 > 4.50 144,515 > 7.00 134,192 > 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, 2022: Company: Total risk-based capital $ 1,055,177 14.28 % $ 591,132 > 8.00 % $ 775,861 > 10.50 % $ 738,915 > 10.00 % Tier 1 risk-based capital 734,977 9.95 443,349 > 6.00 628,078 > 8.50 591,132 > 8.00 Tier 1 leverage 734,977 9.61 305,959 > 4.00 305,959 > 4.00 382,449 > 5.00 Common equity Tier 1 686,375 9.29 332,512 > 4.50 517,241 > 7.00 480,295 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 275,337 13.07 % $ 168,588 > 8.00 % $ 221,272 > 10.50 % $ 210,735 > 10.00 % Tier 1 risk-based capital 248,978 11.81 126,441 > 6.00 179,125 > 8.50 168,588 > 8.00 Tier 1 leverage 248,978 11.01 90,419 > 4.00 90,419 > 4.00 133,023 > 5.00 Common equity Tier 1 248,978 11.81 94,831 > 4.50 147,514 > 7.00 136,978 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 308,153 14.84 % $ 166,168 > 8.00 % $ 218,096 > 10.50 % $ 207,711 > 10.00 % Tier 1 risk-based capital 282,258 13.59 124,626 > 6.00 176,554 > 8.50 166,168 > 8.00 Tier 1 leverage 282,258 13.17 85,707 > 4.00 85,707 > 4.00 107,134 > 5.00 Common equity Tier 1 282,258 13.59 93,470 > 4.50 145,397 > 7.00 135,012 > 6.50 Community State Bank: Total risk-based capital $ 142,974 12.04 % $ 94,981 > 8.00 % $ 124,662 > 10.50 % $ 118,726 > 10.00 % Tier 1 risk-based capital 128,130 10.79 71,236 > 6.00 100,917 > 8.50 94,981 > 8.00 Tier 1 leverage 128,130 10.09 50,799 > 4.00 50,799 > 4.00 63,499 > 5.00 Common equity Tier 1 128,130 10.79 53,427 > 4.50 83,108 > 7.00 77,172 > 6.50 Guaranty Bank: Total risk-based capital $ 243,106 12.24 % $ 158,903 > 8.00 % $ 208,560 > 10.50 % $ 198,629 > 10.00 % Tier 1 risk-based capital 218,647 11.01 119,177 > 6.00 168,834 > 8.50 158,903 > 8.00 Tier 1 leverage 218,647 10.90 80,229 > 4.00 80,229 > 4.00 100,286 > 5.00 Common equity Tier 1 218,647 11.01 89,383 > 4.50 139,040 > 7.00 129,109 > 6.50 |
Note 1 - SUMMARY OF SIGNIFICA_3
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2023 subsidiary |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of subsidiaries commercial banks | 4 |
Note 2 - INVESTMENT SECURITIE_2
Note 2 - INVESTMENT SECURITIES (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) item issuer security state | Dec. 31, 2022 USD ($) state issuer | |
Number of securities | security | 644 | |
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | item | 621 | |
Aggregate losses of securities (as a percent) | 17.10% | |
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | item | 480 | |
Gain on sale | $ 56 | |
Number Of Charters Owning Municipal Securities | item | 4 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | $ 989 | |
General Obligation Bonds | ||
Number of issuers | issuer | 81 | 118 |
Other investments | $ 80,400 | $ 110,600 |
Number of states holding investments | state | 18 | 22 |
General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million | ||
Number of states holding investments | 7 | 7 |
General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million | Minimum | ||
Other investments | $ 5,000 | $ 5,000 |
Revenue Bonds | ||
Number of issuers | issuer | 166 | 181 |
Other investments | $ 593,200 | $ 617,200 |
Number of states holding investments | state | 30 | 29 |
Revenue Bonds | Aggregate Fair Value Exceeding 5 Million | ||
Number of states holding investments | state | 14 | 12 |
Revenue Bonds | Aggregate Fair Value Exceeding 5 Million | Minimum | ||
Other investments | $ 5,000 | $ 5,000 |
Revenue Bonds | Aggregate Book Or Market Value Exceeded 5% of The Company Equity [Member] | ||
Number of issuers | issuer | 2 | 2 |
Percentage threshold | 5% | 5% |
Other securities | ||
Debt Securities, Available-for-Sale, Allowance for Credit Loss | $ 989 |
Note 2 - INVESTMENT SECURITIE_3
Note 2 - INVESTMENT SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Securities HTM: | ||||||
Securities HTM, Amortized cost | $ 615,295 | $ 587,322 | ||||
Securities HTM, Allowance for Credit (Losses) | (180) | (180) | ||||
Securities HTM, Gross Unrealized Gains | 2,448 | 5,292 | ||||
Securities HTM, Gross Unrealized (Losses) | (92,744) | (56,798) | ||||
Securities HTM, Fair Value | 524,819 | 535,636 | ||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 355,638 | 400,511 | ||||
Securities AFS, Allowance for Credit (Losses) | (989) | |||||
Securities AFS, Gross Unrealized Gains | 159 | 160 | ||||
Securities AFS, Gross Unrealized (Losses) | (73,529) | (59,711) | ||||
Securities AFS, Fair Value | 281,279 | 340,960 | ||||
U.S. treasuries and govt. sponsored agency securities | ||||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 19,130 | 19,745 | ||||
Securities AFS, Gross Unrealized Gains | 13 | 19 | ||||
Securities AFS, Gross Unrealized (Losses) | (3,141) | (2,783) | ||||
Securities AFS, Fair Value | 16,002 | 16,981 | ||||
Residential mortgage-backed and related securities | ||||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 66,433 | 73,438 | ||||
Securities AFS, Gross Unrealized (Losses) | (8,487) | (7,223) | ||||
Securities AFS, Fair Value | 57,946 | 66,215 | ||||
Municipal securities. | ||||||
Securities HTM: | ||||||
Securities HTM, Amortized cost | 614,245 | 586,272 | ||||
Securities HTM, Allowance for Credit (Losses) | (180) | $ (180) | (180) | $ (198) | $ (198) | $ (198) |
Securities HTM, Gross Unrealized Gains | 2,448 | 5,292 | ||||
Securities HTM, Gross Unrealized (Losses) | (92,718) | (56,798) | ||||
Securities HTM, Fair Value | 523,795 | 534,586 | ||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 207,318 | 239,812 | ||||
Securities AFS, Gross Unrealized Gains | 66 | |||||
Securities AFS, Gross Unrealized (Losses) | (57,546) | (46,700) | ||||
Securities AFS, Fair Value | 149,772 | 193,178 | ||||
Asset-backed securities | ||||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 16,226 | 18,885 | ||||
Securities AFS, Gross Unrealized Gains | 144 | 48 | ||||
Securities AFS, Gross Unrealized (Losses) | (44) | (205) | ||||
Securities AFS, Fair Value | 16,326 | 18,728 | ||||
Corporate Debt Securities [Member] | ||||||
Securities AFS: | ||||||
Securities AFS, Allowance for Credit (Losses) | (989) | $ (989) | ||||
Other securities | ||||||
Securities HTM: | ||||||
Securities HTM, Amortized cost | 1,050 | 1,050 | ||||
Securities HTM, Gross Unrealized (Losses) | (26) | |||||
Securities HTM, Fair Value | 1,024 | 1,050 | ||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 46,531 | 48,631 | ||||
Securities AFS, Allowance for Credit (Losses) | (989) | |||||
Securities AFS, Gross Unrealized Gains | 2 | 27 | ||||
Securities AFS, Gross Unrealized (Losses) | (4,311) | (2,800) | ||||
Securities AFS, Fair Value | $ 41,233 | $ 45,858 |
Note 2 - INVESTMENT SECURITIE_4
Note 2 - INVESTMENT SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | $ 235,836 | |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (20,777) | |
Securities HTM, 12 Months or More, Fair Value | 237,690 | |
Securities HTM, 12 Months or More, Gross Unrealized Losses | (71,967) | |
Securities HTM, Total, Fair Value | 473,526 | |
Securities HTM, Total, Gross Unrealized Losses | (92,744) | |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 6,616 | $ 280,669 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (467) | (48,923) |
Securities AFS, 12 Months or More, Fair Value | 264,116 | 42,212 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (73,062) | (10,788) |
Securities AFS, Total, Fair Value | 270,732 | 322,881 |
Securities AFS, Total, Gross Unrealized Losses | (73,529) | (59,711) |
Municipal securities. | ||
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | 235,313 | 347,651 |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (20,751) | (56,798) |
Securities HTM, 12 Months or More, Fair Value | 237,690 | |
Securities HTM, 12 Months or More, Gross Unrealized Losses | (71,967) | |
Securities HTM, Total, Fair Value | 473,003 | 347,651 |
Securities HTM, Total, Gross Unrealized Losses | (92,718) | (56,798) |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 1,067 | 178,172 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (38) | (42,661) |
Securities AFS, 12 Months or More, Fair Value | 148,159 | 9,809 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (57,508) | (4,039) |
Securities AFS, Total, Fair Value | 149,226 | 187,981 |
Securities AFS, Total, Gross Unrealized Losses | (57,546) | (46,700) |
U.S. treasuries and govt. sponsored agency securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 1,649 | 5,138 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (1) | (326) |
Securities AFS, 12 Months or More, Fair Value | 13,377 | 10,591 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (3,140) | (2,457) |
Securities AFS, Total, Fair Value | 15,026 | 15,729 |
Securities AFS, Total, Gross Unrealized Losses | (3,141) | (2,783) |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 77 | 48,469 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (1) | (3,327) |
Securities AFS, 12 Months or More, Fair Value | 57,869 | 17,690 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (8,486) | (3,896) |
Securities AFS, Total, Fair Value | 57,946 | 66,159 |
Securities AFS, Total, Gross Unrealized Losses | (8,487) | (7,223) |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 13,684 | |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (205) | |
Securities AFS, 12 Months or More, Fair Value | 10,521 | |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (44) | |
Securities AFS, Total, Fair Value | 10,521 | 13,684 |
Securities AFS, Total, Gross Unrealized Losses | (44) | (205) |
Other securities | ||
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | 523 | |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (26) | |
Securities HTM, Total, Fair Value | 523 | |
Securities HTM, Total, Gross Unrealized Losses | (26) | |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 3,823 | 35,206 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (427) | (2,404) |
Securities AFS, 12 Months or More, Fair Value | 34,190 | 4,122 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (3,884) | (396) |
Securities AFS, Total, Fair Value | 38,013 | 39,328 |
Securities AFS, Total, Gross Unrealized Losses | $ (4,311) | $ (2,800) |
Note 2 - INVESTMENT SECURITIE_5
Note 2 - INVESTMENT SECURITIES - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2023 | Sep. 30, 2023 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 180 | $ 180 |
Balance, ending | 180 | |
Balance, ending | 989 | |
Municipal securities. | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 180 | 180 |
Balance, ending | 180 | |
Other securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Balance, ending | 989 | |
Corporate securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Provision for credit loss expense | $ 989 | 989 |
Balance, ending | $ 989 |
Note 2 - INVESTMENT SECURITIE_6
Note 2 - INVESTMENT SECURITIES - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INVESTMENT SECURITIES | ||||
Proceeds from sales of securities | $ 0 | $ 0 | $ 30,568 | $ 111,375 |
Gross gains from sales of securities | 56 | |||
Gross losses from sales of securities | $ (507) |
Note 2 - INVESTMENT SECURITIE_7
Note 2 - INVESTMENT SECURITIES - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities HTM: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 1,907 | |
Securities held to maturity, due in one year or less, fair value | 1,882 | |
Securities held to maturity, due after one year through five years, amortized cost | 27,159 | |
Securities held to maturity, due after one year through five years, fair value | 27,700 | |
Securities held to maturity, due after five years, amortized cost | 586,229 | |
Securities held to maturity, due after five years, fair value | 495,237 | |
Securities HTM, Amortized cost | 615,295 | $ 587,322 |
Securities held to maturity, fair value | 524,819 | 535,636 |
Securities AFS: | ||
Securities available for sale, due in one year or less, amortized cost | 3,160 | |
Securities available for sale, Due in one year or less, fair value | 3,146 | |
Securities available for sale, due after one year through five years, amortized cost | 14,338 | |
Securities available for sale, Due after one year through five years, fair value | 12,239 | |
Securities available for sale, due after five years, amortized cost | 255,481 | |
Securities available for sale, due after five years, fair value | 191,622 | |
Securities available for sale, single maturity, amortized cost | 272,979 | |
Securities available for sale, single maturity, fair value | 207,007 | |
Securities AFS, Amortized Cost | 355,638 | 400,511 |
Available-for-sale Securities, Debt Securities, Total | 281,279 | 340,960 |
Callable Securities [Member] | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 251,324 | |
Available-for-sale Securities, Debt Securities, Total | 188,512 | |
Municipal securities. | ||
Securities HTM: | ||
Securities HTM, Amortized cost | 614,245 | 586,272 |
Securities held to maturity, fair value | 523,795 | 534,586 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 207,318 | 239,812 |
Available-for-sale Securities, Debt Securities, Total | 149,772 | 193,178 |
Municipal securities. | Callable Securities [Member] | ||
Securities HTM: | ||
Securities held to maturity, callable, amortized cost | 230,493 | |
Securities held to maturity, callable, fair value | 194,222 | |
Securities AFS: | ||
Securities available for sale, callable, amortized cost | 205,747 | |
Securities available for sale, callable, fair value | 148,235 | |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 16,226 | 18,885 |
Available-for-sale Securities, Debt Securities, Total | 16,326 | 18,728 |
Securities available for sale, callable, amortized cost | 16,226 | |
Securities available for sale, callable, fair value | 16,326 | |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 66,433 | 73,438 |
Available-for-sale Securities, Debt Securities, Total | 57,946 | 66,215 |
Securities available for sale, callable, amortized cost | 66,433 | |
Securities available for sale, callable, fair value | 57,946 | |
Other securities | ||
Securities HTM: | ||
Securities HTM, Amortized cost | 1,050 | 1,050 |
Securities held to maturity, fair value | 1,024 | 1,050 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 46,531 | 48,631 |
Available-for-sale Securities, Debt Securities, Total | 41,233 | $ 45,858 |
Other securities | Callable Securities [Member] | ||
Securities AFS: | ||
Securities available for sale, callable, amortized cost | 45,577 | |
Securities available for sale, callable, fair value | $ 40,277 |
Note 3 - LOANS_LEASES RECEIVA_3
Note 3 - LOANS/LEASES RECEIVABLE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Loans/leases receivable | $ 6,606,307 | $ 6,606,307 | $ 6,138,871 | |||||
Accrued interest on loans | 31,300 | 31,300 | 24,300 | |||||
Allowance for credit losses on loans | 87,669 | $ 90,489 | 87,669 | $ 90,489 | $ 85,797 | 87,706 | $ 92,425 | $ 78,721 |
Charged off | 1,816 | 2,489 | 6,038 | 3,565 | ||||
Recoveries | 253 | 222 | 781 | 808 | ||||
Residential real estate | ||||||||
Residential real estate loan held for sale | 898 | 898 | 1,500 | |||||
C&I | ||||||||
Loans/leases receivable | 1,787,156 | 1,787,156 | 1,748,562 | |||||
C&I | C&I - other | ||||||||
Loans/leases receivable | 1,487,568 | 1,487,568 | 1,451,693 | |||||
Residential real estate loan held for sale | 359 | 359 | ||||||
Charged off | 1,601 | 5,523 | ||||||
C&I | C&I - other including lease | ||||||||
Loans/leases receivable | 1,521,969 | 1,521,969 | 1,483,582 | |||||
Allowance for credit losses on loans | 26,754 | 28,006 | 26,754 | 28,006 | 27,162 | 27,753 | 28,093 | 25,982 |
Charged off | 1,734 | 1,915 | 5,709 | 2,790 | ||||
Recoveries | 215 | 176 | 729 | 622 | ||||
C&I | m2 Lease Funds, LLC | C&I - other | ||||||||
Loans/leases receivable | 306,600 | 306,600 | ||||||
C&I | m2 Lease Funds, LLC | C&I - other | ||||||||
Loans/leases receivable | 278,000 | |||||||
Direct financing leases | ||||||||
Loans/leases receivable | 34,401 | 34,401 | 31,889 | |||||
Allowance for credit losses on loans | 1,081 | 1,081 | 970 | |||||
Charged off | 133 | 186 | ||||||
Direct financing leases | C&I - other including lease | ||||||||
Allowance for credit losses on loans | 1,100 | 1,000 | 1,100 | 1,000 | 1,000 | 970 | 1,600 | 1,500 |
Charged off | (133) | 708 | 186 | (931) | ||||
Recoveries | 43 | 65 | 73 | 173 | ||||
Consumer | ||||||||
Loans/leases receivable | 127,615 | 127,615 | 110,421 | |||||
Allowance for credit losses on loans | 1,564 | 1,328 | 1,564 | 1,328 | 1,505 | 1,371 | 1,355 | 930 |
Charged off | 30 | 7 | 57 | 15 | ||||
Recoveries | 9 | 3 | 13 | 9 | ||||
Construction and land development | ||||||||
Loans/leases receivable | 1,394,054 | 1,394,054 | 1,192,061 | |||||
Residential real estate loan held for sale | 12,700 | 12,700 | ||||||
Allowance for credit losses on loans | 16,842 | 15,133 | 16,842 | 15,133 | 15,888 | 14,262 | 16,388 | 16,972 |
Charged off | 38 | 562 | 50 | 562 | ||||
Multi-family | ||||||||
Loans/leases receivable | 1,156,980 | 1,156,980 | 963,803 | |||||
Residential real estate loan held for sale | 265,000 | 265,000 | ||||||
Allowance for credit losses on loans | 12,279 | 13,263 | 12,279 | 13,263 | $ 11,229 | 13,186 | $ 12,783 | $ 9,339 |
Recoveries | $ 43 | $ 43 | ||||||
C&I - other, construction and land development and multi-family loans | ||||||||
Residential real estate loan held for sale | $ 278,000 | $ 278,000 | $ 0 |
Note 3 -LOANS_LEASES RECEIVABLE
Note 3 -LOANS/LEASES RECEIVABLE - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Gross loans/leases receivable | $ 6,606,307 | $ 6,138,871 | ||||
Less allowance for credit losses | (87,669) | $ (85,797) | (87,706) | $ (90,489) | $ (92,425) | $ (78,721) |
Net loans/leases receivable | 6,518,638 | 6,051,165 | ||||
C&I | ||||||
Gross loans/leases receivable | 1,787,156 | 1,748,562 | ||||
C&I | C&I - revolving | ||||||
Gross loans/leases receivable | 299,588 | 296,869 | ||||
Less allowance for credit losses | (4,469) | (4,101) | (4,457) | (5,180) | (5,179) | (3,907) |
C&I | C&I - other | ||||||
Gross loans/leases receivable | 1,487,568 | 1,451,693 | ||||
CRE | CRE - owner occupied | ||||||
Gross loans/leases receivable | 610,618 | 629,367 | ||||
CRE | Non-owner occupied | ||||||
Gross loans/leases receivable | 955,552 | 963,239 | ||||
Less allowance for credit losses | (11,681) | (11,968) | (11,749) | (11,888) | (12,049) | (8,549) |
Construction and land development | ||||||
Gross loans/leases receivable | 1,394,054 | 1,192,061 | ||||
Less allowance for credit losses | (16,842) | (15,888) | (14,262) | (15,133) | (16,388) | (16,972) |
Multi-family | ||||||
Gross loans/leases receivable | 1,156,980 | 963,803 | ||||
Less allowance for credit losses | (12,279) | (11,229) | (13,186) | (13,263) | (12,783) | (9,339) |
Direct financing leases | ||||||
Net minimum lease payments to be received | 38,729 | 34,754 | ||||
Estimated unguaranteed residual values of leased assets | 165 | 165 | ||||
Unearned lease/residual income | (4,493) | (3,030) | ||||
Gross loans/leases receivable | 34,401 | 31,889 | ||||
Plus deferred lease origination costs, net of fees | 100 | 226 | ||||
Gross loans/leases receivable after originated cost | 34,501 | 32,115 | ||||
Less allowance for credit losses | (1,081) | (970) | ||||
Net loans/leases receivable | 33,420 | 31,145 | ||||
1-4 family real estate | ||||||
Gross loans/leases receivable | 539,931 | 499,529 | ||||
Less allowance for credit losses | (5,168) | (5,213) | (4,963) | (5,232) | (5,513) | (4,541) |
Consumer | ||||||
Gross loans/leases receivable | 127,615 | 110,421 | ||||
Less allowance for credit losses | $ (1,564) | $ (1,505) | $ (1,371) | $ (1,328) | $ (1,355) | $ (930) |
Note 3 - LOANS_LEASES RECEIVA_4
Note 3 - LOANS/LEASES RECEIVABLE - Remaining Discount on Acquired loans (Details) - Performing Loans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance at the beginning of the period | $ (5,104) | $ (12,989) | $ (6,088) | $ (1,533) |
Discount added at acquisition | (13,381) | |||
Accretion recognized | 540 | 1,148 | 1,524 | 3,073 |
Balance at the end of the period | $ (4,564) | $ (11,841) | $ (4,564) | $ (11,841) |
Note 3 - LOANS_LEASES RECEIVA_5
Note 3 - LOANS/LEASES RECEIVABLE - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Loans/leases receivable | $ 6,606,307 | $ 6,138,871 |
Accruing Past Due 90 Days or More | 5 | |
Nonaccrual Loans/Leases | $ 34,568 | $ 8,765 |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0% | |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.52% | 0.14% |
Loans and leases as a percentage of total loan/lease portfolio | 100% | 100% |
Current | ||
Loans/leases receivable | $ 6,557,811 | $ 6,120,819 |
Current as a percentage of total loan/lease portfolio | 99.27% | 99.71% |
30-59 Days Past Due | ||
Loans/leases receivable | $ 7,165 | $ 7,585 |
Past due as a percentage of total loan/lease portfolio | 0.11% | 0.12% |
60 to 89 Days Past Due | ||
Loans/leases receivable | $ 6,763 | $ 1,697 |
Past due as a percentage of total loan/lease portfolio | 0.10% | 0.03% |
C&I | ||
Loans/leases receivable | $ 1,787,156 | $ 1,748,562 |
C&I | C&I - revolving | ||
Loans/leases receivable | 299,588 | 296,869 |
C&I | C&I - other | ||
Loans/leases receivable | 1,487,568 | 1,451,693 |
Accruing Past Due 90 Days or More | 5 | |
Nonaccrual Loans/Leases | 10,222 | 3,135 |
C&I | Current | C&I - revolving | ||
Loans/leases receivable | 299,588 | 296,869 |
C&I | Current | C&I - other | ||
Loans/leases receivable | 1,464,582 | 1,442,629 |
C&I | 30-59 Days Past Due | C&I - other | ||
Loans/leases receivable | 6,609 | 4,800 |
C&I | 60 to 89 Days Past Due | C&I - other | ||
Loans/leases receivable | 6,155 | 1,124 |
CRE | Owner occupied | ||
Loans/leases receivable | 610,618 | 629,367 |
Nonaccrual Loans/Leases | 3,487 | 2,590 |
CRE | Non-owner occupied | ||
Loans/leases receivable | 955,552 | 963,239 |
Nonaccrual Loans/Leases | 5,178 | 374 |
CRE | Current | Owner occupied | ||
Loans/leases receivable | 606,998 | 625,611 |
CRE | Current | Non-owner occupied | ||
Loans/leases receivable | 950,286 | 962,444 |
CRE | 30-59 Days Past Due | Owner occupied | ||
Loans/leases receivable | 133 | 1,166 |
CRE | 30-59 Days Past Due | Non-owner occupied | ||
Loans/leases receivable | 88 | 421 |
Construction and land development | ||
Loans/leases receivable | 1,394,054 | 1,192,061 |
Nonaccrual Loans/Leases | 4,453 | 132 |
Construction and land development | Current | ||
Loans/leases receivable | 1,389,601 | 1,191,929 |
Multi-family | ||
Loans/leases receivable | 1,156,980 | 963,803 |
Nonaccrual Loans/Leases | 8,172 | |
Multi-family | Current | ||
Loans/leases receivable | 1,148,808 | 963,803 |
Direct financing leases | ||
Loans/leases receivable | 34,401 | 31,889 |
Nonaccrual Loans/Leases | 241 | 135 |
Direct financing leases | Current | ||
Loans/leases receivable | 33,694 | 31,557 |
Direct financing leases | 30-59 Days Past Due | ||
Loans/leases receivable | 315 | 141 |
Direct financing leases | 60 to 89 Days Past Due | ||
Loans/leases receivable | 151 | 56 |
1-4 family real estate | ||
Loans/leases receivable | 539,931 | 499,529 |
Nonaccrual Loans/Leases | 2,255 | 2,046 |
1-4 family real estate | Current | ||
Loans/leases receivable | 537,271 | 495,936 |
1-4 family real estate | 30-59 Days Past Due | ||
Loans/leases receivable | 1,030 | |
1-4 family real estate | 60 to 89 Days Past Due | ||
Loans/leases receivable | 405 | 517 |
Consumer | ||
Loans/leases receivable | 127,615 | 110,421 |
Nonaccrual Loans/Leases | 560 | 353 |
Consumer | Current | ||
Loans/leases receivable | 126,983 | 110,041 |
Consumer | 30-59 Days Past Due | ||
Loans/leases receivable | 20 | $ 27 |
Consumer | 60 to 89 Days Past Due | ||
Loans/leases receivable | $ 52 |
Note 3 - LOANS_LEASES RECEIVA_6
Note 3 - LOANS/LEASES RECEIVABLE - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accruing Past Due 90 Days or More | $ 5 | |
Nonaccrual Loans/Leases | $ 34,568 | 8,765 |
Loans/leases receivable | $ 6,606,307 | $ 6,138,871 |
Percentage of Total NPLs | 100% | 100% |
Nonperforming loans | ||
Accruing Past Due 90 Days or More | $ 5 | |
Nonaccrual Loans/Leases | $ 15,289 | 6,787 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 19,279 | 1,978 |
Loans/leases receivable | $ 34,568 | $ 8,770 |
Percentage of Total NPLs | 100% | 100% |
C&I | ||
Loans/leases receivable | $ 1,787,156 | $ 1,748,562 |
C&I | C&I - other | ||
Accruing Past Due 90 Days or More | 5 | |
Nonaccrual Loans/Leases | 10,222 | 3,135 |
Loans/leases receivable | 1,487,568 | 1,451,693 |
C&I | C&I - revolving | ||
Loans/leases receivable | 299,588 | 296,869 |
C&I | Nonperforming loans | C&I - other | ||
Loans/leases receivable | 9,860 | 2,680 |
CRE | Owner occupied | ||
Nonaccrual Loans/Leases | 3,487 | 2,590 |
Loans/leases receivable | 610,618 | 629,367 |
CRE | Non-owner occupied | ||
Nonaccrual Loans/Leases | 5,178 | 374 |
Loans/leases receivable | 955,552 | 963,239 |
CRE | Nonperforming loans | C&I - other | ||
Accruing Past Due 90 Days or More | 5 | |
Nonaccrual Loans/Leases | 7,521 | 2,775 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 2,701 | 360 |
Loans/leases receivable | $ 10,222 | $ 3,140 |
Percentage of Total NPLs | 29.57% | 35.80% |
CRE | Nonperforming loans | Owner occupied | ||
Nonaccrual Loans/Leases | $ 1,225 | $ 1,738 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 2,262 | 852 |
Loans/leases receivable | $ 3,487 | $ 2,590 |
Percentage of Total NPLs | 10.09% | 29.53% |
CRE | Nonperforming loans | Non-owner occupied | ||
Nonaccrual Loans/Leases | $ 2,040 | $ 68 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 3,138 | 306 |
Loans/leases receivable | $ 5,178 | $ 374 |
Percentage of Total NPLs | 14.98% | 4.26% |
Construction and land development | ||
Nonaccrual Loans/Leases | $ 4,453 | $ 132 |
Loans/leases receivable | 1,394,054 | 1,192,061 |
Construction and land development | Nonperforming loans | ||
Nonaccrual Loans/Leases | 1,930 | 132 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 2,523 | |
Loans/leases receivable | $ 4,453 | $ 132 |
Percentage of Total NPLs | 12.88% | 1.51% |
Multi-family | ||
Nonaccrual Loans/Leases | $ 8,172 | |
Loans/leases receivable | 1,156,980 | $ 963,803 |
Multi-family | Nonperforming loans | ||
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 8,172 | |
Loans/leases receivable | $ 8,172 | |
Percentage of Total NPLs | 23.64% | |
Direct financing leases | ||
Nonaccrual Loans/Leases | $ 241 | 135 |
Loans/leases receivable | 34,401 | 31,889 |
Direct financing leases | Nonperforming loans | ||
Nonaccrual Loans/Leases | 152 | 80 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 89 | 55 |
Loans/leases receivable | $ 241 | $ 135 |
Percentage of Total NPLs | 0.70% | 1.54% |
1-4 family real estate | ||
Nonaccrual Loans/Leases | $ 2,255 | $ 2,046 |
Loans/leases receivable | 539,931 | 499,529 |
1-4 family real estate | Nonperforming loans | ||
Nonaccrual Loans/Leases | 1,861 | 1,641 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 394 | 405 |
Loans/leases receivable | $ 2,255 | $ 2,046 |
Percentage of Total NPLs | 6.52% | 23.33% |
Consumer | ||
Nonaccrual Loans/Leases | $ 560 | $ 353 |
Loans/leases receivable | 127,615 | 110,421 |
Consumer | Nonperforming loans | ||
Nonaccrual Loans/Leases | 560 | 353 |
Loans/leases receivable | $ 560 | $ 353 |
Percentage of Total NPLs | 1.62% | 4.03% |
Note 3 - LOANS_LEASES RECEIVA_7
Note 3 - LOANS/LEASES RECEIVABLE - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance, beginning | $ 85,797 | $ 92,425 | $ 87,706 | $ 78,721 |
Change in ACL for writedown of LHFS to fair value | 175 | (3,811) | ||
Initial ACL recorded for PCD loans | 5,902 | |||
Provisions (credited) to expense | 3,260 | 331 | 9,031 | 8,623 |
Charged off | (1,816) | (2,489) | (6,038) | (3,565) |
Recoveries | 253 | 222 | 781 | 808 |
Balance, ending | 87,669 | 90,489 | 87,669 | 90,489 |
Guaranty Bank | ||||
Provisions (credited) to expense | 11,000 | 11,000 | ||
C&I | C&I - revolving | ||||
Balance, beginning | 4,101 | 5,179 | 4,457 | 3,907 |
Initial ACL recorded for PCD loans | 600 | |||
Provisions (credited) to expense | 368 | 1 | 12 | 673 |
Balance, ending | 4,469 | 5,180 | 4,469 | 5,180 |
C&I | C&I - other including lease | ||||
Balance, beginning | 27,162 | 28,093 | 27,753 | 25,982 |
Change in ACL for writedown of LHFS to fair value | (5) | |||
Initial ACL recorded for PCD loans | 7 | |||
Provisions (credited) to expense | 1,111 | 1,652 | 3,986 | 4,185 |
Charged off | (1,734) | (1,915) | (5,709) | (2,790) |
Recoveries | 215 | 176 | 729 | 622 |
Balance, ending | 26,754 | 28,006 | 26,754 | 28,006 |
CRE | Owner occupied | ||||
Balance, beginning | 8,731 | 11,065 | 9,965 | 8,501 |
Initial ACL recorded for PCD loans | 2,481 | |||
Provisions (credited) to expense | 192 | (606) | (834) | (529) |
Charged off | (14) | (222) | ||
Recoveries | 3 | 3 | 6 | |
Balance, ending | 8,912 | 10,459 | 8,912 | 10,459 |
CRE | Non-owner occupied | ||||
Balance, beginning | 11,968 | 12,049 | 11,749 | 8,549 |
Initial ACL recorded for PCD loans | 1,076 | |||
Provisions (credited) to expense | (313) | (161) | (99) | 2,328 |
Charged off | (193) | |||
Recoveries | 26 | 31 | 128 | |
Balance, ending | 11,681 | 11,888 | 11,681 | 11,888 |
Construction and land development | ||||
Balance, beginning | 15,888 | 16,388 | 14,262 | 16,972 |
Change in ACL for writedown of LHFS to fair value | (147) | |||
Initial ACL recorded for PCD loans | 1,100 | |||
Provisions (credited) to expense | 992 | (693) | 2,777 | (2,377) |
Charged off | (38) | (562) | (50) | (562) |
Balance, ending | 16,842 | 15,133 | 16,842 | 15,133 |
Multi-family | ||||
Balance, beginning | 11,229 | 12,783 | 13,186 | 9,339 |
Change in ACL for writedown of LHFS to fair value | 175 | (3,659) | ||
Initial ACL recorded for PCD loans | 481 | |||
Provisions (credited) to expense | 875 | 437 | 2,752 | 3,400 |
Recoveries | 43 | 43 | ||
Balance, ending | 12,279 | 13,263 | 12,279 | 13,263 |
Direct financing leases | ||||
Balance, beginning | 970 | |||
Charged off | (133) | (186) | ||
Balance, ending | 1,081 | 1,081 | ||
Direct financing leases | C&I - other including lease | ||||
Balance, beginning | 1,000 | 1,600 | 970 | 1,500 |
Provisions (credited) to expense | 165 | 91 | 224 | 249 |
Charged off | 133 | (708) | (186) | 931 |
Recoveries | 43 | 65 | 73 | 173 |
Balance, ending | 1,100 | 1,000 | 1,100 | 1,000 |
1-4 family real estate | ||||
Balance, beginning | 5,213 | 5,513 | 4,963 | 4,541 |
Initial ACL recorded for PCD loans | 137 | |||
Provisions (credited) to expense | (45) | (276) | 200 | 559 |
Charged off | (5) | (5) | ||
Recoveries | 5 | |||
Balance, ending | 5,168 | 5,232 | 5,168 | 5,232 |
Consumer | ||||
Balance, beginning | 1,505 | 1,355 | 1,371 | 930 |
Initial ACL recorded for PCD loans | 20 | |||
Provisions (credited) to expense | 80 | (23) | 237 | 384 |
Charged off | (30) | (7) | (57) | (15) |
Recoveries | 9 | 3 | 13 | 9 |
Balance, ending | $ 1,564 | $ 1,328 | $ 1,564 | $ 1,328 |
Note 3 - LOANS_LEASES RECEIVA_8
Note 3 - LOANS/LEASES RECEIVABLE - Composition Of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | $ 84,849 | $ 74,826 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 6,521,458 | 6,064,045 | ||||
Gross loans/leases receivable | 6,606,307 | 6,138,871 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 8,063 | 6,928 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 79,606 | 80,778 | ||||
Allowance for Credit Losses, Total | 87,669 | $ 85,797 | 87,706 | $ 90,489 | $ 92,425 | $ 78,721 |
Construction Loans [Member] | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 4,453 | |||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,389,601 | |||||
Gross loans/leases receivable | 1,394,054 | |||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 307 | |||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 16,535 | |||||
Allowance for Credit Losses, Total | 16,842 | |||||
C&I | ||||||
Gross loans/leases receivable | 1,787,156 | 1,748,562 | ||||
C&I | Commercial And Industrial [Member] | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 22,826 | 12,744 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,798,731 | 1,767,707 | ||||
Gross loans/leases receivable | 1,821,557 | 1,780,451 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 3,324 | 2,406 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 27,899 | 29,804 | ||||
Allowance for Credit Losses, Total | 31,223 | 32,210 | ||||
C&I | C&I - revolving | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 3,358 | 3,386 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 296,230 | 293,483 | ||||
Gross loans/leases receivable | 299,588 | 296,869 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 944 | 961 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 3,525 | 3,496 | ||||
Allowance for Credit Losses, Total | 4,469 | 4,101 | 4,457 | 5,180 | 5,179 | 3,907 |
C&I | C&I - other including lease | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 19,468 | 9,358 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,502,501 | 1,474,224 | ||||
Gross loans/leases receivable | 1,521,969 | 1,483,582 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 2,380 | 1,445 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 24,374 | 26,308 | ||||
Allowance for Credit Losses, Total | 26,754 | 27,162 | 27,753 | 28,006 | 28,093 | 25,982 |
CRE | Owner occupied | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 23,952 | 24,880 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 586,666 | 604,487 | ||||
Gross loans/leases receivable | 610,618 | 629,367 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 2,844 | 2,853 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 6,068 | 7,112 | ||||
Allowance for Credit Losses, Total | 8,912 | 8,731 | 9,965 | 10,459 | 11,065 | 8,501 |
CRE | Non-owner occupied | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 20,456 | 21,588 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 935,096 | 941,651 | ||||
Gross loans/leases receivable | 955,552 | 963,239 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 836 | 869 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 10,845 | 10,880 | ||||
Allowance for Credit Losses, Total | 11,681 | 11,968 | 11,749 | 11,888 | 12,049 | 8,549 |
Construction and land development | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 10,394 | |||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,181,667 | |||||
Gross loans/leases receivable | 1,394,054 | 1,192,061 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 13 | |||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 14,249 | |||||
Allowance for Credit Losses, Total | 16,842 | 15,888 | 14,262 | 15,133 | 16,388 | 16,972 |
Multi-family | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 9,539 | 1,302 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,147,441 | 962,501 | ||||
Gross loans/leases receivable | 1,156,980 | 963,803 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 427 | 395 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 11,852 | 12,791 | ||||
Allowance for Credit Losses, Total | 12,279 | 11,229 | 13,186 | 13,263 | 12,783 | 9,339 |
1-4 family real estate | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 2,906 | 3,177 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 537,025 | 496,352 | ||||
Gross loans/leases receivable | 539,931 | 499,529 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 253 | 317 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 4,915 | 4,646 | ||||
Allowance for Credit Losses, Total | 5,168 | 5,213 | 4,963 | 5,232 | 5,513 | 4,541 |
Consumer | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 717 | 741 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 126,898 | 109,680 | ||||
Gross loans/leases receivable | 127,615 | 110,421 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 72 | 75 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,492 | 1,296 | ||||
Allowance for Credit Losses, Total | 1,564 | 1,505 | 1,371 | 1,328 | 1,355 | 930 |
Direct financing leases | ||||||
Gross loans/leases receivable | 34,401 | 31,889 | ||||
Allowance for Credit Losses, Total | 1,081 | 970 | ||||
Direct financing leases | C&I - other including lease | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 241 | 135 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 34,200 | 31,800 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 55 | 24 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,000 | 946 | ||||
Allowance for Credit Losses, Total | $ 1,100 | $ 1,000 | $ 970 | $ 1,000 | $ 1,600 | $ 1,500 |
Note 3 - LOANS_LEASES RECEIVA_9
Note 3 - LOANS/LEASES RECEIVABLE - Amortized Cost Basis of Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans/leases receivable | $ 6,606,307 | $ 6,138,871 |
Collateral Dependent Loans | ||
Loans/leases receivable | 84,849 | 74,826 |
Commercial Assets | ||
Loans/leases receivable | 3,884 | 4,870 |
Owner occupied | ||
Loans/leases receivable | 24,038 | 25,024 |
Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 34,444 | 33,437 |
Owner Occupied Real Estate | ||
Loans/leases receivable | 3,469 | 3,818 |
Securities | ||
Loans/leases receivable | 5,533 | 108 |
Equipment | ||
Loans/leases receivable | 13,021 | 7,394 |
Other | ||
Loans/leases receivable | 460 | 175 |
C&I | ||
Loans/leases receivable | 1,787,156 | 1,748,562 |
C&I | Collateral Dependent Loans | ||
Loans/leases receivable | 22,826 | 12,744 |
C&I | Commercial Assets | ||
Loans/leases receivable | 3,884 | 4,870 |
C&I | Owner occupied | ||
Loans/leases receivable | 210 | |
C&I | Securities | ||
Loans/leases receivable | 5,533 | 108 |
C&I | Equipment | ||
Loans/leases receivable | 13,021 | 7,394 |
C&I | Other | ||
Loans/leases receivable | 388 | 162 |
C&I | C&I - revolving | ||
Loans/leases receivable | 299,588 | 296,869 |
C&I | C&I - revolving | Collateral Dependent Loans | ||
Loans/leases receivable | 3,358 | 3,386 |
C&I | C&I - revolving | Commercial Assets | ||
Loans/leases receivable | 3,253 | 3,281 |
C&I | C&I - revolving | Equipment | ||
Loans/leases receivable | 105 | 105 |
C&I | C&I - other including lease | ||
Loans/leases receivable | 1,521,969 | 1,483,582 |
C&I | C&I - other including lease | Collateral Dependent Loans | ||
Loans/leases receivable | 19,468 | 9,358 |
C&I | C&I - other including lease | Commercial Assets | ||
Loans/leases receivable | 631 | 1,589 |
C&I | C&I - other including lease | Owner occupied | ||
Loans/leases receivable | 210 | |
C&I | C&I - other including lease | Securities | ||
Loans/leases receivable | 5,533 | 108 |
C&I | C&I - other including lease | Equipment | ||
Loans/leases receivable | 12,916 | 7,289 |
C&I | C&I - other including lease | Other | ||
Loans/leases receivable | 388 | 162 |
CRE | Owner occupied | ||
Loans/leases receivable | 610,618 | 629,367 |
CRE | Owner occupied | Collateral Dependent Loans | ||
Loans/leases receivable | 23,952 | 24,880 |
CRE | Owner occupied | Owner occupied | ||
Loans/leases receivable | 23,888 | 24,814 |
CRE | Owner occupied | Owner Occupied Real Estate | ||
Loans/leases receivable | 64 | 66 |
CRE | Non-owner occupied | ||
Loans/leases receivable | 955,552 | 963,239 |
CRE | Non-owner occupied | Collateral Dependent Loans | ||
Loans/leases receivable | 20,456 | 21,588 |
CRE | Non-owner occupied | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 20,456 | 21,588 |
Construction and land development | ||
Loans/leases receivable | 1,394,054 | 1,192,061 |
Construction and land development | Collateral Dependent Loans | ||
Loans/leases receivable | 4,453 | 10,394 |
Construction and land development | Owner occupied | ||
Loans/leases receivable | 150 | |
Construction and land development | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 4,303 | 10,394 |
Direct financing leases | ||
Loans/leases receivable | 34,401 | 31,889 |
Direct financing leases | C&I - other including lease | Commercial Assets | ||
Loans/leases receivable | 241 | 135 |
Multi-family | ||
Loans/leases receivable | 1,156,980 | 963,803 |
Multi-family | Collateral Dependent Loans | ||
Loans/leases receivable | 9,539 | 1,302 |
Multi-family | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 9,539 | 1,302 |
1-4 family real estate | ||
Loans/leases receivable | 539,931 | 499,529 |
1-4 family real estate | Collateral Dependent Loans | ||
Loans/leases receivable | 2,906 | 3,177 |
1-4 family real estate | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 27 | 33 |
1-4 family real estate | Owner Occupied Real Estate | ||
Loans/leases receivable | 2,879 | 3,144 |
Consumer | ||
Loans/leases receivable | 127,615 | 110,421 |
Consumer | Collateral Dependent Loans | ||
Loans/leases receivable | 717 | 741 |
Consumer | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 119 | 120 |
Consumer | Owner Occupied Real Estate | ||
Loans/leases receivable | 526 | 608 |
Consumer | Other | ||
Loans/leases receivable | $ 72 | $ 13 |
Note 3 - LOANS_LEASES RECEIV_10
Note 3 - LOANS/LEASES RECEIVABLE - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Gross loans/leases receivable | $ 6,606,307 | $ 6,138,871 |
Internally Assigned Risk Rating | ||
2023 | 1,245,096 | 1,762,189 |
2022 | 1,519,426 | 1,348,190 |
2021 | 1,117,112 | 988,473 |
2020 | 818,701 | 412,583 |
2019 | 328,712 | 294,259 |
Prior | 411,567 | 215,046 |
Revolving Loans Amortized Cost Basis | 357,480 | 366,274 |
Gross loans/leases receivable | 5,798,094 | 5,387,014 |
C&I | ||
Gross loans/leases receivable | 1,787,156 | 1,748,562 |
C&I | C&I - revolving | ||
Gross loans/leases receivable | 299,588 | 296,869 |
C&I | C&I - other | ||
Gross loans/leases receivable | 1,487,568 | 1,451,693 |
C&I | Internally Assigned Risk Rating | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 299,588 | 296,869 |
Gross loans/leases receivable | 299,588 | 296,869 |
C&I | Internally Assigned Risk Rating | C&I - other | ||
2023 | 384,761 | 506,174 |
2022 | 327,842 | 280,216 |
2021 | 160,496 | 129,365 |
2020 | 89,055 | 92,312 |
2019 | 73,689 | 59,985 |
Prior | 145,085 | 105,598 |
Gross loans/leases receivable | 1,180,928 | 1,173,650 |
C&I | Pass (Ratings 1 through 5) | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 272,848 | 275,888 |
Gross loans/leases receivable | 272,848 | 275,888 |
C&I | Pass (Ratings 1 through 5) | C&I - other | ||
2023 | 372,511 | 496,445 |
2022 | 318,783 | 279,412 |
2021 | 156,021 | 127,803 |
2020 | 85,298 | 87,054 |
2019 | 69,736 | 59,675 |
Prior | 139,089 | 105,184 |
Gross loans/leases receivable | 1,141,438 | 1,155,573 |
C&I | Special Mention (Rating 6) | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 23,632 | 17,595 |
Gross loans/leases receivable | 23,632 | 17,595 |
C&I | Special Mention (Rating 6) | C&I - other | ||
2023 | 12,149 | 9,542 |
2022 | 8,936 | 679 |
2021 | 4,225 | 901 |
2020 | 3,757 | 723 |
2019 | 801 | |
Prior | 321 | 308 |
Gross loans/leases receivable | 30,189 | 12,153 |
C&I | Substandard (Rating 7) | C&I - revolving | ||
Revolving Loans Amortized Cost Basis | 3,108 | 3,386 |
Gross loans/leases receivable | 3,108 | 3,386 |
C&I | Substandard (Rating 7) | C&I - other | ||
2023 | 101 | 187 |
2022 | 123 | 125 |
2021 | 250 | 661 |
2020 | 4,535 | |
2019 | 3,152 | 310 |
Prior | 5,675 | 106 |
Gross loans/leases receivable | 9,301 | 5,924 |
CRE | Owner occupied | ||
Gross loans/leases receivable | 610,618 | 629,367 |
CRE | Non-owner occupied | ||
Gross loans/leases receivable | 955,552 | 963,239 |
CRE | Internally Assigned Risk Rating | Owner occupied | ||
2023 | 78,071 | 156,151 |
2022 | 131,464 | 182,611 |
2021 | 158,087 | 165,311 |
2020 | 134,180 | 35,451 |
2019 | 32,531 | 28,285 |
Prior | 63,744 | 47,829 |
Revolving Loans Amortized Cost Basis | 12,541 | 13,729 |
Gross loans/leases receivable | 610,618 | 629,367 |
CRE | Internally Assigned Risk Rating | Non-owner occupied | ||
2023 | 124,210 | 318,638 |
2022 | 292,079 | 222,835 |
2021 | 199,685 | 192,555 |
2020 | 149,231 | 104,554 |
2019 | 92,159 | 69,815 |
Prior | 91,723 | 47,121 |
Revolving Loans Amortized Cost Basis | 6,465 | 7,721 |
Gross loans/leases receivable | 955,552 | 963,239 |
CRE | Pass (Ratings 1 through 5) | Owner occupied | ||
2023 | 71,080 | 146,211 |
2022 | 130,033 | 182,440 |
2021 | 148,170 | 142,596 |
2020 | 112,315 | 33,571 |
2019 | 30,875 | 27,088 |
Prior | 62,220 | 45,993 |
Revolving Loans Amortized Cost Basis | 11,670 | 13,460 |
Gross loans/leases receivable | 566,363 | 591,359 |
CRE | Pass (Ratings 1 through 5) | Non-owner occupied | ||
2023 | 107,668 | 310,163 |
2022 | 290,689 | 221,953 |
2021 | 199,435 | 173,478 |
2020 | 131,797 | 89,337 |
2019 | 74,778 | 56,898 |
Prior | 84,855 | 40,923 |
Revolving Loans Amortized Cost Basis | 6,412 | 7,510 |
Gross loans/leases receivable | 895,634 | 900,262 |
CRE | Special Mention (Rating 6) | Owner occupied | ||
2023 | 5,046 | 6,190 |
2022 | 720 | |
2021 | 8,873 | 6,379 |
2020 | 5,820 | 484 |
2019 | 470 | |
Prior | 386 | 1,346 |
Revolving Loans Amortized Cost Basis | 871 | 269 |
Gross loans/leases receivable | 22,186 | 14,668 |
CRE | Special Mention (Rating 6) | Non-owner occupied | ||
2023 | 12,623 | 2,824 |
2022 | 59 | 882 |
2021 | 250 | 18,920 |
2020 | 17,277 | |
2019 | 2,385 | 12,917 |
Prior | 6,868 | 6,198 |
Gross loans/leases receivable | 39,462 | 41,741 |
CRE | Substandard (Rating 7) | Owner occupied | ||
2023 | 1,945 | 3,750 |
2022 | 711 | 171 |
2021 | 1,044 | 16,336 |
2020 | 16,045 | 1,396 |
2019 | 1,186 | 1,197 |
Prior | 1,138 | 490 |
Gross loans/leases receivable | 22,069 | 23,340 |
CRE | Substandard (Rating 7) | Non-owner occupied | ||
2023 | 3,919 | 5,651 |
2022 | 1,331 | |
2021 | 157 | |
2020 | 157 | 15,217 |
2019 | 14,996 | |
Revolving Loans Amortized Cost Basis | 53 | 211 |
Gross loans/leases receivable | 20,456 | 21,236 |
Construction and land development | ||
Gross loans/leases receivable | 1,394,054 | 1,192,061 |
Construction and land development | Internally Assigned Risk Rating | ||
2023 | 354,353 | 480,613 |
2022 | 494,580 | 349,896 |
2021 | 297,990 | 240,778 |
2020 | 187,894 | 31,607 |
2019 | 8,686 | 30,300 |
Prior | 8,083 | |
Revolving Loans Amortized Cost Basis | 26,905 | 29,647 |
Gross loans/leases receivable | 1,378,491 | 1,162,841 |
Construction and land development | Pass (Ratings 1 through 5) | ||
2023 | 353,940 | 479,016 |
2022 | 491,807 | 330,434 |
2021 | 286,614 | 240,778 |
2020 | 187,894 | 31,607 |
2019 | 8,686 | 30,300 |
Prior | 8,083 | |
Revolving Loans Amortized Cost Basis | 26,905 | 29,647 |
Gross loans/leases receivable | 1,363,929 | 1,141,782 |
Construction and land development | Special Mention (Rating 6) | ||
2023 | 1,465 | |
2022 | 9,200 | |
2021 | 10,109 | |
Gross loans/leases receivable | 10,109 | 10,665 |
Construction and land development | Substandard (Rating 7) | ||
2023 | 413 | 132 |
2022 | 2,773 | 10,262 |
2021 | 1,267 | |
Gross loans/leases receivable | 4,453 | 10,394 |
Multi-family | ||
Gross loans/leases receivable | 1,156,980 | 963,803 |
Multi-family | Internally Assigned Risk Rating | ||
2023 | 248,228 | 237,839 |
2022 | 224,208 | 254,100 |
2021 | 247,247 | 226,222 |
2020 | 231,602 | 135,845 |
2019 | 110,450 | 99,695 |
Prior | 95,149 | 7,875 |
Revolving Loans Amortized Cost Basis | 96 | 2,227 |
Gross loans/leases receivable | 1,156,980 | 963,803 |
Multi-family | Pass (Ratings 1 through 5) | ||
2023 | 246,633 | 237,839 |
2022 | 224,208 | 254,056 |
2021 | 239,039 | 224,920 |
2020 | 230,271 | 134,378 |
2019 | 110,450 | 99,695 |
Prior | 95,149 | 7,875 |
Revolving Loans Amortized Cost Basis | 96 | 2,227 |
Gross loans/leases receivable | 1,145,846 | 960,990 |
Multi-family | Special Mention (Rating 6) | ||
2023 | 1,595 | |
2022 | 44 | |
2020 | 1,467 | |
Gross loans/leases receivable | 1,595 | 1,511 |
Multi-family | Substandard (Rating 7) | ||
2021 | 8,208 | 1,302 |
2020 | 1,331 | |
Gross loans/leases receivable | 9,539 | 1,302 |
1-4 family real estate | ||
Gross loans/leases receivable | 539,931 | 499,529 |
1-4 family real estate | Internally Assigned Risk Rating | ||
2023 | 55,341 | 61,981 |
2022 | 48,557 | 57,731 |
2021 | 53,234 | 33,737 |
2020 | 26,292 | 12,692 |
2019 | 11,173 | 5,813 |
Prior | 6,963 | 6,002 |
Revolving Loans Amortized Cost Basis | 3,606 | 5,855 |
Gross loans/leases receivable | 205,166 | 183,811 |
1-4 family real estate | Pass (Ratings 1 through 5) | ||
2023 | 55,287 | 61,953 |
2022 | 48,557 | 57,731 |
2021 | 53,234 | 33,737 |
2020 | 26,292 | 12,687 |
2019 | 11,171 | 5,813 |
Prior | 6,963 | 6,002 |
Revolving Loans Amortized Cost Basis | 3,606 | 5,855 |
Gross loans/leases receivable | 205,110 | 183,778 |
1-4 family real estate | Special Mention (Rating 6) | ||
2023 | 29 | |
Gross loans/leases receivable | 29 | |
1-4 family real estate | Substandard (Rating 7) | ||
2023 | 25 | 28 |
2020 | 5 | |
2019 | 2 | |
Gross loans/leases receivable | 27 | 33 |
Consumer | ||
Gross loans/leases receivable | 127,615 | 110,421 |
Consumer | Internally Assigned Risk Rating | ||
2023 | 132 | 793 |
2022 | 696 | 801 |
2021 | 373 | 505 |
2020 | 447 | 122 |
2019 | 24 | 366 |
Prior | 820 | 621 |
Revolving Loans Amortized Cost Basis | 8,279 | 10,226 |
Gross loans/leases receivable | 10,771 | 13,434 |
Consumer | Pass (Ratings 1 through 5) | ||
2023 | 89 | 511 |
2022 | 416 | 801 |
2021 | 373 | 493 |
2020 | 447 | 122 |
2019 | 24 | 254 |
Prior | 727 | 621 |
Revolving Loans Amortized Cost Basis | 8,279 | 10,226 |
Gross loans/leases receivable | 10,355 | 13,028 |
Consumer | Substandard (Rating 7) | ||
2023 | 43 | 282 |
2022 | 280 | |
2021 | 12 | |
2019 | 112 | |
Prior | 93 | |
Gross loans/leases receivable | $ 416 | $ 406 |
Note 3 - LOANS_LEASES RECEIV_11
Note 3 - LOANS/LEASES RECEIVABLE - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Gross loans/leases receivable | $ 6,606,307 | $ 6,138,871 |
Delinquency | ||
2023 | 212,085 | 298,706 |
2022 | 206,100 | 173,708 |
2021 | 137,148 | 110,850 |
2020 | 92,021 | 31,060 |
2019 | 22,567 | 15,942 |
Prior | 54,505 | 50,417 |
Revolving Loans Amortized Cost Basis | 83,787 | 71,174 |
Gross loans/leases receivable | 808,213 | 751,857 |
Nonperforming loans | ||
Gross loans/leases receivable | 34,568 | 8,770 |
Construction Loans [Member] | ||
Gross loans/leases receivable | 1,394,054 | |
C&I | ||
Gross loans/leases receivable | 1,787,156 | 1,748,562 |
C&I | C&I - other | ||
Gross loans/leases receivable | 1,487,568 | 1,451,693 |
C&I | C&I - other | Delinquency | ||
2023 | 114,293 | 171,290 |
2022 | 122,976 | 71,014 |
2021 | 49,466 | 25,695 |
2020 | 15,842 | 8,161 |
2019 | 3,732 | 1,804 |
Prior | 331 | 79 |
Gross loans/leases receivable | 306,640 | 278,043 |
C&I | C&I - other | Performing Loans | ||
2023 | 113,677 | 170,180 |
2022 | 116,539 | 69,694 |
2021 | 47,024 | 25,540 |
2020 | 15,549 | 8,066 |
2019 | 3,665 | 1,804 |
Prior | 326 | 79 |
Gross loans/leases receivable | 296,780 | 275,363 |
C&I | C&I - other | Nonperforming loans | ||
2023 | 616 | 1,110 |
2022 | 6,437 | 1,320 |
2021 | 2,442 | 155 |
2020 | 293 | 95 |
2019 | 67 | |
Prior | 5 | |
Gross loans/leases receivable | 9,860 | 2,680 |
Direct financing leases | ||
Gross loans/leases receivable | 34,401 | 31,889 |
Direct financing leases | Delinquency | ||
2023 | 12,138 | 14,578 |
2022 | 12,564 | 5,204 |
2021 | 3,728 | 5,788 |
2020 | 3,435 | 4,405 |
2019 | 2,091 | 1,544 |
Prior | 445 | 370 |
Gross loans/leases receivable | 34,401 | 31,889 |
Direct financing leases | Performing Loans | ||
2023 | 12,138 | 14,578 |
2022 | 12,548 | 5,172 |
2021 | 3,706 | 5,700 |
2020 | 3,248 | 4,398 |
2019 | 2,075 | 1,536 |
Prior | 445 | 370 |
Gross loans/leases receivable | 34,160 | 31,754 |
Direct financing leases | Nonperforming loans | ||
2022 | 16 | 32 |
2021 | 22 | 88 |
2020 | 187 | 7 |
2019 | 16 | 8 |
Gross loans/leases receivable | 241 | 135 |
Construction and land development | ||
Gross loans/leases receivable | 1,394,054 | 1,192,061 |
Construction and land development | Delinquency | ||
2023 | 13,912 | 28,785 |
2022 | 1,306 | 360 |
2021 | 274 | 10 |
2020 | 10 | 3 |
2019 | 2 | 62 |
Prior | 59 | |
Gross loans/leases receivable | 15,563 | 29,220 |
Construction and land development | Performing Loans | ||
2023 | 13,912 | 28,785 |
2022 | 1,306 | 360 |
2021 | 274 | 10 |
2020 | 10 | 3 |
2019 | 2 | 62 |
Prior | 59 | |
Gross loans/leases receivable | 15,563 | 29,220 |
Construction and land development | Nonperforming loans | ||
Gross loans/leases receivable | 4,453 | 132 |
1-4 family real estate | ||
Gross loans/leases receivable | 539,931 | 499,529 |
1-4 family real estate | Delinquency | ||
2023 | 56,490 | 69,361 |
2022 | 59,145 | 93,286 |
2021 | 81,097 | 75,640 |
2020 | 69,748 | 17,368 |
2019 | 16,032 | 11,389 |
Prior | 52,173 | 48,584 |
Revolving Loans Amortized Cost Basis | 80 | 90 |
Gross loans/leases receivable | 334,765 | 315,718 |
1-4 family real estate | Performing Loans | ||
2023 | 56,490 | 69,094 |
2022 | 58,926 | 92,762 |
2021 | 80,455 | 75,153 |
2020 | 69,330 | 17,089 |
2019 | 15,705 | 11,381 |
Prior | 51,527 | 48,136 |
Revolving Loans Amortized Cost Basis | 80 | 90 |
Gross loans/leases receivable | 332,513 | 313,705 |
1-4 family real estate | Nonperforming loans | ||
Gross loans/leases receivable | 2,255 | 2,046 |
1-4 family real estate | One To Four Family [Member] | Nonperforming loans | ||
2023 | 267 | |
2022 | 219 | 524 |
2021 | 642 | 487 |
2020 | 418 | 279 |
2019 | 327 | 8 |
Prior | 646 | 448 |
Gross loans/leases receivable | 2,252 | 2,013 |
Consumer | ||
Gross loans/leases receivable | 127,615 | 110,421 |
Consumer | Delinquency | ||
2023 | 15,252 | 14,692 |
2022 | 10,109 | 3,844 |
2021 | 2,583 | 3,717 |
2020 | 2,986 | 1,123 |
2019 | 710 | 1,143 |
Prior | 1,497 | 1,384 |
Revolving Loans Amortized Cost Basis | 83,707 | 71,084 |
Gross loans/leases receivable | 116,844 | 96,987 |
Consumer | Performing Loans | ||
2023 | 15,252 | 14,685 |
2022 | 10,104 | 3,844 |
2021 | 2,562 | 3,717 |
2020 | 2,973 | 1,123 |
2019 | 710 | 1,140 |
Prior | 1,310 | 1,325 |
Revolving Loans Amortized Cost Basis | 83,653 | 70,974 |
Gross loans/leases receivable | 116,564 | 96,808 |
Consumer | Nonperforming loans | ||
Gross loans/leases receivable | 560 | 353 |
Consumer | Consumer. | Nonperforming loans | ||
2023 | 7 | |
2022 | 5 | |
2021 | 21 | |
2020 | 13 | |
2019 | 3 | |
Prior | 187 | 59 |
Revolving Loans Amortized Cost Basis | 54 | 110 |
Gross loans/leases receivable | $ 280 | $ 179 |
Note 3 - LOANS_LEASES RECEIV_12
Note 3 - LOANS/LEASES RECEIVABLE - Schedule of Gross Charge Offs of loans and Leases by Class of Receivable and Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
2023 | $ 41 | $ 41 | ||
2022 | 1,224 | 3,152 | ||
2021 | 254 | 1,336 | ||
2020 | 246 | 1,095 | ||
2019 | 8 | 261 | ||
Prior | 43 | 153 | ||
Total | 1,816 | $ 2,489 | 6,038 | $ 3,565 |
Construction and land development | ||||
2022 | 38 | 50 | ||
Total | 38 | 562 | 50 | 562 |
Direct financing leases | ||||
2022 | 34 | 71 | ||
2021 | 55 | 55 | ||
2020 | 41 | 41 | ||
2019 | 3 | 18 | ||
Prior | 1 | |||
Total | 133 | 186 | ||
1-4 family real estate | ||||
Total | 5 | 5 | ||
Consumer | ||||
2022 | 22 | 41 | ||
2021 | 7 | 10 | ||
2020 | 1 | 1 | ||
2019 | 5 | |||
Total | 30 | $ 7 | 57 | 15 |
C&I - other | C&I | ||||
2023 | 41 | 41 | ||
2022 | 1,130 | 2,990 | ||
2021 | 192 | 1,063 | ||
2020 | 204 | 1,053 | ||
2019 | 5 | 238 | ||
Prior | 29 | 138 | ||
Total | 1,601 | 5,523 | ||
CRE - owner occupied | CRE | ||||
2021 | 208 | |||
Prior | 14 | 14 | ||
Total | $ 14 | $ 222 | ||
Non-owner occupied | CRE | ||||
Total | $ 193 |
Note 3 - LOANS_LEASES RECEIV_13
Note 3 - LOANS/LEASES RECEIVABLE - Financial Difficulty by Class of Receivables and Type of Concession Granted (Details) - Direct financing leases - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Direct financing leases, amortized cost of payment delay | $ 90 | $ 325 |
Direct financing leases, percentage of class of receivable | 1% |
Note 3 - LOANS_LEASES RECEIV_14
Note 3 - LOANS/LEASES RECEIVABLE - Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance, beginning | $ 85,797 | $ 92,425 | $ 87,706 | $ 78,721 |
Provisions (credited) to expense | 3,260 | 331 | 9,031 | 8,623 |
Balance, ending | 87,669 | 90,489 | 87,669 | 90,489 |
Guaranty Bank | ||||
Provisions (credited) to expense | 11,000 | 11,000 | ||
Unfunded Loan Commitment | ||||
Balance, beginning | 6,326 | 6,878 | 5,552 | 6,886 |
Provisions (credited) to expense | 546 | (331) | 1,320 | (339) |
Balance, ending | $ 6,872 | $ 6,547 | $ 6,872 | $ 6,547 |
Note 4 - DERIVATIVES AND HEDG_3
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Deposits | $ 6,494,852 | $ 5,984,217 |
Cash Flow Hedges | ||
Deposits | 300,000 | |
Interest rate caps | Cash Flow Hedges | ||
Initial premium paid upfront for the two caps | $ 3,500 |
Note 4 - DERIVATIVES AND HEDG_4
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Assets | $ 291,295 | $ 177,631 |
Derivative Liabilities | (320,220) | (200,701) |
Hedged Derivatives | Cash Flow Hedges | ||
Derivative Assets | 3,334 | 2,284 |
Derivative Liabilities | (42,095) | (35,631) |
Interest rate caps | Hedged Derivatives | Cash Flow Hedges | ||
Derivative Assets | 5,196 | 8,327 |
Interest rate caps | Unhedged Derivatives | ||
Derivative Assets | 1,533 | 2,213 |
Interest rate swaps | Hedged Derivatives | Cash Flow Hedges | ||
Derivative Assets | 3,334 | 477 |
Derivative Liabilities | (42,095) | (33,824) |
Interest rate swaps | Hedged Derivatives | Fair Value Hedges | ||
Derivative Assets | 3,977 | |
Interest rate swaps | Unhedged Derivatives | ||
Derivative Assets | 277,255 | 166,614 |
Derivative Liabilities | (277,255) | (166,614) |
Interest rate collars | Hedged Derivatives | Cash Flow Hedges | ||
Derivative Liabilities | $ (870) | $ (263) |
Note 4 - DERIVATIVES AND HEDG_5
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Interest Rate Cap Derivatives (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative Assets | $ 291,295 | $ 177,631 |
Derivative Liabilities | (320,220) | (200,701) |
Hedged Derivatives | Cash Flow Hedges | ||
Notional Amount | 49,310 | |
Derivative Assets | 3,334 | 2,284 |
Derivative Liabilities | (42,095) | (35,631) |
Hedged Derivatives | Cash Flow Hedges | Deposits, one | ||
Notional Amount | $ 25,000 | |
Derivative Liabilities | (50) | |
Hedged Derivatives | Cash Flow Hedges | Deposits, one | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, two | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 157 | 714 |
Hedged Derivatives | Cash Flow Hedges | Deposits, two | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, three | ||
Notional Amount | $ 50,000 | |
Derivative Assets | $ 474 | 1,566 |
Hedged Derivatives | Cash Flow Hedges | Deposits, three | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, four | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 237 | 783 |
Hedged Derivatives | Cash Flow Hedges | Deposits, four | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, five | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 1,010 | 1,264 |
Hedged Derivatives | Cash Flow Hedges | Deposits, five | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, six | ||
Notional Amount | $ 50,000 | |
Derivative Assets | $ 2,212 | 2,700 |
Hedged Derivatives | Cash Flow Hedges | Deposits, six | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, seven | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 1,106 | 1,350 |
Hedged Derivatives | Cash Flow Hedges | Deposits, seven | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Hedged Derivatives | Cash Flow Hedges | Interest rate swaps | ||
Derivative Assets | $ 3,334 | 477 |
Derivative Liabilities | (42,095) | (33,824) |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Statutory Trust II | ||
Notional Amount | $ 10,000 | |
Receive Rate | 8.51% | |
Pay Rate | 5.85% | |
Derivative Assets | $ 710 | 464 |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Statutory Trust III | ||
Notional Amount | $ 8,000 | |
Receive Rate | 8.51% | |
Pay Rate | 5.85% | |
Derivative Assets | $ 568 | 372 |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Statutory Trust V | ||
Notional Amount | $ 10,000 | |
Receive Rate | 7.12% | |
Pay Rate | 4.54% | |
Derivative Assets | $ 691 | 459 |
Hedged Derivatives | Cash Flow Hedges | Community National Statutory Trust II | ||
Notional Amount | $ 3,000 | |
Receive Rate | 7.83% | |
Pay Rate | 5.17% | |
Derivative Assets | $ 212 | 140 |
Hedged Derivatives | Cash Flow Hedges | Community National Statutory Trust III | ||
Notional Amount | $ 3,500 | |
Receive Rate | 7.42% | |
Pay Rate | 4.75% | |
Derivative Assets | $ 247 | 163 |
Hedged Derivatives | Cash Flow Hedges | Guaranty Bankshares Statutory Trust I | ||
Notional Amount | $ 4,500 | |
Receive Rate | 7.42% | |
Pay Rate | 4.75% | |
Derivative Assets | $ 318 | 209 |
Hedged Derivatives | Cash Flow Hedges | Guaranty Statutory Trust II | ||
Notional Amount | $ 10,310 | |
Receive Rate | 7.09% | |
Pay Rate | 4.09% | |
Derivative Assets | $ 588 | 477 |
Hedged Derivatives | Cash Flow Hedges | Loans, one | ||
Receive Rate | 1.40% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (6,776) | (5,646) |
Hedged Derivatives | Cash Flow Hedges | Loans, two | ||
Receive Rate | 1.40% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (9,680) | (8,066) |
Hedged Derivatives | Cash Flow Hedges | Loans, three | ||
Receive Rate | 1.40% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (7,755) | (6,464) |
Hedged Derivatives | Cash Flow Hedges | Loans, four | ||
Receive Rate | 1.30% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (4,877) | (4,018) |
Hedged Derivatives | Cash Flow Hedges | Loan five | ||
Receive Rate | 1.91% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (1,301) | (1,144) |
Hedged Derivatives | Cash Flow Hedges | Loan six | ||
Receive Rate | 1.91% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (4,335) | (3,812) |
Hedged Derivatives | Cash Flow Hedges | Loan seven | ||
Receive Rate | 1.91% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (3,035) | (2,669) |
Hedged Derivatives | Cash Flow Hedges | Loan eight | ||
Receive Rate | 1.91% | |
Pay Rate | 5.31% | |
Derivative Liabilities | $ (4,336) | (3,812) |
Hedged Derivatives | Cash Flow Hedges | Interest rate caps | ||
Notional Amount | 225,000 | |
Derivative Assets | 5,196 | 8,327 |
Derivative Assets (Liabilities) | 8,327 | |
Hedged Derivatives | Derivative Assets. | ||
Notional Amount | 325,000 | |
Fair Value - Asset | 3,977 | |
Hedged Derivatives | Derivative Assets. | Loan nine | ||
Notional Amount | $ 25,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.38% | |
Fair Value - Asset | $ 204 | |
Hedged Derivatives | Derivative Assets. | Loan ten | ||
Notional Amount | $ 30,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.21% | |
Fair Value - Asset | $ 304 | |
Hedged Derivatives | Derivative Assets. | Loan eleven | ||
Notional Amount | $ 32,500 | |
Receive Rate | 5.31% | |
Pay Rate | 4.08% | |
Fair Value - Asset | $ 409 | |
Hedged Derivatives | Derivative Assets. | Loan twelve | ||
Notional Amount | $ 32,500 | |
Receive Rate | 5.31% | |
Pay Rate | 3.98% | |
Fair Value - Asset | $ 488 | |
Hedged Derivatives | Derivative Assets. | Loan thirteen | ||
Notional Amount | $ 30,000 | |
Receive Rate | 5.31% | |
Pay Rate | 3.90% | |
Fair Value - Asset | $ 532 | |
Hedged Derivatives | Derivative Assets. | Loan fourteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.38% | |
Fair Value - Asset | $ 123 | |
Hedged Derivatives | Derivative Assets. | Loan fifteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.21% | |
Fair Value - Asset | $ 152 | |
Hedged Derivatives | Derivative Assets. | Loan sixteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.08% | |
Fair Value - Asset | $ 189 | |
Hedged Derivatives | Derivative Assets. | Loan seventeen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.31% | |
Pay Rate | 3.98% | |
Fair Value - Asset | $ 225 | |
Hedged Derivatives | Derivative Assets. | Loan eighteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.31% | |
Pay Rate | 3.90% | |
Fair Value - Asset | $ 267 | |
Hedged Derivatives | Derivative Assets. | Loan nineteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.60% | |
Fair Value - Asset | $ 90 | |
Hedged Derivatives | Derivative Assets. | Loan twenty | ||
Notional Amount | $ 20,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.38% | |
Fair Value - Asset | $ 163 | |
Hedged Derivatives | Derivative Assets. | Loan twenty one | ||
Notional Amount | $ 20,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.21% | |
Fair Value - Asset | $ 203 | |
Hedged Derivatives | Derivative Assets. | Loan twenty two | ||
Notional Amount | $ 20,000 | |
Receive Rate | 5.31% | |
Pay Rate | 4.08% | |
Fair Value - Asset | $ 252 | |
Hedged Derivatives | Derivative Assets. | Loan twenty three | ||
Notional Amount | $ 25,000 | |
Receive Rate | 5.31% | |
Pay Rate | 3.98% | |
Fair Value - Asset | $ 376 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | ||
Notional Amount | 300,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loans, one | ||
Notional Amount | 35,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loans, two | ||
Notional Amount | 50,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loans, three | ||
Notional Amount | 40,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loans, four | ||
Notional Amount | 25,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loan five | ||
Notional Amount | 15,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loan six | ||
Notional Amount | 50,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loan seven | ||
Notional Amount | 35,000 | |
Hedged Derivatives | Derivative Liabilities | Cash Flow Hedges | Loan eight | ||
Notional Amount | 50,000 | |
Unhedged Derivatives | ||
Notional Amount | 75,000 | |
Unhedged Derivatives | Deposits, one | ||
Notional Amount | 25,000 | |
Unhedged Derivatives | Deposits, two | ||
Notional Amount | 25,000 | |
Unhedged Derivatives | Deposits, five | ||
Notional Amount | 25,000 | |
Unhedged Derivatives | Interest rate swaps | ||
Derivative Assets | 277,255 | 166,614 |
Derivative Liabilities | (277,255) | (166,614) |
Unhedged Derivatives | Interest rate caps | ||
Derivative Assets | $ 1,533 | $ 2,213 |
Note 4 - DERIVATIVES AND HEDG_6
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES - Interest Rate Collars (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Liabilities | $ (320,220) | $ (200,701) |
Cash Flow Hedges | Hedged Derivatives | ||
Notional Amount | 49,310 | |
Derivative Liabilities | (42,095) | (35,631) |
Cash Flow Hedges | Hedged Derivatives | Interest rate collars | ||
Notional Amount | $ 50,000 | |
Cap Strike Rate | 4.40% | |
Floor Strike Rate | 2.44% | |
Derivative Liabilities | $ (870) | $ (263) |
Note 4 - DERIVATIVES AND HEDG_7
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES - Significantly Impact of operations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Assets | $ 291,295 | $ 177,631 |
Derivative Liabilities. | 320,220 | 200,701 |
Unhedged Derivatives | Interest rate swaps | ||
Derivative Asset, Notional Amount | 2,967,392 | 2,528,949 |
Derivative Assets | 277,255 | 166,614 |
Derivative Liability, Notional Amount | 2,967,392 | 2,528,949 |
Derivative Liabilities. | $ 277,255 | $ 166,614 |
Note 4 - DERIVATIVES AND HEDG_8
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES - Cash flow hedging and fair value (Details) - Unhedged Derivatives - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
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 | $ 108,568 | $ 79,267 | $ 301,162 | $ 198,534 |
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 | 53,313 | 18,498 | 135,892 | 32,632 |
Gain on interest rate caps on deposits | Cash Flow Hedges | 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 | (2,066) | (263) | (5,522) | 199 |
Loss on interest rate swaps and collars on loans | Cash Flow Hedges | 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 | (2,495) | (426) | (6,757) | 715 |
Gain on interest rate swaps on fixed rate loans | Fair Value Hedges | 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 | 828 | 828 | ||
Gain on interest rate swaps on junior subordinated debentures | Cash Flow Hedges | 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 | $ (328) | $ 73 | $ (830) | $ 536 |
Note 4 - DERIVATIVES AND HEDG_9
Note 4 - DERIVATIVES AND HEDGING ACTIVITIES - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Swapped loan portfolio loan-to-value percentage, including the potential swap exposure | 65% | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 10,998 | $ 38,756 |
Interest rate swaps | Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 1,275 | 1,272 |
Interest rate swaps | Municipal securities. | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 3,945 | 8,227 |
Interest rate swaps | Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 5,778 | $ 29,257 |
Note 5 - INCOME TAXES - Reconci
Note 5 - INCOME TAXES - Reconciliation of the Expected Federal Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INCOME TAXES | ||||
Computed "expected" tax expense | $ 5,661 | $ 7,165 | $ 18,751 | $ 16,130 |
Tax exempt income, net | (3,705) | (3,003) | (10,103) | (7,701) |
Bank-owned life insurance | (376) | (127) | (700) | (273) |
State income taxes, net of federal benefit, current year | 955 | 1,616 | 3,383 | 3,889 |
Provision adjustment from accounting method change | 1,181 | |||
Tax Credits | (202) | (359) | (411) | (890) |
Income from tax credit equity investments | (449) | (337) | (1,340) | (939) |
Acquisition costs | 78 | 450 | ||
Excess tax benefit on stock options exercised and restricted stock awards vested | (7) | (46) | (451) | (520) |
Other | 37 | 163 | 540 | 316 |
Federal and state income tax expense | $ 1,840 | $ 4,824 | $ 8,589 | $ 8,649 |
Computed "expected" tax expense (in percentage) | 21% | 21% | 21% | 21% |
Tax exempt income, net (in percentage) | (13.70%) | (8.80%) | (11.30%) | (10.00%) |
Bank-owned life insurance (in percentage) | (1.40%) | (0.40%) | (0.80%) | (0.40%) |
State income taxes, net of federal benefit, current year (in percentage) | 3.50% | 4.70% | 3.80% | 5.10% |
Provision adjustment from accounting method change (in percentage) | (1.50%) | |||
Tax credits (in percentage) | (0.70%) | (1.10%) | (0.50%) | (1.20%) |
Income from tax credit equity investments (in percentage) | (1.70%) | (1.00%) | (1.50%) | (1.20%) |
Acquisition costs (in percentage) | 0.20% | 0.60% | ||
Excess tax benefit on stock options exercised and restricted stock awards vested (in percentage) | (0.00%) | (0.10%) | (0.50%) | (0.70%) |
Other (in percentage) | (0.20%) | (0.40%) | (0.60%) | (0.40%) |
Federal and state income tax expense (in percentage) | 6.80% | 14.10% | 9.60% | 11.30% |
Note 6 - EARNINGS PER SHARE - B
Note 6 - EARNINGS PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
EARNINGS PER SHARE | ||||||||
Net Income (Loss) | $ 25,121 | $ 28,425 | $ 27,157 | $ 29,294 | $ 15,242 | $ 23,624 | $ 80,703 | $ 68,160 |
Basic EPS | $ 1.50 | $ 1.73 | $ 4.82 | $ 4.25 | ||||
Diluted EPS | $ 1.49 | $ 1.71 | $ 4.79 | $ 4.20 | ||||
Weighted average common shares outstanding | 16,717,303 | 16,900,968 | 16,731,847 | 16,030,371 | ||||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 130,648 | 209,723 | 131,356 | 213,550 | ||||
Weighted average common and common equivalent shares outstanding | 16,847,951 | 17,110,691 | 16,863,203 | 16,243,921 |
Note 7 - FAIR VALUE (Details)
Note 7 - FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities available for sale, at fair value | $ 281,279 | $ 340,960 |
Derivatives | 291,295 | 177,631 |
Derivatives | 320,220 | 200,701 |
Fair Value, Measurements, Recurring | ||
Derivatives | 291,295 | 177,631 |
Assets Fair Value | 572,574 | 518,591 |
Derivatives | 320,220 | 200,701 |
Liabilities Fair Value | 320,220 | 200,701 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Derivatives | 291,295 | 177,631 |
Assets Fair Value | 572,574 | 518,591 |
Derivatives | 320,220 | 200,701 |
Liabilities Fair Value | 320,220 | 200,701 |
Fair Value, Measurements, Nonrecurring | ||
Assets Fair Value | 313,312 | 30,909 |
Loans receivable held for sale in preparation for securitization | 277,995 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Assets Fair Value | 313,312 | 30,909 |
Loans receivable held for sale in preparation for securitization | 277,995 | |
U.S. treasuries and govt. sponsored agency securities | ||
Securities available for sale, at fair value | 16,002 | 16,981 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring | ||
Securities available for sale, at fair value | 16,002 | 16,981 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Securities available for sale, at fair value | 16,002 | 16,981 |
Residential mortgage-backed and related securities | ||
Securities available for sale, at fair value | 57,946 | 66,215 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring | ||
Securities available for sale, at fair value | 57,946 | 66,215 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Securities available for sale, at fair value | 57,946 | 66,215 |
Municipal securities. | ||
Securities available for sale, at fair value | 149,772 | 193,178 |
Municipal securities. | Fair Value, Measurements, Recurring | ||
Securities available for sale, at fair value | 149,772 | 193,178 |
Municipal securities. | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Securities available for sale, at fair value | 149,772 | 193,178 |
Asset-backed securities | ||
Securities available for sale, at fair value | 16,326 | 18,728 |
Asset-backed securities | Fair Value, Measurements, Recurring | ||
Securities available for sale, at fair value | 16,326 | 18,728 |
Asset-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Securities available for sale, at fair value | 16,326 | 18,728 |
Other securities | ||
Securities available for sale, at fair value | 41,233 | 45,858 |
Other securities | Fair Value, Measurements, Recurring | ||
Securities available for sale, at fair value | 41,233 | 45,858 |
Other securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Securities available for sale, at fair value | 41,233 | 45,858 |
Impaired Loans Leases | Fair Value, Measurements, Nonrecurring | ||
Assets Fair Value | 35,197 | 30,765 |
Impaired Loans Leases | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Assets Fair Value | 35,197 | 30,765 |
Other Real Estate Owned | Fair Value, Measurements, Nonrecurring | ||
Assets Fair Value | 120 | 144 |
Other Real Estate Owned | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Assets Fair Value | $ 120 | $ 144 |
Note 7 - FAIR VALUE - Quantitat
Note 7 - FAIR VALUE - Quantitative Information About Level Fair Value Measurements (Details) - Fair Value, Inputs, Level 3 - Valuation Technique, Appraisal of Collateral - Measurement Input, Appraised Value $ in Thousands | Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) |
Loans receivable held for sale in preparation for securitization | $ | $ 277,995 | |
Loans receivable held-for-sale, Valuation Technique | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Loans receivable held-for-sale, Measurement Input | us-gaap:MeasurementInputComparabilityAdjustmentMember | us-gaap:MeasurementInputComparabilityAdjustmentMember |
Impaired Loans Leases | ||
Fair value | $ | $ 35,197 | $ 30,765 |
Valuation technique | Valuation Technique, Appraisal of Collateral | Valuation Technique, Appraisal of Collateral |
Unobservable input | Measurement Input, Appraised Value | Measurement Input, Appraised Value |
Impaired Loans Leases | Minimum | ||
Impaired loans/leases, measurement input | (0.1000) | |
Impaired Loans Leases | Maximum | ||
Impaired loans/leases, measurement input | (0.3000) | |
Other Real Estate Owned | ||
Fair value | $ | $ 130 | $ 144 |
Valuation technique, OREO | Valuation Technique, Appraisal of Collateral | Valuation Technique, Appraisal of Collateral |
Unobservable input, OREO | Measurement Input, Appraised Value | Measurement Input, Appraised Value |
Other Real Estate Owned | Minimum | ||
OREO, measurement input | 0 | |
Other Real Estate Owned | Maximum | ||
OREO, measurement input | (0.3500) |
Note 7 - FAIR VALUE - Carrying
Note 7 - FAIR VALUE - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Interest-bearing deposits at financial institutions | $ 60,350 | $ 67,360 |
Securities held to maturity, fair value | 524,819 | 535,636 |
Securities available for sale, at fair value | 281,279 | 340,960 |
Derivatives | 291,295 | 177,631 |
Subordinated notes | 232,958 | 232,662 |
Derivatives | 320,220 | 200,701 |
Fair Value, Inputs, Level 1 | Carrying Value | ||
Cash and due from banks | 104,265 | 59,723 |
Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Cash and due from banks | 104,265 | 59,723 |
Fair Value, Inputs, Level 2 | Carrying Value | ||
Federal funds sold | 20,300 | 56,910 |
Securities held to maturity, fair value | 615,115 | 587,142 |
Securities available for sale, at fair value | 281,279 | 340,960 |
Loans/leases receivable, net | 6,208,053 | 6,022,679 |
Short-term borrowings | 470 | 129,630 |
FHLB advances | 430,000 | 415,000 |
Subordinated notes | 232,958 | 232,662 |
Junior subordinated debentures | 48,698 | 48,602 |
Fair Value, Inputs, Level 2 | Carrying Value | Non-maturity Deposits | ||
Deposits | 5,522,283 | 5,199,633 |
Fair Value, Inputs, Level 2 | Carrying Value | Time Deposits | ||
Deposits | 972,569 | 784,584 |
Fair Value, Inputs, Level 2 | Carrying Value | Interest rate caps | ||
Derivatives | 291,295 | 177,631 |
Fair Value, Inputs, Level 2 | Carrying Value | Interest rate swaps | ||
Derivatives | 320,220 | 200,701 |
Fair Value, Inputs, Level 2 | Carrying Value | Interest-bearing Deposits | ||
Interest-bearing deposits at financial institutions | 60,350 | 67,360 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Federal funds sold | 20,300 | 56,910 |
Securities held to maturity, fair value | 524,819 | 535,636 |
Securities available for sale, at fair value | 281,279 | 340,960 |
Loans/leases receivable, net | 5,907,226 | 5,896,443 |
Short-term borrowings | 470 | 129,630 |
FHLB advances | 429,450 | 415,000 |
Subordinated notes | 249,002 | 250,613 |
Junior subordinated debentures | 40,204 | 41,545 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Non-maturity Deposits | ||
Deposits | 5,522,283 | 5,199,633 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Time Deposits | ||
Deposits | 966,026 | 766,294 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest rate caps | ||
Derivatives | 291,295 | 177,631 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest rate swaps | ||
Derivatives | 320,220 | 200,701 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest-bearing Deposits | ||
Interest-bearing deposits at financial institutions | 60,350 | 67,360 |
Fair Value, Inputs, Level 3 | Carrying Value | ||
Loans/leases receivable, net | 310,585 | 28,486 |
Fair Value, Inputs, Level 3 | Estimated Fair Value | ||
Loans/leases receivable, net | 313,192 | 30,765 |
Fair Value, Measurements, Recurring | ||
Derivatives | 291,295 | 177,631 |
Derivatives | 320,220 | 200,701 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Derivatives | 291,295 | 177,631 |
Derivatives | 320,220 | $ 200,701 |
Fair Value, Measurements, Nonrecurring | ||
Loans, net | 277,995 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Loans, net | $ 277,995 |
Note 8 - BUSINESS SEGMENT INF_3
Note 8 - BUSINESS SEGMENT INFORMATION - (Details) | Sep. 30, 2023 subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
Note 8 - BUSINESS SEGMENT INF_4
Note 8 - BUSINESS SEGMENT INFORMATION - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Total revenue | $ 135,161 | $ 100,362 | $ 386,117 | $ 258,044 | |||||
Net interest income | 55,255 | 60,769 | 165,270 | 165,902 | |||||
Provision for credit losses | 3,806 | 11,340 | 8,284 | ||||||
Net income (loss) from continuing operations | 25,121 | $ 28,425 | $ 27,157 | 29,294 | $ 15,242 | $ 23,624 | 80,703 | 68,160 | |
Goodwill | 139,027 | 137,607 | 139,027 | 137,607 | $ 137,607 | ||||
Intangibles | 14,537 | 17,546 | 14,537 | 17,546 | 16,759 | ||||
Total assets | 8,540,057 | 7,730,049 | 8,540,057 | 7,730,049 | $ 7,948,837 | ||||
Intersegment Eliminations [Member] | |||||||||
Total revenue | (32,197) | (36,311) | (103,606) | (92,383) | |||||
Net interest income | 284 | 355 | 938 | 1,046 | |||||
Net income (loss) from continuing operations | (31,092) | (35,783) | (99,658) | (90,768) | |||||
Total assets | (1,141,314) | (1,020,338) | (1,141,314) | (1,020,338) | |||||
Commercial Banking | QCBT | Operating Segments [Member] | |||||||||
Total revenue | 38,165 | 26,583 | 106,664 | 72,785 | |||||
Net interest income | 17,198 | 18,117 | 50,590 | 53,971 | |||||
Provision for credit losses | 2,686 | 554 | 7,879 | (88) | |||||
Net income (loss) from continuing operations | 5,856 | 7,758 | 17,710 | 26,153 | |||||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | |||||
Total assets | 2,433,084 | 2,218,166 | 2,433,084 | 2,218,166 | |||||
Commercial Banking | CRBT | Operating Segments [Member] | |||||||||
Total revenue | 43,592 | 34,157 | 138,018 | 91,083 | |||||
Net interest income | 16,852 | 17,160 | 50,254 | 46,576 | |||||
Provision for credit losses | 503 | (35) | 2,499 | (971) | |||||
Net income (loss) from continuing operations | 13,175 | 14,475 | 48,928 | 38,860 | |||||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | |||||
Intangibles | 950 | 1,344 | 950 | 1,344 | |||||
Total assets | 2,442,263 | 2,108,614 | 2,442,263 | 2,108,614 | |||||
Commercial Banking | CSB | Operating Segments [Member] | |||||||||
Total revenue | 19,225 | 14,127 | 53,126 | 37,534 | |||||
Net interest income | 11,136 | 10,183 | 32,683 | 29,365 | |||||
Provision for credit losses | 275 | (269) | 965 | (554) | |||||
Net income (loss) from continuing operations | 4,740 | 4,106 | 14,113 | 11,606 | |||||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | |||||
Intangibles | 1,579 | 2,184 | 1,579 | 2,184 | |||||
Total assets | 1,417,249 | 1,270,426 | 1,417,249 | 1,270,426 | |||||
Commercial Banking | Guaranty Bank | Operating Segments [Member] | |||||||||
Total revenue | 34,498 | 25,523 | 90,443 | 57,036 | |||||
Net interest income | 13,743 | 18,196 | 42,716 | 42,789 | |||||
Provision for credit losses | 342 | (250) | (3) | 9,897 | |||||
Net income (loss) from continuing operations | 6,801 | 9,196 | 17,344 | 13,327 | |||||
Goodwill | 110,936 | 109,516 | 110,936 | 109,516 | |||||
Intangibles | 12,008 | 14,018 | 12,008 | 14,018 | |||||
Total assets | 2,242,638 | 2,107,407 | 2,242,638 | 2,107,407 | |||||
Other Segments | Operating Segments [Member] | |||||||||
Total revenue | 31,878 | 36,283 | 101,472 | 91,989 | |||||
Net interest income | (3,958) | (3,242) | (11,911) | (7,845) | |||||
Net income (loss) from continuing operations | 25,641 | 29,542 | 82,266 | 68,982 | |||||
Total assets | $ 1,146,137 | $ 1,045,774 | $ 1,146,137 | $ 1,045,774 |
Note 9 - REGULATORY CAPITAL R_3
Note 9 - REGULATORY CAPITAL REQUIREMENTS - Capital Requirements (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total risk-based capital, actual, amount | $ 1,135,262 | $ 1,055,177 |
Total risk-based capital, actual, ratio | 0.1454 | 0.1428 |
Total risk-based capital for capital adequacy purposes, amount | $ 624,805 | $ 591,132 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 820,057 | $ 775,861 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 781,007 | $ 738,915 |
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 | $ 807,582 | $ 734,977 |
Tier 1 risk-based capital, actual, ratio | 0.1034 | 0.0995 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 468,604 | $ 443,349 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 663,856 | $ 628,078 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 624,805 | $ 591,132 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 807,582 | $ 734,977 |
Tier 1 leverage, actual, ratio | 0.0992 | 0.0961 |
Tier 1 leverage for capital adequacy purposes, amount | $ 325,480 | $ 305,959 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 325,480 | $ 305,959 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 406,850 | $ 382,449 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 758,884 | $ 686,375 |
Common equity Tier 1, actual ratio | 0.0972 | 0.0929 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 351,453 | $ 332,512 |
Common equity Tier 1 for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 546,705 | $ 517,241 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 507,654 | $ 480,295 |
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 | $ 295,319 | $ 275,337 |
Total risk-based capital, actual, ratio | 0.1290 | 0.1307 |
Total risk-based capital for capital adequacy purposes, amount | $ 183,095 | $ 168,588 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 240,313 | $ 221,272 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 228,869 | $ 210,735 |
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 | $ 266,688 | $ 248,978 |
Tier 1 risk-based capital, actual, ratio | 0.1165 | 0.1181 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 137,321 | $ 126,441 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 194,539 | $ 179,125 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 183,095 | $ 168,588 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 266,688 | $ 248,978 |
Tier 1 leverage, actual, ratio | 0.1110 | 0.1101 |
Tier 1 leverage for capital adequacy purposes, amount | $ 96,111 | $ 90,419 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 96,111 | $ 90,419 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 120,139 | $ 133,023 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 266,688 | $ 248,978 |
Common equity Tier 1, actual ratio | 0.1165 | 0.1181 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 102,991 | $ 94,831 |
Common equity Tier 1 for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 160,208 | $ 147,514 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 148,765 | $ 136,978 |
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 | $ 358,150 | $ 308,153 |
Total risk-based capital, actual, ratio | 0.1705 | 0.1484 |
Total risk-based capital for capital adequacy purposes, amount | $ 168,021 | $ 166,168 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 220,527 | $ 218,096 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 210,026 | $ 207,711 |
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 | $ 331,423 | $ 282,258 |
Tier 1 risk-based capital, actual, ratio | 0.1578 | 0.1359 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 126,016 | $ 124,626 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 178,522 | $ 176,554 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 168,021 | $ 166,168 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 331,423 | $ 282,258 |
Tier 1 leverage, actual, ratio | 0.1460 | 0.1317 |
Tier 1 leverage for capital adequacy purposes, amount | $ 90,799 | $ 85,707 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 90,799 | $ 85,707 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 113,498 | $ 107,134 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 331,423 | $ 282,258 |
Common equity Tier 1, actual ratio | 0.1578 | 0.1359 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 94,512 | $ 93,470 |
Common equity Tier 1 for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 147,018 | $ 145,397 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 136,517 | $ 135,012 |
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 | $ 177,296 | $ 142,974 |
Total risk-based capital, actual, ratio | 0.1357 | 0.1204 |
Total risk-based capital for capital adequacy purposes, amount | $ 104,554 | $ 94,981 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 137,227 | $ 124,662 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 130,693 | $ 118,726 |
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 | $ 152,596 | $ 128,130 |
Tier 1 risk-based capital, actual, ratio | 0.1168 | 0.1079 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 78,416 | $ 71,236 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 111,089 | $ 100,917 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 104,554 | $ 94,981 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 152,596 | $ 128,130 |
Tier 1 leverage, actual, ratio | 0.1124 | 0.1009 |
Tier 1 leverage for capital adequacy purposes, amount | $ 54,303 | $ 50,799 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 54,303 | $ 50,799 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 67,879 | $ 63,499 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 152,596 | $ 128,130 |
Common equity Tier 1, actual ratio | 0.1168 | 0.1079 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 58,812 | $ 53,427 |
Common equity Tier 1 for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 91,485 | $ 83,108 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 84,950 | $ 77,172 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Guaranty Bank | ||
Total risk-based capital, actual, amount | $ 258,732 | $ 243,106 |
Total risk-based capital, actual, ratio | 0.1253 | 0.1224 |
Total risk-based capital for capital adequacy purposes, amount | $ 165,160 | $ 158,903 |
Total risk-based capital for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 216,772 | $ 208,560 |
Total risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.1050 | 0.1050 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 206,450 | $ 198,629 |
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 | $ 236,071 | $ 218,647 |
Tier 1 risk-based capital, actual, ratio | 0.1143 | 0.1101 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 123,870 | $ 119,177 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, amount | $ 175,482 | $ 168,834 |
Tier 1 risk-based capital for capital adequacy purposes with capital conservation buffer, ratio | 0.0850 | 0.0850 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 165,160 | $ 158,903 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 236,071 | $ 218,647 |
Tier 1 leverage, actual, ratio | 0.1122 | 0.1090 |
Tier 1 leverage for capital adequacy purposes, amount | $ 84,130 | $ 80,229 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 84,130 | $ 80,229 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, ratio | 0.0400 | 0.0400 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 105,162 | $ 100,286 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 236,071 | $ 218,647 |
Common equity Tier 1, actual ratio | 0.1143 | 0.1101 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 92,902 | $ 89,383 |
Common equity Tier 1 for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, amount | $ 144,515 | $ 139,040 |
Common equity Tier 1 for capital adequacy purposes with capital conservation buffer, ratio | 7% | 7% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 134,192 | $ 129,109 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Note 10 - COMMITMENTS (Details)
Note 10 - COMMITMENTS (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
COMMITMENTS | |
Contract price | $ 17 |
Construction payment | 1.2 |
Construction remaining future commitment | $ 15.8 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ 25,121 | $ 28,425 | $ 27,157 | $ 29,294 | $ 15,242 | $ 23,624 | $ 80,703 | $ 68,160 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |